5. EDSR 04-08-2013 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Economic Development Authority 5. AGENDA SECTION MEETING DATE PREPARED BY April 8, 2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Consider Downtown Revitalization Microloan Application for Jeremy Barnhart, Deputy Director, Blue Egg Market Community Operations and Development REVIEWED BY ACTION REQUESTED Consider and approve Downtown Revitalization Microloan Application for Blue Egg Market BACKGROUND/DISCUSSION The attached staff report to the EDA Finance Committee dated March 29,2013, and committee meeting minutes provide background regarding the Micro Loan request. The Downtown Revitalization Microloan program is available to business and property owners in the Downtown District primarily for the rehabilitation and restoration of older buildings as well as new business development. Blue Egg currently occupies a location in downtown, and they are proposing to use the Microloan funds to expand into 707 Main St. where they will offer cakes, fudge, and candy. Blue Egg Market is requesting $74,500 to fund remodeling and equipment. The applicant plans to attend the EDA meeting and respond to any questions about the project. The EDA Finance Committee recommends the EDA approve the Downtown Revitalization Microloan for Blue Egg Market with the following terms and conditions: • $74,500 at 2%interest, 10 year term, 10 year amortization • EDA to secure personal guarantee • EDA to obtain second lien position on 707 N Main and 713 N Main, and first position on all equipment FINANCIAL IMPACT The Micro Loan Fund has a current cash balance of$1,221,360 with$252,806 in notes receivable. The EDA is asked to approve the Downtown Revitalization Micro Loan request for Blue Egg Market with the following terms and conditions: IP1 ■ E1E1 INATUREI