8. EDSR 06-17-2013 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Economic Development Authority 8, AGENDA SECTION MEETING DATE PREPARED BY June 17, 2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Consider Downtown Energy Efficiency Microloan Application Jeremy Barnhart, Deputy Director, for Ralphie's Victory Lane Community Operations and Development REVIEWED BY ACTION REQUESTED Consider and approve Downtown Revitalization Microloan Application for Ralphie's Victory Lane BACKGROUND/DISCUSSION The attached staff report to the EDA Finance Committee dated June 6, 2013, and committee meeting minutes provide background regarding the Micro Loan request. The Energy Efficiency Improvements Program is available to property owners of commercial or industrial buildings in Elk River to provide capital to businesses to invest in energy efficiency and improve their profitability through reduced energy costs and enhance their ability to retain and create jobs. Ralphie's Victory Lane will occupy the 3,000 square foot gas station at the corner of Joplin and Highway 10. They plan to use the $74,999 microloan to install high efficiency lighting and signs. Other projects include improvement of the parking lot. 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 Energy Efficiency Microloan for Ralphie's Victory Lane with the following terms and conditions: • $74,999 at 3%interest, 10 year term, 10 year amortization • EDA to secure personal guarantee • EDA to obtain subordinate position mortgage on 13374 U.S. Highway 10, subordinate position on all inventory and equipment. FINANCIAL IMPACT The Micro Loan Fund has a current cash balance of$1,221,360 with$252,806 in notes receivable. P O I E R E I .71 NATURE