7.0. EDSR 03-13-1995 - Laserfiche WebLink

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AGENDA ITEM NO. 7 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY S MEMORANDUM TO: Finance Committee FROM: William Rubin, Executive Direct° '1 4 " DATE: March 3, 1995 SUBJECT: Micro Loan Request From T.J. Properties Introduction T.J. Properties. comprised of Mr. Tim Smith and Mr. Jerry Smith, of T.S. Construction and Century 21 White Dove respectively, requests a loan from the EDA Micro Loan Fund in the amount of$48,000. This loan would be used by T.J. Properties as secondary financing for its new office building at 403 Main Street. 411 The EDA Finance Committee should note that a Micro Loan request was not submitted prior to the construction of this project in accordance with policy guidelines. However, the project was expanded to include the second floor of the office building being completely finished as well as tenant improvements to a greater portion of the lower level. These upgrades resulted in an increase in construction costs of approximately $80,000. Additional cost overruns created a total shortfall of approximately $98,000. A second loan from T.J.'s primary lender reduced the shortfall to $48,000. The balance of the shortfall (i.e. $48,000) is being requested from the Micro Loan Fund. Bachround Finance Committee members will recall that the East Main corridor has been an area of recent office redevelopment activity. Numerous single family homes have been demolished or moved to accommodate a variety of projects. Because this area is a high priority for the City, small redevelopment grants have been used to reimburse the redevelopers for extraordinary costs associated with demolition, foundation removal, and fill compaction, etc. i P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment