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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />Request for Action <br /> <br /> <br />To <br />Joint Finance Committee <br />Item Number <br />4.1 <br />Agenda Section <br />General <br />Meeting Date <br />July 31, 2018 <br />Prepared by <br />Amanda Othoudt, EDD <br />Item Description <br />Review Energy Efficiency Microloan Application <br />for Ralphie’s Minnoco <br />Reviewed by <br />Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Consider and provide a recommendation regarding an Energy Efficiency Microloan Application for <br />Ralphie’s Minnoco. <br /> <br />The Finance Committee may recommend approval, approval with conditions, or denial of the request. <br /> <br />Background/Discussion <br />Ralphie’s Minnoco is a self-service gas station operating in a 3,000 square foot facility at 13374 U.S. <br />Highway 10. The gas station emphasizes food service, fuel, inside sales, U-Haul rental, and propane <br />sales. Owner Brian Brehmer plans to use the loan to finance energy efficiency lighting to the property and <br />the space leased to Mama D's Deli. <br /> <br />Mr. Brehmer has extensive experience in managing gas stations and has owned Ralphie's since July 1, <br />2013. He previously managed the Otsego F&F Food Mart for 19 years. He also worked as the Retail <br />Operations Manager for Adium Oil, an independent oil company operating six convenience stores. <br /> <br />Mr. Brehmer is requesting a $19,175 Energy Efficiency Microloan to defray the cost of new LED canopy <br />lights and improve perception of the gas station. He indicated a gas station image is a large determinant of <br />its success and improving the lighting and outward appearance will increase business. <br /> <br />Tom Sagstetter, ERMU Conservation and Key Accounts Manager, indicated they have exhausted all of <br />their 2018 rebate dollars. As such, this request can only be structured as a direct loan from the city. <br /> <br />Ralphie’s received a $74,999 Energy Efficiency Microloan in 2013. They are current on their payments <br />and are scheduled to pay off the remaining balance of $41,104.35 on September 1, 2023. <br /> <br />The EDA attorney stated fund disbursement for new expenditures should be structured as a new loan <br />rather than a modification of the first loan because it is a new project. If approved, the EDA could <br />subsequently consolidate the loans into one payment. The borrower would make one payment and <br />comply with one set of loan terms and documents. <br /> <br />In addition to the financial criteria that must be considered, the Finance Committee must also consider to <br />what degree the applicant satisfies the criteria set forth in the Microloan Fund policies outlined below: