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ITEM # 8. <br />t~ver <br />MEMORANDUM <br />TO: Economic Development Authority <br />Mayor & City Council <br />FROM: Catherine Mehelich, Director of Economic Development <br />DATE: January 14, 2008 <br />SUBJECT: Consider Finance Committee Recommendation on Micro Loan <br />Policy Amendment <br />Attachments <br />• City of Elk River Micro Loan Fund Policy (see previous agenda item) <br />• City Council Minutes dated December 17, 2007 (see previous agenda item) <br />• Finance Committee Minutes dated January 8, 2008 (see previous agenda item) <br />Issue <br />Staff has received a request from the banking community about the possibility of amending <br />the micro loan fund policy to consider applications from businesses in the new Jackson <br />Place and Bluffs of Elk River buildings downtown. The anticipated use of the loan funds <br />would be toward leasehold improvements and furniture, fixtures and equipment. Currently <br />the only program available to businesses in the downtown requires 20% rehabilitation or <br />restoration of the building's exterior. <br />Following a brief summary of the request to the City Council at its December 17, 2007 <br />meeting, the Council referred the issue to the EDA Finance Committee and EDA fox review <br />and recommendation. <br />EDA Input Requested <br />The EDA is asked to provide additional review and make recommendation for consideration <br />by the City Council. <br />The attached Finance Committee minutes indicate the following comments and concerns <br />discussed: <br />• Discussion on whether or not additional financial assistance/subsidy is warranted <br />for the downtown area, commercial vacancies are a result of market conditions <br />overall, whether the micro loan fund should have geographic limitations to <br />