EDSR MEMORANDUM 10-14-1996 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY • MEMORANDUM TO: Economic Development Authority FROM: Paul T. Steinman, Director of Economic Development DATE: October 7, 1996 SUBJECT: Agenda Memo for October 14, 1996, Meeting 5. Discuss Possible Loan Fund Program for SAC/WAC Charges Staff has been asked about the possibility of financing SAC/WAC charges in specific cases where a redevelopment project is being encouraged. Such may be the case in dealing with a restaurant start up in the former Snyder's Drug building in downtown Elk River. Staff has been dealing with an individual over the past several months who IDis interested in starting a restaurant operation in that building. The business owners indicated that they will be requesting a $50,000 loan from the EDA micro loan fund. The individual has also indicated they will likely be requesting an additional loan to cover the cost of SAC/WAC fees associated with this project in the amount of approximately $18,000. Staff has had initial discussions with City Engineer Terry Maurer and Utilities Manager Bryan Adams regarding these fees. It appeared to be their general consensus that these fees may not be significantly higher than other communities similar in size to Elk River. It is also appropriate to indicate there has not been a SAC/WAC fee increase in the City of Elk River for quite some time. The issue is still relevant however in that a request will likely be made for a loan to cover the cost of these fees. If a request such as this is approved, there will likely be other requests made, therefore, staff would proceed to establish some criteria for this type of funding. Staff foresees the following general criteria being followed: 0 Must be a redevelopment project 0 Must show an extraordinary need for this type of loan financing 13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 •Fax (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment