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<br />requirements the City is subordinate to the SBA, and the terms of the Revolving Loan Fund <br />cannot be accelerated quicker than the SBA loan. <br /> <br />Member Kiefer suggested the requirement be included that the business must remain in Ramsey. <br />Chairperson Riley noted this should be included in every loan transaction. <br /> <br />Economic Development Consultant Mulrooney advised the caveat could be added that in the <br />event the business were to move out of the City of Ramsey the loan would be immediately due <br />and payable. <br /> <br />Member LeTourneau suggested consideration of a requirement of a certain time period for the <br />business to remain in the City. <br /> <br />Chairperson Riley inquired whether the TIF agreement includes a requirement in relation to the <br />business being sold. Economic Development Consultant Mulrooney replied there is a <br />requirement that the business cannot be sold for five years. Economic Development Coordinator <br />Sullivan indicated if there is a transfer of the business it cannot be sold without the City's <br />permission. He advised in this case the City is not in the majority position on the loan. He <br />agrees with the requirement of the loan being paid off prior to the company moving from the <br />City, but does not believe in this case that the business should be required to remain in the City <br />for a certain period of time. <br /> <br />Member Elvig inquired about the effects created when arrangements such as tax abatements <br />come to an end and the businesses are required to carry a full load, which is often more than they <br />can handle. Economic Development Coordinator Sullivan replied in some cities the companies <br />are essentially receiving the site for free; however, that is not the case in Ramsey. These <br />businesses are putting their own money into the projects, and may be stronger companies coming <br />in. Economic Development Consultant Mulrooney advised staff reviews the credit on these <br />companies. In some cases with a business that is close to a start up type situation without a lot of <br />history the risk is greater, but for the most part, the companies they have dealt with in Ramsey <br />have a history. He indicated Economic Development Coordinator Sullivan has been paying <br />close attention to diversification with the businesses he has been recruiting. <br /> <br />Member Kiefer inquired about additional employment that may come from this purchase. <br />Economic Development Coordinator Sullivan replied the job projection includes at least three <br />new positions with this purchase. SBA requirements include at least one job creation for every <br />$50,000 loaned. <br /> <br />Motion by Member Elvig, seconded by Member LeTourneau, to recommend approval for a <br />$25,000 loan from the Revolving Loan Fund to Martin EDM contingent on review of the loan <br />application and financial information, with inclusion of the acceleration clause that in the event <br />the business were to move out of the City of Ramsey the loan would be immediately due and <br />payable. <br /> <br />Motion carried. Voting Yes: Chairperson Riley, Members Elvig, LeTourneau, Kiefer, Steffen, <br />and Strommen. Voting No: None. Absent: Member Schindel. <br /> <br />Economic Development Authority/May 18,2006 <br />Page 5 of 10 <br />