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Case # f UPDATE ON PENDING REVOLVING LOAN FUND APPLICATIONS FROM WELLS CATERING AND COUNTRY CROSSING MALL By: Heidi A. Nelson, Deputy City Administration/Community Development Director and Mike Mulrooney, Economic Development Consultant Staff has recently been in discussions with representatives of two local businesses, Wells Catering and the County Crossing Mall, regarding their interest in the EDA's Revolving Loan Fund. Below is a summary of the status of each of the projects and the anticipated requests that will be made to the EDA, potentially for the regular meeting in May. Wells Catering Wells Catering is considering relocating their operations to the Ramsey Town Center. The site of the proposed project is an existing building owned and operated by Jim Deal Plans call for the creation of a new deli restaurant and coffee shop. Kitchen equipment will need to be purchased to service the new restaurant. The kitchen will also service an existing event center in the building. An application for financial assistance from the Ramsey Revolving Loan Fund has been submitted to the city for review. The application lacks sufficient information in order to present the request and a recommendation to the EDA for consideration. Staff has had discussions with George Wells regarding the additional information that will be required. Currently, a budget has not been established nor has a sources and uses of funds for the project been provided. Assuming that the borrower provides a complete application, it is likely that the loan request will be considered at the EDA meeting in May. Staff has requested that the borrower provide the requested information before proceeding any further with the application and credit analysis. Country Crossing Mall Improvement Project Staff has received a request for RLF financing from the owner of the Country Crossing Mall located at the intersection of Highway 47 and 167 Ave. The mall owner plans to use the loan proceeds to sealcoat the parking lot, make building facade improvements and hopefully construct off site signage jointly with a neighboring property that will provide exposure for tenants to Highway 47. Inadequate information was supplied with the application to complete a credit analysis of the proposed loan request. Furthermore, the applicant has not identified a private sector match of funds for the propose project. More importantly, the EDA needs to discuss the issue of project eligibility for the Ramsey Revolving Loan Fund as well as dedicating RLF funds to improve the existing structures in this commercial node. A copy of the current RLF guidelines and application has been provided for your review. If the EDA determines that the project is eligible, staff will continue to work with the owner's representative to assemble the necessary information for a complete application. Staff Recommendation: Staff recommends that the EDA discuss both of these pending RLF requests and provide direction to staff regarding the EDA's interest in providing RLF funding for these projects. EDA Action: Provide feedback and direction to staff regarding the pending RLF applications from Wells Catering and Country Crossings Mall. EDA: 04082010 Attachments: Revolving Loan Fund Guidelines Revolving Loan Fund Application Reviewed By: City Administra