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Case #3: NORTHSTAR MARKETPLACE ASSISTANCE PACKAGE 04/08/09 <br />Economic Development Coordinator Sullivan presented Case, # 3. <br />The City was made awaze of a deal attempting to bring a sit down restaurant into Northstaz <br />Market Place. Negotiations have included SAC and WAC charges for restaurant use and how <br />those charges could be addressed. The EDA discussed supporting the assistance package in <br />general terms and authorized city staff to work with Northstar Market Place to complete a <br />Business Subsidy Application. The proposal for the assistance package would include the entire <br />approximated amount of $101,481.00 in SAC and WAC for the retail-restaurant building in that <br />site. The assistance would be financed through the EDA, and internally. The EDA would <br />contribute $28,530 for the SAC charges, and the developer would contribute $28,530. The <br />Developer contribution would be refunded to developer on a prorated basis based on a term of 5- <br />7years without interest. The EDA portion would be finance along with the WAC Charges at the <br />applicable rate. The WAC charges (approximately $44,421) would be financed through the <br />EDA at the interest rate that current EDA funds eam. The loan would be forgivable as long as an <br />approved restaurant tenant site for the majority of each calendar yeaz. If the developer is not <br />successful in bringing a suitable sit-down restaurant there is no deal. <br />Motion by Member Elvig ,and seconded by Member Look, to direct staff to contact Park <br />Midwest or the negotiating agent on behalf of Solomon to negotiate the terms of the SAC & <br />WAC financing based on a approved sit-down restaurant user staying there greater than 6 months <br />per year and to create a findings of facts that state that this is not an ongoing policy but a one- <br />time situation that is intended to spur future growth in Town Center. The financing package <br />would be $72,951 (All WAC and''/z SAC) over a negotiated 5-7 yeaz term at the EDA Interest <br />rate. $28,530 (1/2 SAC) to be reimbursed to the developer if conditions of maintaining an <br />approved restaurant are met. The entire $101,481 is forgivable if a restaurant is in the approved <br />space for the duration of the loan. <br />Motion carried. Voting Yes: Chairperson Riley, Members Elvig, LeTourneau, Look, Skaff and <br />.Steffen Voting No: None Absent: None <br />13' <br />