Agenda - Economic Development Authority - 03/10/2011

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Economic Development Authority (EDA) Date: 03/10/2011 By: Aaron Backman Administrative Services Title: Status of Falls Cafe/Wells Catering Background: The Falls Cafe/Wells Catering Project was presented to the City Council at the 2/15/11 Work Session with Mr. Wells and Mr. Kuker present. The project has evolved from a coffee shop /deli to a full- service restaurant. At the special meeting of the EDA on 2/24/11 the members approved the staff recommendation for the $68,000 RLF loan to Wells Catering with a term of 10 years at one percent over prime, and secured by a first position on $165,000 of equipment. The members approved staffs recommendation for a zero interest, forgivable loan, with a term for seven years, for SAC and WAC fees totaling $55,000 to Ramsey Retail Rental, the developer, to offset fees associated with the new restaurant. The EDA also had discussion regarding a potential restaurant that may be located in The COR that would be located in the Flaherty & Collins project. There were views expressed as to whether The COR could support two restaurants in close proximity. Some comments were that if the restaurants had similar formats that they would potentially undercut each other. Other comments were that given The COR projects coming on line that there was sufficient market demand to support two restaurants in this area. Following discussion the members did approve a motion that the EDA suggests that the HRA considering releasing Flaherty & Collins from their obligation to add a restaurant/retail site under the current development agreement that was approved in December 2010. The Economic Dev. /Marketing Manager will be presenting The Falls Cafe/Wells Catering Project for final approval at the regular session of the Ramsey City Council on 3/8/11. He will provide a recap of that meeting to the EDA. Observations: Funding Source: EDA funding will be utilized for this project. Staff Recommendation: Project update only. EDA Action: No further action is required at this time. Information Form Review Inbox Reviewed By Date Aaron Backman (Originator) Aaron Backman 03/06/2011 06:50 PM Form Started By: Aaron Backman Started On: 03/06/2011 05:14 PM Final Approval Date: 03/06/2011 Item #: 4. 2.