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during 2009 -2010 during the economic downturn. He stated some of the drawbacks were that the <br />market for hospitality has been weak and the restaurant portion will be considered a startup <br />business. Wells Catering/Falls Cafe is proceeding in a path that is reversed from the usual, being a <br />catering business and then starting 'a full service restaurant. Mr. Mulrooney stated this new COR <br />location will improve his competiveness as a caterer and the VA and Allina Clinics will bring <br />additional customers to the area. <br />Member Skaff stated he uses Wells Catering weekly, it is top notch in service and food quality and <br />a great asset to the City of Ramsey. <br />Member McGlone updated the members on the Flaherty and Collins project before the HRA that <br />also includes a restaurant/retail portion to the plan. <br />Discussion ensued as to whether the COR could support two restaurants and how the HRA project <br />and city could be affected by the Wells Catering assistance. <br />Motion by Member LeTourneau, seconded by Member Skaff, that the EDA approve a $68,000 <br />Revolving Loan Fund (RLF) loan with a term of 10 years at one percent over prime at time of <br />transaction to Wells Catering for the Falls Cafe project, and secured by a first position on $165,000 <br />of equipment, and approve zero percent interest, forgivable loans totaling $55,000 to Ramsey Retail <br />Rental to offset SAC/WAC fees associated with a new full- service restaurant at The Ramsey Office <br />Plaza building. <br />Motion by Member McGlone to amend the motion to add that the EDA recommends the HRA <br />consider releasing Flaherty and Collins from their obligation to add a restaurant/retail site under the <br />current agreement. <br />Further Discussion <br />Members discussed whether the two projects were similar. <br />Chairperson Riley stated this deal has been negotiated, EDA has the terms in front of them, and the <br />EDA does not have enough information regarding the HRA project. <br />Member Wise asked what the EDA standards were for granting loans. <br />Chairperson Riley stated there is a list of criteria and Consultant Mulrooney is responsible for <br />seeing that the criteria are met. <br />Consultant Mulrooney explained the guidelines and how the RLF fund was started. <br />Commissioner LeTourneau did not accept the amendment to his motion. Original motion stands. <br />Motion carried. Voting Yes: Chairperson Riley, Members LeTourneau, Skaff, Williams, and Wise. <br />Voting No: Member McGlone. Absent: Member Steffen. <br />Special Economic Development Authority/February 24, 2011 <br />Page 2 of 3 <br />