09/13/12 - Laserfiche WebLink

Home

Member McGlone requested a friendly amendment to the motion to direct staff to begin marketing the property for sale immediately. Member LeTourneau agreed to the friendly amendment. Member Steffan seconded the friendly amendment. Member Wise expressed concern about putting the property on the market at this time because of the difference in elevations between this property and the adjoining property, which might impact the value of the property. City Administrator Ulrich stated that staff will look into the elevation/final grade issue and indicated the City will want a pad -ready site to sell. Member LeTourneau felt the City should have a solid appraisal before marketing the property. Member Williams stated the road elevations of the interchange may change the visibility but felt there would not be a significant impact on the value of the property as long as there are no drainage issues on the west side of Armstrong. She added this would come out in any offers the City receives on the property. Motion carried. Voting Yes: Chairperson Riley, Members LeTourneau, Steffan, McGlone, Skaff, Williams, and Wise. Voting No: None. Absent: None. 4.03: Revolving Loan Fund (RLF) Application/Proposal Mr. Mulrooney explained he met with a father and his daughter regarding the daughter's new business and her request for a revolving loan fund (RLF). He presented the business plan for a fitness facility in the shopping center at the NE quadrant of Bunker Lake Boulevard and Highway 47. He stated the daughter is a Ramsey resident and her father had a successful wholesale electronics parts business for many years. He added the daughter has years of experience in the fitness industry and this facility would cater to women aged 25 -45. He stated there would be an investment in leasehold improvements and equipment as well as for operating capital and the owners are requesting an RLF in the range of $30,000 - $50,000. He noted this business is considered a service business and the RLF criteria allows for financing of equipment purchases and leasehold improvements. He stated the RLF request is relatively small and the credit worthiness of the individuals alleviates any concerns relative to the collateral issue, noting that personal guarantees would be required of both parties. Member McGlone stated he was concerned about financing this because fitness equipment is valueless and referenced the high failure rate for fitness facilities. Mr. Mulrooney acknowledged the high failure rate for fitness facilities and stated the father would be half owner of the business. He added the RLF requires a 1:1 match of public to private dollars. Economic Development Authority /September 13, 2012 Page 4 of 9