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CC Regular Session 4. 5. <br />Meeting Date: 11/13/2012 <br />Submitted For: Patrick Brama By: Kathy Schmitz, Administrative Services <br />Information <br />Title: <br />Consider EDA Revolving Loan Fund (RLF) Application <br />Background: <br />The City of Ramsey has received an EDA Revolving Loan Fund (RLF) application from Koru Fitness, Inc., in the <br />amount of $34,500.00. Said application was approved by the Ramsey EDA at the regular October EDA meeting. <br />Like any EDA loan or subsidy, the City Council must make final approval. <br />Attached to this case is the Koru's business plan, credit review of the applicant, company resume and proposed loan <br />agreement. <br />The City's Economic Development Consultant, Mike Mulrooney, has worked directly with the applicant through <br />this process and will be present to review this case. <br />The purpose of this case is to consider approval of the Revolving Loan Fund (RLF) application from Koru Fitness, <br />Inc. <br />Notification: <br />NA <br />Observations: <br />Koru Fitness, Inc. is a start-up workout facility to be open in the fall of 2012. The primary focus of Koru Fitness, <br />Inc. is to bring " Entertainment" to the Anoka, Ramsey, Andover and surrounding areas by providing world -class <br />fitness classes that are safe, fun and effective. Partnering with Les Mi11sTM International (LMI), Koru Fitness, Inc. <br />will offer six pre choreographed group exercise formats which are marketed to mostly women ages 25-45. <br />Additional information and background on this company is provided in the attached business plan and resume. <br />RLF Program Objective: <br />The objective of the City's RLF program is to fill the financing gap between project costs and private debt <br />financing/private equity by making direct low interest rate loans for certain approved activities to businesses within <br />the Ramsey City limits. Attached to this case is the RLF program policy. This application fits within the RLF <br />guidelines. <br />Recommendation: <br />The City's Economic Development Consultant, Mike Mulrooney, has reviewed the applicant's business plan and <br />financials; and is recommending approval of Koru's loan request. <br />The EDA reviewed this loan application at the October EDA meeting; and passed a motion to recommend approval <br />of Koru's Loan request. <br />Funding Source: <br />EDA Revolving Loan Fund <br />