Minutes - Economic Development Authority - 03/09/2017

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and hiring and creates tax base. She felt trends would change drastically in the next fifteen years. Chairperson Steffen asked, besides financing, what are businesses looking for. Ms. DuChene stated existing businesses are struggling with cash flow. Because of some of the changes she is witnessing, businesses are not reacting quickly enough on how to market differently, or how to find different customers; they are struggling. Some of them have gone into business without putting together a good plan. She stated she has sent some businesses back to the drawing board, telling them they need some financial projections. She stated the businesses they have made loans to have a well thought-out plan; are second stage businesses that are going to grow. They know what they are doing and are expanding and they need financing for that. She stated she brainstorms with people to find out what they need to do. She noted she does get a lot of calls from Ramsey and encourages the businesses to advertise in the newsletter. 4.03: EDA RLF Request, American Print& Digital Economic Dev. Mgr/Assistant City Administrator Brama stated this case was reviewed by the EDA in January and February. This loan request was approved by the EDA and Council in February, contingent upon staff obtaining sufficient collateral. The purpose of this case is to update the collateral source. American Print & Digital is suggesting the City take a first lien on the existing equipment listed in the case, rather than a second mortgage on their personal residence. Staff has verified sufficient value exists in the equipment list to collateralize the EDA loan. With this in mind, staff believes this change is administrative in nature, and still meets the intent of Ramsey's policies and prudent lending standards. Staff recommends the EDA re- approve this loan with the updated collateral requirement. Member Hardin recused himself from discussion and voting due to conflict of interest. Motion by Member Burandt, seconded by Member Brunt, to recommend the City Council approve the attached draft loan agreement with American Print & Digital and approve an EDA RLF loan in an amount of up to $72,500 (not to exceed 5% of the project cost), subject to: • The borrower providing a first lien to the City on the "Equipment List" • The borrower receiving approval of the project loan by the Bank of Elk River and the SBA • Final review and approval of the loan agreement by the City Attorney and the CMDC. Motion carried. Voting Yes: Chairperson Steffen, Members Burandt, Brunt, Riley, Skaff, and Williams. Voting No: None. Abstain: Hardin. Absent: Skaff. 4.04: Arterial Infrastructure Discussion for Bunker/Puma & Capstone Homes Economic Dev. Mgr/Assistant City Administrator Brama stated this case is being reviewed by the EDA because the project is proposed to utilize two economic development funding sources. Since the proposed arterial infrastructure will serve the City's future business park, potential Economic Development Authority/March 9,2017 Page 4 of 11