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Member Riley stated that he would be in favor of that use because of the City's desire to have <br /> that use. <br /> Chairperson Steffen asked if staff is suggesting making a change to the underwriting for that <br /> process for start-up restaurants. <br /> Economic Development Mgr./Assistant City Administrator Brama explained that start-up <br /> restaurants often have trouble qualifying for financing because it is a high-risk business. He <br /> stated that in order to be available and aggressive, the City would most likely need to open its <br /> standards a bit. <br /> Member Hardin agreed that restaurants are tough for financing because there is little collateral <br /> and credit can be an issue for a high-risk business. He stated that he would be leery of offering a <br /> discount on sewer and water connection fees for one type of business and not others. <br /> Chairperson Steffen stated that there was an issue with the Lunchbox in the past, as to whether <br /> the developer or user would receive credit for that. <br /> Economic Development Mgr./Assistant City Administrator Brama stated that staff was able to <br /> work out the details with the Lunchbox and Acapulco. <br /> Member Burandt stated that he understands the viewpoint of Member Hardin with "winners and <br /> losers" and the tool not applying equally. He stated that it is a goal of the City to have <br /> restaurants and therefore the City should have strategies to attract that type of business. <br /> Economic Development Mgr./Assistant City Administrator Brama explained that retail and <br /> restaurants do not qualify for TIF use, while industrial uses do qualify for TIF use. <br /> Member Hardin noted that TIF funds are recouped while water fees would not be recouped. <br /> Chairperson Steffen noted that tool five would most likely be a discussion for another day. He <br /> stated that in summary the EDA likes most of the tools and would recommend bringing back the <br /> tools as one policy, or multiple policies for review. <br /> Member Riley stated that the City continues to hear that there are no restaurants and no places to <br /> shop, so therefore this needs to remain a priority and the EDA has a role in this. He believed that <br /> any of these tools would be helpful in attracting restaurants. <br /> Member Kanaventi asked whether the EDA has found why the Lunchbox failed or closed. <br /> Economic Development Mgr./Assistant City Administrator Brama stated that staff received <br /> feedback from the user that it comes down to demographics and the traffic coming into their <br /> business was not sustainable. He stated that towards the end the customer base was getting <br /> stronger, but the business was not willing to continue down the path. He stated that the business <br /> did say the traffic is growing and the new apartment buildings and other new development is <br /> creating more traffic. <br /> Economic Development Authority/May 10,2018 <br /> Page 3 of 5 <br />