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Member Kanaventi stated that if there is a market to support a large number of restaurants, he <br />asked why a recent restaurant would then have closed within The COR. <br />Yuan replied that after looking at reviews and photographs they believe that perhaps the reason <br />was due to operational errors. <br />Member Kanaventi asked the percentage of existing restaurants within the number that could be <br />supported in the market. <br />Yuan replied that it is difficult to determine that ratio. <br />Community Development Director Gladhill explained that this information provides the City <br />with a baseline of information and market leakage. He stated that this will allow the City to <br />avoid duplication and attract the right users. <br />4.04: Restaurant Subsidy Program <br />Community Development Director Gladhill presented the staff report. <br />Motion by Chairperson Steffen, seconded by Member Riley, to recommend to City Council to <br />approve the policies/programs related to recruiting new restaurants. <br />Further discussion: Member Riley stated that this is a huge goal and priority of the residents. He <br />stated that these tools would not apply in full to every user but believed that it would be <br />beneficial to give the City the highest number of tools possible. Member Harden stated that he <br />did not see anything listed in the policies regarding number of employees, wage of employees, or <br />financial background data. He believed that staff should due some due diligence before <br />providing funds. He noted that the term loan is used but was unsure if perhaps grant or award <br />should be used in place of loan. He stated that he would want clarity before he could support the <br />actions. Community Development Director Gladhill stated that perhaps some of the language is <br />unclear without the actual application. He stated that he could add the language requiring a <br />proforma. City Administrator Ulrich stated that language could be included stating that the <br />applicant must display that they have secured financing. Member Riley referenced the water <br />accessibility charge, which would be meant to ensure the business could be viable but noted that <br />is tied to the real estate and an entity that would continue but would also help the user. <br />Community Development Director Gladhill noted that underwriting costs are typically $7,500, <br />and therefore that would be an expense that may not be worth the return on the investment for <br />this program. He stated that at the end of the day these are tied to the property, while restaurant <br />users may come and go. Member Hardin disagreed. He stated that the City finance depailinent <br />has the capability to do the review. Chairperson Steffen stated that perhaps some of the financial <br />information Member Hardin is looking for in included in the application. Member Hardin stated <br />that he does not see any requirement for financial background information on the application. <br />Community Development Director Gladhill noted that the policy could be revised to include the <br />financial background information. He explained that the water connection program was used in <br />the past and modeled after that previous policy. He noted that another policy was modeled after <br />Economic Development Authority/June 14, 2018 <br />Page 5 of 10 <br />