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EDA BUSINESS <br /> <br />Case #1: Sunfish Commons Revolving Loan Application <br /> <br />Bob Carlson, a partner in the Sunfish Commons Partnership, handed out an attachment to their <br />Revolving Loan Fund Application. City Administrator, Jim Norman, reviewed the reason why <br />Sunfish Commons Partnership was requesting a loan for 150,000 dollars. The project <br />encountered additional expenses that were not anticipated during the demolition of the former <br />McKay Auto due to asbestos removal. <br /> <br />The EDA discussed where the funding sources would be drawn from. Administrator Norman <br />stated that the Finance Officer has three sources that can be pulled from. The likely source <br />would be from the Equipment Fund. <br /> <br />Bob Carlson stated that the Sunfish Commons is approximately 75% of occupied with targeted <br />opening dates of early November. <br /> <br />The EDA provided direction to staff to negotiate the dedication of right-of-way to the City for <br />future frontage road as part of the Revolving Loan process. Staff was also provided further <br />direction to negotiate an interest rate of prime plus two percent (2%) and ask that the City receive <br />some form of guarantee or second position. Staff was further directed to request a five-year <br />payment of the note and that a credit analysis be performed by the development consultant. <br /> <br />Motion by: Member Riley, seconded by Member Anderson to recommend approval of the <br />Revolving Loan application to the City Council with the terms outlined in the staff direction. <br /> <br />Motion carried: Voting Yes: Chairperson Wagner, Members Riley, Anderson, Scheiber. Voting <br />No: Member Zimmerman. Absent: Members Blaha and LeTourneau. <br /> <br />Case #2: Darkenwald (western Alpine Drive) Project <br /> <br />The City has received information that there are two potential developers (Minn-Dak and a <br />lumberyard) that would like to utilize property west of Alpine Drive. The City Administrator has <br />made contact with Park RV and has learned that they are a willing seller. Darkenwald has <br />approached the City as a willing seller to help facilitate redevelopment and new development <br />west of Alpine Drive. <br /> <br />The Commission discussed the City's options to get involved to acquire the properties and then <br />sell them to desired developments. Administrator Norman is in the process of obtaining <br />appraisals of the Park RV and Darkenwald property. Results of the appraisals will be brought <br />back to the EDA at the November meeting for review and further recommendation. <br /> <br />Economic Development Authority/ <br />October 8, 2001 <br /> Page 2 of 4 <br /> <br /> <br />