Agenda - Economic Development Authority - 03/13/2025

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Time Frame/Observations/Alternatives: The proposed 453K investment would help bring a 1600 SF with Drive Thru King Baguette concept to Ramsey. The full SAC Charge (Metropolitan Council) is estimated to be $12,425 and the WAC Charge (City of Ramsey) is estimated to be $7,405. These fees total $19,830. King Baguette is requesting a loan of $13,881 (70% of the Total SAC AND WAC Charges) from the Full Service Restaurant Subsidy Program (See attached). As previously mentioned, King Baguette has an executed lease but has not pulled its restaurant build -out permit and paid the SAC and WAC fees at the time this case was written. The project will result in approximately 10+ jobs coming to Ramsey with an average wage of $18/hr. The owner is securing $30,000 in private bank financing, providing an injection of cash and is requesting a city SAC and WAC forgivable loan. If the restaurant qualifies for the SAC and WAC Deferral Program, Staff supports approval of a 70%, 0% interest loan, forgivable loan for both the SAC and WAC Fees in the amount of $13,881; subject to satisfactory underwriting by CMDC. The proposed funding sources for the loan would be the City Water Fund (WAC) and the EDA Fund (SAC). The applicant would also be required to pay $5,949 (30%) for the SAC and WAC charges upfront and closing costs estimated to be around $1000. The financing of this deal would likely include a loan agreement, and a UCC filing against collateral owned by the applicant since King Baguette is not the owner of the real estate. The applicant leases the space and a real estate mortgage would not be obtainable in this circumstance. Staff will work with the applicant to gather necessary financial information necessary to complete underwriting of the loan if the Loan is recommended for approval by the EDA. The Applicant has already provided some financial information/projections needed to complete underwriting but a few more pieces of information are needed. If the EDA supports determines that the project qualifies for the Program, Staff would bring this to the City Council, for consideration. The applicant does not want to move forward with underwriting of the loan if they do not have approvals by the EDA and Council that qualify them for the program. Loan Approval / Qualification Recommendation 1. The EDA recommend to the City Council approval of a $13,881 (70%) SAC and WAC loan to King Baguette. 2. The EDA recommend to the City Council approval of a $ ( %) SAC and WAC loan to King Baguette. 3. Something Else Funding Source: $5,183.50 - City Water Fund $8,697.50 - EDA Fund The unencumbered EDA fund currently has balance of approximately 1.4M Recommendation: Staff recommendation is for the EDA to recommend to the City Council for contingent approval of a $13,881 (70%) SAC and WAC loan to King Baguette; subject to underwriting, project qualification and City Attorney review. Outcome/Action: Motion to recommend to the City Council for contingent approval of a $13,881 (70%) SAC and WAC loan to King Baguette; subject to underwriting, project qualification and City Attorney review. or Something else Attachments