Agenda - Council - 03/25/2025 - Laserfiche WebLink

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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, paid for a building permit (includes the SAC and WAC fees). Approval of an SAC and WAC Loan would require a reimbursement of $13,881, execution of a 5-year forgivable loan and a UCC filing for equipment onsite. 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. The EDA reviewed this request at the March 13th meeting and made a determination that the restaurant qualifies for the SAC and WAC Deferral Program, Based on this recommendation 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 is required to pay $5,949 (30%) for the SAC and WAC charges, underwriting closing costs estimated to be around $1500. The financing of this deal would 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 contingently approved by the Council. The Applicant has already provided most financial information/projections needed to complete underwriting but a few more pieces of information are needed. Loan Approval / Qualification Recommendation 1. Approval of a $13,881 (70%) SAC and WAC loan to King Baguette; contingent on satisfactory underwriting and city attorney review. (EDA Recommendation) 2• Approval of a $ (_%) SAC and WAC loan to King Baguette; contingent on satisfactory underwriting and city attorney review. 3. Something Else Funding Source: Under the assumption of a 70% SAC and WAC loan of $13,881, the breakdown of funding would be as follows: $5,183.50 - City Water Fund $097.50 - EDA Fund The unencumbered EDA fund currently has balance of approximately 1.4M Recommendation: The EDA met on March 13, 2025 and unanimously recommended to the City Council for contingent approval of a $13,881 (70%) SAC and WAC loan to King Baguette; contingent on satisfactory underwriting and City Attorney review. (Draft Minutes are attached) Outcome/Action: Motion to Adopt Resolution #25-068 Approving Loan Application for Restaurant Subsidy Program: King Baguette Attachments Site Location Map