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Home My WebLink About[06d] RLF Request, Tanya Finken DATE: April 9, 2015 MEMO TO: Economic Development Authority Administrator Judy Weyrens FROM: Cynthia Smith-Strack Municipal Development Group Mayor RE: RLF Request: Tanya Finken Rick Schultz Background: Councilors In 2002 the EDA/City established a Revolving Loan Fund(RLF)after a grant from the Minnesota Matt Killam Investment Fund was secured in conjunction with the construction of the Fabral (formerly Bob Loso VicWest)facility.The RLF has an unaudited balance as of April 1,2015 of approximately$42,000. Renee Symanietz Dale Wick The EDA has received an application for the RLF Program from Tanya Finken who recently purchased the property at 14 College Avenue North, Suite 2. Following receipt of the loan EDA application and as set forth in the EDA's RLF policy, a loan review subcommittee met to review Doug Danielson the application. Larry Hosch Gary Osberg The request is for a principal of$30,000 at a rate of three(3)percent for five(5)years. Proceeds Rick Schultz will be used to enhance remodel the building at 14 College Avenue North. The property will be Dale Wick the site of "Sliced, on college ave". Sliced will be a new business venture by Finken who has successfully operated Kay's Kitchen for the past seven years. In addition Finken operates a licensed catering business locally. Sliced will serve pizza and deli style American contemporary food. Sliced will offer a menu of eat in/take-out food, beverages, delivery, and catering at an affordable cost. Food items will include original pizzas, burgers, wings, and sandwiches. The project includes a 'late night' pizza by the slice service window which will operate Thursday, Friday, and Saturday from 9 p.m. to 1 a.m. Catering facilities will also be located in the building. Improvements proposed are estimated to cost $60,000 ($40,000 property and $20,000 equipment)and include: • Enlarging front window on College Avenue to store-front size. • Addition of one window on the south side of the building(adjacent to Bello Cucina patio). • Painting of brick façade. • New signage. • Installation of a take-out window. • Interior painting. • Interior flooring. • Installation of new equipment. The project will create a minimum of two additional jobs. Proposed security is a mortgage interest in real property in Waite Park. The Applicant has submitted, and the loan review committee has reviewed the following: • Application S5- • Business plan for new business • Personal financial statements • A letter of support following review by the Primary Lender. • Proof of real estate taxes paid. • Proof of utility bills paid. • Building/project plans. • Quotes from contractors/vendors are pending. The loan review committee notes the balance of the RLF is not sufficient to cover the requested loan amount. The loan review committee recommends the EDA consider approving a loan up to $15,000 at a rate of three percent with a term of five years. Please find a copy of the RLF application attached for your information. Tanya Finken will be attending the EDA meeting to discuss the loan application as will Robert McCoy project designer. Eligible Loan Activities 1. Loan funds may be used for acquisition of land and/or buildings(s), rehabilitation of building(s), reconstruction, new construction, site improvements, utilities or infrastructure, and purchase of industrial equipment in connection with starting a new business or expanding an existing business. 2. Land and building must be privately owned, taxable property and proposed for commercial and/or industrial activities. 3. If building(s)are being purchased or rehabilitated with funds from the Revolving Loan Fund any/all building code violations must be remedied.The project must comply with the St. Joseph City Code including standards relating to land use. 4. Revolving loan fund assistance can be for no more than one-half of the cost of the project, unless the project is valued at under$50,000 as is the case with this project. Ineligible activities include the operation or expansion of a casino, sports facility when the principal tenant is a professional sports team, housing projects and operating expenses. The proposed project meets the eligibility guidelines. Approval criteria for RLF applications are as follows: 1. A gap in project financing is demonstrated. 2. The business must locate, remodel or expand within the corporate limits of the City of St. Joseph. 3. The project will result in the creation or retention of existing jobs. 4. The project will result in an increase in tax base. 5. The project can demonstrate that the investment of public dollars induces private funds. 6. The project can demonstrate an excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project. 7. The project provides higher wage levels to the community or will add value to current workforce skills; 8. Assistance is necessary to create new or retain existing businesses. 9. Job/wage goals must be consistent with the City of St. Joseph Business Subsidy policy. It is noted the project is exempt from the City of St. Joseph Business Subsidy Policy due to the value of the project being less than the statutory exemption of$150,000. ACTION 5f If the EDA finds the proposed RLF request appropriate, a motion to recommend the Council approve the loan and authorize/direct the preparation of loan documents is in order. 57 APPLICATION FOR REVOLVING LOAN FUND CITY OF ST.JOSEPH,M RIESOTA Applicant: ‘91-07D OYi 1.04 4"dm= j / D/'t A &V4 — city: Si-JOS'f2A Sate: MA/zip Code: t37/ Contact Person(s): l Contact Email iltl ix&Ai eq ij�•i ]] V 50 320 Business P SS7 603a Icon do3 pc u 18'0•WI0 3 Name of Business: SUE EN din (4 Ave - Print s)of Business: 042.Lift2444 -1-ale ad 06 Stabs Fed ID•of S.S.0: All1111111MI Business a a: Proprietorship Partnership Corporation Date of incorporation Type of Business: /r) • iI P2.20. •J C.C . - lc,/(i , Present location: 1 tills 4(� Owned Rented Sq R.of : 2 . Sq. present building: � Proposed Location(if different from above): Owned Rattled Sq.ft.of present building: l TYpe of Proioot Construction/New Business Expanding/Erdsting Business Equipment/Machinery/FottureX . Other: City of St.Joseph—Revolving Loan Fund Program Application Page 1 Des .Project. .hLtio 4,1. 4 bii,14,,,fic4 Lim Os-1 \*)i*, 4.42to - w'►r, ituc one. O►ti -1 souit, . t.t:09 wiA 1 ?cad- Brel- . Apfly ,. . • , ., , ., t cac,iChW , f'ke+' — A. nivjequiptio&ti-- 01_ , . gamenutemkardek: Fiinertclna: Land: $ WW1 IMIDgdiffbilt ems Site k provement: $ Bank $ M &P Machinery/Equip.:$V),Meg—— Other-describa Bldg.: $ City Other(specify): $ TO , '___ 4.4 _,_ TOTAL $ 441111111111110 •60/0V77 Describe of collateral available to loan,includInp market value all Bans: ' ro,U5 Pf-Chie .. m- ax) - 4614414_ 1Ace & .25-S-iii wilf _ *2-SZ) Purpose of loan: • 'in L/ l.t . !C- 04i-silo to - 11'yipalrtatiA 11'ttici ems. ---d oc r.. - l I S P% c etp h 4 •A Ar i s,.tSC• City of St.Joseph—RevoMnp Loan Fund Program Appticalion Pape 2 6G2 Amount requested: $ ), Mu Tones requested: $ Present number of full-time employees: Anticipated jabs coated or retained within Mrelvo(12)months of project completlon: Total*of Annual Anticipated Kring Position Name Jobs Hrs./Job Date ling, etas $ 4 ts--Faitok. La/1/c- ot.Lti ae44crit S 604 (Use additional sheets if necessary) If redevalopmet*estknate market value of the subject percei(s)prior to project and eedmated market value fol owing project compbtlon. EMV Present EMV Post Project Completion: Attach and include the following if requested: ' A. Writsn Business Plan • Description of Business • pwnpp • Date established • Management • Future plans 11 B. Financial statements for the past two(2)years : 7;p n DM'*SO V rat '(b E.00r C. Financial projects for three(3)years V. D. Resume of as principals E. Personal fi nandal statements of proprietor.partners,guarantors tuL wjll ertAial F. Letter of commitment for applicant pledging to complete during the proposed project duration G. Letter of commitment from other sources of financing.stating terms and conditions of their participation in project �dntlt<. xH. Written quotes from contractors and vendors for all cost estimates listed above I. Site plan for new construction City of St.Joseph-Resolving Loan Fund Program Application Page 3 J. Authwizstion for release of information K. Other: L. Other: M. Fee: (1%of amount of loan request) Attach an explanation If any answer to the following Is yes: 1. Have you or�?owner of your company involved In bankruptcy or insolvency Yes No 2. Are you or any officer or owner of your business in any pending lawsuits or Judgments? Yes No 3. Does your business have any subsidiaries or ?(INCLUDE: financial statements with explanations as requested) Yes N 4. Do you buy from.set to.or use the services of b which someone in your company itself has a significant financial i Yes No City of St Joseph—Revolving loan Fund Program Application Page 4 To the best of my knowledge,the Information provided in this application Is bus and Date: / . Date: Date: Date: Date: NOTE !►this&pp leaden Is for leasehold Impmveman tlfe owner(fa)of the budding mast also sign this application. 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