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6.0 EDSR 07-13-2009REQUEST FOR ACTION To Item Number Economic Develo ment Authori 6. Agenda Section Meeting Date Prepared by May 11, 2009 Annie Deckert, Economic Develo ment Assistant Item Description Reviewed by Consider Amendment to Micro Loan Terms -The Waterfalls Lori ohnson, Ci Administrator Salon Reviewed by Action Requested The EDA is asked to consider the EDA Finance Committee's recommendation for approval of a 1-year extension on the Waterfalls Salon micro loan at a 3.0% interest rate with the following conditions: • a reduction of the current monthly payment of $1,074.53 to $537.27 with a balloon payment due on Apri18, 2011 Background/Discussion The attached staff report to the EDA Finance Committee and July 8, 2009 committee meeting minutes provide background regarding the amendment to Micro Loan terms request. In addition, EDA Commissioners Motin and Tveite both serve on the EDA Finance Committee and may provide additional comments regarding the committee's review and recommendation. Financial Impact The EDA Micro Loan Fund has a current cash balance of approximately $813,378. Attachments • EDA Finance Committee Meeting Minutes dated July 8, 2009 (see prior item attachment) • EDA Micro Loan Fund Policy and Guidelines (see prior item attachment) • Staff report to EDA Finance Committee re: the Waterfalls Salon. Micro Loan Extension Request, July 8, 2009 Action Motion by Second by Vote Follow Up ver MEMORANDUM TO: EDA Finance Committee FROM: Annie Deckert, Economic Development Assistant DATE: July 8, 2009 SUBJECT: Consider Loan Extension Request -The Waterfall Salon Attachments • Letter from Michael Scheevel, owner of the Waterfall Salon • January 14, 2008 EDA Minutes- approval of Waterfall Micro Loan • Waterfall Salon's current financial statements (provided at meeting) • Waterfall Salon -Current Amortization Schedule • Waterfall Salon -Proposed Extended Amortization Schedule as requested by applicant (monthly payment reduced by 50%, one year extension) • Micro Loan Policy & Guidelines Requested Action The Finance Committee is asked to review and provide a recommendation to the EDA regarding the Micro Loan extension request from the Waterfall Salon for one additional year extension and a 50% reduction in monthly payment from the current $1,074.53 a month to $537.27 a month at the current 3% interest rate. Issue Mr. Michael Scheevel, owner of the Waterfall Salon., has submitted a request and application for the EDA's consideration of a one year extension on its micro loan at the current 3% interest rate and a 50% reduction in monthly payment from the current $1,074.53 a month to $537.27 a month. The last complete monthly payment was received on January 21, 2009. Staff received a check of $600.00 from Mr. Scheevel on June 9, 2009, which was first applied to cover the late fees, then to the principal and interest. The current principal balance due on the loan is $13,727.45. Mr. Scheevel has been invited to attend the Finance Committee meeting to provide an update on the current status and future plans of the company. Following any questions and answers with the applicant, he will be excused during the Finance Committee's discussion and recommendation. The Finance Committee's recommendation will be considered for final action by the EDA at its July 13, 2009 regular meeting. Consider Micro Loan Extension Request -The Waterfall Salon July 8, 2009 EDA Finance Committee Page 2 of 2 Background At its January 14, 2008 meeting the EDA approved a Downtown Business Revitalization Program Micro Loan in the amount of $25,000 for Waterfall Salon and Day Spa (see attached minutes. The loan is structured as a direct loan from the EDA to Waterfall Salon and Day Spa. The original terms of the loan were as follows: Term: 2 years Rate: 3% fixed Structure: Direct Loan with the Elk River Economic Development Authority Security: Personal guaranty Issues for Discussion Monthly repayment on the loan has been slow and March, April, May, June and a portion of February's payments are outstanding The Micro Loan policy states that in the event that the Borrower is unable to obtain conventional financing to replace the Micro Loan at the end of five years, the loan may be extended up to two additional years at a market rate of interest; the applicant is asking for a one year extension at a 3% interest rate and a 50% reduction in monthly payment Attached is a copy of the loan payment history. In addition, the Committee should take into consideration during its discussion the company's current financial condition, ability to repay the loan, and the EDA's security position. ~~~ ~- ~ver MEMORANDUM TO: Economic Development Authority FROM: Annie Deckert, Economic Development Assistant DATE: 13 July 2009 SUBJECT: MetroMSP.org wins Minnesota Economic Development Marketing Award The Economic Development Association of MN (EDAM) presented its 2009 economic development marketing award to MetroMSP this year during its annual summer conference. MetroMSP was one of the eight organizations to be honored by EDAM (Sportech & the Elk River EDA were also honored for outstanding business retention and expansion project) and the only project to be recognized for outstanding marketing. MetroMSP is a site selector website the City uses to make its sites available online. This site allows users to search for available properties based on their own customized criteria. Users can locate property in Elk River to meet their needs as well as create compelling proposals which include demographic and business data to provide to potential prospects. By May of 2009, the site was averaging more than 600 hits a day. Page 1 of 3 Deckert, Annie From: Diana Johnson [ywilliams@minneapolischamber.ccsend.com] on behalf of Diana Johnson [djohnson@minneapolischamber.org] Sent: Monday, June 29, 2009 3:17 PM To: Deckert, Annie Subject: MetroMSP.org Wins Minnesota Economic Development Marketing Award MinneapolisjSt~ir~t F'<t~l Rf~gior~ FOR IMMEDIATE RELEASE June 17, 2009 ~~~~ ~;,~;:. , r~3~ ~,,~~:r,:~ ~s~.~_~ MetroMSP.org Wins Minnesota Economic Development Marketing Award Saint Paul, Minn. -The Economic Development Association of Minnesota presented its 2009 economic development marketing award to MetroMSP.org during the association's annual summer conference in Brainerd. MetroMSP.org was one of eight organizations to be honored by EDAM and the only project to be recognized for outstanding marketing. MetroMSP.org is a powerful site selection tool developed in 2008 by apublic-private partnership convened by the Minneapolis Regional Chamber of Commerce. More than a dozen of its partners joined the MetroMSP project team on stage to receive the coveted EDAM award -- a testament to the collaborative nature of the project. "MetroMSP.org won top marketing honors because the website is innovative, high-impact and widely used. It sets the new standard for site selection tools in Minnesota," said Eric Ewald, executive director of EDAM. Outperforming Its Peers "Web site traffic after the first year in operation exceeded our expectations," said Todd Klingel, president and CEO of the Minneapolis Regional Chamber. "By May 2009, it was averaging 600 pageviews per day and 1,000 customized reports each month. That's 20%-to-425% more pageviews than comparable websites in our four peer markets," he added. Beyond its impressive user stats, MetroMSP.org earned points with the EDAM awards committee for several unique features: • Of the nearly 200 websites in the U.S. using the GIS-based platform recommended by the International Economic Development Council, only MetroMSP.org provides a platform for cities to post information regarding redevelopment areas and publicly owned properties. • Property data is provided free and updated weekly, thanks to a unique partnership with the Minnesota Commercial Association of Realtors (MNCAR). 6/29/2009 Page 2 of 3 • MetroMSP.org recently converted from aerial photography to the Google mapping platform, making it possible for users to "tour the neighborhood" without leaving their offices. • Transit station areas were integrated into the redevelopment section of the website in May 2009. This enables developers, site locators and planners to review plans and easily access the website's powertul mapping and demographic analysis tools. • MetroMSP is now part of ZoomProspector - a national site selection portal that enables prospects to identify and link to communities across the nation that meet their site location criteria. A Model of Regional Collaboration The project is funded by counties in the metropolitan area; the cities of Minneapolis, Saint Paul and Bloomington; the Minnesota Department of Employment and Economic Development (DEED); and more than a dozen private partners committed to making the Minneapolis/Saint Paul region more competitive. Marketing support is provided by the Minnesota Real Estate Journal. "MetroMSP represents the first time the 11 counties have come together on a project of this magnitude," says Bruce Halbasch, founding chair of the MetroMSP.org partnership and a former EDAM president. "Site selection moved to the web several years ago, so it's critical for our region to have a web presence that meets the site selection needs of local businesses seeking to expand, of entrepreneurs, and of companies considering the region." About MetroMSP.org MetroMSP.org is the first free site selection and economic development website with interactive mapping covering the entire 11-county Minneapolis-Saint Paul region. It has two sides. The narrative side makes a compelling case for companies to locate or expand in the Metro MSP region. The site-selection side helps business prospects quickly locate and evaluate available properties. It gives site selectors, business owners and economic development professionals instant access to essential information on more than 5,000 commercial and industrial sites in the region. The tool is built around interactive GIS maps which display available sites and their proximity to transportation routes, other businesses, and important landmarks. In addition to listings, MetroMSP.org generates site-specific reports on demographics, consumer spending, workforce, and potential business competitors or allies. The data can be easily converted into comparative reports that expedite the site selection process. About EDAM Headquartered in Saint Paul, the Economic Development Association of Minnesota serves economic development professionals throughout Minnesota. It has more than 500 members who represent private enterprise, local and regional development agencies, chambers of commerce, and utilities. The association annually recognizes individuals or organizations for outstanding economic development achievement at its summer conference. Forward email ~SafeUnsubscribe~ Email Marketing by This email was sent to adeckert@ci.elk-river.mn.us by •~ _..! djohnson@minneapolischamber.org. ~" , -~-•! Update. Profile/Email Address I Instant removal with SafeUnsubscribe~`" I Privacy Policy. CC~ilsrantCOn2tKt~ 6/29/2009 Page 3 of 3 Minneapolis Regional Chamber of Commerce ~ 81 S 9th Street ~ Suite 200 ~ Minneapolis ~ MN ~ 55402 6/29/2009