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� I 2 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 EDA Meeting #18 October 9, 1995 Page 2 �� _� ,��,,�� '� � �, ,�� � Tt � i� � �� � E ,. :j �1:� ,�i ,�� _ �i' �'_-_ �-_ A. Consideration of Resolution No. 95-EDA-32 Approvin� a Business Improvement Partnership Loan for Forcia, Inc. Cathy Bennett, Economic Development Coordinator, explained that this item is for a low- interest loan for Forcia, Inc., which is the owner of Mister ponuts on Highway 10. They are interested in providing interior and exterior improvements to their building. They requested the maximum loan amount of $50,000. Mr. Donuts is currently open 24 hours and serves donuts and pastries. Forcia, Inc., is proposing to expand the product line to include soups, subs, sandwiches, bagels, ice cream and cakes and flavored coffees as a direct result of their expansion. The store name will be changed to Donut Connection. Ms. Bennett stated approval of this loan meets the goals of the program, it benefits the entire community of Mounds View and it improves the aesthetics of the commercial sector and it will add jobs and increase the tax base. The Economic Development Commission has reviewed the package in detail and they have made a recommendation to approve the application. Ms. Trude noted that the money to pay these loans will be handled by the bank. The bank will receive the payments and then forward them to the city. Ms. Bennett stated the loan is a matching loan, with $25,000 coming from the City of Mounds View using excess Tax Increment dollars at 2% interest and the other half comes from a conventional bank loan which will be at 11-1/4% interest. This loan is being done with Western Bank. Ms. Bennett stated she believes this is the first loan where one will see significant changes in a property. MOTION/SECOND: Quicic/Trude to approve Resolution No. 95-EDA-32, Approving a Business Improvement Loan for Forcia, Inc. VOTE: 4 ayes 0 nays Motion Carried B Consideration of Resolution No. 95-EDA-33, Approvin� Expenditure for an Appraisal of Vacant Land on Highway 10. Ms. Bennett explained that approval of this resolution allows for the expenditure of tax increment funds for an appraisal of vacant lots on Highway 10. The lots are directly west of 2526 Highway 10, of which the City is nebotiating a purchase agreement and East of Pleasant Wood Apartments. The potential purchase of the property will expand the redevelopment opportunity packaged with the corner lot at 2625 Highway 10 and it will fit within the goals for economic development ;and redevelopment.