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B. Consideration of Draft Request for Proposal for Professional Services <br /> • Coordinator Bennett noted that on September 9th, the EDA approved Resolution no. 96- <br /> EDA51 Authorizing the Economic Development Commission to work on a request for proposal <br /> and solicit bids for the development of a vision and schematic plan for highway 10 <br /> redevelopment area, section 9. <br /> With the ideas that were generated by the EDC at the August meeting, Coordinator Bennett <br /> presented a draft RFP and a list of consultants that are located in the Twin Cities. Coordinator <br /> Bennett noted that if approved she would mail the RFP's to consultants the first week in <br /> October with a submission deadline of October 16. <br /> Commissioners made minor revisions to the background section and scope of the study. <br /> Motion/Second: Carlson/Goff moved to approve the request for proposal as amended <br /> Motion Carried 5 ayes 0 nays <br /> C. Consideration of Loan Request from Addie Lane Floral <br /> Commissioner Carlson provided an overview of a request from Carol and Dean Johnson DBA <br /> Addie Lane Floral for a loan in the total amount of$33,145. The loan request is to expand the <br /> current floral business, located in Silver View Plaza, to include the serving of Espresso, Brewed <br /> Coffee and Danish. The loan would be used to purchase espresso equipment, espresso cart, <br /> plumbing, electrical and remodeling work,wire racks and beginning inventory. Mounds View's <br /> • participation would include $16,750 at 2%interest for 8 years. The basic strategy for the loan <br /> includes goals of increasing floral sales and profit margin and increase the customer base by <br /> offering another product and service not currently offered in the immediate area. Commissioner <br /> Carlson reviewed the company and personal financial statements and noted a bank risk rating <br /> of 4 "watch" due to several factors such as the tight margin to repay debt with heavy reliance on <br /> projections rather than strong collateral. <br /> The commission discussed the business loan program's purpose for interior and exterior <br /> improvement and were concerned that this request did not technically fit into the current <br /> criteria. In addition, the commission was concerned that the request was for 100%financing <br /> with no existing business or personal equity and were unsure regarding the market to support <br /> the projections which has a direct impact on the repayment ability of the loan. The current <br /> collateral would be enough to repay bank loan but due to the City's second position there would <br /> be limited to no funds to pay back the City's half. The commission noted that Addie Lane <br /> Floral and the owners Carol and Dean Johnson have been a great asset to the community both <br /> in their floral service business and volunteer activities with Festival in the Park, Marketing Task <br /> Force and Chamber. <br /> The Commission would like to assist the company but it may not be in the best interest of the <br /> City at this time. One suggestion included reconsidering the loan package if the Johnson's could <br /> identify an additional guarantor who could inject and pledge at least$10,000 of additional <br /> collateral. <br /> Motion/Second: Nelson/Goff moved to deny the current request for $16,500 City loan based <br /> upon historical repayment ability and lack of strong secondary repayment source. The <br /> • <br /> 2 <br />