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Mounds View EDA May 11, 2009 Regular Meeting Page 4 B. Business Improvement Partnership Loan Program Inquiry. Economic Development Coordinator Steinmetz advised staff received an inquiry about the City’s Business Improvement Partnership Loan Program, which is designed to assist existing businesses of two years to make improvements. The inquiry is from a new business so staff advised them that they do not meet the Program requirements of two years. The new business asked if the EDA would waive that criteria since Mounds View does not currently have a dental office. The dental office has a purchase agreement in the Mounds View Center Suites for about 1,500 square feet that needs a significant investment to build out the space and buy equipment. The dental office would provide three initial full-time jobs and several more over the next three to five years. The space would be purchased for $183,000 and the buildout would cost $120,000 plus equipment purchases. Commissioner Mueller asked why the loan criteria is for a two-year business. Executive Director Ericson explained it was the original intent of the loan Program to provide incentive for existing businesses to renovate and improve it facilities. Since the City created the program 15-20 years ago and since it has experienced very little usage, the EDA could ask if the purpose of the Program should be reconsidered since Mounds View is now a fully developed city. Vice President Stigney stated the request is from a new business and if they cannot afford to buy the space, it could be leased. He felt that part of being a dentist is the buildout and purchase of equipment and the City’s Program should stay as it is designed, to improve upon existing properties. Vice President Stigney cautioned about setting a precedent and stated if the Program is not being used, maybe it should be advertised more. Commissioner Hull stated it is time to “think outside the box” and he would consider this request. Economic Development Specialist Steinmetz stated the Program provides a loan up to $25,000 and the EDA may want to be in first position on the loan, or require a security. Commissioner Gunn noted this is an improvement to an existing building/business and she thinks the City should try to attract businesses. Commissioner Gunn noted the City has been trying to get dental and medical practices in Mounds View and she would consider the request. Commissioner Mueller stated that portions of the building are vacant and a dental office would be a good fit. However, she understands Vice President Stigney’s word of caution that it could open the Program to other businesses. She stated she would like additional information about the applicant and whether lease-to-buy is an option if they do not have financing to purchase the space.