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Mounds View EDA May 11, 2009 Regular Meeting Page 4 129 B. Business Improvement Partnership Loan Program Inquiry. 130 131 Economic Development Specialist Steinmetz advised staff received an inquiry about the City’s 132 Business Improvement Partnership Loan Program, which is designed to assist existing businesses 133 of two years to make improvements. The inquiry is from a new business so staff advised them 134 that they do not meet the Program requirements of two years. The new business asked if the 135 EDA would waive that criteria since Mounds View does not currently have a dental office. The 136 dental office has a purchase agreement in the Mounds View Center Suites for about 1,500 square 137 feet that needs a significant investment to build out the space and buy equipment. The dental 138 office would provide three initial full-time jobs and several more over the next three to five 139 years. The space would be purchased for $183,000 and the buildout would cost $120,000 plus 140 equipment purchases. 141 142 Commissioner Mueller asked why the loan criteria is for a two-year business. Executive Director 143 Ericson explained it was the original intent of the loan program to provide incentive for existing 144 businesses to renovate and improve its facilities. Since the City created the program 15-20 years 145 ago and since it has experienced very little usage, the EDA could ask if the purpose of the 146 program should be reconsidered since Mounds View is now a fully developed city, for the most 147 part. 148 149 Vice President Stigney stated the request is from a new business and if they cannot afford to buy 150 the space perhaps it could be leased. He felt that part of being a dentist is the buildout and 151 purchase of equipment and the City’s Program should stay as it is designed, to improve upon 152 existing properties. Vice President Stigney cautioned about setting a precedent and stated if the 153 Program is not being used, maybe it should be advertised more. 154 155 Commissioner Hull stated it is time to “think outside the box” and he would favorably consider 156 this request. 157 158 Economic Development Specialist Steinmetz stated the Program provides a loan up to $25,000 159 and the EDA may want to be in first position on the loan, or require a security. 160 161 Commissioner Gunn noted this is an improvement to an existing building/business and she 162 thinks the City should try to attract businesses. Commissioner Gunn noted the City has been 163 trying to get dental and medical practices in Mounds View and she would consider the request. 164 165 Commissioner Mueller stated that portions of the building are vacant and a dental office would 166 be a good fit. However, she understands Vice President Stigney’s word of caution that it could 167 open the Program to other businesses. She stated she would like additional information about the 168 applicant and whether lease-to-buy is an option if they do not have financing to purchase the 169 space. 170