Staff recommends Council approve a loan for $250,000 for The Burger Dive from the Downtown Revolving Loan fund.

The Burger Dive is seeking to expand their current business downtown through the purchase and remodel of a building located on N.28th and Minnesota Ave. The owners are planning to grow the business with a larger space to hold more customers, better parking, longer hours and added offerings of the cabaret license for local beer and wine. The owners are currently seeking a commercial bank loan and an SBA loan for the purchase of the building, as well as TIF grants and Historic Tax Credits. They will also be putting in personal equity as stipulated by the rules of the Downtown Revolving loan committee. The City would be taking a 3rd position on the building and a 2nd position on the equipment, and requiring the owners to sign a personal guarantee.

City Council may:

• Approve; or,
• Not Approve the loan

The Downtown Revolving Loan fund currently has a balance of cash of over $850,000.  A couple of previous loans have paid off in full leaving the fund with more cash than anticipated. The term of the loan is 10 years, with a variable rate adjusted annually in October. The current interest rate is 2.25%. If approved, this loan will assist in over $2.0M of investment on Minnesota Avenue.