2.3.
CC Work Session
- Meeting Date:
- 11/13/2012
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Title:
Consider EDA Revolving Loan Fund (RLF) Application
Background:
The City of Ramsey has received an EDA Revolving Loan Fund (RLF) application from Koru Fitness, Inc., in the amount of $34,500.00. Said application was approved by the Ramsey EDA at the regular October EDA meeting. Like any EDA loan or subsidy, the City Council must make final approval.
Attached to this case is the Koru's business plan, credit review of the applicant, company resume and proposed loan agreement.
The City's Economic Development Consultant, Mike Mulrooney, has worked directly with the applicant through this process and will be present to review this case.
The purpose of this case is to consider approval of the Revolving Loan Fund (RLF) application from Koru Fitness, Inc.
Attached to this case is the Koru's business plan, credit review of the applicant, company resume and proposed loan agreement.
The City's Economic Development Consultant, Mike Mulrooney, has worked directly with the applicant through this process and will be present to review this case.
The purpose of this case is to consider approval of the Revolving Loan Fund (RLF) application from Koru Fitness, Inc.
Notification:
NA
Observations:
Koru Fitness, Inc. is a start-up workout facility to be open in the fall of 2012. The primary focus of Koru Fitness, Inc. is to bring " Entertainment" to the Anoka, Ramsey, Andover and surrounding areas by providing world-class fitness classes that are safe, fun and effective. Partnering with Les Mills™ International (LMI), Koru Fitness, Inc. will offer six pre choreographed group exercise formats which are marketed to mostly women ages 25-45.
Additional information and background on this company is provided in the attached business plan and resume.
RLF Program Objective:
The objective of the City's RLF program is to fill the financing gap between project costs and private debt financing/private equity by making direct low interest rate loans for certain approved activities to businesses within the Ramsey City limits. Attached to this case is the RLF program policy. This application fits within the RLF guidelines.
Additional information and background on this company is provided in the attached business plan and resume.
RLF Program Objective:
The objective of the City's RLF program is to fill the financing gap between project costs and private debt financing/private equity by making direct low interest rate loans for certain approved activities to businesses within the Ramsey City limits. Attached to this case is the RLF program policy. This application fits within the RLF guidelines.
Recommendation:
The City's Economic Development Consultant, Mike Mulrooney, has reviewed the applicant's business plan and financials; and is recommending approval of Koru's loan request.
The EDA reviewed this loan application at the October EDA meeting; and passed a motion to recommend approval of Koru's Loan request.
The EDA reviewed this loan application at the October EDA meeting; and passed a motion to recommend approval of Koru's Loan request.
Funding Source:
EDA Revolving Loan Fund
Council Action:
Move to approve/deny the Revolving Loan Fund Application submitted by Koru Fitness, Inc. in the amount of $34,500.00.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 11/08/2012 03:41 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 11/07/2012 02:18 PM
- Final Approval Date:
- 11/08/2012