Economic Development Authority Meeting Date: June 29, 2026
To: Members of the Economic Development Authority
From: Emery John, Program Associate
Title
Consider Resolution Approving Revolving Loan in the Amount of $150,000 to Lux Med Spa L.L.C. for Renovation, Equipment, and Establishment of 528 Division St.
Body
Action Requested:
Staff and the EDA Loan Committee recommend a motion to approve the Resolution Approving Revolving Loan in the Amount of $150,000 to Lux Med Spa L.L.C. for Renovation, Equipment, and Establishment of 528 Division St.EDA Resolution.
Summary Report:
Andrea Berube on behalf of Lux Med Spa is requesting a $150,000 Loan from the EDA City-Wide Revolving Loan Program. Staff received the application in late May and met with the loan committee on June 15. Staff and the loan committee both recommend this loan for approval.
Business Background
The Lux Medspa P.L.L.C. started as a spinoff from the gym owned by Andrea and her husband. Andrea obtained her certification to inject neurotoxins and fillers for the sole purpose of injecting herself and her mom. When gym members discovered she injected, they asked her to start injecting them. This business had been mobile-based, but quickly Andrea realized that a brick and mortar location would be a benefit. She opened a spot in the same building as the gym, taking a small part of the location for her business. It has grown to be a medspa providing advanced aesthetic and wellness services including injectables, medical weight loss, hormone therapy, laser treatments, restorative procedures, and thoughtfully curated skincare and some retail of product.
In 2023, The Lux Medspa moved to 502 Division St S, Northfield MN. In 2024, they opened a second location at 731 Main St., Owatonna.
Building Background
They have currently outgrown the 502 Division St S location and are moving down the street to 528 Division St S. They purchased this building and are renovating it to their needs, as well as making it much more energy efficient.
528 Division (former Dufours) is a two story (not including a full walkout basement) building built in 1900. The gross building area (GBA) is approximately 3,432 square feet. The basement is not included in the GBA; however, it will be factored into the overall valuation. As of the appraisal, the property was in a shell state and rated to be in fair condition.
The applicant has invested a great deal of money into the expansion, including many unexpected costs. While not inconsistent with 100+ year old building renovations, these costs were not considered in initial mortgage conversations as they have far exceeded initial contingencies. Additionally, the initial appraisal for the building came back unexpectedly low, bringing the original bank loan amount lower than anticipated.
The building is owned by Lux owner Andrea’s husband, Greg Berube through Jupiter Properties LLC. G. Berube is a signatory of a personal guarantee in the collateral arrangement for this loan.
Recommended Loan Terms
Berube has sought an additional loan from SMIF along with this from the EDA. Staff has met with SMIF and CRB (primary financer) staff to complete necessary due diligence. Both SMIF and CRB are supportive of this additional loan.
The EDA Loan Committee met on Monday, June 15 to review the application and discuss a recommendation to the EDA Board. The Committee provided a recommendation to the EDA
Board approving the loan according to the following terms:
- Loan Amount Requested: $150,000
- Loan Terms Requested: 20 years
- Loan Amortization Requested: 20 years
- Loan Interest Rate proposed: 5%
- Collateral Offered: 3rd Lien Position on Mortgage; Signed personal guarantee from applicant
- Monthly Payments of $989.93
City Plans & Policies Relevance:
This Loan program was designed prior to the adoption of our current Strategic and Comprehensive Plans. However, this project is highly consistent with their current goals. See: Northfield 2045 Comprehensive Plan: Sustainable Economic Future: Small Business Development, for example.
Alternative Options:
Deny the request and state the reasons for denial.
Financial Impacts:
The EDA does not limit funds for revolving loan applications. The balance of Fund 292 is approx. $1,700,000; EDA Operating has approx. $325,000 in fund balance. Cash balance at 12/31/25 for combined EDA is approx. $1,300,000.
Tentative Timelines:
Received Application - May 22, 2026
Loan Committee Met - June 15, 2026
EDA Action on Loan request - June 29, 2026
Documents finalized and executed - July 13, 2026
EDA provided final items on consent agenda - July EDA Meeting