Economic Development Authority Meeting Date: July 27, 2026
To: Members of the Economic Development Authority
From: Emery John, Interim Program Coordinator
Title
Consider Resolution Re-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 recommends 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.
Summary Report:
The EDA approved this loan at its June 29, 2026 meeting. As noted in the June 29 staff report, the finalized loan documents were intended to be presented on the July consent agenda to ensure they are included in the EDA's public record, consistent with standard practice. Staff advanced the loan approval prior to finalizing the documents to provide the applicant with timely confirmation and support the project's schedule.
Following additional review with legal counsel and banking partners, staff recommends revising the collateral package. Rather than requiring a third mortgage as originally contemplated, staff recommends obtaining dual personal guarantees from the applicant and her husband, the building owner. This approach better aligns the collateral with the business rather than the real estate and avoids the administrative burden of drafting and recording a third mortgage with limited remaining collateral value. Staff and legal counsel have determined that the dual personal guarantees, which are also utilized by SMIF, provide adequate security for the loan.
For additional background on the loan, please refer to the attached June 29, 2026 staff report.
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 Eco...
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