EDA approves loan for bakery

by Jim Boyle

Editor

The Elk River Economic Development Authority approved a $74,500 loan for Blue Egg Bakery at its April 8 meeting.

The downtown revitalization microloan will fund a remodeling project at 707 Main St., the former location of Sweet P’s Ice Cream and Candies.

Blue Egg, which celebrated its one-year anniversary in downtown Elk River last month, bought the building that the ice cream parlor once called home and now it intends to expand its business to offer more decorated occasion and wedding cakes, fudge and candy. (Sweet P’s is looking to re-locate in another space downtown Elk River, according to the business’s Facebook page.)

Blue Egg Bakery has 10 employees, and it hopes to add three more with the additional space and expanded product offerings, according to Tim Dolan, an economic development consultant from Decklan Group working on behalf of Blue Egg.

The EDA’s microloan program is available to business and property owners in the downtown district primarily for the rehabilitation and restoration of older buildings as well as new business development. The microloan fund has a cash balance of $1,221,360 with $252,806 in notes receivable.

Blue Egg’s loan will be issued at 2 percent interest with a 10-year term and a 10-year amortization. The EDA secured a personal guarantee and obtained a second lien position on 707 Main St. and 713 Main St. and the first position on all equipment.

Bruce DeWitt of Blue Egg Market said most of the remodeling project will be used to bring the inside of the building up to code to the satisfaction of the Department of Agriculture, which oversees bakeries and candy stores.

There are plans for new floors, new walls and facade improvements DeWitt referred to as topical in nature. There are also plans for new lighting, fixtures, shelving and new work spaces in the building, which was built in 1900.

The Blue Egg Bakery’s second location will help the bakery expand its current offerings to include higher-end cakes, fudges and candies. The business’s two locations are separated by Daddy-O’s Cafe, an American restaurant at 709 Main St. that has no plans of going anywhere.

Blue Egg currently offers a variety of homemade artisan breads, cookies, doughnuts, pastries and cakes out of the former Don’s Bakery.

“Our products are made from scratch and baked fresh every morning!,” the bakery’s website proclaims.

Having two locations will enhance the bakery’s ability to offer cakes by having a cooler atmosphere more conducive to cake making and sales.

“The heavy heat and heavy humidity of the bakery are not as conducive to decorated cakes,” Dolan said.

Orders at Blue Egg can be placed by calling 763-441-1911.

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