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El REQUEST FOR ACTION <br /> River <br /> To ITEM NUMBER <br /> Finance Committee <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> January 30, 2013 Clay Wilfahrt,Assistant Director of <br /> Economic Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Forgivable Loan Program Policy and application Suzanne Fischer, Community <br /> recommendation Operations and Development <br /> Director <br /> REVIEWED BY <br /> Cal Portner, City Administrator <br /> ACTION REQUESTED <br /> Review the Forgivable Loan Program Policy and provide direction to Economic Development staff. <br /> BACKGROUND/DISCUSSION <br /> The EDA currently has a Department of Transportation and Economic Development (DTED) fund <br /> balance of$703,679. Staff visited with MN Department of Employment and Economic Development <br /> (MNDEED) personnel who clarified that DTED dollars cannot be comingled with other program funds, <br /> must adhere to original federal guidelines, and may preclude Elk River from receiving future MNDEED <br /> funding until the funds are depleted. <br /> In September 2012, the EDA authorized the formation of a subcommittee to determine a framework to <br /> facilitate proceeding with the DTED program. Staff drafted a program policy and application after <br /> several meetings with the subcommittee and MNDEED. The policy and application have been approved <br /> by MNDEED. <br /> The program is designed to maximize new construction, employment, and emphasize sale of city-owned <br /> property. The program can be used to purchase land,machinery, furniture, fixtures, and equipment. The <br /> first application period will be open from February 15 to March 15, 2013. After March 15, applications <br /> will be accepted on an ongoing basis and reviewed monthly until funds are depleted. <br /> The forgivable loan program must adhere to original federal guidelines and each project must meet one of <br /> the following criteria to be considered: <br /> • Create new jobs which meet the federal low to moderate income (LMI) guidelines and wage goals <br /> (wages and benefits must equal at least$12.19/hr.). At least 51% of jobs must be made <br /> available or held by LMI person as outlined on page 17 of this application. <br /> • Result in a tax base increase. <br /> • Demonstrate that the investment of public dollars induces private funds. <br /> • Provide higher community wage levels or add value to current workforce skills. <br /> • The project results in the sale and development of city-owned property. <br /> iOVEREI IV <br /> NAME <br />