6. EDSR 04-08-2013 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT FORGIVABLE LOAN POLICY GUIDELINES & APPLICATION OVERVIEW The Economic Development Authority (EDA) for the City of Elk River recognizes the need to stimulate private sector investment to help spur new construction,create and retain employment opportunities,and promote the sale of city-owned property. The focus is on industrial,manufacturing,and technology-related industries to increase the local and state tax base and improve economic vitality. The program can be used toward the purchase of land (preference given to city-owned property) or to assist in purchasing new machinery,equipment, furniture or fixtures. II. TO APPLY Applications will initially be accepted from February 15,2013 to March 15,2013. After March 15`h, applications will be accepted on an ongoing basis and reviewed monthly. Projects will be scored based on the attached Application Review Worksheet. The applicant shall complete and submit the attached application to the city,along with a processing fee of 1% of the loan request to cover processing expenses (fee will be refunded if application is denied). Once application is deemed complete,it will be reviewed by the EDA Finance Committee and EDA (process may take up to six weeks). Applicants will be notified of application status no later than May 3,2013. III. PURPOSE Forgivable loan funds are to be used for business start-ups, expansions,and relocations where jobs are created and tax base is generated. This can be accomplished by the following means: 1. Creation of permanent,private-sector jobs in order to create above average economic growth; 2. Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3. Increase of local tax base; 4. Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living;and 5. Stimulation of productivity growth through improved manufacturing or new technologies. IV. PROJECT ELIGIBILITY AND REQUIREMENTS The forgivable loan must be based on the following criteria: 1. Creation of new jobs which meet the Federal low to moderate income (LMI) guidelines and wage goals (currently wages and benefits must equal at least$12.19/hr. requirements adjust annually in March). At least 51%of the jobs created must be made available or held by LMI person as outlined on page 18 of this application. 2. Increase in tax base 3. The project demonstrates that investment of public dollars induces private funds; 4. The project provides higher wage levels to the community or will add value to current workforce skills; 5. The project results in the sale and development of city owned property; 6. Whether assistance is necessary to retain existing business;and 7. Whether assistance is necessary to attract out-of-state business. Forgivable Loan Policy and Application rIENEI Page 1 of 20 AE