5. EDSR 07-15-2013 - Laserfiche WebLink

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4l E REQUEST FOR ACTION River TO ITEM NUMBER Economic Development Authority 5. , AGENDA SECTION MEETING DATE PREPARED BY July 15, 2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Consider Industrial Incentive Microloan Application for Jeremy Barnhart, Deputy Director, Preferred Powder Coating LLC Community Operations and Development REVIEWED BY ACTION REQUESTED Consider and approve Industrial Incentive Microloan Application for Preferred Powder Coating LLC BACKGROUND/DISCUSSION The attached staff report to the EDA Finance Committee dated June 20, 2013, and committee meeting minutes provide background regarding the Micro Loan request. The purpose of the Industrial Incentive Program is to encourage industrial and high technology business development that supports the tax base and brings quality jobs to the city. The applicant plans to attend the EDA meeting and respond to any questions about the project. The EDA Finance Committee voted 3-0 to recommend the EDA approve the Industrial Incentive Microloan for Preferred Powder Coating LLC. Because of absences and a potential conflict of interest, the vote was not approved by a quorum, but those in attendance did recommend passing it with the following terms and conditions: Participation Loan: First National Bank of Elk River Loan Amount: $100,000 Interest Rate: 3% fixed Term: 10-year amortization, 5-year balloon Security: Subordinate position mortgage on building and property, subordinate position on equipment, and a personal guaranty. FINANCIAL IMPACT The Micro Loan Fund has a current cash balance of$906,426.25 with $252,806 in notes receivable. The EDA is asked to approve the Industrial Incentive Micro Loan request for Preferred Powder Coating with the following terms and conditions: rowERig t f NATURE