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City of <br /> Ell* = Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authori 6.10 <br /> Agenda Section Meeting Date Prepared by <br /> General Business January 21, 2014 Brian Beeman,Director of Economic <br /> Development <br /> Item Description Reviewed by <br /> Sportech Forgivable Loan Jeremy Barnhart,Deputy Director, CODD <br /> Reviewed by <br /> Action Requested <br /> Approve, by motion, Sportech's Forgivable Loan in the amount of$111,155.13 and recommend to the <br /> City Council to set a Public Hearing for February 3, 2014 to hear comment and approval of the <br /> Forgivable Loan Agreement. <br /> Background/Discussion <br /> At the December 16, 2013 EDA meeting the EDA made a motion for staff to prepare the loan agreement <br /> and documents for Sportech as recommended by the EDA Finance Committee with the condition that <br /> Springsted complete their independent review of the Forgivable Loan Application. Springsted has completed <br /> their analysis and review of the loan application. The loan application is strong. The project cost is $263,088 <br /> and is anticipated to be completed by the second quarter of 2014. <br /> The EDA is under some pressure from the state to utilize the remaining balance of state DEED funds or <br /> return it to the State;that amount is $111,155.13. Sportech represents the only project received that would be <br /> eligible. <br /> A representative from Springsted, the city's financial consultant and a representative from Sportech will be <br /> present to explain the project. The city's Business Subsidy Policy calls for a Public Hearing in loan amounts <br /> over$100,000 even though the State Statutes specify any amount over$150,000 as the threshold. Therefore, <br /> staff is requesting that the EDA recommend to the City Council to call for a Public Hearing at their February <br /> 3, 2014 for February 18,2014 and to also approve Sportech's Forgivable Loan application. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • December 16, 2013 EDA Staff Memo <br /> • Springsted Jan 21, 2014 Loan Application Memo Final <br /> • Springsted December 16,2013 Informational Memo <br /> • Sportech Forgivable Loan Application (will be sent under cover by email due to confidentiality) <br /> • Project Commitment Letter from Sportech dated December 26, 2013 <br /> POwEe10 0 Y <br /> NAUR <br />