4.3. SR 01-21-2014 - Laserfiche WebLink

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City of Elk River, Minnesota Sportech, Inc.Application Review January 15, 2014 Page 3 3. The project demonstrates that investment of public dollars induces private funds; According to Sportech' application materials the company expects that after receiving the forgivable loan from the city that$757,933 of the approximately$263,088 in project costs will be financed privately. 4. The project provides higher wage levels to the community or will add value to current workforce skills; As stated under criteria number one, Sportech plans to hire six to ten engineers at salaries ranging from $50,000 to$75,000. 5. The project results in the sale and development of city owned property; The company does not anticipate acquiring any additional property with the proposed business expansion. Therefore the project will not result in the sale and development of city owned property. 6. Whether assistance is necessary to retain existing business; and The applicant has not specifically stated that the assistance is necessary to retain the company within the City of Elk River at the present time. However, the company is planning to expand its existing operations within the City of Elk River with the proposed project through the hiring of additional employees for engineering purposes. Approval of the loan and this project will allow the existing company to remain in the City of Elk River and expand certain aspects of the business, thus resulting in existing business retainage. 7. Whether assistance is necessary to attract out-of-state business. The applicant has not indicated the project will attract out-of-state business. Eligible Activities To qualify for a forgivable loan the applicant must utilize the funds for the specific purposes outlined in the City's forgivable loan policy.According to the forgivable loan policy,forgivable loans may be used for the following activities: 1. Land acquisition (city owned property given preference); 2. Purchase of furniture,fixtures and equipment(FF&E)along with construction*. a. *If equipment installation is greater than $2,000, Davis Bacon Rates Apply. According to Sportech's application materials the company plans to utilize forgivable loan funds to aid in the purchase of equipment and to reduce construction costs associated with the remodeling of its facility.