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Finance Committee Minutes Page 4 December 10,2013 4.3 Sportech Forgivable Loan Motin asked if the request meets the requirement for 51% of new jobs hires to be at the Low to Moderate Income (LMI) level. Ms. Hout discussed the LMI job requirements. She noted that Sportech has indicated they will be creating 6 — 10 jobs, with most of those being engineers,but that they will also be creating other jobs. She stated that the agreement could specify 3 or 4 LMI jobs. Ms. Hout stated that she will be meeting with Eric Stack of Sportech to discuss the loan agreement. She stated that if the Finance Committee was comfortable making a recommendation, the project could go forward to the EDA meeting on Monday (December 16`h) for approval of the amount of assistance,with the agreements to be completed in January. Motion by Motin and seconded by Ovall to recommend the EDA approve the Sportech Forgivable Loan in the amount of$111,155.13,provided Sportech is able to meet the necessary requirements. Discussion followed regarding Sportech's request and what the monies will be used for. Further discussion followed regarding job requirements and reporting. Ms. Huot noted that if Sportech does not meet the Low to Moderate Income (LMI) requirements, they will be required to pay the money back. Motion carried 5-0. 4.4 4`' Micro Loan Policy Mr. Barnhart introduced this item. Ms. Knoof stated that Economic Development staff identified areas of need based on a tour with Elk River Chamber President, Debbi Ryberg. She discussed possible uses for funding such as updating signage, ADA compliance,improved access to retail areas, landscaping, storefronts, and rehabilitation of the Railroad Drive area, as well as the Highway 10 residential rental areas near Quinn and Proctor Avenue. Motin stated that the Proctor/Quinn and Railroad Drive areas are already under discussion for future redevelopment. Ms. Knoof stated that specific areas to use the money could be identified within the future redevelopment areas. Ms. McDowell Poehler stated that buildings must be blighted to qualify as a redevelopment tax increment district. She explained that sometimes when "band aides" are put on areas to improve aesthetics and then don't end up qualifying for redevelopment. She stated that the goal is balance when looking at small grant programs. She explained that they may accomplish getting them up to code,but then later,in the big picture, they don't meet the criteria for redevelopment. Ms. Knoof stated that she has spoken with commercial realtors who see a need for funding to help private sector businesses with SAC and WAC fees and infrastructure. She suggested use of the fund for subsidizing rent for new startup businesses in the PyUIEDED DY NATURE