5.1 EDSR 10-20-2014 - Laserfiche WebLink

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City of Elk River, Minnesota Coin-Tainer Co., LLC.Application Review October 9, 2014 Page 3 The minimum wage for a job to be considered a new or retained job shall be the greater of$15.00 per hour or 150%of state or federal minimum wage, whichever is greater, exclusive of benefits required by law. According to the applicant, the project plans to create 10 new jobs at$15.00 per hour 5. Eligible costs must be used for costs related to job creation and retention; Funds will be used to finish installing equipment and restore production capabilities. Loan Security and Guarantee Requirements The City's microloan policy indicates that prior to the City granting a loan to a proposed business,that the proposed project must meet certain loan security requirements. These requirements are: 1. Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral; 2. Applicant must demonstrate the financial means to repay the loans,as determined by the Economic Development Authority; 3. Whenever possible, personal guarantees will be made part of any loan agreement; 4. Key person life insurance may be required as determined by the EDA Finance Committee based on loan amount and company ownership partners; Eligible Activities To qualify for a micro loan the applicant must utilize the funds for the specific purposes outlined in the City's Economic Development Microloan policy. Funds may be used by the borrower for costs related to job creation and retention as a result of the project. According to the policy, loans may be used for the following activities: 1. Building construction 2. Land acquisition 3. Machinery 4. Furniture,fixtures,and equipment(FF&E) 5. Renovation and modernization of buildings 6. Exterior renovation of retail,commercial and industrial buildings 7. Public infrastructure needed for economic development expansions 8. Investment real estate with a minimum of 50%of the space pre-leased According to Coin-Tainer Co., LLC's application materials the company plans to utilize microloan funds to aid in the purchase of equipment which falls within the policy.