5.1 EDSR 10-20-2014 - Laserfiche WebLink

Home Browse Search

• City of Elk River, Minnesota Coin-Tainer Co., LLC.Application Review October 9,2014 Page 5 80%of the total project costs would be financed with private dollars which meets the minimum criterion (50%)of the City's policy. 2. Sufficient cash flow to cover proposed debt service as demonstrated by financial statements and projections. Stonesthrow Companies, LLC has requested tax abatement assistance from the City of Elk River and Sherburne County to assist with acquisition of the facility and provide sufficient annual revenues to support operating costs of the building. Coin-Tainer Co., LLC will be leasing a portion of the building from Stonesthrow Companies, LLC, The company has positive net worth through July 2014 and has indicated it is able to provide positive cash flow. 3. Ability to demonstrate positive net worth It is important to note that the latest(full years)financial statements provided by the company are for the year ending December 31, 2013. In addition we have received partial year information through July 31, 2014. As such this determination is being made based upon the available information at that time. Based upon a review of the financial information submitted by the company, Coin-Tainer Co., LLC had a positive net worth in December of 2012, a negative net worth as of December 31, 2013, and a positive net worth as of July 31, 2014. 4. Letter of commitment from applicant pledging to complete the project during proposed project duration. The applicant has stated receipt of the microloan funds and tax abatement assistance to Stonesthrow Properties, LLC will secure the ability to acquire the facility and permanently locate in the City of Elk River. 5. Letter of commitment from other financing sources stating terms and conditions of their participation. Stonesthrow Companies, LLC is intending to acquire the building through a contract for deed as a means of financing the project. The microloan funding to Coin-Tainer Co., LLC provides additional resources to invest in the project. 6. Sufficient collateral Further discussions with the applicant have indicated it has sufficient collateral. Conclusion After examining the micro loan application materials submitted by Coin-Tainer Co., LLC. and in conjunction with the Economic Development Micro Loan Program guidelines, Springsted concludes that 1 appears to be in compliance with the program eligibility requirements (for which information was provided) as outlined in this memo and at the time of review. The fourth loan of the City of Elk River's Economic Development Micro Loan (Jobs Incentive Program) is currently under review by DEED. Review of the applicant for receipt of the Jobs Incentive Micro Loan Program is subject to approval by DEED.