7.1. SR 10-20-2014 - Laserfiche WebLink

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City of Elk River, Minnesota Coin-Tainer Co., LLC.Application Review October 9, 2014 Page 2 specifically on the project eligibility, loan security and guarantee requirements, eligible activities, business eligibility, and financial feasibility requirements as stated in the guidelines. The review is meant to provide a snap shot of the above referenced information and should be used as a tool to enable the City to form an opinion as to the applicant's suitability for the microloan program and ability to proceed with the project and honor any commitment made to the City of Elk River. Note on the Microloan Policy Currently the City of Elk River has approved an amendment to the microloan policy that will allow the City to loan up to $200,000 under a fourth micro loan which is referred to as the job incentives program. State approval through the Department of Employment and Economic Development(DEED)is pending and any loan that is made will be contingent upon verification of the required approvals.Any substantial changes to the policy may require an updated review of the applicant to determine eligibility. Program Objectives Applicant must demonstrate how the proposed activities will meet at least one of the following objectives: 1. The project contributes to the fulfillment of the city's approved and adopted economic development and/or redevelopment plans. 2. The project prevents or eliminates slums and blight. 3. The project increases the local tax base. 4. The project brings a structure into compliance with an existing building code violation. If the project for which loan funds ha ve been requested is completed as presented the company has estimated it would retain 26 and create 70 newJobs in the City. The project would maintain long-term occupancy in a partially vacant building and value of the property would increase which should increase the local tax base. Project Eligibility Requirements For a project to qualify under the proposed fourth micro-loan (Jobs Incentive Program)of the City of Elk River Economic Development Microloan policy an applicant must meet certain criteria: 1. Must create one new full-time job for each$20,000 loaned, retain one new full-time job for each$10,000 loaned, or combination of retainage and creation to meet the requirements: According to the applicant, Coin-Tainer plans to create 70 new_jobs and retain 26 current jobs 2. All new jobs must be created within 2 years and retained for the period of the loan; According to the applicant, the pro_ject plans to create 70 new_jobs 3. Created and retained jobs must pay greater than$15.00 per hour or 150%of State or Federal minimum wages (whichever is greater); According to the applicant, the project plans to create 70 new_jobs at$75.00 per hour 4. Any loans shall meet the City of Elk River Business Subsidy Policy for the creation of new jobs as well as a 5 year location requirement;