7.3. SR 12-15-2014 - Laserfiche WebLink

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City of Elk - Request for Action River O. To Item Number Economic Development Authori 5.1 Agenda Section Meeting Date Prepared by General Business December 15, 2014 Jeremy Barnhart,Deputy Director, CODD Item Description Reviewed by Stonesthrow Properties,LLC (Coin-tainer) Tax Abatement and X icroloan review Reviewed by Action Requested Consider Stonesthrow,LLC (Coin-Tainer) N icroloan application. Background/Discussion The Finance Committee has reviewed Stonesthrow application for the Jobs Incentive N icroloan. They are requesting$200,000, the maximum available. Stonesthrow proposes to use the microloan to assist with the financing of the purchase of the building at 17834 Industrial Circle through a contract for deed. A major tenant of the building is Coin-Tainer. Coin-Tainer and Stonesthrow Companies share a common owner,Dave Walters. The Finance Committee supported the application,but wanted to ensure that 5 issues were addressed in the final agreements: • That both Coin-Tainer and Stonesthrow maintain responsibility for the loan repayment and job creation. • There must be lease continuity. • City must maintain a subordinate position with the option to take over the Contract for Deed at its discretion in the event of default. • Repayment maintain a 20 year amortization with 5 year balloon payment. • The City must be provided 6 month notice in the event of a default. Based on these issues, the FDA attorney has begun the development of the agreements. The FDA will see these agreements for approval in January, unless they wish to delegate approval authority to the FDA attorney. The goal of the Jobs Incentive microloan program is to encourage the growth of new jobs and the retention of existing jobs. The $200,000 requested will support the long term investment in the building, ultimately retaining the 26 jobs on site,and adding 10 more jobs in the near term future. Attachments • Springsted Analysis • Finance Committee Packet P a w E A E U s r NaA f RE]