7.3. SR 12-15-2014 - Laserfiche WebLink

Home Browse Search

City of Elk River, Minnesota Stonesthrow Companies, LLC and Coin-Tainer Co., LLC Microloan Fund Application Review December 15, 2014 Page 3 All new jobs must be created within 2 years and retained for the period of the loan: According to the applicant, the project would result in the creation of 70 new_jobs. 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 pro_ject plans to create 70 new_jobs at$75.00 per hour. 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: The minimum wage for a_job to be considered anew or retained job shall be the greater of$75.00 per hour or 750%of state or federal minimum wage, whichever is greater, exclusive of benefits required by law. According to the applicant, the project would result in the creation of 70 new_jobs at$75.00 per hour. Eligible costs must be used for costs related to job creation and retention: Funds will be used to acquire the building on a contract for deed which will facilitate the creation of new_jobs and retainage of existing jobs in the community. 3. Permitted Fund Uses of Microloan (Page 6 of Policy) To qualify for receipt of a microloan, 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 the applicant, the microloan funds would be used to aid in the purchase of the existing building on a contract for deed basis and therefore would meet the eligibility criteria of#2. 4. Business Eligibility (Page 7 of Policy) In addition to having an eligible project a business must also meet certain criteria before it is deemed eligible to receive forgivable loan funds. According to the Economic Development Microloan Fund Policy, to be eligible for a microloan a business must meet the following Business must be a for-profit corporation, partnership or sole proprietorship: The applicant is a for-profit corporation.