7.3. SR 12-15-2014 - Laserfiche WebLink

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City of Elk River, Minnesota Stonesthrow Companies, LLC and Coin-Tainer Co., LLC Microloan Fund Application Review December 15, 2014 Page 6 • Letter of commitment from applicant pledging to complete the project during proposed project duration: The applicant has provided a letter of commitment stating that receipt of the microloan funds will secure the ability to acquire the facility and locate in the City of Elk River. • Letter of commitment from other financing sources stating terms and conditions of their participation: The applicant has proposed acquisition of the building through a contract for deed as a means of pro_ject financing. The microloan funding provides additional resources to invest in the project. • Sufficient collateral: The applicant has stated it has sufficient collateral. c. All other information as required in the application and/or additional information as may be requested by the Economic Development Authority d. Project compliance with all city codes and policies e. Program Objectives: In addition to quality job and wage creation/retention requirements, the applicant must meet all Microloan Fund criteria and demonstrate how the proposed activities will meet at least one of the following objectives: • The project contributes to the fulfillment of the city's approved and adopted economic development and/or redevelopment plans • The project prevents or eliminates slums and blight • The project increases the local tax base • The project brings a structure into compliance with an existing building code violation If the project for which loan funds have 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 has been estimated to increase as a result of increased occupancy. This should result in fulfillment of the city's economic development plans of increased jobs within the community and an increase in the local tax base resulting from the market value growth. Conclusion After examining the micro loan application materials submitted by Stonesthrow Companies, LLC and Coin-Tainer Co., LLC and reviewing in conjunction with the Economic Development Micro Loan Program guidelines, Springsted concludes that the applicant and project appear 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. We note, however, that the information we were provided represents a snapshot in time, and therefore subject to change if unknown or unanticipated events may occur.