Laserfiche WebLink
<br />Request for Action <br />ToItem Numbe <br /> <br />r <br />Economic Development Authority 5.1 <br />Agenda SectionMeeting DatePrepared by <br /> <br /> <br />General BusinessDecember 15, 2014Jeremy Barnhart, Deputy Director, CODD <br />Item DescriptionReviewed by <br /> <br />Stonesthrow Properties, LLC (Coin-tainer) Tax . <br />Reviewed by <br />Abatement and Microloan review <br /> <br /> <br />Action Requested <br />Consider Stonesthrow, LLC (Coin-Tainer) Microloan application. <br />Background/Discussion <br /> <br />The Finance Committee has reviewed Stonesthrow application for the Jobs Incentive Microloan. They <br />are requesting $200,000, the maximum available. Stonesthrow proposes to use the microloan to assist <br />with the financing of the purchase of the building at 17834 Industrial Circle through a contract for deed. <br />A major tenant of the building is Coin-Tainer. Coin-Tainer and Stonesthrow Companies share a <br />common owner, Dave Walters. <br />The Finance Committee supported the application, but wanted to ensure that 5 issues were addressed in <br />the final agreements: <br />That both Coin-Tainer and Stonesthrow maintain responsibility for the loan repayment and job <br />creation. <br />There must be lease continuity. <br />City must maintain a subordinate position with the option to take over the Contract for Deed at <br />its discretion in the event of default. <br />Repayment maintain a 20 year amortization with 5 year balloon pa <br />The City must be provided 6 month notice in the event of a defau <br /> <br />Based on these issues, the EDA attorney has begun the development of the agreements. The EDA will <br />see these agreements for approval in January, unless they wish to delegate approval authority to the <br />attorney. <br /> <br />The goal of the Jobs Incentive microloan program is to encourage the growth of new jobs and the <br />retention of existing jobs. The $200,000 requested will support the long term investment in the building, <br />ultimately retaining the 26 jobs on site, and adding 10 more job <br /> <br /> <br />Attachments <br /> <br />Springsted Analysis <br />Finance Committee Packet <br /> <br />