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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Economic Development Authority 5.1 <br />Agenda Section Meeting Date Prepared by <br /> <br />Public HearingDecember 15, 2014Jeremy Barnhart, Deputy Director, CODD <br />Item Description Reviewed by <br /> <br />Stonesthrow Properties, LLC (Coin-tainer) Tax . <br />Abatement and Microloan review <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br />Consider Stonesthrow, LLC (Coin-Tainer) Microloan application. <br /> <br /> <br />Background/Discussion <br /> <br />A public hearing was continued from November 17, 2014, pending Finance Committee review of <br />additional information requested at the November Finance Committee meeting. The Finance Committee <br />has completed review of Stonesthrow application for the Jobs Incentive Microloan. Stonesthrow <br />proposes to use the $200,000 microloan to assist with the financing of the purchase of the building at <br />17834 Industrial Circle through a contract for deed. A major tenant of the building is Coin-Tainer. Coin- <br />Tainer and Stonesthrow Companies share a common owner, Dave Walters. <br /> <br />The Finance Committee supported the application, but wanted to ensure that 5 issues were addressed in <br />the final agreements: <br /> <br /> <br />That both Coin-Tainer and Stonesthrow maintain responsibility for the loan repayment and job <br />creation. <br /> <br /> <br />There must be lease continuity. <br /> <br /> <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 /> <br /> <br />Repayment maintain a 20 year amortization with 5 year balloon payment. <br /> <br /> <br />The City must be provided 6 month notice in the event of a default. <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 EDA <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 jobs in the near term future. <br /> <br />Attachments <br /> <br /> <br /> <br />Springsted Analysis <br /> <br /> <br />Finance Committee Packet <br /> <br /> <br />