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<br /> <br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Economic Development Authority Finance Committee 4.1 <br />Agenda Section Meeting Date Prepared by <br /> <br />General BusinessJanuary 27, 2015Jeremy Barnhart, Deputy Director, CODD <br />Item Description Reviewed by <br /> <br />Distinctive Iron Microloan review . <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br />Provide recommended response to the EDA regarding the Jobs Incentive Microloan application. The <br />Finance Committee may recommend approval, approval with conditions, or denial of the application. <br /> <br /> <br />Background/Discussion <br /> <br />The City has received an application from Distinctive Iron for a $126,000 Jobs Incentive microloan. <br />Distinctive Iron is proposing to purchase the property at 19128 Industrial Blvd to house their growing <br />metal design and fabrication business serving Minnesota. Distinctive Iron is currently located in <br />Nowthen. The Microloan would help facilitate the purchase of the building, necessary equipment and <br />onsite improvements, including a 20,000 sq.ft. outdoor storage area. The Land Use approval of the <br />th <br />outdoor storage area is pending, expected February 17. <br /> <br />The building is 13,000 sq.ft. Their current location offers 4,800 sq.ft. <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 $126,000 requested will support Distinctive Irons investment in Elk River, <br />bringing 8 jobs to town, with anticipated growth of 5 more full time jobs in the next two years. <br /> <br />Analysis <br />Staff’s analysis is shown in Bold, alongside the applied policy. <br />Purpose: To assist existing businesses with expansion and attract new businesses to the City <br />whose local operations will help expand the City’s economy through job retention <br />and creation and maintain/grow the City’s tax base. The purpose of the Jobs <br />Incentive Program is to encourage the creation of high paying and quality jobs to the <br />city. <br /> <br /> Distinctive Iron will bring 13 jobs to Elk River within 2 years, paying between <br />$15-$22 per hour. <br /> <br />Amount: Up to $200,000 of secondary financing not to exceed 20% of the <br />project cost. <br /> <br /> The $126,000 requested is 20% of the project cost. <br /> <br /> <br />