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Springsted Incorporated <br />380 Jackson Street, Suite 300 <br />Saint Paul, MN 55101-2887 <br />Tel: 651-223-3000 <br />Fax: 651-223-3002 <br />www.springsted.com <br />DRAFT MEMORANDUM <br />TO: Jeremy Barnhart, Community Operations and Development-Deputy Director <br />FROM: Mikaela Huot, Vice President/Consultant <br /> Julian Bradshaw, Analyst <br />DATE: January 23, 2015 <br />SUBJECT: Distinctive Iron, LLC. – Microloan Fund Application Review <br />Summary <br />The City of Elk River received a loan request from Distinctive Iron, LLC (the applicant) through the Economic <br />Development Microloan Fund. The applicant has indicated the funds would be used to aid in the acquisition and <br />remodeling of an existing building. At the request of City staff, Springsted has undertaken an initial review of the <br />company’s application and request to determine that, based upon the provided information, the applicant meets the <br />guidelines as set forth by the City of Elk River’s Economic Development Microloan Fund policy. The purpose of this <br />memo is to outline the components of the Microloan Fund Policy and Application including the requests for additional <br />information that is necessary for review as it relates to the application submitted to the City by Distinctive Iron: <br />Project Eligibility Requirements under Jobs Incentive Program <br />For a project to qualify under the Jobs Incentive Program of the City of Elk River Economic Development Microloan <br />Fund policy an applicant must meet certain criteria: <br />Must create one new full-time job for each $20,000 loaned, retain one new full-time job for each <br />$10,000 loaned, or combination of retainage and creation to meet <br />All new jobs must be created within 2 years and retained for the period of the loan: <br />Created and retained jobs must pay greater than $15.00 per hour or 150% of State or Federal <br />minimum wages (whichever is greater): <br />Any loans shall meet the City of Elk River Business Subsidy Policy for the creation of new jobs as <br />well as a 5 year location requirement: <br />Eligible costs must be used for costs related to job creation an <br />The application received by the City includes a requested loan a <br />relocation to the City and 5 additional new jobs created within <br />