7.2 HRSR 06-01-2015 - Laserfiche WebLink

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as outlined within. Projects are evaluated on a first -come, first - served basis and awarded based upon meeting program criteria. Other requirements of the loan include: • Businesses receiving a principal amount greater than $75,000 shall comply with subsidy law reporting requirements. • Business shall be commercial, retail, industrial, manufacturing, or technology -based industry. • The applicant shall provide 50% of funding from a different source. • Shall retain created jobs for at least two years. • Shall comply with all city code and policies. • Shall demonstrate project financial feasibility. • Applicants shall conduct an environmental review. The loan will become forgivable after five years upon the completion of the job requirements. To receive maximum loan amount of $200,000, applicant would need to reinvest in the blighted properties project site including acquisition and site preparation at 100 percent or more of the assessor's current year's estimated market value. The Blighted Properties Forgivable Loan terms are set by the HRA. Projects which don't meet the terms may be required to repay all or a portion of the loan as determined in the loan agreement. Repayment terms will vary depending on the use of funds and collateral securing the loan. Specific repayment terms will be defined in the loan agreement in the event repayment of part or the entire Blighted Properties Forgivable Loan is required. However, all loans will become due and payable in full if a business relocates outside of the City of Elk River prior to the maturity date of the loan or if the jobs created are not maintained for a period of 2 years from the date of closing. A extension may be granted upon review of the Housing and Redevelopment Authority on a case -by -case basis, except as otherwise required by law. The application fee is a non - refundable fee set at $2,000 to cover processing the application. In addition, to the non - refundable processing fee, all legal and filing fees shall be paid by the borrower at closing. The time between application and approval of the loan is expected to take 6 -8 weeks. Staff will review applications submitted for compliance with program requirements. The application will then be submitted to and reviewed by the city's financial advisor, and may be subject to further review by the Small Business Development Center. Upon approval from the city's financial advisor and /or the SBDC, the EDA Finance Committee will review the application to ensure compliance with applicable goals, policies, and ordinances. Once a recommendation has been given, the HRA will review and ultimately approve or deny the loan. Loan proceeds will be disbursed upon proof of expenditures Financial Impact None Attachments ■ DRAFT HRA Blighted Properties Forgivable Loan program