HRSR INFORMATION 05-03-2004 - Laserfiche WebLink

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Economic Development 2003 Annual Report • River. The company committed to creating 2.5 new full-time jobs at no less than $1 7.00/hour within 2 years. Several previous loans were paid off and closed out in 2003, including Carpe Kairos (Custom Cutter), Sportech, Beaudry Convenience, David Decker, Ink Wizards, Pro-Tech Engineering, Riverside Manufacturing, and Tescom. The EDA agreed to and received a final settlement with the owner of Northstar Die Casting. Two loans were granted two year extensions, including Barder (Olde Main Eatery Building) and M&A Investments, LLC (Ultra-Image Building). Seven micro loans remain in current standing. The loan fund ended with an approximate $789,273 cash balance in 2003. The EDA Finance Committee also provided recommendation and EDA approved several amendments to the Micro Loan Policy, including: • Established an interest rate floor of 2%for each financing program. • Revised wage goal for the Supplemental Financing Program from a minimum wage of$8/hour to $9/hour. • Addition of"investment real estate" as a permitted fund use, with a 50%pre-lease requirement. • Addition of hook-up to city services as an improvement that may be required for the request of public funds for building expansion/improvement projects. MN Community Capital Fund Participation • Staff remains an active participant of the MN Community Capital Fund, including the Director of Economic Development's election to the Fund Board of Directors for a 3- year term. In 2002 the City became a member of the MN Community Capital Fund (MCCF). The MCCF is a new non-profit membership corporation established to increase the lending capacity of economic development groups specifically throughout Greater Minnesota. The City's membership deposit of$50,000 allows the City the capacity to originate multiple loans of up to $500,000. The program provides the City the flexibility to fund large housing and economic development projects that would otherwise not be possible through the City's typical micro loan program. In addition, the loan applicants may request the partnership and sponsorship of Sherburne County, Great River Energy along with the City membership for a maximum loan up to $1, 075,000. Sportech, Inc. Expansion Project A highlight of 2003 was the Sportech, Inc. expansion project. Local manufacturer, Sportech, Inc., designs, produces and markets accessories for the recreational vehicle industry. The project marked the company's third expansion in Elk River since it was founded in 1993. Sportech doubled their operations by constructed an additional 20,000- square foot building on its I0-acre site located along Jarvis Street. Economic Development staff coordinated a MN Investment Fund grant application to the MN Department of Trade & Economic Development for $200,000 that would be provided as a 2% loan to Sportech, Inc. for the purchase of new equipment necessary to the expansion. The loan supplemented other sources of private financing and leveraged city participation in the project. Sportech, Inc. committed not only the tax base increase from the building project, but also to the creation of up to 15 new jobs at not less than