Laserfiche WebLink
Springsted Incorporated <br /> 380 Jackson Street, Suite 300 <br /> Springsted Saint Paul,MN 55101-2887 <br /> Tel: 651-223-3000 <br /> Fax: 651-223-3002 <br /> www.spnngsted.com <br /> DRAFT MEMORANDUM <br /> TO: Amanda Othoudt, Economic Development Director <br /> FROM: Mikaela Huot,Vice President/Consultant <br /> DATE: June 18,2015 <br /> SUBJECT: Morrell Trucking—Microloan Fund Application Review <br /> Summary <br /> The City of Elk River received a loan request from Morrell Trucking(the applicant)through the Economic Development <br /> Microloan Fund. The applicant has indicated the funds would be used to aid in the acquisition and construction of an <br /> expansion to their existing facility. The company has also requested tax abatement assistance in a separate <br /> application. At the request of City staff, Springsted has undertaken an initial review of the company's application and <br /> request to determine that, based upon the provided information,the applicant meets the guidelines as set forth by the <br /> City of Elk River's Economic Development Microloan Fund policy. The purpose of this memo is to outline the <br /> components of the Microloan Fund Policy and Application including the requests for additional information that is <br /> necessary for review as it relates to the application submitted to the City by Morrell Trucking. <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 the requirements: <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 and retention: <br /> The application received by the City includes a requested loan amount of$200,000 with 8 jobs being created and 105 <br /> jobs retained within the City due to the application. The average hourly wages of the existing retained jobs and the <br /> jobs to be created exceed the minimum requirement of at least$15/hour. <br /> Public Sector Advisors <br />