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<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />DRAFT MEMORANDUM <br /> <br />TO: Amanda Othoudt, Economic Development Director <br /> <br />FROM: Mikaela Huot, Vice President/Consultant <br /> <br />DATE: June 18, 2015 <br /> <br />SUBJECT: Morrell Trucking – Microloan Fund Application Review <br /> <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 /> <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 /> <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 />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