Laserfiche WebLink
<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Economic Development Authority 6.3 <br />Agenda Section Meeting Date Prepared by <br /> <br />General BusinessJuly 20, 2015Amanda Othoudt, EDD <br />Item Description Reviewed by <br /> <br />Morrell Companies Jobs Incentive Microloan Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br />Approve, by motion, and provide recommendation to the City Council on the following Scott Morrell, <br />LLC/Morrell Oversize (Morrell Companies) Jobs Incentive Microloan application. <br /> <br />Background/Discussion <br /> <br />The city received an application for a $200,000 Jobs Incentive Microloan Program from Scott Morrell, <br />LLC/Morrell Oversize (Morrell Companies). <br /> <br />The Finance Committee reviewed and recommended the EDA approve Morrell Companies application <br />for a Jobs Incentive Microloan. <br /> <br />The goal of the Jobs Incentive Microloan program is to encourage the growth of new jobs and the <br />retention of existing jobs. The company currently employs 105 people with an average hourly wage of <br />$23 per hour. Of the 105 employees, 13 FTE are employed by Morrell Oversize with an average hourly <br />wage of $27.94/hour. Morrell Companies proposes to hire 8 FTE with the expansion. The average <br />hourly wages of the retained jobs and the new jobs exceed the minimum requirements of at least <br />$15/hour. <br /> <br />Analysis <br />The attached memo from Springsted summarizes the analysis completed to date. Mikaela Huot will be at <br />the meeting to verbally support the analysis. <br /> <br />Staff’s analysis is shown in bold font, alongside the applied policy. <br /> <br />Purpose: To assist existing businesses with expansion and attract new businesses to the city <br />whose local operations will expand the city’s economy through job retention and <br />creation and maintain/grow the city’s tax base. The purpose of the Jobs Incentive <br />Program is to encourage the creation of quality, high-paying jobs within the city. <br /> <br /> Morrell Trucking will bring 8 FTE jobs to Elk River within 2 years, paying <br />between $16-$20 per hour, exclusive of benefits. <br /> <br />Amount: Up to $200,000 of secondary financing not to exceed 20% of the project cost. <br /> <br /> <br />