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Consider Financing Assistance for Badger Ventures, LLC (Gradient Technology) Project <br />June 21, 2004 City Council Meeting <br />Page 3 of 3 <br /> <br />Consider Approval of Badger Ventures, LLC $ 100,000 Micro Loan Request <br />Since the amount of the loan request qualifies as a business subsidy in accordance with the MN <br />Business Subsidy Statute, the City Council will need to hold a public hearing and consider approval <br />of the Micro Loan as it applies to the business subsidy being provided. The attached public heating <br />notice was published in the June 169 Star News. <br /> <br />The EDA has approved the $100,000 Badger Ventures Micro Loan request. Staff recommends that <br />the Council approve the $100,000 Badger Ventures Micro Loan request with the following terms <br />approved by the EDA: <br /> <br />Rate <br />Term <br /> <br />Security <br /> <br />Structure <br />Job performance agreement <br />(subsidy agreement) <br /> <br />Fixed, 2 points below prime with a 3% floor <br />15-year amortization, balloon payment to match the <br />bank term but not to exceed 5-years <br />Secured by 2"d position on the real estate, personal <br />guarantee from owners and spouses <br />Participation loan with The Bank of Elk River <br /> <br />To include 5 new full-time jobs in Elk River with <br />estimated wages ranging from $15-$75.00 within 2- <br />years <br /> <br />Consider Approval of Badger Ventures Tax Rebate Financing Request <br />Badger Ventures, LLC and Gradient Technology have met the minimum requirements of the City's <br />Tax Rebate Financing Policy. The EDA is recommending that the City Council approve the Badger <br />Ventures, LLC (Gradient Technology) Tax Rebate Financing request up to $72,778 on a pay-as-you- <br />go basis for up to 10-years. The Sherbume County Board of Commissioners at its June 15th meeting <br />approved the Badger Ventures TRF request for up to $72,778 on a pay-as-you-go basis for up to 10- <br />years. <br /> <br />Staff recommends that the Council consider approval of the Badger Ventures, LLC (Gradient <br />Technology) Tax Rebate Financing request up to $72,778 on a pay-as-you-go basis for up to 10- <br />years via the following attached resolutions: <br /> · Resolution Approving Property Tax Abatement <br /> · Resolution Authorizing Execution of a Tax Abatement and Business Subsidy Agreement. <br /> <br /> <br />