7.4 HRSR 11-02-2015 - Laserfiche WebLink

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agreement in the event repayment of part or the entire Blighted Properties Forgivable Commercial/Industrial Loan is required. A loan shall become due and payable in full if a business relocates outside of the city of Elk River prior to the maturity date of the loan. Jobs created must be maintained for a period of 2 years from the date of closing. VIII. LOAN SECURITY AND GUARANTEES Applicant must secure the loan by providing the HRA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral. Personal guarantees and entity guarantees may be made part of all loan agreements. Key person life insurance may be required as determined by the HRA based on loan amount and company ownership partners. VIII. TIMING OF PROJECT EXPENSES/PROJECT TIMELINE No project should commence until the Elk River Housing and Redevelopment Authority has approved the loan application. Any costs incurred prior to the approval of the loan application are generally not eligible expenditures. Applicant must submit project timeline with application; timeline will assist in determining job creation goal deadlines. The applicant will be responsible for all legal,recording, and other fees required for protection of a security interest in the loan,payable by a non-refundable$2,000 processing fee,which is paid at the time of application. In addition to the non-refundable$2,000 processing fee,all legal and filing fees shall be paid by the borrower at loan closing. X. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL 1. All applicants shall first contact a primary lending institution to determine if additional equity is needed, and if so, how much. 2. The applicant and the primary lender (if applicable) shall then meet with City Staff to obtain information about the Housing and Redevelopment Blighted Properties Forgivable Commercial/Industrial Loan program,discuss the project, and obtain application forms. 3. The applicant shall complete and submit an application form to the City,along with a non-refundable processing fee of$2,000. The applicant must provide evidence of their ability to meet the equity requirements or provide a letter of commitment for conventional financing from the primary lending institution if applicable. 4. The HRA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minn. Sat. Blighted Properties Forgivable Commercial/Industrial Loan Policy&Guidelines P O I E R E I 1 1 Page 6 of 16 NATURE