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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Economic Development Authority 6.9 <br />Agenda Section Meeting Date Prepared by <br /> <br />General BusinessDecember 30, 2015Amanda Othoudt, EDD <br />Item Description Reviewed by <br /> <br />Patriot Converting Jobs Incentive Microloan Cal Portner, City Administrator <br />Program <br />Reviewed by <br /> <br /> <br />Action Requested <br /> <br />Consider and provide recommendation to the City Council on the following Jobs Incentive Microloan <br />application for Patriot Converting. The Finance Committee may recommend approval, approval with <br />conditions, or denial of the request. <br /> <br />Background/Discussion <br /> <br />The city received an application from Patriot Converting, Inc., for a $200,000 Jobs Incentive Microloan. <br />The EDA Finance Committee reviewed and recommended the EDA approve the application. <br /> <br />Patriot Converting, Inc. is a paper converting service & supply company servicing the paper mills, <br />merchants, commercial printers, and folding carton industries. Patriot offers three major converting <br />services; sheeting, slitting/rewinding, and guillotine cutting. In addition, they sell paper products in the <br />industrial board markets including paper boards consumed for dry food packaging, industrial pallet <br />protection, and point of purchase displays. <br /> <br />Patriot currently operates out of two separate locations. They operate a 24,000sf manufacturing plant in <br />Anoka and a 40,000sf raw material warehouse in Champlin. They truck all raw materials daily between <br />the warehouse and the manufacturing plant with regular volumes of one million pounds of paper rolls <br />each week. By purchasing the facility in Elk River, they will be able to combine both of the facilities into <br />one location, and ultimately reduce double handling costs. <br /> <br />They have executed a purchase agreement on the property located at 12698 Industrial Boulevard, <br />contingent upon receiving city financial assistance. <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 22 with an average hourly wage of $19.32/hr. <br />They intend to relocate to Elk River and retain the 22 FTE. The average hourly wages of the retained <br />jobs meet or exceed the minimum requirements of at least $15/hr. <br /> <br />Analysis <br />The attached memo from Springsted summarizes the analysis completed to date. Staff’s analysis is shown <br />in Bold, alongside the applied policy. <br /> <br /> <br />