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• City <br /> Elofk -�-1 <br /> River <br /> MEMORANDUM <br /> TO: EDA Finance Committee <br /> CC: Patrick Klaers, City Administrator <br /> Lori Johnson, Finance Director <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development <br /> DATE: August 17, 2005 <br /> SUBJECT: Consider Micro Loan Application: Alliance Machine, Inc. <br /> Attachments <br /> • Affiance Machine, Inc. Micro Loan Application including attachments <br /> • TRF Projection Worksheet <br /> • • E-mail message from Sid Inman of Ehlers &Associates,August 11, 2005 <br /> • City of Elk River Business Subsidies Policy <br /> Issue <br /> The owners of Affiance Machine, Inc. (Patrick and Bryan Provo, father and son) have <br /> submitted the attached application for an Industrial Incentive Program Micro Loan in the <br /> amount of$100,000 to be used for the construction of a new industrial/business park <br /> building in Elk River. The loan is proposed to be structured as a participation loan with The <br /> Bank of Elk River. <br /> Background <br /> Staff has been assisting Affiance Machine since last fall to find a suitable site for the <br /> relocation and expansion of the company's precision machining facility from Maple Grove <br /> to Elk River. <br /> Use of Tax Rebate Financing (TRF) or "Abatement" for the Project <br /> The company has accepted the EDA's proposal of a 100%land write-down using City and <br /> County TRF in the amount of$207,956 ($138,470 from the City and the same from the <br /> County). The City Council will hold a public hearing and consider final approval of the use <br /> of TRF for this project on August 15`" <br /> S <br />