6.0. EDSR 05-10-2004 - Laserfiche WebLink

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Tax Abatement Request—Badger Ventures,LLC May 10,2004 EDA Meeting Page 2 of 2 • Staff has been in contact over the past one and a half years with Eric Haehn,Vice President/CFO of Gradient Technology. The company currently leases space in Blaine, MN and is seeking a suitable location within the northwest metro area to relocate. Badger Ventures,LLC proposes to construct a 13,000-square foot light industrial/business park building for lease to Gradient Technology's office,research&development, and equipment fabrication operation. Badger Ventures proposes to purchase 2.05-acres within the Elk River Business Park and has requested that the city and county consider a write down of the land cost ($143,770) to $0 through a pay-as-you-go note to the limited liability company. Status At this time the company has selected a bank lender and proposed financing terms. The financing proposal includes that the company apply for an EDA Micro Loan in the amount of$100,000 to supplement sources of private and public financing. The company is currently completing the Micro Loan application for consideration by the EDA Finance Committee, and recommendation to the EDA at its June meeting. The attached Micro Loan Policy describes that loan amounts up to $100,000 through the Industrial Incentive Program is for the purpose of encouraging industrial development that supports the tax base and brings quality jobs to the city. The loan is provides at a rate of 4 points below prime, or a 2% floor,whichever is greater. The criteria includes that the borrower must locate in the West Business Park. Gradient Technology's site proposal is for the Elk River Business Park, located on • northeast Highway 169. Staff requests the EDA's feedback on the concept to amend the criteria for the Industrial Incentive loan program to industrial businesses located at any location in the city. •