7.0.EDSR 06-14-2004 - Laserfiche WebLink

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ITEM # 7. City of Elk -�-� River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: June 14, 2004 SUBJECT: Consider Micro Loan and Tax Rebate Financing Assistance for Badger Ventures, LLC (Gradient Technology) Project Attachments • Ms. Steinmetz Staff Report Re: Micro Loan Policy Amendments and Micro Loan Application from Badger Ventures,LLC Application,June 14, 2004. • The Bank of Elk River Financing Proposal for Gradient Technology,May 27,2004. 1110 • City of Elk River Business Subsidy Policy. • Correspondence from Sid Inman, Ehlers &Assoc. Re: Gradient Technology,June 2, 2004. • Tax Rebate Financing Policy and Staff Proposal Review Worksheet,June 11,2004. • Draft City Council Resolution Approving Property Tax Abatements. • Draft Tax Abatement and Business Subsidy Agreement. Background At its April meeting the City Council held a public hearing on the Tax Abatement (Tax Rebate Financing) request and business subsidy for Badger Ventures,LLC. The EDA and Council took no action on the request due to several unresolved issues related to the Tax Rebate Financing (TRF) application. The unresolved issues included: • Identification of a bank lender and proposed project financing terms • The possibility of an EDA Micro Loan request of up to $100,000 • Identification of the amount and source of eligible equity • Completion and review of a but for analysis At its May meeting the EDA requested that the Finance Committee consider making a recommendation to the EDA regarding possible amendments to the Industrial Incentive ($100,000) Micro Loan Program eligibility for citywide use rather than limited to the West Business Park. In addition, the Finance Committee was asked to review and make recommendation on a Micro Loan application from Badger Ventures,LLC (Gradient Technology).