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(.... <br /> . City of <br /> Elk -�-� <br /> River <br /> MEMORANDUM <br /> TO: EDA Finance Committee <br /> CC: Lori Johnson, Finance Director <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development .1.--\--S <br /> DATE: June I, 2004 <br /> SUBJECT: Micro Loan Application: Badger Ventures, LLC (Gradient . <br /> Technology) <br /> Issue <br /> Co-owner of Badger Ventures, T C, Duane Goetsch, has submitted the attached application <br /> for an Industrial Incentive Program Micro Loan in the amount of$100,000 to be used for <br /> . the construction of a new industrial/business park blinding in Elk River. The loan is <br /> proposed to be structured as a participation loan with The Bank of Elk River. <br /> Background <br /> Badger Ventures, T C proposes to construct a 13,000-square foot building for lease to <br /> Gradient Technology. Gradient Technology is currently leasing space in Blaine, MN and has <br /> been looking to expand in the Northwest Metro area for the past 1.5 yrs. Since 1996, <br /> Gradient Technology has demilitarized munitions for various branches of the military. <br /> None of the demilitarization will be performed in Elk River, but rather at Crane Naval <br /> Service Warfare Center in Crane, Indiana. The building will be used for Gradient <br /> Technology's business office, lab for conducting research and development and for <br /> providing chemical engineering design services and equipment fabrication. <br /> The applicant proposes to use the Micro Loan funds to finance construction costs itemized <br /> on the attached Project Budget Report. The applicant has proposed that the EDA take a <br /> second position on the real estate. The project costs include: _ <br /> Proiect Costs: , <br /> Land-2.05 Acres $145,556 <br /> Construction $1,035,000 <br /> Total $1,180,556 <br />