7.0.EDSR 06-14-2004 - Laserfiche WebLink

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Micro Loan Application: Badger Ventures,LLC(Gradient Technology) EDA Finance Committee—June 1,2004 , Page 2 of3 9 Proposed Project Financing: Bank Loan $883,500 Private Equity $47,056—cash $60,000—exhaust hoods purchased $90,000—company labor EDA Micro Loan $100,000 Total $1,180,556 In addition, the company has requested a land write-down using City and County Tax Rebate Financing (TRF) in the amount of$145,556 ($72,778 from the City and $72,778 from the County). The TRF will be assigned to The Bank of Elk River and first used to pay the Micro Loan. jobs The company currently employs 13 full-time staff, including 7 based in Blaine, Minnesota and 6 in Indiana and elsewhere. The positions have an hourly wage between$16-$75.00 per hour. The company anticipates creating up to 5 new full-time jobs in Elk River with estimated wages ranging from $10-$75.00 within 2-years. Micro Loan Criteria In addition to the financial criteria that must be considered, the Finance Committee must 4110 also consider to what degree the applicant satisfies the criteria set forth in the attached Micro Loan Fund policy: The attached March 4, 2003 Finance Committee minutes indicate that the Committee discussed that the $100,000 Industrial Incentive Program criteria should continue to specify that the borrower must locate in the West Business Park. The EDA approved this and several amendments to the Micro Loan Policy in April of 2003. The EDA has recently requested the Finance Committee's review and recommendation of whether the $100;000 program should be eligible city-wide. The attached Finance Committee minutes and memo indicate that the Finance Committee and EDA also discussed this issue in 1997 and 1999. Gradient Technology has identified a 2.05 acre site in the Elk.River Business Park (East Business Park). Below are additional comparisons between the Industrial Incentive Program Micro Loan criteria and the company's proposal: Micro Loan Criteria Gradient Technology * Max. Loan Amount: $100,000 * Amount requested: $100,000 * Interest Rate: 4 below prime, 2% floor * Rate requested: 4 below prime, 2% floor * 1 job created per $20,000 loaned * 1 job created per $20,000 loaned * Min. average wage of$10 per hour * Estimated wage range of$10-$75 per hour *Location: West Business Park *Location: East Business Park As in past Micro Loan meetings, the applicant will be given an opportunity to present the • project and application. Following the presentation the Finance Committee may ask questions of the applicant. The applicant will then be excused from the meeting, allowing