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• City of <br /> Elk -�-1 <br /> River <br /> MEMORANDUM <br /> TO: EDA Finance Committee <br /> CC: Lori Johnson, Finance Director <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development \AS <br /> DATE: June 9, 2004 <br /> SUBJECT: Consider Micro Loan Application: Badger Ventures, LLC <br /> (Gradient Technology) <br /> Issue <br /> The attached meeting minutes summarize the Finance Committee's consideration of the <br /> Badger Ventures,LLC Micro Loan application on June 1, 2004. Due to the Committee's <br /> 411/ request for additional information (the City's Business Subsidies Policy and information <br /> regarding the legal tie between Badger Ventures and Gradient Technology) and a lack of a <br /> quorum, there was no action on the Badger Ventures request. Therefore, the Committee <br /> must continue discussions on the consideration of the request. The attached memorandum <br /> summarizes the request. <br /> Business Subsidies Policy <br /> The City's Business Subsidies Policy and background material about the MN Business <br /> Subsidy Law is attached. Note page five which states that"Each company receiving a <br /> business subsidy shall be subject to the subsidy agreement and reporting provisions and <br /> requirements set forth by the MN Business Subsidy Law". <br /> In addition, Finance Committee members may recall at the recent Economic Development <br /> Strategic Planning Sessions that a discussion was held regarding a concern that the City's <br /> Business Subsidies Policy$15/hour wage requirement may be too high. Staff requests the <br /> Finance Committee's input be provided in a recommendation to the EDA. An analysis of <br /> area community business subsidies wages is attached for your review. <br /> Legal Tie Between Badger Ventures & Gradient Technology <br /> Staff obtained the opinion of the City's TIF/Abatement attorney regarding the legal tie <br /> between Badger Ventures and Gradient Technology. Verbiage will be included in the Tax <br /> Abatement agreement and the Micro Loan Subsidy Agreement between Badger Ventures <br /> and Gradient Technology requiring Badger Ventures to require Gradient Technology to <br /> • accomplish job and wage goals. <br />