7.0.EDSR 06-14-2004 - Laserfiche WebLink

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Consider Financing Assistance for Badger Ventures,LLC(Gradient Technology)Project June 14,2004 EDA Meeting Page 3 of 3 . Eligible Equity and But-For Analysis The Tax Rebate Financing does not appear in the project financing since the city and county would be providing the TRF on a pay-as-you-go basis and the company is financing the upfront land cost. For the purpose of the Micro Loan Policy and the Tax Rebate Financing Policy, the estimated $90,000 in company labor is not counted toward equity requirements of up to 10%. Ehlers &Associates has completed a but-for analysis of the project. The attached email from Sid Inman of Ehlers indicates that the but-for test is met by using the amount of the abatement and the micro loan to make the net land price competitive with available land in other communities. Recommendations Consider Approval of Micro Loan Amendments The Finance Committee has reviewed the Micro Loan Policy and is recommending that the EDA consider approval of the policy amendments as outlined in the attached Ms. Steinmetz staff report. The City Council will also need to consider approval of the Micro Loan Policy amendments. Consider Approval of Badger Ventures, LLC $100,000 Micro Loan Request The Finance Committee has reviewed the application and is recommending that the EDA consider approval of the$100,000 Badger Ventures Micro Loan request with the terms as outlined in the attached Ms. Steinmetz staff report. Since the amount of the loan request qualifies as a business subsidy in accordance with the MN Business Subsidy Statute, the City Council will need to hold a public hearing and consider approval of the Micro Loan as it applies to the business subsidy being provided. Consider Recommendation to City Council for Approval of Badger Ventures TRF Request Gradient Technology has provided the necessary information for the city's consideration of the Tax Rebate Financing request. Staff's analysis via the attached TRF Policy and Staff Proposal Review Worksheet indicates that Badger Ventures,LLC and Gradient Technology have met the minimum requirements of the City's Tax Rebate Financing Policy. Staff recommends that the EDA consider making a recommendation to the City Council for approval of the Badger Ventures,LLC (Gradient Technology) Tax Rebate Financing request up to $72,778 on a pay-as-you-go basis for up to 10- years. The attached resolution and draft Tax Abatement and Business Subsidy Agreement will be provided to the City Council for consideration at its June 21,2004 meeting. The Sherburne County Board of Commissioners will consider the Badger Ventures TRF request for up to $72,778 and the EDA's recommendation at its June 15, 2004 meeting.