9.0. EDSR 04-14-2003 - Laserfiche WebLink

Home Browse Search

City of Elk River Micro Loan Proposed Amendments to the Policy & Application Issues Discussed at Finance Committee Meeting (I 0-7-02) and Staff Issues for Discussion: Finance Committee Recommendations from 2-18-03 meeting are highlighted in bold&italics. I. Interest Rate (Page 2 & 3): The Finance Committee proposed establishing an interest rate floor for all programs at 2%. Committee consensus on interest rate floor of2% on all programs. 2. Job & Wage Goals (Page 2 & 7): Staff recommends the Committee consider revising the loan amount-to-job ratio and wage rate for the two industrial loan programs. Staff recommends the Committee consider using the State economic development finance loan amount-to-job ratio, as follows: $ 6,000 per job paying$9-12.00 per hour, exclusive of benefits $10,000 per job paying over $12.00 per hour, exclusive of benefits Note: Loans less than$75,000 do not require compliance with the statutory Business Subsidy Law for job and wage goals. However, the Finance Committee discussed that perhaps the minimum criteria still be applied for loans amounts less than $75,000. Loan amounts over$75,000 must meet the City's Business Subsidy Policy. Committee consensus to keep loan amount-to-job ratio the same at$20,000/job. Recommended removing "average"wage language. Amend Supplemental program to require minimum wage of$9.00 per hour. Industrial Incentive program minimum wage to remain at$10.00 per hour. What penalty is applied if job/wage goals are not met? Should be consistent with Business Subsidy Policy requirements. Should the 5-year location requirement be included as well? Requires call of loan anyway. 3. Term (Page 2 & 3): Staff recommends including language specifying the following: Real estate uses: Maximum amortization of 20 years Machinery&Equipment uses: Maximum amortization of 10 years Staff recommends that the maturity date remain fixed upon refinancing. • Committee consensus to include staff recommendations stated above.