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factors,which defects or deficiencies are of sufficient total significance to justify substantial <br /> renovation or clearance. <br /> The city has received a letter from Scott Builders, Inc. summarizing the building code review <br /> performed on the subject property on March 4, 2016. The letter outlines a combination of <br /> deficiencies in essential utilities and facilities, code compliance, lighting,ventilation, and fire <br /> protection,which meets the criteria outlined in the policy. <br /> 2. The minimum wage for a job to be considered a new or retained job shall be the greater of <br /> $15/hour or 150% of the state or federal minimum wage,whichever is greater, exclusive of <br /> benefits. <br /> The company currently employs 12 FT paying$23-$29/hour, exclusive of benefits. They intend <br /> to relocate the 12 FTE to Elk River. The average hourly wages of the retained jobs meet or <br /> exceed the minimum business subsidy requirements of at least$15/hr. <br /> 3. The project will result in an increase in tax base, the project can demonstrate that investment of <br /> public dollars induces private funds and the project provides higher wage levels to the community <br /> or will add value to current workforce skills. <br /> A total of$260,200 in total public investment will result in over$926,000 in private capital <br /> investment accounting for more than 20,900 sf blighted property redevelopment and will increase <br /> the total annual property tax revenue by approximately$9,025. The applicant will relocate 12 <br /> FTE to Elk River paying between$23-$29/hour. <br /> Summary <br /> The applicant is eligible for the HRA Blighted Properties Commercial/Industrial forgivable loan <br /> in the amount$75,000,meeting the definition of structurally substandard,wage goals, and job <br /> criteria requirements and the proposed fund uses are eligible expenses. <br /> Financial Impact <br /> If the commission agrees this loan meets the goals of the city and HRA, the loan funds could be funded <br /> from the HRA Blighted Properties Commercial/Industrial fund account,which has a balance of <br /> $225,000. <br /> Attachments <br /> • Springsted Analysis (March 23, 2016) <br /> • Blighted Properties Commercial/Industrial Application (March 7, 2016) <br /> • Photos of the Subject Property <br /> • Loan Agreement <br /> • Promissory Note <br /> • Mortgage <br /> • Personal Guarantee—Tracey <br /> • Personal Guarantee -Trapp <br /> • Entity Guarantee <br /> • Environmental Indemnification Agreement <br /> • Resolution <br />