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City of Elk River, Minnesota <br /> Die Concepts Inc. <br /> March 23,2016 <br /> Page 5 <br /> • Ability to demonstrate positive net worth: the company has demonstrated positive net income in the <br /> provided 2014 and 2015 financial statements, with continued practices projected in cash flow analysis <br /> following the relocation commencing in 2016 and 2017. <br /> • Letter of commitment from applicant pledging to complete the project during proposed project <br /> duration: Provided <br /> • Letter of commitment from other financing sources stating terms and conditions of their <br /> participation.CorTrust Bank is willing to provide financing for the project in the amount of$540,800. <br /> The loan proceeds are to be used to pay the costs associated with the purchase, renovation, and <br /> improvement of the project. The project consists of the purchase, renovations and improvements of a <br /> 20,000+/-sf industrial building on the property, fixtures and permits being purchased by the applicant in <br /> the City of Elk River. Interest shall accrue at a fixed rate of 4.25%for 5 years after inception, and then <br /> reprice at a fixed rate of 2.75%over the 5-year treasury rate until the loan matures in 10 years. Fred <br /> Trapp,Michael Tracey and Die Concepts, Inc., a Minnesota Corporation, are the loan guarantors. The <br /> financing commitment letter from CorTrust Bank has been provided in conjunction with the loan <br /> application and supporting documents. <br /> • Sufficient collateral: CorTrust Bank is in position#1 on the land and building. The EDA would be#2 for <br /> the microloan and#3 on the HRA's Blighted Properties forgivable loan policy. A personal/corporate <br /> guarantee will also be provided. <br /> c. All other information as required in the application and/or additional information as may be requested by the <br /> Economic Development Authority <br /> d. Project compliance with all city codes and policies <br /> e. Program Objectives: In addition to quality job and wage creation/retention requirements, the applicant must <br /> meet all Microloan Fund criteria and demonstrate how the proposed activities will meet at least one of the <br /> following objectives: <br /> • The project contributes to the fulfillment of the city's approved and adopted economic development <br /> and/or redevelopment plans <br /> • The project prevents or eliminates slums and blight <br /> • The project increases the local tax base <br /> • The project brings a structure into compliance with an existing building code violation <br />