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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 /> <br />