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EGty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 7.7 <br /> Agenda Section Meeting Date Prepared by <br /> Public Hearin s Aril 18, 2016 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Die Concepts,Inc.Jobs Incentive 1Vlicroloan and Cal Portner, City Administrator <br /> Blighted Properties Forgivable Loan Reviewed by <br /> Action Requested <br /> 1. Open public hearing to consider comments on the proposed microloan application for Die <br /> Concepts,Inc. in the amount of$185,200 and a blighted properties forgivable loan application in <br /> the amount of$75,000. <br /> 2. Adopt,by motion, two resolutions approving the Jobs Incentive 1Vlicroloan and Blighted <br /> Properties Forgivable Loan and authorizing execution of the loan documents for Die Concepts, <br /> Inc. <br /> Background/Discussion <br /> Die Concepts,Inc., a manufacturer currently located in Ramsey,MN,is interested in purchasing a <br /> property and relocating to Elk River. The property has been vacant for some time and is in very poor <br /> condition. Die Concepts is requesting assistance under the city's blighted property and jobs incentive <br /> loan programs to renovate the building,improve the aesthetics of the property and make connections to <br /> city water and sanitary sewer services. <br /> The City Council must hold a public hearing and invite comments for any business subsidy in an amount <br /> greater than $150,000. <br /> The EDA Finance Committee reviewed the jobs incentive microloan application and recommended the <br /> EDA approve an $185,200 loan not to exceed 20% of the total project costs. <br /> The city also received an HRA Blighted Properties Commercial/Industrial Forgivable Loan for$75,000 <br /> which was approved by the HRA on April 4, 2016. <br /> The attached staff reports provide background on the project as considered by the HRA and by the EDA <br /> earlier this evening for financial assistance to make substantial improvements to the property located at <br /> 18485 Twin Lakes Road, NW. <br /> Financial Impact <br /> The Economic Development Authority of the City of Elk River will provide a$185,200 microloan to Die <br /> Concepts,Inc. In addition, the Housing and Redevelopment Authority of the City of Elk River will <br /> provide a$75,000 forgivable loan to Die Concepts,Inc. for the substantial renovation of a blighted <br /> property. <br /> POWERED 6T <br /> AR <br />