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Springsted Incorporated <br /> 380 Jackson Street, Suite 300 <br /> �p r-i n g s t e d Saint Paul,MN 55101-2887 <br /> Tel: 651-223-3000 <br /> Fax: 651-223-3002 <br /> www.springsted.com <br /> DRAFT MEMORANDUM <br /> TO: Amanda Othoudt, Economic Development Director <br /> FROM: Mikaela Huot,Vice President/Consultant <br /> DATE: March 23, 2016 <br /> SUBJECT: Die Concepts, Inc.—Housing and Redevelopment Authority Blighted Properties <br /> Forgivable Commercial/Industrial Loan Application Review <br /> Summary <br /> The City of Elk River received a loan request from Die Concepts, Inc. (the applicant) through the newly created <br /> Housing and Redevelopment Authority Blighted Properties Forgivable Commercial/Industrial Loan Policy for$75,000. <br /> The applicant has also submitted an application for assistance through the Economic Development Jobs Incentive <br /> Microloan Fund for the maximum loan amount of$200,000. The project as proposed by the applicant includes the <br /> acquisition and clean up of an existing approximate 20,000 square foot industrial building including refacing the <br /> exterior, new windows, asphalt, doors, landscaping and roof. The interior would be completely gutted with new <br /> electrical and other renovations to meet the applicant's needs. The project as proposed would allow for the <br /> occupancy and renovation of an existing vacant building in the City and would bring 12 new jobs to the City through <br /> business relocation. The applicant has indicated it also has future plans to increase sales and add jobs, due to <br /> additional space the newly renovated building would allow for. <br /> At the request of City staff, Springsted has undertaken a review of the company's application and supporting financial <br /> materials to determine that, based upon the provided information, the applicant meets the guidelines as set forth by <br /> the City of Elk River's Housing and Redevelopment Authority Blighted Properties Forgivable Commercial/Industrial <br /> Loan Policy. The purpose of this memo is to outline the financial components of the applicant's request for assistance <br /> from the Blighted Properties Forgivable Commercial/Industrial Loan Policy and Application, dated November 2, 2015, <br /> with a loan amount of$75,000. <br /> The table on the following page illustrates the projected sources and uses of funds for the proposed project as <br /> provided in the application. It also includes the percentage of project costs and funding sources to determine the <br /> funding sources meet the policy criteria. Based on the applicant's initial request, approximately 70% of the funding <br /> i ubHc Sector Advisors <br />