7.7. SR 04-18-2016 - Laserfiche WebLink

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City of Elk River, Minnesota Die Concepts Inc. March 23, 2016 Page 3 7. Whether assistance is necessary to attract out-of-state business An applicant must meet criteria#5 in which the project results in the sale and/or redevelopment of properties deemed structurally substandard. In addition, a loan cannot be made solely on a finding that the conditions in 5, 6, or 7 exist. A finding must be made relative to 1, 2, 3 or 4 as well. The application received by the City includes a requested loan amount of$75,000 with 12 jobs being created. In addition, the proposed project would bring the 12 new jobs into the City following purchase and renovation of the existing building and would be within the required 2 year period. The company will agree to retain the jobs within the City for the period of the loan. The average hourly wages of the 12 jobs range from$23-$29. The project as proposed with the job creation would meet the City's Business Subsidy Policy as the wages exceed the minimum of$15/hour plus benefits and the company will agree to stay in the City for at least 5 years. The blighted properties funds would be used to acquire and renovate the building which allows the company to locate within the City, bringing the jobs, and thus meeting the job creation requirements of the project. 5. Eligible Activities (Page 3 of Policy) To qualify for receipt of a blighted properties forgivable loan, the applicant must utilize the funds for the specific purposes outlined in the City's policy.According to the policy, loans may be used for the following activities: • Property acquisition, demolition, soil prep, infrastructure, or building construction • Purchase furniture,fixtures and equipment(FF&E)along with new construction The funds would be used for renovation and modernization of an existing building, including both exterior and interior renovations of the building for industrial use. 6. Business Eligibility (Page 3 of Policy) In addition to having an eligible project a business must also meet certain criteria before it is deemed eligible to receive the loan funds. According to the Blighted Properties Forgivable Loan Policy, to be eligible for a loan a business must meet the following: • Business must be a for-profit corporation, partnership or sole proprietorship: • Business must be a small business as defined by the small business administration: • Business must have a positive net worth: • Non-profit corporations, casino, sports facilities and sexually oriented enterprises are not eligible to use the Blighted Properties Forgivable Loan Policy: Based on the submitted application, the business is a for-profit corporation defined as a small business, is an industrial, manufacturing or technology-based industry and is not a non-profit, casino, sports facilities, or sexually oriented enterprise. The two most recent full years of financial statements (2014 and 2015) indicate positive net worth. Following the completion of the acquisition, renovation and location into Elk River, the company is showing projected positive cash flow and continued net worth in 2016 and 2017.