Laserfiche WebLink
EOty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Housing and Redevelopment Authority 7.2 <br /> Agenda Section Meeting Date Prepared by <br /> General Business Aril 4, 2016 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Die Concepts Blighted Properties Forgivable Cal Portner, City Administrator <br /> Commercial/Industrial Loan application review Reviewed by <br /> Action Requested <br /> Consider and provide recommendation to the City Council on the following Blighted Properties <br /> Commercial/Industrial forgivable loan application for Die Concepts,Inc. <br /> Background/Discussion <br /> The city received an application from Die Concepts, Inc. for a $75,000 Blighted Properties Forgivable <br /> Commercial/Industrial loan and an application for a Jobs Incentive Microloan which was approved by <br /> the EDA Finance Committee on March 29, 2016. <br /> Die Concepts has leased space in an 11,000 sf manufacturing plant in Ramsey for the past 16 years and <br /> intends to relocate their operation to Elk River. They design and build progressive metal stamping <br /> tooling for a variety of customers in the US,Mexico, and Ireland including Medronic, Boston Scientific, <br /> Toro, Graco, and 3M. They have executed a purchase agreement on the property located at 18485 Twin <br /> Lakes Road NW, contingent upon receiving city financial assistance. The company has plans to renovate <br /> the former 21,000 sf MN FAB building. <br /> The building is a one story,metal-framed structure with a wood-framed pole structure addition and will <br /> take approximately three months to update. Updates include residing; new windows, doors and lighting; <br /> updated electrical systems,restroom,ventilation, and fire protection. The outside plan includes <br /> landscaping. The applicant intends to connect to city water and sewer. Soil contamination has been <br /> identified on the site and the applicant is conducting further soil reports to identify remediation which <br /> may add to the overall project costs. <br /> Analysis <br /> The goal of the HRA Blighted Properties Commercial/Industrial forgivable loan program is to stimulate <br /> private sector investment and help spur new construction, create and retain employment opportunities <br /> and promote the sale and redevelopment of structurally substandard properties. <br /> A Blighted Properties Commercial/Industrial forgivable loan is required to meet the following guidelines <br /> and staff analysis is shown in Bold, alongside the applied policy: <br /> 1. The project results in the sale and/or redevelopment of properties deemed structurally <br /> substandard. Structurally substandard shall mean containing defects in structural elements or a <br /> combination of deficiencies in essential utilities and facilities,lighting and ventilation, fire <br /> protection,including adequate egress,layout and condition of interior partitions, or similar <br /> POWERED 6T <br /> AR <br />