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City of <br /> Elk Request for Action <br /> ever <br /> To Item Number <br /> Economic Development Authori 6.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business Aril 18, 2016 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Die Concepts,Inc.Jobs Incentive Microloan Cal Portner, City Administrator <br /> Program Financial Application Reviewed by <br /> Action Requested <br /> Provide recommendation to the City Council on the following jobs Incentive Microloan application for <br /> Die Concepts,Inc. <br /> Background/Discussion <br /> The city received an application from Die Concepts,Inc. for a $200,000 jobs Incentive Microloan. On <br /> March 29, 2016, the EDA Finance Committee reviewed the jobs incentive microloan application and <br /> recommended the EDA approve an $185,200 loan not to exceed 20% of the total project costs. <br /> The city also received a HRA Blighted Properties Commercial/Industrial Forgivable Loan for$75,000 <br /> which was approved by the HRA on April 4,2016. <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 <br /> completely renovate the former 21,000 sf MN FAB building. <br /> The jobs Incentive Microloan Program goal is to encourage the growth of new jobs and the retention of <br /> existing jobs. The company currently employs 12 people with an average hourly wage of$26.50/hr.,has <br /> outgrown their leased space in Ramsey, and intends to relocate their operation and employees to Elk <br /> River. <br /> Following the EDA meeting this evening, the City Council will hold a public hearing for the proposed <br /> subsidies,invite public comment and take final action on the requests. <br /> Financial Impact <br /> The loan funds could be funded from the City Microloan Fund account,which has a balance of <br /> $767,636.73. <br /> Attachments <br /> ■ Microloan Application (March 7, 2016) <br /> ■ Springsted Analysis (March 24,2016) <br /> P' UWEAEU 0V <br /> NA <br />