Laserfiche WebLink
Request for Action <br />ToItem Number <br />Economic Development Authority Finance Committee4.1 <br />Agenda Section Meeting DatePrepared by <br /> <br />General BusinessSeptember 29, 2016Amanda Othoudt, EDD <br />Item Description <br />Reviewed by <br />Consider Forgivable Loan Application from Apex Cal Portner, City Administrator <br />Embroidery, Inc. <br />Reviewed by <br /> <br />Action Requested <br /> <br />Consider and recommend the EDA approve a $200,000 forgivable loaEmbroidery Design, <br />Inc. <br />Background/Discussion <br />Apex Embroidery, Inc. is requesting a $200,000 forgivable loan and city tax abatement assistance of <br />$85,164 over 12 years and $77,590 over 10 years from the county for a total of $162,754. <br />Apex Embroidery provides a variety of apparel decorating solutions, including <br />custom applique, custom rhinestone transfers digital transfers, <br />transferand more. They work with a variety of clients, andhave produced products for Ralph Lauren, <br />North Face, Tommy Hilfiger, Harley Davidson, Warner Brothers,and Abercrombie& Fitch. <br /> <br />In business since 1998, they were originally located in Hopkins, MNbefore leasing an Elk River space in <br />2001. In 2008, Apex leased a 7,500 sq. ft. facility in Ramsey. Continuingto grow, they wish to build a new <br />facility in Elk River. <br />Apex plans to invest $306,000 in additional equipment and pledge to grow their workforce by seven <br />employeesaveraging $17.71/hourwithin two years of project completion. They proposeto relocate 18 <br />FT employees with an average wage of $15.57 per hour. <br />th <br />The project consists of a 13,312 sq.ft.facility on approximately 1.4 acres of land at 9775 158 Circle NW. <br />They will have the option to purchase and adjacent parcel for room to expand thei <br />an additional 14,975 square feet. <br /> <br />The applicant must meet the following criteria for the Forgivabl <br />Forgivable Loan Criteria <br />a)50% of project financing from another source <br />b)Maximum loan amount $200,000 <br />c)Minimum of one job paying equal or greater to $12.82/hr. created per $35,000 requested, <br />51% of which must be awarded to low and moderate income (LMI) em <br />d)Retain jobs for a minimum of one year <br />e)Interest  3% or two points below prime <br />Template Updated 4/14 <br /> <br />