6.1 EDSR 12-19-2016 - Laserfiche WebLink

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Approximately half of the facility will be used for pre-finishing with the remaining being used for warehouse/storage space of product. A small portion of the existing office will be used for office space. The total project cost is projected to be $2,045,900. HMI will receive approximately$1,7M in private financing to purchase real estate and equipment from the First National Bank of Elk River and through the SBA 504 program,representing 83% of the total project costs. The applicant will contribute $245,900 to the project as equity,representing 12%of the total project costs. The applicant has applied for the Industrial Incentive Microloan program to finance the remaining$100,000 representing 4.8%of the total project costs. A commitment letter from First National Bank of Elk River is attached to their application. Summary The application meets the minimum job creation criteria and wage requirement per policy for the $100,000 requested. Uses of the funds as proposed are eligible expenses. The applicant meets the financial equity contribution of 10% as required by the Policy. Ultimately, the EDA Finance committee and EDA Commissioners have the discretion to consider each application in terms of its consistency with the goals of the city's Comprehensive Plan and Economic Development Strategic Plan and in relation to the project's overall impact on the community's economy. Financial Impact The full request of$100,000 would be funded through the Microloan fund account. As of December 14, 2016, the balance of the Microloan Fund cash account is $678,248.94. Attachments • Microloan Application (October 31, 2016) • First National Bank Commitment Letter (November 10, 2016) • HMI Project Commitment Letter (October 13,2016) • Summary of Proposed Terms—City Letter (November 18,2016) • P. Menth Resume • Loan Agreement • Security Agreement • Personal Guaranty • Promissory Note • UCC • Resolution