6.1 EDSR 12-19-2016 - Laserfiche WebLink

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the amount of the loan, which is $100,000, and that the Business Subsidy is needed because the project is not sufficiently feasible for the Borrowers to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to develop manufacturing facilities, increase the tax base in the City and stimulate the creation and retention of jobs. In consideration of the Business Subsidy provided to assist with the Borrowers' acquisition of equipment for the Loan Property, the Borrowers represent that it will cause meet following goals (the "Goals"): the Borrowers shall create 5 full-time equivalent jobs in Elk River, Minnesota, at the Loan Property at an hourly wage equal to $19.00 per hour inclusive of benefits, whichever is greater, by the two (2) year anniversary of the date of closing on the Loan. (b) If none of the Goals are met, the Borrowers,jointly and severally, agree to repay all of the Business Subsidy to the City, plus interest ("Interest") set at the greater of 4% per annum or the implicit price deflator defined in Minnesota Statutes Section 275.70, subdivision 3, accruing from and after the date of closing on the Loan, compounded semiannually. If the Goals are met in part, the Borrowers agree,jointly and severally, to repay a portion of the Business Subsidy (plus Interest) determined by multiplying the Business Subsidy by a fraction, the numerator of which is the number of jobs in the Goals which were not created at the wage level set forth above and the denominator of which is 5 (i.e. number of jobs set forth in the Goals). (c) The Borrowers agree to: (i) report its progress on achieving the Goals to the City until the later of the date the Goals are met or two years from the Benefit Date, or, if the Goals are not met, until the date the Business Subsidy is repaid, (ii) include in the report the information required in Section 116J.994, subdivision 7 of the Business Subsidies Act on forms developed by the Minnesota Department of Employment and Economic Development, and (iii) send completed reports to the City. The Borrowers agree to file these reports no later than March 1 of each year commencing March 1, 2017, and within 30 days after the deadline for meeting the Goals. The City agrees that if it does not receive the reports, it will mail the Borrowers a warning within one week of the required filing date. If within 14 days of the post marked date of the warning the reports are not made, the Borrowers agree to pay to the City a penalty of $100 for each subsequent day until the report is filed up to a maximum of$1,000. (d) The Borrowers agree that they will continue operations in the City for at least five years after the date of closing on the Loan. (e) Other than the loan provided pursuant to this Agreement, there are no other state or local government agencies providing financial assistance for the project. (f) There is no parent corporation of the Borrowers. [Signature Pages follow] 10 491713v1 EL185-46