7.5 HRSR 05-01-2017 - Laserfiche WebLink

Home Browse Search

granted to the Borrower under this Agreement is the amount of the loan, which is $75,000, and that the Business Subsidy is needed because the Project is not sufficiently feasible for the Borrower to undertake without the Business Subsidy. The public purpose of the Business Subsidy is to cause the redevelopment of certain property, increase the tax base in the City and stimulate the creation of jobs. In consideration of the Business Subsidy provided for the Borrower's Project, the Borrower has agreed to meet the following goals (the "Goals "): the Borrower shall create 5 full -time equivalent jobs at the Loan Property at an hourly wage, exclusive of benefits, equal to the greater of $16.00 per hour or 150% of the state or federal minimum wage, whichever is greater (the "Jobs "), by the 2 -year anniversary of the Benefit Date (as defined in Minnesota Statutes, Section 116J.993. (b) If none of the Goals are met, the Borrower agrees to repay all of the Business Subsidy to the City, plus interest ( "Interest ") set at the greater of 2.00% per annum or the implicit price deflator defined in Minnesota Statutes Section 275.70, subdivision 3, accruing from and after the Benefit Date, compounded semiannually. If the Goals are met in part, the Borrower agrees 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 Borrower agrees 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 Borrower agrees 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 Borrower 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 Borrower agrees 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 Borrower agrees that it will continue operations in the City and maintain the Jobs for at least 5 years after the Benefit Date. (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 Entity Guarantor or the Borrower. [Signature Pages follow] 10 498527v1 EL185 -51