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<br /> <br />Page 6 of 21 EDA & City Council Approved August 21, 2017 <br /> <br /> <br /> <br />10. COMPLIANCE WITH MN BUSINESS SUBSIDY LAW <br /> All developers/businesses receiving financial assistance from the City of Elk River <br />shall be subject to the provisions and requirements set forth by the City’s Business <br />Subsidy Policy as amended and Minnesota Statutes Sections 116J.993 to 116J.995 <br />(the “Minnesota Business Subsidy Law”) if applicable. <br /> <br />11. Agreement to Pay Costs of Review <br />It is the policy of the city of Elk River to require applicants to pay costs incurred by <br />the city in reviewing and acting upon applications, so that these costs are not borne <br />by the taxpayers of the city. These costs include all of the city’s out-of-pocket costs <br />for expenses, including the city’s costs for review of the application by the city’s <br />Financial Consultant and City Attorney, or other consultants, recording fees, and <br />necessary publication costs. <br /> <br />The application processing fees cover anticipated costs; costs incurred above the <br />application fee will be invoiced as they are incurred, and payment will be due within <br />thirty (30) days. Any unused portion of the application fee will be returned to the <br />applicant. If payment is not received as required by this agreement, the city may <br />suspend the application review process and may deny the application for failure to <br />comply with the requirements for processing the application. Payment for costs will <br />be required whether the application is granted or denied. <br /> <br />12. Microloan Programs <br /> <br />In order to meet the economic and community development objectives of the EDA, <br />five distinct microloan programs exist within the Business Microloan Fund. <br /> <br />Industrial Incentive Loan <br />Purpose: The purpose of the Industrial Incentive Loan is to encourage <br />industrial and high technology business development that supports <br />the tax base and brings quality jobs to the city. <br /> <br />Amount: Up to $200,000 of secondary financing not to exceed 20% of the <br />total project cost. <br /> <br />Remaining <br />Principal: Must have private-sector commitments for 50% of the project cost. <br />Borrower must provide 10% or more of project financing. <br /> <br />Rate: Fixed at 3% <br /> <br />Term: Loans must mature within 5 years, but must be amortized over a <br />longer period of time. The balloon payment must not be longer than <br />the balloon payment of the participating bank if applicable. Loans <br />may be amortized up to the following limits: <br />20 years on real estate uses;