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EOty1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 4.5 <br /> Agenda Section Meeting Date Prepared by <br /> Consent September 16, 2019 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Industrial Incentive Nlicroloan for Distinctive Iron, Cal Portner, City Administrator <br /> LLC Reviewed by <br /> Action Requested <br /> Approve,by motion, a resolution approving the Industrial Incentive 1Vlicroloan and authorize the <br /> execution of the microloan documents for Distinctive Iron,LLC <br /> Background/Discussion <br /> Distinctive Iron,LLC,located at 19128 Industrial Blvd NW, submitted an application for a$100,000 <br /> Industrial Incentive 1Vlicroloan. They are a woman-owned and operated company that designs, fabricates and <br /> installs structural and miscellaneous steel products. They propose to purchase property located at 15970 <br /> Jarvis Street NW,renovate the existing building and construct a 4,680 sf indoor paint facility. <br /> They would invest$1,529,480 to purchase,renovate and construct the new facility, and retain 14 FT and 2 <br /> PT jobs. They anticipate 5 more FT jobs over the next two years. The project will add approximately <br /> $135,000 in taxable value and increase taxes by about$4,944 annually. <br /> The Joint Finance Committee reviewed the application,financials and supporting information and <br /> determined the fundamental policy goals are met. They will be required to meet the requirements of the city's <br /> Business Subsidy Policy for the creation of new jobs, as well as a 5-year location requirement. <br /> The EDA acted on their request at their meeting earlier this evening. <br /> Financial Impact <br /> The applicant has an existing city loan with a balance of approximately$89,338.20. They request the loan <br /> be refinanced with the new request for a total of$189,338.20. The Committee recommended the request <br /> which will be amortized over 20 years at 3%with a 5-year balloon payment. The EDA will retain a 2nd <br /> position on all equipment and real estate. In addition, the loan will be secured with a personal guarantee. <br /> The Industrial Incentive 1Vlicroloan Fund account balance is $955,487.04. Fund account is $955,487.04. <br /> Funds in this account continue to revolve and payments are received regularly. <br /> Attachments <br /> ■ EDA Staff Report with Attachments (September 16,2019) <br /> ■ Resolution <br /> The Elk River Vision <br /> A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By <br /> service, and community engagement that encourages and inspires prosperity INAWRE1 <br />