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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 /> 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 /> 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 /> 12. Microloan Programs <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 /> 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 /> Amount: Up to$200,000 of secondary financing not to exceed 20%of the <br /> total project cost. <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 /> Rate: Fixed at 3% <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; <br /> rorEeEo er <br /> Page 6 of 23 EDA&City Council Approved August 21,2017 AWR <br />