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<br /> <br />Item 5.2. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />cc: <br /> <br />Lori Johnson, Finance Director <br /> <br />FROM: <br /> <br />Heidi Steinmetz, Assistant Director of Economic Development <br /> <br />~0 <br /> <br />DATE: September 19,2005 <br /> <br />SUBJECT: Consider Micro Loan for Provo Enterprises, LLC (Alliance <br />Machine, Inc. Project) <br /> <br />Attachments <br />. Staff report to Finance Committee, .L~ugust 17, 2005 <br />. City of Elk River IYIicro Loan Fund Policy <br /> <br />Background <br />Pat and Bryan Pro'vo of .L~lliance I\1aclllne submitted a Industrial Incenti\Te Program rvIicro <br />Loan application in early .L~ugust in tlle amount of $100,000. TIle attaclled staff report to tlle <br />EDA Finance Cormnittee summarizes tlle application. .L~lliance :NIacIllne conducts ligllt, <br />precision machining of plastic and metal components for national and international clients in <br />tile aerospace, lnedical, defense and computer industries. TIle loan is proposed to be used <br />to\vards the constluction of an 18,000 SF manufacturing facility in Nortllstar Business Park. <br /> <br />Issue <br />Bodl tlle Finance COlwmttee and tlle ED.L~ l1Rve recommended appro\Tal of the loan. In <br />addition, the ED.L~ recommended that tlle City Council consider \vaiving tile public llearing <br />sclleduled for October 3, 2005 to accommodate an early October closing date for the <br />purcIlase of land, bank financing and City financing. <br /> <br />Action Requested <br /> <br />Staff requests that tlle City Council consider appro'val of t11e application from .L~lliance <br />tvfacIllne for a $100,000 Industrial Incenti'le Program Ivlicro Loan to PrO,TO Enterprises, LLC <br />per the recommendation of tlle Finance Committee and the EDA \vitll the follo\ving terms: <br />Rate FL"X:ed, 2 oints belo\v rime \y-ith a 3~/o floor <br />Term 15-year amortization, u to 5-year balloon a rment <br />Security Secured by 2nd position on the real estate, personal <br />uarantee from o\vners and souses <br />Parrici arion loan \y-ith TIle Bank of Elk Ri,Ter <br />9 ne\v full-time jobs in Elk Ri\Ter \y-ith a $15.00 <br />minimum 110ml T \va e <br /> <br />