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<br />rtl ~( <br />( II <br />.Yl~' <br />E h River <br /> <br />ITEM 4.5. <br /> <br /> <br />TO: <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL <br />WILLIAM RUBIN, ED COORDINATO~v.L- <br /> <br />DATE: OCTOBER 1, 1993 <br /> <br />SUBJECT: RESOLUTION OF SUPPORT FOR A LOAN <br />REQUEST TO THE CENTRAL MINNESOTA <br />INITIATIVE FUND <br /> <br />INTRODUCTION <br /> <br />At its meeting on October 4, 1993, the Elk River City Council <br />will be asked to adopt a resolution of support for a loan <br />request by BRUMAR, 11157 205th Avenue NW, to the Central <br />Minnesota Initiative Fund (CMIF). A draft of the resolution is <br />attached to this memo. <br /> <br />BACKGROUND <br /> <br />e <br /> <br />BRUMAR is a metal fabricator and preclslon machining company <br />that is owned by Mr. Mark Schulte. The company is currently <br />located in a leased facility on property owned by Mr. Wes <br />Hunt. The company is experiencing additional business growth <br />which has necessitated the purchase of more equipment such as <br />computer numerically controlled (CNC) mills and lathes. The <br />total cost of this equipment is estimated at $130,000 to <br />$140,000. <br /> <br />At a recent meeting, attended by Mr. Schulte, his <br />accountant/business advisor, and Ms. Jeanne Endahl from CMIF, <br />and the writer of this memo, financing options were identified <br />and discussed. It is quite likely that BRUMAR's primary lender <br />will finance approximately one-half of the equipment <br />purchases. CMIF will likely consider funding the balance. <br />This application will be considered by CMIF during the second <br />week of November, 1993. <br /> <br />CMIF is a McKnight Foundation-funded agency that serves the <br />fourteen-county mid state area. It provides a.) grants to <br />local units of government and other human service <br />organization s for capacity building projects; and b.) <br />supplemental business loans to leverage primary financing in <br />support of projects which will help diversify the mid state <br />employment base. A requirement of the CMIF application is a <br />resolution of support from the local unit of government. <br /> <br />e <br /> <br />Staff acknowledges that BRUMAR's current location is <br />inconsistent with the long-term land use plans for 205th Avenue <br />NW. That is, the industrial user is operating in an area that <br />is zoned Agricultural. However, BRUMAR's expansion here is <br />internal and no expansion of the building is planned at this <br />time. In addition, a physical expansion of the existing <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />