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Elk REQUEST FOR ACTION <br /> River <br /> To ITEM NUMBER <br /> Economic Development Authority 6. <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> February 11, 2013 Clay Wilfahrt,Assistant Director of <br /> Economic Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Forgivable Loan Program policy and application Suzanne Fischer, Community <br /> Operations and Development <br /> Director <br /> REVIEWED BY <br /> Cal Portner, City Administrator <br /> ACTION REQUESTED <br /> Approve the Forgivable Loan Program policy and application. <br /> BACKGROUND/DISCUSSION <br /> In order to leverage the $703,679 in the city's Department of Transportation and Economic <br /> Development (DTED) fund, staff has developed the attached Forgivable Loan Policy and Application. <br /> The attached policy and application were developed by staff and the subcommittee appointed by the <br /> Economic Development Authority for that purpose in September of 2012. The Department of <br /> Employment and Economic Development, City Attorney, and the Finance Committee have all reviewed <br /> the policy and application. <br /> The program targets manufacturing,industrial, and high-tech businesses who are expanding,purchasing <br /> new equipment or constructing new. It also emphasizes the sale of city-owned property. The first <br /> application period will be February 15, 2013 to March 15, 2013. Following the first application period, <br /> applications we be accepted on an ongoing basis and reviewed monthly. <br /> The forgivable loan program must adhere to original federal guidelines, and scoring of the applications is <br /> based upon the following criteria: <br /> • Create new jobs which meet the federal low to moderate income (LMI) guidelines and wage goals <br /> (wages and benefits must equal at least$12.19/hr.). At least 51% of jobs must be made <br /> available or held by LMI person as outlined on page 17 of this application. <br /> • Result in a tax base increase. <br /> • Demonstrate that the investment of public dollars induces private funds. <br /> • Provide higher community wage levels or add value to current workforce skills. <br /> • The project results in the sale and development of city-owned property. <br /> Other requirements of the loan include: <br /> • Businesses receiving a principal amount greater than $75,000 must comply with subsidy law <br /> reporting requirements. <br /> • Business must be an industrial, manufacturing, or technology-based industry. <br /> tI / F141 I <br />