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ilk Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority 6.3 <br /> Agenda Section Meeting Date Prepared by <br /> General Business December 16,2013 Jeremy Barnhart, Deputy Director, CODD and <br /> Brian Beeman, Director of Economic <br /> Development <br /> Item Description Reviewed by <br /> Sportech Forgivable Loan <br /> Reviewed by <br /> Action Requested <br /> Direct,by motion, staff to prepare a Loan Agreement for Sportech as recommended by the EDA <br /> Finance Committee,to be formally approved in January. <br /> Background/Discussion <br /> Sportech is a manufacturing company that produces aftermarket products for sporting vehicles. Sportech <br /> plans an expansion of a 6,210 sq ft upper level Customer Innovation Center that overlooks the production <br /> floor.Although no increase in building footprint, the added space will allow the engineering department to <br /> observe how their ideas are being implemented. Sportech is anticipating adding 6-8 design engineers during <br /> 2014-2015.A drawing of the proposed expansion is included in the packet.The total project cost is $263,088 <br /> and the project is expected to be completed by the second quarter of 2014. <br /> Based on the information submitted thus far,it appears the plan meets the business subsidy criteria, however, <br /> some additional information has been requested to complete the analysis. At this point, staff and the Finance <br /> Committee are comfortable moving forward with the development of an agreement,with that agreement and <br /> the full application materials being reviewed in January by both the EDA and the City Council. <br /> The EDA is under some pressure from the state to utilize the remaining balance of state DEED funds or <br /> return it to the State by the end of the year;that amount is $111,155.13. Sportech represents the only project <br /> received that would be eligible. <br /> A representative from Springsted, the city's financial consultant and a representative from Sportech will be <br /> present to explain the project. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> • Sportech Forgivable Loan Application (will be sent under cover by email due to confidentiality) <br /> • Comment letter from Springsted dated December 11,2013 <br /> P / ■ ErE , 11 <br /> NAME <br />