8.1. SR 06-01-2015 - Laserfiche WebLink

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�j Elk = - Request for Action River To Item Number Mayor and City Council 8.1 Agenda Section Meeting Date Prepared by General Business June 1, 2015 Amanda Othoudt, EDD Item Description Reviewed by HRA Blighted Properties Forgivable Loan Program Cal Portner, City Administrator Reviewed by Action Requested Approve, my motion, the HRA Blighted Properties Forgivable Loan Policy and Application. Background/Discussion Staff crafted the attached Blighted Properties Forgivable Loan Policy and Application at the direction of the HRA at the April 6 meeting. The city attorney, Springsted, and the Finance Department have reviewed the policy and application. The policy addresses commercial, industrial, and retail properties as identified by a licensed structural engineer as structurally substandard according to Minnesota Statutes Section 117.025, subdivision 7. Properties can qualify for up to $200,000 in the form of a forgivable loan. The purpose of the program is to reinvest in blighted properties to preserve or enhance local tax base and create permanent, private- sector jobs to stimulate above-average economic growth. It is intended to leverage private investment to ensure economic renewal and competitiveness, improve employment and economic opportunity for citizens, create a reasonable standard of living, and stimulation of productivity growth through improved commercial, retail, manufacturing, or new technologies. Applications will be accepted on an ongoing basis and reviewed monthly. The forgivable loan program is based upon the following criteria: 1. Creation of new jobs shall be the greater of$15 per hour or 150% of state or federal minimum wage,whichever is greater, exclusive of benefits required by law; 2. The project can demonstrate that investment of public dollars induces private funds; 3. The project results in the sale and/or redevelopment of properties deemed structurally substandard; 4. Increase in tax base; 5. The project provides higher wage levels to the community or will add value to current workforce skills; 6. Whether assistance is necessary to retain existing business; and 7. Whether assistance is necessary to attract out-of-state business. A Blighted Properties Forgivable Loan must meet Clauses 1.), 2.), and 3.). A loan cannot be made solely on findings 1.), 2.), and 3.). A finding must be made that at least two of the remaining conditions also exist. p 0 W I R E a 0 NA UREJ