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iOt of <br /> lk 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 July 20, 2015 Amanda Othoudt, EDD <br /> Item Description Reviewed by <br /> Morrell Companies Jobs Incentive Microloan Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Approve,by motion, and provide recommendation to the City Council on the following Scott Morrell, <br /> LLC/Morrell Oversize (Morrell Companies)Jobs Incentive Microloan application. <br /> Background/Discussion <br /> The city received an application for a$200,000 Jobs Incentive Microloan Program from Scott Morrell, <br /> LLC/Morrell Oversize (Morrell Companies). <br /> The Finance Committee reviewed and recommended the EDA approve Morrell Companies application <br /> for a Jobs Incentive Microloan. <br /> The goal of the Jobs Incentive Microloan program is to encourage the growth of new jobs and the <br /> retention of existing jobs. The company currently employs 105 people with an average hourly wage of <br /> $23 per hour. Of the 105 employees, 13 FTE are employed by Morrell Oversize with an average hourly <br /> wage of$27.94/hour. Morrell Companies proposes to hire 8 FTE with the expansion. The average <br /> hourly wages of the retained jobs and the new jobs exceed the minimum requirements of at least <br /> $15/hour. <br /> Analysis <br /> The attached memo from Springsted summarizes the analysis completed to date. Mikaela Huot will be at <br /> the meeting to verbally support the analysis. <br /> Staff's analysis is shown in bold font, alongside the applied policy. <br /> Purpose: To assist existing businesses with expansion and attract new businesses to the city <br /> whose local operations will expand the city's economy through job retention and <br /> creation and maintain/grow the city's tax base. The purpose of the Jobs Incentive <br /> Program is to encourage the creation of quality,high-paying jobs within the city. <br /> Morrell Trucking will bring 8 FTE jobs to Elk River within 2 years,paying <br /> between$16-$20 per hour, exclusive of benefits. <br /> Amount: Up to $200,000 of secondary financing not to exceed 20% of the project cost. <br /> 1-1 ■ EIfI IT <br /> NATURE <br />