6.3. EDSR 12-21-2015 - Laserfiche WebLink

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Request for Action To Item Number Economic Development Authority 6.3 Agenda Section Meeting Date Prepared by General BusinessDecember 21, 2015Amanda Othoudt, EDD Item Description Reviewed by Satisfaction Agreement for Alliance Machine Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, a resolution and a certificate of forgiveness for Alliance Machine. Background/Discussion The EDA passed the Forgivable Loan guidelines in February of 2013. The program was designed to stimulate private sector investment, help spur new construction, create and retain employment opportunities, and promote the sale of city-owned property. At the time of application, Alliance Machine occupied a 24,000 square foot facility in the city-developed Northstar Business Park. They requested $200,000 to help fund an 18,000 square foot expansion. The expansion was designed to help bolster shipping and receiving capacity to build mass production capacity. As a result, the addition would result in the creation of 6 new jobs and induce $1.4 million in private investment. The City Council formally approved the request on April 15, 2013 with the project commencing on June 17, 2013. As part of the Loan Agreement, Alliance Machine was required to create six jobs with four of the six jobs awarded to low to moderate income individuals. Alliance Machine was also required to retain these jobs for a minimum of one year. Upon completion of all the goals and requirements set forth by the Forgivable Loan policy, the loan would be forgiven. Alliance Machine has since met these goals and has formally requested a satisfaction of the Loan Agreement by the EDA. Financial Impact N/A Attachments  Resolution  Certificate of Forgiveness  UCC Financing Statement  UCC Financing Statement Amendment  Alliance Machine Letter of Request  Forgivable Loan Program – Loan Agreement