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--fir —� <br /> ity of � MEMORANDUM <br /> AkRiverTO,\, - • <br /> Economic Development Authority <br /> FROM: Marc Nevinski, Acting Director of <br /> liK/ Economic Development <br /> DATE: March 13, 2000 <br /> SUBJECT: Meeting Agenda <br /> 5. Micro Loan Application—Mark Rothfork, Ultra Image Powder Coating <br /> On March 1, 2000 the Finance Committee, after reviewing his application, <br /> unanimously recommended to award Mark Rothfork of Ultra Image Powder <br /> Coating, a $50,000 Supplemental Micro Loan. The loan will be used for an <br /> expansion to Mr. Rothfork's existing building in the McChesney Industrial <br /> Park and will house an automated painting conveyor system. The loan is <br /> proposed to be structured as a participation loan with First National Bank of <br /> Elk River. Mr. Rothfork will be available to discuss his proposed project and <br /> III <br /> answer questions. Attached is staffs memo to the Finance Committee and the <br /> Micro Loan application. <br /> Action Requested <br /> Consider approval of a $50,000 Supplemental Micro Loan to Ultra Image <br /> Powder Coating. <br /> 6. Public Hearing— Consider Modifications to the Tax Increment <br /> Financing Policy <br /> The new state statues regarding business subsidies mandates that cities <br /> modify their current incentive and subsidy policies to include provisions <br /> stipulated by the business subsidy law. The law also requires that the city <br /> hold a public hearing on such modified policies before providing subsidies. <br /> The primary modification to the tax increment financing policy includes the <br /> addition of a ratings scale for various project applicants. Such a ratings scale <br /> will enable staff, as well as the HRA, EDA, and City Council, to better <br /> analyze a given project for its eligibility to utilize TIF. Staff presents this <br /> ratings scale under the assumption that every project that requests TIF may <br /> not necessarily qualify for it under these guidelines. For applicants who do <br /> not qualify based upon the rating method, tax abatement may be a potential <br /> financing alternative. <br /> 0 <br /> 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612)441-7425 <br />