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<br /> <br />Request for Action <br />ToItem Numbe <br /> <br />r <br /> <br />Economic Development Authority 6.1 <br />Agenda SectionMeeting DatePrepared by <br /> <br /> <br />General BusinessApril 18, 2016Amanda Othoudt, EDD <br />Item DescriptionReviewed by <br /> <br />Die Concepts, Inc. Jobs Incentive Microloan Cal Portner, City Administrator <br />Reviewed by <br />Program Financial Application <br /> <br />Action Requested <br />Provide recommendation to the City Council on the following Jobs Incentive Microloan application for <br />Die Concepts, Inc. <br />Background/Discussion <br /> <br />The city received an application from Die Concepts, Inc. for a $200,000 Jobs Incentive Microloan. On <br />March 29, 2016, the EDA Finance Committee reviewed the jobs ince <br />recommended the EDA approve an $185,200 loan not to exceed 20% of the total project costs. <br />The city also received a HRA Blighted Properties Commercial/Industrial Forgivable Loan for $75,000 <br />which was approved by the HRA on April 4, 2016. <br />Die Concepts has leased space in an 11,000 sf manufacturing plan <br />intends to relocate their operation to Elk River. They design and build progressive metal stamping <br />tooling for a variety of customers in the US, Mexico, and Ireland including Medronic, Boston Scientific, <br />Toro, Graco, and 3M. They have executed a purchase agreement on the property located at 18485 Twin <br />Lakes Road NW, contingent upon receiving city financial assistance. The company has plans to <br />completely renovate the former 21,000 sf MN FAB building. <br /> <br />The Jobs Incentive Microloan Program goal is to encourage the growth of new jobs and the retention of <br />existing jobs. The company currently employs 12 people with an average hourly wage of $26.50/hr., has <br />outgrown their leased space in Ramsey, and intends to relocate t <br />River. <br />Following the EDA meeting this evening, the City Council will ho <br />subsidies, invite public comment and take final action on the re <br /> <br />Financial Impact <br />The loan funds could be funded from the City Microloan Fund acco <br />$767,636.73. <br />Attachments <br /> <br />Microloan Application (March 7, 2016) <br />Springsted Analysis (March 24, 2016) <br /> <br />