6.1 EDSR 05-16-2016 - Laserfiche WebLink

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tc of Request for Action River To Item Number Economic Development Authority 6.1 Agenda Section Meeting Date Prepared by General Business April 18,2016 Amanda Othoudt, EDD Item Description Reviewed by Satisfaction Agreement for Sportech, Inc. Cal Portner, City Administrator Reviewed by Action Requested Approve,by motion,a resolution and a certificate of forgiveness for Sportech, Inc. Background/Discussion The EDA approved the Forgivable Loan guidelines in February of 2013 to stimulate private sector investment, spur new construction, create and retain employment opportunities, and promote the sale of city-owned property. Sportech requested a$111,155.13 Forgivable Loan to help fund a 6,210 square foot Customer Innovation Center. The expansion was designed to create a separate space for product engineering and innovation. As part of the Loan Agreement, Sportech was required to create 4 full-time jobs with three of the four awarded to low to moderate income individuals. They were required to retain the jobs for a minimum of one year and upon completion of the goals and requirements the loan would be forgiven per policy. The Council approved the request on February 3,2014,with the project commencing on April 25,2014. On March 27, 2015,the EDA approved the release of the mortgage and entered into an escrow agreement with Sportech, Inc. as an alternative to the mortgage. The escrow agreement required Sportech to place $111,155.13 in escrow,held by a title company, to be returned on April 1, 2016, provided the job goals are met. Sportech has since met the goals and has formally requested a satisfaction of the Loan Agreement. Financial Impact N/A Attachments • Sportech Letter of Request • Resolution • Certificate of Forgiveness • Release of Escrow Agreement • UCC Termination • Forgivable Loan Agreement 11, 111111111 11 NATURE