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<br />Request for Action <br />ToItem Number <br />Economic Development Authority6.2 <br />Agenda Section Meeting DatePrepared by <br /> <br />General BusinessOctober 17, 2016Amanda Othoudt, EDD <br />Item Description <br />Reviewed by <br />Forgivable Loan Application from Apex Cal Portner, City Administrator <br />Embroidery, Inc. <br />Reviewed by <br /> <br />Action Requested <br /> <br />Approve, by motion,a $200,000 forgivable loan for Apex Embroidery Design, Inc. <br />Background/Discussion <br />Apex Embroidery, Inc. is requesting a $200,000 forgivable loan and city tax abatement assistance of <br />$85,164 over 12 years and $77,590 over 10 years from the county for a total of $162,754. <br />The EDA Finance Committee reviewed the application and the applints financials at their September <br />29 meeting and recommended the EDA approve a $200,000 Forgivable <br />Apex Embroidery provides a variety of apparel decorating solutio <br />custom applique, custom rhinestone transfers digital transfers, embroidery programing, laser cuttin <br />transfer and more. They work with a variety of clients, and have produced <br />North Face, Tommy Hilfiger, Harley Davidson, Warner Brothers, and Abercrombie& Fitch. <br />In business since 1998, they were originally locatedin Hopkins, MNbefore leasing an Elk River spacein <br />2001. In 2008, Apex leased a 7,500 sq. ft. facility in Ramsey. Continuing to grow, they wish to build a new <br />facility in Elk River. <br />Apex plans to invest $306,000 in additional equipmentand pledge to grow their workforce by seven <br />employeesaveraging $17.71/hour within two years of project completion. They propose to relocate 18 <br />FT employees with an average wage of $15.57 per hour. <br />th <br />The project consists of a 13,312 sq.ft.facility on approximately 1.4 acres of land at 9775 158 Circle <br />NW. They will have the option to purchase and adjacent parcel fo <br />facility an additional 14,975 square feet. <br /> <br />The applicant must meet the following criteria for the Forgivable Loan Program: <br /> <br />Forgivable Loan Criteria <br />a)50% of project financing from another source <br />b)Maximum loan amount $200,000 <br />c)Minimum of one job paying equal or greater to $12.82/hr. created per $35,000 requested, <br />51% of which must be awarded to low and moderate income (LMI) employees <br />Template Updated 4/14 <br /> <br />