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��i <br /> Eof <br /> lk — - Request for Action <br /> River <br /> To Item Number <br /> joint Finance Committee 4.1 <br /> Agenda Section Fimune <br /> eeting Date Prepared by <br /> General Business 26, 2018 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Review Jobs Incentive Microloan Application for Cal Portner, City Administrator <br /> Orluck Industries, Inc. Reviewed by <br /> Action Requested <br /> Consider and provide a recommendation regarding a Jobs Incentive Microloan application for Orluck <br /> Industries, Inc. <br /> The Finance Committee may recommend approval, approval with conditions, or denial of the request. <br /> Background/Discussion <br /> The city received an application from Orluck Industries, Inc. for a $200,000 Industrial Incentive <br /> Microloan. <br /> Orluck Industries, Inc. is an aerospace manufacturer of seating, cargo, sensors,propulsion, and engine <br /> parts. They also provide medical,locomotive, and manufacturing industry services. <br /> Orluck was awarded $15 million in long-term agreements. Their annual income is $3 million and <br /> engineering and prototype costs are $500,000. The requested loan is to fund the initial investment to <br /> bring the new parts into production. <br /> The company currently employs 54 people with a total payroll of$115,000 bi-weekly. <br /> Analysis <br /> Microloan Purpose:To assist existing business expansion and attract new businesses whose operations <br /> will expand the local economy through job retention/creation and maintain/grow the tax base. <br /> Orluck Industries, Inc. has committed to retaining 54 jobs and creating 70 new positions over the next tnroyears with an <br /> average mage of$24.65/hr. <br /> Loan Amount: Up to $200,000 of secondary financing not to exceed 20% of the project cost. <br /> The totalproject cost equals,$500,000. The applicant requested~$200,000 from the city representing 40% of the total <br /> project costs. The Initiative Foundation has committed to providing$200,000 in project financing representing 40% of the <br /> total project costs. The applicant indicated they mill provide,$100,000 as an equity contribution to the project representing <br /> the remaining 20%. <br /> Total secondary funding exceeds the threshold of 20% of the project costs per the polio <br /> The Elk River Vision <br /> A nrelcoming community nrith revolutionary and spirited resourcefulness, exceptional p o w E e E o s r <br /> service, and community engagement that encourages and inspires prosperity /` UR <br />