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Request for Action <br /> <br /> <br />To Item Number <br />Economic Development Authority 5.1 <br />Agenda Section Meeting Date Prepared by <br />General Business July 16, 2018 Amanda Othoudt, EDD <br />Item Description Reviewed by <br />Jobs Incentive Microloan Application for Orluck Cal Portner, City Administrator <br />Industries, Inc. <br />Reviewed by <br /> <br /> <br />Action Requested <br />1. Open public hearing to consider comments on the proposed microloan application for Orluck <br />Industries, Inc. in the amount of $200,000. <br />2. Following the public hearing, the EDA is asked to consider adoption of the attached resolution <br />approving the Jobs Incentive Microloan. The EDA may recommend approval, approval with <br />conditions, or denial of the request to the City Council. <br /> <br />The City Council will review the recommendations and any comments generated from the public <br />hearing and formally act on the request at their regular meeting later this evening. <br /> <br />Background/Discussion <br />The city received an application from Orluck Industries, Inc. for a $200,000 Jobs Incentive Microloan. <br /> <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 /> <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. The company currently employs 54 people with a total payroll of <br />$115,000 bi-weekly. <br /> <br />The Joint Finance Committee reviewed the application, financials and other supporting information for <br />the loan request and has determined that the applicant met the fundamental goals of the policy and <br />recommended approval of the loan due to Orluck committing to creation of 10 new jobs over the next <br />two years and retaining 54 existing jobs as a result of the project. Orluck will be required to meet the <br />requirements of the city’s Business Subsidy Policy for the creation of new jobs, as well as a 5-year <br />location requirement. <br /> <br />A public hearing must be held to invite comments for any business subsidy in an amount greater than <br />$150,000. <br /> <br /> <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />