7.1. EDSR 12-21-2020 - Laserfiche WebLink

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City of Elk �-- Request for Action River To Item Number Economic Development Authority= 7.1 Agenda Section Meeting Date Prepared by General Business December 21, 2020 Colleen Eddy, Economic Development Specialist Item Description Reviewed by Morrell Companies Microloan Extension Cal Portner, City Administrator Reviewed by Action Requested Approve,by motion,the resolution approving the amendment of loan terms for Scott Morrell,LLC,and authorization to execute the amended loan documents. Background/Discussion The City of Elk River provided a $200,000 jobs incentive microloan to Morrell Trucking in 2015. The company utilized the funds to aid in the acquisition and construction of an expansion to their existing facility. The company also received tax abatement assistance in the incentive package. The project was completed as proposed following award of both the microloan and tax abatement. The company met the job creation goals of 8 new jobs as required pursuant to the City's business subsidy policy and terms of the assistance agreement. The city received a request to extend the terms of the loan repayment by 2 years. Loan extensions are authorized under the terms of the policy, subject to EDA and City Council approval. To justify the extension,Mr. Morrell provided a letter from the Bank of Elk River stating the bank was unable to match the current terms. Staff requested additional details from the bank to better understand the request. The information was presented to the Joint Finance Committee at the November 24, 2020 meeting,where they recommended approval of the extension request. Financial Impact The request does not include additional funding from the city. If the extension is approved,it would provide additional interest at 2%into the fund until the loan is paid in full. The extension would also reduce available funds that could be used for other projects until the loan is paid in full. Mission/Policy/Goal To assist existing businesses with expansion and attract new businesses to the city whose local operations will expand the city's economy through job retention and creation and maintain/grow the city's tax base. The purpose of the Jobs Incentive Program is to encourage the creation of quality, high-paying jobs within the city. Attachments ■ November 24, 2020 Joint Finance Committee Packet ■ Resolution The Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional p D W E H E D D Y service, and community engagement that encourages and inspires prosperity ,g /` UR