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VII-B & Vlll-C-2 <br /> 4 <br /> March 1, 2000 <br /> TO: The Honorable Mayor& Council <br /> FR: John Grossman, Industrial Park <br /> RE: Public hearing and action on application to Minnesota Investment Fund <br /> Mr. Motilall, President of Diversified Manufacturing has proposed to build an <br /> 82,000 sq.ft. manufacturing building at a cost of approximately $2,000,000 in the <br /> Hastings Industrial Park. He asked the City to provide the land under the land <br /> credit program, and to apply to the Minnesota Investment Fund (MIF) for a loan on <br /> DMC's behalf. Council gave the proposal preliminary concept approval on <br /> December 20, 1999. <br /> The purpose of the MIF is to provide low interest loans for business expansion in <br /> order to create new jobs - industrial, manufacturing and technology. The <br /> Department of Trade and Economic Development (DTED) provides Minnesota <br /> Investment Funds to the City; the City in turn lends them to the business. The <br /> MIF allows the City to retain the first $100,000 and interest of the Diversified loan <br /> payments. <br /> Leonard P. Kirscht has been hired by the City to prepare the application and to <br /> review Diversified Manufacturing Corporation's ability to qualify for the loan. <br /> Mr. Kirscht will present his findings to the Council. <br /> Diversified Manufacturing Corporation asks that the City apply to the state for <br /> $199,000 for the construction of their new building in the Industrial Park and <br /> $301,000 for the purchase of new equipment. The terms of the loan will be <br /> $500,000 at 3% for 20 years. <br /> Recommendations: <br /> A. Motion to approve the attached resolution authorizing the City to make the <br /> application to DTED for the Minnesota Investment Fund. This includes approval <br /> of the Project Compliance form attached to the resolution, a required part of the <br /> application. <br />