Agenda - Economic Development Authority - 02/21/2001

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Eli~ble costs. Elisible costs ma), include the followins: Land improvements. Improvements to the land wkich are a portion of the project cost including but not Limited to: grading, new streets or street improvements, parking lots, utilities, and landscaping. 2. Purchase or renovation of building, Purchase and, if necessary, renovation of an e,-~isting industxial or commercial facility is permitted. 3. Purchase mackinery or equipment. Purchase of major i~z~si.ofmachinery and equipment independent of land and buildings. These items, must be defined to have a useful life of at least'5 years. ::::.:.: '-:,,~.i' :-:." 7~',~,:.' -. ~ ' ?. 4. Building construction. ConstruCJk%:nof a ~ew'.-huilding. azid/or a major addition ro an 5. LeasehO!d.impro~ements- R. evo~ingi'[oan~5.mds may be uzed for certain leasehold impr0vemenis'?r0vide~ the lease i;s' eq~:to or ~eater than the term of the loan and the C~ sec~-~s a' r:ien, or~-tAe:~rand or buiXding, and improvements. Inelizible ~;~tiv¢~es. Certain applicants, projects, activities, and cost are ineli~ble for revolving [oan:funds. A. Ineligible activities. Funds may not be used for retail businesses, nonprofit institutions, gambling organizations, lending or investment organizations, land Speculation, or any activity deemed illegal by federal, state, or local law or ordinance. Ineligible costs, lmeli~ble costs includes but is not limited to: management fees, financing cosU, franchise fees, debt repayment or consolidation, moving costs, refinancing, and operating costa or working capital. Loan Terms and Conditions The City. shall make available to eligible applicants direct Iow-interest loans f~r the purpose of encoura_m_ng economic development, downtown development, job creation and .job retention to meet business needs, and preservation of business districts in ~e City of Ramsey.