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I <br />I <br />I <br /> <br /> I <br /> I <br /> I <br /> ! <br /> I <br /> <br /> I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />CASE <br /> <br />AGREEMENT FOR LOAN OF MINNESOTA INVESTMENT FUND; <br />VISION EASE LENS, INC. <br /> By: Cindy Sherman, Community Development Director <br /> <br />Background: <br /> <br />Vision Ease Lens, Inc. (Vision Ease) has constructed a new facility in the AEC Industrial Park. <br />Their grand opening was held in September of 1997. <br /> <br />Part of the financing package for'Vision Ease included a state loan of $200,000 from the <br />Minnesota Investment Fund. Funding through this program is directed from the State of <br />Minnesota through the City. The City and the Company enter into a loan agreement that spells <br />out the amount of the loan and the agreement for payback or forgiveness. <br /> <br />This agreement was recently completed and sent to us for signature. Generally, the agreement <br />calls for a loan from the State via the City for up to $200,000. The loan is for purchase of <br />equipment and is secured by an Injection Molding Press. The term of the loan is 5 years, <br />beginning June 1, 1997. The loan is to be forgiven if Vision Ease creates 40 new full-time <br />equivalent, permanent jobs by May 31, 1999. The new jobs are in addition to the 208 jobs that <br />existed at the time of the agreement to provide the loan. If the jobs are not created, then any <br />loaned funds are to be paid back. The employment levels are to be maintained until the <br />forgiveness date of June 1, 2002. The City and the State previously entered into an agreement <br />regarding the loan. The City has no obligation to re-pay the loan but we are responsible for <br />reporting to the State on employment status during the term of the loan. <br /> <br />Observations: <br /> <br />The City Council approved the grant application for these funds in January 1997 but there was <br />no follow-through on finalizing the actual loan agreement. No funds have been disbursed. <br /> <br />Recommendation: <br /> <br />Staff recommends City Council approve the Loan Agreement and authorize the Mayor and City <br />Administrator to execute the agreement. <br /> <br />Council Action: <br /> <br />Motion to approve the Agreement for Loan of Minnesota Investment Fund between the City of <br />Ramsey and Vision Ease Lens, Inc. and to authorize the Mayor and City Administrator to <br />execute the agreement. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Community Development Director <br />Finance Officer <br /> <br />CC: 12/15/98 <br /> <br /> <br />