BY COUNCILOR STAUBER:
RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to the MIF agreement with the state of Minnesota increasing by two years the time within which the Northstar Machine & Tool, Inc., d.b.a. Northstar Aerospace (Northstar) must pay back its loan obligation.
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a loan agreement, note, and security agreement modification agreement substantially in the form of that on file in the office of the city clerk as Public Document No. _______________ with Northstar increasing by two years the time within which Northstar must pay back its loan obligation.
STATEMENT OF PURPOSE: The city applied to the Minnesota department of trade and economic development for a MIF grant in order to provide Northstar funds to purchase new facility expansion equipment. In 2002 the city received a grant in the amount of $150,000 and made a MIF loan of the same amount to Northstar. In exchange, Northstar agreed to create 30 new full-time equivalents. Northstar has grown from 41 employees in 2002 to 102 today paying an average hourly wage of $19.14, including benefits. Northstar’s five-year employment projections show about 300 employees by 2012.
In anticipation of its current and future growth, Northstar is asking to extend the loan repayments over an additional two years. The loan extension will help support the projected growth. This resolution extends for a two year period, until October 2009, the time within which said loan must be repaid.