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05-12-2003 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MAY 12, 2003 Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuestex, Tveite and biotin Members Absent: None Staff Present: Director of Economic Development Catherine Mehehch, Economic Development Assistant Heidi Hall, City Administrator Pat Klaexs, and City Clerk Sandia Peine Call Meeting To Order Pursuant to due call and nonce thereof, the meeting of the Economic Development Authority was called to order at 5:30 p.m. by President Gongoll. 2. Consider 5/12/03 Agenda COMMISSIONER MOTIN MOVED TO APPROVE THE MAY 12, 2003, EDA AGENDA. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 3. Consider Consent Agenda COMMISSIONER DWYER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. APRIL 14, 2003 EDA MINUTES 3.2. CHECK REGISTER 3.3. REVENUE/EXPENDITURE REPORT 3.4. BALANCE SHEET COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. Ooen Milce No one appeared for open mike. Economic Development Authority Minutes Page 2 May 12, 2003 5. Strategic Industrial Marketing Activities Update Economic Development Assistant Heidi Hall presented an update on the strategic industrial marketing activities. Commissioner Kuestex and President Gongoll gave an update on the business retention meeting they held with Jim Barthel of Elk River Machine. 5.1. Consider Authorizing a ~'I2tching Commitment fox Proposed Plrtnershin Progxlm with MN Technology, Inc. Ms. Hall indicated that the EDA nuthonzed staff to submit a preliminary application to the Initiative Foundation for a matching giant request of up to $5,000 for a pilot program between the city and MN Technology Inc. The program is designed to recruit and retain strong manufacturing companies within the city by providing them with technical training services. She indicated that staff is requesting approval to submit the formal grant application and for the EDA's formal commitment of $5,000 for the 2-year program. Discussion was held regarding how the funds would be used and whether there would be a cap on the grant application requests. bls. Hall indicated that the funds are used on a first come, first serve basis. Director of Econotnic Development Catherine Mehelich indicated that staff is in the process of formulating the application criteria and process and is looking fox EDA comments in this regard. Following discussion, it was the EDA consensus to set a cap at ,$2,000 per request. Commissioner Tveite suggested that the companies requesting the grant provide some type of contribution to the program. It was recommended that 25% contribution be required of the applicant. COMMISSION DWYER MOVED TO COMMIT UP TO $5,000 OF THE EDA'S ADVERTISING/MARKETING BUDGET OVER ATWO-YEAR PERIOD AS A MATCH TO THE INITIATIVE FOUNDATION, AND THAT EACH BUSINESS REQUEST IS ALLOWED A MAXIMUM OF $2,000 WHICH IS PAID 50/50 BETWEEN THE EDA AND THE INITIATIVE FOUNDATION, AND ANY REQUEST MUST HAVE A 25% CONTRIBUTION FROM THE BUSINESS. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0. It was the consensus that the business grant application requests go through staff for review and approval. 5.2. Industrial Park Development Options Update Ms. i~fehelich indicated that the marketing committee is requesting aone-month extension ro review options and prepare a recommended industrial development strategy fox the EDA. Economic Development Authority Minutes Page 3 May 12, 2003 It was the consensus of the EDA to allow the one-month extension. 5.3. Consider Appointing Mark Uxistl to the EDA Mlrketin Committee Nts. Hall indicated that Mark Urista of Coldwell Banker Vision has indicated interest in becoming a member of the EDA Marketing Committee. Commissioner biotin disclosed that Mark and Debbie Uxista axe his clients. CHAIR GONGOLL MOVED TO APPOINT MARK URISTA TO THE EDA MARKETING COMMITTEE. COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION CARRIED 7-0 6. Sportech Expansion Project Upd2te Ms. Mehelich indicated that [he giant request of $200,000 from the MN Department of Trade and Economic Development for the Sportech expansion project has been approved. She indicated that staff is working with DTED and Sportech on the appropriate giant and loan agreements. Ms. Mehelich further noted that a recognition event is being planned for the Sportech expansion on May 28. President Gongoll announced that Sportech was awarded as Manufacturing Business of the Year by the Chamber of Commerce. Consider Micro Loan Extension - b1&A Investments L.L.C. Ms. Mehelich indicated that M & A Investments, LLC was given a $50,000 Micto Loan in March 2000 with a balloon payment of $44,227.21 due on March 15, 2003. Ms. Mehelich indicated that M & A Investments has requested a 2-year extension of the loan. She noted that the Finance Committee has reviewed this request and is recommending approval with specific conditions. COMMISSIONER MOTIN MOVED TO APPROVE A 2-YEAR EXTENSION OF THE MICRO LOAN TO M&A INVESTMENTS, L.L.C. WITH THE FOLLOWING CONDITIONS: 1. M&A INVESTMENTS, L.L.C. TO GUARANTEE, ON BEHALF OF THE TENANTS, THAT THE ORIGINAL MICRO LOAN JOB CREATION GOALS OF 8 FULL-TIME EQUIVALENT POSITIONS AT A MINIMUM WAGE OF $9.00 PER HOUR, EXCLUSIVE OF BENEFITS, ARE MAINTAINED OVER THE 2- YEAR EXTENSION PERIOD. JOB AND WAGE STATUS WOULD BE CERTIFIED ANNUALLY UPON REQUEST BY THE ECONOMIC DEVELOPMENT DEPARTMENT STAFF. Economic Development Authority Minutes Page 4 May 12, 2003 ----------------------------------------------------------- 2. INTEREST RATE OF 7.75% BE CONTINUED AND EDA STAFF TO CONSIDER AN INCREASE ADJUSTMENT TO THE MONTHLY REPAYMENT SCHEDULE. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Other Business President Gongoll congratulated die Bread of Life Bookstore fox receiving the Retail Business of the Year award by the Chamber of Commerce. Ms. Mehelich noted that Heidi Hall recently completed the National Development Council training and certification for Economic Development Finance Professional. The certification included training and tests on business credit analysis, real estate finance, and deal structuring. The EDA members congratulated Ms. Hall on hex achievement. 9. Adjournment There being no other business, PRESIDENT GONGOLL ADJOURNED THE MEETING. The meethig of the Elk River Economic Development Authority adjourned at 6:12 p.m. e~~-.-.sl'~e.r Q ~~P Sandia Peine City Clerk