3.1 EDA MIN 04-08-2013 MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 8, 2013
Members Present: President Tveite,Commissioners Burandt,Dwyer,Motin,Westgaard,and
Wilson
Members Absent: Commissioner Provo
Staff Present: Community Operations and Development Director Suzanne Fischer,
Assistant Director of Economic Development Clay Wilfahrt,and Executive
Secretary/Deputy City Clerk Jessica Miller
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 5:30 p.m. by President Tveite.
2. Consider Agenda
MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY
COMMISSIONER WILSON TO APPROVE THE APRIL 8,2013,EDA AGENDA.
MOTION CARRIED 6-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MARCH 11,2013,MINUTES.
3.2. CHECK REGISTER AS OUTLINED IN THE STAFF REPORT.
3.3. BALANCE SHEET AS OUTLINED IN THE STAFF REPORT.
MOTION CARRIED 6-0.
4. Open Forum
No one was present for open forum.
5. Consider Microloan Application from Blue Egg Bakery
Mr. Wilfahrt presented his staff report.
Commissioner Wilson questioned what the loan will be used for.
Bruce DeWitt,applicant stated that the loan will be used for an expansion project into 707
Main Street where they will offer cakes,fudge,and candy. He stated some funding will be
used to make the building compliant with MN Department of Health and Minnesota
Department of Agriculture standards and for façade improvements inside and out.
Economic Development Authority Minutes Page 2
April 8,2013
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER BURANDT TO APPROVE A DOWNTOWN
REVITALIZATION MICROLOAN FOR BLUE EGG MARKET WITH THE
FOLLOWING TERMS AND CONDITIONS:
• $74,500 AT 2% INTEREST,10-YEAR TERM,10-YEAR
AMORITIZATION.
• EDA TO SECURE PERSONAL GUARANTEE.
• EDA TO OBTAIN SECOND LIEN POSITION ON 707 MAIN STREET
AND 713 MAIN STREET AND FIRST POSITION ON ALL
EQUIPMENT.
MOTION CARRIED 6-0.
6. Consider Forgivable Loan Application from Alliance Machine
Mr.Wilfahrt presented his staff report.
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER MOTIN TO RECOMMEND APPROVAL OF THE
FORGIVABLE LOAN APPLICATION IN THE AMOUNT OF$200,000 FOR
ALLIANCE MACHINE TO THE CITY COUNCIL. MOTION CARRIED 6-0.
7. Consider Forgivable Loan Application from Orluck Industries
Mr.Wilfahrt presented his staff report.
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER WESTGAARD TO RECOMMEND APPROVAL OF THE
FORGIVABLE LOAN APPLICATION.IN THE AMOUNT OF$200,000 FOR
ORLUCK INDUSTRIES TO THE CITY COUNCIL. MOTION CARRIED 6-0.
8. Consider Forgivable Loan Application from Preferred Powder Coating
Mr.Wilfahrt presented his staff report.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER WILSON TO RECOMMEND APPROVAL OF THE
FORGIVABLE LOAN APPLICATION IN THE AMOUNT OF $200,000 FOR
PREFERRED POWDER COATING TO THE CITY COUNCIL. MOTION
CARRIED 6-0.
9. Authorize Write-off of Nicole's Salon Microloan
Mr.Wilfahrt presented his staff report.
MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY
COMMISSIONER DWYER TO ADOPT RESOLUTION 13-03 AUTHORIZING
THE WRITE-OFF OF THE OUTSTANDING LOAN BALANCE OF$6,894.28
OWED BY THE FORMER NICOLE'S FINISHING TOUCH SALON TO THE
CITY OF ELK RIVER'S DOWNTOWN BUSINESS REVITALIZATION MICRO
LOAN FUND.MOTION CARRIED 6-0.
Economic Development Authority Minutes Page 3
April 8,2013
President Tveite stated in the future he would like to see write-offs come before the EDA
sooner if there is no way to collect the money.
10. Freeport Water Tower—Powered by Nature Logo Funding Request
Mr.Wilfahrt presented his staff report. He added that funding is available in the EDA
Marketing Budget.
Commissioner Westgaard stated that the city logo typically appears larger than the Powered
by Nature logo and questioned if size has been discussed. It was noted that the city logo is
the primary logo and the Powered by Nature logo should appear subordinate. Mr.Wilfahrt
indicated he will review the brand plan and make sure the specifications of the plan are
followed.
President Tveite questioned why the city is not involved in partnering with the Elk River
Municipal Utilities (ERMU) and the EDA on this project. Mr.Wilfahrt indicated that the
EDA has been the leader for the branding and there is money in the EDA budget for these
type of branding initiatives.
Consensus of the EDA was to move forward with the partnership between the EDA and
ERMU to paint the Powered by Nature brand on the Freeport water tower.
11. Impact of City Financial Programs
Mr.Wilfahrt presented his staff report.
12. Economic Development Director Hire (verbal)
Ms. Fischer indicated that the interview committee has identified Brian Beeman as the
individual they would like to hire for this position. She stated that Mr. Beeman was the city
administrator for five years with the City of Melrose and has strong negotiation and business
expansion experience.
Commissioner Dwyer questioned the current chain of command as it relates to this position.
Ms. Fisher explained that the economic development director will report to the community
operations and development deputy director. Commissioner Dwyer expressed concerns with
this position's placement in the organizational chart.
Commissioner Motin explained that the addition of a community operations and
development deputy director only adds one position in the organizational chart.He added
that the previous economic development director only reported directly to the city
administrator in the absence of a community development director and prior to Ms. Fischer
being hired as the community operations and development director.
Commissioner Dwyer indicated he still has concerns but is open to seeing how it works.
13. Adjournment
There being no other business,President Tveite adjourned the meeting of the Elk River
Economic Development Authority at 6:06 p.m.
Economic Development Authority Minutes Page 4
April 8,2013
Minutes prepared by Jessica Miller.
Dan Tveite,President
Tina Allard,City Clerk