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07-15-2013 EDA MIN City of IIIElk „'� Meeting of the Elk River River Economic Development Authority Held at the Elk River City Hall Monday,July 15, 2013 Members Present: Commissioners Dwyer,Westgaard,Provo,Tveite,Wilson, and Motin Members Absent: Commissioner Burandt Staff Present: Community Operations and Development Deputy Director Jeremy Barnhart, Economic Development Director Brian Beeman,Assistant Economic Development Director Clay Wilfahrt, and City Clerk Tina Allard I. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 5:30 p.m. by Chair Tveite. 2. Consider 07/15/2013 Agenda Moved by Commissioner Motin and seconded by Commissioner Dwyer to approve the July 15,2013, agenda. Motion carried 6-0. 3. Consider Consent Agenda Moved by Commissioner Wilson and seconded by Commissioner Westgaard to approve the following consent agenda: 3.1 June 17,2013, EDA Minutes. 3.2 Check register as outlined in the staff report. 3.3 Balance Sheet as outlined in the staff report. 3.4 Revenue/Expenditures report as outlined in the staff report. Motion carried 6-0. 4. Open Forum No one appeared for Open Forum. 5.1 Consider Industrial Incentive Microloan for Preferred Powder Coating Mr. Wilfahrt presented the staff report. III Economic Development Authority Minutes Page 2 July 15,2013 Moved by Commissioner Motin and seconded by Commissioner Dwyer to • approve the Industrial Incentive Microloan Application for Preferred Powder Coating, LLC. Motion carried 6-0. 6. Amend EDA Bylaws to be Consistent with City Financial Policy Mr. Beeman presented the staff report and noted the EDA and HRA have their own policies different from city policy. Commissioner Westgaard asked for clarification and on whether purchases under $50,000 would be approved by staff. Mr. Beeman stated at least one commissioner would be required to sign off on approving purchases for the$5,000 to $24,999 category and the$25,000 and$49,000 category (from page 16 of the Financial Management Policies document). Mr. Provo asked for clarification on the purchase levels that are $50,000 and higher as the city policy states Council approval is required. Mr. Beeman confirmed it would actually be the EDA and that the city policy would be updated during its next review. Chair Tveite asked staff to update the EDA at subsequent meetings when purchases are signed off on by staff and a commissioner. Moved by Commissioner Westgaard and seconded by Commissioner Dwyer to adopt resolution 13-5 amending the bylaws of the Authority with respect to the purchasing policies of the authority. Motion carried 6-0. 7. Discuss Creation of Fourth Microloan Mr. Beeman presented the staff report. He asked the EDA what they would like to see in a new microloan program. Commissioner Motin stated the Finance Committee had a discussion about expanding the current three programs and he questioned if the EDA has to create a fourth program or if it could expand on the existing three programs. Mr. Beeman stated DEED requires the city to use these funds separately from existing programs. It was noted a separate program could be created but be based similar to the existing • programs. P O ■ E t E ® all Economic Development Authority Minutes Page 3 July 15,2013 • Commissioner Provo suggested a loan policy that would be open to more types of businesses. Commissioner Wilson concurred and has gotten comments from area businesses that past programs were too restricted. He suggested opening it up to non-profits, service related businesses, or larger type businesses. Commissioner Motin disagreed and stated he didn't like the first program. He stated if the Authority does a forgivable loan he would like to see it staggered and have more requirements over a longer time period. He suggested a portion of the loan be forgiven each year. Commissioner Provo stated the program would create an additional tax base but his focus would be to make it available to any small business that has a plan to expand regardless of their product. He cited the Briggs item that recently came to the EDA because they are bringing in more jobs than high tech industrial businesses. He stated it would be nice to be able to give them a parking lot. Commissioner Westgaard stated he liked idea of offering this opportunity to more types of businesses but he would like to see it as a revolving loan program rather than for a one-time use. He stated he liked the potential of having an ongoing program. IliCommissioner Dwyer concurred with Commissioner Westgaard although he stated he would like to wait and see what the Finance Committee creates that would be unique for this fund. He further stated large amounts of money have been available for past microloans but there hasn't been a lot of demand. Commissioner Provo stated the past loans have been good for gap financing but it is not a good tool because the interest rates aren't competitive and there is a lot of red tape. Chair Tveite noted the EDA always struggles with making good use of microloan polices. He stated he is open to make this policy as user friendly and flexible as possible but further noted there is no easy answer. Commissioner Provo suggested reviewing policies from other communities for new, exciting ideas. 8. Set Date for 2014 EDA Budget Workshop Before August 19 Regular Meeting Mr. Beeman presented the staff report. Consensus of the Commission was to set a special EDA meeting to July 29 at 5:30 IPp.m. to discuss 2014 EDA budget. P-o / EaE0 BY NATURE Economic Development Authority Minutes Page 4 July 15,2013 9. Other Information Items: • Mr. Wilfahrt and Mr. Beeman presented the staff report for the following items: • PSB Land Request Update • PPC Update • GIS Web Application • Pompeii Pizzeria Microloan Satisfaction of Mortgage—Mr. Beeman noted that Pompeii paid off their loan and the funds are now available for other projects. 10. Adjournment There being no further business,Chair Tveite adjourned the meeting of the Elk River Economic Development Authority at 6:11 p.m. Chair Dan Tveite Tina Allard, City Clerk • . EEEi tC NATURE •