7.1 EDSR 10-21-2013 l Request for Action
River-
To Item Number
Economic Development Authority 7.1
Agenda Section Meeting Date Prepared by
Other Business October 21,2013 Brian Beeman,Director of Economic
Development
Item Description Reviewed by
Project Updates Jeremy Barnhart,Deputy Director, CODD
Reviewed by
Action Requested
None
Background/Discussion
The purpose of this report is to provide an update on the Economic Development Divisions' ongoing
projects of interest to the EDA.
Professional Service Bureau (PSB)
Staff has held numerous phone conversations,meetings, and email correspondence in response to Mr.
Briggs,who represents Professional Service Bureau (PSB). Options were provided including: 1.
Purchasing the land at the EDA's set price, 2. Leasing the land for a temporary parking lot, 3. PSB to
purchase the building and land then the City to work on a possible Tax Abatement. To this date, staff has
not received a Tax Abatement application. Mr. Briggs remains rigid in is desire to purchase the property
for 1$.
Minnesota Manufacturing Week
Mayor John J. Dietz will be making a proclamation at the October 21, 2013 City Council meeting to
declare the week of October 21-26, 2013 as Minnesota Manufacturer's Week in the City of Elk River.
Local tours will be provided to the local high school students as part of a cooperative effort to encourage
local students to become interested in local manufacturing jobs and match student training with current
manufacturing practices.
Affiance Machine
Held a Ribbon Cutting Ceremony October 21, 2013 at 11:30 a.m. The ceremony included a tour.All
EDA members were invited as well as the Mayor and City Council and other key staff members involved
with the project.
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Preferred Powder Coating (PPC)
Economic Development Division (EDD) staff closed on the PPC project and construction has begun on
the site.A groundbreaking ceremony will be held October 22, 2013 from 11:30 a.m. to 1:00 p.m. An
invitation was sent to all EDA members including the Mayor, City Council, and others involved in the
project.
Orluck Industries
Closing documents have been drafted and EDD staff is waiting for the bank's lead to notify staff when a
closing date will be set for the approved Forgivable loan that the EDA approved April 8, 2013.
The Bank of Elk River—Business Subsidy Job Goals
In cooperation from the State DEED office,EDD staff has determined The Bank of Elk River has until
November 2013 to meet its wage and job goals. Currently, the bank has met 65% of the goals. EDD staff
is waiting until November to determine if the bank will meet its goals. If the bank does not meet its goals,
the bank will need to pay back the 35% of the unmet goals going back to 2006 and the Business Subsidy
Agreement will be void,meaning that the bank will no longer receive Tax Abatement going forward.
The only other alternative is for the EDA to consider allowing the Business Subsidy Agreement to be
amended. If the EDA wishes to consider this option, staff can provide additional information.
Forgivable Loan
EDD staff has been advertising the Forgivable loan program in local and regional media sources. Staff
has had discussions with a few companies who have shown interest in the program. At least two
companies have requested an application. To date,no applications have been received. Staff will continue
to market the forgivable loan program until there is a successful applicant.The city must have a letter of
commitment from a successful applicant by the end of 2013.
MNCAR Expo
EDD staff is attending the Minnesota Commercial Association of Realtors (MNCAR) Expo October 24,
2013 from 2:00 p.m. to 8:00 p.m. in Minneapolis as a sponsor to promote the City and network with
potential developers. Chanda Knoof, EDD Marketing Intern and Debbi Rydberg, Elk River Area
Chamber of Commerce Director will be in attendance. Several marketing tools will be used including a
City marketing video, several brochures,a drawing for prizes,and branding items to be handed out.
Realtors Day
EDD staff is organizing the 2nd annual Realtors Day to be held in Elk River November 13, 2013 from
9:00 a.m. to Noon at City Hall.Various members of the City staff will be making presentations to a group
of realtors in order to inform them of Elk River city services for processing their development projects.
Mayor John J. Dietz will be kicking off the event with a short welcome presentation. The event has been
well received in the past.
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Project Updates.docx
Ethanol Technology
Ethanol Technology is bankrupt and therefore has defaulted on its microloan. The bank has written off
this loan and EDD staff has contacted the attorney to write a formal Notice as per the microloan policy.
Once the notice has been sent, EDD staff will take the matter to the Finance Committee for review then
to the EDA for final action. Ethanol Technology was loaned$74,000 and the unpaid balance is
$66,729.66. The EDA would have to make formal approval to write off the loan as uncollectible.
Financial Impact
N/A
Attachments
• N/A
N:\Departments\Community Development\Economic Development\EDA\Adminstrative\Agenda\EDA Agenda\year2013\10-21-2013\7.1 sr
Project Updates.docx