7.1. EDSR 08-14-2000 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
• Item # 7.1
TO: Elk River EDA
FROM: Cathy Mehelich, Director of
Economic Development
DATE: August 10, 2000
SUBJECT: Initiative Foundation Year 2001
Request for Funding
Issue
Attached for the EDA's consideration is a letter from the Initiative
Foundation requesting an annual contribution for the year 2001 to
support the Foundation's programming and fund raising campaign.
Background
With regard to the Initiative Foundation's past requests, the following
has occurred:
• 1997 - $5,000 contributed ($2,500 EDA, $2,500 City Council)
• • 1998 - Request denied
a 1999- Request denied
The.Initiative Foundation is continuing to request the city's additional
contribution of$14,950 to meet their total requested donation. In
1999, the EDA directed staff to provide a letter indicating the reasons
for denying the contribution request. This letter is attached for your
information.
A contribution to the Initiative Foundation for the year 2001 has not
included in the proposed EDA budget. The Foundation has
participated on an investment level in recent years with the EDA's
Business Incubator companies.
Requested Action
Staff requests direction from the EDA regarding the Initiative
Foundation's recent request.
Attachments
• October 1999 Staff letter to Foundation
• June 2000 Initiative Foundation Letter of Request
•
13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612)441-7420 • Fax (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
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Kathy Gallswyk
Initiative Foundation
70 SE First Avenue
Little Falls, Minnesota 56345
Dear Kathy:
SUBJECT: CONTRIBUTION REQUEST
The Elk River City Council and Economic Development Authority recently took action to
deny the Initiative Foundation's 1999 request for funding. After reviewing information by
Connie Marcyes dated September 28, 1999, it became apparent that we have already
provided a fair percentage of the originally requested contribution. I have evaluated the
summary that was provided by your office as follows:
1111 %of Request
City Granted
Becker 39%
Big Lake 17%
Clear Lake 0%
Elk River 25%
Zimmerman 99%
Buffalo 14%
Monticello 11%
Rockford 11%
Our current contribution to date - $5,000—as a percentage appears to lie somewhere within
what other communities in our region have determined is most appropriate as a
contribution to the Initiative Foundation.
If you have any questions or comments, please feel free to call me at 612-441-4905.
Sin.- - your /
'aul Steinman
Director of Economic Development
• c: City Council
Economic Development Authority
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD & Phone: (612) 441-7420 • Fax: (612)441-7425
•une 13, 2000 INITIATIVE
FOUNDATION
Patrick Klaers, City Administrator
City of Elk River
13065 Orono Pkwy
PO Box 490
Elk River,MN 55330-0490
Dear Mr. Klaers:
The Initiative Foundation would like to thank the City of Elk River for the $5,000 contribution
made to the Sherburne County Capacity Fund Campaign. We are grateful for your interest in
and support of our programs and are pleased to provide you with a progress report on various
activities in our 14 county service area. At this time, we would like to invite you to continue to
support our programs through an additional annual contribution towards our Phase IV(1997-
2002) Capacity Fund Campaign.
ain our 14-year history,the Initiative Foundation has improved the quality of life in the region by:
• Distributing$22 million in grants and loans
• Creating or retaining 5,159 jobs
• Leveraging an additional $67.7 million in private business investment
• Training over 500 community leaders
The special partnership we share with generous friends like you has enabled the Initiative
Foundation to distribute $949,428 in grants & loans in Sherburne County alone.
Please note the enclosed project list,which details the work we have supported. We have been,
and continue to be, an active force for economic development, community planning, leadership
development and donor services in Central Minnesota. Because of your support the Initiative
Foundation is able to provide gap financing for new and expanding businesses. In addition we
provide grant dollars to area non-profit organizations, schools and units of local government, in
order to keep our communities viable and healthy. Your gift does have direct impact on your
community as shown with recent projects we've funded:
CENTRAL MINNESOTA'S
INITIATIVE FUND
• 405 FIRST STREET SE
LITTLE FALLS. MN 56345
PRONE: 320.632.9255
FAX. 320.632.9258
WWW.IFOUND.ORG
City of Elk River
June 13, 2000
Page 2
11111
Recent Grant activity in Sherburne County includes:
> BigBrotherslBig Sisters of Central MN;Eastern Sherburne Co. Branch Office ($4,000)
> Elk River Area Schools, Elk River;Landscaping for Pleasure &Achievement($1,000)
> Elk River Area Schools Special Education;Parent Networking Project($2,302)
> Elk River Area Women of Today;Lice Bucket Program ($4,950)
> Elk River Community Theatre;Performance Schedule ($4,950)
> Elk River School District EBD;Mental Health Forum ($1,250)
> Greater Zimmerman Area Chamber of Commerce; "A Frontier Holiday" ($1,000)
> Opportunity Partners, Inc.;Furnishings and Appliances ($1,000)
> Rum River Health Services, Inc.;Northland Women's Health Event($1,000)
> Zimmerman Elementary;Read to Succeed ($500)
Recent Loan activity in Sherburne County includes:
> Eighth Street House, Big Lake
> Raymond P. Chock Trucking, Elk River
> Northstar Photonics,Inc. Elk River
> Protector Care, Inc., Elk River
• We encourage you to once again support our fundraising efforts in Sherburne County and ask
that you consider making an additional contribution of$14,950 towards the Capacity Fund
Campaign. Contributions will be matched dollar-for-dollar by The McKnight Foundation,
doubling the impact of your donation for the region. A pledge card is enclosed for your
convenience.
We sincerely thank you for your past support and consideration of this annual request. We
would be happy to provide an update to the City Council at a scheduled Council meeting. Please
feel free to contact one of us or Mary Beth Grams at 877/632-9255 X2007 to arrange for a
presentation.
Sincerely,
)2c.a
Kathy Gaalswyk Connie Marcyes
President Director of Development
Enclosures: Pledge Card
County Project Listing
• Initiative Foundation Board Roster