5.0. EDSR 01-09-1995 ( X
`
ity
of / MEMORANDUM
p R•
iver TO: Economic Development Authority
FROM: Lori Johnson,Finance Director
DATE: January 9, 1995
SUBJECT: Payment of EDA Expenses
In 1994,the EDA took on many more of the financial obligations of the Economic
Development Department. In this transition, it also meant that many more expenses were
payable from the EDA. Previous to 1994, there was very little check activity generated
by the EDA, and,therefore, all of the recordkeeping was done on a manual basis. Due to
the significant increase in activity, I am proposing a change in the method in which both
the checks are paid and approved, and the way the financial records are maintained. This
change would mean that more current and detailed information would be available on a
constant basis for the EDA.
The main change that needs to take place is the timing and method of payment of
invoices. I would propose that the EDA's invoices be paid at the same time that all of the
0 City's other checks are approved. The EDA would need to purchase computerized check
forms and either have the checks signed manually or purchase a signature stamp so that
staff could process the checks.
Recommendation
Bill Rubin and I have discussed this issue and feel that a change would be beneficial to
the EDA mainly because of the current and detailed financial information that would
become available. With the increased activity and the increase in revenues available to
the EDA, it is important that the Executive Director and Commissioners have access to
up-to-date and accurate financial information at all times. The Commissioners are asked
to review this request and, if the Commissioners are in agreement,to request that staff
proceed with purchasing computerized check forms for the EDA. In addition,the EDA
will need to determine who will be the check signor(s).
eda/meetings:pmtexpen
•
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
. MICRO LOANS
Current Current Dec. 31, 1994
Loan Loan Interest Term Monthly Principal
Borrower Date Amount Rate (Months) Pa ent Outstandin e
Anoka Medical Properties 7/1/90 $100,000 8.75% 120 $1,253.27 $65,469.55
Alltool (1) 6/1/89 $200,000 9.00% 120 $2,533.52 $110,462.45
Beaudry Convenience* 12/28/93 $50,000 7.25% 120 $585.57 $46,655.02
Designing Women of Elk River* 2/18/93 $21,500 7.75% 180 $198.29 $19,670.98
(2) 2/18/93 $6,000 6.00% 60 $0.00
Elk River Motel Properties 7/1/90 $32,500 7.00% 65 $377.35 $26,139.98
Indy Lube* 10/28/93 $24,700 7.75% 180 $231.43 $23,605.01
Pomeroy Tool 7/1/92 $25,000 6.50% 180 $217.78 $22,324.94
Pure Steam (3) 4/1/92 $25,000 3.50% 48 $558.90 $0.00
R&D Sales* 12/8/93 $17,500 7.25% 180 $156.95 $16,373.80
Roma Tool (4) 7/1/91 $500,000 10.00% 240 $1,000.00 $474,441.76
Second Generation Properties* 11/23/92 $50,000 6.75% 240 $378.88 $47,303.34
Tescom* 5/18/93 $50,000 6.00% 120 $555.10 $44,268.46
0 (5) 4/22/94 $250,000 4.50% 120 $2,590.98 $238,294.61
LaRose Enterprises 3/29/94 $25,000 6.00% 84 $365.21 $23,293.10
Woodsmen Quality Projects* 1/11/94 $18,750 7.25% 180 $170.80 $18,039.90
Water Laboratories, Inc. 5/5/94 $15.000 6.00% 180 $126.50 $14.687.11
TOTAL $1,410,950 $11,300.53 $1,191,030.01
(1)The City retains the first $100,000 of principal plus interest. The remainder is payable
to the State.
(2)This loan was prepaid in 1994.
(3) Due to Company relocation,this loan became due and was paid in full in 1994.
(4)The terms of this loan were renegotiated in 1991;the renegotiated terns are as listed.
Monthly payments increase to $1,500.00 on January 1, 1995. The City retains the first
$100,000 of principal plus interest. The remainder is payable to the State.
(5)The City retains all principal and interest payments from this Block Grant.
The payments are credited to the Block Grant Micro Loan Fund for use
under the guidelines of the Block Grant program.
*Variable Interest Rate.
i
[MICROLNS.XLW]LOANSUM.XLS 1/6/95
ECONOMIC DEVELOPMENT AUTHORITY COMMITTEES
FINANCE COMMITTEE
ie
LLOYD BRUTLAG - 441-2549 BUD HOULTON - 441-2200
6 541 8th St. NW 729 Main St.
Elk River, Mn 55330 Elk River, Mn 55330
JIM SIMPSON - 441-1000 BILL BIRRENKOTT - 441-2020
630 Main St. 322 King Ave.
Elk River, Mn 55330 Elk River, Mn 55330
di
Al TOM MCNAIR - 441-2200
729 Main St.
31 Elk River, Mn 55330
4.
MARKETING COMMITTEE
3 ELAINE ANDERSON - 441-2612 JERRY HAGEN - 441-1400
13431 Meadowvale Rd. 800 Freeport Ave.
Elk River, Mn 55330 Elk River, Mn 55330
11 0 BRIAN MORAN - 441-6150 ROD MCARDLE - 441-5028
19188 Industrial Blvd. 14285 201st Ave. NW
111 Elk River, Mn 55330 Elk River, Mn 55330
MIKE LEARY - 441-6600 PAUL AMMERMAN - 241-2249
1 708 Main St. 17845 E. Hwy. 10 PO Box 800
Elk River, Mn 55330 Elk River, Mn 55330
111 DON HEINZMAN - 441-3500
649 Main St.
Elk River, Mn 55330
R & D COMMITTEE
1
CLIFF LUNDBERG - 441-1251 CAROL MILLS - 441-1213
I 400 Jackson Ave. 300 Evans Ave.
Elk River, Mn 55330 Elk River, Mn 55330
I LARRY TOTH - 441-2840 DICK GONGOLL - 441-2200
813 Fawn Rd. 729 Main St.
Elk River, Mn 55330 Elk River, Mn 55330
I .
JOHN OLIVER - 441-2072
580 Dodge Ave. NW.,
I Elk River, Mn 55330