6.2 ED SR 09-19-2016
Request for Action
To Item Number
Economic Development Authority 6.2
Agenda Section Meeting Date Prepared by
General BusinessAugust 15, 2016Amanda Othoudt, EDD
Item Description Reviewed by
Director’s Report Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion only in effort to keep the EDA updated development activity.
Background/Discussion
BUSINESS VISITS
17 Business visits have been completed to date with one more on the horizon. Staff paid a visit to
Diamond City Bread along with CM Olsen. The group met with Garret, the owner, who took over the
business from Frank Gallo in 2005. The business employs 4 FT and 6 PT employees.
Our next business retention visit is scheduled with EH Renner and Sons for September 29, 2016 at 9:30
a.m. If you have an interest in attending this retention visit, please RSVP to Colleen.
MISCELLANEOUS
Die Concepts, Inc.
This project is moving along smoothly. See the attached progress photos.
Quad County Meeting
I attended the Quad County Meeting (Benton, Sherburne, Stearns and Wright counties) this past month
at the Central Minnesota Jobs and Training Center to discuss the plan to update the regional
Comprehensive Economic Development Strategy (CEDS) for the Central MN Regional Development
Commission (RDC). The CEDS was last updated in 2010.
Regions must update their CEDS at least every 5 years to qualify for Federal EDA assistance under its
Public Works and Economic Adjustment Assistance programs. In addition, a CEDS is a prerequisite for
designation by EDA as an Economic Development District (EDD).
The Annual Budget for Federal EDA is $300M. There are six Regions under the Federal EDA. The
Chicago Region has been allocated $30M which includes Michigan, Minnesota and Wisconsin.
The benefit to the region is that all municipalities would then be eligible to receive Federal EDA grant
dollars to assist with a variety of economic development initiatives. (i.e. Industry cluster strategies, market
leakage analysis, construction of ED infrastructure and facilities including industrial park development
and WWT Plants, etc.). This is a great tool to have in our tool box, and a potential source of funds as we
move forward into planning for future industrial developments.
Apex Embroidery Design, Inc.
We received two separate financial applications from Apex Embroidery Design, Inc. this week. Apex
provides embroidery programing services to apparel decorators mainly in the Midwest. They currently
lease a 7,500 square foot building in Ramsey, MN and are growing out of their space. They are proposing
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to construct a new 13,312 sq. ft. facility located at 9775 158 Circle NW. The EDA Finance Committee
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will be reviewing these applications at their September 27 meeting. It will go on the EDA/City Council
agenda for final action on October 17.
MN Marketing Partnership meeting
We attended the quarterly MN Marketing Partnership meeting in September. The meeting was held in St.
Cloud and included an update from Jeff Rossate, Director of Business Development with DEED. He
highlighted the MN Job Creation fund being fully subscribed. Currently, there is no money available for
new projects. DEED is working on over 50 manufacturing projects throughout the state. One of those
projects is in Elk River. Jeff also discussed upcoming trade shows DEED is participating in the
remaining year and other marketing initiatives.
International Development Council Annual Conference (IEDC)
Amanda will be attending the annual IEDC Conference this year in Cleveland at the end of September.
The conference will showcase how economic developers are shaping communities that emerge as
stronger and more resilient. There will be several opportunities to learn about new strategies and
techniques related to Economic Development and Neighborhood Revival.
Back in May, we submitted the Partnership Award entry for the Sportech Inc. project. Unfortunately, we
were notified that this project was not chosen to receive an award this year.
Revolving Loan Fund Balance Reports
At the request of the members, a copy of the Revolving Loan Fund report is attached.
Financial Impact
None
Attachments
Revolving Loan Fund Balance Report (August 2016)
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
8/24/16
CurrentCurrent
Loan LoanInterestTermMonthlyPrincipal
BorrowerDateAmountRate(Months)PaymentOutstandingCurrent
Blue Egg Bakery4/25/2013$74,5002.00%120$685.50$51,302.30Y
Die Concepts6/3/2016$185,2002.00%60$936.90$183,942.49Y
Ethanol Technology8/25/2008$74,0003.00%60$716.03$9,905.24N
Patriot Converting5/5/2016$200,0003.00%60$3,593.74$193,804.79N
Preferred Powder10/1/2013$100,0003.00%60$967.61$74,640.76Y
Promo Products1/13/2011$30,0003.00%60$167.03$23,473.79Y
Ralphies9/10/2013$74,9993.00%120$724.20$54,978.40Y
TOTAL MICRO LOANS$592,047.77Micro Loan Fund 240
Distinctive Iron3/3/2015$126,0002.03%60$874.72$115,275.96Y
Scott Morrell LLC8/6/2015$200,0002.00%60$1,011.77$191,738.50Y
$307,014.46DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 8/24/16:
Micro Loan Fund - 240$596,319.67
State DEED Jobs Incentive - 242$111,581.75