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To Item Number
Economic Development Authority 6.2
Agenda Section Meeting Date Prepared by
General Business October 17,2016 Amanda 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
19 Business visits have been completed to date. Staff met with Paul Meschke from Elk River Machine
along with Zack Carlton,Nate Ovall,Debbie Rydberg,and Larry Toth. The group met with Paul
Meschke the new President and Chris Fairchild the Controller. Elk River Machine employs between 70-
80 FT and has seen a 50%increase in revenues over the past 7 months resulting in the need to purchase
additional equipment. They plan to invest approximately$2 milling in new equipment which includes
four new CNC machines and a large horizontal machine center. By purchasing the new equipment, they
will be able to add an additional 20-25 FT employees.
Four more retention visits are scheduled. Please RSVP to Colleen and let her know if you are able to
attend.
Fairibault Foods,Tuesday,November 29, 2016 10:OOAM— 11:30AM
Abra Autobody,Tuesday,November 29, 2016 2:00 PM-3:30 PM
The Shop,Wednesday,December 14, 2016 10:30 AM-12:00 PM
Energy City Solutions,Tuesday,December 13,2016 1:30 PM-3:00 PM
MISCELLANEOUS
Economix Event
I attended the second annual Economix Event in October which drew over 26 site selectors from all
over the country and companies that represent different industry clusters. I met with a representative
from Nodecom, they are managing the redevelopment of the former Federal Reserve building in MPLS,
a 560,000 square foot facility and siting data center clients at that location. They expressed a lot of
interest in the county's shovel ready data center site. We are working with Greater MSP to help pay for
travel accommodations to send this representative to Elk River.
Organization for International Investment Event
I will be partnering with the MN Marketing Partnership to attend an event hosted by the Organization
for International Investment (OFII). This event attracts c-level executives from all over the country and
abroad. We will work on specifically marketing our four targeted industries at this event.
rERED ® r
NATURE
Downtown Beautification Committee
We continue to work on finding members for the Downtown Beautification Committee. We are seeking
5 community members to participate in the committee. We anticipate appointing the new members at a
December work session.
National Development Council Economic Development Finance Training
I have completed the last of four classes in October. I will be notified in approximately 6 weeks if I have
successfully passed my last exam. In the event I do,I will be a designated Economic Development
Finance Professional (EDFP).
DEVELOPMENT ACTIVITY
Heritage Millwork
We received a financial application from Annie Deckert on behalf of Heritage Millwork for a$100,000
Industrial Incentive Microloan.We are processing the review of this application internally and will
present this to the Finance Committee at their November 29 meeting.
Joplin Property Project
We recently received the quitclaim deed from MnDOT that will extinguish the highway easement on the
remnant parcels of the property.This is one of the final tasks in this very complex land assembly project.
We are now gearing up to close on the property in December or early January. The developer will be
working with staff as they complete the final site design and determine new locations to relocate utilities.
They anticipate breaking ground in the spring.
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 (October 17,2016)
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
Current Current 10/28/16
Loan Loan Interest Term Monthly Principal
Borrower Date Amount Rate (Months) Payment Outstanding Current
Blue Egg Bakery 4/25/2013 $74,500 2.00% 120 $685.50 $0.00 Y
Die Concepts 6/3/2016 $185,200 2.00% 60 $936.90 $182,680.79 Y
Ethanol Technology 8/25/2008 $74,000 3.00% 60 $716.03 $66,729.66 N
Patriot Converting 5/5/2016 $200,000 3.00% 60 $3,593.74 $184,453.77 Y
Preferred Powder 10/1/2013 $100,000 3.00% 60 $967.61 $73,095.42 Y
Promo Products 1/13/2011 $30,000 3.00% 60 $167.03 $23,260.74 Y
Ralphies 9/10/2013 $74,999 3.00% 120 $724.20 $53,213.74 Y
TOTAL MICRO LOANS $583,434.12 Micro Loan Fund 240
Distinctive Iron 3/3/2015 $126,000 2.03% 60 $874.72 $113,914.97 Y
Scott Morrell LLC 8/6/2015 $200,000 2.00% 60 $1,011.77 $190,352.94 Y
$304,267.91 DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 10/28/16:
Micro Loan Fund-240 $665,463.47
State DEED Jobs Incentive-242 $115,744.53