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6.5 EDSR 04-17-2017Request for Action ToItem Number Economic Development Authority6.5 Agenda Section Meeting DatePrepared by General BusinessApril 17, 2017Amanda Othoudt, EDD Item Description Reviewed by Directors ReportCal Portner, City Administrator Reviewed by Action Requested Information presented for discussion onlyin effort to keep the EDA updateddevelopment activity. Background/Discussion BUSINESS VISITS 5 BR&E visits have been completed this year. More retention visits are in the scheduling process, watch for the emails, and please RSVP and let us know if you are able Northwoods Machine BR&E Visit Staff met with Brad David from Northwoods Machine located at 18983 York St NW. Northwoods Machine is a precision machine shop specializing in CNC machinin Brad leases the approximately 6,000 square foot space and employ. In the past year he has hired 5 employees and is looking to hire 3-4 more machinistsbynext year. CYMBET BR&E Visit Staff met with Monte Johnson, CEO of Cymbet since 2010. Cymbet develops so utilizing semiconductor fabrication processes to produce a rechargeable energy storage device with no liquids, gels, or harmful chemicals, a very innovative product. corporate headquarters and production test operations. The produy appliances, microwaves, clocks, medical devices, and many other electronic approximately 7,500 square feet of space in Elk River. They down River back in 2014 and moved it to Lubbock, Texas. Cymbet has teamed with X-FAB Inc., operating a fully equipped EnerChip production facility at their facility in primarily chemical and electrical engineers in Elk River, down f moving to Lubbock, the C-Level Executives looked for an existing facility in the area, sp River, Rogers and Maple Grove. Monte mentioned that incentives offered by the state of Texas were substantial and the primary reason for their move. NEW PROJECTS Housing TIF Project - Patrick Briggs Mr. Briggssubmitted a Housing TIF application for a 40-unit, housing project located on Jackson St. requesting $500,000 over 15 years. The application was sent to our attorney and financial advisor for review. The application is planned to be reviewed at the April 25, 2017 FC meeting. Beaudry Expansion Project This project is temporarily on hold while staff looks at potential redevelopment options on this site. MISCELLANEOUS Revolving Loan Fund Balance Reports At the request of members, a copy of the Revolving Loan Fund report State Reporting for 2016 Staff has submitted all the state reporting forms to the State o have received financial assistance up to $150,000 in grants or loans from the city or business assistance from the city in excess of $150,000. Federal reporting forms are Joplin Property Project We closed on this project on April 10! Amanda has been working w, MnDOT, Brian from Ralphies-Minnoco, title and our attorneys over the past two years on this assembly project. The developer is proposing to develop three c spring. Staff will be working closely with the developer on relocating the utilities. The developer has inquired about any financial assistance that could potentially b utilities. Data Center Panel of Experts I moderated a Data Center Panel of Experts discussion for the Minneapolis/St. Paul Business Journal. The panelist included Graham Williams, Chief Operating Officer f Information Officer of Marco, Kam Patel, Director of Global Data and Ernest Sampera, Chief Marketing Officer of vXchange. The Minneapolis/St.siness Journal offered over $9,300 of free advertising for moderating the panel discussion. This our data center site and Elk River. The article will be published on April 28, 2017 The Worlds Best Workforce meeting at the Kelly Farm I attended The WorldsBest Workforce meeting at the Kelly Farm today to discuss partne could be made between industry leaders, education and local stea within our community to encourage new workforce and how to retain and train our existing included current labor market trends, career readiness, and part local teachers discussed how best to connect students to jobs. The group is in the process of c sub-advisory committees in the coming months to in an effort to impl business-education partnerships that will build technical, academic and eity skills through education and on-the-job training. Financial Impact None Attachments Revolving Loan Fund Balance Report, April 13, 2017 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MICRO LOANS Patriot Converting Preferred Powder Promo Products Ralphies TOTAL MICRO LOANS Distinctive Iron Scott Morrell LLC 5/5/2016 $200,000 3.00% 10/1/2013 $100,000 3.00% 1/13/2011 $30,000 3.00% 9/10/2013 $74,999 3.00% 3/3/2015 $126,000 2.03% 8/6/2015 $200,000 2.00% Fund Cash Balances 4/13/17: Micro Loan Fund - 240 $617,317.75 State DEED Jobs Incentive - 242 $127,927.40 Federal DEED $0 60 $3,593.74 $162,277.05 y 60 $967.61 $67,571.87 y 60 $167.03 $12,380.19 y 120 $724.20 $49,644.50 y $633,282.99 Micro Loan Fund 240 60 $874.72 $109,115.07 y 60 $1,011.77 185,466.91 y $294,581.98 DEED Jobs Incentive Loan Fund 242 Current Current 4/13/17 Loan Loan Interest Term Monthly Principal Borrower Date Amount Rate (Months) Payment Outstanding Current Die Concepts 6/3/2016 $185,200 2.00% 60 $936.90 $178,200.69 y Ethanol Technology 8/25/2008 $74,000 3.00% 60 $716.03 $66,729.66 N Heritage Millwork 12/22/2016 $100,000 3.00% 60 $965.61 $96,479.03 y Patriot Converting Preferred Powder Promo Products Ralphies TOTAL MICRO LOANS Distinctive Iron Scott Morrell LLC 5/5/2016 $200,000 3.00% 10/1/2013 $100,000 3.00% 1/13/2011 $30,000 3.00% 9/10/2013 $74,999 3.00% 3/3/2015 $126,000 2.03% 8/6/2015 $200,000 2.00% Fund Cash Balances 4/13/17: Micro Loan Fund - 240 $617,317.75 State DEED Jobs Incentive - 242 $127,927.40 Federal DEED $0 60 $3,593.74 $162,277.05 y 60 $967.61 $67,571.87 y 60 $167.03 $12,380.19 y 120 $724.20 $49,644.50 y $633,282.99 Micro Loan Fund 240 60 $874.72 $109,115.07 y 60 $1,011.77 185,466.91 y $294,581.98 DEED Jobs Incentive Loan Fund 242