6.1. SR 09-27-1999
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ITEM # 6.1.
MEMORANDUM
TO:
Mayor and City Council
FROM:
Paul Steinman
DATE:
September 27,1999
SUBJECT: Request for Funds by Initiative
Foundation
The Initiative Foundation, formerly known as The Central Minnesota Initiative
Fund, has once again requested a donation from the City of Elk River as part of their
ongoing capital campaign. A packet of information was distributed to the council
members back in approximately June 1999, with a letter from staff indicating that if
there was no response from the council regarding this issue, staff would send a letter
to the Initiative Foundation denying their request.
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Attached to this memo is a variety of back-up information including correspondence
from last year and 1997. The back-up information includes a description of how
many dollars were provided to the Initiative Foundation over the past couple of years.
It is staffs understanding that there will be representatives of the Initiative
Foundation at the council meeting to discuss their contribution request.
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13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
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MEMORANDUM
RiverTO:
Mayor & City Council
Economic Development Authority
~ROM:
Paul T. Steinman, Director of Economic
Development
DATE:
June 23, 1999
SUBJECT: Initiative Foundation Request
Attached to this memo is a request from the Initiative Foundation - formerly
the Central Minnesota Initiative Fund - for a contribution to their capital
campaIgn.
With regard to the Initiative Foundation's past requests, the following has
occurred:
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. 1997 - $5,000 contributed ($2,500 EDA, $2,500 City Council)
. 1998 - Request denied
The Initiative Foundation is continuing to request the city's additional
contribution of $14,929 to meet their total requested donation equivalent to
$1.50 per capita. In 1998, the EDA dIrected staff to provide a letter
indicating the reasons for denying the contribution request. This letter is
attached for your information.
If the Council/EDA have comments regarding this issue, please feel free to
call me at 441-4905. If staff does not hear specific comments within the next
month, it will proceed to send a letter turning down the contribution request.
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13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
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November 18, 1998
Kathy Gaalswyk
Central Minnesota Initiative Fund
70 SE First Avenue
Little Falls, Minnesota 56345
Dear Ms. Gaalswyk:
Subject:
Elk River Contribution Request
I regret to inform you that the Elk River Economic Development Authority
voted unanimously to deny the Central Minnesota Initiative Funds request
for an additional contribution in the amount of approximately $14,000. This
action was taken by the EDA on Monday, November 9,1998, upon
recommendation by staff.
Our decision is by no means a reflection upon the work of CMIF or level of
service your organization has provided to our community over the years. It
is, rather, a reflection of my attitude and the board's attitude regarding the
use of additional taxpayer dollars to fund economic development activities
and programs. Taxpayers currently bear a major share of the responsibility
of growing the tax base and creating jobs for our residents.
It is appropriate and encouraging that an organization such as the regional
initiative funds can promote economic development utilizing sources of funds
other than tax dollars. At least I believe this was the initial intent of you
organization. I have become somewhat displeased that it appears this
intention has changed over the past couple of years with your organizations
requests to municipalities and counties for contributions as part of your
overall capital campaign. It is imperative that non-taxpayer funded
organizations playa larger part in aiding economic growth in every region of
this state to help diminish people's expectation that tax dollars will fill this
need.
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Kathy Gaalswyk
November 18,1998
Page Two
I have had very good experiences working with Randy Hilliard these past
several years, and recently with John Kaliszewski. It is my hope that our
positive working relationship can continue as I believe we have the same
goals in mind. The best situation for both our organizations is for us to share
common goals, but not common funding sources.
Thank you for your time and consideration. If you would like to discuss this
issue further, please feel free to call me at 441-4905.
Sincerely,
Paul T. Steinman
Director of Economic Development
PTS:akh
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Mayor & City Council
Economic Development Authority
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JU,1 1 6 199!
June 11, 1999
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INITIATIVE
FOUNDATION
Patrick Klaers, City Administrator
City of Elk River /Elk River EDA
PO Box 490
Elk River, MN 55330-5600
DeaIMr.~
The Initiative Foundation (formerly known as the Central Minnesota Initiative Fund) would like to
thank you for the $5,000 contribution that you made to the Sherburne County Capacity Fund
Campaign. We are very grateful for your interest and support of our programs and are pleased
to provide you will a progress report on our various activities in our 14 county service area. We
would also like to invite you to continue to support our programs through an additional
contribution to the Foundation. .
In our 13-year history, the Initiative Foundation has improved the quality of life in the region
by:
. Distributing $20.3 million in grants and loans
· Creating or retaining 5,000 jobs
· Leveraging an additional $61.3 million in private business investment
. Training 500 community leaders
In Sherburne County alone, the Foundation has provided much needed assistance by providing
$890,401 in grants and loans, leveraging an additional $1.5 million in private business
investment, and creating or retaining over 190 jobs. A complete grant and loan project listing is
attached for your review.
Recent grant activity in Sherburne County includes:
· Zimmerman/Livonia Township and Elk River are currently participating in the Initiative
Foundation's Healthy Communities Partnership (HCP) Program, which includes a grant of
$10,000.
· Education to Employment of Elk River received a grant to assist in hiring an EEP
Coordinator.
· A Three Rivers Community Foundation (TRCF) grant was awarded to the Elk River School
District for the Community Band and Choir Project.
· Sherburne County was given a grant for scenic area land preservation.
· A grant was awarded to Sherburne County Public Health for an assessment of parents
project called "Completing the Circle of Prevention".
· St. John's Lutheran School, Elk River received a TRCF grant for an art immersion day.
In addition, the Initiative Foundation was able to fill the
financing gap for several of Sherburne County's new and
expanding businesses by providing them with business loans.
The following Sherburne County companies have recently
benefited from our business loan programs:
. Protector Care, Inc., Elk River
. Watermark Corporation, Elk River
. Windmark, Inc., Zimmerman
GENTRAL MINNESOTA.S
INITIATIVE FUND
70 SE FIRST AVENUE
LITTLE FALLS. MN 56345
PHONE: 320.632.9255
FAX: 320.632.9258
W,,",,".IFOUND.ORO
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City of Elk River
June 11, 1999
Page 2
We encourage you to once again support our fundraising efforts in Sherburne County and ask
that you consider making an additional contribution of $14,929 to the Initiative Foundation.
This amount will bring your total contribution to the Capacity Fund Campaign to $19,929 which
would represent a donation equivalent to $1.50 per capita. This is the level of participation that
we are requesting from all of the cities in our region. Your gift could be made as a one-time
cash contribution or could be pledged over the next three years. 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 use.
Thank you so much for your past support and consideration of this new request. We would be
happy to present our funding request before your City Council at an upcoming Council
meeting. Please feel free to contact Leah Posterick at 877-632-9255 to arrange such a
presentation. .
Sincerely,
~
Kathy Gaalswyk
Executive Director
Enclosures Pledge Card
County Project Listing
Initiative Foundation Board Roster
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INITIATIVE
FOUNDATION
.-,
i
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Capacity Fund Campaign
Gift-Card
Yes, we want to help the Initiative Foundation
fulfill its mission by:
( ) Making a pledge of 5
follows:
to be paid as
$
by
by
by
$
$
( ) Making an outright contribution of 5
_ The gift is enclosed
_ The gift wm be lIZm1ed on
Our contribution is designated for:
( ) The Capacity Fund Campaign (general
endowment and annual support)
( ) Other
(Please specify)
Organization Name
Contact Name/Title
Address (Street, City, State, alld Zip)
,i
i
i
"Phone
Sign~ture
Date
Please make c1lecks payable to:
Initiative Foundation
70 SE First A venue, Little Falls, MN 56345
(320) 632-9255
: ',.;,;,:-:/,:.:,;::-;':' ;; . (: :';: :f}2\:;;:::?::;i~.:~~;:';;~~'{ \~':::;::.: .;~:~,:::j::."::.;<' ::~::::_;; :,.~;;..:: .":
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..~::;>.:;.;:::; :.... :-:. :.' .... .:::::: CENTRAL: M:l::NNESOTA INTITIATIVE FUND:
'j~([~~:;~~r:~~~n~~~~:~>,:;::\:~:-: '.:~'::"::i~ROJECTS '~~ED'IN"SHERBtiRNE coUNTY,. .' .:::.::: . ..
::~~~i;~J;!;mm:mjj;:~;:i~:;;:{;~:::;: ':'::: :.: :>>:i:~:;;;: ;::":..:.::.::. :.: /: ;::;m'.:0~:~~:(th~~~~2b\t/30)99):/E /:~;: ~;~::::..:<::::': '::; ::::: :::~:: >~:~; ;::;; ~:::::;::;::::
:;::...:.... . .. ..
........ .,
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2001 Arts Alliance, Elk River *
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Big BrotherslBig Sisters, Elk River
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Big BrotherslBig Sisters, Elk River
Big BrotherslBig Sisters, Elk River *
Big Lake School District
Big Lake School District
Central MN Mental Health Center, Elk River
Child Care Mini Grants
City~f Becker: .
City of Becker
Cit~o,f~ig Lake
Ci~ofBig Lake
City.o~.Elk River
City of Elk River *
CitY of Elk River *
City of"E~ Ri'.'er/Chamber of Commerce *
f J- " "',..
City of Rogers *
City of-Zimmerman
Ci~immerman
Ci~Zimmerman
Education to Employment, Elk River
Elk River Area Arts Council *
Elk River Area Chamber of Commerce
Elk River Area Citizens League *
Elk River Area Citizens League *
Elk River Community Education
Elk River Community Theatre *
Elk River Leadership Council *
Elk River School District
Elk River School District *
Elk River School District *
Elk River Youth Initiatives *
Greater Elk River Task Force
Guardian Angels of Elk River, Inc. *
Guardian Angels of Elk River, Inc.
Land of Lakes Choirboys, Inc., Big Lake *
Parker Elementary School, Elk River *
Rivers of Hope, Elk River *
Rivers of Hope, Elk River *
Rivers of Hope, Elk River *
R.' of Hope, Elk River *
R iver Health Services, Elk River
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GRANTS AWARDED
PROJECT TITLE
':'.L~';"'~:'~; .n',...~ ".~i,';'(~ ~,~: ' ,;.,'
ArtsFestival':':':';"~)'; ;'C!'.\ ," .-.... "
Sherburne CountY' Exp~n~i~~ Proj~c:t' "'.' .
Sherburne County Expansion Project"
Eastern Sherburne County Branch Office
HELPS - " '.,
~,' '. ^,- _'/ .j...... r ., I~
Focus Group .
Community Response to Youth Stress
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Sixteen Individual Awards'
Community"pianni~gf': 'i.,";',' .~.:;': .Ff
Senior Housing Study::"","
'," .
. Area Community PlanninglLeadership Dev.
Implementing C~nimunity Vision' f .
Wilderness Trail' "',' ., "i:.' .:.,.;
Education Officer Project ,:' ,.:. ,.'f
Elk River Heritage Festival '.',. d
Leadership of Elk River
Senior Housing Study '-;::"
Community Planning
Creating A Healthy Sustainable Community
LivonialZimmerman Voices for Community Choices
EEP Coordinator
Strings for Youth Programs
Leadership Elk River
Arts in Building a Healthy Community
County Committee Structure Study
Community Volunteer Network
My Fair Lady
Area Youth Salute
Sherburne County Violence Prevention Activity
VandenBerge Community Center
Community Band and Choir
Youth Initiatives Mentoring
Domestic Yiolence/Advocacy
Elk River Senior Centerl Dining Site
Child Care Center
Salem Boys Choir Festival
Software Language Enhancement
Youth Violence Prevention
Community & Youth Advocacy
Youth Advocacy Program
Youth Advocacy Program
Rum River Inter-Faith Caregivers
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FISCAL YEAR
. 1 . . ~ .~. .'
;,:......1
1998
1996'"
1997
1997' ",
1995 ,.
1997'
1988
1991
1991 '
1998
1996
1997.
1989' p:,
1997'
1997'0' ,~
1995
1997
1988
1997
1999
1999
1994
1998
1995
1998
1992
1996
1996
1997
1998
1999
1998
1990
1997
1998
1996
1996
1995
1996
1996
1998
1997
AMOUNT
, ,
$1,506
10,000
5,000
2,000
2,500
10,000
3,000
2,563
1,000
1,000
2,500
10,000
5,000
4,000
1,000
1,000
2,000
1,000
10,000
10,000
10,000
1,000
1,500
1,500
1,000
15,000
2,500
1,000
8,000
3,000
300
3,400
12,000
3,000
10,000
1,900
699
1,500
1,500
5,300
4,000
5,000
ORGANIZATION NAME
R.W. Handke Magnet Elem. School, Elk River.
Salk Jr. High Improv Troupe, Elk River ·
Sherburne Natural History, Zimmerman
Sherburne County
Sherb~rne County Health.Serv~ce~::: i\.
Sherburne County Health Services
Sherburne County Health Services
Sherburne County Historical Society, Becker
Sherburne County Public Health
Sherburne County Social Services
Sherburne Economic Development Com.
St. Andrew's Catholic School, Elk River ·
St. John Lutheran School, Elk River ·
The 2001 Committee, Inc., Elk River
The 2001 Committee, Inc., Elk River
The 2001 Committee, Inc., Elk River
The 2001 Committee, Inc., Elk River
The 2001 Committee, Inc., Elk River
The 2001 Conf. Planning Committee, Elk River.
TLC and Company, Inc., Elk River
Village Family Service Center, Elk River ·
Odyssey ofthe.Mind Training Sessions
Improv Troupe
From Plow Furrows to Prairies
Scenic Area Land Preservation
Water Quality h
Central MN Water Quality
Community AIDS Education
Courthouse Preservation
Completing the CUcle ofPrcvcntion-An Assessment ofParcnts
Young Parent.s Program
Community Planning
COMP AS Artist Residency Program
Art Immersion. Day
Youth Survey Conference & Action Plan
Elk River Area Youth Task Force
Education Awareness
Elk River Area Planning & Visioning Preparation
Healthy Community Partnership Training
Enriching Our Communities
Facility Improvements/Staff Training
Expanded Education
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TOTAL GRANTS (78):
· Denotes grant awards made by the Three Rivers Community Foundation,
an operating division of the Initiative Fund.
2
FISCAL YEAR
1998
1998
1994
1999
1987
1989
1988
1990
1999
. 1989
1990
1998
1999
1990
1994
1994
1999
1999
1997
1990
1995
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AMOUNT',
250
2,550
1_
,
34,352
44,200
10,000
4,000
2,500
1,350
1,000
900
550
1,000
25,000
2,050
2,500
10,000
750
3,887
2,100
$342,101
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EXAMPLES OF LOANS AWARDED
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BUSINESS NAME
BUSINESS TYPE
Bnun~E1k River
(~ Savings Bank - Iowa)
Welding
Darter Plastics, Inc., Becker
Plastics Manufacturing
Diaper Express, Zimmerman
(First National Bank - Elk River)
Diaper Service
Freeport Finishing, Zimmerman
(Princeton Bank - Princeton)
Finishing
Hom Machine, Elk River
(First National Bank - Elk River)
Millwork Manufacturing
Key Pattern, Elk River
Pattern Design
Marketech, Inc., Elk River
(First National Bank - Elk River
Electronic Testing Service
Marketech, Inc., Elk River
. (First National Bank - Elk River)
Electronic Testing Service
Mastoni's Pizza, Becker
.rburne State Bank - Becker)
Northstar Potonics, Inc., Plymouth
PizzalDeli
High Performance Laser
Pomeroy Tool, Elk River
(First National Bank - Elk River)
Tooling
Protector Care, Inc., Elk River
Carestair-HalfHeight Step Asst.
Rohn Ironworks, Elk River
(First National Bank - Elk River}
Structural Steel.Fabricating
Sherburne County Insurance, Elk River
(The Bank of Elk River)
Insurance Agency
Watermark Corporation, Elk River
(The Bank of Elk River)
Manufactures Fishcam
W indmark, Inc., Zimmerman
(Breda Savings Bank - Breda, IA)
Design/Mfg. Rescue Air Boats
TOTAL LOANS (18):
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GRAND TOTAL OF
GRANTS & LOANS
3
FISCAL YEAR LOAN TYPE
1994
1992
1992
1994
1989
1989
1990
1996
1995
1999
1988
1998
1991
1994
1998
1998
Expansion
Expansion
Start-up
Start-up
Start-up
Expansion
Start-up
Expansion
Expansion
SEED Investment
Expansion
Expansion
Expansion
Expansion
SEED Investment
Start-up
$548,300
$890,401
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Board of Directors
Barrett Colombo, St Cloud
Dave Gruenes, St. Cloud
John Hoefs, St Cloud
Catherine Jackson, Waverly
Rita Clark-Johnson, Elk River '
Harry Nysather, Brainerd
Bill Scarince, St. Cloud
John Schlagel, Cambridge
Barb Schmitt, Staples
Dorothy Simpson, St. Cloud
Pat Spence, Rice
Warren Williams, Brainerd
~oan Committee
Barrett Colombo, St. Cloud
Dick Donat, Staples
Catherine Jackson, Waverly
Judi Knutson, Becker
Leonard Paulson, Milaca
Barb Schmitt, Staples
Rita Sobania, Rice .
Boardlist
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CMIF 6/99
INITIATIVE FOUNDATION
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"Attorney
Economic Development
" Health Care
Banking
Community Development Educator
. Retired Technical College Preside1:lt
" Manufacturing
" Manufacturing
" Agri-Business
Retired College Vice President
"" Community Development, University Regent
Banking
. "-".
Attorney
Economic/Community Development
Banking
Manufacturing
Retired District Court Judge
Agri-Business
Contracting Business Owner
Development Advisory Board
Pete Allen, Milaca
Elaine Arndt, Lake Shore
Dean Atchison, Little Falls
Al Baas, North Branch
Steve Benda, Cokato
Hanspeter Borgwarth, Nisswa
Cal Clark, Pine City
Barrett Columbo, St. Cloud
Richard Donat, Staples
Richard Duggan, Elk River
Stanley Edin, Staples
Bob Freeh, Zimmennan'
Larry Foley, Wadena
GordonGrimm,CenrerCi~
Al Halaas, Pequot Lakes
Lee Hanson, St. Cloud ' .'
Dale Hendrickson, Wadena
Ron Hinnenkamp, Little Falls
John Hoefs, St. Cloud
Catherine Jackson, Waverly
Rita Clark-Johnson, Elk River
Norm Krause: Staples
Tom Lambrecht, Finlayson
Don Levens, Cokato
Duane Lund, Staples
Susan Majors, Wadena
Gary Marsden, St. Cloud
Neil McMillin, Maple Grove
Dave Miller, Crosby
Kathleen Miller, Delano
Harry Nysather, Brainerd
Bob Obenniller, St. Cloud
Leonard Paulson, Milaca
JoAnn Peterson, Cambridge
Dick Roesler, Mora
Judie Rose, Buffalo
Bill Scarince, St. Cloud
John Schlagel, Cambridge
Barb Schmitt, Staples
Mary Schwartz, Mora
Dorothy Simpson, St. Cloud
Rita Sobania, Rice
Pat Spence, Rice
Dennis TrofI; Cambridge
Doyle VanDyne, Mora
Joan Vincent, St. Cloud
Jim Vrchota, Maple Lake
George Wallin, Big Lake
Char West, Menahga
Warren Williams, Brainerd
Sue Yarusso, Pine City
Bank President
Community Volunteer
Bank President .
School Superintendent, North Branch
Retired Owner, Injection
Retired Poultry Executive
BankinglEconomic Development
Attorney .
Economic Development
.' ,^ President, Marketech
, ;.; .~, .,'~. Retired Techni~ College President
Chamber of Commerce
Retired School Superintendent
RetiredIHazelden Foundation Executive
Business Owner
, Attorney
, : Electric Co-op Manager
MayorlEducator
Health Care
Bank President
. '.' ': '::' . Community Development Educator
.... " Manager, Central Lakes Ag Center
Economic Development
City Administrator
Education! Author
Education
Owner, Marco Business Products
Wright-Hennepin Elec Co-oplEcon Development
Cuyuna Range Economic Development, Inc.
City Administrator
Retired Technical College President
Retired Banker
Retired District Court Judge
Manufacturing
Banker
Retail
Manufacturing
Manufacturing
Agrl-Business
Mayor
Retired College Vice President
Contracting Business Owner
Education, Community Development
Banker
Bank President
Community Consulting
Bank Vice-President
Sherburne Tele-Systems, Inc.
Menahga City Administrator/Clerk
Bank President
CEO, Mercury Technologies, Inc.
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7/98
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