6.1 EDSR 11-20-2017
Request for Action
To
Economic Development Authority
Item Number
6.1
Agenda Section
General Business
Meeting Date
November 20, 2017
Prepared by
Amanda Othoudt, EDD
Item Description
Director’s Report
Reviewed by
Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion only in effort to keep the EDA updated on development activity.
Background/Discussion
BUSINESS VISITS
Twenty three BR&E visits have been completed this year. We will schedule one more before the
holidays to meet our goal of 24 visits, watch for the emails and please RSVP if you are able to attend.
Staff and Chair Toth met with Luke and Nicole Smith of Snap Fitness and Fuse Fitness Coaching.
They employ 5 PT Trainers and 1 PT Admin. They also own a Snap and Fuse in Champlin. They
assumed ownership here this year and held their grand opening on October 14, 2017. Mayor Dietz and
his wife Jayne attended the open house. Fuse Fitness, is a company created by Luke and Nicole and is
located next to Snap. Fuse focuses on specialize in customized strength workouts, individualized
cardiovascular conditioning plans and nutrition coaching.
Staff, Chair Toth, and CM Olsen met with Kevin Kloppner of Water Laboratories, Inc. a business that
tests samples of water for chloroform, E.coli, nitrates, lead and arsenic. They employ 1FT Admin and 4
PT Lab Technicians. Their employees hold degrees in Bio Chemistry and Biology. They also sell water
testing kits at their office.
MISCELLANEOUS
Ethanol Technology
The district court granted our motion for summary judgment against Ethanol Technology, HiTech, and
Barton C. Wells in the amount of $78,028.00 plus attorney fees. The defendants have 60 days to appeal
the judgment, but since they did not oppose the EDA’s summary judgment motion, we do not expect
them to appeal or to have any basis for reversing the district court’s judgment.
Revolving Loan Fund Balance Reports
At the request of members, a copy of the Revolving Loan Fund report is attached.
Financial Impact
None
Attachments
Revolving Loan Fund Balance Report, November 15, 2017
District Court Judgment
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
Current Current 11/15/17
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 $174,345.58 Y
Ethanol Technology 8/25/2008 $74,000 3.00%60 $716.03 $66,729.66
Heritage Millwork 12/22/2016 $100,000 3.00%60 $965.61 $92,837.89 Y
Patriot Converting 5/5/2016 $200,000 3.00%60 $3,593.74 $143,030.07 Y
Preferred Powder 10/1/2013 $100,000 3.00%60 $967.61 $62,760.32 Y
Ralphies 9/10/2013 $74,999 3.00%120 $724.20 $46,020.39 Y
TOTAL MICRO LOANS $585,723.90 Micro Loan Fund 240
Distinctive Iron 3/3/2015 $126,000 2.03%60 $874.72 $104,955.52 Y
Scott Morrell LLC 8/6/2015 $200,000 2.00%60 $1,011.77 181,233.36 Y
$286,188.88 DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 11/15/17:
Micro Loan Fund - 240 $669,948.47
State DEED Jobs Incentive - 242 $208,416.26
Summary Judgement Filed