7.4. EDAR 03-18-2019 Request for Action
To Item Number
Economic Development Authority 7.4
Agenda Section Meeting Date Prepared by
General March 18, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
Director’s Report Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion to keep the EDA updated on development activity.
Background/Discussion
BUSINESS VISITS
Completed two BR&E visits with three more scheduled over the next few months. Please RSVP if you
are able to attend.
MISCELLANEOUS
I attended the Minnesota Manufacturing Workforce Partnership Gathering on February 28 at the St. Cloud
Technical and Community College. This group focuses on building partnerships among stakeholders of the
Minnesota manufacturing industry. Their collective goal is to restructure and accelerate the Minnesota
workforce education system to better meet the demands of Minnesota's manufacturing industry.
Managed Resource Connections, Inc. (MRCI) presented at this event to discuss training solutions for
individuals with disabilities. In an economy where there is a lack of workforce, this is an option for
employers. MRCI offers coaching and workforce solutions to help employers increase awareness about the
different disability types and provide supportive employer resources to support the various targeted
populations. Oftentimes, it only takes simple modifications to machinery or office space to accommodate
employees with disabilities. In addition, businesses accommodating or hiring employees with disabilities
could qualify for tax credits and deductions. Justin’s story is an inspirational story how employees with
disabilities can maintain gainful employment within the manufacturing sector.
http://www.mymrci.org/meet-justin.html
Art in Sherburne County
Mike Brubaker from the Sherburne County History connected with us this month. The Sherburne County
History Center is looking for ways to provide Sherburne County artists with a means of local exposure since
the disbandment of the Elk River Arts Alliance. He is planning an art fair in June for artist 18 years of age
and older. There will be an opening social on June 11 at 6 p.m. The art fair will be held in the History Center
meeting room on June 12-14 from 10:00 a.m. – 5:00 p.m.
Mike hopes this will become an annual event and welcomes all ideas and discussions with Elk River regarding
local artists and would support a grant application to the Central MN Arts Board for a public art project in
Elk River.
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Business Survey
Cal and I met with Debbi, David Monroy, and Randy Barney of the Chamber to review the results of their
2018 Economic Development Survey. We have asked the Chamber to provide us further clarification on the
survey data. The Chamber will present their findings to the EDA/Council at a future meeting.
Sherburne County EDA Meeting
On March 21, 2019, The Sherburne County EDA will discuss a tax abatement application from Jet Stream,
LLC and provide a recommendation to the Sherburne County Board. Jet Stream’s parent company, Google,
LLC requested a 20-year property tax abatement for constructing a 375,000 square foot data center on
approximately 315 acres in the Becker Business Park on excess land they would purchase from Xcel Energy.
The project would increase the existing annual property taxes by approximately $1,370,000. The county
portion of this increase would be approximately $390,000 per year. The 20-year tax abatement would equate
to approximately $7,800,000.
The estimated that the return to the county on that $390,000 annual investment would be over $7.5 million
per year in economic impact for the county from the direct, indirect and induced jobs. The total return could
reach $350 million when including the impact from the construction phase ($200+ million annual impact
during the 2-year construction phase and $7.5 million annual impact for the 20-year abatement).
Business Subsidy Reporting
All the state reporting forms have been prepared and we are waiting on two businesses out of seven to
st
report. The reports will be submitted to the state before the April 1 deadline.
Revolving Loan Fund Balance Reports
At the request of Commission, a copy of the Revolving Loan Fund report is attached.
Financial Impact
N/A
Attachments
Revolving Loan Fund Report
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
Current Current 3/14/19
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 $164,537.57 Y
Heritage Millwork 12/22/2016 $100,000 3.00%60 $965.61 $80,875.91 Y
Patriot Converting 5/5/2016 $200,000 3.00%60 $3,593.74 $90,272.53 Y
Ralphies#1 9/10/2013 $74,999 3.00%120 $724.20 $36,089.33 Y
Ralphies#2 8/28/2018 $19,175 3.00%60 $343.65 $17,384.17 Y
TOTAL MICRO LOANS $389,159.51 Micro Loan Fund 240
Distinctive Iron 3/3/2015 $126,000 2.03%60 $874.72 $93,655.15 Y
Scott Morrell LLC 8/6/2015 $200,000 2.00%60 $1,011.77 169,734.88 Y
Orluck 7/17/2018 $200,000 3.00%84 $2,642.66 182,707.97 Y
$446,098.00 DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 03/14/19:
Micro Loan Fund - 240 $835,152.43
State DEED Jobs Incentive - 242 $60,976.31