7.2. EDSR 11-18-2019 Request for Action
To Item Number
Economic Development Authority 7.2
Agenda Section Meeting Date Prepared by
General Business November 18, 2019 Amanda Othoudt, ED Director
Item Description Reviewed by
Director 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 18 BR&E visits with more scheduled. Please RSVP if you are able to attend.
MISCELLANEOUS
Public Art Initiative
The RFP for Public Art has been published online, submitted to local artists, and sent to the Central MN
Arts Board. We have four registered artists. Proposals are due December 6, 2019.
MN Real Estate Journal – Industrial Development Summit
The EDA sponsored the MN Real Estate Journal Industrial Development Summit. Staff attended along
with over 200 developers, real estate brokers and other economic development professionals. Amanda
participated on the Working with Local Government to Build Lasting Product panel along with the City
of Cambridge, City of Lakeville and Washington County. The panel was moderated by a Jeff Borling of
Great River Energy. The topics highlighted on the panel consisted of which industrial parks are attracting
the most attention, what tools or strategies do communities identify as game changing economic
development tools, funding strategies and redevelopment/development processes etc. As a sponsor we
also staffed a booth where we distributed various marketing materials.
Elk River Municipal Utility (ERMU) – Competitive Energy Rates
This month, ERMU adopted a large electric customer energy only rate which follows real-time MISO
market pricing. This rate was adopted proactively to gain the opportunity to talk to the very large data
centers. This energy only rate follows the real-time of pricing of the Midcontinent Independent System
Operator (MISO) grid passing on the savings, and risks, and all the pricing volatility to the customer.
This is what the very large data centers are asking for.
This new rate is in addition to the new "large demand customer electric rate" for 2019. This is a lower
rate than the normal demand customer electric rate because it has size and voltage requirements.
Finally, the EDA Energy Incentive Program that we implemented late last year just got better! To qualify
for the incentive, the customer needed to be in an area of Elk River where payment in lieu of taxes
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
(PILOT) was being paid. Basically, the EDA couldn't waive something that wasn’t happening. The
ERMU Commission just revised our PILOT policy so that all ERMU electric customers are included in
the PILOT calculation. This effectively opens up the option to use this EDA Energy Incentive Program
in Natures Edge Business Parks and all of the recently acquired Connexus territory. This may become a
more powerful business recruitment tool for the EDA.
Revolving Loan Fund Balance Reports
At the request of the 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 11/14/19
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 $159,205.59 Y
Heritage Millwork 12/22/2016 $100,000 3.00%60 $965.61 $74,713.33 Y
Ralphies#1 9/10/2013 $74,999 3.00%120 $724.20 $30,972.92 Y
Ralphies#2 8/28/2018 $19,175 3.00%60 $343.65 $14,954.28 Y
TOTAL MICRO LOANS $279,846.12 Micro Loan Fund 240
Distinctive Iron 10/1/2019 $126,000 2.03%60 $1,050.07 189,338.20$ Y
Scott Morrell LLC 8/6/2015 $200,000 2.00%60 $1,011.77 163,869.73 Y
Orluck 7/17/2018 $200,000 3.00%84 $2,642.66 167,291.51 Y
$520,499.44 DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 11/14/19:
Micro Loan Fund - 240 $862,112.88
State DEED Jobs Incentive - 242 $97,181.83