Loading...
4.1. DRAFT MINUTES (2 SETS) 05-18-2020 VA City of Elk Virtual Meeting of the Elk River River Economic Development Authority Held at the Elk River City Hall Monday, April 20, 2020 (Due to COVID-19 Pandemic) Members Present: President Dan Tveite, Commissioners Garrett Christianson, Matt Westgaard, Nate Ovall,Jennifer Wagner,Jeff Hartwig, and Charlie Blesener Members Absent: None Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy, and Records Specialist Katie Porath I. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development AuthorM,was called to order at 5:30 p.m. by President Tveite. 2. Roll Call _ 3. Consider Agenda Item 7.5 was added to the agenda. Moved by Commissioner Christianson and seconded by Commissioner Westgaard to approve the agenda. Motion carried 7-0. 4. '''Consider Consent Agenda Moved by Commissioner Blesener and seconded by Commissioner Ovall to approve the following consent agenda: 4.1 March 16, 2020, Special Meeting Minutes 4.2 Check register as outlined in the staff report. 4.3 Balance sheet as outlined in the staff report. 4.4 Revenue/expenditure report as outlined in the staff report. Motion carried 7-0. S. Open Forum No one appeared for Open Forum. Economic Development Authority Unutes Page 2 April 20,2020 ----------------------------- 6.1 Jobs Incentive Microloan Modification for Orluck Industries, Inc. President Tveite opened the public hearing. Ms. Othoudt presented the staff report.Jeff Orluck, from Orluck Industries,was present to answer questions from the EDA. President Tveite closed the public hearing. The Commission felt that Orluck Industries had given them a good faith response and met their requirements in the past, therefore, the commission should give them the opportunity to get backup to employment levels. 410 The Commission recommended extending the Microloan for 12 months. Moved by Commissioner Westgaard and seconded by Commissioner Christianson to approve compliance date extension with respect to business subsidy provided to Orluck Industries, Inc. Motion carried 7-0. 7.1 Public Art RFP Ms. Othoudt presented the staff report. Moved by Commissioner Blesener and seconded by Commissioner Westgaard to approve the amended Public Art Request for Proposal. Motion carried 7-0. 7.2 EDA Strategic Plan Contract with Stantec Consulting Services, Inc. Ms. Othoudt presented the staff report. #Commissioner Blesener asked if there had been an discussion on how to modify in- person research and citizen engagement that may not be allowed due to social distancing regulations. Ms. Othoudt felt Stantec was as accommodating as possible and planned to have in person meetings if allowed. Some aspects may need to be modified because of COVID-19. Moved by Commissioner Wagner and seconded by Commissioner Westgaard to approve a professional service agreement with Stantec Consulting Services Inc. Motion carried 7-0. NATUREI Economic Development Authority Minutes Page 3 April 20,2020 ----------------------------- 7.3 Modification to the Jobs Incentive Microloan Policy funded by State DEED Money Ms. Othoudt presented the staff report. The Commission felt the item should be brought to a work session in the future. Moved by Commissioner Westgaard and seconded by Commissioner Hartwig to modify the Jobs Incentive Microloan Policy funded by State DEED money. Motion carried 7-0. 7.4 Director Report Ms. Othoudt presented the staff report. 7.5 Keep Ellc River Open Public Relationsr, am ai n Commissioner Wagner outlined a joint effort between the EDA and hamber of Commerce to help encourage small businesses and restaurants in Elk River and create a sense of community pride and unity. Different marketing tools would be utilized and approximately$9,000-had been identified as a budget. Debbi Rydberg, Executive Director of the Elk River Chamber of Commerce, added that the initiative would promote shopping and investing locally. While this campaign may be reactionary to COVID-19,it would also help develop community engagement for when the Highway 169 Redefine project started. Commissioner Ovall wondered about tangible measures of success. He believed that Elk River already strongly supported the idea of"shop local". He hoped for something actionable such as a YouTube video of how a local business was adapting or how customers could support them. Commissioner Christianson agreed and suggested comparing what a dollar was ,worth here versus somewhere else. Commissioner Westgaard wondered if dollars could be repurposed such as a hiatus on franchise fees or utility bills. He felt it was a bigger conversation than just the EDA and should include a partnership with the HRA, Council, and Utilities. Commissioner Blesener suggested addressing Commissioner Westgaard's suggestions at a future work session. He cautioned using the term "open" since it was receiving negative attention at governor protests. President Tveite suggested using 1/3 to 1/2 of the allocated budget for the campaign and retaining the remainder until they could discuss it more thoroughly. l F 0 W I R 1 0 0 Y UREJ Economic Development Authority Unutes Page 4 April 20,2020 ----------------------------- Commissioner Wagner stated she will work with the Chamber of Commerce and Ms. Othoudt on the campaign. Commissioner Ovall stated he was open to having special meetings in order to expedite this plan. Ms. Othoudt will discuss some possible dates for a special meeting with the commissioners but there needed to be at least three days' notice before a special meeting could be held. 8.1 Economic Development Business Microloan Fund Discussion This item was tabled to a future meeting. 40%k Moved by Commissioner Wagner and seconded by Commissioner Christianson to table Item 8.1 until a future meeting due to time constraints. Motion carried 7-0. 9. Adjournment There being no further business, President Tveite adjourned the meeting of the Elk River Economic Development Authority at 6:29 p.m. Minutes prepared by Katie Porath. Dan Tveite,EDA President Tina Allard, City Clerk PRwIR19 ® r NATURE] City of Elk Special Meeting of the Elk River River Economic Development Authority Held at the Elk River City Hall Wednesday, April 29, 2020 Members Present: President Dan Tveite, Commissioners Garrett Christianson,Jennifer Wagner,Jeff Hartwig,Nate Ovall (2:40 p.m.), and Charlie Blesener Members Absent: Commissioner Matt Westgaard Staff Present: Economic Development Director Amanda Othoudt, Economic Development Specialist Colleen Eddy, and Senior Communications Coordinator Kaylin Clement. Also Present: Elk River Area Chamber of Commerce Executive Director Debbie Rydberg Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 2:31 in. by President Tveite. 2. Roll Call President Tveite completed roll call. Commissioners Westgaard and Ovall were absent. Im AD 3. Small Business Marketing Campaign Commissioner Wagner proposed a TogetberElk River campaign to support local businesses due to the hardships from the COVID pandemic and the State Order mandated closures. She reviewed budgeting billboards, downtown banners (in partnership with the Housing and Redevelopment Authority), social media,press, newsletter,yard signs,and decals. She thanked Franklin Company for their billboard donation. Commission esener asked about banners along Highway 10. Ms. Othoudt stated there are 22 light poles downtown were planned for banners. Commissioner Christianson suggested adding Highway 10 due to the amount of slow traffic on the route. Commissioner Wagner noted it was not in the budget but could be considered. President Tveite stated he had stakes he could donate for the yard signs. Economic Development Authority Minutes Page 2 April 29,2020 ----------------------------- Commissioner Blesener encourages Elk River Municipal Utilities to acquire the bracket for the light poles for Highway 10 being they are planning on replacing them soon anyway. Commissioner Wagner reviewed draft logo concepts noting they are not final. Commissioner Christianson stated the first logo is the only one of the four shown that best explains the concept,noting it is also more visually appealing. Commissioner Ovall arrived. President Tveite stated he preferred the simplicity o£,the£ -right logo noting it shows the "together" concept more prominently. Commissioner Blesener noted the urgency in moving this campaign along and mentioned additional resources available for design work. Commissioner Ovall stated he preferred the first logo but with some color changes for the messaging to stand out better. Commissioner Wagner stated, coming from a small town that was all one brand, whether city or school,it is difficult for her to accept the differing brands in Elk River. She stated she prefers the Elk River High School mascot colors because it is more representative of the community=with the black, red,grey, and white color scheme. She reviewed the partnerships in the program as noted in her presentation. Moved by Commissioner Ovall and seconded by Commissioner Blesener to authorize the reallocation of$9,000 from the conferences, travel, and marketing budgets to fund the Together Elk River marketing campaign. `or Motion carried 6-0. Moved by Commissioner hristianson and seconded by Commissioner Hartwig to authorize a subcommittee consisting of two commissioners to work with staff on finalizing a logo, marketing materials. Motion carried 6-0. Ms. Othoudt asked for subcommittee member names. Moved by Commissioner Christianson and seconded by Commission Ovall to appoint Commissioners Wagner and Blesener to the subcommittee. Motion carried 6-0. President Tviete suggested trademarking the logo. UREJ Economic Development Authority Minutes Page 3 April 29,2020 ----------------------------- 4. Economic Development Business Micro Loan Program Ms. Othoudt presented the staff report. Commissioner Ovall questioned if there were any restrictions on forgivable loans or grant funds. Ms. Othoudt stated the microloan fund is the most flexible allowing the Authority to write its own program. She stated it is funded by taxpayers through the EDA levy. Commissioner Ovall stated lot of these businesses in are the gathering places in our community and are the most volatile as they work very hard for the lowest margin and have the highest taxes associated with them. He stated he would like to create a simple but significant program that will not overwhelm staff. He stated property taxes were a loud and clear concern in a recent survey. He questioned creation of a forgivable property tax relief program for the businesses shut down by the State Order. The Authority discussed leases versuseperty ownership issues and the administrative time deciphering this would burden staff. President Tviete asked if there have been inquirie egarding relief from local businesses. Ms. Othoudt stated none throug the city or county. Commissioner Wagner n °'ted it is still early in the pandemic and everyone is waiting to see what happens. She feels the requests will come and the Authority needs to be proactive. Commissioner Blesener stated the list of businesses in the State Order is extensive. He'stated he likes both options by staff and Commissioner Ovall. He noted the city's portion of the property tax bill is only one-third of the total bill. Commissioner Ovall stated the last thing a business wants are loans and repaying things over time. He stated it is in the discretion of the Authority to set the dollar limit for the relief and questioned if they want to rebate the city amount or the full amount. He stated he would like to address the fixed overhead burden for a business. Commissioner Blesener questioned program funding. Ms. Othoudt stated the fund balance for the microloan program is $884,000. She stated the maximum loan through this program is $200,000. She stated if$200,000 were put into a property tax relief program,there would be funds left in the program to only assist three businesses. She expressed concerns with offering grants versus a loan and suggested reviewing loan amount options and adjusting terms. UREJ Economic Development Authority Minutes Page 4 April 29,2020 ----------------------------- Commissioner Ovall felt this situation was different due to businesses being required to shut down through no fault of their own. He stated the Authority has this large pool of funds that truly has not been revolving and he doesn't have issues returning to taxpayers in the form of a grant program if it accomplishes the objectives wanted. He suggested capping the program at$200,000. Commissioner Christianson concurred noting it would stimulate the local economy. President Tviete concurred and would like a cap on the total amount plus each individual loan amount. He further suggested $5,000 per application for the year 2020. He stated it sends the message that the city is in this with you and will take on our share of the property tax. There was further discussion on how determine who is can apply and the breakdown considerations between property owners and lease holders, and the simplicity of the program. Ms. Othoudt stated this program would need evaluation by the city attorney. Commissioner Wagner questioned if the EDA is also considering the microloan option. Commissioner Ovall stated he is open to adding the loan program but expressed concern with $5,000 loans and staff time/burde ia Commissioner BlesJener • ressed th me concerns and noted the simplicity of the other example community loan programs presented earlier. President Tveite summarize agree on Fifth Microloan and direction to discuss with attorney a rogram for property tax relief. r' me issioner'Wagner is there a reason for the limit on$5,000 as the max noting businesses may be more interested in$10-$15,000. President Tviete agreed businesses may not want to fill out the paperwork for such a small loan amount. Commissioner Ovall suggested a max of up to $20,000 for the loan program. He stated he would be willing to work with staff on the programs. The Authority agreed on working toward establishing a fifth microloan program and provided staff direction to discuss the property tax relief program with the city attorney. UREJ Economic Development Authority Minutes Page 5 April 29,2020 ----------------------------- 5. Adjournment There being no further business,President Tveite adjourned the meeting of the Elk River Economic Development Authority at 4:02 p.m. Dan Tveite,EDA President Tina Allard, City Clerk p 0 w I R 1 0 0Y ot4MVR