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04-29-2020 EDA MIN SPECIAL 1.4 .., 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 I. 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 p.m. by President Tveite. III 2. Roll Call President Tveite completed roll call. Commissioners Westgaard and Ovall were absent. 3. Small Business Marketing Campaign Commissioner Wagner proposed a Together Elk 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. Commissioner Blesener 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. 1111 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 111 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 of the far-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 Flit River. She stated she prefers the Elk River High School mascot colors because it is Ill 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. Motion carried 6-0. Moved by Commissioner Christianson 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. III ► RMERER R1 NATURE Economic Development Authority Minutes Page 3 April 29,2020 III4. 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 versus property ownership issues and the administrative time deciphering this would burden staff. President Tviete asked if there have been inquiries regarding relief from local businesses. elMs. Othoudt stated none through the city or county. Commissioner Wagner noted 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 IIIloan and suggested reviewing loan amount options and adjusting terms. 1P—011EIEI it NATURE Economic Development Authority Minutes Page 4 April 29,2020 Commissioner Ovall felt this situation was different due to businesses being required IIIto 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/burden. III Commissioner Blesener expressed the same 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 program for property tax relief. Commissioner Wagner is there a reason for the limit on$5,000 as the max noting some 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. III PalEREI BY NATURE 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. P Ste_ Dan Tveite,ED resident Tina Allard,City Clerk po , ERE1 11 NA1 E