11-29-2016 JFC MIN r
City of
Elk Meeting of the Elk River EDA Finance Committee
River . Held at the Elk River City Hall
Tuesday, November 29,2016
Members Present: Larry Toth, Ryan Hardin,Dan Tveite,Jennifer Wagner, Nate Ovall,and
Chad Vitzthum
Members Absent: None
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Staff Present: Amanda Othoudt, Economic Development Director and Colleen Eddy,
Economic Development Specialist
Also Present: Annie Deckert,Decklan Group;Dave from Heritage Millwork Inc.
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Finance Committee
was called to order at 7:35 a.m.
2. Consider Agenda
Motion by Wagner and seconded by Toth to approve the agenda. Motion carried 6-
0.
3.0 Consent Agenda
Member Wagner stated she would like to see the September 29, 2016 meeting minutes
revised to better reflect the discussion during the September 29, 2016 meeting. Motion to
approve.the September 29, 2016 meeting minutes was moved to the January 31, 2017
meeting. .
4.1 Heritage Millwork Industrial Incentive Microloan Application
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Member Vitzhum abstained from the discussion and vote as he is the applicant's loan
officer. Ms. Othoudt presented the staff report"Members discussed the terms of the loan,
the SBA guidelines,number of jobs being created,is it an equipment loan vs. real estate loan,
etc.
Motion by Wagner and seconded by'Ovall to approve the request in accordance with
the terms of the EDA'spolicy (10 year Am, 5 Year Balloon) and holding a 3rd lien
position on the equipment in addition to requiring the applicant to provide personal
and corporate guarantees. Motion carried 5-0. Vitzhum abstained from the vote.
Motion by Ovall and seconded by Toth to recommended approval of the loan request
in accordance with the SBA terms'specifically for this loan. The SBA's policy does
not allow any lender to have preferential terms. The applicant has submitted a
request to the SBA to make an exception to their policy,which would allow the EDA
to follow the terms of their existing microloan policy. Motion carried 5-0.Vitzhum
abstained from the vote.
4.2 EDA Microloan Policy Review
Ms. Othoudt reviewed the policy. Members discussed a variety of changes they would like to
see. Staff will revise as needed.
The Job Incentive Policy will be reviewed at the next EDA Finance Committee meeting.
5.1 Announcements
5.1 Ethanol Technology Verbal Update
Ms. Othoudt stated that there has been progress made on the case. She is waiting to hear
from the Judge regarding a hearing date. Members asked what the cost has been associated
with resolving this case. Ms. Othoudt stated she will put some numbers together and report
back to the board at the January meeting.
6. Adjournment
There being"no further business Chair Tveite moved to adjourn the meeting at 9:10 a.m.
Minutes prepared by Colleen Eddy.
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Tina rd, City Clerk
anda Othoudt, Economic Development Director