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7.3. EDSR 11-16-2020 Request for Action Cir•ci Elk - River= To Item Number Economic Development Authority 7.3 Agenda Section Meeting Date Prepared by General Business November 16, 2020 Colleen Eddy, Economic Development Specialist Item Description Reviewed by EDA Update Cal Portner, City Administrator Reviewed by Action Requested Item presented for informational purposes. Background/Discussion Business Visits BR&E visits are being conducted via email surveys,phone calls, and in person. Staff has connected with 18 businesses so far with an emphasis on the manufacturing industry. Most have seen an increase in clients,which in turn lead has led to increased workforce and sales. COVID Loans The EDA serviced eight loan requests. Reporting forms were sent to the recipients and the forgivable loans have been recorded with the county. A grand total of$97,374 was expended from the $200,000 allocated to the program. Morrell Trucking Morrell Trucking's Microloan 5-year balloon was up on August 1, 2020. They have the option to request a 2-year extension or pay the balance in full. The payoff amount is $156,427.56 as of 9/1/2020. They continue making payments each month. They applied for an extension and staff is working with Baker Tilly on the financial analysis. A Joint Finance Committee meeting will be scheduled once the analysis is received. Shoot Steel Shoot Steel has yet to close as they have been working with their lenders on a financial review. They have submitted a main building permit,which is approved and pending payment. They expect to close this week. Public Art The grant was submitted on October 20, 2020. The contract between the EDA and Milligan Studio has been signed. Staff is working with Granite Shores on finalizing the license agreement. Riverwalk Apartments Sun Rae Apartments,LLC applied for Tax Increment Financing to construct two 89-unit apartment complexes at 17354 Zane Street,Elk River (formerly Saxon Motors). This project is proposed as a Redevelopment TIF District. The Joint Finance Committee reviewed the application at their regular meeting on September 29, 2020. The committee requested an appraisal of the property, further defined redevelopment costs,impact for spin off development and an environmental study. The applicant has yet to submit these documents to our financial analyst. The Elk River Vision P I I E R E I I Y A welcoming community avith revolutionary and spirited resourcefulness, exceptional INAWREJ service, and community engagement that encourages and inspires prosperity. Updated.August 2020 Marketing The EDA website redesign is almost complete. Staff is finalizing a video montage for the homepage showcasing our many businesses,parks, and community. Staff will be presenting on a panel along with the Cities of Rosemount and Brooklyn Park at the Real Estate Journal Industrial Summit.As a sponsor,we will be promoted in the event brochure. Promotion of the city continues even though this challenging time. Staff,like many others, continues to utilize Zoom calls to build and maintain relations with site selectors, developers, and other economic development professionals. Financial Impact N/A Mission/Policy/Goal The purpose of the Economic Development Authority pursuant to Minnesota Statutes and its affairs shall include, but not be limited to,promoting commercial and industrial growth and development within the City of Elk River. Attachments ■ N/A N:\Departments\Commiuiity Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda Packets\2020\11-16-2020\7.3 sr EDA Update.docx