Loading...
JFC Packet 7-25-2023 Joint Finance Committee Regular Meeting Agenda Tuesday, July 25, 2023 7:30 a.m. Elk River City Hall  Regular meeting in Upper Town Conference Room 1. CALL MEETING TO ORDER 2. CONSIDER AGENDA 3. CONSENT AGENDA Considered to be routine and noncontroversial by the commission and will be approved by one motion. There will be no separate discussion of these items unless a commissioner, staff member, or citizen so requests, in which case the item will be removed from the consent agenda and considered under the regular agenda. 3.1 March 28, 2023, Meeting Minutes 4. GENERAL BUSINESS General action items in which the commission receives information from city staff or consultants and after deliberation acts on the item under consideration. General Business items are not opportunities to receive or provide public input. However, the commission may, at its sole discretion, solicit public feedback. 4.1 Discuss EDA’s Loan to Die Concepts 5. MOTION TO ADJOURN Meeting Protocol No sidebar discussions No interruptions State your concern Ensure you understand Don’t take things personally Adhere to time limits Come prepared Ensure all are heard NOTICE OF MEETING Elk River Economic Development Authority and Housing and Redevelopment Authority meeting as the Joint Finance Committee Tuesday, July 25, 2023 7:30 a.m. Elk River City Hall 13065 Orono Parkway Elk River, Minnesota The purpose of the meeting is as follows:  Regular Business Items  Review of EDA Loan to Die Concepts Elk River Joint Finance Committee Held at Elk River City Hall Tuesday, March 28, 2023 Members Present: Dan Tveite, Jim Gromberg, Ryan Hardin, Chad Vitzthum, Jill Larson-Vito and Rhonda Magnussen (7:37 am) Members Absent: Nate Ovall, and Charlie Blesener Staff Present: Brent O’Neil, Economic Development Director, Joshua Mollan, Economic Development Specialist Others Present: Mikaela Huot (Baker Tilly), Ken Beaudry (Beaudry Oil) 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Joint Finance Committee was called to order by Chair Tveite at 7:35 a.m. 2. Consider Agenda Moved by Gromberg and seconded by Vitzthum to approve the agenda. Motion carried 5-0 (Magnussen absent). 3. Consent Agenda Moved by Larson-Vito and seconded by Hardin to approve: 3.1 November 29, 2022 meeting minutes Motion carried 5-0 (Magnussen absent). 4.1 Appointment of the Chair Mr. O’Neil stated that per committee bylaws, a chair is to be nominated and elected at the first meeting of every odd year for a two-year term. Mr. Gromberg nominated Chair Tveite to continue to serve as Chair of the Joint Finance Committee. Moved by Gromberg and seconded by Hardin to re-elect Dan Tveite as Chair of the Joint Finance Committee for a two-year term ending in 2024. Motion carried 5-0 (Magnussen absent). 4.2 Review Tax Abatement Application – Beaudry Lubricants/Harvest Reaper Mr. O’Neil introduced the Beaudry project and presented the site location. Mr. O’Neil introduced Ms. Huot (Baker Tilly) to present her review on the tax abatement application. Ms. Huot described the project and tax abatement request from Beaudry Oil and Propane and Harvest Reaper LLC of which the latter will be the recipient of the tax abatement. Ms. Huot’s analysis that this project warrants public assistance due to extraordinary site development costs. She estimates the city share to be $138,000 over 11 years. Chair Tveite shared that this project would be a good fit for the area. Mr. Beaudry shared that they would have liked assistance for the full 15 years but is happy with any city assistance supporting the project. Mr. Hardin asked if there needed to be any additional language to the motion in subject to county participation.Mr. O’Neil and Ms. Huot stated that the city review is for the city portion only and the item under consideration is for city tax abatement independent of the county’s participation. Moved by Gromberg and seconded by Larson-Vito to provide a recommendation to the City Council and EDA to approve this tax abatement Motion carried 5-0 (Vitzthum abstained). 4.3 Open Discussion Items Mr. O’Neil requested feedback to move forward with contacting a potential candidate for consideration as an at-large member of the Joint Finance Committee. The committee was agreeable to consider the applicant at the following meeting. 5.1 Announcements There were no announcements. 6. Adjournment There being no further business, Mr. Tveite adjourned the meeting at 7:58 a.m. Minutes prepared by Brent O’Neil and Joshua Mollan. _____________________ Tina Allard City Clerk ___________________ Brent O’Neil Economic Development Director The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: January 2023 Request for Action To Joint Finance Committee Item Number 4.1 Agenda Section General Business Meeting Date July 25, 2023 Prepared by Brent O’Neil, Economic Development Director Item Description Discussion on Die Concepts Loan Reviewed by Joshua Mollan, Economic Development Specialist Reviewed by Action Requested Provide advice and direction to staff on next actions regarding the EDA’s loan to Die Concepts. Background/Discussion Die Concepts received a loan from the EDA in 2016 in the amount of $185,000. Terms were set at 2% interest, 20- year amortization, and a balloon payment at the end of five years. In 2021, Die Concepts requested and was granted an extension to the loan in which payments continued at the same amount and the balloon was extended by two years. That balloon payment was to have been made in June 2023. The estimated principal owing is $129,000. Staff has been in contact with Die Concepts about this and about potential resolutions. One option Die Concepts would like the committee and EDA to consider is an extension of the loan term with a re-amortization of the loan over 36 months such that the loan would be paid in full at the end of a 36-month extension. Staff would like to discuss this option and all other options the committee may have, including the steps necessary to ensure the EDA’s interests are protected. The direction from the committee will drive next actions. Financial Impact The loan balance of the Die Concepts loan is approximately $129,000. Mission/Policy/Goal Support existing Elk River businesses. Attachments  None