06-23-2014 JFC MIN
Meeting of the Elk River EDA Finance Committee
Held at the Elk River City Hall
Monday, June 23, 2014
Members Present: Dan Tveite, Cliff Lundberg, Paul Motin, Larry Toth
Members Absent: Nate Ovall and Chad Vitzhum
Staff Present: Economic Development Director, Brian Beeman, Economic
Development Specialist, Colleen Eddy
Others Present: Springsted Consultant, Mikaela Huot
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 7:50 a.m. by Brian Beeman.
3.1 Minutes
Members discussed two changes be made to the June 9, 2014 meeting minutes; Nate
Ovall has two l’s in his name and Mikaela Huot’s last name was printed twice.
Moved by committee member Lundberg seconded by Motin to approve the
June 9, 2014 meeting minutes as presented. Motion carried 4-0.
4.1 Fourth Microloan Policy
Director Beeman directed members to review the updated Microloan Fund Policy
before it is presented at the next EDA meeting.
The committee members recommended some revisions be made to the policy
pertaining to:
No working capital except for relocation expenses related to the project,
developer must spell out relocation costs and can’t exceed the lessor of
$25,000 or 20% of the loan amount
Criteria: Borrower must create one new full-time job for each
$20,000 loaned, retain one new full-time job for each $10,000
loaned, or combination of retainage and creation. All new jobs
must be created within 2 years and retained for the period of the
loan.
Committee member Lundberg asked how the job creation information is verified.
Director Beeman stated that the businesses are required to complete a Jobs and
Reporting report to the city, who submits it to the state.
City Finance Committee Minutes Page 2
June 9, 2014
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Committee member Tveite asked if the refinancing portion of the microloan should
be removed since it is an ineligible use. Minor adjustments will be made to the policy
then submitted to the EDA.
Moved by committee member Lundberg seconded by Motin to approve the
Microloan Fund Policy and Guidelines, as presented. Motion carried 4-0.
4.2 Ethanol Technology Default
Director Beeman asked the Committee members how they would like to proceed, as
Director Beeman has not received a response from First National Bank. President
Tveite, on behalf of the EDA Finance Committee, stated that he would contact First
National Bank.
5. Adjournment
There being no further business, Director Beeman adjourned the meeting of the
Finance Committee at 8:15 a.m.
Minutes prepared by Colleen Eddy.
_____________________
Tina Allard, City Clerk
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Brian Beeman, Economic Development Director