07-25-2023 JFC MIN
Elk River Joint Finance Committee
Held at Elk River City Hall
Tuesday, July 25, 2023
Members Present: Dan Tveite, Jim Gromberg, Ryan Hardin, Jill Larson-Vito, Nate Ovall, and
Charlie Blesener
Members Absent: Rhonda Magnussen and Chad Vitzthum
Staff Present: Economic Development Director Brent O’Neil and Economic Development
Specialist Joshua Mollan
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 at 7:32 a.m. by Chair Tveite.
2. Consider Agenda
Ovall asked to add Item 4.2, an update on the Orluck Loan.
Moved by Larson-Vito and seconded by Gromberg to approve the agenda.
Motion carried 6-0.
3. Consent Agenda
Moved by Hardin and seconded by Larson-Vito to approve:
3.1 March 28, 2023, meeting minutes
Motion carried 6-0.
4.1 Discuss EDA’s Loan to Die Concepts
Mr. O’Neil presented the staff report.
The committee members showed interest in supporting a workout that would include an up
to 36-month extension. They also showed interest in updating the interest rate on the loan
from 2% to 3-5% depending on if repayment would be made with autopay or not.
Ovall suggested requesting 2022 tax returns, year end statements, internal YTD financial
statements, and a debt schedule to determine cash flow, all prior to providing the
extension/refinance with updated terms.
To expedite the process, the committee did not suggest requiring the applicant to provide a
letter from a bank regarding a traditional refinancing.
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The committee was in favor of reconvening for a tentative special meeting on August 15 at
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7:30 a.m. to make any final recommendations prior to the EDA meeting on August 21.
Mr. O’Neil advised that the city is looking at upgrading their financial management software
and that he requested them to look into a revolving loan fund module to assist with
managing EDAs loans.
Ovall suggested that staff look into CEE being responsible for housing the loan and
monthly payment tracking.
4.2 Orluck Loan Update
Mr. O’Neil advised that an assignment and assumption agreement was approved with Twin
City Metal Works and Orluck Industries in late fall of 2022, however, at this time, the
agreement has not been received by the city. It was reported that payments are current.
5. Motion to Adjourn
Moved by Ovall and seconded by Blesener to adjourn the meeting of the Joint
Finance Committee.
Motion carried 6-0.
The meeting adjourned at 8:17 a.m.
Minutes prepared by Brent O’Neil and Joshua Mollan.
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Brent O’Neil
Economic Development Director
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Tina Allard
City Clerk