10-21-2024 EDA MIN
Meeting of the Economic Development
Authority
Held at the Elk River City Hall
Monday, October 21, 2024
Members Present: Chair Dan Tveite, Commissioners Cory Grupa, Matt Westgaard, Jeff Hartwig,
Mike Beyer, Jennifer Wagner, and Charlie Blesener
Members Absent: None
Staff Present: Economic Development Brent O'Neil, Economic Development Specialist Joshua
Mollan, and Recording Secretary Katie Porath
1. CALL MEETING TO ORDER
Pursuant to due call and notice thereof, the meeting was called to order at 5:30 PM.
2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
3. CONSIDER AGENDA
Moved by Commissioner Jennifer Wagner and seconded by Commissioner Matt
Westgaard to approve the agenda. Motion Carried 7-0.
4. CONSENT AGENDA
Moved by Commissioner Cory Grupa and seconded by Commissioner Jeff Hartwig to
approve the following consent items as outlined in their respective staff reports. Motion
Carried 7-0.
4.1 Draft EDA Minutes - August 19, 2024 and September 16, 2024
4.2 Check Register
4.3 Balance Sheet
4.4 Revenue/Expenditure Reports
5. OPEN FORUM
No one appeared for Open Forum.
6. PUBLIC HEARINGS
Economic Development Authority Minutes
October 21, 2024
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Page 2 of 3
There were no public hearings.
7. GENERAL BUSINESS
7.1 Loan Extension Request - Hemmer Companies
Mr. Mollan presented the staff report.
Moved by Commissioner Matt Westgaard and seconded by Commissioner Mike Beyer to
adopt Resolution 24-06 approving the loan extension for Hemmer Companies (Distinctive
Iron) and authorization to execute the amended loan documents as outlined in the staff
report. Motion Carried 7-0.
7.2 Loan Request - Modern Construction of MN
Mr. O'Neil gave an update on the downtown development of Tipsy Chicken. Owner Jesse Hartung has
requested a Downtown Incentive program loan from the EDA but has not met some of the
requirements. The program requires a 10% commitment from the owner, therefore, the amount of the
recommended loan was reduced from $75,000 to $51,499. There are also requirements that the
project does not begin before the loan is awarded and some work has been started.
Commissioner Grupa asked about the city's interest rate being at 3% whereas loan rates are currently
around 11%.
Mr. O'Neil commented that it could be changed and the Joint Finance Committee has talked about
recommending changes to the rate structure.
Commissioner Blesener stated that the purpose of the funds is to encourage small businesses and
keeping the interest rate low would be more appealing. The EDA is not a bank, but the funds have been
underutilized thus far.
Commissioner Beyer asked if Mr. Hartung had been informed of the change in the loan amount. Mr.
O'Neil stated he had been informed.
Commissioner Wagner commented that the packet Staff Report stated the outlay would need to be
repaid by December 31, 2023 and that should be corrected to 2029.
Moved by Commissioner Charlie Blesener and seconded by Commissioner Jeff Hartwig to
adopt Resolution 24-07 approving a business microloan to Modern Construction of
Minnesota in the amount of $51,499 with a change to outlay repayment date from 2023 to
2029 as outlined in the staff report. Motion Carried 7-0.
7.3 General Updates
Mr. Mollan gave an update on the of the Beautification Award, with the committee recommending
Wayne Swart State Farm Insurance Agency. A "Development Minute" segment was filmed at
Thunderstruck Exteriors. The public art reveal at the Furniture and Things Community Event Center is
currently scheduled for November 25, 2024 at 2:00 p.m.
Economic Development Authority Minutes
October 21, 2024
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Page 3 of 3
Mr. O'Neil gave an update that staff is working on the closing of the Foxhaven property on 185th
Street. Kwik Trip is looking at late 2025/2026 construction. He asked if the EDA may be available for a
special EDA meeting on November 4, 2024 if needed to discuss the project. Mr. Mollan and Mr. O'Neil
will be attending the Minnesota Commercial Association of Real Estate/Realtors (MNCAR) event where
they have a booth and meet with area brokers about available properties in Elk River. They are also
helping with the Chamber of Commerce "cool jobs tour".
8. MOTION TO ADJOURN REGULAR MEETING
Moved by Commissioner Jennifer Wagner and seconded by Commissioner Cory Grupa to
adjourn the meeting. Motion Carried 7-0.
The meeting adjourned at 5:50 PM
Minutes prepared by Katie Porath.
___________________________
Dan Tveite, EDA President
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Tina Allard, City Clerk