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10-11-1999 EDA MIN e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 11,1999 Members Present: President Dwyer; Commissioners Bender, Gongoll, Klinzing, Thompson, Farber, and Motin Members Absent: None Staff Present: Executive Director Paul Steinman; City Clerk Sandra Peine; City Attorney Peter Beck 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 6 p.m. by President Dwyer. 2. Consider Agenda "Marketing plan" listed under Other Business was removed from the agenda. COMMISSIONER GONGOLL MOVED TO APPROVE THE 10/11199 EDA AGENDA AS AMENDED. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0. e 3. Consider Consent Agenda COMMISSIONER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. 9113/99 EDA MINUTES - APPROVED 3.2. CHECK REGISTER - APPROVED COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. Open Mike No one appeared for this item. 5. Consider ProTech Enaineerina Micro Loan Request Executive Director Paul Steinman explained that Brad Butalla and John House have requested a supplemental micro loan of $50,000 to assist in the start up of their new company, ProTech Engineering. He indicated that the EDA Finance Committee met to consider this issue and recommended to approve the loan. Paul Steinman reviewed the micro loan criteria and indicated that ProTech Engineering exceeds that criterion. Brad Butalla of ProTech Engineering and the other members of his business introduced themselves. . COMMISSIONER GONGOLL MOVED TO APPROVE A MICRO LOAN FOR PROTECH ENGINEERING IN THE AMOUNT OF $50,000 CONTINGENT UPON THE STIPULATIONS REQUESTED BY THE EDA FINANCE COMMITTEE. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. Elk River Economic Development Authority Minutes October 11. 1999 Page 2 e 6. Consider Alternatives to Pursue Collection from Northstar Die Casting Executive Director Paul Steinman explained that Northstar Die Casting was granted a micro loan in the amount of $50,000 from the EDA in 1998. He indicated that the company has recently went out of business and merged the assets of the company with another company. He further noted that Northstar Die Casting has not made a payment on the micro loan since February 1999, and owes approximately $47,000 plus interest. Paul Steinman reviewed the actions the city has taken to collect on the loan. City Attorney Peter Beck indicated that the legal process is underway and complaints have been served in an attempt to collect the money owed to the city. President Dwyer stated that his recommendation is to pursue the legal process in an attempt to get a judgment against the guarantors of the loan and that he would not recommend a settlement of less than what is owed. It was the consensus of the EDA to pursue the legal process in this matter. 7. Other Business Initiative Foundations Letter e Executive Director Paul Steinman indicated that the Initiative Fund recently made a presentation to the City Council requesting a contribution based on a per capita estimate. Paul Steinman informed the EDA that the city and EDA both contributed money in 1997 totaling $5,000. He indicated that in 1998, both the EDA and council voted not to provide any further contributions to the Initiative Fund. It was the consensus of the EDA that it did not wish to contribute any more money to the Initiative Fund. COMMISSIONER BENDER MOVED THAT THE CITY'S TOTAL CONTRIBUTION REMAIN AT $5,000, WHICH HAS ALREADY BEEN DONATED. COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Adiournment There being no further business, COMMISSIONER THOMPSON MOVED TO ADJOURN THE MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Elk River Economic Development Authority was adjourned at 6:27 p.m. J I. Q.'~I ~~~ Sandra Peine City Clerk .