09-09-2002 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes September 9, 2002 3.4. REVENUE/EXPENDITURE REPORT -APPROVED 3.5. BALANCE SHEET -APPROVED COMMISSIONER KOENIG SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. Ogen Mike No one appeared for open mike. 5. Consider Initiative Foundation Year 2003 Contribution Request Page 2 Executive Director Catherine l~Iehelich indicated that the Initiative Foundation is requesting the City's consideration fox a contribution of $5,000 in the year 2003. Catherine noted that the City Council recently reviewed the request and directed the request to be considered by the EDA. Catherine indicated that the Foundation does provide several economic programs that are ox could be of assistance to the City of Elk River. She noted that the program of the most use over the past two years has been the Seed Capital Program. She stated that the Foundation has funded two of the City's Incubator companies. Catherine reviewed other programs that the Foundation offers. COMMISSIONER DWYER MOVED TO APPROVE A $5,000 CONTRIBUTION TO THE INITIATIVE FOUNDATION IN YEAR 2003. COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION CARRIED 7-0. 6. Review First Draft of the Citv of Elk River Business Subsidv Policv Director of Economic Development Catherine blehelich indicated that the 2000 MN Business Subsidy Law requires subsidy grantors to establish "Business Subsidy Criteria" by May 2003. Catherine indicated that the first draft of the City's Business Subsidies Policy establishes a minimum wage across the board fox all business subsidies that the City, HRA, and EDA provide. Catherine recommended that the policy be reviewed by the EDA Finance Committee. Catherine reviewed the draft policy. Discussion was held regarding the $15.00 per hour minimum wage criteria proposed in the draft policy. The EDA questioned the criteria far determining the average wage. Catherine indicated that the Central Minnesota Initiative Foundation average wage rate is $13.25. President Gongoll indicated his concern that wage rates that axe too high could cause companies to look at locating in cities other than Elk River. Catherine noted that according to the MN Business Subsidy Law the City may deviate from the policy wage with a public hearing on the specific project.