08-11-2003 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Angus[ 11, 2003 Page 5 Ms. Mehelich stated that the proposed budget does not include a contribution to the Initiative Foundation in 2004. The EDA budgeted $5,000 for 2003. Ms. Mehelich stated that staff recommends that commencing in 2004, the EDA consider either a biannual contribution of $5,000 or an annual contribution of $2,500 to the Initiative Foundation, up to the total amount requested from the City of Elk River ($9,929 net balance). It was decided that the EDA will contribute $2,500 in 2004 and review the request annually. Mr. Klaers noted that it maybe more appropriate for the EDA to approve the tax levy and wait on approval of the EDA budget until September after the HRA has a chance to discuss their budget as it related to sharing personal services. 9.2. Consider Resolution Regarding EDA Levy COMMISSIONER MOTIN MOVED TO APPROVE RESOLUTION 03-O1 ESTABLISHING THE TAX LEVY FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, MINNESOTA. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 6-0. 10. Consider Steve Whiting (Northstar Die Casting) Micro Loan Settlement City Attorney Peter Beck stated that Steve Whiting (Northstar Die Casting) contacted him and offered to settle for $3,000. Mr. Beck indicated that the total amount now owed by Mr. Whiting is $17,487.50 plus costs and interest. Mr. Beck stated that it was not his intent to settle for such a small amount but he would like some direction from the EDA. President Gongoll stated that the offer made by Mr. Whiting to settle for $3,000 is totally unacceptable. Commissioner Tveite suggested that the EDA waive the legal costs and interest and obtain judgment on the original amount owed. President Gongoll concurred. Director of Economic Development Catherine Mehelich noted that staff did agree to a $1,000 per month settlement with Mr. Whiting but no payments have been received since March 2002 and so judgment was filed. It was the consensus of the Commission for Mr. Beck to offer Mr. Whiting a counter settlement offer of $12,000 cash payment with the condition that if not paid within 30 days the amount will revert back to the total owed of $17,487.50 plus cost and interest and judgment will be transcribed in Florida, where Mr. Whiting currently resides.