06-14-2004 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes June 14, 2004 Page 4 President Gongoll wished to thank the Finance Committee for their review of this policy. Ms. Steinmetz reported on the recommendation from the Finance Committee for the approval of a micro loan to Badger Ventures. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER TVEITE TO APPROVE THE $100,000 MICRO LOAN TO BADGER VENTURES, LLC WITH THE FOLLOWING TERMS: • Rate -fixed, 2 points below prime with a 3% floor; • Term - IS-year amortization, up to a 5-year balloon payment but not later than balloon on the bank's permanent loan; • Security -Secured by 2"d position on the real estate, personal guarantee from owners and spouses; • Structure -participation loan with The Bank of Elk River; • Job performance agreement - to include 5 new full-time jobs in Elk River with estimated wages ranging from $15-$75.00 per hour within 2 years. MOTION CARRIED 7-0. Ms. Mehelich reported staff's analysis of the resolved issues related to the tax rebate request. MOVED BY COMMISSION KOENIG AND SECONDED BY COMMISSIONER TVEITE TO RECOMMEND TO THE CITY COUNCIL THE APPROVAL OF THE TAX REBATE FINANCING FOR $72,778 ON A PAY-AS-YOU-GO BASIS FOR UP TO TEN YEARS TO BADGER VENTURES, LLC. MOTION CARRIED 7-0. g. Other Business Ms. Mehelich reviewed the distributed handout regarding relocation of ABRA Auto Body to Mulvaney Point Business Park. The Planning Commission had discussed the relocation request at their meeting of May 11, 2004 and felt that a tightly written text amendment to the Business Park ordinance would be the most appropriate choice m order to allow ABRA to relocate within the Mulvaney Point area. Ms. Mehelich stated that she understands from the Director of Planning that she anticipates the draft language to be able to come before the EDA at its July meeting. She requested the EDA's feedback regarding the potential change to the Business Park District ordinance. Commissioner Klinzing stated that she feels this business may not be a fit for that area; that she envisions that area to be an office park; it has been started that way and should continue that way. Commissioner Motion stated that he concurs with that and questions where the Post Office would be relative to the subject parcel.