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Economic Development AutltorityMinutes September 12, 2005 Page 3 Steinmeu reviewed the Provo Enterprises, LLC Micro Loan request. She stated that the Finance Committee reviewed the request on August 17, 2005 and recommended approval of the request. She reviewed the recommended teens of the Micro Loan. President Gongoll suggested that in the interest of time, that the City Council public hearing be waived, since it is not required by Statute for loans $100,000 or less. Commissioner Moon stated that he did not have an issue with waiving the public hearing, but that he did not want to set a precedence, since the Commission has held public hearings on other loans, when a public hearing was not required. President Gongoll noted that two public hearings for this project have akeady been held, although not for the Micro Loan component. MOTION BY COMMISSIONER MOTIN, SECONDED BY COMMISSIONER FARBER TO RECOMMEND APPROVAL OF THE APPLICATION FROM ALLIANCE MACHINE, INC. FORA $100,000 INDUSTRIAL INCENTIVE MICRO LOAN TO PROVO ENTERPRISES, LLC PER THE RECOMMENDATION OF THE FINANCE COMMITTEE AND TO WAIVE THE PUBLIC HEARING BASED ON THE FOLLOWING TERMS: RATE - FDCED, 2 POINTS BELOW PRIME WITH A THREE PERCENT FLOOR; TERM - 15-YEAR AMORITIZATION, UP TO A 5-YEAR BALLOON PAYMENT; SECURITY -SECURED BY 2NO POSITION ON THE REAL ESTATE, PERSONAL GUARANTEE FROM OWNERS AND SPOUSES; STRUCTURE -PARTICIPATION LOAN WITH THE BANK OF ELK RIVER; JOB PERFORMANCE AGREEMENT - 9 NEW FULL-TIME JOBS IN ELK RIVER WITH A $15.00 MINIMUM HOURLY WAGE. MOTION CARRIED 5-0. Commissioner Klinzing questioned the comment in the August 17, 2005 EDA Finance Corrunittee draft minutes regarding the appropriateness of the loan. Comrissioner Motin stated that the question was raised as to whether or not it was appropriate to give a low interest loan, as well as the Tax Abatement, and could this be considered "double-dipping" The Finance Committee will discuss this issue on September 28, 2005. Cotntnissioner Klinzing noted that it should be good discussion. 8. Outer Business President Gongoll introduced Scott Clark, the City's new Community Development Director. President Gongoll stated that a meeting with Great River Energy (GRE) was called by Senator Mike Jungbauer and his staff. Representatives from the City, the Senator's office and GRE were in attendance, including David Saggau, the new CEO, Larry Schmid, Rick Lancaster, and Mike Finley. He stated that Senator Jungbauer talked about Elk River as Energy City, the Mayor talked about the City's Preliminary Siting & Financing Proposal submitted on July 29, 2005 to GRE, and Vance Zehringer made a good presentation of the efforts and accomplishments of Energy City. Mr. Saggau of GRE stated that the GRE Board approved the headquarters relocation project, which means that they will begin looking for a site for their new headquarters and stated that Elk River is on their "short list".