7.0. EDSR 02-13-2006 - Laserfiche WebLink

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MEETING OF THE EDA FINANCE COMMITTEE HELD AT THE ELK RIVER CITY HALL WEDNESDAY, SEPTEMBER 28, 2005 Members Present: Chris Carlson, Cliff Lundberg, Tom McNair, Paul Motin, Dave Rymanowski and Dan Tveite Staff Present Community Development Director Scott Clark and Assistant Director of Economic Development Heidi Steinmetz 1. Accept August 17. 2005 EDA Finance Committee Minutes MOVED BY PAUL MOTIN AND SECONDED BY TOM MCNAIR, THE FINANCE COMMITTEE MOVED TO ACCEPT THE AUGUST 17, 2005 FINANCE COMMITTEE MINUTES. 2. Discuss the level of financial assistance provided to manufacturing companies entering the Citv of Elk Ricer Community Development Director Scott Clark indicated that this meeting was prompted by Badger Ventures, LLC and Provo Enterprises, LLC receiving both Tax Rebate Financing (1RF) and Micro Loans for the construction of manufacturing facilities in Elk River. Finance Committee member Tom McNair stated that the Micro Loan program should not be too restrictive because the fund balance is high and is not being used. He added that the loan fund is a better subsidy tool than Tax Rebate Financing because it is an investment as opposed to forgiving taxes for a period of years. Finance Committee member Dan Tveite added that TRF is a tool that forgives taxes the City would not have without the project. Finance Committee member Paul Motin stated that the level of financial assistance provided to Elk River manufacturing companies should not be a matter of providing one program over another. Tom McNair reminded the Committee and staff that the amount of subsidy offered through a Micro Loan is only the amount of interest saved by the company, not the entire loan amount. Paul Motin said that he has no problem offering more than one subsidy to a company, as long as the City's process used to offer an appropriate financing package is more transparent. Dan Tveite concurred. Finance Committee member Cliff Lundberg asked if the EDA could develop a subsidy application that combines more than one program, which may allow fox more transparency. Community Development Director Scott Clark said that this would be possible but stressed the importance of ensuring that the subsidy applications/process is clearly explained to applicants and that all subsidies used fox a project must be included in the project's sources and uses upfront. Finance Committee members Dave Rymanowski and Tom McNair indicated that the issue under discussion seems to be more about the City's application process rather than the amount of subsidy offered.