7. EDSR 07-10-2006 - Laserfiche WebLink

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EDA Finance Committee ;bLnutes Page 3 June 14, 2006 Section III. 1. Permitted Fund Uses d. Furniture, fixtures, and equipment Mx. McNair suggested that a clarification be made within the Policy verbiage regarding whether the Rehabilitation Financing Program is specific to building rehabilitation or if business development items can be included. The Committee discussed this issue at length and determined that the original and primary intent of the pxogxam was specific to the rehabilitation or restoration of downtown buildings, which in downtown Elk River's case is geared towards property owners since most business owners axe renters within the downtown. Examples raised included a new business that would lease space in The Blu~' building that would not need rehabilitation ox a recently rehabbed building with a new owner ox business locating in it. The Committee consensus was that business owners should also be allowed access to the program fox assistance with things such as purchasing fixtures and equipment necessary fox the real estate and/or business with the understanding that the project is required to still have a building rehabilitation component. -"-~ 4. Added Agenda Item• Proposed Energy Improvement Loan Pxogxam Update Heidi Steinmetz summarized the EDA's recent discussions regarding exploring the option of utilizing the Business Incubator Pxogxam fund balance ($133,095) towards developing a new low-interest loan pxogxam, as part of the Micro Loan Fund, fox businesses to incorporate energy efficient design and/ox materials in the construction of their facility. Cliff Lundberg stated that this is an interesting idea. Chris Carlson mentioned that $133,095 is not enough money to start a pxogxam. Director of Economic Development indicated that in addition to accessing the existing Micro Loan Fund pool, the program could also capitalize off of existing environmental assistance low- intexest loan programs offered by the state to finance capital equipment upgrades that meet ox exceed environmental regulations. Committee member Paul Motin stated his concern, which he expressed at the recent EDA meeting, regarding the EDA's mission to create jobs and improve Elk River's tax base, which may not fit with this pxogxam. Heidi Steinmetz added that the Energy City Commission has expressed interest in developing a program such as this. Catherine Mehelich mentioned that companies who have recently located in the EDA's Noxthstar Business Paxk indicated an interest in energy savings incentives. Dan Tveite stated his concern, which he expressed at the recent EDA meeting, that he does not want to abandon the idea of a Business Incubator Pxogxam. Tom