08-12-2012 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Page 2 August 13,2012 Jay Grammond,representing Sandhill Photography Club,provided background information • on the club. He stated that there were 13 photo submissions for the contest and explained the scoring criteria. The winners were announced and were photos taken by Jim Boyle of the Star News. The winners and prizes were as follows: 1st Place—Denise Lanthier,$100 in Chamber Bucks 2nd Place—Wayne Matteson,$50 in Chamber Bucks 3rd Place—Jennifer Wagner,$25 in Chamber Bucks President Tveite expressed thanks on behalf of the EDA to the Star News and Sandhill Photography Club. 6. Consider Micro Loan Application—P.S...Dance Studio Ms.Deckert stated that the Energy Efficiency Improvements Micro Loan Program was created in April 2011. The PS Dance Studio application is the first to request the loan. She explained that Ms. Sitts has been in business in Elk River for 15 years. Ms. Deckert explained that the move to 251 8th Street NW will save Ms. Sitts approximately$1,800 per month in lease costs. She has been working with Tom Stagstetter of Elk River Municipal Utilities on options to save energy and reduce utility costs. The new lighting proposed will save nearly$2,000 per year in utility costs. Ms. Deckert explained the terms of the loan. President Tveite stated that the property owner is not willing to allow the EDA to obtain a first position on the mortgage;however, the EDA will have second position. He explained that the loan is similar to a line of credit, • in that the EDA will pay the bills for the energy improvements as they come in. Ms. Deckert stated that this is the first loan of this type and future loans could be structured differently. Commissioner Westgaard stated he would like to disclose that the owner of the property is a brother-in-law;however, since he has no financial interest in the property,he did not feel there was a conflict of interest. MOTION BY COMMISSIONER ZERWAS AND SECONDED BY COMMISSIONER MOTION TO APPROVE THE ENERGY EFFICIENCY LOAN REQUEST FOR PS DANCE STUDIO WITH THE FOLLOWING TERMS AND CONDITIONS: • UP TO $30,000 AT 3% INTEREST, 7-YEAR AMORTIZATION/5-YEAR BALLOON • MOTION SENSORS SHALL BE INSTALLED FOR LIGHTING • EDA TO USE COMMERCIALLY REASONABLE EFFORTS TO OBTAIN A CLEAN SECURITY LOAN POSITION • EDA TO OBTAIN A PERSONAL AND CORPORATE GUARANTEE MOTION CARRIED 7-0. 7. Consider 2013 EDA Budget and Resolution Establishing Tax Levy 111111