6. EDSR 02-11-2013 - Laserfiche WebLink

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MEETING OF THE EDA FINANCE COMMITTEE HELD AT THE ELK RIVER CITY HALL WEDNESDAY,JANUARY 30, 2013 Members Present: Cliff Lundberg,Paul Motin,Nate Ovall, Dan Tveite Members Absent: Chad Vitzthum,Larry Toth Staff Present: Assistant Director of Economic Development Clay Wilfahrt Others Present: 1. Call Meeting to Order ,\ Assistant Director of Economic Development Clay Wilfahrt call th • :eting to order at 7:30am 2. Review the Forgivable Loan Program Policy and provide direction to Econ•„ Development Staff Mr. Wilfahrt reviewed the staff report. The EDA has a "ED balance of$70 - '0 and the dollars may preclude Elk River from future MNDEED funding v nail the do ars are depleted w drafted a policy for a forgivable loan program with the help of an l Pointe. ubcommittee. : 1' .gram emphasizes industrial,manufacturing and high-tech de N. ®o men i` he sale of city-owned property. The applicants for the program must meet both federal an. requirements. The first application period will be from February 15, 2013 to March 15,2013. Vy, Mr. Ovall asked at what point the loan w.. s given. The gr ,.` on<cluded that the applicants should have two to three years to meet the .b r :,..ents and they ,'buld have to retain the jobs from two to four years. These requirements can b,changed. '�� a,se-by-rase basis. Mr. Ovall also suggested th4 e loan have a st. - rate of interest that was consistent with the City's Microloan program., he Committee members al,eed. Mr. Wilfahrt asked Co, ttee members whether the job needed to be a new job to the city or a new job to the state in order to qualify. ` members agreed that the intention of the dollars was to bring new j the state,an . erefore'th. \mould be the requirement. Mr Ovall left at this tir . \ Mr. Lis .erg questioned 'the positioning on the mortgage would happen. Committee member Tveite sta.-• that he expect . the city would take a subordinate position on the property, and the committee Viers agreed. Committee member requested that the policy should state that the EDA has the ability to accept or reject any applican. The committee members agreed that the language should include that. Mr. Motin recommended that the business eligibility require that the business falls into the industrial, manufacturing, or technology industry. The committee reached a consensus that this should be a requirement. Mr. Tveite requested that the language state that the loan proceeds will be disbursed upon proof of expenditures rather than execution of the documents. The other committee members agreed. Mr. Lundberg requested that the policy specify that the forgivable loan policy requirements prior to the loan being forgiven. Committee members Motin and Tveite agreed.