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EDA Finance Committee Minutes Page 2 <br /> January,30,2013 <br /> Page 2 of 3 <br /> Peter Orluck introduced himself and gave an overview of his business and plans for expansion. <br /> Mr. Ovall stated that the Bank of Elk River is working with the applicant and he would abstain from <br /> voting. <br /> Commissioner Toth noted that the business is growing quickly and expressed concern that they may <br /> move in the near future. He asked if the EDA had any protection against a business accepting the <br /> forgivable loan and then moving. Mr. Wilfahrt stated that under the cit iysiness subsidy policy, any <br /> business that accepts a subsidy and moves within five years of accepti that s`ibsidy is subject to <br /> repayment and penalties. �� �� <br /> Mr. Motin expressed concern with the low score on the for vale loan s� b . system. Mr. Wilfahrt <br /> stated that the forgivable loan scoring system was designe*4 e to differen between applicants than <br /> it was to indicate strength of the project. Mr. Wilfahrta€tded that all three app ...N7'", received would <br /> score very highly on the abatement scoring system, •: are comp\arable to others 0>0 projects <br /> ` the <br /> EDA has accepted in terms of job creation, taxab ,�\ye.added,*d the other meas 0 nt criteria. <br /> - <br /> Mr. Vitzham asked if the EDA or city accepted a state gra s ould the city or EDA be penalized by the <br /> state if someone were to accept a forgiv; ble loan and the apps 0 t failed to go through with their <br /> project. Mr.Wilfahrt said that he would`- with the state to : ,,hat the recourse would be in that <br /> event. , \ \` <br /> The committee further recommended that th'yterms ith th terms rovided by the bank. <br /> p Y <br /> MOVED BY TVEITE`AN\ \ECONDED \ VITZHAM TO RECOMMEND APPROVAL <br /> OF THE REQUE� BYO ` CK INDUS' IES FOR A FORGIVABLE LOAN IN THE <br /> � <br /> AMOUNT OF$2v 0. mo‘, bN CARRIED; -O,WITH COMISSIONER OVALL <br /> ABSTAINING. \ <br /> Annie D` w O\; Deckll ,\ oup info ` the committee about Alliance Machine and their <br /> prop std expansib\\ \\\ <br /> h' <br /> mittee expresse t1t the sclg sheet may need to be updated to better reflect the strength of <br /> the ap tion. A\ <br /> \\ <br /> Mr.Tveite star that suppcing the Alliance project is an excellent example of how a city can support <br /> an existing bus\iii .to encrage economic growth. <br /> \\ <br /> Mr. Ovall stated that\\e Bank of Elk River is working with the applicant and he would abstain from <br /> voting. <br /> MOVED BY TVEITE AND SECONDED BY MOTIN TO RECOMMEND APPROVAL OF <br /> THE REQUEST BY ALLIANCE MACHINE FOR A FORGIVABLE LOAN IN THE <br /> AMOUNT OF $200,000. MOTION CARRIED 5-0 WITH COMISSIONER OVALL <br /> ABSTAINING. <br /> C:\Users\dhuebner\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\Q7RBTRKC\3 29 2013.doc <br />