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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 city'business subsidy policy,any <br /> business that accepts a subsidy and moves within five years of accepting that subsidy is subject to <br /> repayment and penalties. <br /> Mr. Morin expressed concern with the low score on the forgivable loan s p�o., system. Mr. Wilfahrt <br /> stated that the forgivable loan scoring system was designed �re to differen` etween applicants than <br /> it was to indicate strength of the project. Mr. Wilfahrtj?dded that all three appl1 lions received would <br /> score very highly on the abatement scoring system, d are comparable to other si a..'Q projects the <br /> EDA has accepted in terms of job creation, taxable . .*the other meas N,lent criteria. <br /> Mr. Vitzham asked if the EDA or city accepted a state gra t,would the city or EDA be penalized by the <br /> state if someone were to accept a forgivable loan and the appli. ®t failed to go through with their <br /> project. Mr. Wilfahrt said that he would ch± with the state to i•- hat the recourse would be in that <br /> event. \ \\` <br /> The committee further recommended that the terniS' eg\eTith the terms provided by the bank. <br /> MOVED BY TVEITE SECONDED VITZHAM TO RECOMMEND APPROVAL <br /> OF THE REQUEST BY O `Lv` �CK INDUSTRIES FOR A FORGIVABLE LOAN IN THE <br /> AMOUNT OF 0 ,0 0. MOTION CARRIES 0 WITH COMISSIONER OVALL <br /> ABSTAINING. \ <br /> Annie DE � of� e Deckl Group informed ie committee about Alliance Machine and their <br /> propel expansion. . ���y <br /> \ <br /> hdy`committee expressed that the scoring sheet may need to be updated to better reflect the strength of <br /> the applitaion. <br /> Mr. Tveite stilted that supporting the Alliance project is an excellent example of how a city can support <br /> an existing buss n,:.. to encourage economic growth. <br /> Mr. Ovall stated that 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 />