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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 c.it iiness 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. Motin expressed concern with the low score on the forgivable loan sco b , system. Mr. Wilfahrt <br /> stated that the forgivable loan scoring system was designee differen - .etween applicants than <br /> it was to indicate strength of the project. Mr. Wilfahrted that all three app tons received would <br /> score very highly on the abatement scoring system,,. s are com s arable to other s . projects the <br /> EDA has accepted in terms of job creation, taxable ' : added N `, . a • the other meas =nt criteria. <br /> Mr.Vitzham asked if the EDA or city accepted a state graft ould the city or EDA be penalized by the <br /> state if someone were to accept a forgivable loan and the app`• t failed to go through with their <br /> project. Mr. Wilfahrt said that he woul with the state to) hat the recourse would be in that <br /> event. \\ <br /> The committee further recommended that the.terms • with the terms provided by the bank. <br /> MOVED BY TVEITE , D ECONDED `Y\\VITZHAM TO RECOMMEND APPROVAL <br /> OF THE REQUEST BY OF CK INDUSTRIES FOR A FORGIVABLE LOAN IN THE <br /> AMOUNT OF. ,000. MOTION CARRIE 0WITH COMISSIONER OVALL <br /> . <br /> G <br /> ABSTAININ �` � , <br /> � <br /> Annie Deck e\Deckl. Group Aie committee about Alliance Machine and their <br /> propel expansions\ a' <br /> '['hett •ttee expresses• !t the scoring sheet may need to be updated to better reflect the strength of <br /> the appion. <br /> Mr. Tveite 4404 that supporting the Affiance project is an excellent example of how a city can support <br /> an existing bus to encourage economic growth. <br /> Mr. Ovall stated thane 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 />