Laserfiche WebLink
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 siness subsidy policy, any <br /> business that accepts a subsidy and moves within five years of accept`'that sn'bsidy is subject to <br /> repayment and penalties. <br /> Mr. Motin expressed concern with the low score on the forgivable loan see +e4 system. Mr. Wilfahrt <br /> stated that the forgivable loan scoring system was designecLre differen . t- .etween applicants than <br /> it was to indicate strength of the project. Mr. Wilfahrt\ ed that all three app ens received would <br /> score very highly on the abatement scoring system, are comparable to other s projects the <br /> EDA has accepted in terms of job creation, taxable`:v, .9 added, • the other meas ••`ant criteria. <br /> Mr. Vitzham asked if the EDA or city accepted a state gra s , i ild 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 would with the state tom hat the recourse would be in that <br /> event. \ � .\\\ <br /> The committee further recommended that th yterms e" with the terms provided by the bank. <br /> MOVED BY TVEIT$ ECONDED\ \VITZHAM TO RECOMMEND APPROVAL <br /> OF THE REQU BY OCK INDUStIES FOR A FORGIVABLE LOAN IN THE <br /> AMOUNT OF $2* *00. MOTION CARRIE1 0 WITH COMISSIONER OVALL <br /> ABSTAINING. ' \\ \:\ <br /> Annie Dcel \\ t' gDeckl.9 oup info :die committee about Alliance Machine and their <br /> propel expansioY\\A\ \ <br /> The' t, • •ttee expressed t the scczil3g sheet may need to be updated to better reflect the strength of• <br /> the ap •ton. <br /> Mr. Tveite s'€l*. that supp4 wing the Alliance project is an excellent example of how a city can support <br /> an existing bust to enc r\ age economic growth. <br /> Mr. Ovall stated thaOe 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 />