7. EDSR 06-17-2013 - Laserfiche WebLink

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EDA Finance Committee Minutes Page 2 4agiffilt,40F20.13 Page 2 of 3 Peter Orluck introduced himself and gave an overview of his business and plans for expansion. Mr. Ovall stated that the Bank of Elk River is working with the applicant and he would abstain from voting. Commissioner Toth noted that the business is growing quickly and expressed concern that they may move in the near future. He asked if the EDA had any protection against a business accepting the forgivable loan and then moving. Mr.Wilfahrt stated that under the city s iness subsidy policy,any business that accepts a subsidy and moves within five years of accep•:.1 that subsidy is subject to repayment and penalties. Mr. Motin expressed concern with the low score on the forge' . loan s . _ • system. Mr.Wilfahrt stated that the forgivable loan scoring system was design m ore`to differetilkv etween applicants than it was to indicate strength of the project. Mr.Wilfahrt4flaed that all three app i Y. ..ns received would score very highly on the abatement scoring system,, are comparable to other s .,, projects the EDA has accepted in terms of job creation,taxal� ov0 dded,a the other mess... nt criteria. Mr.Vitzham asked if the EDA or city accepted a state gr k ;.uld the city or EDA be penalized by the state if someone were to accept a forgi, .ble loan and the app;=1,..,,,, failed to go through with their project. Mr.Wilfahrt said that he wool. with the state to '''+., hat the recourse would be in that event. ,`, ,z A, The committee further recommended that th ,terms,c,. .,err with terms provided by the bank. MOVED BY TVEIT. SECONDED a,` VITZHAM TO RECOMMEND APPROVAL OF THE REQU BY O ' CK INDUS N' ES FOR A FORGIVABLE LOAN IN THE AMOUNT OF ';'):41, I I. MO N CARRIE ".-0 COMISSIONER OVALL ABSTAINING. '''N.,k, 3:\ V Annie e e Dec #soup informed a committee about Alliance Machine and their proposed expansion. `Zi ,' h mittee expressed at the scoring sheet may need to be updated to better reflect the strength of the app on. k Mr. Tveite s td that supporting the Affiance project is an excellent example of how a city can support an existing business to encourage economic growth. Mr. Ovall stated thaie Bank of Elk River is working with the applicant and he would abstain from voting. MOVED BY TVEITE AND SECONDED BY MOTIN TO RECOMMEND APPROVAL OF THE REQUEST BY ALLIANCE MACHINE FOR A FORGIVABLE LOAN IN THE AMOUNT OF$200,000. MOTION CARRIED 5-0 WITH COMISSIONER OVALL ABSTAINING. C:\Users\dhuebner\AppData\Local\Microsof\Windows\Temporary Internet Files\Content.Outlook\Q7RBTRKC13 29 2013_doe