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City Finance Committee Minutes Page 2 November 5,2013 Subsidy Law,Minnesota Statutes, Section 1161993 through 116J.995. It has been determined with the cooperation from the State DEED office,EDD staff,and their • attorney, that these job goals have not been met. Committee members had concern that The Bank of Elk River job creation numbers were not consistent or clear.There was understanding that the downturn in the economy during this time should be considered. Committee members Motin and Tveite felt good faith had been shown on the side of the city with the two extensions given.They felt that making an exception could set precedence for future borrowers in the same situation.The state of Minnesota is also under the understanding that the maximum amount of extensions have been issued. Committee member Lundberg inquired as to what was the total amount of Downtown District employees documented since 2006. Did they ever employ over 63. Is there a way to see if this number has ever been reached? This number could not be confirmed at this time. Lundberg stated he would like to suspend further abatement until The Bank of Elk River had time to research past payrolls,report goals, and know if the high water mark was ever reached. He also questioned if they would be responsible for the City attorney fees. Committee members agreed that to direct further action the"high water mark" must be known. Moved by committee member Motin and seconded by Toth to recommend EDA suspend future tax abatement payments,have the bank pay all attorney fees, and to direct staff to find the "high water mark" for The Bank of Elk River-Main Street Branch's employment (i.e.,the total employment at that branch location,whether • retained jobs or new jobs) during the period from the date of the Business Subsidy Agreement to current to determine to what extent the subsidy already paid to the Bank may need to be repaid. Motion carried 4-0. 2.3 Update Energy Efficiency Microloan Brian Beeman presented changes to the microloan policy Recommendations were discussed at a prior Finance Committee meeting. These included: • Non-profits should be included • Microloan dollars should not be used for working capital • Energy efficiency should be defined as improvements rebatable by Elk River Municipal Utilities (ERMU) or the utility provider for the property if not ERMU. • At least 50%of microloan funds should be spent on energy efficiency improvements for energy efficiency loans • A map should be provided comparing the current downtown district to the downtown area as defined by the Mississippi Connections Redevelopment Framework. Discussion ensued concerning the clarity of the map outlining the Mississippi Connections Redevelopment area. Suggestions were made to include a descriptive 4110 narrative and include street names for clear understanding. .i n t B # f INATURE