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EDA Finance Committee Minutes Page 2 <br /> January,30,2013 <br /> Page 2 of 3 <br /> ------------------------------------------------------------- <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 abusiness accepting the <br /> forgivable loan and then moving. Mr.Wilfahrt stated that under the city's business subsidy policy, any <br /> business that accepts a subsidy and moves within five years of acceptin that subsidy is subject to <br /> repayment and penalties. <br /> Mr. Motin expressed concern with the low score on the forgiva'"'e loan sc—— system. Mr. Wilfahrt <br /> stated that the forgivable loan scoring system was designed more to differentiate between applicants than <br /> it was to indicate strength of the project. Mr. Wilfahrt added that all three applications received would <br /> score very highly on the abatement scoring system, and are comparable to other subsidy projects the <br /> EDA has accepted in terms of job creation,taxable value added, and the other measurement criteria. <br /> Mr. Vitzham asked if the EDA or city accepted a state grant,would the city or EDA be penalized by the <br /> state if someone were to accept a forgivable loan and the applicant failed to go through with their <br /> project. Mr. Wilfahrt said that he would check with the state to see what the recourse would be in that <br /> event. <br /> The committee further recommended that the terms coincide with the terms provided by the bank. <br /> MOVED BY TVEITE AND SECONDED BY VITZHAM TO RECOMMEND APPROVAL <br /> OF THE REQUEST BY ORLUCK INDUSTRIES FOR A FORGIVABLE LOAN IN THE <br /> AMOUNT OF $200,000. MOTION CARRIED 5-0 WITH COMISSIONER OVALL <br /> ABSTAINING. <br /> Annie Deckert of the Decklan Group informed the committee about Alliance Machine and their <br /> proposed expansion. <br /> The committee expressed,th t the sc Ingheet may need to be updated to better reflect the strength of <br /> the application. <br /> Mr. Tveite stated that suppo" ing the Alliance project is an excellent example of how a city can support <br /> an existing business to encourage economic growth. <br /> Mr. Ovall stated that the 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 /> N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda\Year2014\4-21-2014\6.1 at 1 Orluck Finance <br /> Committee Minutes 3.29.2013.doc <br />