EDA MIN 06-09-2014 - Laserfiche WebLink

Home Browse Search

Meeting of the Elk River EDA Finance Committee River Held at the Elk River City Hall Monday, June 9, 2014 Members Present: Cliff Lundberg, Paul Motiti, Nate O)-all, Chad Vitzthum Members ,Absent: l.arry 'Toth and Dan 'I veite Staff Present: I.:conomic Development Director Brian Beeman, Economic Development Specialist Colleen I;.ddv Also Present: Springsted Consultant Mikaela I luot Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the I:.lk River Finance committee was called to order at 7:3() a.m. by Brian Beeman. 2.1 Fourth Microloan Policy Director Beeman explained that the City of I?Ik River is required by the State to have a policy written before the city can use the funds received from 1)11.1). The State is requiring that the city first develop a draft policy for the funds. Director Beeman and Mikaela Hoot, Springsted consultant, reviewed the Jobs Incentive Program Micro Loan policies. The purpose of the Jobs Incentive Program Micro Loan is to assist existing businesses with expansion and attract new businesses to the city, which will help expand the City's economy through job retention and creation and maintain/grow the City's tax base. The committee members recommended some revisions be made to the policy pertaining to: • No working capital except for relocation expenses related to the project, developer must spell out relocation costs and can't exceed $25,()00 or 20"0 of the project costs; • 5-year amortization for equipment and not to exceed 20 years amortization for real estate; • Stating in the policy that any request $150,00() and above would require a public hearing due to Business Subsidy laws, but also be allowed to apply for an amount up to $200,00(); • Define job creation vs. retention; • (;insider requiring one new full-time job for every 520,00() borrowed and $10,00( for every job retained; • Require j( lbs to be at $15.00 per hour or 150"0 of state or federal minimum wage, whichever is greater, exclusive of benefits required by law;