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E]DA F{nanc~ Comrmne~ Mm. urns <br />june 1,200~- <br /> <br />Page 2 <br /> <br />TLr. MoTM excused himself from the meeting. <br /> <br />lVfr. Lundberg stated that he is concerned that the Finance Committee and EDA are being <br />asked to consider awardin6 the $100,000 to finance a spec building, lYLr. Iv£ci'qair mentioned <br />that the Finance Committee and EDA approved a loan for the 1K &: IX7 builctJ, ng, wt~ch is a <br />s/re_ilar project. <br /> <br />Mr. Lundberg asked about the interest rate di£ferendal between the Supplemental Program <br />and the Industrial Incentive Program. M_rs. Sreinmetz stated that the Supplemental Program <br />is 1% below prune with a 2°,/0 floor and that the tndusnial Incentive Program is 4% below <br />prune with a 2% floor. <br /> <br />Nit. Simpson stated that the Industrial Incentive Program criteria is not preventing industrial <br />prospects from locating in the West Business Park, rather the lack o£ a joint marketing <br />agreement between the City, and the phvare landowners is what is preventing industrial <br />development. M_r. Simpson added that industrial prospects should be able to request loan <br />funds without location provisions. <br /> <br />THE FINANCE COMMITTEE RECOMMENDS THAT THE EDA CONSIDER <br />ELIMINATING THE SUPPLEMENTAL MICRO LOAN PROGRAM AND <br />THAT THE INDUSTRIAL INCENTIVE PROGtLa2vl RATE CRITERIA BE <br />CHANGED TO 2% BELOW PRIME WITH A 3% FLOOR. THE MOTION <br />CARRIED 5-0. <br /> <br />Badger Ventures Micro Loan Application Discussion <br />Committee members Iv[r. McNalr and Mr. Simpson excused themselves from the discussion <br />since The Bank of Elk River is £mancing a portion o£the project. <br /> <br />Mr. Carison, Mr. Lundberg and Mr. King discussed the application. Mr. Lundberg stated <br />that he would like a personal guarantee from the Badger Ventures owners and from <br />Gradient Technology. Mr. Lundberg also stated that he would like the lease between Badger <br />Ventures and Gradient Technology to speci~ a legal tie between the two companies. <br /> <br />Nit. IG_ng inquired of any claw back provisions within the City's Business Subsidies Policy <br />that urill be held between the City and Badger Ventures. M_rs. Stemmetz stated that the <br />company would have to repay the loan in full if job and wage goals were not met. Mr. I~-2ng <br />stated that he would like more provisions within the Business Subsidies agreement between <br />the City, and Badger Ventures. Mr. Lundberg concurred. <br /> <br />The Committee suggested the following verbiage for a motion: The Finance Committee <br />recommends that the EDA consider awarding Badger Ventures, LLC a $100,000 Industrial <br />Incentive Micro Loan contingent upon the folloWmg: <br /> · Personal guarantee from the owners of Badger Ventures, LLC and Gradient <br /> Technology <br /> · A clear legal tie between Badger Ventures, LLC and Gradient Technolo~ <br /> <br /> Since the Committee requested additional information (the City's Business Subsidies Policy) <br /> and due to a lack of a quorum, there was no action on the Badger Ventures request. Iv[rs. <br /> $teinmetz stated that the Corrmmttee will have to consider the Badger Vent-ares applicanon <br /> and modon for recommendanon to the EDA at a later dare. <br /> <br /> <br />