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MEETING OF THE EDA FINANCE COMMITTEE <br />HELD AT THE ELK RIVER CITY HALL <br />WEDNESDAY, JUNE 9, 2004 <br /> <br />Members Present: <br /> <br />Steve I~.ng, Cliff Lundberg, Paul Motin and Dan Tveire <br /> <br />Members Absent: <br /> <br />Tom McNair, Jim Simpson and Chris Carlson <br /> <br />Staff Present: <br /> <br />Assistant Director of Economic Development Heidi Steinmetz <br /> <br />Micro Loan Policy. Discussion, <br />MOVED BY STEVE KING AND SECONDED BY PAUL MOTIN, THE <br />FINANCE COMMITTEE VOTED TO RECONSIDER THE MICRO LOAN <br />POLICY MOTION MADE ON JUNE 1, 2004. <br /> <br />Discussion points regarding possible amendments to the Micro Loan Fund Policy were as <br />follows: <br /> · Should loan amounts reflect the size of the project? <br /> · Should commercial, retail and home-based businesses be considered? <br /> Should there be more provisions in the City's Business Subsidies Policy? <br /> <br />Due to time constraints, the Committee postponed further policy discussion until later in the <br />meeting. <br /> <br />Consider Micro Loan AppLication: Badger Ventures, LLC (Gradient Technology) <br />Eric Haehn of Gradient Technology entered the meeting and answered questions regarding <br />the following issues: <br /> · The company's forbearance issue <br /> · Status of the company's M2'q Technology, Inc. grant <br /> · Exhaust hoods included in the equity contribution <br /> · Labor included in the equity contribution <br /> · Proposed jobs <br /> <br />Mr. Haehn was excused from the meeting to allow the committee to discuss the application <br />and determine a recommendation for EDA consideration. <br /> <br />Mr. Motin asked that details regarding the exhaust hoods be provided prior to the June 14, <br />2004 EDA meeting. <br /> <br />Continued: Micro Loan Policy Discussion <br />The Committee continued their discussion regarding possible amendments to the Micro <br />Loan Policy. Mr. Krug expressed his concern that The Bank of Elk River's balloon payment <br />for the Badger Ventures loan is shorter than the balloon payment for the proposed Micro <br />Loan. The Committee discussed that the West Business Park is currendy receiving a benefit <br />that other Elk River industrial/business parks are not receiving (Industrial Incentive <br />Program criteria states that borrowers must locate in the West Business Park). The <br />Committee ctiscussed that this is an unfair advantage for the West Business Park. <br /> <br /> <br />