Laserfiche WebLink
• MEETING OF THE EDA FINANCE COMMITTEE <br /> HELD AT THE ELK RIVER CITY HALL -� HAI777WEDNESDAY, AUGUST 17, 2005IJI, <br /> Members Present: Tom McNair,Paul Motin,Dave Rymanowski and Dan Tveite <br /> Members Absent: Chris Carlson and Cliff Lundberg <br /> Staff Present: City Administrator Pat Klaers and Assistant Director of Economic <br /> Development Heidi Steinmetz <br /> 1. Accept January 4.2005 EDA Finance Committee Minutes <br /> MOVED BY DAN TVEITE AND SECONDED BY TOM MCNAIR,THE <br /> FINANCE COMMITTEE MOVED TO ACCEPT THE JANUARY 4,2005 <br /> FINANCE COMMITTEE MINUTES. <br /> 2. Update: Minnesota Fabrication&Machine (MF&M),Inc. Micro Loan <br /> Assistant Director of Economic Development Heidi Steinmetz stated that the Finance <br /> Committee recommended and the EDA approved a two-year extension of the MF&M <br /> Micro Loan back in January of this year. She updated the Committee that the EDA <br /> approved the company's recent request that the EDA take a second position on the loan. <br /> 3. Discuss Micro Loan Portfolio Report <br /> Finance Committee member Dan Tveite asked if staff had received any recent Micro <br /> 41) Loan inquiries. Mrs. Steinmetz stated that despite an increase of marketing for the program, <br /> that there are no recent inquires to report. Mr.Tveite also asked for an update on Display <br /> Solutions,a company that received a Micro Loan in May of 2004. Mrs. Steinmetz indicated <br /> that Display Solutions has repaid the loan and moved to Brooklyn Park due to unavailable <br /> lease space within the City of Elk River. <br /> 4. Consider Micro Loan Application: Affiance Machine,Inc. <br /> Mrs. Steinmetz summarized Affiance Machine's request as outlined in the August 17th staff <br /> report to the Finance Committee. Finance Committee member Tom McNair clarified the <br /> company's equity position and provided an overview of The Bank of Elk River's financing <br /> proposal to the company. <br /> Mrs. Steinmetz indicated that staff's recommendation regarding the request would be that <br /> the Finance Committee first discuss its policy regarding the level of appropriate assistance <br /> provided to manufacturing companies entering the City of Elk River. <br /> Mr. McNair mentioned that the Micro Loan subsidy provided to Affiance Machine is not <br /> $100,000 rather it's the amount saved due to the lower interest rate of the loan. <br /> City Administrator Pat Klaers mentioned that banks should not offer City assistance on <br /> behalf of the City. <br /> Finance Committee member Dave Rymanowski inquired about the e-mail from Sid Inman <br /> of Ehlers &Associates (the City's financial advisor) provided to the Committee by staff <br /> • earlier in the meeting. The e-mail indicated that if the City were to provide the company <br /> with an additional subsidy beyond the Tax Abatement(already approved by the EDA&City <br />