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OMEETINGPoliOF THE EDA FINANCE COMMITTEE <br /> cy <br /> HELDDiscussATion THE ELK RIVER CITY HALL <br /> WEDNESDAY,JUNE 9, 2004 <br /> Members Present: Steve King,Cliff Lundberg,Paul Motin and Dan Tveite <br /> Members Absent: Tom McNair,Jim Simpson and Chris Carlson <br /> Staff Present: Assistant Director of Economic Development Heidi Steinmetz <br /> 1. <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 /> 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 /> Due to time constraints,the Committee postponed further policy discussion until later in the <br /> meeting. <br /> 2. Micro Loan 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 MN Technology,Inc.grant <br /> • Exhaust hoods included in the equity contribution <br /> • Labor included in the equity contribution <br /> • Proposed jobs <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 /> Mr.Motin asked that details regarding the exhaust hoods be provided prior to the June 14, <br /> 2004 EDA meeting. <br /> 3. Continued: Micro Loan Policy Discussion <br /> The Committee continued their discussion regarding possible amendments to the Micro <br /> Loan Policy. Mr. King 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 currently 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 discussed that this is an unfair advantage for the West Business Park. <br /> i <br />