12-30-2015 JFC MIN - Laserfiche WebLink

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Member Vitzhum stated that typically the commission receives financial information from the business requesting the loan, along with a qualifying analysis from Springsted,but that this time they did not receive the information in their packets. Ms. Huot stated that Springsted received the financial information as they are the third party representation. She stated that Patriot's 2013—2014 financials did not show profitability, but their 2016—2017 does show profitability. Mr. Stilwell stated that the business was launched in 2013 in Iowa and that the expenses and salaries were double of what was projected. Member Toth asked how many employees currently work in the proposed building. Ms. • Othoudt stated that two businesses have leases set to expire soon. She is working with the tenants on available options in Elk River. Mr. Stilwell stated that Patriot will acquire the remaining two spaces once the two tenants leases expire. Member Motin asked the commission if the loan request fits the requirements of the loan? Ms. Othoudt stated that it fit with the overall project. Members discussed that it was a solid project to utilize the funds. Mr. Stilwell stated that he would do a personal guarantee if the commission requested it. • Member Vitzhum asked the commission about the logistics of receiving financial reports from the clients. He stated that there are some inconsistencies between meetings and clients. Commissioners discussed the public meeting rules and seemed to agree that financial reports should go to Springsted, being the third party representative. In turn the commission would like to receive an analysis from Springsted that reflects a recommendation per the financial projections. Motion by Member Toth to recommend the EDA approve the recommendation to • the EDA supporting Patriot Converting-request for Microloan funds with the stipulation that city finance staff submits a recommendation of which fund Patriot should utilize. Motion was seconded by Member Vitzhum.'Motion carried 7-0. 5.' Announcements Member Tveite departed the meeting at 8:28 a.m. Ms. Othoudt asked the commission if they would like to move the EDA Finance Committee meeting to the last Tuesday of the'month. The different schedule would allow staff more time to review the application and for Springsted to put together the needed analysis'. The commission was in agreement to move the meeting to the last Tuesday of the month. 6.- Adjournment There being no further business Member Motin moved to adjourn the meeting. Motion was seconded by Member Vitzhum. The meeting adjourned at 8:42 a.m. Minutes prepar by Colleen Eddy.