07-09-1990 EDA MIN - Laserfiche WebLink

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Economic Development Minutes July 9, 1990 Page 5 . Mr. Mulrooney informed the EDA that he has been working with Scott Martin of UPA to put together an Industrial Park Profile. He indicated that UPA will print the Industrial Park Profile with no cost to the community. It was the consensus of the EDA to authorize staff to continue with the first three elements (publicity, advertising, and personal selling) of the Marketing Program and to hold off on the last two elements (sales promotion and networking) until an EDA Coordinator is hired. 9. Roma Tool . Mike Mulrooney stated that a few years ago the State provided financing through the City to Roma Tool to keep the company operating in Elk River. He indicated that the City had received a grant from the Minnesota Department of Trade and Economic Development in the amount of $500, ood. He stated that the terms of the grant allowed the City to keep $100,000 of the principal and any interest made on the grant money and the remaining $400,000 had to be returned to the State. Mr. Mulrooney indicated that Roma Tool has recently requested that the City forgive the entire amount of the debt because the company currently has a negative net worth which is prohibiting them from obtaining business. Mr. Mulrooney stated that he feels if the EDA agrees to forgive the loan it may set a precedent for future EDA projects. He further indicated that if the City is to obtain future grants for other projects from the State, every effort should be made to ensure that the full amount of the grant is paid back to the State. Mr. Mulrooney suggested that the City be allowed to explore options for recovering the money. He suggested a possibility of taking an equity position in the company. The City Attorney informed the EDA that the City may at some time be held liable by the State for the grant payback. COMMISSIONER SCHULDT MOVED TO NOT FORGIVE THE $400,000 LOAN TO ROMA TOOL AND FURTHER TO DIRECT THE CITY TO CONTINUE TO WORK WITH ROMA TOOL IN TERMS OF PAYING BACK THE GRANT MONEY LOANED TO THEM BY THE CITY. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0-l. Commissioner Kropuenske abstained due to a conflict of interest. 10. Distinctive Door Desi~ns Mike Mulrooney indicated that Distinctive Door Designs has requested assistance from the City for a land write-down in the McChesney Industrial Park. He indicated that he has been in contact with the company and that they have stated their interest in locating in the McChesney Park. Mr. Mulrooney indicated that the project has been put on hold, pending review of the project by the company lenders. .