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<br />. <br /> <br />. <br /> <br />. <br /> <br />Economic Development Authority Minutes <br />January 11, 1993 <br /> <br />Page 4 <br /> <br />8. <br /> <br />Consider Loan Request from Allegiance Realty <br /> <br />Bill Rubin, Economic Development Coordinator, indicated that the City <br />is in receipt of a request for a loan from the EDA Revolving Loan Fund <br />from Allegiance Realty, 823 Main street. The EDA Finance Committee met <br />to review the request and recommended that the EDA consider approval of <br />a loan for $27,500 from the Revolving Loan Fund to Allegiance Realty. <br /> <br />Commissioner Holmgren stated that this project has been previously <br />assisted by the EDA through TIF regarding site preparation costs. <br />Commissioner Holmgren questioned whether the $6,000 being requested for <br />the phones was a legitimate use of the Revolving Loan Fund. He stated <br />that the phone company should be willing to finance the phones. Bill <br />Rubin indicated that the telephone equipment would fall under the <br />category of machinery and equipment, and therefore, was an eligible <br />item for funding. <br /> <br />Marilyn VanPatten stated that <br />separate from the Chuba Company <br />received funds previously. <br /> <br />the Allegiance Realty is completely <br />and, further, Allegiance Realty has not <br /> <br />PRESIDENT GONGOLL MOVED TO ACCEPT THE FINANCE <br />RECOMMENDATION TO APPROVE A $27,500 REVOLVING LOAN <br />REALTY. COMMISSIONER DWYER SECONDED THE MOTION. THE <br />5-2. Commissioners Holmgren and Scheel opposed. <br /> <br />COMMITTEE'S <br />TO ALLEGIANCE <br />MOTION CARRIED <br /> <br />Commissioner Holmgren requested that staff look into the issue of <br />whether Revolving Loan Funds should be used for items such as telephone <br />equipment in the future. Commissioner Dietz indicated that he has a <br />problem with the way the Revolving Loan Funds are being used and feels <br />that the loans should be used for projects that cannot be done without <br />the City's assistance. Commissioner Dwyer suggested that staff <br />research other cities regarding the use of Revolving Loan Funds. <br /> <br />9. <br /> <br />Consider Alternatives for Tax Increment Financing Grant Request <br /> <br />Bill Rubin indicated that staff is seeking direction regarding the <br />potential availability of TIF to assist a manufacturing company with <br />its relocation program into the City of Elk River. Bill Rubin <br />explained the Perf-form Products, of Big Lake Township, is proposing <br />the construction of a 6,000 square foot facility that can be expanded <br />in the future. He stated that the company is tentatively looking at <br />Lot 2, Block 2, Elk River Industrial Park as the potential site for <br />this project. Bill Rubin further explained that after reviewing the <br />potential sources of assistance available, it was decided that the <br />creation of a new TIF District may not be feasible. He indicated that <br />the alternatives to the creation to a new TIF District include: No TIF <br />assistance or amending an existing district. He suggested that the EDA <br />and Council consider an amendment to TIF Districts No. 1 and No. 3 to <br />provide a TIF grant to Perf-form Products. <br /> <br />Commissioner Holmgren stated he preferred amending an existing district <br />over creating a new TIF district. Commissioner Duitsman stated that he <br />would like to identify all of the City's capital needs prior to using <br />