5.0. EDSR 09-09-2002 - Laserfiche WebLink

Home Browse Search

• City of Elk 4, River TO: MEMORANDUM Oen 5 Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development(1( DATE: September 9, 2002 SUBJECT: Consider Initiative Foundation Contribution Request Attachments • July 2002 Initiative Foundation Letter of Request for Year 2003 Support • Staff Memo to City Administer regarding Initiative Foundation Request • Initiative Foundation Business Investment& Grantmaking Programs • Background The Initiative Foundation is requesting the City's consideration for a contribution of$5,000 in the year 2003 to support the Foundation's programming and services. The attached staff memo to the City Administrator summarizes actions taken on past requests from the Initiative Foundation. Most recently in 2001, the EDA recommended that future requests be forwarded directly to the City Council for consideration. The City Council reviewed the request at its August 12, 2002 meeting and directed that the request be considered by the EDA. Analysis The Initiative Foundation's economic development programs are useful to the City of Elk River,but depend on qualifying projects. The program of most use by the EDA has been the Foundation's "Seed Capital"program,which has funded two incubator companies in the past two years and approved two others. One of those companies is Cymbet Corporation, which graduated from the Incubator into 12,000 square feet of market rate space and 16 full- time employees. Staff has not had an opportunity to utilize the Foundation's business loan programs,but recognizes the leveraging potential for light industrial projects. The attached Foundation materials indicate a number of Elk River manufacturers that were awarded loans for both start-up and expansions since 1988. As the EDA continues to aggressively recruit light manufacturers and assist expansions the Initiative Foundation's programs will become more • beneficial.