04-26-2022 JFC MIN - Laserfiche WebLink

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Elk River Joint Finance Committee Held at Elk River City Hall th Tuesday, April 26, 2022 Members Present: Ryan Hardin, Rhonda Magnussen, Dan Tveite, Nate Ovall, and Jim Gromberg Members Absent: Chad Vitzthum, Larry Toth, Charlie Blesener Staff Present: Brent O’Neil, Economic Development Director Joshua Mollan, Economic Development Intern 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Joint Finance Committee was called to order by Chair Tveite at 7:34 a.m. 2. Consider Agenda Motion by Ovall and seconded by Hardin to approve the Joint Finance Committee agenda. Motion carried 5-0. 3. Consent Agenda Motion by Ovall and seconded by Gromberg to approve the November 30, 2021, Joint Finance Committee meeting minutes. Motion carried 5-0. 4.1 Orluck EDA Loan Mr. O’Neil requested guidance from the committee on the Economic Development Authority’s loan to Orluck Industries. Mr. O’Neil noted that Orluck has been working with a third-party consultant which assists companies in debt restructuring and company reorganization. The EDA’s loan, originally at $200,000, is current, with about $100,000 paid down. It is secured by two pieces of equipment. However, due to the potential restructuring or wind-down, the equipment may be liquidated., which a recent appraisal shows is in line with the current balance, but may be worth less on the open market due to factors such as relocation. Mr. Ovall discussed some factors to consider, including priority lien position on equipment. Mr. Tveite questioned how the process would work if the machinery were to be sold. Mr. Ovall suggested that it would be ideal for the city to stay out of the sale of the equipment due to the size of the machines and work with the principals or the consultant on any sale. Ms. Magnussen questioned the overall process and the committee’s role and action. Mr. Tveite suggested that the committee advise staff to work with the relative parties involved to