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03-25-2020 EDAM - Discussion of the amount of assistance provided vis-à-vis project size and return on investment. Staff noted that larger projects, those that create more jobs, tax base and economic impact, qualify for larger economic development incentives. EDA Board Meeting M/S/P: Czmowski, Christensen to approve the use of the land-write down program for Unique Tools Conference Call purchase of the 1.797-acre lot. Passed unanimously. th 11:30 AM Wednesday, March 25, 2020 X. Systems West Project: 40,500 sf manufacturing building ____________________________________________________________________________ A. Sale of lot for $1 B. Authorization for an economic development TIF District MEETING MINUTES C. Authorization for interfund loan from SHOPKO TIF District. $15,000 - Systems West would like to move forward with a building project in the industrial park. - They have had conversations with a manufacturer Systems West would build and finance a Economic Development Authority building for the manufacturer and then lease it to them for a few years. After that, the company Financial Summary as of February 2020 Members present in bold. would purchase the building from Systems West. Operations - The interfund loan would help cover our cost of setting up the TIF district, and would be Cash Available $105,109 EDA Board Members reimbursed from tax increment generated once the building is up. Reserved $56,736 Unreserved $47,543 Mike McGraw M/S/P: Cannon, Czmowski to approve the sale of the lot for $1 to Systems West, authorize an economic Jonny Block Economic Development Loan Fund development TIF District, and authorize an interfund loan for $15,000 from the SHOPKO TIF district. Mike Cannon Cash Available $67,162 Corey Stearns Ashwill Industries Balance $6,309 XI. Grant & Loan Program Applications - NONE Zephyr Wind Services $95,845 Daron Vanderheiden Chad Czmowski Laser Dynamics Balance (forgivable) $23,000 XII. Other Business Mary Christensen Innovative Foam Balance (forgivable) $14,355 A. EDA Strategic Plan Jeremy Carter B. EDA Annual Report Advances to other funds (Enterprise $283,146 Center) - Board Consensus to wait with these reports until things settle down. Downtown Revolving Loan Fund Cash Available $568,584 Staff nd XIII. Set Next Meeting 11:30 AM Wednesday, April 22, 2020 by Conference Call Loans Receivable $344,919 Miles Seppelt, EDA Director Capital Assets $201,329 Matt Jaunich, City Administrator XIV. Adjourn Meeting adjourned at 12:36 pm. Total Assets $1,114,831 Andy Reid, Finance Director MIF Loan Fund Maddie Newcomb, EDA Program Manager M/S/P: Stearns, Christensen to adjourn the meeting. Passed unanimously. Cash Available $2,868 MOXY Loan Receivable $15,478 Enterprise Center Fund Cash Available $29,177 I. Call to Order Respectfully Submitted, Meeting called to order at 11:30 AM. SHOPKO TIF District (TIF 4-5) Cash Available $163,917 Madison Newcomb II. Review Agenda Interfund Loans Receivable $480,906 EDA Program Manager MEDICAL CLINIC TIF District (TIF 4-16) III. Review Minutes Interfund Loan Payable $322,661 th a. February 19 Finance Team meeting: M/S/P: Stearns, Czmowski to approve the minutes as written. Passed unanimously. th b. February 26 EDA Board Meeting M/S/P: Christensen, Block to approve the minutes as written. Passed unanimously IV. Review of EDA Financial Statements Finance Director Andy Reid provided an update on the EDA financials. (Please refer to table) M/S/P: Cannon, Czmowski to approve the financial report as presented. Passed unanimously. V. A. Marketing Plan: FB = 348, T = 94, Facebook updates = 16, Twitter updates = 16, Website updates = 6. B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing conversations. C. Cenex Site Redevelopment Staff talked with Trident Development, they may be interested in putting up market rate apartments. In April they will be conducting an analysis to see if this is feasible. They would utilize a housing TIF. D. Clinic Site hearing back from FEMA will be a long, slow process. Hopefully hear news by September or October. VI. Current Events A. City State of Emergency / Possible shutdown of non-essential services The City has declared a State of Emergency. This helps alleviate some purchasing requirements and bidding laws while also giving the City Administrator the ability to make decisions on staffing arrangements and the closing of buildings. Non-essential city services will soon be temporarily discontinued. B. EDA actions to date: pushing out information via website & social media (will also do a press release) - Waiting to see what decisions the Minnesota Governor will make, as of this meeting no Executive Order has been placed for essential/non-essential personnel. EDA will most likely shut down, with calls and emails being forwarded to make working from home possible. C. SBA Economic Injury Disaster Loans staff modified EDA website with COVID-19 tab at the top of the page, also included resources for businesses with links to access information. D. DEED Emergency Loan Program information added to website for businesses to reference. E. Councilmember Cook Proposal: Small Business Stabilization Fund / Grant Program / etc. Discussion on how we can potentially help businesses in this time of need. Board consensus is to help as much as possible but for now to hold off and see what the Federal and State levels of government will do. We would like to complement what they are doing and not overlap. The board will address this as we go forward. VII. EDA Loan Programs A. Consider suspending all Downtown Commercial Rehabilitation Loan payments for April-May-June & waive interest. - Discussion on what we can do as the EDA to help our businesses, most of the businesses that have loans through the EDA are currently shutdown. - Borrowers would need to cancel auto-payments themselves. - Staff to send out letters this afternoon notifying loan holders of this situation. M/S/P: Cannon, Stearns to approve suspending all Downtown Commercial Rehabilitation Loan payments for April, May, and June & waive interest. Passed unanimously. B. Do we put our ED Loan Fund payments on hold too? M/S/P: Cannon, Christensen to approve suspending all ED Loan Fund and Moxy Loan Fund payments for April, May, and June & waive interest. Passed unanimously. VIII. Enterprise Center Question on rent payments can we hold off on rent to help alleviate some burden on our incubator tenants? - EDA wants to help keep our small business tenants afloat until the economy comes back. - Each tenant will still be responsible for paying the rent amount for each month by the end of the 2020 calendar year. This is not waiving rent just a deferment to help business until they get back on their feet. - Rent payments will still be accepted during this time, if they so choose. M/S/P: Stearns, Christensen to offer Enterprise Center tenants to option to defer rent payments for 90 days. Passed unanimously. IX. Unique Tool - Land Write-down Program $52,193 A. Authorization of land write-down for manufacturing project (2/3 write-down amount) B. Authorization to sell 1.797 acre lot (1/3 would be $26,096) - Unique Tool would like to build a 5,000 sq. ft. building in the Industrial park on the lot directly across the road from Warrior Manufacturing and west of Customer Elation. (Site of former Wetherell house) - Land write-down would offer an incentive to help the project move along since TIF and Tax- abatement would not work.