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Appendix Q - Minnesota Department of Employment and Economic by ajizai

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									     Summary of August 1, 1999 - December 31, 2011 Business Assistance Agreements Reported by Government Agencies that Failed to Fulfill All Goals and Obligations in 2000 through 2012

Report Year Activity Year Grantor Name                  Recipient                   Assistance Type Value       Outstanding Value Reason for Default             Steps Taken for Compliance or Recouping Subsidy
       2012          2009 New Ulm, City of              Clearwater Marine           Loan               $250,000           $229,533 Economic Conditions resulted Recipient is attempting to sell business. Personal
                                                                                                                                   in reduced demand for         guarantees will be pursued to recoup subsidy.
                                                                                                                                   products and company cash
                                                                                                                                   flow did not allow Clearwater
                                                                                                                                   to make payments

       2011          1999 Albany, City of               Stearns Bank                Loan/TIF                $283,385         $81,611 Didn't meet job goals          Business subsidy amounts have been adjusted to reflect
                                                                                                                                                                    the actual assistance amount, whereas initial reports were
                                                                                                                                                                    based upon estimated costs. A prorated amount of the MIF
                                                                                                                                                                    loan has been paid in full based upon the actual jobs
                                                                                                                                                                    created. The City is pursuing the repayment of the a
                                                                                                                                                                    prorated amount of the TIF assistance and expects it will
                                                                                                                                                                    be repaid in full with the next 12 months.

       2011          2005 Iron Range Resources          Great Waters Aerospace Inc Grant/Other               $50,000         $22,170 Recipient was unable to        Recipient has begun to repay assistance and IRRRB is
                                                        dba Tuffloats                                                                repay assistance               pursuing collection.
       2011          2005 Elk River, City of            Tom Bauer & Rikki Bauer    Tax Abatement            $114,998         $78,700 Economic Conditions            Following a public hearing, the City Council approved
                                                                                                                                                                    extension of job wage goals until October 2011.
       2010          2005 Belgrade, City of             Menard Inc                  Contribution of         $286,730              $0 Economy                        The City will be meeting with DEED staff to determine
                                                                                    Property                                                                        options for amendment of agreements.
       2011          2005 Elk River, City of            Provo Enterprises LLC       Loan and Tax            $203,978         $71,254 Economic Conditions            Following a public hearing the City Council approved
                                                        Alliance Machine            Abatement                                                                       extension of job wage goals until May 2012.
       2009          2005 Iron Range Resources          Davich Properties Inc       Loan                    $215,000        $158,103 Recipient was unable to fill   Loan is in repayment status, recipient continues to repay.
                                                                                                                                     vacant positions
       2010          2004 New Ulm, City of              Medallion Cabinetry         Land Contribution        $72,370         $72,370 Economic Conditions            Following a public hearing on May 4, 2010, the New Ulm
                                                                                                                                                                    City Council authorized a one year extension to October
                                                                                                                                                                    15, 2010 for Medallion Cabinetry to comply with their
                                                                                                                                                                    business subsidy agreement job and wage goals. The City
                                                                                                                                                                    also prepared an amendment to the business subsidy
                                                                                                                                                                    agreement for this purpose.
                          MN Department of Employment                                                                                Sales depressed looking to     Initiative Foundation continues to work with company. To
       2005          2002 and Economic Development      Migizi Optical             Loan                     $199,000        $142,622 sell company.                  date, recipient has fulfilled its repayment obligation.
       2007          2002 Saint Paul, City of           Theodore Fyten Brewery LLC Loan and Grant            $50,000         $50,000 Project not started no funds   No funds have been disbursed on this contract. Recipient
                                                                                                                                     disbursed                      has requested another extension.
       2006          2001 Faribault, City of            Faribault Woolen Mills      Loan                    $150,000         $94,478 Recipient was unable to fill   EDA has determined it is in the community's best interest to
                                                                                                                                     vacant positions               collect monthly payments of $1,554 a month in accordance
                                                                                                                                                                    with the amortization schedule until the loan is paid off in
                                                                                                                                                                    10/1/2011.
       2011          2001 MN Department of Employment   Bioverse Inc                Loan                    $110,000         $63,700 Business has not achieved      Recipient is repaying loan as required.
                          and Economic Development -                                                                                 projected sales levels
                          Pipestone
       2007          2001 Perham, City of               Photos Unlimited of Perham Inc
                                                                                     Loan and TIF           $240,000        $125,000 Business financially unable to The agreement has been extended and the job goals
                                                                                                                                     meet obligations.              lowered from 5 FTE to 3.5 FTE. The business is increasing
                                                                                                                                                                    marketing efforts to reach a broader market nationwide and
                                                                                                                                                                    increase sales to larger corporate clients.

       2006          2000 Big Lake, City of             A-Boy Properties LLC        TIF and Land             $88,971         $88,971 Decline in industry.           The Big Lake EDA extended their compliance date by five
                                                                                    Contribution                                                                    years in 2004. Big Lake EDA is working with the business
                                                                                                                                                                    to help bring them into compliance Big Lake EDA is
                                                                                                                                                                    monitoring the business condition. A review and report to
                                                                                                                                                                    the spring 2006 Big Lake EDA meeting will be about the
                                                                                                                                                                    business situation.
       2005          1999 MN Department of Employment   Health Postures LLC         Loan                    $100,000         $66,000 Company has not achieved       Company is repaying loan as required.
                          and Economic Development                                                                                   projected sales
                                                                                                      15   $2,414,432     $1,344,512

								
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