UMVRDC Mission Statement

“Enable the region to thrive through assisting local governments.”

BOARD MEETING AGENDA October 22, 2013 - 6:30 PM

Introductions Approve Agenda/Additions 1. Consent Agenda Items

a. Approve Minutes from September 2013 b. Approve September Treasurer’s Report and List of Bills c. RLF Plan Certifications

NOTE: All items listed under consent agenda will be enacted by one motion. There will be no separate discussion of these items unless desired by a Commission member. That item would then be

removed from the consent agenda list and considered separately.

Citizen Comments Round Robin: Please share any recent actions, discussions or issues from your council or board

Staff Presentation: Lindsey Knutson 2. Information Items

a. Planner Update b. Executive Director Update

3. Action Items a. Revolving Loan Fund b. Community Development Planner Position c. Staffing 4. Discussion Items a. Greater MN Partnership Adjourn

Next Meeting Date: November 26, 2013 All BHAG committees meet @5:30pm

#1a

RDC BOARD MINUTES

Upper Minnesota Valley Regional Development Commission Appleton Civic Center - Appleton, MN

September 24, 2013

Board Members Present: Bruce Swigerd, Juanita Lauritsen, Gary Hendrickx, Gary Johnson, Jim Dahlvang, Brett Buer, Rusty Dimberg, Vicki Oakes, Mark Bourne, Jeff Olson, Scott Peterson, Warren Rau, Debra Lee Fader, Kathi Thymian, Jim Schmaedeka, Mike Fugleberg, Graylen Carlson

Board Members Absent: Brent Olson, Scott Rixe Staff Present: Dawn Hegland, Arlene Tilbury, and Jackie Sigdahl Guests: Dan Dorman, GMNP Call to Order Chairman Hendrickx called the meeting to order at 6:30 p.m. Introductions Introductions were made. Approve Agenda/Additions

M/S/P – Mark Bourne, Rusty Dimberg made motion to approve the agenda with the addition of three items: 2e, 3b and 3c. 1. Consent Agenda Items

a. Approve Minutes from July 2013 b. Approve Treasurer’s Report and List of Bills for July & August c. Meander Fiscal Agent and Grant Application d. Byway Technical Assistance Agreement e. Contract for Administrative Services – City of Benson & Contract for Services – Swift

County HRA f. Contract for Administrative Services – City of Ortonville & Contract for Services – Prairie

Five Community Action Council g. MnDOT Annual Planning Contract Amendment h. MnDOT SRTS Planning Contract i. MnDOT SRTS Non-Infrastructure Implementation Contract

M/S/P – Jeff Olson, Vicki Oakes made motion to accept and approve the Consent Agenda Items as follows: approval of minutes from the July meeting; approval of the July & August Treasurer’s Report along with the check listings as presented; approval of the grant application to SMAHC; authorization for technical assistance with the Byway for ongoing fiscal agent services; approval of administrative services for the City of Benson and Swift County HRA; approval of administrative services for the City of Ortonville and Prairie Five; authorization to commit additional match for MnDOT Planning Grant; authorize signatures on the MnDOT

SRTS grant agreement; and authorization to commit the match for the MnDOT SRTS non-infrastructure implementation grant and approve signatures on the grant agreement. ROUND ROBIN DISCUSSION:

Gary Hendrickx, Swift County: Up less than 3% on levy; looking at going to self-insured for county in 2015.

Brent, Big Stone County: absent

Gary Johnson, Yellow Medicine County: Continuing to work on courthouse

Rusty, Big Stone County Townships: passed

Brett, Dawson/Boyd Schools: passed

James, Chippewa County Townships: passed

Jim, Chippewa County: Increased budget by 5.3%

Bruce, Prairie Five CAC, Inc.: Waiting to see about funding

Mark, LqP County Townships: passed

Jeff, LqP County Municipalities: passed

Scott, YM County Municipalities: Open House for the new water treatment plan is scheduled for Saturday.

Juanita, Workforce Council: passed

Warren, Swift County Townships: passed

Debra Lee, Chippewa County Municipalities: Working on bringing a Veteran’s Home to Montevideo

Graylen, LqP County: Increased levy by 4.14%. Pilt research done by Jake Sieg.

Vicki, Ortonville EDA: passed

Scott R., Big Stone County Municipalities: absent

Kathi, Ortonville School: passed

Mike, Swift County Municipalities: passed Staff presentation: None made 2. Information Items

a. Planner Update - no questions/comments b. Executive Director Update – no questions/comments c. Transportation Programming Update due to MAP-21 Changes – no questions/comment d. Economic Development Strategic Planning Training Update – no questions/comments e. Levy Correction

Arlene explained the situation and informed the board that the Chippewa County Auditor has been informed and the correction has been made.

3. Action Items a. Revolving Loan Fund M/S/P – Jim Dahlvang, Debra Lee Fader made motion to approve the deferral of payment

for SEWearables for September, October & November and resume full payments on December 1, 2013 while refinancing the loan at 4.5% over 72 months.

M/S/P – Jim Dahlvang, Debra Lee Fader made motion to approve the first payment for C&L Powdercoat’s second loan to begin on November 1, 2013.

b. Clara City SCDP Application Contract M/S/P – Mark Bourne, Kathi Thymian made motion to authorize the signature(s) on the

contract that would provide technical assistance on the SCDP application for the City of Clara City.

c. Clara City Hedgehog Application M/S/P - Jeff Olson, Rusty Dimberg made motion for the approval of the application for

$4000.00 to the City of Clara City from the Hedgehog fund for the SCDP application. 4. Discussion Items a. Bus Tour Follow-up Discussion was made and feedback was given from the bus tour in July:

The day gets long but it’s great

Do this every other year

We’ve hit every county now since the annual bus tour began

The businesses are very welcoming and happy to see us

As new board members, Debra Lee & Graylen both thought it was great

Many said they enjoyed it very much

Learn a lot about the communities in other areas of the region and that is interesting and nice to see

Very impressed with the Big Stone County demonstration

Idea: Visit places that haven’t used our assistance b. Greater Minnesota Partnership Dan Dorman, Executive Director of the Greater Minnesota Partnership (GMNP) came to

speak about the new public-private partnership that was recently formed. GMNP is a nonprofit Minnesota corporation devoted to advocating for state economic development policies and resources that benefit Greater Minnesota. The Partnership consists of businesses, chambers of commerce, economic development authorities, cities and nonprofits from throughout Greater Minnesota and is governed by a Board of Directors. The GMNP will be holding a regional meeting on Friday, October 11th at Prairie’s Edge Casino Resort to provide information and gather feedback.

Adjournment A motion by Graylen Carlson, Brett Buer for adjournment was made at 7:40pm. APPROVED BY: PREPARED BY: _______________________________ ___________________________________ Gary Hendrickx Jackie Sigdahl RDC Chairman RDC Administrative Assistant

#1b

ACTION MEMO TO: Upper MN Valley RDC Commissioners FROM: Arlene Tilbury Financial Officer DATE: October 22, 2013 RE: September 2013 Check Listing &Treasurer’s Report Attached is the treasurer’s report for September 2013. On the bottom of the revenue report (page 2) I have added the current and year to date pass-thru revenue that is not included on the itemized revenue report. Pass-through items include things like payments to grants recipients; Meander and Tourism ads and special activities; Byway projects. At the end of the disbursement report (page 3) are the agency balances for the following accounts: general checking, money market, revolving loan fund, agency auto and equipment fund. Also enclosed is the check listing that lists all checks cut for the month of September 2013. ACTION REQUESTED: For the Commission to approve the attached September 2013 Treasurer’s Report and the September 2013 check listing (check #17801 through 17831) as presented. Enc.

Page 3

September-13 FY14

Budget Current YR-To-DT

Agency Expenses

Salaries/Fringe 602,811 46,364 130,249 22%

Commissioner's Expense

Per Diem 12,000 850 7%

FICA 1,000 65 7%

Public Officials Ins. 5,000 1,992 1,992 40%

Meeting Expense 3,000 700 23%

Travel C&C 7,500 181 1,334 18%

Training 7,000 - 0%

Art Crawl/Meander 32,000 1,576 2,011 6%

Audit 13,000 - 0%

Computer Technical Assistance 10,000 270 711 7%

Contract for Services/Comm Dev 9,000 4,000 4,000 44%

Copy Charge/Xerox lease 8,500 240 215 3%

Depreciation 11,000 815 2,493 23%

Dues 3,500 600 2,475 71%

Insurance 1,000 844 844 84%

Intern/high school student 12,000 - 0%

Legal Fees 2,000 - 0%

Miscellaneous/Employee Morale 4,000 128 188 5%

Office Rent 12,210 2,033 4,067 33%

Postage 6,000 1,575 2,971 50%

Printing/Advertising 5,000 2,166 43%

RDC Marketing Item 2,000 589 29%

Registration/Training 10,000 1,275 2,756 28%

Repairs/Maintenance 2,000 - 0%

Software GMS/GIS/General 8,000 98 2,883 36%

Sub./Publications 2,000 600 987 49%

Supplies 6,000 1,676 1,944 32%

Telephone/Internet 4,000 299 888 22%

Tourism Trade Shows/Ads/Byway 15,000 857 2,575 17%

Travel/Staff 25,000 4,495 7,356 29%

Web Hosting/Maintenance 3,500 609 609 17%

Total Expenses 845,021 70,526 177,916 21%

405 (65,210) (93,430)

General Checking 63,812 Hedge Hog Grants 20,000

Money Market 265,871 Clara City SCDP (4,000)

Certificate of Deposit 300,000

RLF Savings 235,304

Agency Auto 32,986

Equipment Fund 24,373

Balance 16,000

UMVRDC Secretary/Treasurer UMVRDC Executive Director

Page 3 Treasurer's Report

September 2013 CHECK LISTING

Checks 17801 To 17831

Check# Check Date Vendor Name Check Amount Description

17801 09/05/2013 Advocate Tribune 1,157.97 Meander Postage

17802 09/05/2013 CHIPPEWA COUNTY AUDITOR/TREASURER 439.70 September Dental Insruance

17803 09/05/2013 CITY OF APPLETON 1,016.67 September Rent

17804 09/05/2013 Federated Telephone 308.50 Spam Filter, Computer Maintenance

17805 09/05/2013 Grants Management Systems, Inc. 92.00 Supplement Maintenance, Webinar Session

17806 09/05/2013 NCPERS Minnesota 96.00 Life Insurance - June, July, August

17807 09/05/2013 LIEBE DRUG INC. 3.49 Miscellaneous

17808 09/05/2013 Mediacom LLC 229.91 PW Telephone, Agency Telephone

17809 09/05/2013 Minnesota Trails 684.00 Byway Advertising

17810 09/05/2013 Montevideo Publishing 42.60 PW Annual Gathering Advertising

17811 09/05/2013 Northwest Regional Development Commission 31.67 Executive Director Meeting Supplies

17812 09/05/2013 Outdoor News Publications 618.00 Prairie Waters Advertising

17813 09/05/2013 Pioneer TV 500.00 Meander Corporate Sponsorship Contract

17814 09/05/2013 Ruth Keller 75.00 August Office Cleaning

17815 09/05/2013 Senior Perspective 216.21 Meander Advertising

17816 09/05/2013 Swift County Monitor-News 21.00 Prairie Waters Annual Gathering Advertising

17817 09/05/2013 Vivid Image, Inc. 609.00 RDC Website Hosting

17818 09/05/2013 Wilcox Law Office PA 470.00 Legal Fees and UCC Filing - R&R Outdoors

17819 09/05/2013 Xerox Corporation 247.28 Copier Lease

17820 09/19/2013 Chase Card Services 2,485.69 Dawn - NADO travel, Supplies, APA Registration

563.28 Arlene - Meander Postage, Purchase Stamps, Supplies

540.95Jenifer - PW Facebook Ads, Meander Facebook Ads, Meander

Advertising

965.96Kristi - Meander Facebook Ads, Meander Supplies, Meander

Postage, Staff Travel

800.75Lindsey - Staff Travel - Strategic Planning Hotel and meals with

Kristi, APA Membership

196.93 Agency Auto Gas

17821 09/19/2013 Dana F. Cole & Company LLP 27.00 September 13 Flex Fee

17822 09/19/2013 Eugene Schwitters 49.72 Sept 13 RLF Board Travel Reimbursement

17823 09/19/2013 Joe Fox 11.30 Sept 13 RLF Board Travel Reimbursement

17824 09/19/2013 Louis Sherlin 57.63 Sept 13 RLF Board Travel Reimbursement

17825 09/19/2013 Scarcely Ltd. Inc. 2,250.00 Benson SCDP Owner Rehab

S:\SHARED\RDC Info\RDC Meetings\2014 RDC Mtgs\10-13\FY 14 Check Listing FY 14 Check Listing

17826 09/19/2013 State Bank of Bellingham 150,000.00 Open CD

17827 09/19/2013 Terry Overlander 23.73 Sept 13 RLF Board Travel Reimbursement

17828 09/19/2013 Walter W. Wulff 38.42 Sept 13 RLF Board Travel Reimbursement

17829 09/26/2013 MN Council of Non Profits 400.00 FY 14 Annual Membership

17830 09/30/2013 Bluestem Heritage Group 4,000.00 Byway Interpretive Plan - 3 of 6

17831 09/30/2013 Farmers & Merchants Insurance Agency 437.98 Meander Liability Insurance

169,708.34

UMVRDC Secretary/Treasurer Dawn Hegland, Executive Director

Gray highlights are pass-thru expenses

S:\SHARED\RDC Info\RDC Meetings\2014 RDC Mtgs\10-13\FY 14 Check Listing FY 14 Check Listing

#1c

ACTION MEMO TO: Upper MN Valley RDC Commissioners FROM: Dawn Hegland, Executive Director DATE: October 22, 2013

RE: RLF Plan Certifications EDA requires semi-annual approvals of the RLF plan. We try to coordinate this with the semi-annual reporting periods in September and March; reports are due one month after the reporting period ends. The first resolution is for the existing RLF Plan for the $1.2million we currently have revolving. There have no changes since the last plan approval in March 2013. The second resolution is for the new 2011 Disaster Response RLF Plan which was established to guide the administration and disbursement of $500,000 in new RLF funds. There have been no changes to this plan since its last approval in March 2013. The Loan Advisory Board will review the RLF plans again towards the end of the calendar year or at any time EDA makes recommended changes. Any recommendations that come out of either review process will be presented to the UMVRDC for action and final submission to EDA. Both RLF plans can be found on the UMVRDC’s website at: www.umvrdc.org ACTION REQUESTED: Approve and authorize the Chairman and Executive Director’s signature on the RLF Plan Certification Resolutions. Attachments

RESOLUTION Certification of the Upper Minnesota Valley Revolving Loan Fund Plan

# 14-03 WHEREAS, the Upper Minnesota Valley Revolving Loan Fund (RLF) is committed to long-term gap

financing assistance to businesses in Region 6W; and WHEREAS, the establishment of long-term employment opportunities for residents in the region is high

priority; and WHEREAS, input for creating the RLF Plan was solicited from each Region 6W county through a RLF

Advisory Board membership, Upper Minnesota Valley Regional Development Commission and members of the Region 6W Comprehensive Economic Development Strategy (CEDS) Committee in order to ensure broad geographic representation; and

WHEREAS, the UMVRDC has reviewed the RLF’s performance for the preceding year and the RLF Plan;

and WHEREAS, the RLF Plan is consistent with and supportive of Region 6W’s CEDS; and

THEREFORE, BE IT RESOLVED, that the Upper Minnesota Valley Regional Development Commission

certifies and endorses the Upper Minnesota Valley RLF Plan as prepared and is committed to supporting the goals and objectives found within.

____________ Chairman (UMVRDC) Date ATTEST: _____________ Executive Director (UMVRDC) Date

RESOLUTION Certification of the Upper Minnesota Valley 2011 Disaster Response

Revolving Loan Fund Plan #14-04 WHEREAS, the Upper Minnesota Valley 2011 Disaster Response Revolving Loan Fund (RLF) is

committed to long-term gap financing assistance to new and expanding businesses in Region 6W WHEREAS, the priority of this RLF is assisting businesses, industries and individuals affected by natural

disasters especially those impacted by storms and flooding in the spring of 2011; and WHEREAS, the establishment of long-term employment opportunities for residents in the region is high

priority; and WHEREAS, input for creating the 2011 Disaster Response RLF Plan was solicited from each Region 6W

county through a RLF Advisory Board membership, the Upper Minnesota Valley Regional Development Commission and members of the Region 6W Comprehensive Economic Development Strategy (CEDS) Committee in order to ensure broad geographic representation; and

WHEREAS, the UMVRDC has reviewed the RLF’s performance for the preceding year and the RLF Plan;

and WHEREAS, the RLF Plan is consistent with and supportive of Region 6W’s CEDS; and

THEREFORE, BE IT RESOLVED, that the Upper Minnesota Valley Regional Development Commission

certifies and endorses the Upper Minnesota Valley 2011 Disaster Response Revolving Loan Fund Plan as prepared and is committed to supporting the goals and objectives found within.

____________ Chairman (UMVRDC) Date ATTEST: _____________ Executive Director (UMVRDC) Date

#2a

INFORMATION MEMO TO: UMVRDC Commissioners FROM: Kristi Fernholz, Arlene Tilbury, Katie Kellner, Jenifer Fadness & Lindsey

Knutson DATE: October 22, 2013 RE: Planner Update In an effort to update the Commission on projects, staff has prepared the following brief summary of current projects.

Hedgehog Grants: FY14 Hedgehog Funds Available: $ 20,000 Funds Awarded No funds awarded yet in FY14

Contracts: Milan Comprehensive Plan update - Kristi Kristi attended the October 1 City Council meeting where the council held a public hearing for the comprehensive plan. There were no comments and the council adopted the plan. Swift County Solid Waste Plan - Kristi Final changes have been submitted and we are awaiting approval. Kristi and Scott Collins will meeting MPCA on October 22nd.

Program Updates: Meander – Kristi, Jenifer The 10th Annual Meander was a success! Artists report similar crowds, similar sales but many new faces. Our advertising campaign was stepped up and despite the rain, we had a great weekend! We are currently compiling data and will have a report ready as soon as we can. We received notice that Meander 2014 Southwest Minnesota Arts Council (SMAC) was successful for the full amount of $5000. A grant was also submitted to Explore Minnesota Tourism for advertising in 2014. Hazard Mitigation – Kristi Kristi received approval to work on a Pre-Disaster Mitigation (PDM) application for an All-Hazard Mitigation Update for the Upper Sioux Community. The furlough has made it extremely difficult, but we still plan on meeting the grant deadline of October 18th. Revolving Loan Fund – Dawn As of June 30, about $600,000 is available for lending.

Minnesota River Valley National Scenic Byway (MRVSB) - Kristi The byway alliance plans to meeting October 24th in Redwood Falls to complete more work on their interpretive plan. A grant was submitted to Explore Minnesota Tourism to create a new website in 2014. Prairie Waters Regional Tourism – Jenifer, Kristi Staff continues working on the 2014 draft budget and workplan, as well as submitting the 2014 EMT grant. The EMT grant provides matching funds for advertising, and the amount available for 2014 has doubled from last year – it was $4000, it’s now $8000. The EMT funds go a long way in stretching our marketing dollars. Jenifer attended the Oct. 1 Chippewa County Commissioners meeting to share what Prairie Waters has been working on, answer questions, and thank them for their continued support. Jenifer attended an EMT Listening Session in New Ulm on Oct. 8. There was a presentation on the strategic planning that EMT is doing, and attendees were asked for feedback in several key areas.

Safe Routes to School - Lindsey The SRTS public open houses are finished and we received some good feedback and talked to many parents about the SRTS program in their community. The first round of plans are still being finished up. Lindsey has kicked off the second round of plans by contacting those communities to start student travel tallies and schedule the first SRTS Team meeting. Lindsey has also initiated the SRTS non-infrastructure implementation grant and will be working with the communities that have gone through the planning process to implement ideas brought forth through that process.

Transportation Alternatives Program (TAP) - Lindsey Lindsey has been working in both District 4 and 8 to help develop the TAP application and application guide. The Letter of Interest went out to communities in early October and the full application will be available in late October or early November. District 4 has $1,200,000 ($600,000 per year) and District 8 has $600,000 ($300,000 per year) to program out to locals for STIP FY 2017 and 2018. A 20% cash match is needed and the TAP funds will only go to construction costs, not engineering.

Small City Development Grants (Ortonville) – Katie Katie received notification that Ortonville has been given approval to begin requesting funds.

Dawson EDA Industrial Park – Katie The City held a special city council meeting to discuss the rising costs of the project. Katie will work with the engineer to modify the project in an attempt to bring down costs. Katie will then present the modifications to EDA for their consideration once they return from furlough.

Canby Zoning Ordinance Update – Lindsey Lindsey has begun work on Canby’s Zoning Ordinance Update. She is working on identifying parts of the old ordinance that need to be updated. Madison Comprehensive Plan Proposal – Kristi and Jacki Kristi and Jacki met with city manager Jon Rademacher on September 25th to discuss a proposal for a new comprehensive plan for the city of Madison. The proposal is to include a strong public input component.

Benson projects – Lindsey, Jacki and Kristi Staff met with the city administrator Rob Wolfington to discuss project and researched Hazard Mitigation strategies amendments, Legacy funding for historical properties, fire grants and transportation funding options. Clara City Small Cities Grant 2013 Application – Kristi and Jacki Krist and Jack attended the Clara City EDA meeting on September 23rd to discuss the process to apply for SCDP funds. The EDA approved the proposal to have the UMVRDC conduct a survey and prepare a pre-application. The city council approved the contract on October 7th. Surveys were sent out October 10th to determine the target area. The Pre-application is due November 14th.

Contracts active in FY14 Anticipated Completion Swift County Solid Waste Plan December 2013 Milan Comp Plan Update December 2013 Dawson EDA Grant February 2016 Granite Falls EDA Grant March 2016 Big Stone HM April 2016 Chippewa HM April 2016 Yellow Medicine HM April 2016 Canby Zoning Ordinance Update August 2014 Safe Routes to School Plans 1 (MnDOT) October 2013 Safe Routes to School Plans 2 (MnDOT) October 2014 SRTS Implementation (MnDOT) October 2015 INFORMATIONAL ONLY- No Action requested

#2b

INFORMATION MEMO TO: UMVRDC Commissioners FROM: Dawn Hegland DATE: October 22, 2013 RE: Director’s Report

In an effort to update the Commission on my activities, I prepared the following brief summary of actions that I am working on.

Continued to review applications and post the job opening for a new community development planner. We attempted to set up 2 interviews at the end of September but both declined and interview because they decided they would not make to move to our area. We did one final interview in October and after reviewing the options have decided to make an offer to our top candidate from our first round of interviews. I will be meeting with that candidate to discuss the position in more detail on Oct 16 and may have an offer for the board to review at the October meeting.

The majority of the last month was reviewing staffing needs as it relates to budget and workload. Numerous meetings with Lindsey, Jacki and Kristi and Arlene to discuss status and options on restructuring projects and duties.

Completed the exit interview with Jacki Anderson and reviewed status of her plans and projects.

Attended the Greater MN Partnership meeting in Granite Falls on 10/11/13 to hear about their legislative initiatives.

Had three meetings to discuss three possible RLF loans with banks and other gap lenders.

Met with Pioneer Public TV architects about the potential impact of their redevelopment project in Appleton.

On September 20, after consultation with Arlene and per our financial policy, we took out a $150,000 CD for 12 months at 1% at State Bank of Bellingham. Our reserves balance will be reviewed again in July.

INFORMATIONAL ONLY- No Action requested

#3a

ACTION MEMO

TO: Upper MN Valley RDC Commissioners FROM: Dawn Hegland, Executive Director DATE: October 22, 2013

RE: Loan Advisory Board Recommendations An October meeting was not held because there were no new loan requests or major action items to consider. However, the board electronically reviewed the subordination request below. No concerns were received from the Loan Advisory Board. LOAN ADVISORY BOARD RECOMMENDATIONS:

Citizen’s Alliance Bank (CAB) of Clara City has requested a subordination agreement from the UMVRDC for Swift Manufacturing. Upon a recent review of UCC filings CAB discovered their current UCC falls behind the UMVRDC. Originally CAB was the primary lender in the project. Swift Manufacturing has an approximate balance of $10,000 left on a $100,000 loan. It is anticipated that this loan will be paid off within one year’s time. Upon signing the subordination request the UMVRDC would retain a second position behind the bank as outlined in the original project application. See the subordination agreement attached. LOAN REQUEST: Approve Citizen Alliance Bank’s subordination request for Swift Manufacturing and authorize the Executive Director’s signature on the subordination agreement. Recommend approval, denial or modification of loan request.

SUBORDINATION AGREEMENT

THIS SUBORDINATION AGREEMENT is entered into on this 23rd day of October, 2013, by Upper Minnesota Valley Regional Development Commission (“UMVRDC”), having an address of 323 W Schlieman Ave, Appleton, MN, 56208 and Citizens Alliance Bank (“CAB”), having an address of 55 1st St NW, Clara City, MN 56222. WHEREAS, UMVRDC is a creditor and secured party on loans to Swift Manufacturing Company Inc (“Swift”), having an address of 8015 Hwy 7 SE, Clara City, MN, 56222. These loans are secured by a UCC Financing Statement filed on March 17th, 2009 as filing #200915365402 with the Minnesota Secretary of State’s Office covering all of the debtor’s inventory, accounts receivable, equipment, etc. WHEREAS, CAB is a creditor and secured party on loans to Swift. These loans are secured by a UCC Financing Statement filed on March 5th, 2010 as filing #201019376972 with the Minnesota Secretary of State’s Office covering all of the debtor’s inventory, accounts receivable, equipment, etc. WHEREAS, UMVRDC’s MN UCC filing described above holds a priority position over CAB’s MN UCC filing described above. NOW, THEREFORE, for good and valuable consideration, the above parties agree as follows: 1. That regardless of any priority otherwise available to UMVRDC by law or agreement and any security interest in which UMVRDC may now hold or at any time hereafter acquire, that UMVRDC’s lien position is fully subordinate to CAB’s lien position. 2. In the event UMVRDC pursues any remedies available against any of the collateral secured by any of their security agreements, CAB’s lien position shall be treated as superior and have priority over the collection of any collateral. 3. In the event UMVRDC repossesses any of the collateral and disposes of or sells any such collateral, then in such event, all proceeds realized from the sale of said collateral shall be first paid to CAB’s outstanding obligations. Upper Minnesota Valley Regional Development Commission By:_______________________________________________ Dawn Hegland, Executive Director Citizens Alliance Bank By:_______________________________________________ Ben Peterson, Loan Officer

#3b

ACTION MEMO

TO: Upper MN Valley RDC Commissioners FROM: Dawn Hegland DATE: October 22, 2013 RE: Community Development Planner

A conditional job offer has been extended to Sarah Radermacher for the Community Development Planner position with a start date of November 1st. The offer was extended contingent upon:

1. Commission approval; 2. Completion of an acceptable pre-employment background check (civil, criminal, driver’s record, and credit check); and

I will be meeting with Sarah on Oct. 16 to review the position and establish a starting salary. I will have an updated memo with that information at the Oct. 22 RDC meeting. ACTION REQUESTED: To confirm the offer of employment for Sarah Radermacher- Community Development Planner.

#3c

ACTION MEMO

TO: Upper MN Valley RDC Commissioners FROM: Dawn Hegland DATE: October 22, 2013 RE: Staffing

In the last few weeks I have been spending a great deal of time reviewing our staffing needs and opportunities. I will continue to develop some options over the next week or two. My preliminary recommendations at this point include advertising for a community development planner with 3-5 years’ experience to work under the EDA planning grant AND advertising for a loan officer with 2 years’ experience preferred to manage the UMVRDC RLF. I am still reviewing the budgetary implication of this option and will be prepared to share more details next week.

In addition, due to the superior performance and extra workload that was covered by Kristi Fernholz and Lindsey Knutson over the summer months in Jacki Anderson’s absence, and due to the need to continue their additional workload for the next several months as we bring additional staff onboard I would propose a $2,000 increase for both Kristi and Lindsey.

ACTION REQUESTED:

Authorize advertising for a community development planner and a loan officer.

Authorize a $2,000 salary increase for Lindsey Knutson and Kristi Fernholz.

#4a

DISCUSSION MEMO

TO: UMVRDC Commissioners FROM: Dawn Hegland DATE: October 22, 2013 RE: Greater MN Partnership

At the September UMVRDC meeting Dan Dorman presented information about the Greater Minnesota Economic Development Partnership. On September 11, the Partnership hosted a regional meeting in Granite Falls to get input from cities, counties, EDA’s about economic development issues in order to develop their legislative initiatives for the next legislative session. Representatives from Granite Falls, Montevideo, Ortonville, Dawson, Clarkfield, Chippewa County, Yellow Medicine County, Swift County RDA, LQP County and the EDA and others from the neighboring area attended and participated in a good discussion on the issues. The Partnership has requested a calendar year 2014 membership contribution from all those entities as well as each RDC. Last year the RDCs collectively purchased a membership together. This option is no longer available. They have requested our membership at $1,000. Attached is information about the Partnership and their request for membership. ACTION REQUESTED: To discuss and consider a membership contribution of $1,000 to the Greater Minnesota Partnership.

GMNPI GREATER MN PARTNERSHIP

What is the Partnership?The Greater Minnesota Partnership is a public-private nonprofit corporation committed to stimulatingeconomic growth and prosperity in Greater Minnesota.

Who should join?Greater Minnesota businesses, chambers of commerce, economic development authorities, nonprofitsand cities are all encouraged to join the Partnership.

Why join?Membership in the Partnership provides the opportunity to join with other organizations to become aneffective voice for Greater Minnesota economic development. Members receive up-to-date informationabout Partnership initiatives and economic development policy changes being considered at the Capitol,as well as a say in shaping the Partnership’s priorities and legislative agenda.

_________________

Company InformationCompany/Organization:__________________Address:_______________________________

City:___________________________________State:____________ Zip:_________________Main Phone:_________________________

Contact InformationName:_________________________________Email:________________________________Phone:________________________________

Membership Level:

Please send application and payment to:Greater Minnesota PartnershipAttn: Executive Director Dan Dorman525 Park Street, Suite 470St. Paul, MN 55103* Please make checks payable to GMNP

Join the Partnership now! Payment not due until Feb. 1, 2014.

MembershiD Levels

Business Membership• Over $50 million in sales: $5,000• $25 to $50 million in sales: $4,000• $10 to $25 million in sales: $2,500• $5 to $10 million in sales: $1,000• Under $5 million in sales: $500

EDA Membership (Population Served)• Over 40,000: $5,000• Between 20,000 and 40,000: $2,500• Between 5,000 and 20,000: $1,000• Under 5,000: $500

Chamber Membership$2 per member of the local chamber up to$2,500.

Other memberships and nonprofit fundsare variable.

Questions? Contact Dan Dorman at (612) 245-5204 or dan@gmnp.org

GMNPGREATER MN PARTNERSHIP

2013 Legislative ReportSuccess for the Partnership

The Greater Minnesota Partnership, formerly the Greater MinnesotaEconomic Development Partnership, developed, supported and helpedpass economic development policies and funding that will create jobs andeconomic growth in Greater Minnesota.

Partnership Initiatives Passed in 2013:

NEW Greater MN Internship tax credit program (HF 331-Norton, SF 241-Eken)This program is designed to help keep brain power in rural areas. A GreaterMN business that provides an internship to a Minnesota postsecondarystudent (both public and private institutions) will receive 40% of the intern’ssalary, up to $2,000 per intern, in the form of a tax credit.

NEW Greater MN Business Expansion program (HF 1578-Savick, SF 1451-Jensen)This program offers Greater MN businesses an incentive to grow inthe city where they are already located by providing tax credits. Theseexpanding businesses would be exempt from sale taxes on purchases oftangible personal property, taxable services and construction materials.

Joining the Partnershipin 2013:

• 9 Chambers of Commerce• 19 Economic Development

Authorities• Minnesota Association of

Development Organizations• 6 Initiative Foundations

These members helped thePartnership develop and advocateproposals considered by theLegislature and Governor.

SUCCESS: These programs were funded by the Legislature at a total of $18 million a biennium!

The Partnership Successfully Advocated for Changes to Job Creation Fund

In addition, the Partnership advocated for the adopted changes to the Governor’s proposed Job Creation Fund tobenefit Greater MN. This program offers several incentives to help businesses expand or locate in Minnesota. GreaterMN companies are eligible for more years of benefits (7 vs. 5), higher capital investment rebates (7.5% vs. 5%), and

subject to lower employee retention numbers (75 vs. 200) than the metro.

Other Partnership Programs Promoted in the 2013 Session:

NEW Greater MN Job Training program (HF 292-Ward, SF 240-Tomassoni)This program provides employers with money for training new employees when trained employees are not availableand other state programs do not meet the training needs.

ENHANCEMENTS to the Angel Investment Credit program for Greater MN (HF 329-Simonson, SF 226-Koenen)This proposal would increase the credit from 25% to 50% for investments in qualifying Greater MN businesses,in an attempt to attract private investment to Greater MN. Currently, 95% of businesses receiving investmentsand 90% of allocated program dollars are in the metro area.

£MNPGREATER MN PARTNERSHIP

Help Build a Stronger Program in 2014Goals:

• Develop bigger, stronger economic development proposals that can be introduced in 2013 andbecome a topic of discussion in the 2014 election.

• Build the Partnership by adding membership so that it can be an even stronger advocate for stateeconomic development policies and resources that benefit Greater Minnesota.

The Partnership’s Priorities are Driven by a Board of Directors

Led by Executive Director Dan Dorman, the Partnership is in the process of establishing a Board ofDirectors consisting of representatives from a wide array of Greater Minnesota businesses, chambersof commerce, economic development authorities, nonprofits and cities.

2014 Agenda Will Be Determined Through Regional Meetings

The Partnership will sponsor a series of regional meetings at various cities throughout the state to gatherinput from business owners, nonprofit organizations, economic development professionals and cityleaders on ways the state can remove barriers and provide incentives for economic growth in GreaterMinnesota. Topics of discussion will include investments needed for infrastructure (including highwaysand broadband), business incentives, tax policy and regulatory issues. Information gathered at themeetings will be used by the Board of Directors as it sets the Partnership’s 2014 legislative agenda.

Why Join the Partnership?

Membership provides the opportunity to join with other organizations to become an effective voice forGreater Minnesota economic development at the Capitol!

Questions about the Partnershipor Membership Information?

Contact Executive Director Dan Dormandangmnp.org61 2-245-5204 (cell)

MN P The Partiiersliip in the News

Dan Dorman: Unite to Keep Greater Minnesota GreatGrand Forks Herald, Aug. 29, 2013,

ST. PAUL Before I was a legislator and economic development director for the city of Albert Lea, Minn. I sold tires. And let me tellyou, if there’s even a tiny hole anywhere in a tire, the whole thing slowly goes flat.

That’s the same lesson I hope to spread in my new position as the executive director of the Greater Minnesota Partnership: The state can’tkeep rolling if we’ve got a leak and in some cases a flat tire.

Greater Minnesota is strong. More than 45 percent of the state’s labor force is located in Greater Minnesota. Distinctly “rural” industriessuch as logging, mining and agriculture remain integral to the state’s economy.

Businesses such as Hormel in Austin, Schwan’s in Marshall, Arctic Cat in Thief River Falls and Marvin Windows in Warroad bring inmillions of dollars to the state each year, not to mention thousands ofjobs.

But despite the amount of money its businesses bring in and the number of jobs it provides, Greater Minnesota has sorely lacked anorganized. unified voice aimed at getting its needs met. Until now, that is.

The Greater Minnesota Economic Development Partnership — a new public-private partnership made up of businesses, cities, chambersof commerce. economic development authorities and nonprofits — is that voice for rural Minnesota.

In order to develop a strong economy statewide, Minnesota needs an organization like the partnership to speak out about the needs ofGreater Minnesota. The metro area already has a 20-year vision for economic growth which includes increased investment in high-techindustries and a multi-billion-dollar light rail system. But Greater Minnesota currently lacks such vision and planning.

The metro area isn’t going to solve Greater Minnesota’s problems for us. It’s time for communities and businesses in Greater Minnesotato join together to define problems and develop our own solutions to concerns such as infrastructure, tax policy and business growth.Greater Minnesota business is doing well, but it can do even better with stronger state policies and more resources. An organization likethe partnership is needed to advance the economic development goals of Greater Minnesota and, in turn, the entire state.

1 decided to take on the challenge of leading the partnership because I know how great Minnesota is and how much better it can be. As theowner of a small business in Albert Lea. I have lost customers and business to businesses located in Iowa because of Minnesotastate policies that are not as competitive as those in Iowa. As an EDA director, I too often saw my community miss out on new businessopportunities because other states offered better incentives.

And ‘hi le I wanted every new job in our area, if not Albert Lea I wanted them in Minnesota.

As a legislator, I witnessed great ideas get squashed because they didn’t have a strong enough support group behind them. In other words,I’ve been there, and I’m tired of watching great opportunities slip away.

Why do we need the partnership? Don’t we already have economic development groups that advocate for the same goals?

Well, not exactly. While rural and urban areas should be on the same team when it comes to the state’s economic growth, the needs ofGreater Minnesota differ greatly from those of the metro and often are subservient to powerful metro interests, If we don’t begin toaddress economic growth in Greater Minnesota, we’ll all be in trouble.

For example, a 2012 study by the Federal Communications Commission found that nearly 24 percent of rural residents in the UnitedStates lack broadband access. As companies become increasingly global, access to something as basic as consistent Internet and cellphone service is a crucial issue facing rural Minnesota.

Not only is it hard to conduct business without adequate technology, but young, talented workers increasingly won’t move to a placewhere they can’t even access YouTube.

The partnership is designed to remind legislators and other decision-makers that Greater Minnesota remains vital to the state’s economy.The state should continue to capitalize on the strengths of Greater Minnesota, but it also must address some bumps in the road.

After all, a strong Greater Minnesota and metro area will ensure that we keep Minnesota rolling.

Dorman is executive director of the Greater Minnesota Economic Development Partnership, a small-business owner and a formerRepublican state representative from Al bert Lea.

MN P 11w Partnership in the News

Pioneer Viewpoints: A louder voice for rural Minnesota

Bemidji Pioneer, Monday, September 16. 2013, Matt Cory

The board of Greater Bemidji is expected to vote soon on whether to join a new statewide group that says it willprovide an outlet for rural Minnesotans when it comes to economic development issues.

The Greater Minnesota Economic Development Partnership was formed this summer. ironically at the Coalition

of Greater Minnesota Cities conference in Bemidji. The group aims to bring together cities, businesses and

nonprofit organizations to better advocate for jobs and investment in greater Minnesota.

The board should get behind the effort. Any time citizens in greater Minnesota (read, not the Twin Cities) can

have a greater voice in how economic development policy, funding and promotion are formed is a good thing.

“I’ve argued for quite some time that the state of Minnesota simply doesn’t have a rural economic development

strategy,” Dave Hengel, executive director of Greater Bemidji, told reporter Bethany Wesley last week. “We

need one.”

The Twin Cities long has had various lobbying groups, such as the Metropolitan Council, and many of themwork together on long-term economic development goals. such as for tax policy, infrastructure spending and job

creation or job training funding. And when those ideas come to fruition, it’s the metro area that benefits.

Dan Dorman. a former state legislator who also is head of the Albert Lea economic development authority, is

heading the Greater Minnesota Economic Development Partnership. As a former legislator, he knows the

impact lobbying can have on policy decisions.

Better shaping those decisions to benefit all of Minnesota and not just the metro area is a good idea, locally and

statewide. A more robust economy outside the Twins Cities not only helps local economies, but it also sends

money back to St. Paul.

Another benefit of the partnership also can be simply another outlet for Bemidji to get its name out there.

Companies. in-state or out. that are looking to expand 01. relocate to a Minnesota community surely will be on

the partnership’s radar. The partnership can be another way for Bemidji to showcase what it has to offer a

prospective business or industry.

Broadband: What it Means to Your Community and Business

Why is Broadband So Important to the Future of Greater Minnesota?

The Future: A Greater Minnesota Connected with High Tech Infrastructure

• Why is it Important? Failing to invest in 215t

century infrastructure will mean ruralMinnesotans will fall behind in quality of life,education, economic opportunities, access tohealth care, and many other benefits.

o Business: Business is increasinglydone online, and the ability to sell toconsumers worldwide requiresreliable, world-class connections.

o Farming: With farming increasinglybecoming globally competitive, ourcommunities need to be connectedfor up-to-the-minute updates onweather, disease identification,commodity prices, alongside GPSnavigation.

o Healthcare: Greater Minnesota’s long

• 10Mbpsdownload, 6MbpsUploadSpeeds

• 25 MbpsDownload, 6MbpsUploadSpeeds

Terrestrial Broadband, excluding wireless.Data provided by Connect Minnesota

Broadband Coverage

100%

80%

60%

40%

20%

0%Greater MN Metro Area

Households

Connected

Households

Connected

distances require health careprovided over broadband, which is already practiced elsewhere.

o Education: Currently, Greater Minnesota parents bring their children to connected areas miles awayfrom their homes or schools. Is this viable to attract and keep our current residents?

o Independent Living: As the baby-boomers age, the ability to live in remote areas is made easier throughthe connections broadband provides.

• Speed and Access Improvements Can Make a Big Impact:o Speed: The average increase in household income for a broadband speed upgrade from 4 to 8 Mbps is

$120 per month.o Access: With other factors held equal, rural U.S. counties with more broadband adoption (more than

60%) saw 6.3% more growth in median household incomes in 2001-2010 than counties with lessbroadband adoption (less than 60%).

How We Get There: Update State Laws and Support Providers

• What Should We Do? Antiquated state law and deficiencies in state support need to change, so providers canbetter serve Greater Minnesota.

• Specifically:o A variety of entities, from co-ops, cities, counties, and private entities should have the freedom to

provide broadband serviceo State bonding should support long-term investments in broadband infrastructureo The state should support communities with investments in broadband infrastructure

• Remember: To survive in the 21° century, Greater Minnesota will need high-quality broadband, not dial-up orslow service!

Prepared 10/10/2013, by Flaherty & Hood for the Greater Minnesota Partnership

GMNP Access to Capital

There are Solutions for Capital Access Issues. Do We Need Them in Greater Minnesota?

Range of Solutions Available:

Access to capital & markets- -‘-s.’1 t.

0 2922%

From Dell study on capital and markets, “Understandingthe State of Local Startups andSmall Business/’ 2013

originated and sold to secondary market. Operated by collaboration of local governments and private

entities, it works with banks to structure financing.

o Issues: The state established a MN Loan Guarantee Program to support small business financing.

However, the Loan Guarantee Trust Fund was never funded and the loan guarantee percentage may

need to be increased.

• Rural Enterprise Assistance Program:o Description: REAP programs include lending, business management training, technical assistance, and

networking through local community associations. Associations hold meetings to discuss business ideas,

network, and review loan applications.• The Loan Fund: Makes loans to businesses that are members of the association. Limits a first-

time borrower to a small loan. Upon repayment, the limit doubles up to a specified amount.

Training support ensures members have sound business plans and will more likely repay loans.

o Issues: Is this needed in Greater Minnesota?

• Microenterprise Tax Credit:o Description: Provide investment tax credits to applicants for creating or expanding micro business (5 or

fewer employees) that contribute to an economically depressed area through creation of new or

improved income, self-employment, or other jobs in the area. Would apply to more than just

equipment/plant.• Minnesota: Microenterprise employment grew 7.8% from 2002-08 (before recession), while all

other firms grew 4.5%.o Issue: Is a tax credit for microenterprises needed in Greater Minnesota?

Is Access to Capital an Issue In Your Community?

• What has been your experience, either as an entrepreneur or as a business?

• Is there a need for access to capital programs in Greater Minnesota?

• Angel Investor Tax Credit:o Description: Currently, the state has a

program which gives tax credits toinvestors in startup high-techcompanies.

o Issue: Recipients are largely locatedoutside Greater Minnesota — do weneed our own program?

• Minnesota Community Capital Fund:o Description: Program currently

unfunded. State provides 70%guarantee of small business loans

39%

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Fnends exi

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Prepared 10/10/20 13, by FIa[ierty & Hood for the Greater Minnesota Partnership

MNP Corridors of Commerce

The new Corridors of Commerce program will meet only a fraction of our region’s needs.Do we need to increase its funding?

What is the Corridors of Commerce Program?

• Purpose:o Build capacity on highway system by

removing bottleneckso Improve the movement of freight and

remove barriers to commerce• Initial Funding: $300 million in trunk highway

bonds. To fund Greater Minnesota projectsidentified now, it would cost $754 million to$1.1 billion.

• Projects: MnDOT will select and award projectson a competitive basis. The Department is nowseeking stakeholder recommendations onprojects to be funded under the program.

• Issues:o The initial $300 million in funding will

meet only a fraction of the need facingMinnesota’s highways.

o Ongoing, dedicated funding will need tobe provided to the Corridors ofCommerce program, as it targetsinvestments needed in long-overdueeconomic corridors.

Projects Currently Targeted Near Granite Falls:

• Corridors of Commerce “Main StreetEnhancement” projects:o Hectoro Clarkfieldo Montevideo

Questions:

• Is this program a priority in your community?• Should its funding be increased?

Minnesota’s Interregional Corridors andSupplemental Freight Routes

Prepared 10/10/2013, by Flaherty & Hood for the Greater Minnesota Partnership

Support $25M in state bonding for the Greater MinnesotaBusiness Development Public Infrastructure (BDPI) Grant

The BDPI grant program provides grants to cities and counties in Greater This program has anMinnesota of up to 50% of the capital costs of the public infrastructurenecessary to expand economic development, retain or create jobs, or outstanding returnincrease the tax base (l l6J.43l). Greater Minnesota cities, in particular, on investment.depend on this grant program to attract new businesses and createjobs in their communities. —DEED, State of Minnesota 2010

Preliminary Capital Budget Requests.7/15/2009

BDPI Quick Facts:a 107 Greater Minnesota cities have received BDPI grants since 2004* One of DEED’s• 3, I 25 jobs have or will be created and 4,052 jobs retained* best programs.• More than $ 142 million in total investments* —Minnesota Management and Budget

Director Tom Hanson, press conference• Nearly $50 million appropriated by the legislature since 2003* regarding governor’s 2010 bonding bill

requests, 1/15/10• Small grant amounts: $250k — $500k on average

Source DEED

Sample Greater MN cities that have put BDPI grant to good use:

Bagley $204k grant for improvements to help expand hospital and electric co-op• Retained 89 jobs; created 12 new jobs

Wells $ 148k to provide infrastructure for local concrete company expansion* Retained 186 jobs

Jackson $504k (2 grants) to help tractor factory expand and create new industrial park• 100 jobs created; $ I .8M tax base increase

Luverne $650k (2 grants) to meet infrastructure needs of biofuels company and hospital• Retained 28 jobs

East Grand Forks $250k grant for industrial park expansion* Retained I I 5 jobs; created 5 new jobs

Support the Greater Minnesota BDPI grantand help grow Greater Minnesota’s economy.

Prepared by Flaherty & Hood, PA. for the Coalition of Greater Minnesota Cities, 9/10/2013