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EDA adopts workers-comp credit approach for enterprise zone, approves financials and forwards budget to council
Summary
The East Grand Forks EDA approved new rules to use workers-compensation credits within its Border Cities enterprise-zone incentives (capped by project risk class), approved financial reports (including noting a $61,000 discretionary loan fund), and voted to send the draft budgets to city council for levy and finalization.
The East Grand Forks Economic Development Authority on Wednesday approved updates to its enterprise-zone incentives to allow the use of workers-compensation credits as a form of assistance and set program caps tied to project risk class.
Staff told the board the EDA received an annual allocation for the enterprise-zone credits (staff cited an approximate allocation of $103,000) and recommended retaining a baseline of about $100,000 to preserve capacity for future incentives. The proposed policy would cap assistance at a percentage of project cost (discussed around a 50% cap for eligible projects) and vary the cap based on risk class (for example, higher-risk trades would receive different underwriting than lower-risk office projects). The board approved the new rules by motion and roll call.
Separately, the board reviewed financial reports, noting a discretionary loan fund balance of $61,000, and approved the finance reports by motion. The board also voted to forward the draft budgets (general fund and special revenue fund) to city council as part of the preliminary levy and budget timeline; staff said the preliminary levy is due at the end of September and final levy information must go to the state by the end of December.
Board members asked staff to let the loan committee score projects by risk class rather than set fixed limits per use-type, and requested visuals (site mockups) when discussing lot sales and easement issues that affect buildability on specific parcels.
