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EDA discusses marketing-driven 'Harmony Dollars' idea and considers R&D loan exception for Harmony Enterprises
Summary
EDA staff proposed using the marketing budget to buy Harmony Dollars for distribution and presented a request from Harmony Enterprises for R&D funding; the board expressed concerns about contest fairness and budget timing but concurred to explore an R&D loan-eligibility exception and seek partnership funding for the project.
During the May 7 meeting, Harmony EDA staff proposed two potential ways to help local businesses weather pandemic-related revenue losses: repurposing most of the annual marketing budget to purchase and distribute "Harmony Dollars," and considering a loan‑fund exception to support Harmony Enterprises’ research and development project.
Staff member Chris Giesen said the packet included a memo outlining a concept to use the marketing budget to buy Harmony Dollars and hold a contest, possibly via social media, to determine distribution. Board members raised concerns: Kerry Kingsley said the board had not had success with contests in the past, Chair Chris Skaalen worried the distribution might not reach many businesses, and others noted uncertainty in the city budget during the pandemic and that federal and state resources might cover community needs. The board encouraged staff to continue generating ideas but took no formal action on the Harmony Dollars concept.
Separately, Giesen described a request from Harmony Enterprises for assistance funding an R&D project. He said that, under normal circumstances, the business could fund the work internally but is conserving cash to retain employees during the pandemic. Giesen reported outreach to other potential funders (State of Minnesota, MiEnergy Cooperative, Rochester Area Economic Development) without a fit; he suggested the EDA could consider allowing R&D activities to be eligible under the loan fund as an exception and potentially fund 50% of the project if additional funds (for example, 40% from CEDA) could be obtained. The board concurred with exploring that option; no binding commitment or appropriation was made at the meeting.
Board members asked staff to continue outreach and refine program criteria if an R&D exception is pursued. The board also emphasized prioritizing pandemic recovery needs over new Experience Harmony II projects until local financial conditions stabilize.
