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07-09-2007 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 9, 2007 Members Present: President Gongoll, Commissioners IQinzing, Motin, Tveite (5:31 p.m.) and Zerwas Members Absent: Commissioners Dwyer and Farber Staff Present: Assistant Director of Economic Development Heidi Steinmetz, Community Development Director Scott Clark, and Recording Secretary ]ennifer]ohnson 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 5:30 p.m. by President Gongoll. 2. Consider Agenda MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER ZERWAS TO APPROVE THE AGENDA. MOTION CARRIED (6-0). 3. ('nnc~Arr Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER KLINZING TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. JUNE 11, 2007 MINUTES 3.2. CHECK REGISTERS 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED (6-0). 4. Qpen Mike No one appeared fox open mike. 5, C'nn 'der Tax Abatement Request -Metal Craft Ms. Steinmetz introduced Seaa Mowry, Vice President of Metal Craft, and Brian Ertel, of Premier Commercial Properties (Metal Craft's commercial real estate broker). Ms. Steinmetz presented her staff report, which a slight change of the property being 9.8 acres instead of 9.6 as stated in the report. Mr. Ertel passed out a site plan and explained the project layout. Economic Development Authority Minutes July 9, 2007 Page 2 Mr. Gongoll asked what the general timetable would be fox construction and completion of the project. Mr. Ertel stated that constmction would begin in spring of 2008 and completion in the fall of 2008. Mc Gongoll asked if there were any comments or questions fox Mr. Mowry and Mr. Ertel. Mr. Tveite asked what would happen to the existing building. Mr. Ertel stated that decision would be made by the Mowry's, but the plan would be to lease it out to another manufacturing company ox sell it. Mr. Tveite asked if there were any leads yet. Mx. Ertel stated there were no leads yet, but he stated it would be well-suited for another manufacturing company. Mr. Motin asked about the purchase price of the land for this project. Mr. Ertel stated that the actual purchase price of the land was $1.3 million, for 9.8 acres. Mr. Motin asked if the Tax Abatement period could be kept down to 8 yeazs, as this project is asking fox 12 years. Ms. Steinmetz responded that the Abatement amount being proposed is a "not to exceed" amount and the final Abatement amount should decrease the term to under 12 years. Mr. Clazk concurred, and felt a more realistic time period would be around 10 years. Mx. Gongoll complimented the business, stating the positives about this project. He mentioned that this piece of property which Metal Craft will be relocating to has been eyed for some time. The business has more than doubled since they started 30 years ago, and he's happy that they ace staying in the community. Mr. Gongoll gave kudos to the Mowry family, and especially Jack, fox staying in Elk River, and for providing additional employment opportunities to the area. Ms. Klinzing agreed with Mr. Gongoll's comments, and is also happy that Metal Craft decided to stay in town to expand their business. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER ZERWAS TO APPROVE THE TAX ABATEMENT ASSISTANCE FOR METAL CRAFT' MACHINE & ENGINEERING EXPANSION PROJECT. MOTION CARRIED (6-0). ti. ~lodate on Downtown Redevelopment Plan Taskforce Mr. Tveite began the dialogue on the release of the draft plan for the 400-acre redevelopment area, explaining the monthly discussions that have taken place in the past year by the 13-member Taskforce. He stated that the draft will be reviewed next week by the property owners (stakeholders). He stated that the draft is a starting point and the final result should encourage private investors to initiate new projects downtown. Because this is Economic Development Authority Minutes July 9, 2A07 Page 3 a long term plan, the taskforce needed to make some assumptions about certain things, one being Highway 10 and Main Street He mentioned the issues that related to Highway 10 and the reasons why they opted to keep it at grade in the draft plan. Mx. Tveite continued, stating the strength of the area is the Mississippi River; it's currently undemtilized and should be enjoyed more for recreational use. He gave the example Of the River's Edge Commons Park and how this is already drawing people to the area. He discussed the possibilities of a canoe docking area using the trailheads along the river, as well as the opportunities of using the islands. There are possibilities of adding a hotel, along with restaurants, while still maintaining the historic value and look of the downtown. Mr. Tveite finished by stating the taskforce took a lot of time looking at traffic, not just at Highway 10, but at aligning intersections with Main Street, and came up with some ideas. They wanted continuity from Handke to downtown. They wanted to make sure to preserve the housing areas of the downtown area. He emphasized the need to develop a plan that allows both businesses and residential areas to work together. Mr. Clark continued by stating he enjoyed the excellent and worthwhile discussions of the taskforce. He feels this plan needs to be market driven, with the City's role being ready fox change (being proactive rather than reactive). The July 24 stakeholders meeting will provide an opportunity Eor area residents and business owners to attend one of two open houses to provide feedback and a response to the plan. One wish of the task force is to alleviate fears and concerns that residents might have as well as to provide informatton. The taskforce will then use this feedback to make any adjustments that might be necessary, hopefully by the end of the yeaz. They will then go to the HRA with these adjustments and to the Council eazly next year. Mr. Gongoll thanked Mr. Tveite Eor his efforts on this task force. Mr. Motin stated an excellent job was done by the task force, but he was Emstrated with the process. He felt the HRA didn't have enough information available, especially regarding the future of Highway 10, and wonders if this draft plan isn't too premature. He wished a Highway 10 study could be completed and this plan drafted after that. As a councilmember, Mr. Motin knows that the primary objection the Council had to the plan previously presented to the Council was keeping Highway 10 at grade. He also had concerns about the way this draft plan was presented to the public, and why it went to the public first before going to the EDA, the HRA, and the Council. Mr. Clark responded that he felt that it was important to get this out to the stakeholders first to dispel some minors. He feels the plan works as long as there is access along Main and Jackson, but the plan does not work if Highway 10 goes below grade as there would be no access to downtown off of Main and Jackson. The taskforce feels this would isolate the downtown area. However, if Elk River is to determine its goals and objectives for Highway 10 in a land use plan, this plan can be presented to Mn/DOT when they come to assess the Highway 10 area. Mr. Tveite agreed with Mx. Clark and stated the task force wants the city to have a blueprint in place regardless of how long it will take for Mn/DOT to determine the Highway 10 area. Mr. Motin commented that the speed limit in the area may be increased after the highway is reconfigured, and wondered if the task force should have waited until after the geometric study before making this proposal. Economic Development Authority Minutes J>ily ~, zoos Page 4 Mc Tveite responded that the Interregional Corridor Study completed by MnDOT for this area concluded that the speed limit increase resulting from an approximate $14 million investment would sustain an "F" level of service. Mr. Clazk added that it is important that the task force complete its process and that the plan may be amended after a Highway 10 study is completed. Mr. Tveite stated the taskforce is hopeful that the investment that has happened in the past few years in the downtown area will encourage others to invest in order to continue growth in the azea. Mc Zerwas agreed that the investment in the downtown in the past years is encouraging but stated that people may hesitate in further investing if the connection between Main Street and Highway 10 is severed. He also stated the members of the EDA and the Council weren't told what the task force was working on and was wondering if the task force should have waited until the parking plan was presented, as well as presenting a draft plan after completion of the Highway 10 geometric study. Mr. Tveite said that the taskforce realizes this is a first draft, and that revisions will have to be made after the upcoming studies. The task force wants to make sure this plan is great for the downtown area not only now but in the future, and will remain flexible while determining what's best for the downtown area. Mr. Clark agreed with Mr. Tveite's comments and stated that this is an initial draft and the next task force draft is potentially 5 months out. Ms. Steinmetz stated that the task force has worked hard studying the azea in order to produce this first draft and she expressed thanks for their hard work and dedication. Mr. Motin asked why the task force designed the road layout of westbound Main Street directed to Jackson and then to downtown or Highway 10 versus leaving the roads separate. He feels that currently there are traffic issues, and feels that the funnel effect will cause more problems, which are seen currently when a train comes through town. Ms. Klinzing stated that the word "draft" is stamped on the map and also the words "for discussion purposes only." She noted that the discussion has to start someplace but she is afraid the public won't see this is a draft and wanted to make it clear that the Ciry Council has not approved this plan and that it is indeed just for discussion purposes. Mx. Clark commented that the stakeholders meeting will include the disclaimer that the City Council has not approved this draft plan. Mr. Motin asked if the draft plan has been put on the Ciry Website. Ms. Steinmetz replied that it will be added to the Website tomorrow. Orh r B ein None Economic Development Authority Minutes July 9, 2007 8. s]joumment Page 5 There being no other business, President Gongoll adjourned the meeting of the Elk River Economic Development Authority at 6:26 p.m. Minutes prepared by Jennifer Johnson. LN Tina Allard City Clerk