08-13-2007 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 13, 2007
Members Present: President Gongoll, Commissioners Dwyer, Farber, Klinzing, Motin, Tveite,
and Zerwas
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Assistant
Director of Economic Development Heidi Steinmetz, City Administrator
Lori]ohnson, and Recording Secretary Jessica Miller
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
Commissioner Morin pulled item 3.1. for discussion.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KLINZING TO APPROVE THE AUGUST 13, 2007 EDA
AGENDA AS AMENDED. MOTION CARRIED 7-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER FARBER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.2. CONSIDER RESOLUTION 07-03 AUTHORIZING MEMBERSHIP IN
THE MINNESOTA MUNICIPAL MONEY MARKET FUND (4M FUND)
3.3. CHECK REGISTERS
3.4. BALANCE SHEET
3.5. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 7-0.
3.1. Taly 9 2007 Minutes
Councilmember Morn made the following changes to page 3, paragraph 5 of the July 9,
2007 minutes:
• Correct spelling of his name from Motion to Morin in the first sentence.
Economic Development Authority Minutes
August 13, 2007
Page 2
Reworded following sentence:
"As a councilmember, Mr. Motin knows that the ert4y rip macy objection the Council had
to the dca€e plan previouslypresented to the Council was keeping Highway 10 at grade."
4. n Mik
No one appeared for open mike.
5. Consider Micro Loan Extension Request -Badger Ventures, LLC
Assistant Director of Economic Development Heidi Steinmetz indicated a Micro Loan was
granted to Badger Ventures in May 2005, which matured July 10, 2007. She stated that
typically, Micro Loan terms last for five yeazs; however, the May 2005 loan was meant to
match the company's financing with The Bank of Elk Rivet She indicated that on July 25,
2007, the Finance Committee reviewed a Micro Loan request from Exic Haehn of Badger
Ventures, LLC to extend the loan to the full five years. The Finance Committee
recommended approval of the extension.
Eric Haehn, Badger Ventures, LLC -asked the EDA to consider waiving the $500 loan
processing fee because this is an extension of a previous loan.
Director of Economic Development Catherine Mehelich indicated that the $500 fee is used
for document processing fees incurred by the attorney preparing the loan documents. She
stated that staff has not reviewed the necessary paperwork modifications yet but would not
be opposed to waiving the fee if the EDA feels it appropriate.
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE REQUEST FROM ERIC
HAEHN OF BADGER VENTURES, LLC FOR A MICRO LOAN EXTENSION
WITH TERMS AS RECOMMENDED BY THE FINANCE COMMITTEE AND
TO COLLECT ACTUAL COSTS INCURRED IN LIEU OF THE $500
PROCESSING FEE. MOTION CARRIED 7-0.
6. Consider Year 2008 EDA Budeet and Resolution Regarding Tax Lew
Director of Economic Development Catherine Mehelich reviewed details of the 2008
proposed EDA budget.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER FARBER TO APPROVE THE PROPOSED 2008 EDA
BUDGET AS PRESENTED BY STAFF IN THE EDA MEMO DATED AUGUST
13, 2007. MOTION CARRIED 7-0.
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER DWYER TO ADOPT RESOLUTION 07-04 ESTABLISHING
THE TAX LEVY FOR THE ELK RIVER ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF ELK RIVER, MINNESOTA.
MOTION CARRIED 7-0.
Economic Development Authority Minutes Page 3
August 13, 2007
C7ndate nn Strategic Industrial Marketing Activities-
Assistant Director of Economic Development Heidi Steinmetz provided an update on
strategic marketing. Ms. Steinmetz indicated that staff will be bringing forward a restaurant
mazketing plan for EDA input next month.
Commissioner Farber questioned what steps to market restaurants have been taken up to
this point.
Ms. Steinmetz explained that staff followed the marketing plan as approved by the EDA
which focuses on industrial and has not concentrated on commercial marketing since no
plan has been approved by the EDA.
Commissioner Farber indicated that this issue was first discussed in July 2006 and has been
discussed at least twice since then. He questioned why staff did not proceed with beginning
to market restaurants even though no official plan was in place.
Ms. Steinmetz explained that it is important to have a strategy before beginning marketing as
marketing is very expensive.
Commissioner Fazber indicated that the direction for staff to begin marketing restaurants
was very clear and he is disappointed that nothing has been done yet.
Commissioner Motin concurred. He explained that restaurant marketing may not be part of
the strategic industrial marketing plan and although marketing consultants have said it won't
work without going through developers, the EDA provided staff with direction to begin
doing so immediately. He acknowledged letters and cold calls may be a haphazazd mazketing
approach but it may have planted the seed with some restaurants.
He noted that he received an NCDA update indicating that Senators Coleman and
Klobuchac have signed a letter of support for the Northstaz Corridor to begin earlier due to
the bridge collapse.
8. Uodate on Downtown Redevelopment Plan Taskforce
Commissioner Tveite provided an update on the Downtown Redevelopment Task Force
meeting. He indicated that the two stakeholders meetings held at Lions Park Center were
very well attended. He stated that there appears to be two main concerns with the plan that
came out at the meetings. He explained that the first is concern with the trail along the river
and the second is keeping Main Street open as an access point.
Ms. Mehelich indicated that public open house dates have tentatively been set foe
September. She stated that the open houses will be an opportunity for people to view the
proposal and provide feedback. She stated that in addition to these public open houses, staff
will be presenting the proposal to various boards and commissions for their feedback.
Commissioner Motin questioned if the plan will go to the various boards and commissions
and then back to the Task Force prior to presentation to the public. Ms. Mehelich indicated
that in order to avoid having different versions of the draft plan, the proposal was to receive
all public input on the draft plan at once and present to the Council after the changes have
been implemented by the Task Force.
Economic Development Authority Minutes Page 4
August 13, 2007
Commissioner Tveite stated that the plan is very comprehensive and he believes
communication with the public is an integral part of the plan.
Commissioner Motin stated that he is concerned with the approach that has been taken at
the meetings. He stated that most people are focusing on Main Street and the river trail and
that other issues and concerns have been raised. He indicated that he thinks if the plan is
presented to the public with so much garbage in it people will continue to focus on those
issues rather than the big picture.
Commissioner Zerwas indicated that he believes a majority of those affected were brought
into the plan at the appropriate time but that communication with those gready affected
could have been handled differendy. He explained that some residents received a mass
mailing which included a map in which their home had been replaced by a street. He stated
that people affected this gready should have been afforded a more personal form of
communication by the Task Force. He stated that he feels like the plan includes two red
hemngs: one being the river walk path and the second being Highway 10 at grade and Main
Street dead-ending. He explained that including these two issues in the plan directs all
comments, criticism, and scrutiny to them and other issues or concerns may be overlooked.
He indicated that what has received the least amount of comment is most likely to become
part of the Final draft of the plan. He stated that if items that most likely will not make it
through the process were weeded out, concentration could be focused on the plan as a
whole.
Commissioner Tveite stated that he objects to the language "garbage" and "red herring" in
referring to the plan. He stated that he explained at the last EDA meeting why the Task
Force included the river walk and why Highway 10 was left at grade. He explained that he is
hopeful that both issues will be discussed again at the Task Force meeting later tonight so
they can be addressed in the plan. He further explained that the goal of the Task Force was
to have a plan that allows for flexibility, which he believes this one does.
Commissioner Farber stated the possibility of keeping Highway 10 at grade still concerns
him and that the Council was very specific, 5-0, about lowering it to below grade.
Commissioner Tveite stated that MnDot has no plans through Elk River for the next thirty
years. He indicated that it makes economic sense for Highway 10 to remain at grade and
feels it would be shortsighted to not consider that alternatives exist besides raising or
lowering Highway 10.
9. Other Business
There was no other business.
10. Adjournment
There being no other business, President Gongoll adjourned the meeting of the Elk River
Economic Development Authority at 6:15 p.m.
Minutes prepared by Jessica Miller.
Economic Developme uthority Minutes
August 3, 2007 ~
Tina Allard
Ciry Clerk
Page 5