08-09-2011 EDA MIN• MEETING OF THE ELK, RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 9, 2010
Members Present: President Touchette, Commissioners Dwyer, Klinzing, Motin, Tveite, and
Westgaard
Members Absent: Commissioner Zerwas
Staff Present: City Administrator Lori Johnson, Director of Economic Development
Catherine Mehelich, Economic Development Assistant Annie Deckert,
Finance Director Tim Simon, Environmental Administrator Rebecca Haug,
and Executive Secretary/Deputy City Clerk 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 Touchette.
2. Consider Agenda
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE AUGUST 9, 2010 EDA AGENDA.
• MOTION CARRIED 5-0.
3. Consider Consent Agenda
President Touchette requested that item #7, paragraph 4 of the June 14 minutes be amended
as follows:
President Touchette explained that the two most important factors from his perspective are
to make sure that the partnership between the EDA and the Energy City Commission
benefits current businesses and residents and that it contributes to the economic
development opportunities in the city.
MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY
COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. JUNE 14, 2010 REGULAR MEETING MINUTES AS AMENDED
3.2. CHECK REGISTERS
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 5-0.
4. Open Mike
• No one was present.
Economic Development Authority Minutes page 2
August 9, 2010
Consider Year 2011 EDA Budget and Resolution Establishing Tax Levy •
Ms. Mehelich presented the staff report.
Commissioner Motin questioned if any planning or other costs associated with the Gateway
development should be included in the budget. Ms. Mehelich indicated that funding is
included under the legal fee and advertising/marketing line items in anticipation of the
development. She explained that any further costs would like come out of the city's
development fund which, in turn, would most likely be funded from special assessments.
Commissioner Westgaard questioned if sufficient funding is included in the
advertising/marketing line item since it is decreasing. Ms. Mehelich explained the reasons for
the reduction of that line item.
Commissioner Klinzing commented that the Initiative Foundation does good work.
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE 2011 ECONOMIC
DEVELOPMENT AUTHORITY BUDGET AS PRESENTED. MOTION
CARRIED 5-0.
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER KLINZING TO ADOPT RESOLUTION 10-03
ESTABLISHING THE TAX LEVY FOR THE ELK RIVER ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER,
MINNESOTA. MOTION CARRIED 5-0. •
Corzunissioner Tveite arrived.
6. Resolution Establishing the 2011 Referendum Tax Levy as Approved by Voters for a
Recreational Facility to be Leased to the YMCA
President Touchette recused himself from this discussion because he is a member of the
YMCA Board. Vice President Tveite took over this item.
Mr. Simon presented his staff report.
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER DWYER TO ADOPT RESOLUTION 10-04 ESTABLISHING
THE 2011 REFERENDUM TAX LEVY AS APPROVED BY VOTERS FOR A
RECREATIONAL FACILITY TO BE LEASED TO THE YMCA. MOTION
CARRIED 6-0.
7. Energ~City as an Economic Development Tool Update
Ms. Deckert provided an update as outlined in her staff report. She outlined objectives and
goals regarding utilizing Energy City as an economic development tool.
Commissioner Tveite expressed his support of utilizing Energy City as an economic
development tool, indicating it was long overdue and stated this is a great opportunity for
Energy City and the Economic Development to work together. •
Economic Development Authority Minutes
August 9, 2010
Page 3
• President Touchette stated that Energy Ciry is something that can be used support existing
businesses, as well as attracting new businesses.
8. Marketing Update
Ms. Deckert provided a marketing update as outlined in her staff report.
Discussion took place on transit opportunities from the Elk River Rail Station to other parts
of Elk River. Ms. Johnson stated she has had conversations with River Rider but this would
be a good topic for discussion at the joint Council/County Board meeting scheduled for
Tuesday.
9. Other Business
Ms. Mehelich provided updates on three micro loans.
Kowa Tool
She stated that the business moved to Wisconsin in 1998 but continued to make payments
on their micro loan. The city was notified in early May that the company was closing. The
last payment the city received was in May. She stated staff is working with the city attorney
and the State DEED Office to come to a resolution. She noted that the security on this loan
is written loosely so there may not be recoverable assets.
Ethanol Technologies of M1V
She stated the last payment the city received was in November 2009. She explained this
. micro loan was structured as a participation loan with First National Bank of Elk River. She
stated the bank is working with the applicant trying to restructure the loan and staff is
hopeful the restructure documents will be signed soon.
Waterfall Salon
She stated that the last payment received on this loan was earlier this year. She stated that the
Bank of Elk River is working on a settlement with the applicant.
Sportech
She stated that the Sportech 2003 grant/micro loan has recently been paid off in full.
10. Adjournment
There being no other business, President Touchette adjourned the meeting of the Elk River
Economic Development Authority at 6:24 p.m.
Minutes prepared by Jessica Miller.
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Tina Allard, City Clerk
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• Ron Touchette, President