07-09-2001 EDA MINEconomic Development Authority Minutes
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~~ Business Incubator Six Month Review
Page 2
Assistant Director of Economic Development Marc Nevinski updated the EDA on the
stems of the Business Incubator companies and prospects. He noted that Cymbet
Corporation has graduated from the incubator and moved into the West Business Paxk.
Marc stated that Vertical Publishing is presently the only company in the incubator program.
As Eor Future prospects, Marc stated that staff would be working with three current
prospects and will also explore the opportunities of the new technology transfer program
from the U of M.
Marc reviewed a memo from Harlan Jacobs that gave a recap of the venture capital market.
Commissioner Dwyer indicated his concern as to whether the cost for Harlan Jacob's time
was justified. Marc Nevinski and Catherine Mehelich indicated that they felt the money spent
for the services provided was justified.
7. Consider Renegotiation of Incubator Lease
Marc Nevinski indicated that due to the high vacancy rate of the incubator building, staff has
considered the possibility of reducing the lease space He noted that owner of the building,
Larry Hickman, is open to the idea of amending the existing lease to reduce the amount of
space that the city leases. Marc stated that currently the EDA leases 13, 186 square feet of
space. He suggested reducing the space to 4,000 - 8,000 square feet with the option of being
able to retain an option in the lease agreement to lease the remaining space on an as needed
basis. Following discussion by the EDA, it was the consensus to reduce the lease space to
8,000 square feet.
COMMISSIONER TVEITE MOVED TO RENEGOTIATE THE BUSINESS
INCUBATOR LEASE WITH MR. LARRY HICKMAN TO ALLOW THE EDA TO
LEASE 8,000 SQUARE FEET AND TO HAVE THE OPTION TO LEASE
REMAINING SPACE ON AN AS NEEDED BASIS. COMMISSIONER MOTIN
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
8. Consider RezoninP of Flk River Station from Il R fight Industrial to PLiD (Planned Unit
Development
Catherine Mehelich noted that this issue is before the EDA because the EDA has requested
to review all rezonings from industrial to residential or commercial. She explained that the
Elk River Station PUD contains 7-8 acres currently zoned light industrial that are proposed
to be rezoned to PUD.
Commissioner Dwyer noted that the proposed commerual property is a trade off for the
light industrial land that will be lost. He noted the importance of the EDA monitoring
rezonings to ensure that the industrial property base remains stable.
Commissioner Klittzing indicated that she did not feel the Council members on the EDA
should make a recommendation either for or against the project until the Council has had
the opportunity to receive public input at a public heating. She noted that the public may
perceive it as the Council already having its mind made up on the project prior to receiving
public input Following discussion, it was the consensus that it is still important for the EDA
to review the plats in order to preserve the industrial land base and further [o only pass onto
the CouncIl concerns of the EDA regarding loss of industrial property.
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 9, 2001
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuester,
Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Assistant
Director of Economic Development Ntaxc Nevinski, Ciry Administeator Pat
IQaers, and Ciry Clerk Sandra Peine
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 6:00 p.m. by President Gongoll.
2. Consider 7/9/2001 Agenda
COMMISSIONER KLINZING MOVED TO APPROVE THE JULY 9, 2001, EDA
AGENDA. COMMISSIONER TVEITE SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
3. Consider Consent Agenda
COMMISSIONER TVEITE MOVED TO APPROVE THE CONSENT AGENDA
AS FOLLOWS:
3.1. MAY 14, 2001 EDA MINUTES -APPROVED
3.2. CHECKREGISTER-APPROVED
3.3. REVENUE/EXPENDITURE SHEET-APPROVED
3.4. BALANCE SHEET -APPROVED
COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
4. Open Mike
President Gongoll thanked the Ciry Eor its participation in the annual 4~ of July celebration.
He gave special recognition to PhIl Hats and his department, the Fixe Depaztment, the Police
Department, Assistant Chief Beahen, Bob Swenson and city staff.
5. Strategic Industrial Marketing Pian Update
Director of Economic Development Catherine Mehelich gave an update on the completed
Communication Strategy and Brand Plan. She reviewed the database that staff has been
using to track inquiries and prospects. Ms. Mehelich mentioned the ad in the July issue of
Twin Cities Business Monthly that featured CYMBET, a business incubator graduate.
Economic Development Authority Minutes
Duty ~, zoot
Yage 3
COMMISSIONER KLINZING MOVED THAT THE EDA HAS REVIEWED
THE ELK RIVER STATION PROJECT AND THAT THE EDA IS PASSING
THE ISSUE TO THE COUNCIL WITH NO RECOMMENDATION.
COMMISSION KUESTER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
9~ Business Park Design Standards Update
Catherine Mehelich noted that the Director of Planning has provided two versions of the
revised ordinance relating to business park design standards. The two versions provided
include one from city staff and one from Brookstone Development. She noted that the
Planning Commission would be reviewing the proposed revisions at the July meeting. Rick
Martens of Brookstone Development indicated his concern with the terms visibility and
adjacent. He indicated [hat most walls would be classiFed as visible from a public right-of-
way and that meeting the proposed requirements for visible walls would be cost prohibitive.
Much discussion was held regarding this issue. The EDA indicated that some type of
compromise could be made. The EDA suggested that Staff continue to work with
Brookstone development regarding this issue.
10. Other Business
President Gongoll referred to an article that featured Solaz Attic President Gongoll
questioned the impact of the new property tax laws on tax inczement fmancing. Catherine
Mehelich stated she is working with the Finance Department to analyze any impacts to
existing TIF districts.
11. Adjournment
There being no other business, COMMISSIONER DWYER MOVED TO ADJOURN
THE MEETING. COMMISSIONER TVEITE SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at 7:25 p.m.
Sandra Peine
Ciry Clerk