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08-13-2001 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 13, 2001 Members Present: President Gongoll, Dwyer (6:20 p.m.), Kuestex, Tveite, and Morin Members Absent. Cotnnussioners Klinzing and Koenig Staff Pxesen[: Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Marc Nevinski, and Recording Secretary Tina Allard 1. Call Meeting To Oxdex 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. Consider 8/13/01 Agenda COMMISSIONER TVEITE MOVED TO APPROVE THE EDA AGENDA. COMMISSIONE~t MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consent Agenda COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. CONSIDER 7/9/01 EDA MINUTES -APPROVED 3.2. CHECKREGISTER-APPROVED 3.3. REVENUE/EXPENDITURE REPORTS -APPROVED 3.4. BALANCE SHEET-APPROVED COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4. Ooen Mike No one appeazed for open mike. Strategic Industrial Marketing Plan Update Director of Economic Development Catherine Mehelich stated that the City of Elk River has been invited to participaxe in the MN Real Estate Journal Economic Development & Site Selection Real Estate Conference at the Cniversity of St. Thomas. She stated that at a cost of $3,000, the city would receive a half page article and a half page ad in the conference insert and bonus ads in the Journal. She stated that approximately 250 people aze expected to attend the conference. Economic Development Authority Minutes August 13, 2001 Page 2 Commissioner Moon questioned the selection process for this honor and what type of benefit the city would receive. Ms. Mehelich stated that there would be a special insert in the MN Reai Estate Journal and at the conference. She stated that this conference would help the city with name and logo recognition among key real estate brokers and developers. Commissioner Tveite questioned if other cities pazticipated in similaz events. Ms. Mehelich stated that this is the second yeaz for this conference and 5-6 cities have been asked to participate this year. Assistant Director of Economic Development Marc Nevinski stated that this event would target customers of the EDA's mazketing plan. 6.1. Consider Initiative Foundation Contribution Request Ms. Mehelich stated that the Initiative Foundation is requesting a contribution of $5,000 in the yeaz 2002 to support their programming and services. She gave a brief overview about the Foundation and a history of past contributions from the city. President Gongoll stated that the Initiative Foundation has funded numerous projects within the city but the EDA maybe able to better invest these funds into its own community projects. Commissioners Morin and Kuester both concuaed. COMMISSIONER KUESTER MOVED TO DENY THE CONTRIBUTION REQUEST AND RECOMMEND THAT THIS YEAR AND IN FUTURE YEARS THE REQUEST BE FORWARDED TO THE CITY COUNCIL FOR CONSIDERATION. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 4-0. 6.2. Consider Year 2002 Budeet Commissioner Dwyer arrives. Ms. Mehelich presented a brief summary of the budget. She stated that the total proposed revenue and expenses for 2002 are $165,450. Commissioner Morin questioned whether the HRA shared any portion of the funds fox consulting by Anita Dukor and Associates. Ms. Mehelich stated funding for the Dukor project came from the EDA and the City Council budget. She stated that the total proposed expenses for the Incubator are $25,200 and the total proposed revenue are $7,000. She stared that the $18,200 shortfall would be funded through the loan repayment of Tescom Corporation. Commissioner Morin questioned if the rent from the Incubator building is the actual rent projected from the current tenants or if it is based on any projected tenants. Ms. Mehelich stated that the rent amount is based on current tenants but they are expecting the new tenants will come forwazd for next year, which would ultimately decrease the shortfall amount. COMMISSIONER MOTIN MOVED TO APPROVE THE 2002 EDA BUDGET AND THE BUSINESS INCUBATOR BUDGET. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Economic Development Authority Minutes August 13, 2001 6.3. Consider Resolution Regarding EDA Le~~y Page 3 Ms. Mehehch stated that the city must certify the EDA levy to Sherburne County by September 17,2001. COMMISSIONER MOTIN MOVED TO APPROVE RESOLUTION O1- O1 OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY ESTABLISHING THE TAX LEVY FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, MINNESOTA. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Review Conduit Bond Policy Assistant Director of Economic Development blare Nevinski stated that conduit bonding allows a developer or business to borrow larger sums of money at a lower interest rate. He stated that bond underwriters would do the work, and that the city bears no risk and is not responsible for repaying the bonds. President Gongoll stated that he is glad to see another tool like this avaIlable Consider Amendment to Busines's Incubator Lease Mr. Nevinski stated that a lease amendment has been negotiated with Larry Hickman fox the Business Incubator building. He stated that the lease rate will stay the same ($1.85/sf) but there would be a reduction of square footage from 13,186 to 7,522. COMMISSIONER TVEITE MOVED TO APPROVE THE LEASE AMENDMENT. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 9. Other Business President Gongoll stated that he would be attending a meeting fox a proposed incubator tenant, MicroSurfaces Inc. President Gongoll stated that Assistant Director of Economic Development Maxc Nevinski is leaving the city for another position. He thanked Mx. Nevins'ki for his service and all the great work he performed fox the EDA. He stated that Mr. Nevinski did a tremendous job while acting as the interim duectox fox the city. 10. Adiournment There being no other business, COMMISSIONER MOTIN MOVED TO ADJOURN THE MEETING. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River Economic Development Authority adjourned at 6:45 p.m. /-.!/rr/ ~~r-C/ Recording Secretary Tina Allard