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.
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Recording Secretary
Tina Allard