10-08-2001 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 8, 2001
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuester,
Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, City
Administrator Pat Klaers, and Citv Clerk Sandia 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 October 8. 2001 Agenda
COMMISSIONER KLINZING MOVED TO APPROVE THE OCTOBER 8, 2001,
EDA AGENDA. COMMISSIONER TVEITE SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
3. Consent Agenda
COMMISSIONER KUESTER MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1. SEPTEMBER 10, 2001, MINUTES -APPROVED
3.2. CHECK REGISTER -APPROVED
3.3. REVENUE/EXPENDITURE REPORT -ACCEPTED
3.4. BALANCE SHEET-ACCEPTED
COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
4. Open Nhke
No one appeared for open mike.
3. Update -Strategic Industrial Marketing Plan
Director of Economic Development Catherine Mehelich updated the EDA on the following
marketing plan activities:
• MN Manufacturing & Technology Recognition -The Chamber and EDA will be
cosponsoring a recognition event scheduled for Tuesday, October 23 and will include a
plant tour of Tescom, E & O Tool, and Sportech. Luncheon will be provided at the Elk
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October 8, 2001
River Country Club with presentation by Rick Speckmann about finding business-
oppoxtunities during uncertain times.
• MN Real Estate Journal Economic Development & Site Selection Conference -
Staff will be participating in the October 16 conference. As a cosponsor, the City will
be part of a panel discussion about muniupal and business park marketing plans and
incentives.
Prospect Update -Staff is working with a light manufacturer to relocate its expanding
company to Elk River. The prospect requires a minitnum 1S-acre lot For construction
of up to 20,000-square feet in spring 2002. l~'ith the exception of the Bxookstone East
Business Paxk, the City is at a shortage of 1.5+ acre lots for smaller, growing companies
that wish to be in the business park areas. Staff suggested the EDA discuss options for
filling this shortage.
• Industrial Park Property - Review of preliminary plat fox Cascade Industrial Paxk
located in the southeast coiner of Elk River along Jarvis Street
6. Update -Economic Development Assistant Position
Catheruie Mehelich updated the EDA on the position description and the hiring process/
tunetable for the Economic Development Assistant position. She stated that an anticipated
start date for the position is January 2, 2002.
Update -Redevelopment of NE Corner Hwy 169 & Main Street
Catherine Mehelich indicated that staff is continuing to wank with developer Kxaus-
Anderson on a redevelopment proposal fox the northeast comer of Highway 169 and Main
Street. The properties currently under consideration for the project include the former
Ron's Foods, City Emporium, and two adjacent apartment buildings along Third Street.
Commissioner Morin indicated his concern whether this sized development would utilize
the area to the maximum extent. He noted that he has been contacted by some of the
residents in the area who axe interested in having their property included in the development
because of concerns with being stuck in the middle of a commercial development.
Commissioner Klinzing concurred with Commissioner Morin. She indicated that she would
prefer to see a larger development project that would include the surrounding residential
homes.
It was the consensus of the EDA to request the Director of Economic Development to
inform the developer of the EDA's comments and their desire to see a larger area included
in the redevelopment project.
S. Review Business Park District Warehouse Amendment
Catherine Mehelich explained that staff has' been working on an ordinance amendment to
allow uses more typical of the current industrial market within the Business Park District.
She stated that there is a need to maintain the overall purpose of the district, which is to
encourage businesses that generate a high number of jobs per square foot, rather than
predominantly warehouse-type uses. Catherine reviewed the proposed changes which
include the following issues:
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October 8, 2001
A. Warehouse space up to 50°% of the entire building or SO% of an individual tenant
space in amulti-tenant building.
B. Showroom uses.
C. Repair and maintenance uses excluding auto repair.
Nlr. Rick Martens of Bxookstone, Inc. indicated that the proposed ordinance is too
restrictive and is unusual and uncommon in the competitive market. Mr. Martins indicated
that he would like to s-ee a higher percentage allowed than 65 percent and would like to see
the warehouse space determined in aggregate and eliminate the analVSis of individual tenants
in amulti-tenant building.
The EDA discussed the issue and concurred with staff's recommendation but would like to
have multi-tenant buildings be considered an aggregate of warehouse space rather than on a
per tenant basis.
9. Business Park Development Options:
9.1. Tohn Fitzgerald. Land of Lakes' Choirbo~Ts
9?. Business Park/Community Services Uses for EDA Propextk
9.3. Other Business Park Areas
John Fitzgerald indicated that the Land of Lakes Choirboys axe looking for land to construct
a new facility as their existing facility is being taken by the State of Minnesota for
Highway 10 right-of-way. He requested the EDA to consider donating 8-10 acres of land fox
the facility. He indicated that the facility is proposed to seat 400-450 people and will be
available fox community use.
The City Administrator indicated that the only city owned land available for this sized
request is the east business park property.
The EDA espxessed the following concerns:
• Sensitivity to losing business park space for this purpose.
• 8-10 acres is a large amount of land.
• This type of use would not exclusively benefit the city.
• It was the EDA's job to create a tax base and that this would not happen by donating
land to a nonpxotlt organization.
• The city has a limited amount of property for business- park use.
John Dietz stated that although the Choirboys group is a good cause, he does not feel that
the business park land should be used for this purpose. On the other hand, John indicated
he does support the city partnership with the I'hICA and its possible location in this
business park and furthermore, he could make a distinction between the two organizations.
It was• the consensus of the EDA that this was not an appropriate use for donating business
park property.
The City Administrator reviewed previous Ciry Council discussions relating to offering a
portion of the business park land to other organizations- such as the I'bICA aad the School
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October S, 2001
Page 4
District (family center). He indicated that dais would need to be discussed by the EDA at a
follow up meeting.
10. Other Business
There was no other business.
11. Adjournment
There being no other business, COMMISSIONER MOTIN MOVED TO ADJOURN
THE MEETING. COMMISSIONER KUESTER SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at 8:10 p.m.
Sandra Peine
City Clerk