12-10-2001 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 10, 2001
Nlembexs Present: President Gongoll, Commissioners Koenig, Dwyer, IClinzing, Kuestex,
Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, City
Administrator Pat Klaexs, and Ciry Clerk Sandra Peine
Call Meetino To Order
Pursuant [o 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 December l0. 2001_ Avendti
The following items were added to the agenda:
9.1. TIF #17 Update
92. Discussion of City Property -Business Centex Drive
COMMISSIONER KUESTER MOVED TO APPROVE THE DECEMBER 10,
2001, EDA AGENDA AS AMENDED. COMMISSIONER MOTIN SECONDED
THE MOTION. THE MOTION CARRIED 7-0.
3. Consider Consent Agenda
COMMISSIONER TVEITE MOVED TO APPROVE THE CONSENT AGENDA
AS FOLLOWS:
3.1. NOVEMBER 13, 2001, MINUTES -APPROVED
3.2. CHECKREGISTER-APPROVED
3.3. REVENUE/EXPENDITURE REPORT -ACCEPTED
3.4. BALANCE SHEET-ACCEPTED
COMMISSIONER KUESTER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
4. Open Mike
No one appeared fox open mike.
Economic Development Authority Minutes Page 2
December 10, 2001
5. Strategic Industrial M2xketing PI-m IIpolte
Catherine Mehelich provided an update of the activities that have been completed or
continued since the Plan was adopted in 2000. She reviewed the important action items that
will take place in 2002. They include 1) conducting the annual Business Retention &
Expansion visits & survey, and 2) developing and implementing a public relations campaign
in addition to advertisements. Catherine stated the Plan would be updated in summer 2002
for implementation in 2003-2005 with the assistance of the marketing taskEorce and Duckor
and Associates.
6. Economic Development gssishmt Position Cipd2te
Catherine indicated that the Councll has authorized the hiring of Heidi Hall as the
Economic Development Assistant with a starting salary of $30,000. She noted that Heidi
would begin work on December 17.
Business Incubator Six-Month Review
Catherine provided the EDA with axis-month review of activity. Incubator Consultant,
Harlan Jacobs, associated with the Business Incubator Program, prepared the review. She
noted that the current tenants include Vertical Publishing, Solar Attic and Bieby Energy
Systems, Inc.
8. Consider Micro Loan Application - Minnesota F•tbxic•ttion & M•tchine Inc
Catherine Mehelich indicated that the EDA has received a NGcro Loan Application from
NIN Fabrication & Machine. She noted that the Finance Committee reviewed the
application and unanimously recommended to award Minnesota Fabrication cF Machine Inc.
a $50,000 supplemental micro loan. She noted that the loan will be used to purchase
machinery and equipment allowing the company to keep operations in Elk River. NIr. Don
Devoe and Don Millslage of Minnesota Fabrication & Machine, Inc. were present to answer
questions.
COMMISSIONER MOTIN MOVED TO APPROVE A $50,000 SUPPLEMENTAL
FINANCING LOAN TO MN FABRICATION & MACHINE, INC. AS
RECOMMENDED BY THE FINANCE COMMITTEE TO BE SECURED BY A
2ND LIEN POSITION ON THE REAL ESTATE AND A 2ND LIEN POSITION
ON THE MACHINERY AND EQUIPMENT. COMMISSIONER TVEITE
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
9.1. TIF #17 Update
Catherine Mehelich informed the EDA that the TIF revenue payment is anticipated by the
developer of the TIF #17 (Decker) project. She indicated that there axe outstanding building
and planning issues with the project and staff is working with [he developer to resolve the
issues prior to releasing the TIF money in accordance with the development agreement. She
indicated that staff is holding $73,567.86 and the developer is requesting that the money be
released. Catherine noted that staff would continue to work with the developer until the
issues axe resolved prior to releasing the'FIF money.
Economic Development Authority Minutes
December 10, 2001
9.2. City Property -Business Center Drive
Page 3
The City Administrator informed the EDA that the City has purchased a parcel of tas-
eeempt property located at the corner of Joplin Street and Business Center Drive, south of
Holiday Uas Station. He further noted that the Counci] had been considering locating a fire
station on the property, but have since made the decision to locate the fire station close to
city hall. He informed the EDA that staff is in the process of marketing the property for
recruiting a light manufacturing firm and also possibly aretail/restaurant.
10. Adjournment
There being no other business, COMMISSIONER DWYER MOVED TO ADJOURN
THE MEETING. COMMISSIONER MOTIN SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
The meeting of die Elk River Economic Development Authority adjourned at 6:33 p.m.
Sandia Peine
City Clerk