01-14-2002 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JANUARY 14, 2002
Members Present: President Gongoll, Commissioners Dwyer, Klirtzing, Kuester, Tveite and
Morin
Members Absent: Commissioner Koenig
Staff Present: Director of Economic Development Catherine Mehelich, Economic
Development Assistant Heidi Hall, City Administrator Pat I4aers, and City
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 ianulry 14 X002 Agendl
COMMISSIONER KLINZING MOVED TO APPROVE THE 1/14/2002, EDA
AGENDA. COMMISSIONER TVEITE SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
3. Consider Consent Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA
AS FOLLOWS:
3.1. DECEMBER 10, 2001 MINUTES -APPROVED
3.2. CHECKREGISTER-APPROVED
COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
4. Open Mike
No one appeared fox open mike.
5. Annual Meetin Issues
A. Elecrion of Officers
COMMISSIONER DWYER MOVED TO NOMINATE THE
FOLLOWING OFFICERS:
PRESIDENT -JEFF GONGOLL
VICE PRESIDENT -PAT DWYER
Economic Development Authority Minutes
January 14, 2002
TREASURER -LARRY KOENIG
SECRETARY -DAN TVEITE
ASSISTANT TREASURER - LOUISE KUESTER
Page 2
COMMISSIONER KLINZING SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
B. Appoint Esecu[ive Director
COMMISSIONER DWYER MOVED TO APPOINT CATHERINE
MEHELICH AS EXECUTIVE DIRECTOR AND PATRICK KLAERS AS
THE INTERIM EXECUTIVE DIRECTOR IN THE DIRECTOR'S
ABSENCE. COMMISSIONER MOTIN SECONDED THE MOTION.
THE MOTION CARRIED 6-0.
C. Designate Official Newsnaoer
COMMISSIONER MOTIN MOVED TO DESIGNATE THE ELK RIVER
STAR NEWS AS THE OFFICIAL EDA NEWSPAPER FOR 2002.
COMMISSIONER TVEITE SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
D. Designate Official Depositories
COMMISSIONER MOTIN MOVED TO DESIGNATE THE FIRST
NATIONAL BANK OF ELK RIVER, THE BANK OF ELK RIVER, US
BANK, 4M FUND, AND WELLS FARGO BANK AS DEPOSITORIES
FOR ITS FUNDS FOR 2002. COMMISSIONER KLINZING SECONDED
THE MOTION.
Commissioner Tveite disclosed that he is employed by Wells Fargo Bank.
Commissioner Dwyer disclosed that he is an officer and stockholder of the Bank of
Elk River.
THE MOTION CARRIED 6-0.
E. Consider Commission appointments and '1ss'iQnments
COMMISSIONER TVEITE MOVED THE FOLLOWING
APPOINTMENTS AND ASSIGNMENTS FOR 2002:
FINANCE COMMITTEE:
• JIM SIMPSON
• TOM MCNAIR
• JEFF GONGOLL
• CLIFF LUNDBERG
• DAN TVEITE
• PAUL MOTIN
• CHRIS CARLSON
Economic Development Authority Minutes
January 74, 2002
BUSINESS INCUBATOR ADVISORY COMMITTEE
• STEPHANIE KLINZING
• JEFF GONGOLL
• LARRY HICKMAN
• JIM BARTHEL
• JACKMOWRY
• LOUISE KUESTER
COMMISSIONER MOTIN SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
F. ENABLING RESOLUTION
Page 3
FOLLOWING A BRIEF REVIEW, NO CHANGES WERE MADE TO
THE BYLAWS OF THE EDA.
6. Strategic Industrial Marketing Phn Update
Heidi Hall, Economic Development Assistant, introduced herself to the EDA. Heidi
presented an update of the key accounts and the 2002 advertising campaign as they related
to the strategic industrial marketing plan. Heidi distributed an ad copy which featured
SoftPac Industries fox the February MN Real Ertate Journal Leaning Guide. Heidi also
distributed a copy of a StarTnbune article that featured Sportech.
Catherine Mehelich updated the Council on the 2002 public relations plan provided by
Greta ~~'edell, the City's advertising agent.
NE Corner of Hwy 169 & Main Street Redevelopment Update
Catherine Mehelich explained that Developer Kraus-Anderson Realty has suggested the use
of tax increment financing for the redevelopment of the property located at the NE Coxnex
of Hwy 169 and Main Street. Catherine stated that staff completed an initial assessment of
the proposed redevelopment area to detexxnine its eligibility for tax increment Emancing. She
stated that staff concluded that tax increment Financing not be considered for the project as
a result of inconclusive evidence of "structural substandard" conditions as required by
statute. Catherine indicated that the use of tax abatement may be considered as an
alternative.
Gathexine informed the EDA that staff has had inquiries about smaller projects involving
just the Ron's Foods and City property. Discussion was held regarding the size of a desired
redevelopment project. The EDA discussed the issue of a larger project to include the
apartments and possibly some of the single family housing in the area. It was the consensus
of the EDA that it would be in Eavox of tas abatement subsidy for a larger project that
included the apartments and possibly some of the housing.
Discussion was held regarding the asking price of the city property located at Highway 169
and Main Street. The EDA concluded that the price should not be so high as to delay a
project but that it should also not be low enough to be considered a subsidy.
Economic Development Authority Minutes Page 4
January 14, 2002
8. Consider Spoxtech Micro Loan Extension
Catherine Mehelich indicated that Spoxtech has requested the EDA to consider reFinancing
the balance of their loan for atwo-year extension as allowed by the Micro Loan Policy. She
stated that the Carlsons have been timely in their loan payments to the City over the past
three years. Catherine recommended the EDA authorize atwo-year extension of the loan at
a rate of 7.25%.
COMMISSIONER MOTIN MOVED TOAUTHORIZE ATWO-YEAR
EXTENSION OF THE MICRO LOAN TO CHRIS & DEBRA CARLSON OF
SPORTECH, INC. AT A MARKET RATE OF 7.25%. COMMISSIONER TVEITE
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
Other Business
There was no other business.
10. Adjournment
There being no other business, COMMISSIONER TVEITE MOVED TO ADJOURN
THE MEETING. COMMISSIONER MOTIN SECONDED THE MOTION.
THE MOTION CARRIED 6-0.
The meeting of the Elk River Economic Development Buthoriry adjourned at 6:45 p.m.
c~I-~K~ Q ~~P
Sandra Peine
City Clerk