04-08-2002 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 8, 2002
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuester,
Tveite and Motin
Members Absent: None
Staff Present: Economic Development Assistam Heidi Hall, City Administrator Pat
Klaers, Finance Director Lori Johnson, Assistant Police Chief Jeff
Beahen, Utilities Superintendent Bryan Adams, Director of Planning
Michele McPherson, and City Clerk Sandra 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 4/8/02 EDA Agenda
COMMISSIONER TVEITE MOVED TO APPROVE THE APRIL 8, 2002, EDA
AGENDA. COMMISSIONER DWYER SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
3. Consent Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1. MARCH 11, 2002, EDA MINUTES
3.2. CHECK REGISTER
3.3. REVENUE/EXPENDITURE REPORT
3.4. BALANCE SHEET
COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
4. Open Mike
No one appeared for open mike.
5. Public Hearing Re~ardin~ Establishment of Development Project No. 1
Economic Development Authority Minutes
April 8, 2002
Page 2
Lori Johnson explained that the City is proceeding with the necessary steps for the
financing of a public safety and Elk River Municipal Utilities facilities. Lori reviewed
the components of Development Project No. 1. She indicated that the City Council
has requested the Economic Development Authority to issue revenue bonds for the
public safety and Elk River Municipal Utilities projects. Lori reviewed the tax impact
for the public safety facility on residential homestead and commercial and industrial
property. She noted that final approval to issue bonds for the project would be
considered in June after construction bids are received. Sid Inman of Ehlers was
present and reviewed the options for lease revenue bonds. He suggested that the City
consider Option 2, which is a level debt service for the term of [he bonds.
President Gongoll opened the public hearing. There being no one far or against the
matter, President Gongoll closed the public hearing.
Commissioner Klinzing noted that it is important that the public realize that the tax
impact for property owners will decrease over time.
6. Consider Resolution Approving Development Project and Development Program
COMMISSIONER TVEITE MOVED TO ADOPT RESOLUTION 02-02
APPROVING DEVELOPMENT PROJECT AND DEVELOPMENT
PROGRAM. COMMISSIONER KUESTER SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
Member for the Comprehensive Plan Update Task Force
Director of Planning Michele McPherson indicated that staff is in the process of
forming the Task Force for the Comprehensive Plan Update. She indicated that staff is
requesting two members of the EDA to serve as primary and akernate members of the
Comprehensive Plan Update Task Force.
President Gongoll volunteered to serve as the primary task force member and
Commissioner Dwyer volunteered to serve as the alternate task force member.
8. Consider Extension of SolarAttic Sublease Agreement
Econotic Development Assistant Heidi Hall indicated that SolarAttic has requested a
sublease extension to remain in the Incubator until the end of August. She indicated
that SolarAttic has offered shares of SolarAttic stock in exchange for 12 months past-
due rent and for potential rem due until August 31, 2002. Heidi indicated that
SolarAttic has occupied the Incubator space for five years. She further noted that
SolarAttic awes 56,766 in overdue rent.
Heidi informed the EDA that Bixby Energy Systems, Inc. is a new Incubator tenant as
of January 2002 and may be requesting to expand its current space.
Economic Development Authority Minutes
April 8, 2002
page 3
COMMISSIONER DWYER MOVED TO DENY THE REQUEST FOR
EXTENSION OF LEASE BY SOLARATTIC. COMMISSIONER KUESTER
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
Commissioner Klinzing questioned how the EDA would collect the past due rent
from SolarAttic. It was the consensus of the EDA that SolarAttic should be
responsible for payment of the past due rent. It was suggested that staff inquire about
stock in lieu of payment for past due rent.
2002 Business Retention & Expansion Survey Report
Heidi Hall indicated that staff has completed the 2002 Business and Expansion Survey.
She indicated that on-site interviews were conducted at twenty of the thirty-seven
industrial companies located in the City of Elk River. Heidi noted that as a result of
the survey, industrial companies concluded that area students are not well prepared to
work in the City's industrial companies, that more space needs to be zoned light
industrial, that the City should provide more financial incentives for industrial
companies to locate in Elk River, and that Elk River residents need to be educated on
the importance of industrial business.
Heidi Hall reviewed staff recommendations to improve future BRE Surveys.
Recommendations included the following:
The creation of an economic development newsletter that would be provided
to industrial companies
A more casual format for the survey
A letter from the EDA informing businesses of the survey
President Gongoll staled tha[ the survey is a useful tool and provides good
information for the EDA.
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 6:37
p.m.
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Economic Development Authoricy Minutes
April 8, 2002
Page 4
Sandra Peine
City Clerk