05-13-2002 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 13, 2002
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing,
Kuester, Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Economic
Development Assistant Heidi Hall, City Administrator Pat HIaers,
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 5/13/02 Agenda
COMMISSIONER KUESTER MOVED TO APPROVE THE MAY 13, 2002,
EDA AGENDA. COMMISSIONER KLINZING SECONDED THE
MOTION. THE MOTION CARRIED 7-0.
3. Consider Consent Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1. April 8, 2002, EDA minutes
3.2. Check Register
3.3. Revenue/Expenditure Report
3.4. Balance Sheet
COMMISSIONER KOENIG SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
4. Open Mike
President Gongoll explained that the Chamber of Commerce has expanded its
Business Person of the Year award into a retail business of the year and a
manufacturing business of the year. President Gongoll announced that Scott Powell
of Elk River Ford Dodge and Jeep received the retail business award of the year and
Economic Development Authority Minutes
May 13, 2002
Page 2
George and Joanne Adamski of Contour Mold received the manufacturing business
of the year award.
COMMISSIONER KLINZING MOVED TO DRAFT A LETTER OF
APPRECIATION AND RECOGNITION TO SCOTT POWELL AND
GEORGE AND JOANNE ADAMSffi FROM THE EDA.
COMMISSIONER KOENIG SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
5. Consider Business Incubator Application - KnowledGenetica Inc
Economic Development Assistant Heidi Hall indicated that KnowledGenetica, Inc.
is requesting to lease 2,267 square feet in the Incubator for its business offices,
business data center, technology library, and product development and testing
center. She reviewed the background of the company. Heidi indicated that the
Business Incubator Advisory Committee reviewed the application and is
recommending that the company be admitted to the Incubator Program.
Joe Roushar gave a presentation on his company.
COMMISSIONER TVEITE MOVED TO APPROVE THE APPLICATION
FROM HIVOWLEDGENETICA, INC. FOR ADMITTANCE TO THE
INCUBATOR PROGRAM. COMMISSIONER DWYER SECONDED THE
MOTION. THE MOTION CARRIED 7-0.
Commissioner ICuester indicated that some incubator space had been turned back to
Larry Hickman because it was no longer needed and questioned whether the City
needs to reclaim the space. President Gongoll indicated that Larry Hickman, the
owner of the building, has indicated a willingness to provide the space to the City
once again. President Gongoll thanked Mr. Larry Hickman for his offer.
It was the consensus of the EDA to amend the lease to include the additional space
for KnowledGenetica.
6. Consider Tax Rebate Financing Application -_J.L T Partnership L L P & John C
Weicht & Associates. L.L.P.
Director of Economic Development Catherine Mehelich indicated that an
application for Tax Rebate Financing (TRF) has been submitted by J.L.T.
Partnership, L.L.P., and John C. Weicht & Associates, L.L.P. She noted that the
partnership, Elk Path, L.L.C. is requesting $200,000 TRF assistance from the city for
the construction of a 42,000 square foot professional office building to be located in
the West Business Park. Catherine reviewed the background on the request.
Catherine reported the developer has estimated the project to create up to 100 new
jobs and would have an estimated property tax market value of $3,346,200. She
indicated that staff has completed the tax rebate financing proposal review
worksheet and stated that the project scored very high in accordance with the city's
Economic Development Authority Minutes
May 13, 2002
Page 3
objective and eligibility to receive tax rebate financing. Catherine reported that the
developer has also submitted a request to Sherburne County for $200,000 in tax
rebate financing.
John VG'eicht talked about the proposal and the building that will be built on the site.
Catherine reported the developer has proposed to include an energy efficient
geothermal heating and cooling system, which contributes to the city's Energy City
efforts.
Commissioner Klinzing discussed the issue of job creation and the possibility that
some of the jobs created would be moving from other locations within the city.
Commissioner Klinzing indicated chat she supports this project because of the lack
of this type of rental space in the city and the fact that it is a local developer
proposing the project and felt that the new development in the West Business Park
may spur-other development to the area.
MAYOR KLINZING MOVED TO RECOMMEND THAT THE CITY
COUNCIL APPROVE THE REQUEST FOR TAX REBATE FINANCING
AS REQUESTED BY ELK PATH, L.L.C. COMMISSIONER DWYER
SECONDED THE MOTION.
Commissioner Dwyer stated that the landowner has made a significant investment to
the infrastructure in the West Business Park, and because of the city's commitment
to work with the landowner to develop the business park, he does not feel the city
will be setting a precedent fox providing TRF to other office developments in the
City.
Commissioner Motin suggested capping the TRF amount to $200,000 or eight years,
whichever comes earlier. Catherine stated the TRF would be provided annually to
the developer upon receipt of taxes by the city.
COMMISSIONER KLTNZING AND COMMISSIONER DWYER
CONCURRED WITH THE ADDITION TO THE MOTION OF
CAPPING THE LOAN AT $200,000 OR EIGHT YEARS WHICHEVER
COMES EARLIER. THE MOTION CARRIED 7-0.
7.1. Marketing Activities Update
Catherine Mehelich updated the EDA on current marketing efforts and prospects.
7.2.
Catherine Mehelich reviewed a proposal from Anita Duckor & Associates for the
update of the Strategic Industrial Marketing Plan, which was developed for years
2000 through 2002. Catherine noted that the cost to update the marketing plan has
Economic Development Authority Minutes Page 4
May 13, 2002
been included in the 2002 Economic Development Department budget. She
indicated that the proposed cost is $8,000.
COMMISSIONER MOTIN MOVED TO ACCEPT THE DUCKOR AND
ASSOCIATES PROPOSAL FOR THE UPDATE OF THE CITY OF ELK
RIVER STRATEGIC INDUSTRIAL MARKETING PLAN FOR 2003-2005
AT $8,000. COMMISSIONER TVEITE SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
8. Other Business
Thete was no other business.
9. Adjournment
There being no other business, COMMISSIONER MOTIN MOVED TO
ADJOURN THE MEETING. COMMISSIONER DWYER SECONDED
THE MOTION. THE MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at G:55
p.m.
~~~ CQ ~~
Sandra Peine
City Clerk