11-12-2002 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
TUESDAY, NOVEMBER 12, 2002
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing,
Kuestex, Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Economic
Development Assistant Heidi Hall, City Administrator Pat IQaers,
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 11 /12/02 Agenda
The following items were added to the agenda:
9.2 Update on Noxthstax Die Cast Settlement
9.3. Chamber Membership Meeting
COMMISSIONER DWYER MOVED TO APPROVE THE NOVEMBER
12, 2002, EDA AGENDA AS AMENDED. COMMISSIONER TVEITE
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consent Agenda
COMMISSIONER KOENIG MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
7.1. OCTOBER 14, 2002, EDA MINUTES
7.2. CHECK REGISTER
7.3. REVENUE/EXPENDURE REPORT
7.4. BALANCE SHEET
COMMISSIONER KUESTER SECONDED THE MOTION. THE
MOTION CARRIED G-0.
Commissioner Klinzing arrived at this time.
Economic Development Authority Minutes Page 2
November 12, 2002
4. Open Mike
No one appeared fox open mike.
5. Comprehensive Plan Upd2te
Commissioner Dwyer updated the Council on the last comprehensive plan meeting.
He spoke specifically about industrial land use near the gravel pits.
5.1. Industrial Land In Comprehensive Plan
Director of Planning Michele McPherson indicated that she has been asked to
facilitate a discussion with the EDA regarding areas fox future industrial
development. She indicated that Rusty Fifield of Hoisington I{oeglex Group has
provided a map showing areas that are currently zoned fox business park ox industrial
development and has- developed some questions to facilitate EDA discussion of this
issue.
Questions proposed to the EDA included:
• Should the Comprehensive Plan continue to plan fox industrial development
in the existing locations?
• How should the existing gravel mining district be zoned in the future?
• Does the Comprehensive Plan need to include other areas for new industrial
development? If so, where?
• Should the Comprehensive Plan anticipate the creation of new business
parks fox industrial development? If so, where?
Following discussion, the EDA concluded the following:
• It would be best to locate residential uses away from the highway
• That the gravel mining area between Highway 169 and realigned County 77
north of Brentwood be rezoned to industrial with a buffer area adjacent to
the residential.
• That the existing industrial areas not be looked at for any other use if
redeveloped in the future.
• That the entire triangle near the gravel mining area be considered as one
piece
President Gongoll suggested continuing this discussion at the December meeting.
6.1. Public Hearing Regarding Proposed City of Elk River Business Subsidies
6.2. Consider Adoption of the City of Elk River Business Subsidies Policy
Catherine Mehelich noted that public hearings must be held by the City Council,
EDA, and HRA fox each to adopt criteria far awarding business subsidies. She noted
that the EDA, the EDA Finance Committee, HRA, and City Council have provided
input on the business subsidies policy over the last two months.
Economic Development Authority Minutes
November 12, 2002
Page 3
President Gongoll opened the public hearing. There being no one for ox against the
matter, President Gongoll closed the public hearing.
COMMISSIONER TVEITE MOVED TO ADOPT THE CITY OF ELK
RIVER BUSINESS SUBSIDY POLICY. COMMISSIONER MOTIN
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
Strategic Industrial Maxketin ~letivities Update
Economic Development Assistant Heidi Hall presented an update on strategic
industrial marketing activities.
7.1. Industrial Land Development
Director of Economic Development Catherine Mehelich indicated that the Strategic
Industrial Marketing Plan recommends that the EDA consider dedicating city-owned
land with utilities for industrial development. An alternate recommendation of the
plan includes dedicating one of the current business parks to industrial development
if the landowners axe willing to sign a joint marketing agreement.
Catherine stated that staff is requesting feedback and direction for staff to explore
the following options:
Alternative strategies for working with private landowners of business pazk
properties
Strategy for the development of the EDA's property located off of Twin
Lakes Boulevard
Catherine stated that a work session fox further discussion on this issue could be
scheduled fox a future EDA meeting.
Commissioner Kliuzing indicated that at the time the EDA-owned business park
property was being established, the City indicated that it would not be interested in
competing with existing privately owned property. The City needs to look seriously
at entering into the realm of competition.
Commissioner Dwyer indicated that he is interested in exploring the option.
President Gongoll concurred, but noted that we must also look at what kind of
message this sends to developers.
It was the consensus of the EDA to discuss this further at a work session sometime
in January.
8. Business Finance Pro ams Update
Catherine Mehelich updated the EDA on business finance programs that the EDA
accesses to leverage some of the funds that aze provided locally. She talked about the
MN Investment Fund and NIN Community Capital Fund.
Economic Development Authority Minutes Page 4
November 12, 2002
9. Other Business
9.1. Consider Revised 2003 EDA Budget
Catherine indicated that the EDA reviewed the 2003 budget in August. Catherine
indicated that since that review the EDA has made a couple of budget revisions
including a $5,000 contribution to the Initiative Foundation and considering $4,000
to Duckor and Associates for work on the industrial park planning process.
City Administrator Pat I{laers noted that staff is recommending to revise its plan for
using Dukor and Associates. Staff is recommending using the services as needed,
with the need being determined as time goes on.
COMMISSIONER DWYER MOVED TO APPROVE THE 2003 EDA
BUDGET AS REVISED. COMMISSIONER KLINZING SECONDED
THE MOTION. THE MOTION CARRIED 7-0.
9.2. Northstar Star DieCast
Catherine Mehelich updated the EDA on the status of the $50,000 micro loan. She
noted that the EDA authorized a settlement amendment reducing payment to $500
per month, however, the City has not received any payments nor response from the
company. Catherine indicated that the City Attorney has advised that the Confession
of Judgment be filed.
9.3. Chamber Membership Meet
President Gongoll updated the EDA on the upcoming Chamber meeting on the
Highway 10 and 169 Corridor Studies.
10. Adjournment
There being no other business, COMMISSIONER TVEITE MOVED TO
ADJOURN THE MEETING. COMMISSIONER MOTIN SECONDED
THE MOTION. THE MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at 7:15
p.m.
~,~.,P~ C~ p.~
Sandra Peine
Citv Clerk