01-13-2003 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JANUARY 13, 2003
Members Present: Vice President Duryer, Commissioners Koenig, Klinzing (535 p.m.),
Kuestex, Tveite and Motin
Members Absent: President Gongoll
Staff Present: Director of Economic Development Catherine Mehelich, City
Administrator Pat HIaers, and City Clerk Sandra Peine
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 5:30 p.m. by Vice President Dwyer.
2. Consider January 13 2003 Agenda
COMMISSIONER TVEITE MOVED TO APPROVE THE JANUARY 13,
2003, EDA AGENDA. COMMISSIONER MOTIN SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
3. Consent Agenda
Catherine Mehelich distributed the proposal by Duckor and Associates to facilitate a
joint meeting with the Planning Commission regarding various types of business
development: office, business, and industrial park. The proposal for services includes
a cost of $2,500. 1V1s. Mehelich stated this service was included in the 2003 EDA
budget.
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1. DECEMBER 9, 2002 EDA MINUTES
3.2. CHECK REGISTER
3.3. PROPOSAL BY DUCKOR AND ASSOCIATES, INC. TO
FACILITATE JOINT MEETING WITH PLANNING
COMMISSION
COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
Commissioner Klinzing arrived at this time (5:35 p.m.).
Economic Development Authority Minutes
January 13, 2003
4. Open Mike
No one appeared for open mike.
5. Annual Meeting Issues
a. Election of Officers
COMMISSIONER KLINZING MOVED TO ELECT THE
FOLLOWING OFFICERS FOR 2003:
• JEFF GONGOLL -PRESIDENT
• PAT DWYER -VICE PRESIDENT
• LARRY KOENIG -TREASURER
• DAN TVEITE -SECRETARY
• LOUISE KUESTER-ASSISTANT TREASURER
Page 2
COMMISSIONER MOTIN SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
b. Appoint Executive Director
COMMISSIONER TVEITE MOVED TO APPOINT CATHERINE
MEHELICH AS THE EXECUTIVE DIRECTOR OF THE EDA.
COMMISSIONER KUESTER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
c. Designate Official Newsp~a er
COMMISSIONER KLINZING MOVED TO APPOINT THE STAR
NEWS AS THE OFFICIAL NEWSPAPER FOR THE EDA FOR
2003. COMMISSIONER MOTIN SECONDED THE MOTION.
THE MOTION CARRIED 6-0.
d. Designate Official Depositories
Vice President Dwyer disclosed that he is an officer, director, and minority
owner of the Bank of Elk River. Comrtussioner Tveite disclosed that he is an
officer of Wells Fargo.
COMMISSIONER MOTIN MOVED TO DESIGNATE THE
FOLLOWING BANKS AND INSTITUTIONS AS DEPOSITORIES
FOR EDA FUNDS FOR THE YEAR 2003:
• FIRST NATIONAL BANK OF ELK RIVER
Economic Development Authority Minutes Page 3
January 13, 2003
• 4M FUND
• WELLS FARGO BANK
• THE BANK OF ELK RIVER
• USBANK
COMMISSIONER KUESTER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
e. Consider Commissioner ~pgointments and Assignments
COMMISSIONER KLINZING MOVED THE FOLLOWING
APPOINTMENTS AND ASSIGNMENTS:
FINANCE COMMITTEE
• JIM SIMPSON
• TOM MCNAIR
• JEFF GONGOLL
• CLIFF LUNDBERG
• DAN TVEITE
• PAUL MOTIN
• CHRIS CARLSON
BUSINESS INCUBATOR ADVISORY COMMITTEE
• STEPHANIE KLINZING
• JEFF GONGOLL
• LARRY HICKMAN
• JIM BARTHEL
• JACK MOWRY
• LOUISE KUESTER
MARKETING COMMITTEE
• JIM BARTHEL
• CHRIS CARLSON
• KARA HILLMAN/ELK RIVER SCHOOL DISTRICT REP
• GARY SANTWIRE
• JIM SMIPSON
• DAN TVEITE
• DARYL THOMPSON
COMMISSIONER KLINZING SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
Economic Development Authority Minutes page q
January 13, 2003
a. Bylaw Amendment
COMMISSIONER MOTIN MOVED THE FOLLOWING
AMENDMENT TO THE EDA BYLAWS:
"REGULAR MEETINGS OF THE EDA SHALL BE HELD ON
THE SECOND MONDAY OF EACH CALENDAR MONTH AT
5:30 P.M. ANY REGULAR MEETING FALLING UPON A
HOLIDAY SHALL BE HELD ON THE NEXT FOLLOWING
BUSINESS DAY AT THE SAME TIME AND PLACE."
COMMISSIONER KOENIG SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
Consider Micro Loan Extension for Charlene R Barder Edward J Barder and
Margo L. Foster (formerly dba Olde Main Eateryl
Catherine Mehelich indicated that a request has been made to extend the Micro Loan
fox the Olde Main Eatery for an additional term. Commissioner Motin questioned
the issue of the borrowers no longer owning the business for which the loan was
granted. Commissioner Klinzing requested staff to review with the Finance
Committee the micro loan policy as it relates to granting loans for investment
property and dealing with existing loans that change hands during the loan term.
COMMISSIONER TVEITE MOVED TO AUTHORIZE REFINANCING
THE BALANCE OF THE MICRO LOAN WITH CHARLENE BARDER,
EDWARD BARDER AND MARGO FOSTER OVER A 7-YEAR
AMORTIZATION AT A MARKET RATE OF 6.25% WITH A 2-YEAR
BALLOON PAYMENT. COMMISSIONER MOTIN SECONDED THE
MOTION. THE MOTION CARRIED G-0.
Business Incubator Update
Catherine Mehelich introduced Incubator Consultant Harlan Jacobs. Mr. Jacobs
provided an update on the City's incubator program and activities including existing
tenants, recent incubator graduates and new companies who are interested in the
City's incubator program.
Mr. Jacobs introduced Tom Guzik, CEO of Verdantes Inc. Mr. Guzik gave an
update on his company and indicated that he is interested in the City's incubator
program.
7.1. Consider Lease Renewal of Business Incubator Space
Catherine Mehelich informed the EDA that the lease with Larry Hickman of the
Business Incubator building would expire April 14, 2003. Catherine provided an
update on the leasing history of the Business Incubator. She indicated that due to
Economic Development Authority Minutes
January 13, 2003
Page 5
budget cuts, staff is recommending that the custodial duties be the responsibility of
the building owner rather than the city's Street/Park Department.
Dick Gongoll endorsed the Incubator Program and recommended that the EDA
continue the program.
COMMISSIONER TVEITE MOVED TO RENEW THE INCUBATOR
LEASE WITH LARRY HICKMAN OF 5,813 S.F. (3 SUITES) PLUS THE
COMMON AREA OF 1,224 S.F. FOR A TOTAL OF 7,037 S.F. FOR UP TO
TWO YEARS AT A RATE NOT TO EXCEED $2.10 PER S.F. AT A TOTAL
YEARLY LEASE RATE OF $14,777. COMMISSIONER KUESTER
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
Catherine Mehelich indicated that the retainer fee to Genesis Business Centers has
been $500 per month. She indicated that Genesis Business Centers has requested an
increase in the fee to $1,000 per month.
COMMISSIONER KLINZING MOVED TO APPROVE AN INCREASE
IN THE RETAINER FEE TO GENESIS BUSINESS CENTERS TO $1,000
PER MONTH FOR BUSINESS RECRUITMENT AND TECHNICAL
ASSISTANCE. COMMISSIONER KOENIG SECONDED THE MOTION.
Vice Chao Dwyer indicated that he has asked for justification of the fee for the past
several years, but has never received an answer. He stated that the fee of $500 per
month is reasonable and indicated he would vote against the motion.
MOTION CARRIED 5-1. VICE PRESIDENT DWYER VOTING NAY.
8. Strategic Industrial Marketing Activities Update
Catherine Mehelich gave an update of the strategic industrial marketing activities.
She also reminded the EDA of the special meeting planned with the Planning
Commission on February 11, 2003 at City Hall at 6:30 p.m. fox the purpose of
hearing a presentation from Anita Duckox on industrial park and client requirements.
9. Other Business
There was no other business.
10. Adjournment
There being no other business, COMMISSIONER MOTIN MOVED TO
ADJOURN THE MEETING. COMMISSIONER KOENIG SECONDED
THE MOTION. THE MOTION CARRIED 6-0.
Economic Development Authority Minutes
January 13, 2003
Page 6
The meeting of the Elk River Economic Development Autharity adjourned at 6:32
p.m.
Sandra Peine
City Clerk