Loading...
04-14-2003 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, APRIL 14, 2003 Members Present: President Gongoll, Commissioners Koenig, Dwyer, Motin, Kuester (5:35 p.m.~, Tveite (5:35 p.m.~, and Klinzing (6:00 p.m.~ Members Absent: None Staff Present: Director of Economic Development Catherine Mehelich, Economic Development Assistant Heidi Hall, City Administrator Pat Klaers, 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 5:30 p.m. by President Gongoll. 2. Consider 4/14/03 Agenda The following item was added to the agenda: 10.1. Micro Loan Updates COMMISSIONER KOENIG MOVED TO APPROVE THE APRIL 14, 2003, EDA AGENDA AS AMENDED. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 4.0. 3. Consider Consent Agenda COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. MARCH 10, 2003, EDA MINUTES 3.2. FEBRUARY 11, 2003 SPECIAL JOINT MEETING MINUTES 3.3. CHECK REGISTER 3.4. REVENUE/EXPENDITURE REPORT 3.5. BALANCE SHEET COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4. Open Mike Economic Development Authority Minutes Page 2 April 14, 2003 No one appeared for open mike. 5. Strategic Industrial Marketing Activities Update Economic Development Assistant Heidi Hall provided the strategic industrial marketing activities update. Commissioner Kuester questioned how the results from the manufacturer site visits would be compiled and summarized for the EDA. Director of Economic Development Catherine Mehelich stated that staff keeps notes of the visit in the file and she suggested that EDA members who have visited the company provide a brief verbal report of the meeting at EDA meetings. Commissioner Kuester suggested that information from the visits be summarized and reported in some manner for the EDA to understand trends and issues affecting the businesses. Commissioners Tveite and Dwyer commented on recent visits to Custom Cutter Grinding. President Gongoll commented on M&M Machines visit. 6. S~ortech Expansion Project Update Ms. Mehelich provided a report on the status of the Sportech expansion project in regard to the grant application to the MN Department of Trade & Economic Development's MN Investment Fund program. She noted that the grant application has been submitted and a response is anticipated within the next week. Industrial Park Development Options Update Ms. Mehelich provided an update on the analysis of industrial land development options. She noted that staff has experienced two primary barriers to successfully recruiting small to medium sized light industrial development in Elk River which consist of "availability of 1.5 - 2 acre lots" and "land costs." Ms. Mehelich indicated that Opus Northwest and Ryan Companies have recently provided information regarding what an industrial business can typically afford to pay for land costs of a development-ready site. She suggested that staff provide this analysis to the EDA Marketing Committee for review, discussion, and recommendation. She indicated that following the review of the Marketing Committee, the information would be provided to the EDA. Gary Santwire, 200 5`h Street Elk River, representing Equity Management and Rivers Crossing addressed the EDA. Mr. Santwire spoke about the light industrial property that he developed on East Highway 10 and on Joplin Avenue. He indicated that both buildings were subsidized, one by tax Economic Development Authority Minutes April 14, 2003 Page 3 increment financing and one by purchasing the property for one dollar. He spoke about providing lease space for industrial tenants. He indicated that there are a few in-house tenants who have expressed interest in leasing and there are also tenants who have expressed interest in purchasing land. Mr. Santwire stated that currently there is no way to do business with these tenants in Elk River. He encouraged the EDA to find a way to service up to 5-8 tenants within the next 12 to 14 months. He noted that the only property available in Elk River is the Elk Path property, which has a 3-5 month time period to receive a building permit due to the platting timeframe. Mr. Santwire talked about the deficiencies of other properties that are available. He indicated that the city owns 40 acres by the Elk River Business Park and he suggested putting improvements on the property so that the city can compete with the City of Big Lake and the City of Ramsey. He also suggested a marketing agreement to allow privately owned land to be marketed as available industrial property. Mr. Santwire noted that the cities of Ramsey, Rogers and Big Lake are willing to give land away to good companies and because the City of Elk River is not willing to do this, Elk River cannot compete in the correct market. Mr. Santwire questioned why the Comprehensive Land Use Plan shows the City's 40 acres of light industrial land as being rezoned to mixed-use. Mr. Rick Martens of Brookstone, Inc. addressed issues that relate to the reduced industrial activity in the Elk River Business Park, such as free affordable land, outdoor storage, and design standards. He stated that he has lost 2-3 deals over the last 18-24 months because he could not offer free land for the Elk River Business Park. He indicated that he has also lost a few deals due to the outdoor storage requirements. Mr. Martens indicated that design standards do not seem to be a big issue. Mr.Martens stated that it is important to have affordable land in sizes of 1.5 to 2 acres. He indicated he is looking at smaller sized parcels that are affordably priced, but not free. Commissioner Motin did not agree that the City needs to give property away or compete with surrounding areas. Commissioner Motin indicated that he wants to be more particular about which industries are in Elk River. Commissioner Dwyer indicated that the City could recoup costs through other ways if it gives the property away such as through tax abatement or tax increment financing. COMMISSIONER DWYER MOVED TO REFER THE INDUSTRIAL LAND ANALYSIS TO THE MARKETING COMMITTEE FOR REVIEW WITH THE CONDITION THAT INFORMATION BE PROVIDED BACK TO THE EDA IN ONE MONTH. Economic Development Authority Minutes Page 4 April 14, 2003 COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Consider Extension of Business Incubator -KnowledGenetica Economic Development Assistant Heidi Hall reviewed the background on the request for a lease extension for KnowledGenetica. Ms. Hall introduced Mr. Joe Roushar, Chief Technology Officer for KnowledGenetica. Mr. Roushar gave a brief update of the company and requested to emend the current lease by six months. President Gongoll indicated that he would abstain from voting on the issue because he is providing the company with some consultative services. COMMISSIONER DWYER MOVED TO GRANT A 6-MONTH SUBLEASE EXTENSION TO KNOWLEDGENETICA. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 6-0-1. PRESIDENT GONGOLL ABSTAINED. 9. Consider Amendments to Micro Loan Policy Ms. Mehelich indicated that staff has been working with the EDA Finance Committee to revisit the Micro Loan Policy for any amendments. Ms. Mehelich reviewed the primary amendment issues. COMMISSIONER KLINZING MOVED TO ADOPT THE AMENDED MICRO LOAN POLICY. COMMISSIONER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 10. Other Business 10.1. Micro Loan Updates Ms. Mehelich distributed a memo relating to the temporary extension of a micro loan for M&A Investments, LLC. She indicated that the lender is requesting a 3-month temporary extension on the micro loan in order to allow time for the Finance Committee to review the request. COMMISSIONER TVEITE MOVED TO APPROVE A TEMPORARY EXTENSION OF THREE MONTHS ON THE MICRO LOAN TOM & A INVESTMENTS. L.L.C. COMMISSIONER KOENIG SECONDED THE MOTION. THE MOTION CARRIED 7-0. Economic Development Authority Minutes April 14, 2003 Page 5 Ms. Mehelich distributed a memo relating to the delinquent payment of a micro loan from Riverside Manufacturing, Inc. Ms.Mehelich indicated that staff has made appropriate attempts to collect payments. She indicated that in addition to not receiving payment, there has been a lack of acknowledgement to repeated communications. Ms. Mehelich indicated that the city's attorney recommends that the EDA authorize the preparation of necessary documents to serve the company with a summons and complaint. Commissioner Motin suggested that this issue be given to the City's prosecuting attorney. COMMISSIONER MOTIN MOVED TO DISCUSS THIS ISSUE WITH CHRIS JOHNSON, THE CITY'S PROSECUTING ATTORNEY, TO SEE IF THIS IS AN ISSUE THAT HE CAN RESOLVE, AND IF IT IS NOT AN ISSUE THAT HIS OFFICE CAN RESOLVE THEN THE CITY'S ATTORNEY (GRAY, PLANT, MOOTY) SHOULD CONTINUE TO PROCEED WITH THE SUMMONS AND COMPLAINT. COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION CARRIED 7-0. 11. Adjournment There being no other business, President Gongoll adjourned the meeting. The meeting of the Elk River Economic Development Authority adjourned at 7:00 ~ma v .~P Sandra Peine City Clerk