09-08-2003 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 8, 2003
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing,
Kuester, and Motin
Members Absent: Commissioner Tveite
Staff Present: Director of Economic Development Catherine Mehelich, City
Administrator Pat Klaers, Economic Development Assistant Heidi
Hall, and Recording Secretary Debbie Huebner
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 9/8/03 Agenda
COMMISSIONER KLINZING MOVED TO APPROVE THE
SEPTEMBER 8, 2003 EDA AGENDA. COMMISSIONER KOENIG
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consider Consent Agenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT
AGENDA AS FOLLOWS:
3.1. AUGUST 11, 2003 REGULAR MEETING MINUTES
3.2. CHECK REGISTER
3.3. REVENUE/EXPENDITURE REPORT
3.4. BALANCE SHEET
COMMISSIONER KOENIG SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
Economic Development Authority Minutes Page 2
September 8, 2003
5. Strategic Industrial Marketing Activities Update
Economic Development Assistant Heidi Hall reviewed the recent marketing
activities as outlined in her memo to the EDA dated September 8, 2003. Ms. Hall
provided an update on available industrial lease space totaling 71,100 square feet.
She announced that Incubator graduate Cymbet Corporation was recently honored
among 14 other companies as Minnesota Innovator of the Year.
Commissioner Motin asked how the City became involved in promoting Rogers
High School. Comtissioner Klinzing explained that the new school is being
promoted through Energy City, because of the fact that it is considered a "high
performance" or "sustainable" building, and incorporates energy efficient
capabilities with a renewable energy source. Ms. Hall noted that there are other
projects promoted through Energy City such as Haubenschild Farm in Zimmerman
and the Livonia Township Hall.
Ms. Hall noted that staff is working with the Chamber of Commerce to schedule the
annual recognition of Minnesota Manufactures Week. This year's plans include a
tour of Cymbet and Marketech, which will be followed by a luncheon with keynote
speaker Mark Sheffert.
Director of Economic Development Catherine Mehelich added that the event is
being planned in recognition of Manufacturers & Technology Week (October 20-
24), and that Elk River's event is scheduled for October 21.
6. Industrial Land Development Strategy Update
Director of Economic Development Catherine Mehelich introduced Sid Inman of
Ehlers & Associates. Mr. Inman discussed options outlined in the analysis of the
industrial/business park development costs presented to the EDA in the staff report
dated September 8, 2003. Mr. Inman stated that if the EDA was comfortable with
his recommendations, that he and staff should meet with the two landowners to
begin the process of evaluating their cost of the land and discuss the process. He
stated that the EDA should deternune if they prefer having a master developer for
the EDA-owned Brown property and if so, an RFP (Request for Proposals) would
be appropriate. Mr. Inman explained various strategies that may be required in
negotiations, such as variances.
Ms. Mehelich noted that the EDA may consider variances from the agreement in
order to negotiate a "0" cost when in direct competition with another city for an
industrial prospect.
COMMISSIONER DWYER MOVED TO CONTINUE STAFF'S
DISCUSSIONS WITH THE TWO LANDOWNERS WITHIN THE
PARAMETERS SET FORTH IN THE EHLERS & ASSOCIATES MEMO.
Economic Development Authority Minutes Page 3
September 8, 2003
COMMISSIONER KOENIG SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
6.1. Case No. CU 03-27, Request for an Interim Use Permit for a Fitness Facility, Elk
River Business Park
Ms. Mehelich asked the EDA to comment on a request for an Interim Use Permit
for a fitness facility in Elk River Business Park. She noted that the Director of
Planning recommends denial of the request and suggests rezoning of the properly to
Highway Business, if the EDA wishes to allow this type of use in this location.
Discussion followed regarding whether fitness facilities should be allowed in the
Business Park zoning districts. Commissioner Klinzing noted that having a fitness
facility in a business park may be looked at as an amenity.
COMMISSIONER DWYER MOVED TO RECOMMEND DENIAL OF
THE INTERIM USE PERMIT REQUEST FOR A FITNESS FACILITY
IN ELK RIVER BUSINESS PARK. COMMISSIONER MOTIN
SECONDED THE MOTION. THE MOTION CARRIED 4-2.
Commissioner Koenig and Kuester opposed.
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COMMISSIONER KLINZING MOVED TO RECOMMEND THAT THE
CITY COUNCIL, PLANNING COMMISSION AND STAFF STUDY THE
ISSUE OF WHICH ZONING DISTRICT WOULD BE MOST
APPROPRIATE FOR THE LOCATION OF FITNESS FACILITIES.
COMMIISSIONER MOTIN SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
COMMISSIONER KOENIG MOVED TO OPPOSE REZONING OF THE
ELK RIVER BUSINESS PARK PROPERTY TO HIGHWAY BUSINESS.
COMMISSIONER KUESTER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
Consider Year 2004 Economic Development Budget
Ms. Mehelich reviewed the proposed revisions to the 2004 EDA Budget.
She indicated that the HRA approved the EDA's request to divide Personal Services
from 70/3- to 60/40, EDA and HRA respectively. Ms. Mehelich stated other
modifications include a contribution to the Initiative Foundation and Chamber of
Commerce membership.
COMMISSIONER MOTIN MOVED TO APPROVE THE 2004 BUDGET
REVISIONS OUTLINED IN THE MEMO TO THE ECONOMIC
DEVELOPMENT AUTHORITY DATED SEPTEMBER 8, 2003.
Economic Development Authority Minutes Page 4
September 8, 2003
COMMISSIONER DWYER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
8. Consider New Business Incubator Tenant -Lap2 Technology Corporation
Ms. Hall provided background on the Advisory Committee's review of two
prospective tenants, Intellipatch and Lap2 Technology. She stated that Intellipatch is
not interested until financing has been secured.
Ms. Hall introduced Mr. Rob Henningsgard of Lap2 Technology Corporation,
prospective Business Incubator tenant. Ms. Hall noted that Mr. Henningsgard is
mterested in occupying the 1,041 square foot Suite 130 space. She reported that the
Incubator Advisory Committee reviewed Lap2's application and is recommending to
the EDA admittance in the Incubator. Mr. Henningsgard provided the Commission
with information regarding his product that combines cell phone, computer, and
Internet connection capabilities.
COMMISSIONER KLINZING MOVED TO ENTER INTO AONE-YEAR
INCUBATOR LEASE AGREEMENT WITH ROB HENNINGSGARD OF
LAP2 TECHNOLOGY CORPORATION, BEGINNING SEPTEMBER 15,
2003. COMMISSIONER MOTIN SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
9. Other Business
City Administrator Pat Klaers noted that beginning October 20, 2003, the City
Council, Economic Development Authority and Housing and Redevelopment
Authority would be meeting at the Elk River Senior High School Little Theater.
City Administrator Pat Klaers discussed a proposal from Pat Summerall Productions
for participation in a "Best Managed Cities in America" recognition award. He
stated that both he and Commissioner Klinzing spoke with a representative of the
company and that they agreed to present the offer to the EDA and Ciry Council for
comment. Commissioner Dwyer stated that the Bank of Elk River was approached
by the same compatry two years ago, and after further investigation, they found that
the offer was misrepresented and not worth the investment. It was the consensus of
the Commission to recommend that the City not participate.
10. Adjournment
There being no other business, CHAIR GONGOLL ADJOURNED THE
MEETING.
The meeting of the Elk River Economic Development Authority adjourned at 6:46
p.m.
Economic Development Authority Minutes
September 8, 2003
Respectfully submitted,
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Debbie Huebner
Recording Secretary
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