11-10-2003 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER HIGH SCHOOL LITTLE THEATER
MONDAY, NOVEMBER 10, 2003
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuester,
Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, City
Administrator Pat Klaers, Assistant Director of Economic
Development Heidi Steinmetz, and City Clerk Joan Schmidt
1. Call Meetin~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 Agenda
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE NOVEMBER 10, 2003 EDA
AGENDA. THE MOTION CARRIED 7-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE FOLLOWING CONSENT
AGENDA ITEMS:
3.1. SEPTEMBER 8, 2003 REGULAR MEETING MINUTES
3.2. CHECK REGISTER
3.3. REVENUE/EXPENDITURE REPORT
3.4. BALANCE SHEET
THE MOTION CARRIED 7-0.
4. Open Mike
No one appeared for open mike.
5. Strategic Industrial Marketing Activities Update
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November 10, 2003
Page 2
Assistant Director of Economic Development Heidi Steinmetz reviewed the recent
marketing activities as outlined in her memo to the EDA dated November 10, 2003.
Ms. Steinmetz highlighted the following activities:
• prospect status report;
• third edition of newsletter direct mail recently distributed;
• report on last month's Manufacturing Week activities; and
• report on Energy City event.
Director of Economic Development Catherine Mehelich informed the EDA that the
business owner of All Tool Design and Manufacturing had contacted her and she had
met with representatives Friday morning. Current employees aze looking at
purchasing the company from current owners. The new owners are looking to the
city to see if the city can assist to help retain their business with local ownership.
They have been discussing this for the last year and hope to make final decisions soon.
They are looking for additional resources. The resources that the city would have are
limited and perhaps up to a million dollars could be loaned from the city's
participation in the MN Community Capital Fund.
This business would retain up to 100 employees and has picked up some new accounts.
If the city were open to considering the use of tax abatement for a business retention
project, Ms. Mehelich would like to carry it further.
President Gongoll stated that he would like staff to work with All Tool. The
company has been a great success story and he would like to help them out.
It was the consensus of the EDA to have staff obtain and present more information at
a future meeting.
6. Comprehensive Plan Update
Director of Economic Development Catherine Mehelich reviewed with the EDA the
memo dated November 10, 2003 from Director of Planning Michele McPherson in
regards to the draft Comprehensive Plan.
Industrial Land Development Strat~~pdate
Sid Inman of Ehlers & Associates was present to answer questions the EDA had in
regards to the meetings staff has held with landowners. Ms. Mehelich reported that
staff had discussed with Rick Martens of Elk River Business Park the analysis of his
land price at $1.60 per square foot. Ms. Mehelich noted Mr. Martens' correspondence
requesting flexibility in consideration of the job creation criteria and retail use of the
lots, and requested that the EDA exclude marketing of the Brown/EDA property for
future Business Park.
Mr. Inman stated that the bond rating companies are watching what the city is doing.
One comment that Moody's had was that they expect the city's tax base to continue to
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November 10, 2003
Page 3
grow as the city undergoes significant development in its active tax increment districts,
including a business park.
Commissioner Motin stated that he does not wish to rezone the Elk River Business
Park property to mixed retail use and suggested waiting until the economy turns
around.
Commissioner Dwyer stated he is open to the idea.
President Gongoll feels that we need to look into this as an option.
Ms. Mehelich stated that staff would continue to have discussions with Rick Martens
regarding a Master Development Agreement with the EDA for the development of
Elk River Business Park.
Ms. Mehelich reported that a majority of Cascade Industrial Park is being sold to one
medium industrial user, requiring land mostly for outdoor storage. She also reported
that Elk Path Business has recently entered a marketing contract with Colliers Towle.
She stated that the new brokers had briefly visited with staff and requested to rezone
the south half of the property for townhome construction. It was the consensus of the
EDA that such a request would likely not be supported.
7. Economic Development Micro Loans Update
Director of Economic Development Catherine Mehelich distributed and reviewed
information outlining the current micro loan portfolio held by the EDA. She
reported that many of the micro loans have recently been paid off in full.
Ms. Mehelich reported that in regards to Riverside Manufacturing, an error was found
in the complaint served to the company in June 2003 prepared by city attorney
Christopher Johnson. The office of Gray Plant & Mooty has prepared the complaint
and had it re-served recently. No additional contact has been received from the
company.
8. Other Business
President Gongoll distributed a press release regarding the State of Minnesota being in
good economic status.
It was stated that EDA workshop topics should be discussed with the City Council.
10. Adjournment
There being no other business, COMMISSIONER GONGOLL ADJOURNED
THE MEETING.
The meeting of the Elk River Economic Development Authority adjourned at 6:00
p.m.
Economic Development Authority Minutes
November 10, 2003
Page 4
Joan Schmidt
City Clerk