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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 Economic Development Authority Minutes 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 Economic Development Authority Minutes 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