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01-12-2004 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER HIGH SCHOOL LITTLE THEATRE MONDAY, JANUARY 12, 2004 Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuester, Tveite and Motin Members Absent: None Staff Present: Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz, City Administrator Pat Klaers, and City Clerk Joan Schmidt Call Meetine 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. Consider Agenda MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER TVEITE TO APPROVE THE JANUARY 12, 2004 EDA AGENDA. MOTION CARRIED 7-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER KUESTER TO APPROVE THE FOLLOWING CONSENT AGENDA ITEMS: 3.1. DECEMBER 8, 2003 MINUTES 3.2. CHECK REGISTER MOTION CARRIED 7-0. 4. Open Mike No one appeared for open mike. 5. Annual Meeting Issues 5.1. Election of Officers Economic Development Authority Minutes January 12, 2004 Page 2 MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER MOTIN TO ELECT THE FOLLOWING OFFICERS FOR 2004: • PRESIDENT -JEFF GONGOLL • VICE PRESIDENT - PAT DWYER • TREASURER -LARRY KOENIG • SECRETARY -DAN TVEITE • ASSISTANT TREASURER - LOUISE KUESTER MOTION CARRIED 7-0. Commissioner Klinzing thanked President Gongoll for all he has done for economic development in the City. Commissioner Dwyer thanked the Mayor and Councilmembers for reappointing him for another term on the EDA. 5.2. Appoint Executive Director MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER TVEITE TO APPOINT CATHERINE MEHELICH AS THE EXECUTIVE DIRECTOR OF THE EDA. MOTION CARRIED 7-0. 5.3. Designate Official Newsp~er MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER KOENIG TO DESIGNATE THE ELK RIVER STAR NEWS AS THE OFFICIAL NEWSPAPER FOR THE EDA FOR 2004. MOTION CARRIED 7-0. 5.4. Designate Official Depositories Vice President Dwyer disclosed that he is an officer, director, and minority owner of the Bank of Elk River. Commissioner Tveite disclosed that he is an officer of Wells Fargo. MOVED BY COMMISSIONER KOENIG AND SECONDED BY COMMISSIONER KLINZING TO DESIGNATE THE FOLLOWING BANKS AND INSTITUTIONS AS DEPOSITORIES FOR EDA FUNDS FOR THE YEAR 2004: • FIRST NATIONAL BANK OF ELK RIVER • 4M FUND • WELLS FARGO BANK • THE BANK OF ELK RIVER • US BANK MOTION CARRIED 7-0. Economic Development Authority Minutes January 12, 2004 Page 3 Director of Economic Development Catherine Mehelich reported that she had been asked how area banks become an official depository for the HRA or EDA. She reported that she had checked with Finance Director Lori Johnson and was told that the bank would have to be approved by the governing body and that any bank could apply. American National, TCF, or Riverview could also be among the depositories if they so desired; however, the EDA does not have sufficient funds to distribute among so many banks. 5.5. Consider Commissioner Appointments and Assignments Director of Economic Development Catherine Mehelich stated that Mark Urista had been added to the Marketing Committee in the middle of the year. She also reported that she had received correspondence from the new manager of American National Bank Steve King. Mr. King has indicated interest in serving on the Finance Committee and/or the Incubator Advisory Committee. MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER DWYER THE FOLLOWING APPOINTMENTS AND ASSIGNMENTS: FINANCE COMMITTEE • JIM SIMPSON • TOM MCNAIR • STEVE KING • CLIFF LUNDBERG • DAN TVEITE • PAUL MOTIN • CHRIS CARLSON BUSINESS INCUBATOR ADVISORY COMMITTEE • STEPHANIE KLINZING • JEFF GONGOLL • LARRY HICKMAN • JIM BARTHEL • JACK MOWRY • LOUISE KUESTER • STEVE KING MARKETING COMMITTEE • JIM BARTHEL • CHRIS CARLSON • KARA HILLMAN/ELK RIVER SCHOOL DISTRICT REP • GARY SANTWIRE • JIM SIMPSON • DAN TVEITE Economic Development Authority Minutes Page 4 January 12, 2004 • DARYL THOMPSON • MARK URISTA MOTION CARRIED 7-0. President Gongoll asked staff to send letters of reappointment to the Committee members. 5.6. Review Enabling Resolution/Bylaws for Suggested Changes No changes needed; however, it was noted that in the bylaws distributed in the EDA packet, the time and place for the Annual Meeting is incorrect. Director of Economic Development Catherine Mehelich stated that the bylaws have been updated; however, a current copy was not in the packet. 6. Strategic Industrial Marketing Activities Report Catherine Mehelich reported on recent industrial land issue activities in addition to information on an industrial prospect for the city-owned Joplin lot. Assistant Director of Economic Development Heidi Steinmetz reported that advertisements for 2004 will appear in the Business Journal, the Minnesota Real Estate Journal's Leasing Guide, Manufacturer's Alliance Newsletter, and the Elk River Star News. More information will be provided in February. She also reported that the 2004 Community Profile should be finished by the end of this month. She noted that the public relations strategy would include three Economic Development newsletters in 2004, a holiday greeting card, and a direct mail piece. Ms. Steinmetz mentioned that at the February EDA meeting, the Action Committee for Energy would be present to discuss Energy City in general and to review several projects completed since Energy City's inception in 1997. She mentioned that business retention and expansion (BRE) efforts would be coordinated with the Chamber of Commerce. She reminded the EDA that members have signed up to attend the BRE visits. President Gongoll stated that there is a statewide initiative through the Minnesota Chamber and local chamber to provide business perspectives for the area. President Gongoll also stated that the city website should allow an easier way for industrial site selectors and brokers to find information on industrial sites. Individuals should be able to easily find the available industrial sites maps. He stated that not everyone knows that industrial sites information would be under the Economic Development Department. He stated that the current location of this information is found under the Departments sidebar and then under the Economic Development page. He suggested adding a primary link to the city's main page. Staff responded that this would be something that they will check into. Consider Proposal from The Brimeyer Group Inc for the Update of Economic Development Strategic Plan Economic Development Authority Minutes January 12, 2004 Page 5 Director of Economic Development Catherine Mehelich reviewed with the EDA the staff report. She stated that the proposal from the Brimeyer Group would be for two sessions, about four to five hours in length with a total of up to 28 members participating. Discussion followed as to when the sessions could occur. The consensus of the group was that any Wednesday at noon would be best for the first session and that Session Two should be held sometime in May versus April. Mr. Brimeyer's proposed fee for services is $2,800. Ms. Mehelich stated that an amount of $3,500 is included in the 2004 EDA budget for the Plan update and recommended acceptance of the proposal for services. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER TVEITE TO APPROVE THE PROPOSAL FOR CONSULTING SERVICES FROM THE BRIMEYER GROUP, INC., FOR THE PURPOSE OF UPDATING THE ECONOMIC DEVELOPMENT STRATEGIC PLAN. MOTION CARRIED 7-0. 8. Consider Extension of Business Incubator Sublease - KnowledGenetica Heidi Steinmetz introduced Joe Roushar from KnowledGenetica or K-Netica. The EDA granted the company asix-month business incubator sublease extension in April 2003. Mr. Roushar has requested that the EDA consider asix-month sublease extension effective November 21, 2003 through May 20, 2004. Staff recommended a nine to twelve month sublease extension. President Gongoll asked Mr. Roushar's preference and he stated nine months. President Gongoll wished to acknowledge that he serves on the Board of Advisors of K-Netica. MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER MOTIN TO GRANT A SUBLEASE EXTENSION FOR NINE MONTHS FOR KNOWLEDGENETICA. MOTION CARRIED 6-0. President Gongoll abstained. Mr. Roushar demonstrated the capabilities of the company's technology. The demonstration illustrated the ability of the technology to understand English and to answer questions. The information is in a knowledge base with the system organizing the knowledge in aninter-connective network with the system being able to acknowledge and do something useful with the information. 9. EDA Micro Loan -Riverside Manufacturing, Inc Catherine Mehelich reported that Riverside Manufacturing, Inc. has made full payment of the principal amount on its past due EDA Micro Loan. A $3,000 check towards accrued interest and attorney fees has also been received. Staff has made the decision not to try to recover the remaining balance or attorney fees. Ms. Mehelich reported the following loans were paid off in 2003: - David Decker - Beaudry Convenience Economic Development Authority Minutes January 12, 2004 - Carpe Kairos - Ink Wizards - ProTech Engineering - Sponech - Tescom. 10. Other Business There was no other business. 11. Adjournment Page 6 The meeting of the Elk River Economic Development Authority adjourned at 6:28 p.m. ~~ ~ ~~ Joan Schmidt Joan Schmidt City Clerk