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