10-11-2004 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY OCTOBER I I, 2004
Members Present: President Gongoll, Commissioners Koenig, Dwyer, Klinzing, Kuester and
Motin. Commissioner Tveite arrived at 5:40 p.m.
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich, Assistant
Director of Economic Development Heidi Steinmetz, Peter Beck, City
Attorney; and Recording Secretary Debbie Huebner
1. 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 Agenda
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE OCTOBER 11, 2004 EDA
AGENDA. MOTION CARRIED 6-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. SEPTEMBER 13, 2004 REGULAR MEETING MINU'T'ES
3.2. CHECK REGISTER
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
5. Strategic Industrial Marketing Activities Report
Assistant Director of Economic Development Heidi Steimnetz reviewed the Strategic
Industrial Marketing Activities Report, noting the following:
• Staff is awaiting a response from Elk River Business Park and Elk Path Business Center
owners regarding the revised Contract for Initial Sale and Development.
Economic Development Authority Minutes
Ocober 11, 2004
Page 2
• A summary report comparing Elk River with key competitor communities will be
provided at the November EDA meeting.
• An ad featuring Display Solutions appeared in the September 24~h issue of The Business
Journal.
• A direct mail piece was distributed to manufacturers in the tti-county area to promote
the Micro Loan Program and Technical Assistance Program. The City's website was
updated to coordinate with the direct mail effort.
• A recognition event for Minnesota Manufacturing and Technology Week is scheduled
for October 19~h.
Commissioner Dwyer asked if the EDA's Micro Loan application was available on the
Website. Ms. Steinmetz stated no, and explained that staff feels that direct contact with a
potential client is preferred. Also, she noted other communities may duplicate the City's
programs, if the application was available online.
Ms. Steinmetz also noted that a full page "thank you" ad will be printed in the Elk River Star
News during Minnesota Manufacturing and Technology Week.
6. Consider Adoyrion of 2004-2007 Economic Development Strategic Plan
Ms. Mehelich reviewed highlights of the following issues identified in the work sessions to
update the Economic Development Strategic Plan: 1) Industrial Development; 2) Central
Business District; 3) Transportation; and 4) Commercial Development.
(Commissioner Tveite amved at this time - 5:40 p.m.)
In regards to the Industrial Development Strategies, Commissioner Klinzing felt that the
references to TIF, Tax Rebate Financing, and Micro Loans, should be taken out, since these
tools are aheady being used. She fek that they should be looking for other incentives to
encourage development. Commissioner Gongoll concurred. Commissioner Morin
suggested that another "bullet" be added and the words "Promote/enhance TIF, Tax Rebate
Financing and Micro Loans".
Commissioner Klitrzurg questioned the statement under the Transportation section, "Object
to any Highway 10 bypass of Elk River." Commissioner Moon stated that their intent was
that a bypass would be detrimental to the downtown and existing Highway 10 businesses.
Discussion followed regarding possible impacts of road proposals currently under
consideration by MnDOT. Commissioner Motin noted that the City has akeady approved
an east-west comdor to the north, as part of the Transportation Plan.
MOTION BY COMMISSIONER TVEITE, SECONDED BY COMMISSIONER
KOENIG TO APPROVE THE 2004-2007 ECONOMIC DEVELOPMENT
STRATEGIC PLAN, WITH THE CHANGES AS NOTED IN THE
DISCUSSION. MOTION CARRIED 7-0.
City Council Goal Setting Work Session with Boards and Commissions
Director of Economic Development Mehelich noted that the EDA is asked to provide input
at the joint Boards and Commissions meeting on their goals and projects as identified in the
Strategic Plan.
Economic Development AuthoriryMinutes Page 3
October 11, 2004
8. Consider Recommendation to City Council on Land Use Amendment and Zone Change
Elk River Busmess Pazk
Ms. Mehelich reviewed the request by the owners of Elk River Business Pazk, Fischer Sand
& Aggregate/Associated Investors of Elk River for a Land Use Amendment, Rezoning and
Preliminary Plat. Approval of the requests would allow the applicants a Tractor Supply and
Maxsun Fumiture store to be constructed. Ms. Mehelich reviewed staff's findings for their
recommendation of denial of the requests.
Rick Martens, Brookstone, discussed his reasons why he fek the request should be
approved, including: the quality of the buildings/users; the higher value of this site; the
Business Park District does allow some showroom/retail space; economic conditions have
created a weak mazket for potential light industrial users; and, a number of quality jobs
would be created.
Troy Tufto, representing Jimmy Yang of Maxsun Furniture, provided information
regarding Mr. Yang's business experience, and the type of store and number of employees
they are proposing for the Elk River site.
Gary Santwire, EDA Marketing Committee member, stated that this property is
included in the Development Agreement for Elk River Crossing and an amendment to the
Development would be required to remove it. He noted the request does not comply with
Comprehensive Plan adopted only 45 days ago. Mr. Santwire noted that if Rich Deziel's
property located next to the courthouse were rezoned to Highway Business, it also would be
developed immediately. He felt it would be logical for this property to be rezoned (if the
entire park is rezoned), since it is located next to a commercial area.
Commissioner Dwyer stated that when this TIF District was set up, a condition of approval
was that the industrial park be developed. He felt that since the industrial park was built as
part of the TIF, the zoning should remain Business Park.
Commissioner Tveite concurred with Commissioner Dwyer. He noted that it has been the
goal of the City to create a mix of uses in their tax base.
Commissioner Kuester stated that she was not satisfied with the land use of this site during
the Comprehensive Plan review and felt there were mixed opinions whether it should be
commercial or industrial. She recalled that there was support for commercial use of the site.
Commissioner Motin concurred with Commissioners Dwyer and Tveite. He felt that the
jobs proposed for the Maxsun Furniture store were acceptable, but that this use would
generate more traffic than a business park use. He felt that the Maxsun business would be a
better use for the commercial site than Tractor Supply would be, and encouraged Maxsun to
build on the Elk River Crossing site, instead of the business park site.
Commissioner Klinzutg stated that she felt this was a borderline issue that could be argued
either way. She did not feel the issue was discussed much during the Comprehensive Plan
review because of the Development Agreement already in place for the property.
Commissioner Dwyer stated that he recalled Rusty Fifield, Coordinator for review of the
Comprehensive Plan, recommended commercial use for this property, because of its
location. Commissioner Dwyer felt that the property falls in a gray area.
Economic Development Authority Minutes
October I1, 2004
Page 4
Comnusisoner Koenig stated that he liked the proposal and supporting job information, but
he also had a concern that the request conflicted with the newly adopted Comprehensive
Plan and Economic Development Strategic Plan.
Commissioner Gongoll stated that he also supported the job creation and felt there would
be no question Mr. Yang would construct a quality building. But, he stated he was not in
favor of the land use amendment and zone change, and supported the Business Park use for
this site.
MOTION BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER TVEITE TO RECOMMEND DENIAL OF THE REQUEST
FOR A LAND USE AMENDMENT TO HB (HIGHWAY BUSINESS) AND
ZONE CHANGE TO PUD (PLANNED UNIT DEVELOPMENT) FOR LOT 1
BLOCK 1, ELK RIVER BUSINESS PARK. MOTION CARRIED 6-1.
Commissioner Kuester opposed.
9. Other Business
Commissioner Klinzing noted that a Super Target store is being proposed in Otsego and
was concerned about the future fate of the Elk Park Center Target store. She stated that it
was important that the City convey their desire to see the store rerttaur in this location.
Corrurussioner Dwyer stated that it was his understanding that the Super Target would not
be built until after the County Road 36 overpass was completed. The bids for the overpass
would not be let until spring of 2006, and construction would likely not be unti12007.
10. Adjournment
There being no other business, Chair Gongoll adjourned the meeting.
The meeting of the Elk River Economic Development Authority adjourned at 6:35 p.m.
Submitted by,
.cQ x/~~
Debbie Huebner
Recording Secretary