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12-13-2004 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT ELK RIVER CITY HALL MONDAY, DECEMBER 13, 2004 Members Present: President Gongoll, Cortunissioners 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, Director of Planning Michele McPherson, Debbie Huebner, Recording Secretary 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 KOENIG TO APPROVE THE DECEMER 13, 2004 EDA AGENDA. MOTION CARRIED 7-0. 3.1. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER KOENIG TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. OCTOBER 11, 2004 REGULAR MEETING MINUTES 3.2. NOVEMBER 8, 2004 SPECIAL MEETING MINUTES 3.3. CHECK REGISTER 3.4. OCTOBER 2004 BALANCE SHEET 3.5. OCTOBER 2004 REVENUE/EXPENDITURE REPORT 3.6. NOVEMBER 2004 BALANCE SHEET 3.7. NOVEMBER 2004 REVENUE/EXPENDITURE REPORT MOTION CARRIED 7-0. 4. Open Mike No one appeazed for open mike. 6. Industrial Land Development Update Ms. Mehelich explained that as a result of the November 8, 2004 joint work session with the City Council, staff was given direction to develop a plan for Phase 1 improvements for the 60 acres of City-owned Cargill land, and the 45 acres of EDA-owned Brown property, to Economic Development AuthotityMinutes December 13, 2004 Page 2 encourage industrial development. Ms. Mehelich explained the City's objectives in creating a level "playing field" for end users to select a site based on location and amenities, rather than on price. She reviewed the table in the staff report to the EDA which provided information regarding industrial/business park land prices in neighboring communities as it compazes to Elk River. As a result of staff's meeting with Sid Inman of Ehlers & Assoc, they are proposing a mazketing strategy for development of the EDA Brown property. Sid Inman, Ehlers & Assoc., explained the request-for-proposals (RFP~ process. He felt that the EDA/City will receive the highest price for the property, development to the highest and best uses, and allows the EDA/City to control the process. Ms. Mehelich noted that staff would prepare the RFP, which would then be reviewed by the EDA and City Council for approval. Mr. Inman reviewed his recommendations for the RFP process. He noted that a master development agreement would be prepazed with well defined goals and specific dates for developer performance, and that the EDA/City can temunate the agreement and select another developer if these performance goals are not met. President Gongoll asked what would be the timeframe for the RFP process. Mr. Inman stated that the response time could be fairly quick. President Gongoll asked if both the Cargill and Brown property would be included. Mr. Inman stated yes. Commissioner Dwyer asked how this process would be different from Elk Path Business Park. Ms. Mehelich stated that in this case the City would carry the costs until a new developer has actually purchased the property. Mr. Inman noted that they will figure out the best way for the City to carry the costs. Discussion followed regarding options that could be used for installing improvements. Commissioner Motin stated that their objective is to have a level playing field and get the lots available as quickly as possible. Mr. Inman stated that if the City installs the improvements, the developer would be ready to go the next day after purchasing the property. Commissioner Dwyer asked what if the developer put in the roads and utilities. Mr. Inman stated that they would need to calculate when the developer would be responsible for assessments, so that they would know upfront. Ms. Mehelich asked for direction from the EDA. She stated that staff could put together some concept layouts, get feedback from the Commission utilities, the utilities could be stubbed in, and the City could market the lots. Staff would need to know if they would like to see layouts of both the Brown property and Cargill property. Commissioner Gongoll stated that he was leaning toward utilizing the RFP process and would like to see layouts of both sites. Commissioner Tveite asked if Mr. Inman felt the quality of responses on the RFP would be different if they only did the Brown property. Mr. Inman stated that they may want the option to continue to develop the properties independently. Mr. Inman asked if the EDA would like to interview the prospective developers. He felt there would be some advantage of having this discussion on public record. Commissioner Dwyer stated his support for the RFP process, and stated that developers will come up with their own design. Ms. Mehelich noted that the 10 acres on the north side of the EDA Brown property is planned for the new YMCA. Economic Development Authority Minutes December 13, 2004 Page 3 President Gongoll asked how they will proceed with RFP. Ms. Mehelich stated that they will follow the plan outlined in Mr. Inman's memo to the EDA. President Gongoll asked how many RFP's they could expect. Ms. Mehelich stated that she would expect approximately two dozen could be sent out. 5.1. Strategic Industrial Marketing Activities Update Ms. Steinmetz updated the Commission regarding the Key Account/Lead Generation Strategy, Promotions & Advertising Strategy, Public Relations Strategy, Strategic Partnership Strategy, and Business Retention Strategy, as detailed in her staff report to the Conunission dated December 13, 2004. Ms. Steinmetz noted that a recent prospect mentioned that they like the case srudies located on the Economic Development website because they can read about why other companies located in Elk River. Also, holiday greeting cards will be sent to key accounts and industrial prospects. Ms. Steinmetz reviewed the results of the 2004 BRE visas and comments staff received regarding the following issues: traffic, flexibility of the City regarding zoning/planning issues, finding workers, taxes, competitiveness with other communities, and global competitiveness. President Gongoll asked if Sherburne County has added an Economic Development staff person. Ms. Steinmetz stated they have not yet hired for the position. 5.1. NAIOP Survey Summary Ms. Steinmetz reviewed the comparison of the variation in processing times and fees between Elk River and its key competitor communities. She noted that the survey shows the process takes less time in Elk River than many of the other 77 communities included in the survey. NAIOP plans to conduct another survey next year, and hopes to make the data more usable. Ms. Steinmetz mentioned that the Director of Planning Michele McPherson provided straightforward responses to the survey, and that there are no hidden costs regarding city fees. She noted that other communities may have interpreted the questions differently. Ms. Steinmetz provided an overview of the City's industrial development process, noting that it was streamlined in 2001. She noted that their intent is to keep the process between 30 - 90 days, and that there are no surprises for the developer. 5.2. Timetable for Economic Development Strategic Plan Ms. Steinmetz reviewed the activities that have occurred in the development of the 2004- 2007 Strategic Plan, and the timetable for implementation of the plan as it relates to Industrial, Central Business District, Transportation, and Commercial Development. Commissioner Kuester noted that some of the implementation steps in the Central Business District would be undertaken by the IdRA. Ms. Steinmetz stated that the EDA would support the roles of the HRA and City Council in the implementation process. Ms. Mehelich stated that the next step would be to determine "who does what". Discussion followed regarding the transportation component of the Plan. President Gongoll asked how the plan relates to Economic Development issues. Ms. Steinmetz noted that she serves on Economic Development Authority Minutes page a December 13, 2004 --------------------------- the EDAM Legislative Economic Development Association of Minnesota Committee, to stay active in legislative issues. President Gongoll stated that the Chamber of Commerce is working on its Day at the Capital event and asked about EDAM's event. Ms. Steinmetz will provide details at the next meeting. Commissioner Kuester asked if the commercial area slated for 2007 coincides with the gravel mining schedule. Ms. Mehelich stated yes. Commissioner Kuester felt that the Kelley Farm should not be overlooked as an economic development aspect for the City. ?Ms. Mehelich noted that Energy City is also a marketing tool for industrial development, and has a tourism element, as well. 7. Discuss Heritage Preservation Commission Request for Joint Meeting with EDA and HRA for January 10, 2005 Ms. Steinmetz explained that the Heritage Preservation Commission (HI'C) would like to discuss with the HRA the issue of establishing a historic district in the downtown, to make sure their efforts don't conflict with the HRA's plan for the area. The HPC would also like to meet with the EDA to discuss a possible project to engage downtown businesses in restoring and rehabilitating their buildings with financial incentives. Staff recommends that the EDA consider a joint meeting the HPC and HRA to be held during the next regulaz EDA meeting on Monday, January 10, 2004. The Commission concurred to schedule the joint meeting. 8. Other Business President Gongoll expressed thanks to retiring Commissioner Koenig for his conunitment and friendship while serving on the EDA. Cottunissioner Klinzuzg noted that incoming Councilmember Gumphrey will replace Commissioner Kuester on the EDA and she will be appointed to serve on the HRA as a member at large. Incoming Councilmember Farber will replace Commissioner Tveite on the EDA, but Mr. Tveite will be appointed to continue serving on the EDA as a member at large, replacing Commissioner Koenig. 9. Adjournment There being no further business, President Gongoll adjourned the meeting. The meeting of the Elk River Economic Development Authority adjourned at 6:30 p.m. Rennspectfully,,s/ubmitted, .C17a,~t Debbie Huebner Recording Secretary