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
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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.
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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
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December 13, 2004
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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