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03-14-2005 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MARCH 14, 2005 Members Present: President Gongoll, Commissioners, Dwyer, Farber, Grunphrey, Moon and Tveite. Commissioner Klinzing amved at 5:33 p.m. Members Absent: None Staff Present: Director of Economic Developmem Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz; City Administrator Patrick Klaers; City Engineer Terry Maurer, and Recording Secretary Debbie Huebner Also Present: Sid Inman of Ehlers & Associates; Harlan Jacobs of Genesis Business Centers 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 DWYER AND SECONDED BY COMMISSIONER FARBER TO APPROVE THE MARCH 14, 2005 EDA AGENDA. MOTION CARRIED 6-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER GUMPHREY TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. FEBRUARY 14, 2005 MINUTES 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. Commissioner Klinzing amved at this time (5:33 p.m.) Economic Development Authority Minutes March 14, 2005 5. Discuss 2004 Inquiry/Prospect Report Page 2 Director of Economic Development Catherine Mehelich reviewed the Inquiry/Prospect Tracking report for 2001-2004. She stated that the report indicates trends over the past four years in inquiry type, size and status. She stmmmarized that 84 total inquiries were made in 2004, and approximately one-half were industrial-related. She stated a total of 27 inquiries were strictly Light Industrial related and that three of those projects successfully located to Elk River, and 6 - 10 prospects remain active. Chair Gongoll asked where commercial service uses could be located. Ms. Mehelich stated that they could be located in Industrial Districts, and if there was no outside storage, in a multi-tenant building in the Business Park District. She noted that outdoor storage is allowed in the Decker budding with approval of a conditional use permit. Chair Gongoll stated that businesses with fleet vehicles have a difficult time siting their operations with the outdoor storage restriction. The Commission discussed the 2004 inquiries listed in the report. Chair Gongoll asked if the detailed report shows the acreage of sites for each of the inquiries. Ms. Mehelich explained that if an inquiry is for land only, this can be broken out, but if it is for a building, staff would have to figure out what size lot would be required based on the square footage that the prospects were looking for. 6. Consider Proposals for EDA Brown Property Development Ms. Mehelich provided background information which led to the Request for Proposals (RFPs) for development of the EDA Brown property. Ms. Mehelich stated that the RFP was sent on February 1, 2005 with a deadline for submission of March 1~. She stated that two proposals were received; one from Amcon and one from Duke Realty. She stated that two issues need to be addressed: 1) the development proposals received, and 2) the timing of the public improvements. She noted that the EDA has expressed an interest in having buildable lots available by Fall 2005. The City Engineer has detemmined that in order to meet this goal, City Council approval would be required in March/Apxi12005. Ms. Mehelich stated that staff is looking for direction from the EDA regarding interest in proceeding with the development proposals and public improvement process. Chair Gongoll stated that he was surprised at the number of proposals submitted. Sid Inman of Ehlers & Associates stated that both of the firms that submitted proposals are reputable and have done similar projects. He stated that he and staff will continue discussions with the developers to clarify the issues associated with the site. Mr. Inman reviewed the "side by side" proposal analysis. Commissioner Moon stated that he would like more information on the developers' concepts, but supports the EDA proceeding with improvements in order to have lots ready to build by fall. He also commented that Amcon has not met their current build-out of requirement in their East Business Park. Mr. Inman commented to his concern about that relationship to the EDA Park and its build-out time line would be another three to five years. Ms. Mehelich slated that the Duke concept does not include public improvements and that Duke feels private infrastrucnu-e costs could be borne by the end user. They felt they would be able to market the lots without the public improvements. She noted that Duke also was Economic Development Authoriry Minutes March 14, 2005 Page 3 excited about the progress of the Northstar Commuter Rail project and the development potential for large employment-intensive industries adjacent to the Depot Station. Commissioner Tveite stated that he would be in favor of more discussion with the developers. He stated that the Duke proposal did not address the chunk of land between the gasline and the proposed YMCA site, and felt that a couple of smaller buildings could be sited there. Commissioner Dwyer stated that the developers should also keep in mind the option of the EDA marketing the lots on their own and to consider offering more tangible benefits for the EDA to market exclusive with one developer. Commissioner Klinzing stated that she had concems that since the City already has a development agreement with Amcon, that they would not want to compete with themselves. She stated that she did not feel either of the proposals were what the EDA was looking for. Commissioner Klinzing stated that the Duke Realty plan doesn't seem to be flexible enough. She stated if the City can't find tenants to occupy the units proposed would this tie up the possibility of the City being able to be more flexible with that property. She concluded that neither proposal looks exceptionally well at this point and maybe the City should develop the property at this time. Commissioner Motin stated that he had concems with the accesses on the Duke proposal, in relationship to the YMCA site. Discussion followed regarding how to proceed with the proposals and public improvements. The EDA directed staff to continue to obtain more information from the developers. Commission Klinzing commented even though the Commission is considering these two proposals, she would like to see the City not be "tied" up with the two current proposals making it impossible to deal with any other future offers. She also did not want to leave the discussion this evening with the intent of not entertaining any other proposal from any outside source. MOTION BY COMMISSIONER FARBER AND SECONDED BY COMMISSIONER MOTIN THAT THE EDA RECOMMEND THAT THE CITY COUNCIL AUTHORIZE A FEASIBILITY STUDY FOR PUBLIC IMPROVEMENTS FOR THE EDA BROWN PROPERTY. MOTION CARRIED 7-0. Chao- Gongoll asked City Engineer Terry Maurer if there would be adequate time to prepare the feasibility study. Mr. Maurer stated that much of the groundwork for the study has already been completed and once the study has been ordered, it would take approximately 30 days to complete the doatment. Semi-Annual Business Incubator Report: Harlan Jacobs, Genesis Business Centers Mr. Jacobs reviewed the semi-annual repor[, noting that the Incubator Program is making good progress despite the lack of venture capital funding resources from the Anoka Sherburne County Capital Fund and the Elk River Investment Club. He provided information regarding four start-up companies that are cun-ently considering the Incubator program. They are: Economic Development Authority Minutes March 14, 2005 Page 4 Ashcote/Jim Stewart - An entrepreneur with technology that utilizes common fly ash from coal burning to be used as coating for telephone/utility poles. Vilco/Oy - A Finnish company with a remote controlled fishing unit that delivers the fishing line/lure to the "right spot" on a body of water. SEO Precision, Inc. -Precision laser missile guidance systems components that can be used for commercial lighting applications. The firs[ non-military application will be for faun implement lighting systems. SeeBuddee, Inc. -Technology that enables one to read a large map easily in a palm sized optical unit that allows for multi perspective vision. Mr. Jacobs also discussed existing prospects for the Elk River Incubator. He concluded by saying that the greatest obstacle they face is the lack of venture capital funding. 9. Adjournment There being no other business, Chair Gongoll adjoturned the meeting. The meeting of the Elk River Economic Development Authority adjourned at 6:38 p.m. Sunnbmitted by: .(SIa,~G~i `~ Recording Secretary