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06-13-2005 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 13, 2005 Members Present: President Gongoll, Commissioners, Dwyer, Klinzing, Motin. Commissioner Tveite amved at 5:40 p.m. Members Absent: Commissioners Fazber and Gumphrey Staff Present: Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz, City Admuus[rator Pat Klaers, 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 A~*enda MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE JUNE 13, 2005 EDA AGENDA. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. MAY 9, 2005 MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 4-0. 4. Open Mike Commissioner Dwyer stated he was unhappy to see the design changes made to the downtown buildings from what was shown in the conceprual architecuu-al drawings. He explained that the Comprehensive Plan clearly stated the design in the Old Town Distria are to be compatible with the existing designs and are to preserve the character of the downtown. He stated he finds the changes unnerving and questioned why the HRA did not see the construction plans before submission to the City Council. He felt it was wrong for the developer io make these types of changes without allowing input from the HRA. Economic Development Authority Minutes June 13, 2005 Page 2 Director of Economic Development Catherine Mehelich stated that the design and construction plans only require City Council approval and that the HIiA Chair requested the I-IRA's review and comments on the plans following the Council's approval. Commissioner Dwyer stated that he could not imagine the City allowing another T'IF' project developer to make these types of drastic changes. Commissioner Klinzing stated she did not see a great deal of change in the construction plans from what was originally presented. She stated she did not expect that the developer would duplicate what exists downtown. Commissioner Dwyer stated that he felt the changes were dramatic and cheapened the overall look of the buildings. Commissioner Kliuzhig stated that the buildings are new and were not meant to look like old buildings. Commissioner Dwyer stated that it was his understanding that they would blend in with the old buildings. Commissioner Motin stated that he concurred with Commissioner Klurzing, in that it was not his understanding that the developer would duplicate what cttrrently exists downtown, and that it is meant to compliment it. He stated the HRA wants something that will last. Commissioner Dwyer stated that he felt the facades shown in the architectural drawings were more in step with what is downtown. 5. Strategic Industrial Marketing Activities Update Assistant Director of Economic Development Heidi Steinmetz reviewed a memo to the City Council from Steve Rohlf, Building & Environmental Administrator, regazding the creation of an Energy City Commission. Ms. Steinmetz discussed staff's visit with Randy Krenz of AllTool on May 4~. Mr. Krenz told staff he would be happy to provide a reference for Elk River's business recruitment efforts or marketing. Ms. Steinmetz also discussed staff's BRE lunch visit with Ed Cunnington, President of Tescom on June 3~d. The business was purchased by Everson Electric and Mr. Cunnington will be retiring after almost 30 yeazs in the business. Commissioner Tveite arrived at this time (5:40 p.m.) Commissioner Dwyer stated that he is sorry to see Ed go, but that the new president of Tescom will be a nice addition to Elk River. He noted that in his visit with Tescom, he Teamed that their "clean room" is 1,000 times cleaner than a hospital. President Gongoll noted that Mr. Cunnington has been a strong Elk River supporter of Elk River over the years, serving as Chamber president. President Gongoll also noted that a colleague of his in Fatibault serves on a committee with Mr. Gary Kindseth, Vice President of Faribault Foods, the buyer of SoftPac, and that Mr. Kinseth has a strong background of City Council service. Mr. Kinseth indicated that he appreciated staff's recent BRE with SoftPac and Faribault Foods. Economic Development Authority Minutes June 13, 2005 Page 3 Ms. Mehelich stated that Faribault Foods has asked to take over the obligations of the original TIF agreement SoftPac has with the City. She stated that SoftPac has exceeded the job and wage requirements of 60 new jobs at $10.00 - $12.00 per hour. She stated that the only other remaining condition is the requirement to stay in Elk River five years and SoftPac had one year left. She stated that documents for reassignment of the TIF Agreement to Faribault Foods were prepared by the City Attorney and executed by the City Administrator. Ms. Steinmetz expressed thanks on behalf of the EDA to the presidents and administrators of the businesses for taking the time to meeting with staff. She noted that a visit to Elk River Machine is scheduled for Wednesday, June 15~ at 11:30 a.m. Ms. Steinmetz provided background information regazding the proposal to establish an Energy City Commission and to seek the "Energy City" designation. Commissioner Dwyer stated that he fek a 15 member commission was huge. President Gongoll stated that he usually cannot attend the Action Committee for Energy (ACE) meetings. Commissioner Klinzing stated that is the reason the Commission is so large; many of its members often cannot attend meetings. She stated that the Committee has been operating since 1996 with the lazge membership, but that all the members do not attend every meeting. She felt that reducing the size of the committee would leave a lot of people out of the process. Commissioner Motin stated that he had concerns about making the committee a City Commission and questioned what the benefit would be. Commissioner Klin>ing stated that a presentation will be made at the June 13~h City Council meeting and she felt they may be surprised to Team what the committee has accomplished. She stated that they have done a number of things to help the city to become a name that people recognize; they provide tours many times a year to people from all over the State and the world interested in energy efficienry and renewable energy. She noted that Elk River had the first atomic plant in the nation, and that the RDF, Great River Energy, and Elk River Landfill are involved in the Energy City program. She stated that an addition is proposed for the methane gas recovery facility at the Elk River Landfill. Commissioner Klinzing noted that the high performance schools are also patt of the Energy City. Commissioner Tveite stated that he felt it was a minimal investment on the pan of the City. He noted that he talks io people all across the United States who are interested in what Elk River is doing, such as the energy efficient stop lights. Commissioner Klinzing stated that she felt the City would be better able to promote the purpose of the committee by establishing it as a commission. 6. Northstaz Business Park Development Update Ms. Mehelich provided background information regazding the EDA's recommendation to the City Council for platting of the Northstaz Business Park property and proceeding with underground utilities m the first phase. She noted that on June 6~h, the City Cotmcil action was to receive the feasibility study and order a public hearing for July 5~, and to order preparation of plans and specs and begin the platting process. Since that time, staff has received interest from three prospects as noted in the staff report to the EDA. Staff is working to obtain a letter of intent from the interested prospects to present to the City Council in July. Ms. Mehelich stated that it is the City's intent that the lots be purchased by Economic Development Authority Minutes June 13,2005 Page 4 the user up from and receive pay-as-you-go Tax Rebate Financing from the City and County. She explained this process. Ms. Mehelich noted that staff has recently been made aware of a grant opportunity from the MN Department of Employment and Economic Development (DEED), which would provide 50% of the capital cost of public infrastructure. Staff expects to submit the grant application later this month and notification of award would be approximately one month after submission. Ms. Mehelich reviewed then reviewed the Improvement Project Schedule as outlined in the staff report to the EDA dated June 13, 2005. Ms. Mehelich noted that the gas line proves to be challenging in providing buildable sites. She stated that the improvements are proposed to be constructed in August and their goal is to allow construction by the prospects in September by allowing them a temporary access. She stated that the prospects will pay up front for the improvements. She noted that land and infrastructure costs to date are approximately $1 million. President Gongoll stated that he hopes they will have an oppornuuty to fill the Noxthstar Business Park and the Elk River Business Park, as well. Ms. Mehelich noted that a 20,000 square foot prospect is planning to locate in the Elk River Business Park in the near future. 7. Ms. Mehelich provided background information regarding the schedule which was approved by the City Council for development of the city-owned Cargill land. She stated that the Planning Department has prepared a number of concept options for discussion at the July 11, 2005 City Council work session. The EDA is invited to attend this work session, therefore, a special meeting of the EDA will need to be called. MOTION BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER MOTIN TO CALL A SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT AU'T'HORITY FOR THE JULY il, 2005 WORK SESSION WITH THE CITY COUNCIL TO DISCUSS CITY-OWNED CARGILL PROPERTY DEVELOPMENT CONCEPTS. MOTION CARRIED 5-0. 8. Other Business -None Adjournment There being no other business, President Gongoll adjourned the meeting. The meeting of the Elk River Economic Development Authority adjourned at 6:15 p.m. Sunbmitted ~by: .Q~~t 'XX6c~4re-~r~ Recording Secretary