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11-14-2005 EDA MINMEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 14, 2005 Members Present: President Gongoll, Commissioners, Dwyer, Gumphrey, Klinzing, Motin and Tveite Members Absent: Commissioner Fazber Staff Present: Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz, Interim City Administrator Lori Johnson, Community Development Director Scott Clark, 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. 3. 4. Consider Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER TVEITE TO APPROVE THE NOVEMBER 14, 2005 EDA AGENDA. MOTION CARRIED 6-0. Consider Consent Agenda MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER KLINZING TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. CONSIDER SEPTEMBER 12, 2005 REGULAR MEETING MINUTES 3.2. CONSIDER OCTOBER 10, 2005 SPECIAL MEETING MINUTES 3.3. CONSIDER OCTOBER 17, 2005 SPECIAL MEETING MINUTES 3.4. CHECK REGISTERS 3.5. SEPTEMBER 2005 BALANCE SHEET 3.6. SEPTEMBER 2005 REVENUE/EXPENDITURE REPORT 3.7. OCTOBER 2005 BALANCE SHEET 3.8. OCTOBER 2005 REVENUE/EXPENDITURE REPORT MOTION CARRIED 6-0 Open Mike No one appeared for open mike. 5. Northstar Business Pazk pdate Economic Development Authority Minutes November 14, 2005 Page 2 Assistant Director of Economic Development Heidi Steinmetz stated that the loop road in the Northstar Business Park has been completed and installation of the small utilities such as gas, electric and phone will begin November 14~. She noted that Alliance Machine, Crystal Distribution, Inc. (CDI), and Medical Extrusion Technologies (MET) have all begun construction of their projects. Ms. Steinmetz provided the following update: The assessment schedule has been completed and will be certified in December. The monument sign design is being revised and quotes will be obtained for Spring 2006 construction. The grant agreement with DEED for the $495,000 grant was recently executed. Ms. Steinmetz noted that the City's Cable Department will be videotaping the construction progress at Northstar Business Pazk on a bi-monthly basis and footage will be incorporated in the City's annual report. Commissioner Gumphrey asked if staff has received any inquiries for the remaining sites in the business park. Ms. Steinmetz stated no. Director of Economic Development Catherine Mehelich congratulated Ms. Steinmetz on her success in obtaining the DEED grant, and the Commission concurred. Ms. Mehelich stated that the process for the grant was very competitive and challenging., and that special permission was required from DEED because two companies relocating their businesses from other communities. Ms. Mehelich stated that the grant will help to reduce the costs to new users coming into the business park. 6. C'r at River Energy Comorate Headquarters Project Update Ms. Mehelich stated that the boundary survey requested by Great River Energy (GRE) was provided to them today for the Gateway Business Center site. Topography and wetland delineation information was also provided. Ms. Mehelich noted that GRE is also looking at sites ui Maple Grove, Dayton, and St Michael. A decision on the site election by the Board is expected in the next week. Consider Recommendation to City CouncIl for Approval of Tax Rebate Financing Assistance for Quality Label Inc Project Ms. Mehelich stated that Quality Label, Inc.. is a family-owned printing company specializing in labels for the food and beverage, health and beauty, promotional and medical industries. The company employs 23 full-time staff with an average hourly wage of $21.00 per hour, and proposes to create 15 additional new jobs with a minimum hourly wage of $15.00. She noted that they anticipate the creation of 30 new jobs within a 5-yeaz period. John Jacobs co-owner of Quality Label, Inc. -Stated that the company currently leases 12,000 squaze feet in Fridley and they are seeking a location within the northwest metro area to relocate and expand in time for their lease expiration in spring 2006. Quality Label, Inc proposes to construct a 25,000 squaze foot light industrial building on a 4.12-aae lot in Elk River Business Park, occupying 80 percent of the space and leasing out the remaining 5,000 squaze feet. He noted that he has worked in the industry for 15 years and also has a companion company in Rogers. Ms. Mehelich noted that the company's `But For" analysis has been completed and that staff recommends the EDA recommend approval of their request. Economic Development Authority Minutes Page 3 November 14, 2005 President Gongoll stated that he welcomed Mr. Jacobs to Elk River. Commissioner Tveite asked how the timing of the lease expiration would coordinate with the opening of the new facility. Mr. Jacobs stated that he will extend his lease on a month- to-month basis to July 1, 2006. MOTION BY COMMISSIONER TVEITE, SECONDED BY COMMISSIONER GUMPHREY TO RECOMMEND TO THE COUNCIL APPROVAL OF PROVIDING TAX REBATE FINANCING (TRF) ASSISTANCE TO QUALITY LABEL, INC. IN THE AMOUNT OF $133,947 WITH THE COMPANY RECEIVING 100 PERCENT OF THE CITY'S ANNUAL TAX REVENUE FOR A MAXIMUM PERIOD OF UP TO 10 YEARS, AND WITH THE REQUIREMENT THAT THE COMPANY COMMIT TO CREATION OF 15 NEW FULL-TIME POSITIONS AT A MINIMUM HOURLY WAGE, EXCLUSIVE OF BENEFITS REQUIRED BY LAW, OF $15.00, WITHIN TWO YEARS. THE MOTION CARRIED 6-0. 8. Other Business A. Community Development Director Update Community Development Director Scott Clark discussed plans for a future forum to review the development process. Commercial/residential developers and lenders will be invited to pro~tide constructive criticism and ideas for improving the development process. Mr. Clazk stated that the City needs to convey cleaz and concise expectations to developers and establish a communication "bridge" for the developer to work with the various departments/divisions whIle moving through the development process. He stated that individuals currently can enter the process three different ways; the Building Di~7sion, Economic Development Division, or the Planning Division. Mr. Clark stated that it should be the City's goal for a developer to be able to say Elk River is a good uty to work with. He stated that the EDA would be kept informed of plans for the forum. B. Downtown Update Ms. Mehelich stated that all four buildings on the Bluff Block site have been removed. Staff is in the process of resolving building pemut issues. She stated that the developer is not sure when construction will begin on the Jackson Block, and that it may not be until Spring 2006. Ms. Mehelich noted that the King Avenue parking lot seems to be working well. Commissioner Tveite asked how the presale of units was going for the Bluff Block. Ms. Mehelich stated that 16 condominium units have been sold and that a brokers' open house will be held in the future to promote the retail space. Ms. Steinmetz noted that Parks and Recreation Director Bill Maertz indicated that construction of the downtown park will also begin in Spring 2006. Commissioner I{]inzing asked what the timeline was for the Bank of Ells River expansion project. Commissioner Dwyer stated that the bank plans to start construction as soon as possible and that construction documents will be completed by the end of 2005. He stated that they hope to begin construction in February. The $4.1 million project includes a two- Economic Development Authority Minutes November 14, 2005 Page 4 story 21,000 - 22,000 squaze foot addition in the area of the existing drive-up, and will be constructed to provide for a possible future third story. 9. Adiournment There being no other business, Chair Gongoll adjourned the meeting. The meeting of the Elk River Economic Development Authority adjourned at 6:00 p.m. Su//b~~mitted ~b`y:~ R/~t 'XYlc~es~+-- Joan Schmidt City Clerk