09 11 2006 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER I I, 2006
Members Present President Gongoll, Commissioners, Dwcer, Fatbex, Gumphrey, Moan and
Tceite
Members Abscnc Commissioner Klinzing
also Present: Councilmembex Dietz
HR~~ Members Present: Chair ~l""'ikon, Commissioners Leiser, Toth and Kuester
Staff Present: Director of Economic Development Carherine Mehehch, Community
Development Director Scott Clark, and Recording Secretary Debbie
Huebner
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. b3~ President Gongoll.
2. Consider Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER DWYER TO APPROVE THE SEPTEMBER 11, 2006 EDA
AGENDA. MOTION CARRIED 6-0.
Consider Consent Agenda
MOVED BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. AUGUST 14, 2006 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.
Consider Adoption of 2007-2009 Strategic Industrial blarketingPlan -Presentation by
Muxxay~ ~X~'olf. WoIE Marketing & Media
Economic Development Authoxit5- Minutes
September 11, 2006
Page 2
Director of Economic Development Catherine Mehelich introduced Murat' Wolf of \~'olf
Marketing & Media. Mr. Wolf reviewed the various components of the Plan, including the
following:
• Assessment of results of Strategic Industrial Marketing Plan 2002-2001 Action Plan
• 2007-2009 Action Pian
• Project Background acid Research Methodology
• Overall Business Envixonmeut
• Target Markets: Primary -Manufacturers
• Target bfarkets: Secondan--Industrial Brokers
• Competitors
• City of Elk River Goals and Objectives
• Strategies and Tactics -Strategies 1 - ~
• Tracking and Measurement
~1r. y't'olf noted that he received very positive feedback in the intere-iews. Only a couple of
complaints were received relating to vin' process, and he believes that good progress has
been made in this area since the hiring of a Community Development Director. He also
noted that most people he interviewed were not in favor of loosening the ciij•'s standards, as
this would have a negative impact on existing businesses and ti~eix investment.
Commissioner Tveite stated that the primary concern of the Marketing Committee is the
need fox more industrial land.
Commissioner Motin stated that there is a potential issue of depleting possible industrial
property with commercial/retail uses. He felt they need to examine the best strategy fox
both needs.
Discussion followed regarding the use of industrial brokers to market cities. Mr. Wolf stated
that they could consider other types of compensation fox brokers bringing new clients to the
city, on a case-by-case basis. He noted that if the city is going to consider some type of
compensation, they need to communicate it to the brokers.
President Gongoll asked if the Marketing Committee will continue to be involved in
implementing the Marketing Plan. Ms. Mehelich stated that she did not see a need fox them
to meet at this time and that staff will proceed in implementing their recommendations. Ms.
Mehelich noted that the EDA did pay a broker fee as part of the commission for two of the
three Northstax Business Park developments.
President Gongoll stated that he was impressed with the results of the Plan completed by
Wolf Marketing & Media. He stated he would also like to recognize the Marketing
Committee fox their work.
President Gongoll stated he agreed with Commissioner Taeite that more industrial land is
needed in order to implement the plan. He felt that business retention should also be high
on the priority list. He suggested a survey of existing businesses to see where they axe at
now, and what their plans axe fox the future. President Gongoll stated that he understood
that the City cannot create a demand fox a fine dining restaurant, since this is a tough sector
of the market to attract. He felt that in order for the City to be successful, they need to be
proactive politically in advancing the City's transportation system. President Gongoll
expressed his appreciation to staff, stating that the positive feedback the City received was a
I3conomic Development Authority Minutes
Scptc~nber 1 ], 2006
Page 3
direct result of the high level of service provided by Catherine Mehelich, Heidi Steinmetz
and Scott Clark.
MOTION BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER GUMPHREY TO APPROVE THE 2007 - 2009 STRATEGIC
INDUSTRIAL MARKETING PLAN. MOTION CARRIED 6-0.
Update on Gateway Business Center Project
Community Development Director Scott Clark reviewed the proposed work plan for the
Gateway Business Park, as outlined in his repart to the EDA dated September 7, 2006. He
noted that land study would be 60 - 90 daps out. Mr. Clark explained that this project would
be more difficult than the Northstar Business Park because of the gas line, wetlands,
drainage, street corridor to 165'h Avenue, and visibilih' and transportation issues. it'Ir. Clark
stressed the importance of including the stakeholders along Highway 10 in the plan. He
stated that the goal is to be ready fox development in 2005, but that the ED ~ could start to
market the project in 2007. He suggested that a new name fox the project be considered,
since there already is a "Gatewat East" development be Duke Realt<~ in Rogers.
President Gongoll asked if it has been determined that the gas line cannot be relocated. 1\-1x.
Clark stated no, and that it can be considered as part of the review. He noted that it is a very
expensive process.
MOTION BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE GATEWAY BUSINESS PARK
WORK PLAN DATED SEPTEMBER 7, 2006. MOTION CARRIED 6-0.
The Speclal Meeting of the City Council and Housing & Redevelopment Authority was
opened at this rime.
Toint Meetine undo HRA and Cin~ Council for Presentation on Eminent Domain &
Redevelopment by Stacie KvIlvang, Ehlers & Associates
Stacie Kvilvang of Ehlers & Associates provided an overview of the recent change to the
eminent domain law and how those changes will affect how the Cite, HRA and EDA
undertake economic development and redevelopment activities. She noted that the new
legislation preempts all other law regarding eminent domain. Ms. KvIlvang explained the
differences in determuiing blight for Tax Increment Financing, redevelopment, and
condemnation.
Discussion followed regarding increased costs to cities by the new legislation.
Cotmissioner Farber stated that eminent domain has been used ven~ little and he would
hope they would not have to use it, but that the new legislation would make it nearly
impossible to use iE it were to become necessary. He suggested that the state legislators be
contacted fox support in amending the new law.
HRA Commissioner Larry Toth asked for clarification on the determination for
contamination. Ms. Kvilvang explained.
Economic Development Authority Minutes
September 11, 2006
Page 4
HRH Chair Stewart ~%ilson asked clarification on the HRA's use of blight findings. ?\Is.
Kvilvang explained. She noted that the eminent domain blight findings axe more difficult
than Tax Increment Financing blight findings.
Commissioner Tveite stated he felt several components of the new law axe good in that they
require cities to err on the side of being more generous. He felt the contunination
determination was unfair, and needs to be modified.
Commissioner Dwyer stated that he felt that if it is necessary to take a property, it was
appropriate that the}- be given a comparable property.
8. Other Business
Ms. Mehelich noted that Medical Extrusion Technologies will host an open house with
champagne toast and pig roast on Thursday, September 18, ?006.
Commissioner Dwyer stated that the Shexbume Counfi Board will be considering the
Economic Development recommendations at their Tuesday, September 1?'h meeting at
11:00 a.m.
9. Adjouxmnent
There being no other business, PRESIDENT GONGOLL ADJOURNED THE
MEETING.
The meeting of the Elk River Economic Development Authority adjourned at 6:50 p.m.
Submitted by:
Joan Schmidt
Ciry Clerk