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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