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07 10 2006 EDA MINMEETING OP THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 10, 2006 Members Present: President Gongoll, Commissioners, Dwyer, Farber, Gumphrey, Klinzing, Motin and Tveite Members Absent: None Staff Present: Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz, 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. Consider Agenda MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER DWYER TO APPROVE THE JULY 10, 2006 EDA AGENDA WITH THE FOLLOWING ADDITIONS: 10.A. - COMMISSIONER DWYER ITEM IO.B. - COMMISSIONER FARBER ITEM MOTION CARRIED 7-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER FARBER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. JUNE 12, 2006 MINUTES 3.2. CHECK REGISTER 3.3. BALANCE SHEET 3.4. REVENUE/EXPENDITURE REPORT MOTION CARRIED 7-0. 4. Ooen Mike No one appeared for open mike. 5. Consider Contribution Toward Metro Fringe Enterprise Network Systems Analysis (ENSA) Economic Development Authority Minutes July 10, 2006 Page 2 Assistant Director of Economic Development Heidi Steinmetz explained that ENSA is a high tech data analysis tool for using industry statistics to better recruit potential manufacturing industries. She noted there are four ENSA regions, and that Elk River is included in the "Metro Fringe" region along with the communities within Sherbtune and Wright counties. Ms. Steinmetz stated that the Initiative Foundation will contribute $7,500 toward the cost of the $10,000 proposal to complete the comprehensive research on the selected set of potential targeted manufacturing industries as part of the Metro Fringe ENSA project. The Metro Fringe group is hoping to raise the remaining $2,500 ($1,250 from Wright County and $1,250 from Sherburne County). Staff recommends that the EDA consider a contribution of $500 to betaken from its 2006 marketing budget for this project. President Gongoll asked if the study will detemvne which community a particular industry would be best suited for. Ms. Steinmetz stated that it would not be that specific, but would be region-specific. Ms. Mehelich explained that ENSA is a database tool designed for industry retention and recruitment, and that further research could follow on defined target industries, such as location criteria, wages, where are they located now, etc. Commissioner Tveite asked if specific names would be given for prospect recruitment. Ms. Mehelich slated yes, and that the goal is successfully locate at least one company per county as result of the data. Commissioner Dwyer asked if labor resources are taken into consideration, and, what happens if the analysis identifies a specific industry in another city; could potential conflicts arise by competing for businesses between the different regions? President Gongoll suggested that each of the cites contribute half the amount, and the County could match it. Commissioner Motin questioned having a goal of locating one new business for all of Sherburne County. He stated that he had questions with the process and would like more time to consider it. It was the consensus of the Commission to continue discussion of this issue at the next regular meeting. 6. Consider Loan Extension Request Lake Assault Custom Boats, LLC Ms. Steinmetz provided background information regarding the $50,000 3.25% Micro Loan to Lake Assault Custom Boats, LLC. The company has requested atwo-year extension on the loan. She noted that the company has fulfilled the goals of their job performance agreement and has made consis[ent loan payments. Staff recommends approval of the two- year extension per the Finance Committee's recommended terms. MOTION BY COMMISSIONER MOTIN, SECONDED BY COMMISSIONER TVEITE TO APPROVE ATWO-YEAR EXTENSION OF THE LAKE ASSAULT CUSTOM BOATS, LLC MICRO LOAN WITH THE FOLLOWING TERMS: • PRIME RATE OF INTEREST AT 8 PERCENT • LOAN REPAYMENT SCHEDULE BE ADJUSTED RETROACTIVE AS OF THE COMPANY'S JUNE 5, 2006 BALLOON PAYMENT DUE DATE. Economic Development Authority Minutes Page 3 J~ty to, zoo6 MOTION CARRIED 7-0. Proposed Energy Improvement Loan Program Update Ms. Steinmetz reviewed the EDA's June 12~ discussion, and the Finance Comnvttee's June 14~h discussion regarding the potemial of investing the balance of the Business Incubator Program fund into an incentive program for businesses to incorporate energy efficient design and/or materials in the construction of their facility. Commission Motin stated that he felt an incentive program for energy savings should be driven by Energy City and not the EDA. He felt the Incubator funds should be preserved as a development tool and would not want to see the funds depleted. President Gongoll conctured. A question was raised regarding use of the remaining Incubator funds. Ms. Mehelich stated that it is not necessary to designate a use at this time and that in the meantime the funds will remain in the Micro Loan fund account. Update on Sub-Committee Exploring Sherburne County Economic Developmem Entity Commissioner Dwyer stated that representatives from all cities in the County, the County Board, County Administration and SCEDA attended the first meeting of the Sub- committee. The meeting focus was to establish goals and the framework for the group. He noted that the Sub-Committee will be meeting every other week until a plan is set in place. Commissioner Dwyer noted that Elk River's representation on the committee includes Stewart Wilson, HRA Chair, John Babcock of SCEDA, and Councilmember Gumphrey. Norths[ar Business Park Monument Sign Update Ms. Steinmetz reviewed details of the monument sign proposed for Northstar Business Park. Commissioner Gumphrey suggested that a temporary sign be utilized to indicate the City of Elk River's interest in selling lots within the Business Park. Ms. Mehelich stated that could be accomplished. 10.a. Commissioner Dwyer Item Corrunissioner Dwyer noted that Great River Energy has announced that they will keep their Control Center in Elk River, and that a number of highly skilled positions are associated with this operation. 10.6. Commissioner Farber Item Commissioner Farber expressed his concern that there still are no restaurants that he would consider "Class I Restaurants" locating in Elk River, and felt this was an issue in attracting new industrial companies to the City. Ms. Mehelich stated that commercial development is a component of the Economic Development Strategic Business Plan. She stated that more staff time and resources are required to put together a commercial development strategy and plan. Economic Development Authority Minutes July 10, 2006 Page 4 Community Development Director Scott Clark stated that a high level of commercial development is occurring in Otsego, Ramsey and Rogers, and that he felt Elk River's turn is coming. He felt that we are at a disadvantage as far as what is happening around us. Commissioner Fazber questioned why the City could not be more proactive in seeking out Class I restaurant businesses. He felt that Elk Ridge Center was an ideal location. Ms. Mehelich stated that area restaurants have stopped serving noon lunches due to lack of customer demand. She noted that at one time there was interest in the northeast comer of Main and Highway 169 but that the Council decided to set it aside for a future interchange. Commissioner Dwyer stated that information he has received from developers of national accounts is that everyone wants to be on Highway 169 or 101. Commissioner Klinzing stated that the City really does not have much control over what type of restaurants come in as long as they meet the zoning requirements. She expressed concern that land suitable for Class I restaurants is being taken up by other uses. Commissioner Tveite stated that he is not sure the City should have the control and that restaurant businesses know when and where they can be viable. Commissioner Motin stated that the EDA could come up with a "wish list" of restaurants and have staff send letters indicating our interest. He noted that since the City owns the Gateway property, they can be selective in the type of businesses that locate there. Ms. Steinmetz stated that it would be a good idea to get input from the Marketing Committee to include in the Strategic Marketing Plan update, to possibly shift their focus to more commercial development. 11. Adioumment There being no other business, President Gongoll adjourned the meeting. The meeting of the Elk River Economic Development Authority adjouurned at 6:15 p.m. Su//b~~mitted b~`y:~/ Recording Secretary