3.1. EDSR 12-12-2011~~
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 10, 201 I
Members Present: President Touchette, Commissioners Gumphxey, Motin, Tveite, Westgaaxd,
and Zerwas
Members Absent Commissioner Dwyer
Staff Present. Interim City Administrator Robert Thistle, Director of Economic
Development Annie Deckert, Assistant Director of Economic
Development Clay Wilfahrt, and Executive Secretary/Deputy City Clerk
Jessica Alillex
Cal] 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 Touchette.
2. Consider Agenda
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER ZERWAS TO APPROVE THE OCTOBER 10, 2011 EDA
AGENDA. MOTION CARRIED 6-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
COMMISSIONER WESTGAARD TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. SEPTEMBER 12, 2011 REGULAR MEETING MINUTES.
3.2. CHECK REGISTERS AS OUTLINED IN THE STAFF REPORT.
3.3. BALANCE SHEET AS OUTLINED IN THE STAFF REPORT.
3.4. REVENUE/EXPENDITURE REPORT AS OUTLINED IN THE STAFF
REPORT.
MOTION CARRIED 6-0.
4. Onen btike
No one was present.
5. Discuss CDI Proposal
Ms. Deckert presented the staff report.
Discussion took place on the request by Ctystal Distribution, Inc. (CDI) to purchase and
expand on a portion of a 8.88 parcel in the Northstar Business Park.
Economic Development authority Minutes
October ]Q, 2011
Page 2
Commissioner Zerwas stated that he is not in favor of splitting the lots as he would like the
large iot utilized by one business. He added that it down'[ make sense for the EDA to split
the lots and have to market the smaller parcel.
PresidentTouchette indicated he appreciates CDI's presence in the community and that
staff and the EDA need to find a way to make this work. He noted that if a right in, tight out
turn isn't an option, the lot may need to remain unsplit but that there should still be a way to
make it work fox CDI.
Commissioner Motin explained he is not interested in marketing the second lot. He believes
CDI should purchase the entire lot and split and market the second lot or keep the entire lot
for future expansion. He added that he will not agree to a right in, right out tum off of Twin
Lakes Road.
Commissioner Gumphxey indicated that he is in favor of splitting the lot now because CDI
should not be required to purchase more than they need Eor their expansion.
Commissioner Tceite stated if the frontage road issues can be xesolaed, he would be in favor
of splitting the lot and allowing CDI to purchase only the parcel they need. He noted that he
would look fox CDI to cover many of the costs associated with the lot split and required
infrastructure to make the second lot viable.
Commissioner Westgaard explained that access off of Twin Lakes Road should be limited so
access fox these lots would have to come off of Tyler Street He stated he is not opposed to
a split but wants to make sure the parcel remaining after the split is a buildable, marketable
piece.
Commissioner Motin questioned why the sale options include $2 per square foot versus fair
market value. Ms. Deckert explained that there has been discussion on whether or not the
parcel is worth $2 per square foot.
Consensus of the EDA was for staff to explore options, costs, and viability of splitting the
lots and for staff to obtain an appraisal on the property as a whole and the split with access
Eor the northern piece from Tyler.
Dave Link, general contractor for CDI -indicated that CDI would be willing to work with
staff to provide improved access to the second parcel. He stated that it is not Financially
possible fox CDI to expand if they have to purchase the entire parcel. He added that CDI
will accept reasonable costs associated with infrastructure fox the second parcel if the lots axe
split.
6. Branding Undate
Mx. Wilfahrt provided a branding update as outlined in his staff report.
Marketing Update
Mr. Wilfahrt provided a marketing update as outlined in his staff report.
Economic Development .Authority Minutes Page 3
October 1Q 2011
8. Discuss Initiative Foundation Request
Ms. Deckert presented the staff report.
Commissioner Zettivas indicated that he asked for this item to be brought back because he
was absent from the August meeting when it was discussed and the vote was tied. He stated
thatit makes sense for the EDA to contribute since Ell; River and Sherburne County have
consistently benefited.
Commissioner A~'estgaard questioned why the EDA stopped contributing. Commissioner
Motin indicated that his recollection is that the Initiative Foundation was requesting a three
or five year commitment and the EDA was not willing to make that commitment. He stated
that it is a good foundation but he's not sure the EDA should spend money it doesn't have.
He indicated he would like to see a policy outline EDA contributions. Ms. Deckert explained
that previous EDA discussion was to consider contributions on a case by case basis.
Commissioner Tveite concurred with Commissioner Motin. He stated he would rather see
the $2,500 go towards Energy City.
President Touchette indicated that it is an excellent foundation but be believes the EDA
should concentrate the money in Elk River. Fie added that these may be better uses for the
$2,500.
MOVED BY COMMISSIONER GUMPHREY AND SECONDED BY
COMMISSIONER ZERWAS TO CONTRIBUTE $2,500 TO THE INITIATIVE
FOUNDATION. MOTION TIED 3-3. President Touchette and Commissioners Motin
and Tveite opposed.
Commissioner Gumphxey requested that this item be discussed at the next meeting when all
commissioners axe present.
Commissioner Motin directed Ms. Deckert to check with City Attorney Peter Beck to see if
there is a limit to the number of times the EDA can consider the same item.
9. Other Business
President Touchette indicated that the second annual Elk Rives Area Arts Alliance AxtCrawl
is Thursday, October 20.
10. Adiournment
There being no other business, President Touchette adjourned the meeting of the Elk River
Economic Development Authority at 6:35 p.m.
Minutes prepazed by Jessica Miller.
Tina Allard, City Clerk
Ron Touchette, President