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3.1. EDSR 06-11-2012ITEM # 3.1 MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MAY 14, 2012 Members Present: President Tveite, Commissioners Dwyer, Gumphrey, Motin, Provo, Westgaard, and Zerwas Members Absent: None Staff Present: City Administrator Cal Portner, Assistant Director of Economic Development Clay Wilfahrt, and City Clerk Tina Allard 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 Tveite. 2. Consider Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER WESTGAARD TO APPROVE THE MAY 14, 2012 EDA AGENDA. MOTION CARRIED 7-0. 3. Consider Consent Agenda An additional check register was distributed to the commission and President Tveite requested it to be added to the Consent Agenda. MOVED BY COMMISSIONER ZERWAS AND SECONDED BY COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1 MINUTES ^ APRIL 23, 2012 REGULAR MEETING 3.2 CHECK REGISTER. 3.3 BALANCE SHEET. 3.4 .REVENUE/EXPENDITURE REPORT. 3.5 BUDGET AMENDMENT -DONATION TO INITIATIVE FOUNDATION IN THE AMOUNT OF $2500. 3.6 ADDITIONAL CHECK REGISTER ITEM. MOTION CARRIED 7-0. 4. Open Forum No one was present for open forum. 5. Consider Donation Policv Economic Development Authority Minutes May 14, 2012 Page 2 Mr. Wilfahrt presented the staff report regarding donation requests to the EDA. He outlined three options the EDA should consider when deciding on whether or not to adopt a donation policy: 1) The first option is to maintain the status quo and discuss donation requests on a case- by-case basis. Some challenges of this procedure include lack of flexibility in offering donations if funds aren't budgeted; the number of requests coming in are unknown; Authority to feel vulnerable to emotional appeal. 2) The second option is to adopt a no-donation policy. Requests would be sidestepped and the EDA would focus funding on other EDA initiatives. The budget and timeframe issues would be resolved. However, a donation may create an economic benefit to the community and conflict with the intent of the Authority. 3) The third option would be to adopt a donation policy that requires an application and clear deadline that at a minimum meets the state statutory guidelines. The EDA would then discuss and approve all donation requests for the remainder of the year. This policy allows for funding and a fair deliberative process. Commissioner Dwyer stated he still felt there be no donation policy in place based upon the recommendations of the city attorney. Mr. Wilfahrt stated the city attorney did not have any preference with these three options but any policy in place should be clearly worded and followed consistently. President Tveite stated he would like to see donation requests considered on a case-by-case basis and determine if these events have an intrinsic value and merit for the business community. Commissioner Zerwas agreed, and requested the Authority continue handling requests as they had been and continuing to consider the economic impact of the individual request. He didn't feel a deadline should be required to make a donation request. Commissioner Motin felt no policy should be in place but felt an application deadline would work best, allowing the Authority to take time in considering each request on a case-by-case basis with advance notice so the Authority can make a thoughtful decision. He felt that all requests must be presented to the Authority three months ahead of time. Commissioner Provo stated perhaps the donation amount should be based on what you have coming in, not what the needs are of others. Commissioner Provo stated the EDA should grant money on anon-biased basis. Commissioner Westgaard agreed with not having a polity, and rather, on an individual basis, evaluate each request on its own merits. A deadline would be nice to allow for budgeting, but sometimes these requests and events don't correlate with the budget process also. In favor of case-by-case basis. Commissioner Dwyer agreed that the EDA does more than business and industrial recruiting and that some events bring people and economic impact to the community. Commissioner Provo asked if there was a specific amount earmarked for donation requests. Economic Development Authority Minutes May 14, 2012 Page 3 President Tveite stated the amount is determined as the EDA works through the budget process. Mr. Wilfahrt stated that if the budget line item is depleted and a donation is approved, a budget amendment would have to be approved by the Authority and fund shifted to cover the donation. MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER ZERWAS TO CONTINUE CONSIDERING DONATION REQUESTS FROM OUTSIDE AND NON-PROFIT GROUPS ON A CASE- BY-CASE BASIS. MOTION CARRIED 6-1. COMMISSIONER MOTIN OPPOSED. Elk River Area Art's Alliance Artsoup Donation Request Mr. Wilfahrt presented the staff report. Dave Raymond, Chairman of the Elk River Arts Alliance Board, presented the Artsoup budget and explained how money is raised and distributed, and the benefits this festival brings to the community by bringing people downtown. Commissioner Motin asked if the downtown business pay a fee to promote a booth during the event. Mr. Raymond stated they do ask the businesses to pay for an advertisement that is in the Artsoup brochure. They do not deny any businesses if they do not contribute. Commissioner Motin stated he was opposed to the donation request. President Tveite asked how staff felt about a donation to Artsoup. Mr. Wilfahrt stated if the commission felt comfortable this donation would have an economic impact. He stated one option would be using funds available in the branding implementation budget; the brand plan calls for promoting downtown area events. President Tveite said he felt that Artsoup would be an every other year event and this donation request was not expected for this year. Commission Zerwas concurred and wasn't under the impression that this event would be an every year event. He also felt the total in-kind donations were approximately the same amount that Artsoup was requesting. Commissioner Provo stated several suggestions, one being if the donation amount could be somehow reduced; such as if the event would be held every year, could the donation be reduced to $1,000 per year. He also asked if the donation amount be taken from the branding budget, could the Powered by Nature branding efforts be as advertising Commissioner Zerwas asked if the donation of $1,000 could be considered a sponsorship and use efforts towards the promotion of the Powered by Nature branding efforts, similar to Economic Development Authority Minutes May 14, 2012 Page 4 a booth at the business expo. He stated he would be more willing to approve something like this Mr. Wilfahrt stated staff is very comfortable with doing some sort of sponsorship with them and felt the city's logo and branding efforts could be very effective. Commissioner Westgaard concurred with Commissioner Provo's comments. He still requested it be an every other year request. He feels the event promotes economic development; however, increasing budgets from an annual cost from $1,000 to $2,000 is tough to do. He agreed with the advertising and branding strategies tied with the donation. President Tveite asked Mr. Raymond if the Artsoup committee would be open to using the Powered by Nature branding efforts by allowing branding efforts and a booth for advertising. Mr. Raymond stated the committee would be open to this. He felt the community tent would be an appropriate place for the city to place a booth. He stated the decision to make this event an every other year was due to popular demand and wasn't known when they made their donation request last year. Commissioner Gumphrey stated the in-kind donations from the utilities, police, Council, and parks and recreation budgets didn't include any monies from the EDA. He would approve a $2,000 donation request. MOVED BY COMMISSIONER GUMPHREY TO APPROVE A REQUEST FOR A DONATION TO ARTSOUP IN THE AMOUNT OF $2,000. MOTION FAILS FOR LACK OF A SECOND. MOVED BY COMMISSIONER ZERWAS AND SECONDED BY COMMISSIONER MOTIN TO DIRECT STAFF TO COORDINATE MARKETING EFFORTS WITH ARTSOUP REPRESENTATIVES BY PROMOTING THE POWERED BY NATURE BRANDING PLAN AND IF STAFF FEELS APPROPRIATE, INCLUDE A BOOTH AT THE EVENT TO HIGHLIGHT THE BRAND WITH A COST NOT TO EXCEED $1,000. APPROVED 7-0. Mr. Raymond stated the Arts Alliance would be putting on an event on May 24, to thank their sponsors. This event will be held at 312 Jackson. He invited the commission to come and tour the gallery and see demonstrations in the ceramics studio and classrooms. The commission thanked the Arts Alliance for their volunteer efforts and presence in the downtown area. Elk River Independence Celebration Donation Request Mr. Wilfahrt presented the staff report. Jim Boyle, representing the Elk River Independence Committee, provided a history of the committee and an update on their fundraising efforts. He explained the priorities of this citizen-run event. He then explained their efforts of putting together a charter to not only assist this event but assist in other good things for the community. Economic Development Authority 1~linutes May 14, 2012 Page 5 Commissioner Dwyer stated the city has historically assisted in this fireworks show and supported approving the donation request. President Tveite asked if the branding plan efforts could somehow be incorporated into this event as well. Mr. Boyle stated he met with Mr. Wilfahrt and Annie Deckert and it was suggested to hold some sort of a photo contest. Commissioner Motin stated he is pleased that the purpose of event will benefit the community as a whole. President Tveite commented that the monies were budgeted and encouraged other groups to approach the Authority well before the scheduled event. MOVED BY COMMISSIONER ZERWAS AND SECONDED BY COMMISSIONER DWYER TO APPROVE THE ELK RIVER INDEPENDENCE DAY COMMITTEE DONATION REQUEST IN THE AMOUNT OF $6,000. MOTION CARRIED 7-0. Mike Myer from the American Legion announced an upcoming spaghetti dinner to be held on May 19 from 4-8 with proceeds to be used for the fireworks fund. 8. Marketing Update Mr. Wilfahrt presented the staff report. 9. Announcements There were no announcements. 10. Adjournment There being no other business, President Tveite adjourned the meeting of the Elk River Economic Development Authority at 6:26 p.m. Minutes prepared by Jennifer Johnson. Dan Tveite, President Tina Allard, City Clerk