3.1 EDSR 09-10-2012 ITEM 1 3.1
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 13, 2012
Members Present: President Tveite,Commissioners Dwyer,Gumphrey,Motin,Provo,
Westgaard,and Zerwas
Members Absent: None
Staff Present: City Administrator Cal Portner,Director of Economic Development Annie
Deckert,Assistant Director of Economic Development Clay Wilfahrt,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 5:40 p.m. by President Tveite.
2. Consider Agenda
MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY
COMMISSIONER DWYER TO APPROVE THE AUGUST 13,2012 EDA
AGENDA. MOTION CARRIED 7-0.
1. Consider Consent Agenda
MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY
COMMISSIONER ZERWAS TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1 JUNE 11,2012 REGULAR MEETING MINUTES
3.2 CHECK REGISTER
3.3 BALANCE SHEET
3.4 REVENUE/EXPENDITURE REPORT
MOTION CARRIED 7-0.
4. Open Forum
No one was present for open forum.
5. Recognition of Sandhill Photography Club/Powered by Nature Photography Contest
Winners
Clay Wilfahrt thanked the Star News and the Sandhill Photography Club for partnering with
the EDA in this event.
Economic Development Authority Minutes Page 2
August 13,2012
Jay Grammond,representing Sandhill Photography Club,provided background information
on the club. He stated that there were 13 photo submissions for the contest and explained
the scoring criteria. The winners were announced and were photos taken by Jim Boyle of
the Star News. The winners and prizes were as follows:
1st Place—Denise Lanthier,$100 in Chamber Bucks
2nd Place—Wayne Matteson,$50 in Chamber Bucks
3rd Place—Jennifer Wagner,$25 in Chamber Bucks
President Tveite expressed thanks on behalf of the EDA to the Star News and Sandhill
Photography Club.
6. Consider Micro Loan Application—P.S...Dance Studio
Ms. Deckert stated that the Energy Efficiency Improvements Micro Loan Program was
created in April 2011. The PS Dance Studio application is the first to request the loan. She
explained that Ms. Sitts has been in business in Elk River for 15 years. Ms. Deckert
explained that the move to 251 8th Street NW will save Ms. Sitts approximately$1,800 per
month in lease costs. She has been working with Tom Stagstetter of Elk River Municipal
Utilities on options to save energy and reduce utility costs. The new lighting proposed will
save nearly$2,000 per year in utility costs.
Ms.Deckert explained the terms of the loan. President Tveite stated that the property
owner is not willing to allow the EDA to obtain a first position on the mortgage;however,
the EDA will have second position. He explained that the loan is similar to a line of credit,
in that the EDA will pay the bills for the energy improvements as they come in. Ms.
Deckert stated that this is the first loan of this type and future loans could be structured
differently.
Commissioner Westgaard stated he would like to disclose that the owner of the property is a
brother-in-law;however,since he has no financial interest in the property,he did not feel
there was a conflict of interest.
MOTION BY COMMISSIONER ZERWAS AND SECONDED BY
COMMISSIONER MOTION TO APPROVE THE ENERGY EFFICIENCY
LOAN REQUEST FOR PS DANCE STUDIO WITH THE FOLLOWING
TERMS AND CONDITIONS:
• UP TO $30,000 AT 3% INTEREST, 7-YEAR AMORTIZATION/5-YEAR
BALLOON
• MOTION SENSORS SHALL BE INSTALLED FOR LIGHTING
• EDA TO USE COMMERCIALLY REASONABLE EFFORTS TO OBTAIN
A CLEAN SECURITY LOAN POSITION
• EDA TO OBTAIN A PERSONAL AND CORPORATE GUARANTEE
MOTION CARRIED 7-0.
7. Consider 2013 EDA Budget and Resolution Establishing Tax Levy
Economic Development Authority Minutes Page 3
August 13,2012
Ms. Deckert reviewed the 2013 EDA Budget Detail sheet,highlighting changes from the
2012 budget. She noted that the new Economic Development website will not go live until
March 2013.
Mr.Wilfahrt reviewed the 2013 EDA Marketing Budget and Workplan,as detailed in his
memo the EDA dated August 13th. Mr.Wilfahrt noted that all future marketing will
promote the brand plan.
Commissioner Provo stated that he was impressed with the publicity in the newspaper
regarding the data centers. He complemented the Economic Development staff on their
hard work in bringing the data centers to Elk River.
MOTION BY COMMISSIONER ZERWAS AND SECONDED BY
COMMISSIONER DWYER TO APPROVE THE 2013 EDA BUDGET AS
PRESENTED. MOTION CARRIED 7-0.
MOTION BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER WESTGAARD TO APPROVE RESOLUTION 12-01,
ESTABLISHING THE 2013 TAX LEVY FOR THE ELK RIVER ECONOMIC
DEVELOPMENT AUTHORITY. MOTION CARRIED 7-0.
8. Consider 2013 Referendum Tax Levy—YMCA Facility
Finance Director Tim Simon reviewed the staff report for this item. President Tveite felt it
was important to note that the bonds for this project were issued by public referendum.
MOTION BY COMMISSIONER DWYER AND SECONDED BY
COMMISSIONER WESTGAARD TO APPROVE RESOLUTION 12-02,
ESTABLISHING THE 2013 REFERENDUM TAX LEVY AS APPROVED BY
VOTERES FOR A RECREATIONAL FACILITY TO BE LEASED TO THE
YMCA. MOTION CARRIED 7-0.
9. Announcements
Staff briefly reviewed the following update items for the past month as detailed in the staff
memo:
• ED/Environmental business education event to be held August 22nd
• Realtors'Forum held August 8th
• Powered by Nature brand recognition
• Broker's event at Granite Shores
• Midwest Living Magazine photo shoot at Pompeii Pizza on August 13th
10. Adjournment
There being no other business,President Tveite adjourned the meeting of the Elk River
Economic Development Authority at 6:17 p.m.
Economic Development Authority Minutes Page 4
August 13,2012
Minutes prepared Debbie Huebner.
Dan Tveite,President
Tina Allard, City Clerk