05-13-2013 EDA MIN MEETING OF THE ELK RIVER
• ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 13, 2013
Members Present: President Tveite,Commissioners Burandt(5:32 p.m.),Dwyer,Motin,
Westgaard,and Wilson
Members Absent: Commissioner Provo
Staff Present: Community Operations and Development Director Suzanne Fischer,
Community Operations and Development Deputy Director Jeremy
Barnhart,Economic Development Director Brian Beeman,Assistant
Director of Economic Development Clay Wilfahrt,and Executive
Secretary/Deputy City Clerk Jessica Miller
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
S COMMISSIONER DWYER TO APPROVE THE MAY 13,2013,EDA AGENDA.
MOTION CARRIED 5-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER WILSON AND SECONDED BY
COMMISSIONER WESTGAARD TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. APRIL 8,2013,MINUTES.
3.2. CHECK REGISTER AS OUTLINED IN THE STAFF REPORT.
3.3. BALANCE SHEET AS OUTLINED IN THE STAFF REPORT.
3.4. REVENUE/EXPENDITURE SHEET AS OUTLINED IN THE STAFF
REPORT.
3.5. APPOINTMENT OF ECONOMIC DEVELOPMENT DIRECTOR
BRIAN BEEMAN AS EDA EXECUTIVE OFFICER.
MOTION CARRIED 5-0.
4. Open Forum
No one was present for open forum.
Commissioner Burandt arrived 5:32 p.m.
•
Economic Development Authority Minutes Page 2
May 13,2013
5. Pat Briggs Land Request
II/
Mr.Wilfahrt presented his staff report.
Commissioner Motin questioned if there is an option to create a parking lot and rent it back
to the building owner and if the lease goes away,the EDA could market the property
elsewhere. Mr.Wilfahrt stated that staff can look in to that.
Commissioner Dwyer questioned if the EDA could lease the land on a 10-year lease and the
leesee could do lease holder improvements.
Commissioner Tveite stated that if the EDA makes an investment in the property there
should be a reasonable expectation of recouping that money back. He also expressed
concerns with setting a precedent for the future and the message sent to people who have
already invested in the area.
Pat Briggs,Briggs Companies—stated he is the owner of the building and represents tenant
Professional Service Bureau,Inc. (PSB) and building owner BP Sunset LLC.He explained
his offer indicating that PSB instructed him to look in nearby communities if the EDA
cannot make this work.He indicated that if PSB relocates,he will probably lose his building
and lender will more than likely receive building back.
Commissioner Dwyer stated that if PSB is interested in purchasing and expanding the
building,tax abatement may be a good fit.Mr.Briggs stated that PSB will more than likely
absorb the entire building within six to nine months if the parking lot is expanded.
Commissioner Westgaard explained that he is not in favor of accepting the offer. He •
explained that if PSB is interested in purchasing the property,staff could work with them to
pursue funding options.
Commissioner Motin questioned who is the owner of BP Sunset and who is the lender on
the property.Mr.Briggs stated that he is 100%owner of BP Sunset LLC and the building is
financed through The Bank of Elk River. Commissioner Motin stated that he has some
concern that there may be a conflict of interest with two of the EDA commissioners having
an interest in The Bank of Elk River. He added that he would like for PSB to remain in Elk
River and to find something that better suits their building needs.
Mr.Briggs questioned if there would be an objection to installing a parking lot on the
property if he is able to obtain funding for purchase of the property. Commissioner Tveite
indicated that a parking lot is not allowed as a primary use in a commercial area.
Commissioner Motin stated he would like to make this work but the EDA cannot give away
the property. He would consider selling the three acres as long as the lot that remains is
marketable.
Consensus of the EDA was that they are not interested in selling the property for$1 and for
staff to work with the current tenants,PSB, to find a solution or to potentially acquire the
building.Mr.Briggs indicated that he represents PSB on any further communication
regarding the building.
6. Bylaw Amendment
Mr.Wilfahrt presented the staff report. •
Economic Development Authority Minutes Page 3
May 13,2013
MOVED BY COMMISSIONER MOTIN AND SECONDED BY
• COMMISSIONER WILSON TO ADOPT RESOLUTION 13-04 AMENDING
THE BYLAWS TO CHANGE THE DATE OF THE REGULAR MEETING OF
THE ECONOMIC DEVELOPMENT AUTHORITY TO THE THIRD MONDAY
OF EACH MONTH AT 5:30 P.M.MOTION CARRIED 6-0.
7. National Development Council Certification Course
Mr.Beeman presented the staff report.
MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY
COMMISSIONER DWYER TO AUTHORIZE BRIAN BEEMAN,ECONOMIC
DEVELOPMENT DIRECTOR TO:
1. APPROVE A BUDGET AMENDMENT TO TRANSFER FUNDS IN THE
AMOUNT OF$3,500 FROM EDA SALARIES TO SCHOOLS AND
TRAINING;AND
2. AUTHORIZE ECONOMIC DEVELOPMENT DIRECTOR BRIAN
BEEMAN TO ATTEND A NATIONAL DEVELOPMENT COUNCIL
TRAINING COURSE.
MOTION CARRIED 6-0.
8. Forgivable Loans Update
Mr.Wilfahrt provided an update on three forgivable loans approved by the Council last
• month.He explained staff is processing the materials and anticipates June closings.
9. Pledge of Allegiance
Mr.Beeman presented the staff report.
Commissioner Dwyer stated that four EDA members are on the Council and recite the
pledge each meeting. He stated that he does not believe it is necessary. President Tveite
concurred adding that he would like to see any negative repercussions or legal issues
researched prior to considering the pledge.
Commissioner Motin provided background on the Council's discussion on the pledge. He
noted that he is not against reciting the pledge,just that there may be more appropriate
places to recite it.
10. Adjournment
There being no other business,President Tveite adjourned the meeting of the Elk River
Economic Development Authority at 6:35 p.m.
Minutes prepared by Jessica Miller.
a.
Dan Tveite resident
410 Tina Allard,City Cler