Loading...
6.1 EDSR 04-21-2014 thi ,�., Request for Action River To Item Number Economic Development Authority 6.1 Agenda Section Meeting Date Prepared by General Business April 21,2014 Brian Beeman, Director of Economic Development Item Description Reviewed by Orluck Industries Forgivable Loan Extension Jeremy Barnhart,Deputy Director, CODD Reviewed by Action Requested By motion, approve a Forgivable Loan extension for Orluck Industries in the amount of$200,000 and recommend to the City Council on same. Background/Discussion On April 8,2013, the EDA and City Council approved a Forgivable Loan for Orluck Industries to help fund a 12,000 sq. ft. expansion that will create six new jobs and induce$1.2 million in private investment. The loan was for$200,000 at 3%interest, 5 year term, 20 year amortization,with the EDA to secure a personal guarantee and subordinate lien position on the building and machinery financed. The loan is to be forgiven upon completion of all the goals and requirements set forth by the Forgivable Loan Policy, and the jobs created as a result of the forgivable loan program are retained for a minimum of one year.The initial expansion project was to be completed in 2014. Due to the Federal Sequestration and the announcement of military cutbacks, Orluck Industries has experienced some contract reductions. This has caused Orluck to reconsider its options and has decided not to peruse the expected 2014 expansion project. Instead, Orluck is requesting that the EDA extend the approved Forgivable Loan to allow the project to begin in 2015.A new letter of commitment will be provided at the meeting. The Department of Employment and Economic Development has confirmed that an extension is permissible. Peter Orluck, the CEO will be present to answer any questions. If the EDA considers an extension beyond 2015, DEED has requested that they be notified before proceeding. Financial Impact The Forgivable Loan fund balance is $311,155.13,with$111,155.13 allocated to Sportech. The financial impact of approving the loan extension would be $200,000 with the applicant paying all legal and filing fees at closing. This would close out the account in 2015 as requested by DEED. Attachments • March 29,2013 EDA Finance Committee Minutes,April 8, 2013 EDA Packet, &May 6, 2013 City Council Minutes for Orluck Industries Forgivable Loan r ® w E a E 1 1 1 NATURE MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY,APRIL 8, 2013 Members Present: President Tveite,Commissioners Burandt,Dwyer,Motin,Westgaard,and Wilson Members Absent: Commissioner Provo Staff Present: Community Operations and Development Director Suzanne Fischer, 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 WESTGAARD AND SECONDED BY COMMISSIONER WILSON TO APPROVE THE APRIL 8,2013,EDA AGENDA. MOTION CARRIED 6-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER DWYER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. MARCH 11,2013,MINUTES. 3.2. CHECK REGISTER AS OUTLINED IN THE STAFF REPORT. 3.3. BALANCE SHEET AS OUTLINED IN THE STAFF REPORT. MOTION CARRIED 6-0. 4. Open Forum No one was present for open forum. 5. Consider Microloan Application from Blue Egg Bakery Mr.Wilfahrt presented his staff report. Commissioner Wilson questioned what the loan will be used for. Bruce DeWitt,applicant stated that the loan will be used for an expansion project into 707 Main Street where they will offer cakes,fudge,and candy. He stated some funding will be used to make the building compliant with MN Depalunent of Health and Minnesota Department of Agriculture standards and for facade improvements inside and out. Economic Development Authority Minutes Page 2 April 8,2013 MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER BURANDT TO APPROVE A DOWNTOWN REVITALIZATION MICROLOAN FOR BLUE EGG MARKET WITH THE FOLLOWING TERMS AND CONDITIONS: • $74,500 AT 2%INTEREST,10-YEAR TERM,10-YEAR AMORITIZATION. • EDA TO SECURE PERSONAL GUARANTEE. • EDA TO OBTAIN SECOND LIEN POSITION ON 707 MAIN STREET AND 713 MAIN STREET AND FIRST POSITION ON ALL EQUIPMENT. MOTION CARRIED 6-0. 6. Consider Forgivable Loan Application from Alliance Machine Mr.Wilfahrt presented his staff report. MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER MOTIN TO RECOMMEND APPROVAL OF THE FORGIVABLE LOAN APPLICATION IN THE AMOUNT OF$200,000 FOR ALLIANCE MACHINE TO THE CITY COUNCIL. MOTION CARRIED 6-0. 7. Consider Forgivable Loan Application from Orluck Industries Mr.Wilfahrt presented his staff report. MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER WESTGAARD TO RECOMMEND APPROVAL OF THE FORGIVABLE LOAN APPLICATION IN THE AMOUNT OF$200,000 FOR ORLUCK INDUSTRIES TO THE CITY COUNCIL. MOTION CARRIED 6-0. 8. Consider Forgivable Loan Application from Preferred Powder Coating Mr.Wilfahrt presented his staff report. MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER WILSON TO RECOMMEND APPROVAL OF THE FORGIVABLE LOAN APPLICATION IN THE AMOUNT OF$200,000 FOR PREFERRED POWDER COATING TO THE CITY COUNCIL. MOTION CARRIED 6-0. 9. Authorize Write-off of Nicole's Salon Microloan Mr.Wilfahrt presented his staff report. MOVED BY COMMISSIONER WESTGAARD AND SECONDED BY COMMISSIONER DWYER TO ADOPT RESOLUTION 13-03 AUTHORIZING THE WRITE-OFF OF THE OUTSTANDING LOAN BALANCE OF$6,894.28 OWED BY THE FORMER NICOLE'S FINISHING TOUCH SALON TO THE CITY OF ELK RIVER'S DOWNTOWN BUSINESS REVITALIZATION MICRO LOAN FUND.MOTION CARRIED 6-0. Economic Development Authority Minutes Page 3 April 8,2013 President Tveite stated in the future he would like to see write-offs come before the EDA sooner if there is no way to collect the money. 10. Freeport Water Tower—Powered by Nature Logo Funding Request Mr.Wilfahrt presented his staff report. He added that funding is available in the EDA Marketing Budget. Commissioner Westgaard stated that the city logo typically appears larger than the Powered by Nature logo and questioned if size has been discussed. It was noted that the city logo is the primary logo and the Powered by Nature logo should appear subordinate. Mr.Wilfahrt indicated he will review the brand plan and make sure the specifications of the plan are followed. President Tveite questioned why the city is not involved in partnering with the Elk River Municipal Utilities (ERMU) and the EDA on this project. Mr.Wilfahrt indicated that the EDA has been the leader for the branding and there is money in the EDA budget for these type of branding initiatives. Consensus of the EDA was to move forward with the partnership between the EDA and ERMU to paint the Powered by Nature brand on the Freeport water tower. 11. Impact of City Financial Programs Mr.Wilfahrt presented his staff report. 12. Economic Development Director Hire(verbal) Ms. Fischer indicated that the interview committee has identified Brian Beeman as the individual they would like to hire for this position. She stated that Mr.Beeman was the city administrator for five years with the City of Melrose and has strong negotiation and business expansion experience. Commissioner Dwyer questioned the current chain of command as it relates to this position. Ms. Fisher explained that the economic development director will report to the community operations and development deputy director. Commissioner Dwyer expressed concerns with this position's placement in the organizational chart. Commissioner Motin explained that the addition of a community operations and development deputy director only adds one position in the organizational chart.He added that the previous economic development director only reported directly to the city administrator in the absence of a community development director and prior to Ms.Fischer being hired as the community operations and development director. Commissioner Dwyer indicated he still has concerns but is open to seeing how it works. 13. Adjournment There being no other business,President Tveite adjourned the meeting of the Elk River Economic Development Authority at 6:06 p.m. Economic Development Authority Minutes Page 4 April 8,2013 Minutes prepared by Jessica Miller. Dan Tveite,President Tina Allard,City Clerk ').(.*bk. REQUEST FOR ACTION River TO ITEM NUMBER Economic Development Authority 7. AGENDA SECTION MEETING DATE PREPARED BY April 8,2013 Clay Wilfahrt,Assistant Director of Economic Development ITEM DESCRIPTION REVIEWED By Consider Forgivable Loan Application for Orluck Industries Jeremy Barnhart,Deputy Director, Community Operations and Development REVIEWED BY ACTION REQUESTED Consider Forgivable Loan application for Orluck Industries and recommend that City Council approve the Forgivable Loan of$200,000 BACKGROUND/DISCUSSION The attached staff report to the EDA Finance Committee dated March 29,2013,and committee meeting minutes provide background regarding the Forgivable Loan request. The EDA passed the Forgivable Loan guidelines in February and set an initial application period of February 15 through March 15. The program is designed to stimulate private sector investment,help spur new construction, create and retain employment opportunities,and promote the sale of city property. Staff received three applications for the Forgivable Loan during the initial application period. Orluck Industries currently occupies a 25,000 square foot facility in Elk River. The Forgivable Loan would help them fund a 12,000 square foot expansion that will create six new jobs and induce$1.2million in private investment. The Finance Committee recommends the EDA recommend City Council approval of the Forgivable Loan for Orluck Industries with the following terms and conditions: • $200,000 at 3%interest,5 year term,20 year amortization • EDA to secure personal guarantee • EDA to obtain subordinate lien position on building and subordinate lien on machinery financed The loan will be forgiven upon completion of all of the goals and requirements set forth by the Forgivable Loan Policy,and the jobs created as a result of the forgivable loan program are retained for a minimum of one year. In this case,Orluck Industries will need to complete their expansion, create a minimum of six jobs,and retain them for one year. Four of the jobs must be awarded to Low to Moderate Income employees. The Finance Committee also requested that staff determine if the city would become eligible for state grants upon committing the dollars,as well as the ramifications of a situation where the city loaned POIEREI it NATURE dollars and then recouped them due to an applicant failing to fulfill the requirements set forth in the policy. Following a conversation with the Department of Employment and Economic Development, staff determined that the city is eligible to apply for state grants upon committing the funds. Should the money be recouped by the city,there would be no penalty;however,the dollars would need to be committed again in order for the city to apply for state grants. Once the EDA makes a recommendation,the City Council will call a public hearing on April 15 for its May 6 meeting. At the May 6 meeting,the City Council will hold a public hearing and take final action on the loan application. FINANCIAL IMPACT The Forgivable Loan fund balance is $703,679. The financial impact of approving the loan would be $200,000 with the applicant paying all legal and filing fees at closing. ATTACHMENTS • EDA Finance Committee Meeting Minutes dated March 29,2013 • EDA Forgivable Loan Policy and Guidelines • Staff report to EDA Finance Committee re: Forgivable Loan Application dated March 29, 2013 Action Motion by Second by Vote Follow Up N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda\Year2014\4-21-2014\6.1 at 1 EDA 4-8-13 Orluck Forgivable Loan Minutes.docx MEETING OF THE EDA FINANCE COMMITTEE HELD AT THE ELK RIVER CITY HALL FRIDAY, MARCH 29, 2013 Members Present: Chad Vitzthum,Larry Toth,Paul Motin,Nate Ovall,Cliff Lundberg,Dan Tveite Members Absent: None Staff Present: Assistant Director of Economic Development,Clay Wilfahrt, Others Present: Bruce DeWitt,Blue Egg Bakery,Tim Dolan and Annie Deckert,Decklan Group,Peter Orluck,Orluck Industries,Dan Bosshart and Lloyd Peterson,Preferred Powder Coating 1. Call Meeting to Order Assistant Director of Economic Development Clay Wilfahrt called the meeting to order at 7:30am 2. Consider Downtown Revitalization Loan for Blue Egg Market Mr.Wilfahrt reviewed the staff report. Mr. Lundberg asked if the EDA should seek a position on Blue Egg's existing building. Tim Dolan of the Decklan Group who was working with the applicant stated that they would be okay with that. Bruce DeWitt introduced himself and explained about Blue Egg Bakery. They just celebrated their first anniversary. He explained that high end breads and cakes have been selling well which led them to the idea of expanding. The committee discussed the fact that the loan was a 10 year term and direct loan. Mr. Oval stated that the baker equipment lasted a long time The committee was okay with the term and the fact that the loan was direct. The committee liked the fact that the loan was fully amortized. Several members of the committee mentioned that it was good to see the applicants had extensive experience in management and business ownership. MOVED BY MOTIN AND SECONDED BY TVEITE TO RECOMMEND APPROVAL OF THE APPLICATION FOR A DOWNTOWN REVITALIZATION MICROLOAN FOR BLUE EGG BAKERY. MOTION CARRIED 6-0. 3. Consider the Loan Applications for the Forgivable Loan Program—Alliance Machine, Orluck Industries, Preferred Powder Coating Lloyd Peterson and Dan Bosshart of Preferred Powder Coating introduced themselves and explained their business and their plans to move to Elk River. Commissioner Vitzham noted that he is working with the applicants,and that he would abstain from voting. Mr. Tveite stated that the project fit exactly into what the EDA was looking for when they created.the program. MOVED BY LUNDBERG AND SECONDED BY TOTH TO RECOMMEND APPROVAL OF THE APPLICATION BY PREFERRED POWDER COATING FOR A FORGIVABLE LOAN IN THE AMOUNT OF$200,000. MOTION CARRIED 5-0 WITH COMISSIONER VITZHAM ABSTAINING. EDA Finance Committee Minutes Page 2 January,30,2013 Page 2 of 3 Peter Orluck introduced himself and gave an overview of his business and plans for expansion. Mr. Ovall stated that the Bank of Elk River is working with the applicant and he would abstain from voting. Commissioner Toth noted that the business is growing quickly and expressed concern that they may move in the near future. He asked if the EDA had any protection against a business accepting the forgivable loan and then moving. Mr.Wilfahrt stated that under the city's business subsidy policy,any business that accepts a subsidy and moves within five years of accepting that subsidy is subject to repayment and penalties. Mr. Motin expressed concern with the low score on the forgivable loan scoring system. Mr.Wilfahrt stated that the forgivable loan scoring system was designed more to differentiate between applicants than it was to indicate strength of the project. Mr.Wilfahrt added that all three applications received would score very highly on the abatement scoring system,and are comparable to other subsidy projects the EDA has accepted in terms of job creation, taxable value added,and the other measurement criteria. Mr.Vitzham asked if the EDA or city accepted a state grant,would the city or EDA be penalized by the state if someone were to accept a forgivable loan and the applicant failed to go through with their project. Mr.Wilfahrt said that he would check with the state to see what the recourse would be in that event. The committee further recommended that the terms coincide with the terms provided by the bank. MOVED BY TVEITE AND SECONDED BY VITZHAM TO RECOMMEND APPROVAL OF THE REQUEST BY ORLUCK INDUSTRIES FOR A FORGIVABLE LOAN IN THE AMOUNT OF $200,000. MOTION CARRIED 5-0 WITH COMISSIONER OVALL ABSTAINING. Annie Deckert of the Decklan Group informed the committee about Alliance Machine and their proposed expansion. The committee expressed that the scoring sheet may need to be updated to better reflect the strength of the application. Mr.Tveite stated that supporting the Alliance project is an excellent example of how a city can support an existing business to encourage economic growth. Mr. Ovall stated that the Bank of Elk River is working with the applicant and he would abstain from voting. MOVED BY TVEITE AND SECONDED BY MOTIN TO RECOMMEND APPROVAL OF THE REQUEST BY ALLIANCE MACHINE FOR A FORGIVABLE LOAN IN THE AMOUNT OF $200,000. MOTION CARRIED 5-0 WITH COMISSIONER OVALL ABSTAINING. N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda\Year2014\4-21-2014\6.1 at 1 Orluck Finance Committee Minutes 3.29.2013.doc EDA Finance Committee Minutes Page 3 January,30,2013 Page 3 of 3 4. Consider Revisions to the Forgivable Loan Program Mr. Wilfahrt reviewed the staff report. He noted that there are several businesses that could utilize the forgivable loan if the requirement that businesses be in the manufacturing,high-tech,and industrial sectors was removed. Mr.Vitzham asked whether or not there was a provision to prevent businesses from leaving after receiving the dollars,particularly in leased situations. Mr.Wilfahrt stated that there is a requirement that they stay in Elk River for five years following the business subsidy, otherwise they would be subject to repayment and penalties. Mr. Motin and Mr.Tveite stated concern with removing the restriction from the program after only one round of applicants. Mr.Vitzham echoed the concern and stated that he believed the EDA should keep the program as is The committee came to a consensus that no changes should be made to the policy at this time 4. Closing The EDA Finance Committee meeting ended at 9:08 a.m. Respectfully submitted by, Clay Wilfahrt Assistant Director of Economic Development N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda\Year2014\4-2I-2014\6.1 at 1 Orluck Finance Committee Minutes 3.29.2013.doc MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, MAY 6, 2013 Members Present: Mayor Dietz,Councilmembers Wilson,Burandt,Westgaard,and Motin Members Absent: None Staff Present: City Administrator Calvin Portner,Finance Director Tim Simon, Community Operations and Development Director Suzanne Fischer, Community Operations and Development Deputy Director Jeremy Barnhart,Environmental Administrator Rebecca Haug,Assistant Economic Development Director Clay Wilfahrt,Economic Development Director Brian Beeman,City Attorney Peter Beck, and City Clerk Tina Allard 1. Call Meeting To Order Pursuant to due call and notice thereof,the meeting of the Elk River City Council was called to order at 6:45 p.m.by Mayor Dietz. 2. Pledge of Allegiance The Pledge of Allegiance was recited. 3. Consider Council Agenda MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE THE AGENDA.MOTION CARRIED 5-0. 4. Consent Agenda MOVED BY COUNCILMEMBER WILSON AND SECONDED BY COUNCILMEMBER WESTGAARD TO APPROVE THE FOLLOWING CONSENT AGENDA: 4.1 MINUTES • APRIL 8,2013 WORKSESSION • APRIL 15,2013 REGULAR • APRIL 15,2013 CLOSED • APRIL 29,2013 BOARD OF APPEAL AND EQUALIZATION 4.2 CHECK REGISTER AS OUTLINED IN THE STAFF REPORT. 4.3 ORDINANCE 13-10 OF THE CITY OF ELK RIVER AMENDING SECTION 2-52,REGULAR MEETINGS,OF THE ELK RIVER, MINNESOTA,CITY CODE. RESOLUTION 13-24 OF THE CITY OF ELK RIVER AMENDING AND AFFIRMING THE TIME FOR CITY COUNCIL MEETINGS. 4.4 MASSAGE ESTABLISHMENT LICENSE FOR ANNA MARIE'S SALON, LLC D.B.A MICHAEL STEVENS SALON AND SPA,19262 FREEPORT STREET NW,VALID UNTIL DECEMBER 31,2013. City Council Minutes Page 2 May 6,2013 MASSAGE THERAPIST LICENSES TO ANGELA PASBRIG AND SEAN BEGIN TO WORK AT MICHAEL STEVENS SALON AND SPA,VALID UNTIL DECEMBER 31,2013. 4.5 RESOLUTION 13-25 ACKNOWLEDGING ACOUSTIC PANELS DONATION FOR CITY-OWNED YMCA FACILITY. 4.6 PROCLAMATION RECOGNIZING THE MERITS OF BUDDY POPPIES. 4.7 RESOLUTION 13-26 AUTHORIZING A TRANSFER FROM THE GENERAL FUND TO THE CAPITAL OUTLAY RESERVE FUND. 4.8 2013 EQUIPMENT PURCHASES AS OUTLINED IN THE STAFF REPORT. 4.9 BILLBOARD CONTRACT WITH LAMAR COMPANIES. MOTION CARRIED 5-0. 5. Open Forum Brent Cotton, 19640 Proctor Road-Asked the Council to review the pool ordinance and suggested looking at the City of Rogers for an example.He explained the pool technology he currently is utilizing and the need for the ordinance amendment. Mayor Dietz directed staff to review the matter and bring it back to Council for further consideration on June 3. Mark Leadens,22735 147th Street- (Owner of Nature's Dry Cleaners) Stated he doesn't understand how Elk River calculates Sewer and Water Access Charges (SAC and WAC) and would like an explanation for how these fees are set.He stated he is being required to pay $133,000,which makes it difficult for a small business to get started in Elk River. He compared fees with other communities in the Met Council and noted Elk River is not a Met Council city but the fees are higher. Mr.Leadens further stated the Elk River Municipal Utilities (ERMU)installed utilities on his property without his authorization. He stated he has a Torrens property and there is no easement that allows ERMU the right to put these utilities on this property. Mr.Barnhart reiterated the question regarding how the city calculates the number of SAC units.He stated the City Council adopted an ordinance that created a system(ratio) for calculating units. He stated the city follows the system created by the Met Council for the per unit calculation. He stated the City Council reviews the SAC rate each year and that the rate is based on demand and growth projections and the need to upgrade the wastewater treatment system.He stated the fee is based on a calculation that is reviewed periodically. Mayor Dietz asked Mr.Leadens if he had discussions with staff regarding how his units were calculated. Mr.Leadens stated yes.He stated the Met Council charges $2,435 per unit and he questioned why Elk River is charging$4,370 per unit for a SAC fee. He further questioned why the city charges$3,100 for a WAC unit when the Met Council doesn't charge any fee. He stated he has 15 WAC units. City Council Minutes Page 3 May 6,2013 Councilmember Westgaard stated the Council needs more background information in order to complete a review and response to these issues and he suggested a discussion at a worksession meeting. Mr.Barnhart clarified that there are three issues to review: 1. The easement,which needs to be addressed between Elk River Municipal Utilities and the property owner. 2. A comparison of the rates. He stated the city did complete a rate study in approximately 2006 but the challenge with these studies is that each city's wastewater infrastructure systems are different and have different cost amounts; therefore it can be difficult to compare rates. 3. The ratios can be compared. He stated there may be an opportunity to look at the ratio.He stated the city could look at the national model to see if there has been a change in the turns per day ratio. Attorney Beck stated he has looked at the easement issue,and preliminarily Mr.Leadens may be correct. Councilmember Motin stated this issue can't be addressed during the open forum because Council needs more information in order to make a decision.He further noted that the Met Council may not charge for water because they may not regulate water. Council consensus was to do a history of the SAC/WAC charges over the last 10-15 years along with a comparison of some neighboring cities. Attorney Beck explained that the Met Council does not provide water and therefore does not charge WAC fees.He further stated fees are based on usage. He stated the rates are based on the volume of the use. Mr.Leadens questioned the up-front fees. It was noted these fees are used to pay for the infrastructure of the systems, such as for trunk mains and water towers. Mr.Portner stated staff will bring this discussion back to the next worksession.He stated background information will be brought forward for both the SAC and WAC fees Walter Cleath, 17241 Yale Street-Asked about Item 8.2 and its removal from the agenda. Mr. Barnhart stated the request was redrawn by a neighbor who was requesting to do a lot split. 6. Awards/Recognitions/Presentations There were no awards/recognitions/presentations. 7.1 Forgivable Loan Applications Mr.Wilfahrt presented the staff report for all three items. City Council Minutes Page 4 May 6,2013 A. Preferred Powder Coating Mayor Dietz opened the public hearing for all three of these items.There being no one to speak to these items,Mayor Dietz closed the public hearing. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER WILSON TO APPROVE THE FORGIVABLE LOAN FOR PREFERRED POWDER COATING'S CONSTRUCTION PROJECT. MOTION CARRIED 5-0. B. Alliance Machine MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY COUNCILMEMBER BURANDT TO APPROVE THE FORGIVABLE LOAN FOR ALLIANCE MACHINE'S CONSTRUCTION PROJECT.MOTION CARRIED 5-0. C. Orluck Industries MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER WILSON TO APPROVE THE FORGIVABLE LOAN FOR ORLUCK INDUSTRIES'CONSTRUCTION PROJECT. MOTION CARRIED 5-0. 8.1 Hire Consultant to Complete 2013 Comprehensive Plan Update Mr.Barnhart presented the staff report. Councilmember Motin expressed the following: 1. Will the plan start from the beginning or from the last Comprehensive Plan update? 2. How much with the full City Council get to review the progress of the Plan? 3. Will a new housing study be completed and what will the relationship be to the visions/goals? Mr.Barnhart stated the current Comprehensive Plan update will start from the 2004 Plan. He stated WSB is reviewing the vision/goals. He further stated there will be a review section by section once the foundation is laid. Mr. Barnhart stated the proposal includes two reviews to the Planning Commission and two to the City Council. He stated the existing housing study will be utilised. Council consensus was there should be more check in with the Council in regards to the progress of the Citizen Action Committee and Mayor Dietz suggested a monthly update. MOVED BY COUNCILMEMBER WILSON AND SECONDED BY COUNCILMEMBER WESTGAARD TO HIRE WSB AND ASSOCIATES TO COMPLETE THE 2013 COMPREHENSIVE PLAN UPDATE.MOTION CARRIED 5-0. Council consensus was to appoint Councilmembers Burandt and Motin to serve on the Citizen Advisory Committee. City Council Minutes Page 5 May 6,2013 8.2 Authorization to Initiate Rezoning for Yale Street Area This item was removed from the agenda. 8.3 Elk River Landfill Compliance Boundary and MPCA Permit Ms. Haug presented the staff report for this item. Mayor Dietz questioned if the 1992 Agreement allows the Elk River Landfill to utilize the city trail property for the compliance boundary. Attorney Beck stated the agreement doesn't grant an easement for the compliance boundary. He further stated it only grants a license for the landfill to come onto city property in order to move equipment and put in monitoring wells. Councilmember Westgaard stated he would consider a Council signed letter to the MPCA expressing their concerns and he might be able to attend the hearing if knows the schedule. He further suggested to continue monitoring what is going on with the waste. Council consensus was to send a letter to the MPCA expressing the city's concerns Mayor Dietz suggested contacting area citizens to inform them of the situation and to give them an opportunity to speak at the MPCA hearing. Councilmember Motin questioned if there would be a responsibility to the landfill to restore the area depending on the type of remediation work needed. Ms.Haug stated this is a staff concern and that it may be a situation where the trail can't be restored and would be inaccessible. She stated there are other concerns regarding prolonged contamination. 8.4 Discuss Worksession Agendas Mr.Portner presented the staff report. He noted quiet zones would be moved to the May 20 meeting but the SAC/WAC discussion would be added to the May 13 worksession. 9. Announcements There were no announcements. The Council recessed at 7:43 p.m.in order to go into worksession. The Council reconvened at 7:53 p.m. 10.1 Casey's Concept Review Mr.Barnhart presented the staff report.He reviewed the access points and the shared access with Crossing Church. Mayor Dietz questioned police concerns with this location. City Council Minutes Page 6 May 6,2013 Mr.Barnhart stated the Chief had concerns with the safety of kids crossing School Street to access the store. Councilmember Westgaard stated he is not sure he likes the idea of this corner being the location for a gas station.He reviewed the past ownership history of the property and stated he would like to hold out to see if they can get business at this location that falls under the current zoning for the property. Councilmember Motin concurred and further expressed concern with kids crossing the street at all hours of the day. He also noted there could be higher safety risks with peak time hours and school bus traffic. Councilmember Wilson agreed. Brian DuPrers,applicant-Stated his company has been looking for sites in Elk River but has been having trouble finding a location due to things such as access issues with the county roads. He further thanked Council for their consideration. Mayor Dietz concurred with rest of the Council.He further stated he appreciates the Casey stores and would like to see them in Elk River but is hesitant with this location. 10.2 Council Liaison Role Mr.Portner presented the staff report.He noted the policy allows for participation and open discussion but doesn't allow advocacy for personal opinions.He stated the Council could set term limits stating they can't serve more than two consecutuve years with a specific commission.He stated the advantage to this would be when new Councilmembers begin their terms,they get a chance to be considered for the various commissions but the con may be that a Councilmember may not care about the particular commission they are serving on. Councilmember Motin stated he is still not comfortable with allowing input by a Councilmember.He stated if they are stating a position,they are advocating,but sharing a personal opinion.He stated it is not intended that a liaison become an expert in the commission's field but to be a go-between. He stated he liked the idea of rotating because it gives an opportunity for a fresh review. Mayor Dietz stated he likes the policy as presented. Councilmember Westgaard stated he is not sure term limits will prevent opinions but they may be good for getting a new look.He stated if there are situations that need to be addressed they need to be brought out into the open and discussed in a professional manner. Councilmember Wilson stated he is agreeable to the policy as presented but he is unsure about term lengths. Council consensus was to approve the policy in the staff report, send it to commissions for comment,and then bring it back for final Council approval. Councilmember Motin stated he would like the commissions to hear about the term limits so they can provide feedback on them also. City Council Minutes Page 7 May 6,2013 Council consensus was for the city administrator to present the policy to the various commissions for comments and feedback. 11. Adjournment There being no further business,Mayor Dietz adjourned the meeting of the Elk River City Council at 8:24 p.m. John J.Dietz,Mayor Tina Allard,City Clerk