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5.0. 6.0. 7.0. EDSR 10-12-1998 .(.r A ity of ,/ llkRiver MEMORANDUM TO: Economic Development Authority PFROM: Paul T. Steinman, Director of Economic �" Development DATE: October 12, 1998 SUBJECT: Agenda Memo 5. Presentation -Purchase of the Roy and Ruth Brown Property Attached to this memo is a letter from an attorney for Roy and Ruth Brown regarding a proposed purchase of the Brown property by the city/EDA. The purpose of this presentation to the EDA is to provide general information regarding a proposed purchase of the Brown property which lies along the newly proposed Tyler Street - east of • 169. 6. Presentation - Central Minnesota Initiative Fund -Kathy Gaalswyk The purpose of this presentation is to hear a request by the Central Minnesota Initiative Fund for a contribution. After discussion of such request, staff proposes to bring a recommendation back to the EDA at its November 9 meeting regarding this issue. 7. Consider Resolution 98- Requesting Council to Call Public Hearing to Modify Budget in TIF District No. 9 The purpose of this agenda item is to begin the public hearing process as required by state statute to modify the budget in TIF District No. 9 (Tescom). The purpose of this modification is to allow the possibility of using excess tax increment in this District to complete various minor public improvements in the Industrial Park. S This budget modification will not affect the number of years of the District - it is planned to decertify on December 31, 1998. 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD&Phone: (612) 441-7420 • Fax: (612)441-7425 EDA Agenda Memo October 12, 1998 Page 2 • Recommendation Staff recommends approval of Resolution 98- requesting the City Council to call a public hearing on December 21, 1998, at approximately 6 p.m., to modify the budget in Tax Increment District No. 9. \\elkriver\sys\shrdoc\eda\meetings\agdamm.doc • • RESOLUTION 98 - ECONOMIC DEVELOPMENT AUTHORITY CITY OF ELK RIVER COUNTY OF SHERBURNE STATE OF MINNESOTA A RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF ELK RIVER TO CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE BUDGET IN THE PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 9 BE IT RESOLVED by the Board of Commissioners (the "Board") of the Economic Development Authority of the City of Elk River, Minnesota (the "EDA"), as follows: WHEREAS, the City Council ("the Council") of the City of Elk River, Minnesota (the "City") established Municipal Development District No. 1 pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and, WHEREAS, the EDA created Tax Increment Financing District No. 9 for the • purpose of encouraging economic development; and, WHEREAS, the EDA has examined the budget in the Tax Increment Plan for Tax Increment District No. 9 and determined it to be in the best interest of the EDA to modify such budget pursuant to and in accordance with Minnesota Statutes, Sections 469.090 through 469.1081 and Sections 469.174 through 469.179, inclusive, as amended. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on December 21, 1998, to consider the proposed budget modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 9 and cause notice of said public hearing to be given as required by law. 2. The Executive Director of the EDA is hereby directed to submit a copy of the budget modification to the Council for its approval. 3. The EDA directs the Executive Director to transmit the budget modification to the Sherburne County and Independent School District No. 728 in which Tax Increment Financing District No. 9 is located not later than November 20, 1998. S • Passed and adopted by the Board this 12th day of October, 1998. Henry A. Duitsman, Mayor ATTEST: Sandra A. Peine, City Clerk • • III THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AND THE ELK RIVER CITY COUNCIL FOR THE MODIFICATION OF THE BUDGET IN TAX INCREMENT DISTRICT NO. 9 (TESCOM) (an economic development district) Schedule October 12, 1998 EDA requests City Council to call for a public hearing to be held on December 21, 1998 to modify the budget in Tax Increment Financing District No. 9. October 12, 1998 City Council calls for a public hearing to be held on December 21, 1998 to modify the budget in Tax Increment Financing District No. 9. November 10, 1998 Complete budget modification. November 10, 1998 Budget modification forwarded to School District and County Board (at least 30 days prior to public hearing). III November 24, 1998 Planning Commission reviews budget modification. December 2, 1998 Send public hearing notice and map to local paper. December 9, 1998 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to public hearing). December 14, 1998 EDA approves budget modification. December 21, 1998 City Council holds public hearing on modification to the budget in Tax Increment Financing District No. 9 and passes resolution approving such budget modification. December 22, 1998 Send budget modification to County/State. TI9mod • VEST & HOWSE, P.A. Attorneys at Law III360 Brookdale Corporate Center 6300 Shingle Creek Parkway East Brooklyn Center, Minnesota 55430 Phone: 612-566-3720 FAX: 612-566-3722 Jeffrey K. Vest G. Craig Howse Jeffrey C. Thompson October 1, 1998 Mr. Paul Steinman, Director Elk River Economic Development Authority P.O. Box 490 Elk River, Minnesota 55330 Re: Roy and Ruth Brown 10815 - 175th Avenue N.W. Elk River, Minnesota Our File No.: C1820-01 Dear Mr. Steinman: IIIWe have been in negotiations with the City for the purchase of the Browns' property in connection with the Tyler Street improvements in the eastern corridor of the City. Our negotiations have included the Mayor, the City Administrator, the City Engineer and Evergreen Land Services. The Mayor has suggested that we include the EDA in our negotiations. For that reason, we would appreciate an opportunity to speak to the EDA at its upcoming meeting. The Mayor has advised that the meeting is scheduled for October 12th. I anticipate making a presentation to the EDA of the situation faced by the Browns and the efforts made to date to reach an agreement for the purchase of the Browns' property. As you may know, the City has rezoned the property to business park and has expressed a definite interest in acquiring the property. There are many reasons that we feel that this is appropriate and agree with the City's stated intentions. We will cover these in more detail at the upcoming meeting. Thank you for including us on the agenda. We look forward to seeing you on October 12th at 6:00 p.m. t yo s Ii IIIaig Ho e GCH:law cc: Leroy & Ruth Brown = CENTRAL MINNESOTA INITIATIVE FUND •A Four attrni for Today, A Vision for'Tomorrow .3_,"wf` �;++�mz' +"�.R sssi•s^...,.x���:��*a� �'X: 3;_.w_.r.' .ca,� r,aYwcu�«: .,..s'%s..v_.. �,.. .., August 11, 1998 Patrick Klaers,City Administrator City of Elk River/Elk River EDA 13065 Orono Pkwy PO Box 490 Elk River,MN 55330-0490 Dear Mr. Klaers: The Central Minnesota Initiative Fund would like to thank the City of Elk River for its contribution of$5,000 during fiscal 1998. This represents 25 percent of the three-year request of$19,929 that we are requesting of the City. We are pleased to submit this fiscal year 1999 funding request to the City of Elk River, which seeks the balance of the three-year pledge request,totaling$14,929. This • represents a contribution equivalent to$1.50 per capita,which is the level of support we are requesting from all cities in our service area. Payment of the pledge could be made over the next two years (1999 and 2000)or it could be paid in full through a one-time contribution. Contributions received for this campaign will be matched dollar-for-dollar by The McKnight Foundation. Created as a nonprofit,regional foundation in 1986 with the tremendous support of The McKnight Foundation,the Central Minnesota Initiative Fund serves the 14 counties of Central Minnesota. Our mission is to improve the quality of life for residents,families and communities in Central Minnesota through comprehensive and integrated community development. Key program areas indude: Economic Development-increasing business creation and expansion through business loans; funding programs that eliminate barriers to economic development such as work force and housing development. Leadership Development-developing the leadership capacity of individual communities to prepare and implement an integrated community development plan. In addition,we will increase the leadership capacity of multi-community dusters to manage change and growth. Innovative Programming-providing funding for innovative programs that address emerging needs,such as telecommunications programs,helping communities • sustain themselves,nonviolence initiatives,etc. 70 SE First Avenue • Little Falls, MN 56345 • (320) 632-9255 • Fax (320) 632-9258 �X hY#=t" q.� k7 nom"'s a sa=t'" - T^,y,R d. Yi, �s' �,. m- 41:3' ''-3 r+ '�is « 5y a q3„ ,a, . q #`„�.„* �+. ea` a�z o=' ,�`' fit;�. r. ,ti. �`�yn CENTRAL MINNESOTA INITIATIVE FUND �3 t♦'lo�� vs �{ x a p r otUsy3 55 '. 4!";;.11*:,* ,; ` e ,u ' kP ��s+3:N, a'2 „y„�e� ', a2'r3:'� y .� ' k: x:, >+rs.�:' ..�. ir �?a. Mission: To improve the quality of life for residents, families, and communities in Central Minnesota through comprehensive and integrated community development. Five Year Strategic Direction: To invest in well planned collaborative community development endeavors that improve the economic vitality and overall health of communities while increasing the asset base of the Fund. Service Area: The fourteen county area of: Benton, Cass, Chisago, Crow Wing, Isanti, Kanabec, Mille Lacs, Morrison, Pine, Sherburne, Stearns, Todd, Wadena and Wright which includes 160 communities. Activities: • Gap lending to assist new and expanding businesses. • Grants to community and non-profit groups for community and economic development activities. • Leadership training to build the capacity of communities to address change. • Public education regarding regional needs and opportunities such as housing, work • force, planning, economic development, etc. • Fundraising programs to support the Fund, increase the level of philanthropy in Central Minnesota, and to educate residents about philanthropy. History: The Initiative Fund was established in 1986 by The McKnight Foundation to address the human and economic needs in Central Minnesota. It is one of six Funds serving greater Minnesota. It is an independent, nonprofit philanthropic organization organized as a 501(c)(3). Since inception, the Initiative Fund has: • Made 1,143 grants totaling $8.9 million. • Made 490 loans totaling $9.9 million. • Leveraged $62 million in private investment. • Created or retained 4,760 jobs. • Trained 431 community leaders. If you have questions about the Initiative Fund's programs, or would like to be placed on the mailing list to receive our newsletter and fall program announcements, contact: Central Minnesota Initiative Fund 70 SE First Avenue Little Falls, MN 56345 320/632-9255 (phone) 320/632-9258 (fax) Kathy Gaalswyk, Executive Director 7/98 I CENTRAL MINNESOTA INTITIATIVE FUND PROJECTS FUNDED IN SHERBURNE COUNTY (through 6/30/98) • GRANTS AWARDED ORGANIZATION NAME PROJECT TITLE FISCAL YEAR AMOUNT 2001 Arts Alliance * Arts Festival 1998 $1,500 Big Brothers/Big Sisters Sherburne County Expansion Project 1996 10,000 Big Brothers/Big Sisters Sherburne County Expansion Project 1997 5,000 Big Brothers/Big Sisters * Eastern Sherburne County Branch Office 1997 2,000 Big Lake School District HELPS 1995 2,500 Big Lake School District Focus Group 1997 10,000 Central MN Mental Health Grants Community Response to Youth Stress 1988 3,000 Child Care Mini Grants Sixteen Individual Awards 1991 2,563 City of Becker Community Planning 1991 1,000 City of Becker Senior Housing Study 1998 1,000 City of Big Lake Area Community Planning/Leadership Dev. 1996 2,500 City of Big Lake Implementing Community Vision 1997 10,000 City of Elk River Wilderness Trail 1989 5,000 City of Elk River* Education Officer Project 1997 4,000 City of Elk River* Elk River Heritage Festival 1997 1,000 City of Elk River/Chamber of Commerce * Leadership of Elk River 1995 1,000 City of Rogers* Senior Housing Study 1997 2,000 City of Zimmerman Community Planning 1988 1,000 Ci immerman Creating A Healthy Sustainable Community 1997 10,000 Elk iver Area Arts Council* Strings for Youth Programs 1994 1,000 Elk River Area Chamber of Commerce Leadership Elk River 1998 1,500 Elk River Area Citizens League* Arts in Building a Healthy Community 1995 1,500 Elk River Area Citizens League* County Committee Structure Study 1998 1,000 Elk River Community Education Community Volunteer Network 1992 15,000 Elk River Community Theatre* My Fair Lady 1996 2,500 Elk River Leadership Council * Area Youth Salute 1996 1,000 Elk River School District Sherburne County Violence Prevention Activity 1997 8,000 Elk River School District* VandenBerge Community Center 1998 3,000 Elk River Youth Initiatives* Youth Initiatives Mentoring 1998 3,400 Greater Elk River Task Force Domestic Violence/Advocacy 1990 12,000 Guardian Angels of Elk River,Inc. * Elk River Senior Center/Dining Site 1997 3,000 Guardian Angels of Elk River,Inc. Child Care Center 1998 10,000 Land of Lakes Choirboys,Inc. * Salem Boys Choir Festival 1996 1,900 Parker Elementary School * Software Language Enhancement 1996 699 Rivers of Hope* Youth Violence Prevention 1995 1,500 Rivers of Hope* Community&Youth Advocacy 1996 1,500 Rivers of Hope * Youth Advocacy Program 1996 5,300 Rivers of Hope * Youth Advocacy Program 1998 4,000 Rum River Health Services Rum River Inter-faith Caregivers 1997 5,000 R.W.Handke Magnet Elementary School* Odyssey of the Mind Training Sessions 1998 250 Sal High Improv Troupe* Improv Troupe 1998 2,550 Sh e Natural History From Plow Furrows to Prairies 1994 10,000 1 EXAMPLES OF LOANS AWARDED BUSINESS NAME BUSINESS TYPE FISCAL. YEAR LOAN TYPE ar, Blaine Welding 1994 Expansion reda Savings Bank- Iowa) Darter Plastics, Inc., Becker Plastics Manufacturing 1992 Expansion Diaper Express, Zimmerman Diaper Service 1992 Start-up (First National Bank-Elk River) Freeport Finishing, Zimmerman Finishing 1994 Expansion (Princeton Bank-Princeton) Horn Machine, Elk River Millwork Manufacturing 1989 Start-up (First National Bank- Elk River) Key Pattern,Anoka Pattern Design 1989 Expansion Marketech, Inc., Elk River Electronic Testing Service 1990 Start-up (First National Bank-Elk River Marketech, Inc., Elk River Electronic Testing Service 1996 Expansion (First National Bank-Elk River) M•ni's Pizza, Becker Pizza/Deli 1995 Expansion (Sherburne State Bank-Becker) Pomeroy Tool, Elk River Tooling 1988 Expansion (First National Bank-Elk River) Protector Care,Inc., Elk River Carestair-Half Height Step Asst. 1998 Expansion Rohn Ironworks, Elk River Structural Steel Fabricating 1991 Expansion (First National Bank- Elk River) Sherburne County Insurance, Elk River Insurance Agency 1994 Expansion (The Bank of Elk River) Windmark, Inc., Zimmerman Design/Mfg.Rescue Air Boats 1998 Start-up (Breda Savings Bank-Breda, IA) TOTAL LOANS (17): $498,300 • GRAND TOTAL OF GRANTS & LOANS $799,551 3 CAPACITY FUND CAMPAIGN CITY CONTRIBUTIONS LISTING • June 30,1998 Benton County Morrison County Todd County Foley Lastrup Browerville Rice Little Falls Burtrum Sauk Rapids Motley Eagle Bend Randall Hewitt Cass County Royalton Long Prairie Cass Lake Swanville Staples Lake Shore Pillager Fine County Wadena County Pine River Brook Park Menahga Remer Finlayson Sebeka Walker Henriette Staples Hinckley Verndale Chisago County Kerrick Center City Pine City Wright County North Branch Sandstone Albertville Shafer Cokato Wyoming Sherburne County Howard Lake Becker Maple Lake Crow Wing County Big Lake Monticello Brainerd Elk River Montrose • Breezy Point Zimmerman Rockford Cuyuna South Haven Emily Stearns County Waverly Garrison Belgrade Manhattan Beach Cold Spring Nisswa Eden Valley Pequot Lakes Melrose Riverton Paynesville Pleasant Lake Isanti County Richmond Braham Rockville St.Cloud ICanabec County St.Martin Grasston St.Rosa Mora Sauk Centre Ogilvie Mille Lacs County Isle Mlaca Onamia Pease • Total City Contributions $148,849.50 cltsunucls • • T y .r, T �� QL. a 0%� .� U flee CP lit. 0 -4-) SoC'a� 2pts 1104e0.1004 •1—+ 0 E t = 0 Faith Community • Eo R es r—.� atUtal esou�e Q 1109 pi O�0 * ��� r c�, V 011 xod � 0 CENTRAL MINNESOTA INITIATIVE FUND • SHERBURNE STEERING COMMITTEE Rita Clark-Johnson (IT) 612-441-4547 508 Tipton Ave Elk River, MN 55330 Richard Duggan (W) 612-441-8664 (ext. 16) Marketech, Inc. (H) 612-856-4355 18940 York St NW Elk River, MN 55330-2197 Mary Eberley (W) 612-441-8870 Elk River Insurance Agency (F) 612-441-8871 710 Dodge Ave Elk River, MN 55330 Dave Graning (W) 612-261-4302 • City of Becker (F) 612-261-4411 PO Box 337 Becker, MN 55308-0337 Judi Knutson (W) 612-261-5000 Darter Plastics, Inc. (F) 612-261-5010 PO Box 278 Becker,MN 55308 Don Sherper (H) 612-441-1769 12275 239th Ave NW (F) 612-441-4804 Elk River,MN 55330 George Wallin (W) 612-262-4169 Sherburne Tele-Systems, Inc. 440 N Eagle Lake Rd PO Box 310 Big Lake,MN 55309-0310 •• 0 Capacity Fund Campaign � � h , res ; , You are invited to support the _ _ t i Central Minnesota-Initiative Fund h - by participating in our : , t:.,,, i Capacity Fund Campaign, . ivhich offers the following gift clubs " ij The Legacy Council A planned or deferred-gift ' Benefactor ;. A gift of$10,000 or more liPrincipal ; - A gift of$5,000 to $9,999 . , ,. - Partner 1 III � A gift of$3,000 to $4,999 �' V4,,,% 1 ywE.: ?:''''';::4 •( _ Investor .:',41 A gift o $1,000 to $2,999 - • , Advocate , f =x; A gift of up to $999 . Y - - 7a . t • i • CENTR • L M,3 NNESoTA INLT"I_A !. IV r FLLND Cap1 . acity Fund.Campaign Gzff Card Yes,we want td help;the .- entral Minnesota _ Initiative Fund continue to•fulfill'its mission,by: O Makin g'd�pledge of$ to be' •, ' . paid as follows. 1 by ' yy (Amount)' " (Mo/Day/Pr) ►,r O Malting an"outright'contributton of$ - ' • _Thegift is`enc1 ed =The gtft unll be mailed on . My/Our contribution is designated for.. (°)The Capacity Fund Campaign .. (general endowment and annual support) 0 m (please- '--y) Donor Name If.an Organization,ideptify primary contact: Namefride Work-.77, ork Address(StteeG Cit}'Stag and Zip) Home Address(Street:-City,state,and Zip) r . (H) Phone ."(WI , a r= Signature Date Please make'c payable w: Central Minnesota Initiative Fund 70 SE First Avenue • Little Falls, NIN 56345 (320)632-9255 • .. , : ___. —'- 0