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
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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
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CENTRAL MINNESOTA INITIATIVE FUND
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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
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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 _ _
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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
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� A gift of$3,000 to $4,999 �'
V4,,,% 1
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?:''''';::4 •( _ Investor
.:',41 A gift o $1,000 to $2,999
- • , Advocate ,
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=x; A gift of up to $999 .
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Cap1 . acity Fund.Campaign
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Yes,we want td help;the .-
entral Minnesota
_
Initiative Fund continue to•fulfill'its mission,by:
O Makin g'd�pledge of$ to be' •, '
. paid as follows. 1
by
'
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(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)
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(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 ,
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Signature Date
Please make'c payable w:
Central Minnesota Initiative Fund
70 SE First Avenue • Little Falls, NIN 56345
(320)632-9255
•
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