EDSR 04-15-1998 • CONTINUED MEETING OF THE
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, APRIL 15, 1998
Members Present: President Duitsman, Commissioners Thompson, Farber, Bender,
Dwyer, Gongoll and Holmgren
Members Absent: None
Staff Present: Paul Steinman, Director of Economic Development; Pat Klaers,
City Administrator; Sandra Thackeray, City Clerk
1. Call Meeting To Order
Pursuant to due call and notice thereof, the continued meeting of the April 13,
1998, Economic Development Authority Meeting was reconvened at 5:00 p.m.
on April 15, by President Duitsman.
2. Morrell Tax Increment Financing Request
The April 13, 1998, Economic Development Authority Meeting was continued so
that discussion could be continued on the Morrell Tax Increment Financing issue.
• President Duitsman reviewed the issues that were discussed on April 13. He
stated that Item 3 in Option A seemed to be the main outstanding issue. This
related to the time period for allowing the present Morrell building to be in
operation prior to demolition. President Duitsman indicated that the Morrells
have requested that there be no time limitation for demolishing the existing
Morrell building located on Jackson and School Street. President Duitsman
stated that he felt there should be a definite drop dead date as to when the
present building will be demolished. President Duitsman also indicated that the
EDA requests a landscaping plan and a site plan showing what will be cleaned
up and removed at the existing Morrell site.
Paul Steinman explained that by requiring a minimum assessment agreement as
part of the developers agreement, the Morrells will not be able to contest the
value of the new building to anything below two million dollars until after the
municipal bonds are paid. He also indicated that the 15 percent maximum
subsidy provided is based upon the value of the land and buildings.
Terry Morrell made reference to the fees that the Morrells are required to pay.
He implied that they were being treated unfairly. He specifically mentioned the
surface water management fee that they are required to pay for the "wetland"
portion of their property. The City Administrator informed Terry Morrell that they
are being treated no differently than anyone else in their situation or any
developer who makes a proposal to the city.
Discussion was held regarding the TIF money being tied to the existing site.
• Discussion was also held regarding the type of business the Morrells intend to
have in the existing building. Commissioner Thompson questioned the number
Economic Development Authority Meeting Page 2
April 15, 1998
• of trucks that will be accessing the building on an average day. Larry Morrell
indicated that the number would be approximately 80% less than the present
situation. Commissioner Thompson indicated that he would like to see the
Morrells stay in Elk River and also to clean up the existing site. Commissioner
Dwyer indicated it was important that the current site be cleaned up prior to the
building and property being sold. He indicated that four years should give the
Morrells enough time to sell the property.
Commissioner Bender indicated that $300,000 up front is a good incentive for
the Morrells but feels the present property should be cleaned up and sold as
soon as possible.
Commissioner Holmgren suggested that the existing building be demolished by
2002 leaving an option to negotiate an extension if the building is not sold due
to economic reasons and provided that the Morrells have not violated any
other stipulations of the developers agreement.
The EDA recessed at 5:55 to allow the Morrells to privately discuss the matter.
The EDA reconvened at 6:05 p.m.
The Morrells indicated that they feel they need time to decide whether four
years is an acceptable condition.
COUNCILMEMBER HOLMGREN MOVED THAT THE MORRELLS BE GIVEN $300,000 TAX
INCREMENT UP FRONT PROVIDING THIS NUMBER DOES NOT EXCEED 15% OF THE
• MARKET VALUE OF THE NEW PROJECT; AND THAT THE EXISTING MORRELL SITE
LOCATED AT SCHOOL STREET AND JACKSON AVENUE BE RAZED BY JUNE 2002 WITH
A REVIEW OF THE SITUATION TO BE HELD IN JUNE 2001 ALLOWING THE OPTION TO
REQUEST AN EXTENSION OF THE JUNE 2002 DATE. COMMISSIONER GONGOLL
SECONDED THE MOTION. THE MOTION CARRIED 5-1-1. COMMISSIONER DWYER
ABSTAINED. COMMISSIONER BENDER OPPOSED.
Commissioner Bender indicated he opposed the motion because he felt the city
was generous in offering $300,000 up front and felt the June 2000 drop dead
date for razing the building should be adhered to.
3. Adjournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO
ADJOURN THE EDA MEETING. COMMISSIONER GONGOLL SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at
6:15 p.m..
Respectfully submitted,
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Sandra Thackeray -
City Clerk
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