EDSR MEMORANDUM 08-11-1997 AK ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
gl IF
MEMORANDUM
TO: Economic Development Authority
F OM: Paul T. Steinman, Director of Economic
Development
DATE: August 7, 1997
SUBJECT: Agenda Memo for August 11, 1997,
Meeting
5. Review/Approve 1998 EDA Budget
Based on a maximum statutory levy of.01813 percent of the city's
taxable market value, it is estimated the EDA will have approximately
$107,000 in revenues in 1998. The proposed 1998 budget is outlined
below and includes a summary of the following items:
Personal services - $52,850 -This line item includes salaries of
the EDA Commissioners ($150/month/commissioner)plus 50
percent of the economic development director's salary, pension,
and benefits. In addition, 15 percent of an administrative
support position and videotaping of EDA meetings and minute
taking is funded through this line item.
Supplies $900 - This is for expenses related to office supplies
and this department's share of gas for the city vehicle.
Other Services and Charges - $51,800-
Legal -
51,800Legal- $3.500
Other Professional Services - $6,000
• possibly share cost of market study of central business
district with HRA - $5,000
• other miscellaneous professional services $1,000
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13065 Orono Parkway • P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
Advertising - $17,000
• Minnesota Real Estate Journal $4,000
• City Business - $6,000
• Upper Midwest Industrial Property Magazine - $2,000
• Twin Cities Business Monthly? - $4,000
• Other advertising - $1,000
Marketing- $14,500
• Reprinting of four color fold-out brochure $10,000
• Web Site modifications $500
• Marketing brochures for west business park -$2,000
• Other miscellaneous marketing/promotional activities -
$2,000
Printing $1,500
Postage - $1,600
Telephone $1,200
Miscellaneous (Chamber of Commerce) - $6,000
ID Insurance - $500
Transfers out - $2,000
$2,000 is allocated as a transfer to the city's general fund which
covers administrative expenses involved in EDA projects from
other departments.
Action Requested
Staff is recommending at this time the EDA approve the 1998 budget
in the amount of$107,550. Staff is also recommending that the EDA
adopt Resolution 97-_ _, requesting that the City of Elk River levy a
tax in an amount not to exceed .01813 percent of the taxable market
value in the city to be used for economic development purposes by the
EDA (see attached resolution).
Business Incubator Budget
The Business Incubator is considered a project budget and has,
already been approved by the EDA for its initial two year lease.
I have attached the 1998 Business Incubator budget for review
and approval by the EDA as a matter of formality.
All A transfer of funds from the Tescom loan repayments was made
to the Business Incubator account to cover the initial two year
expenses.
Supplies $1,000
Other Services and Charges $31,300
• Other professional services Genesis Business Centers
- $6,000
• Building rent - $19,800
• Cleaning contract $500
• Miscellaneous - marketing expenses/specific tenant
leasehold improvements - $5,000
Buildings -Leasehold Improvements $31,200
• The EDA continues to make monthly payments to
Larry Hickman to pay down the initial cost of the
building remodel which was approximately $78,000.
Action Requested
Staff is recommending at this time the EDA approve the 1998
Business Incubator budget in the amount of$63,000.
6. Review and Discuss Outline of Marketing Agreement for West
Business Park
Attached is a memo from City Attorney David Sellergren regarding an
outline of the major issues of a marketing agreement for west business
park property. Such outline, upon review by the EDA, will be
forwarded to Tony Emmerich to initiate further discussions regarding
the marketing of Country Crossings Business Center.
Sellergren's memo outlines various responsibilities of the EDA and
Tony Emmerich which will become the focus of the marketing
agreement. These are listed under i. D on Page 1 and i. E on Page 2 of
his memo. Mr. Sellergren may be available to attend the EDA meeting
on Monday,August 11, to address various issues as we continue,to
formulate the content of this agreement.
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• 7. Review and Discuss Business Incubator Activities t s-Harlan
a lan
Jacobs
Harlan Jacobs will be available at this meeting to discuss various
prospects which we have been working with over the past several
months for incubator space. We will provide updateson the following
incubator prospects:
Color Presentations, Inc.
• Bio-Energy, Inc:
• Greener Pastures, Inc.
• MediCord, Inc.
• MAS Technologies, Inc.
8. Update Strategic Planning Activities
Recently two parcels of property which were identified by the EDA as
part of the strategic planning process were taken before the Planning
Commission for rezoning from their current classification to Business
Park. These two properties were an eight acre parcel at the southwest
corner of Main Street and Highway 169 owned by Earl Hohlen, and
approximately 80 acres of property owned by the Stewart Wilson
family located behind the Sherburne County Administration Building.
The Hohlen property was approved by the Planning Commission for
rezoning to Business Park and the Wilson property issue was tabled
due to their being no representation from the property owner at the
meeting. The Hohlen property will go before the City Council on
August 18 for final action and the Planning Commission will act on the
Wilson property at its meeting on August 26. Staff has taken
numerous pictures of area business parks in order to provide
information to the Planning Commission and residents surrounding
these properties as to what may be an appropriate vision for a business
park. This information will also be useful as we approach the rezoning
of the other six areas identified by the EDA as part of the strategic
planning process.
Planning staff and economic development staff are currently working
with the Planning Commission, Housing and Redevelopment
Authority, and Rivers Edge Downtown Development Corporation to
implement the strategies outlined in the Strategic Plan regarding the
central business district. An initial meeting of this group will be held
on Tuesday, August 12, 1997, here at City Hall. Staff envisions this
• central business district planning process taking numerous months to
• complete and involving the following initiatives as identified in the
Strategic Plan:
• complete a focus study
• complete a market study
9. Micro Loan Fund Guideline Modifications
Staff has initiated modifications to the Micro Loan Fund Guidelines
and is currently in discussion with the Micro Loan Fund Finance
Committee regarding these draft modifications. Upon review by the
Finance Committee, the guidelines will be brought before the full EDA
for final action.
The two primary modifications which staff has drafted include the
following:
• a reduction of the interest rate to 3 points below prime
• allowing for the possibility of loans in an amount greater than
$50,000.
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