EDSR MEMORANDUM 06-09-1997 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
i
MEMORANDUM
TO: Economic Development Authority
FROM: Paul T. Steinman, Director of Economic
Development
DATE: June 5, 1997
SUBJECT: Agenda Memo for Meeting on Monday,
June 9, 1997
5. Discuss West Business Park
Staff updated the EDA at the last meeting on the foreclosure process of
the Country Crossing Business Center
property. A
expected, the
mortgagee, Country Ridge Partnership, was the only bidder at the
Sheriffs Sale on May 22, 1997. Upon completion of the six month
• redemption period, Country Ridge Partnership will be in a position to
begin •marketing the •property. Prior •to that time, staff and the EDA
have discussed beginning negotiations with Tony Emmerich regarding
a joint development/marketing agreement, which would be in place
prior to the end of the six month redemption period. Staff has had
verbal discussions with Tony Emmerich and he has indicated his
desire to work cooperatively to achieve this type of agreement with the
EDA.
Staff feels it would be advantageous for Attorney Dave Sellergren to
aid in the negotiations with Mr. Emmerich and the other two property
owners in the West Business Park. With regard to this staff has
attached a memo from Dave Sellergren outlining various
responsibilities and an example of a similar type of agreement which
he drafted for a private party. Sellergren has also indicated in the
memo a cost for completing this process. Staff feels it would be
beneficial to have Mr. Sellergren, or another individual, involved in the
negotiation process as it is expected the property owners will also be
represented by a minimum of two individuals.
Staff would like to begin negotiations with Mr. Emmerich as soon as
possible so that we can be assured of having an agreement in place by
411
13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420• Fax (612)441-7425
Equal Opportunity Housing and Equal Opportunity Employment
EDA Agenda Memo
June 5, 1997
Page 2
the end of the six month redemption period which will be
approximately in the middle of November, 1997.
6. Business Incubator
The purpose of this item is to update the EDA on the activities on the
Business Incubator project.
SolarAttic, Inc., has occupied space for approximately two months.
They are currently working on a distribution agreement with a
contractor in the southeast which would produce orders for
approximately 100 pool heaters by the end of this year. This is
SolarAttic's first distribution agreement and, if successful, may lead to
additional distribution networks for their various line of products.
MAS Technologies, Inc., upon acceptance of$50,000 from the Anoka
Sherburne County Capital Fund agreed that within four months of
April 1, 1997, they would be located in a facility here in Elk River. The
plan to complete their move is still in place. Staff has had discussions
with MAS Technologies regarding minor changes to the space in order
to accommodate their needs in the Business Incubator. Upon
doh completion of their move, staff intends to plan a Business Incubator
Milr open house during which we could provide tours of the building and
also meet some of the additional incubator prospects with which we are
continuing to work.
7. Web Site Development
Staff is developing the economic development site with Jim Baker from
OnRamp, Inca Attached to this memo is some of the information and
layout which is being provided for the economic development section of
this city web site.
8. Video and Marketing Materials
The city's marketing video was viewed at the last EDA meeting.
Several Commissioners commented on possible modifications including
cutting sections and adding footage to update this production. Staff
contacted DMR Pioneer Teleproductions, the original producers of the
video, to get a cost summary for updating the video. Attached to this
memo is a letter from DMR Pioneer Teleproductions with a price total
for updating the video of$2,330. He indicated the original cost of the
video was $5,890. Staff discussed with the EDA that this item could
be budgeted for in 1998,however, the months of June, July, and
EDA Agenda Memo
June 5, 1997
Page 3
August are probably the most ideal within which to take new footage.
The initial product, which was compfeted by this firm, is of very high
p p
quality and has been recognized as a very positive part of our overall
marketing efforts. In addition, this firm has all of the original footage
and master tapes on hand at its production facilities which has helped
to dramatically reduce the cost estimate for this modification.
Staff recommends authorizing an expenditure for the purpose of
updating the marketing video in an amount not to exceed $2,500.
There currently exists $2,000 in the EDA marketing budget which
would be utilized for this purpose. The additional $500 would come
from the EDA's existing cash balance.
9. Strategic Plan Implementation
The purpose of this agenda item is to provide an update to the EDA on
the status of the Economic Development Strategic Plan.
Implementation of this Plan is underway and will include action on the
rezoning of certain identified areas within the Plan. It is anticipated
these rezonings will be initiated by,the City Council at an upcoming
meeting and will then proceed through the Planning Commission
• process. The first two areas proposed to be rezoned" include the
following:
• The Wilson property south of the existing West Business Park
area
• The Earl Hohlen property at the southwest corner of Highway
169 and School Street.
Additionally, the HRA will be implementing the strategic planning
action item of identifying redevelopment areas in the central business
district.
ITEM 5.
I)OHERTY 3500 Fifth Street Towers 2800 Minnesota World Trade Center 1401 New York Avenue,N.W. 2370 One Tabor Center
150 South Fifth Street 30 East Seventh Street Suite 1100 1200 Seventeenth Street
RUMBLEMinneapolis,Minnesota 55402-4235 Saint Paul,Minnesota 55101-4999 Washington,D.C.20005 Denver,Colorado 80202-5823
BUTLER Telephone(612)340-5555 Telephone(612)291-9333 Telephone(202)393-2554
FAX(202)393-3131 Telephone(303)572-6200
FAX(612)340-5584 FAX(612)291-9313 FAX(303)572-6203
•PROFESSIONAL ASSOCIATION
Attorneys at Law Writer's direct dial number: Reply to Minneapolis office
' MEMORANDUM
To: Paul Steinman, Executive Director
Elk River Economic Development Authority
From: David Sellergren
Re: West Highway 10 Business Park—Exclusive Negotiations Agreement
Date: May 22, 1997
We have discussed the issues and a rough concept which involves the EDA assuming an active role
in fostering the development of approximately 120 acres of land in western Elk River along Highway
10. It is contemplated that this land be developed as a business park. The land is currently owned
by at least three owners (the"Owners").
You desire to negotiate a contract with the Owners which will establish the EDA as an exclusive
representative for the marketing and sale of the properties and will address, in part, the following
issues:
1. Establish the purchase price of the land if the EDA brings a buyer/business.
2. Establish the parameters for marketing the properties.
3. Establish closing mechanics and timing, which would address such things as survey,
environmental issues, title, soils correction, etc.
4. Address the installation of utilities, particularly facilitating early installation, possibly including
a deferral of assessments.
5. Determine necessary land dedication and easements for streets, utilities, and open space.
6. Establish general design parameters for and target users in the business park.
7. Other issues to be identified.
I enclose an agreement between the Fridley Housing and Redevelopment Authority and an unnamed
• private entity. I represented the private entity in negotiating this agreement. It contains some, but
not all, of the issues which you desire to address in your negotiations with the Owners. In some
DOHERTY
RUMBLE
& BUTLER
-ROFESSIONAL ASSOCIATION
respects, if you reverse the role of the private and public entities in this document, you have the
beginning of what you seek to accomplish in Elk River.
You have asked that I assist the EDA in approaching the Owners to ascertain whether it is possible
to arrive at a contract document which addresses the above-listed issues. I would be pleased to do
so. My experience in Fridley arrangement, as well as my current representation of the St. Paul Port
Authority in sale of its many industrial parcels may prove beneficial in these negotiations.
I would expect that we could ascertain whether achieving such a contractual arrangement would be
possible after two or three meetings with the Owners. Preparatory to those meetings, we should
work harder at identifying a more complete list of issues and the manner in which we wish to suggest
they be approached. If we assume that each of the meetings will be separate meetings with the
individual Owners and it requires two meetings each, I would estimate the following possible costs
for my time:
Three meetings, 3 hours each, times two = 18 hours
Consultation and analysis= 10 hours
Total: 28 hours times $135.00 = $3,780.00
I have not included any time for drafting the document, since it is premature to speculate whether the
EDA will reach that point. If and when it does, then I will provide an estimate for drafting and
assistance in negotiating the actual document. The enclosure gives some hint that there may be
efficiencies in drafting based on prior experience.
If you have questions or comments, please call. If necessary, I would be pleased to refine this
memorandum after your review of it should you wish to provide some version of it to the members
of the EDA.
//,‘ '
cc: Peter Beck
BeckP 518443.1 2