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8.0. EDSR 05-13-1996 A.K MEMORANDUM ity of / TO: Economic Development Authority lk • River FROM: Stephen Rohlf, BZ Administrator DATE: May 13, 1996 SUBJECT: Update on Sustainable City Showcase The selection committee for the Minnesota Environmental Initiative's "Energy Alley" project has narrowed down the candidates for the Sustainable City Showcase to nine cities in the state. Elk River is still very much in the running. Apparently the decision on which city is chosen will not be made until July. Since your last update on this subject the selection committee added an application form for the cities in contention. That application asks for letters of support for a city's nomination. So far we have received letters of support for Elk River's nomination from UPA, Anoka Electric, Elk River Municipal Utilities, and a resolution of support from the EDA. It has been recommended to us that we demonstrate a broad base of support from the community. To that end, a meeting to solicit letters of support is scheduled for Wednesday, May 29, 1996 at City Hall starting at 4:00 PM. If anyone from the EDA wishes to come it would be appreciated. Staff has been in contact with the Chamber of Commerce regarding this meeting. Staff is concerned that NSP, an important sponsor of the Energy Alley project, will be reluctant to support a city's nomination if it is outside of their service territory. To counter this, we are seeking a letter of support from NRG, the RDF plant, which is a wholly owned subsidiary of NSP. We may, in the near future, recommend political action to overcome the NSP hurdle. A key component to our application would be a letter from a local utility indicating they would buy excess electricity from an industry powered by wind energy. Staff will be in contact with Elk River Municipal Utilities regarding this. I will be at Monday night's meeting to address this subject further. • s:\b&z\stever\suscty-3.doc 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 ( City of **Item 5.11.** 1kMEMORANDUM River TO: Housing and Redevelopment Authority Riverfront Corridor Committee Economic Development Authority • , Utilities Commission Mayor & City Council TY Park & Recreation Commission Planning Commission Area Chamber of Commerce FROM: Pat Klaers, City Administrator DATE: May 13, 1996 SUBJECT: Riverfront Pathway Proposal At the April 3, 1996, HRA meeting, Michael Schroeder from Hoisington Koegler Group, Inc. (HKgi) provided the HRA with an update on the status of 1111 the river pathway project. At this meeting it was acknowledged that the ISTEA funding request was rejected, and in light of this rejection, HKgi was looking at some phasing in or downsizing of the project in order to make the project more economically feasible. Additionally, Michael indicated that HKgi had revised some of the components of the project due to the construction feasibility concerns for certain areas along the river. At the end of the 4/3/96 HRA discussion with Michael, it was decided to have HKgi firm up some of the cost analysis and phasing in schemes and that a presentation from HKgi to all interested parties should be held in the near future. Accordingly, all individuals noted above are cordially invited to attend the: Riverfront Pathway Presentation by Hoisington Koegler Group, Inc. at 6 p.m., Thursday, May 23, 1996, at City Hall. Attached for your review is an April 17, 1996, letter from Michael Schroeder that further outlines some of the work that HKgi is doing on the Elk River riverfront pathway project. . s:counci lrvftprop 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 • Wednesday, May 8, 1996 / Elk River Star News / 3 II Elk River Briefs r • ✓3 11111; 41' Open house draws 400-500 Four-year old Aaron Follmer looked at the inside of an Elk River police car during the police department's open house Saturday at the Elk River City Hall. Approximately 400-500 people attended the different PP Y exhibits and is a d 150 cats and dogs received rabies shots. "We had a9 ood turnout," Police Elk River Chief Tom Zerwas said. Among the exhibits were several demonstrations about safety with electricity, trains and canine rescue. Trucking firms negotiate - . with city about move The city of Elk River is negotiating with Morrell Transfer and LeFebvre & Sons about their moving to a site on 171st Avenue. Improvement of 171st Avenue along with Highway 10 acceleration/deceleration lanes is a high priority and both could be accomplished this year if one or both trucking busi- • nesses were to locate on the site. City Administrator Pat Klaers estimates the project will cost in the range of$450,000. He said the long range plan is to have 171st Avenue signnli7ed and connected. on the east side of the railroad tracks, up north through the "Snake Trail"to County Road 12. At the meeting representatives of the trucking firms asked what else the city could do. It was the consensus of the council to offer the trucking • businesses: •the city would pay for the signal • •the city would pay the landowners a fair market price for any right of way •the city would offer revolving loan funds as an incentive •the city would purchase any buildable land on the north side of 171st Avenue ty of / MEMORANDUM WRiver TO: Economic Development Authority FROM: Pat Klaers, City 'nistrator DATE: May 13, 1996 SUBJECT: Gagne Property This item is discussed in the EDA worksession memo. Please see this memo for a review of the Gagne purchase option possibility. • I 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 CONSTRUCTION AND DESIGN Name and address of architect, engineer and contractor for project: ID Bids not in to be dQcideca later Target Dates: Start of Construction: Jure i S "I c A ti Construction Completed: Oct_1 , 1996 Finished Market Value of Project: $ 160,000 0 0 STATEMENT OF PUBLIC PURPOSE Describe why the proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the foreseeable future arid therefore the use of Tax Increment Financing is deemed necessarj: Expanding a buzi'ics3 i3 a very cxpcnsivc proiect. Additional machinery and working space is badly • needed to satisfy our existing customers. Without some he = - _ - - - ' _ - _ = 4 - - afford all of the expenses involved. The undersigned, (a) (the) of applicant, hereby represents and warrants to the City that (he) (she) has carefully reviewed us application, and that the statements and information contained herein and submitted herewith are accurate and complete to the best of the undersigned's knowledge and belief. Dated: 9 May 10, 19 6 _ - -.Nov pplicant By Its The City reserves the right to require additional information and supporting data from the applicant after the filing of this Application. 1111 PROPOSED PROJECT Describe Project: NPw stPe1 Building Location: McChesney Industrial Park Block 1 Lot 9 Site Plan Attached: Yes x No Type of Proiect: Commercial x Industrial Residential New Construction Expansion Rehab JOB CREATION Current Number of Employees: 2 Current Payroll: $110 ,000_00 Number of Jobs Created: 2 • Number of Jobs Retained: 2 Revised Payroll: $1A5 ,000 _00 • PROJECT COSTS Land Acquisition: $ 45 ,non nn Site Development: $ 4 , 000 nn Construction: $ 320 , 000 .00 Machinery & Equipment: 49 ,400 .00 Architectural and 2 ,000 .00 Engineering Fees $ Legal Fees S 1 , 000 .00 Interest During Const. $ 3 ,400. 00 Debt Service Reserve $ Contingencies $ TOTAL $ 424 , 800 On SOURCE OF FINANCING Conventional Loan $ 2D0, 000 .00 Equity $ SBA Loan $ Revenue Bond $ • Tax Increment Financing $ 35 , 000 .00 Grant(s) $ Other $ TOTAL $ -195 ,000 .00 • .14. I;�iiiilli,,a,,,ll,a!„aq!I1 l'i i it - ma - III = 1111 III PI filVIIJul II iI1111111 -, IIII = 1111!1h illi :----= Il�liii 1111II AI II Iplll lv' ". _ Ilii 0 s � I.II;Nidi r ii`AI!Iii�,lll�lllIE�I I+I`` E--- Nit li1llu! 1Uf ,,,,,,„ „,Im // __ fIIJIl —' ,III PP llllll 11111 l' 11111111 l+ -- C Illl Il�l�llil a 0 il�llll�l `III�IIII • ia,,lu m': „i',7! it 4,1 1,„i;, '1.'„11= I t-- i i I1 14 1 iTIte rt ti : ''''% ti .V\\‘ til i vs4.f ii .... ' / A. 1k / -t-_ 1 , _ . 0 -'4. \ • 0 /q, w 4.4104 at] I 1 s 1c4e4 .1.747.rn „ / / / 1 / 1 / I`{ • b 6 ig !i \ \ \ \ \ \ 1 \ \ \ \ \ \ \_____\_..--- .__ _.._ MAY-10-96 FRI 10:03 FAX NO. 0 P. 03 NR Energy,Inc • Elk River-Resource Recovery 10700 165th Avenue NW Elk River,MN 55330 Telephone(6I2)441-3800 Fax(6 12)441-8989 May 3, 1996 Minnesota Environmental Initiative 527 Marquette Avenue, Suite 2420 Minneapolis, MN 55402-9709 Elk River Resource Recovery is supportive of the Minnesota Environmental Initiative Energy Alley project. This project is a long range plan for bettering the environment. The City of Elk River would be an excellent choice for the Sustainable City Showcase. The Elk River Resource Recovery Facility, located in the City of Elk River, is a great example of a vision to protect the environment • and save energy which has developed into a viable operating project where municipal solid waste is converted to power plant fuel, and ferrous metal is recycled. This facility is available for tours for gaining understanding of state of the art waste disposal. In addition, the corridor between Anoka and Saint Cloud has been identified as a high growth area through the next decade. Elk River, located neatly within that corridor, will have high construction activity and • population growth well into the future. This would be an ideal attribute for the Sustainable City Showcase. For those reasons, NRG Energy, Inc. supports the City of Elk River for the Sustainable City Showcase for the "Energy Alley" project. Since ly, 14._,C4/(Zr-( Ron Will Vice President Operations & Engineering • MAY-10-96 FRI 10:04 FAX NO. 0 P. 04 • ANOKA ELECTRIC COOPERATIVE 2022 NORTH FERRY STREET ANOKA,MINNESOTA 45303 PHONE:(612)523.400. MN WATTS 1.800442.1e72 • kfpr ; • Minnesota Environmental Initiative 527 Marquette Avenue Ste 2420 Minnesota, MN 55402-9709 SUBJECT: "Energy Alley" project AEC wishes to express its support for the Minnesota Environmental Initiatives "Energy Alley" project. AEC also encourages and supports the City of Elk River becoming the ID Sustainable City Showcase. If you have questions concerning AEC's support please contact Doug Uhrhammer, AEC's Manager of Community Development and Public Affairs at 323-2723. Sincerely, 'chard Newland General Manager cc: Jim Tralle, President E.R. Municipal Utilities Doug Uhrhammer, Mgr. Dev. and Public Affairs • • "Committed to customer satisfaction through service. leadership and involvement."' MAY-10-96 FRI 10:04 FAX NO. 0 P. 05 At 't t • UPA United Power Association P.O.Box 800 . Elk River,MN 55330-0800 . (612)441-3121 April 15, 1996 Minnesota Environmental Initiative 527 Marquette Avenue, Suite 2420 • Minneapolis, Minnesota 55402-9709 I am pleased to offer United Power Association's (UPA) support for the Minnesota Environmental Initiative's "Energy Alley" project. I also recommend the City of Elk River as a prime example of energy efficient and renewable energy resources at work. As you are probably aware, UPA is recognized internationally as a leader in • demand side management programs. Our off-peak and electric thermal storage programs have been patterned by other utilities across the U.S. and abroad. We have helped pioneer the use of new energy efficient technologies, such as geothermal heat pumps and fuel cells. Our facility alone would provide your project with large scale examples of geothermal heating and cooling, energy efficient lighting, and electricity from municipal solid waste. In addition to these demonstrations, our power plant and energy control center would offer working examples of the infrastructure required for the creation and delivery of our most efficient and flexible energy form: electricity. I am also confident that the City of Elk River would be a welcome host to the distinction of MEI's Energy Alley Showcase designation. The community has demonstrated time and time again an enlightened and progressive character. Sincerely, UNITED POWER ASSOCIATION Antone J. R de • Executive Vic- • -sident and General Manager AJR/vb ELK RIVER MUNICIPAL UTILITIES • 322 King Avenue Elk River, Minnesota 55330 Phone (612) 441-2020 Minnesota Environmental Initiative 527 Marquette Avenue Ste 2420 Minneapolis, MN 55402-9709 To whom it may concern, The Elk River Municipal Utilities Commission was presented information regarding the Minnesota Environmental Initiative's "Energy Alley" project at our March 12th, 1996 meeting. As a group, we all felt that this was a good and forward thinking idea. • We would like it known that we support the City of Elk River becoming the Substainable City Showcase for this project and will do all we can to aid in this effort, if our city is selected. Let us know if we can be of further assistance. Sincerely, James Tralle, President E.R. 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