7.1.-7.5. EDSR 09-09-1996 ITEM 7.1. - 7.5.
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
cc?1, FROM: Paul T. Steinman, Director of Economic
Development
DATE: September 9, 1996
SUBJECT: Update Items
7.1. Strategic Planning
The initial meeting of the Strategic Planning Task Force will be held on
Wednesday,October 16, 1996, at a place yet to be determined. Members
of the Strategic Planning Task Force include:
• Jeff Gongoll -EDA
• Jim Simpson- Bank
• • Jackie Schuelein - Chamber
• Duane Kropuenske - HRA
• George Zabee - Utilities
• Dick Gongoll Bank
• Rich Duggan - Chamber
• Tom Bender - EDA
• Larry Farber - Council
• Hank Duitsman - Mayor
Staff includes Paul Steinman, Director of Economic Development; Pat
Klaers, City Administrator; and Bryan Adams, General Manager, Elk
River Utilities.
7.2. Mall/Snvders
The leasing agent for Elk River Mall, Jack Sheedy, provided staff with an
update on the status of leasing the two large spaces in the mall. He
indicated currently there is only one prospect for one of the two spaces.
Staff will be meeting with Mr. Sheedy on Wednesday, September 11, in an
effort to further emphasize the city's desire to fill those vacant spaces.
Staff will continue to keep open the lines of communication between the
Chamber, city, and Jack Sheedy in an effort to provide them prospects for
that space.
P.O. Box 490 • 13065 Orono Parkway• Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
Aiik 7.3. Sustainable City
A steering committee for the Sustainable City Energy Showcase has been
designated and is formally named the Action Committee for Energy,or
ACE for short. This will be the group which actually provides the formal
direction of the Sustainable City program in Elk River and includes
individuals from a variety of industry sources including Minnegasco,
NSP,Honeywell, Andersen Windows, and local businesses. ACE will be a
steering committee under the MEI/City partnership. ACE also has four
working groups or subcommittees including Energy Use, Economic
Development, Demonstration Sites, and Marketing.
7.4. Prospects
Staff is currently working with two potentially good prospects for a site in
the Business Park. One of the prospects is being initiated through a
private Minneapolis-based development company, and the other,is a
developer/business owner in another community. Initial discussions with
one of the prospects have included issues regarding the EDA's ability to
construct a building and lease it back to the developer. Staffs experience
is that positive opinions have been rendered in the past by several bond
attorneys regarding the legal authority for the EDA to sell bonds to
construct a building for a private business owner. This has been done in
• several cities across Minnesota, and is an issue staff will continue to
pursue in concept at this time. The advantage for the business owner is
a lower lease rate due to the low interest rate which the city can obtain on
its bonds, in comparison to conventional financing. A major future
discussion point, should the project proceed, is that the EDA assumes the
risk associated with paying off the bonds if the business owner were
unable to make the lease payments.
7.5. Anoka/Sherburne County Capital Fund Investor Meeting
City staff is currently working with County Economic Development staff
to initiate a meeting of potential investors in the Anoka/Sherburne
County Capital Fund. As you are aware, the Anoka County Capital Fund
will be changing its name to represent its ability to take part in equity
investments in Sherburne County. At this time however, the fund needs
to be replenished with dollars from investors. The purpose of the meeting
in Sherburne County is to invite local banks, and utility companies as
potential investors in the fund. The fund also is an important aspect of
the city's Business Incubator Program, due to the fact that it provides a
source of equity financing for start-up businesses.
eda\meetings\updates.doe