EDSR MEMORANDUM 10-14-1996 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
• MEMORANDUM
TO: Economic Development Authority
FROM: Paul T. Steinman, Director of Economic
Development
DATE: October 7, 1996
SUBJECT: Agenda Memo for October 14, 1996,
Meeting
5. Discuss Possible Loan Fund Program for SAC/WAC Charges
Staff has been asked about the possibility of financing SAC/WAC
charges in specific cases where a redevelopment project is being
encouraged. Such may be the case in dealing with a restaurant start
up in the former Snyder's Drug building in downtown Elk River. Staff
has been dealing with an individual over the past several months who
IDis interested in starting a restaurant operation in that building. The
business owners indicated that they will be requesting a $50,000 loan
from the EDA micro loan fund. The individual has also indicated they
will likely be requesting an additional loan to cover the cost of
SAC/WAC fees associated with this project in the amount of
approximately $18,000.
Staff has had initial discussions with City Engineer Terry Maurer and
Utilities Manager Bryan Adams regarding these fees. It appeared to
be their general consensus that these fees may not be significantly
higher than other communities similar in size to Elk River. It is also
appropriate to indicate there has not been a SAC/WAC fee increase in
the City of Elk River for quite some time.
The issue is still relevant however in that a request will likely be made
for a loan to cover the cost of these fees. If a request such as this is
approved, there will likely be other requests made, therefore, staff
would proceed to establish some criteria for this type of funding. Staff
foresees the following general criteria being followed:
0 Must be a redevelopment project
0 Must show an extraordinary need for this type of loan
financing
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
0 Must be a restaurant or similar use which typically has
•
higher SAC/WAC fees.
7. Update on Energy City Issues
The City celebrated its partnership with Minnesota Environmental
Initiative/Energy Alley on October 8, 1996, at UPA. The presentation
included several speakers from Energy Alley and also the US
Department of Energy.
The event also showcased six businesses showing innovative
technologies in the energy related field. Harlan Jacobs, Genesis
Business Systems, Inc., was also available at a display to discuss an
innovative product which works to save electricity in the industrial
field. There is an interest by the product's inventor in manufacturing
the device here in Elk River. This event appeared to be an appropriate
opportunity for this potential business to meet individuals in the field
and continue to market his new product.
As you are aware,the Action Committee for Energy (ACE) has now
been meeting on a regular basis to begin the planning stages of the
Energy City initiative. The four subcommittees of this group include
• Marketing, Demonstration Sites, Energy Use, and Economic
Development. It would be appropriate at this time for a request to be
made for volunteers to serve on the Economic Development
subcommittee, of which Paul Steinman will be the staff liaison. The
Economic Development subcommittee will work to create opportunities
for business growth within the overall strategies of the Energy City
initiative.
A slogan has recently been chosen which will represent this new
partnership between MEI/Energy Alley and the City of Elk River.
This slogan is as follows:
Elk River-Energy City
Renewable and Efficient Energy for Today and the 21st Century
8. Hohlen Project Update and Industrial Land Rezoning
Hohlen Project The following development issues are provided as an
update:
0 Notice of mobile home park closure has been served to
• residents
0 A public hearing will be held at the City Council meeting in
November regarding the mobile home park closure.
0 Conceptual discussion indicates there will be two big box
retailers located on the site.
0 Approximately 75 acres total - some in wetland and some
encumbered by electrical transmission lines.
0 Several freestanding pads will be developed.
0 Final approvals for the project will likely occur in spring of
1997.
The developers attorney, Gerald Duffy, had proposed at one time the
concept of including an industrial component in this overall project. At
the time,staff indicated a desire to pursue this objective, and will
continue to do,so as the concept plans begin to get firmed up into a
more definite project.
Industrial Rezoning Two areas are being rezoned from current status
to industrial in the west area of the city. These include an area at the
intersection of Jarvis and Highway 10 (see attached maps) and also an
area which currently includes a business - Industrial Hardfacing- and
George Deschenes property off of County Road 13. Planning staff
Aik continues to examine other areas in the western portion of the city for
IP industrial zoning opportunities.
Planning staff is currently establishing base information on a large
area east of Highway 169 between County Road 12 and 13 for land
use, transportation, and additional opportunities for industrial zoning.
s:\eda\meetings\agmm1014.doc
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