EDSR MEMORANDUM 06-12-1995 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
FROM: William Rubin, Executive Directo �
DATE: June 12, 1995 �!
SUBJECT: Agenda Memo for
June 12, 1995, Meeting
2. Consider June 12. 1995. EDA Agenda
Agenda Item#11 should be deleted from the June 12, 1995, EDA
agenda. The EDA Commissioners and its Finance Committee can
expect an application for a micro loan from Mr. Kermit Bode at the
July meeting. The primary lender for this project has authorized an
appraisal of the land and the "as built" plans and specifications. This
information will help determine the lender's participation in this
40 project. Custom Cutter Grinding currently leases space at 9423 West
Highway 10 in Ramsey,Minnesota. Its proposed expansion is located
on a vacant site in the Rail 10 Industrial Park that is owned by Mr.
Tom Hipsag.
6/7. June Financial Update/Check Register
Utilizing a new format, Assistant City Administrator Lori Johnson has
provided summaries on the EDA budget,micro-loan fund, and the
block grant micro-loan fund.
In addition, the check register of EDA expenses approved by the City
Council is included in the agenda packet.
Action Requested
The financial update continues to be an informational item and no.
action is requested.
The EDA is asked to review the check register and acknowledge its
receipt. This can be done without a motion.
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
8. Alternatives to Training Network's Proposal to the City Council
410 Since the May EDA meeting, a City Council motion to accept a revised
proposal from Training Networks, Inc., has failed twice. These actions
occurred at the May 8 and May 22 City Council meetings. Hopefully,
EDA Commissioners will have suggestions or alternatives so that the
various needs identified by Sandy Bower and Lee Colby can be
addressed.
9. Sale of Industrial Park Site
City staff has been advised that the Board of Education has authorized
the purchase of Lot 8, Block 1, Elk River Industrial Park in the
amount of$45,000. In accordance with action taken at the May 8
public hearing on this matter, no additional action is required by the
EDA in order to close on this transaction. It is further understood that
the City Attorney is preparing the necessary documents for closing;
However, prior to closing, all municipal approvals (i.e., site plan
review, conditional use permit- if any, etc.) should be completed. To
further ensure that minimum thresholds are achieved (i.e., size of
building, type of construction,minimum investment, completion date,
etc.)perhaps a "mini" development agreement by and between the Elk
Ask River EDA and Independent School District No. 728 is necessitated.
IIP
On an unrelated matter, EDA Commissioners will recall that its
obligation in the disposition of publicly owned sites in the Elk River
Industrial Park was to generate $210,000 in sales. Found below is a
summary of sales involving EDA sites and their respective values:
COMPANY VALUE
Timron Precision Gear $ 50,000 (collected from property tax
payments beginning in 1995)
Tescom Corporation $100,000 (collected from property tax
(Phase I) payments beginning in 1995)
Tescom Corporation $ 57,000 (collected from property tax
(Phase II) payments beginning in 1996)
District 728 $ 45,000 (cash or equivalent)
$252,000
10. TIF Plan Public Hearing
This agenda item is outlined in greater detail in a separate memo.
• 11. Custom Cutter Grinding Micro-Loan Request
This item will be deleted from the June 11, 1995,EDA agenda.