EDSR MEMORANDUM 04-10-1995 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
FROM: William Rubin, Executive Direct
DATE: April 10, 1995
SUBJECT: Agenda Memo for
April 10, 1995, Meeting
5. April Financial Update
Assistant City Administrator Lori Johnson has provided summaries on
the following funds:
Micro-Loan Fund The Micro-Loan Fund had a cash balance of
$114,990.20 on March 31, 1995. As of April 5, all loans are current
except Roma Tool, Americlnn, Designing Women, Indy Lube,and
Water Laboratories. The loan to T.J. Properties in the amount of
$48,000.00 closed in March.
Block Grant Micro-Loan Fund - The Block Grant Micro-Loan Fund has
a cash balance of$28,782.03.
Check Register - The process by which EDA bills are paid is now on
line. In approving its own accounts payable on April 3, 1995, the City
Council also approved payment of four EDA bills totaling$3,100.25.
Payment of these bills were done on new EDA checks. Signatures
were done manually, but in the future, a stamp will be used. For
subsequent EDA check registers, additional information can be
provided to Commissioners regarding fund balances, etc. The EDA's
initial check register is included in the agenda packet.
Action Requested
These are informational items only and no action is requested.
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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
• 6. Statement of Expenses
Enclosed in the agenda packet is the EDA's Statement of Expenses due
the city of Elk River for the period ending December 31, 1994. These
expenses have been categorized under "Personal Services", "Supplies
and Charges", and "Contractual Services". The EDA's expense from
Training Networks is found under Consultant Services.
Action Requested
The EDA is asked to approve a payment to the,city of Elk River in the
amount of$24,843.68 as reimbursement for costs for the period ending
December 31, 1994.
7. Consent to Easement
In late 1994, the Elk River EDA approved supplemental financing to
assist with the Auto Mall project. As such, a mortgage from the EDA
encumbers the auto mall property. The property is also encumbered
by a loan from the Auto Mall's primary lender.
Elk River Auto Mall, LLC desires to execute a non-exclusive easement
for drainage and ponding purposes with an adjacent property owner
Guardian Angels Health Services, Inc. The approximate location of
the easement is indicated on base maps which are included in the
agenda packet; The area affected by the easement was personally
inspected in early April.
Because an EDA loan encumbers the Auto Mall property, it is
necessary for the EDA to consent to the terms and conditions of the
proposed easement. In a separate agreement, the Auto Mall's primary
lender is also asked to agree to the terms and conditions of the
easement.
A copy of the easement and maintenance agreement by and between
the Auto Mall and Guardian Angels is included in the agenda packet.
In addition, the proposed consent agreement for execution by the EDA
is also found in the packet.
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Action Requested
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The Elk River EDA is asked to authorize its President and its
Executive Director to execute a consent to an easement and
maintenance agreement.
8. Industrial Park Site/School District 728
School District 728 desires to construct and maintain its own public
works facility. Currently,the District's facility space is located within
the City's shop. Alternatives to this arrangement are being pursued
wherein District 728 would secure its own facility. One site option is
that of constructing a building near the Community Education
building.
City Administrator Pat Klaers presented the School District with
another option. This alternative is the remaining EDA-owned site in
the Elk River Industrial Park. Previously, this site served as a staging
area for the stockpile of fill material from the infrastructure activities
of the Park's second addition. The stockpile has since dwindled and
the site is nearly at a construction-ready stage. Complete utilization of
this lot is limited because of wetland restrictions affecting a portion of
4) it.
Previously, Tescom Corporation evaluated this site as a potential
expansion area. Although soil borings indicated that the site could
support a building pad, Tescom concluded that the site was unsuitable
for its proposed expansion - due in part to the wetland restrictions. As
a result, Tescom expanded elsewhere and this site remains viable for a
15,000 to 20,000 square foot industrial user.
For the exact location of this vacant site, please refer to the base maps
in the agenda packet.
At a recent City Council workshop, the School Board discussed site
alternatives for its public works facility. Because the Industrial Park
site is owned by the EDA, it is appropriate for its Commissioners to
review this issue. Issues to be resolved include:
Land Use
Industrial user versus tax exempt user
-Price
• EDA quoted price to Tescom was $60,000; please refer to the
City Administrator's memo regarding a price quoted to the
School District.
Use of Sale Proceeds
Proceeds from this land sale should be earmarked by the EDA to
repay one of many City accounts that were accessed to purchase
the Industrial Park sites from the Associated Investors. Tax
increments generated from the Timron development and the
Tescom development will nearly repay the City the amount
prorated to the acquisition value of the industrial sites. This
however, should not diminish the ability of the EDA to achieve a
fair price for its remaining industrial parcel.
Pat Klaers will be in attendance to provide an overview of the District
728 proposal, as the writer of this memo did not participate in any of
the earlier negotiations.
Action Requested
Assuming that the School District is still interested in pursuing this
• site as an expansion option, the EDA may be asked to schedule a
public hearing to discuss the terms and conditions by which Lot 8,
Block 1 would be conveyed. The public hearing is an EDA statutory
requirement.
9. Industrial Park Activities in Ramsey
A recent article from UPA's Capsule News provided readers with an
update on Anoka Electric Cooperative's (AEC) proposed expansion
plans in Ramsey, Minnesota. AEC recently acquired a large tract of
land along County Road 56 (Ramsey Boulevard)as the site of its new
corporate headquarters and warehouse facility. According to the
article, the balance of the property will,be developed as an industrial
park - by way of a development agreement with the city of Ramsey.
The purpose for bringing this to the attention of the EDA is to remind
Commissioners that the Business Park Task Force aggressively
pursued REA funds through AEC to assist with underwriting a portion
of the infrastructure costs of a business park in Elk River. The
message delivered from AEC was that of"if we help one community we
will have to help all the communities in our service territory". It is
difficult to reconcile that message with AEC's interest in actively
pursuing industrial development in Ramsey. By virtue of AEC's land
holdings in Ramsey, Elk River will likely end up competing with the
same industrial prospects as Ramsey/AEC.
Action Requested
The EDA is asked to authorize a letter to AEC's General Manager
outlining some of these concerns, and, reminding AEC of a message it
delivered to the Business Park Task Force about a year ago.
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