EDSR MEMORANDUM 01-09-1995 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
IP
MEMORANDUM
TO: Economic Development Authority
ii\IFROM: William Rubin, Executive Direct° ri,
DATE: January 9, 1995
SUBJECT: Agenda Memo For January 9, 1995, EDA
Meeting
5. January Financial Update
Finance Director Lori Johnson has provided summaries on the
following topics:
Micro-Loan Fund - The Micro Loan Fund had a cash balance of
$180,680.43 on December 31, 1994. This excludes 1994 interest
. income which has not yet been allocated. - In November, a check
for $50,000 was issued in anticipation of closing on the Auto
Mall loan; because that loan has not yet closed, the check has
been voided and the $50,000 is included in the December 31,
1994, cash balance. The following January payments have not
been received as of Friday, January 6, 1995; Roma Tool, Alltool,
Americlnn, Indy Lube,and Beaudry.
Block Grant Micro Loan Fund
The Block Grant Micro Loan Fund had a cash balance of
$18,814.11, excluding 1994 interest, on December 31, 1994.
EDA Loan Balances
A list of all Micro Loans outstanding on December 31, 1994, is
included as a separate attachment.
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
S 6. Annual Meeting Items
a) Election of Officers Pursuant to its Bylaws, the second Monday
of January has been designated as the EDA's annual meeting
date. Therefore, it is in order to conduct elections for the
following offices:
President
Vice President
Treasurer
Secretary
Assistant Treasurer
The following EDA Commissioners were elected ` to the
respective positions at the 1994 annual meeting:
Jeff Gongoll, President
Patrick Dwyer, Vice President
Roger Holmgren, Treasurer
Larry Farber, Secretary
Hank Duitsman, Assistant Treasurer
With the City Council's recent revision to the composition of the
EDA Board, Commissionersmay wish to take into consideration
which Councilmember will not be serving on the EDA during its
election of officers. This will avoid electing a new EDA officer in
the future should a current 1995 EDA officer choose to step
down from the Authority in accordance with the decision to add
one more non-elected member to the EDA.
b) Appoint Executive Director - In March of 1994, the EDA
appointed the writer of this memo as its Executive Director.
Although this appointment is less than one year old,
reappointment must occur pursuant to the EDA Bylaws.
Therefore, it is in order to reappoint William Rubin as EDA
Executive Director.
c) Official Newspaper - The EDA's official newspaper is the Elk
River Star News, and it is in order to redesignate the Star News
as the EDA's official newspaper for 1995.
d) Official Depositories - Past practice for this item has been for
• the EDA to designate the same depositories that are used by the
• city of Elk River. For 1995, the city of Elk River will designate
the following banks/institutions as depositories for its funds:
The Bank of Elk River
First National Bank of Elk River
Metropolitan Federal Bank (Elk River)
Norwest Bank
First Banks
Marquette Bank
Following past practice, it is in order to designate the above-
referenced banks/institutions as depositories for EDA funds in
1995.
e) Consider Committee Appointments/Assignments The EDA
currently has three committees; a) Finance,b) Marketing, and c)
Research and Development. Membership on the respective
committees can be found on a separate attachment in the
agenda packet. Past practice has been to reappoint the same
persons to these committees - assuming that the members desire
to remain and serve in an as-needed basis. The Finance
• Committee is active throughout the year in its review of micro
loan requests, the R&D Committee was reactivated and two of
its members serve on the Business Park Task Force; the
Marketing Committee has been helpful in its critique of
marketing brochures, etc.
f) Bylaws/Enabling Resolution The annual meeting also provides
an opportunity to review the EDA's Bylaws and Enabling
Resolution for suggested changes, if any. However, subject to
proper notice, amendments to the Bylaws may be made during
the year as well. The Enabling Resolution may be modified
throughout the year, too.
7. Addendum to Tescom TIFAEreement
At the December, 1994, EDA meeting, Commissioners authorized the
preparation of an addendum to the Contract for Private Agreement by
and between the EDA and Tescom Corporation. This Agreement will
enable the EDA to convey Lot 1, Block 2, Elk River Industrial Park
2nd Addition to Tescom Corporation by Quit Claim Deed. Further, the
addendum helps tie this conveyance to the Contract for Private
Development as well as TIF Plan No. 9. In essence, the terms and
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• conditions of the existing Contract for Private Development prevail
with Tescom's new ownership of Lot 1.
As discussed at the last meeting, the EDA will recover its expenses
from this transaction through the collection of an additional year of tax
increment payments.
Action Requested
The EDA is asked to approve an addendum to.the Contract for Private
Development by and between the EDA and Tescom Corporation.
8. Update on Business Park Issues
At the last EDA meeting, Commissioners referred the broad topic of
"public/private partnerships" in the business park to the B-P Task
Force. The Task Force met on December 20, 1994, to discuss this
matter. A favored concept emerging from this meeting was that of
utilizing existing TIF/RDF funds to underwrite a portion of the costs
associated with the construction of streets and the installation of water
and sewer lines in the business park. As lots are sold, the
owner/developer of the business park would be obligated to repay the
• City/EDA a specified amount on a per acre basis. Security for repaying
the public funds would be that of a mortgage filed against the business
park property plus a Promissory Note and Developer's Agreement.
The B-P Task Force will meet again on January 12, 1995, to finalize
this matter and to bring forth a recommendation to the EDA for
consideration at the February meeting.
Progress on the development of the initial phase of the business park
continues. The City Planner is in receipt of three applications,
including a) preliminary plat, b) conditional use permit for a 19,000
square foot convenience center, and c) site plan approval for a two-
story,30,000 square foot office building. Supporting documents on the
respective applications are included in the agenda packet. This
information will considered by the Planning Commission at its
meeting in late January and by the City Council at its meeting in mid-
February.
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9. 1995 Work Program
A draft of the 1995 EDA Work Program has been included in the
agenda packet. The Work Program will be discussed in greater detail
at the EDA's annual meeting.
9.1. EDA Workshop Topics
In 1994, the EDA initiated the practice of scheduling workshops
in an informal setting so as to better obtain direction on various
issues. For example, the EDA brought various parties together
to discuss its Main Street redevelopment site. Participants in
this workshop included the Area Chamber of Commerce,
downtown property owners, banks, developers, and potential
users of the site. A joint workshop with the HRA was held to
discuss the value of an active central business district. Lastly,
the EDA held a short workshop on potential public/private
partnerships in the business park.
Meetings like this are of great value. They help staff obtain
• clear direction on issues that can be implemented in the future.
As such, the EDA should plan on another workshop as early as
March. Potential topics include:
• Tax Increment Financing for Manufacturing
Projects
• Expanding the Inventory of Improved, Light
Manufacturing Sites
• 1995 Legislative Initiatives
• Central Business District
10. Change February/March Meeting Dates
The writer of this memo has a time conflict with the EDA's February
and March meeting dates. These time conflicts begin at 6:30 p.m. on
the same dates the EDA is scheduled to meet in February and March.
Perhaps the EDA is agreeable to conduct its business one day later, on
the second Tuesday in February and in March Another option is to
begin the EDA's meeting at 5:00 p.m., to accommodate the 6:30 pm.
time conflict.
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