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5.0.-11.0. EDSR 10-10-1994 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY • MEMORANDUM TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, EXECUTIVIM_ DIRECTOR DATE: OCTOBER 10, 1994 SUBJECT: AGENDA MEMO FOR OCTOBER 10, 1994, EDA MEETING 5. October Financial Update The following is a summary from Finance Director Lori Johnson: Micro-Loan Fund The Micro-Loan Fund had a cash balance of $156,897.97 on September 30, 1994. A loan application fee of $500.00 from John Weicht and Associates was received in September. As of Thursday, October 6, all October payments are current except Americlnn. Block Grant Micro-Loan Fund The Block Grant Micro-Loan Fund had a cash balance of$13,236.15 on September 30, 1994. ACTION REQUESTED This is an informational item only and no action is requested. 6. DTED Awards At DTED's annual Star City Conference, September 21-23, Elk River was awarded plaques in three categories: Best Community Marketing Video Best Overall Marketing Materials 1994 All-Star Designation Other categories for DTED awards included Best Business Retention Program, Best Overall Tourism and Promotion Program, Best • Community Development Program, Best Marketing Prospect Proposal, 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 and Best Marketing Plan. The City of Two Harbors received two • awards from DTED, but only Elk River received awards in three categories. These awards speak highly of the priority placed on economic development by the City and its EDA. As such, the EDA meeting on October 10 represents an opportunity to formally present these awards to the Commissioners. 7. Discuss EDA Enabling Resolution This item is outlined in greater detail in a separate memo in the agenda packet. 8. Transfer of Title. With the EDA Main Street site nearing its transformation into an interim park, it may be appropriate for the EDA to consider transferring the property's title to the City of Elk River. This is suggested in light of a provision in Minnesota Statutes which grants a tax exemption to an EDA's property for later resale for economic development purposes. This exemption cannot exceed a period of eight • years. Although it is the desire of the City and EDA to eventually redevelop this site, a transfer of title to the City may avoid a confrontation with the County as to whether or not it is appropriate for the EDA to own property that, by its very nature, appears to be a "park". Should the EDA be successful in identifying a user for this site in the future, title can easily be reconveyed from the City to the EDA to support the site's redevelopment. ACTION REQUESTED The EDA is asked to file a Quit Claim Deed conveying title of its Main Street redevelopment site to the City of Elk River. This transfer of title is subject to the City eventually reconveying it back to the EDA should it identify an appropriate user for the site. 9. Review and Permitting Process The writer of this memo regrets to inform the EDA that Linda Browning, Customized Training Consultant, Anoka-Hennepin Technical College, will not be facilitating this assignment as approved by the EDA at is September meeting. Following that • meeting, it was agreed that Ms. Browning would be submitting an execution copy of an agreement by and between the Technical College and the EDA. Since that time, four voice mail messages to Ms. Browning have gone unreturned, and therefore, the writer of this memo regretfully informed Ms. Browning that due to her inability to return phone calls, her services would no longer be required. As such, the EDA is back to square one. A call was placed to United Power Association to obtain a recommendation from its staff on a process facilitator. The writer of this memo is attempting to interview this individual so as to bring forth a recommendation on his/her services. Another option for the EDA is to have City staff undertake this process internally. Additional information will be available at the EDA's meeting. 10. Business Park Rezoning By now, EDA Commissioners are aware that the City Council-initiated action to rezone approximately 150 acres of land in the western part of the community to the B-P, Business Park designation failed for lack of • a four-fifths affirmative vote. This issue will be reconsidered by the City Council in mid-October after one of the property owners, Country Ridge Partnership, submits a "development plan" on its property affected by the B-P rezoning action. It is the desire of Country Ridge to have fifteen to seventeen acres of its land rezoned to C-3, Highway Commercial. 11. Custom Motors'Relocation In recent months, the City Council successfully undertook an action to rezone the Custom Motors site, 13913 Highway 10, from light industrial to a single family zoning designation. As a result, Custom Motors is faced with a five year relocation plan from its existing site to a new location. City staff understands that the owners of Custom Motors presented a purchase agreement to the owners of Ar-Mon Commercial Park. A portion of this property is located in Elk River and a portion of the property extends into Ramsey, Minnesota. To help facilitate this relocation, the City/EDA will likely participate with Custom Motors in a variety of financing options. Perhaps another element of the relocation plan is for the City-EDA- HRA to explore the merits of acquiring the eleven (±) acres from Custom Motors' existing site. This may take the form of creating a "redevelopment TIF District" or a "soils condition TIF District". On its own, the Custom Motors site is likely undevelopable because of its great depth and narrow frontage. However, assuming a.) public acquisition; b.) successful relocation of the Custom Motors' inventory; c.) a successful environmental clean up; and d.) the site being attached to an adjacent development, the City-EDA-HRA may successfully undertake a TIF project to help facilitate the Custom Motors' relocation. City staff will be touring the operations at 13913 Highway 10 in order to better determine whether or not the site meets the thresholds of a "redevelopment TIF District" or a "Soils Condition TIF District". Should the property meet one of the two thresholds, it may be appropriate to further explore the acquisition of this site. This in turn may require an appraisal to establish fair market values of land, buildings, etc. ACTION REQUESTED Depending on a tour of the site, the EDA is asked to authorize an appraisal of the Custom Motors site, 13913 Highway 10. Another option is to recommend to the City Council that it bear the cost of this appraisal. ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM • TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN,EXECUTIVE DIRECTO. In Y , DATE: OCTOBER 10, 1994 SUBJECT: PROPOSED MODIFICATION TO EDA ENABLING RESOLUTION INTRODUCTION At the September meeting, EDA Commissioners discussed a change in the EDA's meeting time, and, the timetable involved with revising the enabling resolution to add at least one more at-large commissioner at the expense of reducing the number of City Councilmembers on the EDA. The writer of this memo was asked to explore the proposed timetable for discussion at a future EDA meeting. Background on the timetable follows. • BACKGROUND Minnesota Statutes addresses how an enabling resolution can be modified. It requires that a city council conduct a public hearing on the proposed modification, after the notice of the public hearing is published once a week for two consecutive weeks. The first publication must not appear not more than 30 days from the date of the public hearing. With that background, the following timetable is offered relative to adding at least one more at-large commissioner, and thereby reducing the number of City Councilmembers on the Elk River EDA: October 10, 1994, Elk River EDA meeting- EDA discusses proposed modification;recommends that the City Council consider scheduling a public hearing on this matter. October 17, 1994 (Alternate date: October 24, 1994) City Council meeting- City Council sets public hearing date on proposed modification October 26, 1994 and November 2, 1994 (Alternate dates: November 2, 1994 and November 9, 1994) - Hearing notice published two consecutive times in the Elk River Star News • 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 • November 7, 1994 (Alternate date: November 14, 1994) City Council conducts public hearing on proposed modification November 15 through December 31, 1994 Solicit candidates for mayoral appointment to Elk River EDA January 9, 1995 -- EDA annual meeting; election of officers, etc. ACTION REQUESTED Should the Elk River EDA decide that it is beneficial to add at least one more at-large commissioner and thereby reduce the number of City Councilmembers on the EDA, it is appropriate to recommend to the Elk River City Council that it initiate a public hearing on this matter. Based on the above-referenced timetable, this gives the City Council approximately 45 days to solicit a candidate, and, to determine which City Councilmember no longer serves on the EDA. • s:eda:meetmg:enabkes.doc 411 RESOLUTION 90 - 5 A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION MODIFYING RESOLUTION 87-63 ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER WHEREAS, Minnesota Statute 469.090 et seq. (the Statute) authorizes the City of Elk River (the City) to establish an Economic Development Authority pursuant to the procedures and subject to the restrictions set forth therein; and, WHEREAS, on October 7, 1987, the City Council for the City of Elk River adopted Resolution 87-63 creating the City of Elk River Economic Development Authority (the Authority) ; and, WHEREAS, the City Council for the City of Elk River (the City Council) finds that it is in the best interest of the City and its residents to expand the Authority to broaden the representation on the Authority. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1 . Commissioners a. The members of the City Council of Elk River shall serve as the Commissioners of the Authority together with two residents of the City of Elk River appointed by the Mayor with the approval of the City Council, to serve "at large" . b. The terms of the Commissioners shall coincide with their term of office as members of the City Council. One of the at large Commissioner' s initial term shall expire on 12/31/91 and the other Commissioner' s initial term shall expire on 12/31/93 . Thereafter, all at large Commissioners shall serve six (6 ) 411 year terms . I c. Commissioners shall be compensated at the rate of One Hundred Dollars ($100 . 00 ) for each full month of service. In addition, Commissioners shall be reimbursed for actual expenses incurred in doing official business of the Authority. The following Resolution was introduced by Councilmember Holmgren and duly seconded by Councilmember Kropuenske . The following voted in favor of the Resolution: Mayor Tralle, Councilmembers Kropuenske, Dobel, Holmgren and Schuldt The following voted against: None The following were absent : // None . WHEREUPON the Resolution was adopted: ADOPTED: February 12, 1990 . • `/ James A. Tralle, Mayor ATTEST: ,21_,,d,4.4 - Sandra A. Thackeray, City Clerk • The City Council for the City of Elk River, Minnesota Resolution No. 87- 63 ENABLING RESOLUTION ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA. WHEREAS, Minn. Stat. § 469 .090 et seq. (the Statute) authorizes the City of Elk River (the City) to establish an Economic Development Authority pursuant to the procedures and subject to the restrictions set forth therein; and WHEREAS, the City Council for the City of Elk River (the City Council) finds that it is in the best interest of the City and its residents to establish an Economic Development Authority pursuant to the Statute. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows : 1 . Establishment of Economic Development Authority. There is hereby established in the City of Elk River an Economic Development Authority (hereinafter referred to as the "Authority" ) , effective upon passage by the City Council of this resolution. 2 . Commissioners . a. The members of the City Council of Elk River shall serve as the Commissioners of the Authority. b. The terms of the Commissioners shall coincide with their term of office as members of the City Council . c. Commissioners shall be compensated at the rate of One Dollar ( $1 . 00) for each regular or special meeting of the Authority attended. In addition, Commissioners shall be reimbursed for actual expenses incurred in doing official business of the Authority. 3 . Officers : a. The Authority shall annually elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer. A Commissioner must not serve as president and vice president at the same time. The offices of secretary and assistant treasurer need not be held by a Commissioner. b. The officers shall have the usual duties and powers of their offices, including those set forth in the Statute. 4 . Bylaws and Rules : a. The Authority shall adopt bylaws and rules to govern its procedures and for the transaction of its business . The records of the Authority shall be a public records, as provided by law. b. The Authority shall adopt an official seal . 5 . Employees : a. The Authority may employ an executive director and such other employees as it may require, and determine their duties, qualifications, and compensation.. b. The Authority may contract for the services of consultants as needed to perform its duties and exercise its powers. c. The Authority shall use the services of the City attorney as its chief legal advisor. d. The Authority may delegate to its agents or employees such powers or duties as it may deem proper. 6 . Conflict of Interest: Except as otherwise provided by law, a Commissioner, officer, or employee of the Authority must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any financial interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used in connection with any project. 7 . Powers : The Authority shall have all powers conferred upon Economic Development Authorities by the Statute, as amended from time to time, including: • a. The powers of a housing and redevelopment authority under Minn. Stat. § 469 . 001 et seq. ; b. The powers of a City under Minn. Stat. § 469 . 124 et seq. ; 2 . c. The powers and duties of a redevelopment agency under Minn. Stat. SS 469 . 152 et seq. ; • d. The power to create and define the boundaries of economic development districts, as provided by law; e. The power to acquire by lease, purchase, gift, devise, or condemnation proceedings property required to create economic development districts; and to dispose of property acquired, as provided by the Statute; f . The power to sign options to purchase, sell, or lease property; g. The right of eminent domain, as provided by the Statute; h. The power to make contracts for the purpose of economic development, as provided by the Statute; i. The authority to be a limited partner in a partnership whose purposes are consistent with the Authority' s purpose; j . The power to acquire rights or an easement for a . term of years, or perpetually, for development of an economic development district; k. The power to buy the supplies and materials it needs to carry out the purposes of the Statute; 1 . The right to receive public property, as provided by the Statute; m. The power to sell or lease land held by it for economic development in economic development districts; n. The power to operate and maintain a public parking facility or other public facility to promote development in an economic development district; o. The right to cooperate with or act as agent for the federal or state government or other public body to carry out the Statute; p. The power to study and analyze economic development needs in the City and ways to meet the needs; to study the desirable patterns for 111 land use for economic development and community growth, and other factors effecting local 3 . economic development in the City; to make the result of the studies available to the public and to industry in general; to engage in research and to disseminate information on economic development within the City; q. The power to carry out public relations activities to promote the City and its economic development, as permitted by the Statute; r. The right to accept conveyances of land from all other public agencies, commissions, or other units of government, if the land can be properly used by the authority in an economic development district to carry out the purposes of the Statute; s . The power to develop and improve the lands in an economic development district to make it suitable and available for economic development uses and purposes; to fill, grade, and protect the property and do anything necessary and expedient, after acquiring the property, to make it suitable and attractive as a tract for economic development; and to lease some or all of its lands or property; and may set up local improvement districts in all or part of an economic development district; t. The power to borrow money in anticipation of bonds, after bonds have been authorized, as provided by the Statute; u. The power to issue general obligation bonds, pursuant to the procedures set forth in and as provided by the Statute, and when authorized by two-thirds ( 2/3 ) majority vote of the City Council, to: i . Secure funds needed by the Authority to pay for acquired property; or ii. For other purposes as provided in the statute. v. The power to issue revenue bonds pursuant to the procedures set forth in and as authorized by the Statute; w. The power to sell or convey property owned by it within the City or an economic development district pursuant to the procedure set forth in 410 the Statute, if it determines that the sale or conveyance is in the best interest of the City or 4 . district and its people and that the transaction furthers the Authority' s general plan of economic 411 development; x. The power to advance its general fund money or its credit or both without interest for the objects and purposes of the Statute, as allowed by the Statute; y. The right to request that the City levy a tax for the benefit of the Authority, pursuant to the procedures and as provided for in the Statute. 8 . Existing Projects : a. The Authority shall have no control nor authority over any existing economic development or redevelopment project in the City, unless specifically so provided by subsequent resolution of the City Council . If the City Council adopts a resolution transferring control, authority, and operation of any existing project to the Authority, the Authority shall accept control, authority and operation of the project; b. When taking control of an existing project, the Authority may exercise all of the powers that the JI, governmental unit establishing the project could exercise with respect to the project and shall covenant and pledge to perform the terms, conditions, and covenants of any bond indentures or other agreements executed with respect to the project. 9 . Banks and Audits : a. Every two years the Authority shall name a national or state bank within the state as a depository, in the manner provided by the Statute. b. The financial statements of the Authority shall be prepared, audited, filed, and published in the manner required by the Statute. 10 . Annual Reports : The Authority shall prepare and submit all annual • reports required by the Statute, including: a. An annual report stating whether and how this enabling resolution should be modified; • b. An annual budget; 5 . c. An annual report giving a detailed account of the Authority's activities and its receipts and expenditures during the preceding year. 11 . Modification of Enabling Resolution: This enabling resolution, or any part thereof, may be modified at any time by the City Council, as provided by the Statute. The following Resolution was introduced by Councilmember Schuldt and duly seconded by Councilmember Dobel . The following voted in favor of the Resolution: Mayor Gunkel Councilmember Schuldt Councilmember Dobel The following voted against: The following were absent: Councilmember Holmgren Councilmember Tralle Whereupon the Resolution was adopted: 411 ADOPTED: October 7, 1987 Estelle Gunkel, Mayor ATTEST: Pat Klaers, City Administrator • \• PKB:A06 6 .