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EDSR MEMORANDUM 09-12-1994 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, EXE CUTIV 12 DIRECTOR DATE: SEPTEMBER 12, 1994 SUBJECT: AGENDA MEMO FOR THE SEPTEMBER 12, 1994, EDA MEETING 5. September Financial Update The following is a summary from Finance Director Lori Johnson: Micro Loan Fund On August 31, 1994, the Micro Loan Fund • had a cash balance of$148,715.17. As of September 8, 1994, all loan payments are current with the exception of Americlnn and Beaudry Convenience which have not made their September payments. Block Grant Micro Loan Fund - The balance in this fund was $10,645.17 as of August 31, 1994. ACTION REQUESTED This is an informational item only and no action is requested. 6. Recommendation on Business Park Rezoning On September 19, the Elk River City Council will conduct a public hearing on its initiative to rezone approximately 150 acres of land in the western part of the community to the B-P, Business Park zoning designation. A map outlining the parameters of the B-P area is included in the agenda packet. The EDA Business Park Task Force met on August 16 and discussed the B-P rezoning. It was the consensus of the Task Force to support the rezoning action. The initial • public hearing on the B-P rezoning was conducted by the Elk River Planning Commission on August 23, 1994. The Planning Commission 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 EDA Agenda Memo Page 2 September 12, 1994 voted unanimously to the City Council that it approve the B-P • rezoning. A second recommendation from the Planning Commission was that of adjusting the PUD/B-P line west of the Government Center so as to run parallel with US Highway 10 and County Road 30. It is also appropriate for the Elk River EDA to forward its recommendation to the City Council when it conducts its public hearing on September 19. ACTION REQUESTED The Elk River EDA is asked to recommend to the City Council that it approve the B-P, Business Park zoning designation to certain properties located along the western area of the community. 7. Conflict of Interest Ordinance EDA Commissioners will recall that an inquiry was made to the City Attorney relating to the impact of President Gongoll's employment at Riverside Development on the City's Conflict of Interest ordinance. Subject to changes in the distribution of the Prospect Status Report, the City Attorney concluded that President Gongoll was not in • violation of the ordinance relating to a "ownership interest" and his dealings with the City. However, a section in the ordinance precluded City officials from acting as an agent or representative for another in any matter pending for the City or Council: This section of the ordinance was subsequently deleted by Council action on June 20, 1994. This action enabled President Gongoll to make presentations to the Planning Commission, City Council, etc., on behalf of Riverside Development. No other action was taken on the section in the ordinance which prohibits City officials from having an interest in any business which has contacts or other direct dealings with the City. At a future City Council meeting, this section of the ordinance, along with other related elements, are expected to be discussed. Since the Conflict of Interest ordinance affects the EDA, HRA, and Planning Commission, etc., these agencies will have an opportunity to review the proposed revisions subject to Council action. ACTION REQUESTED The Elk River EDA is asked to review the proposed changes to the Conflict of Interest ordinance and recommend these changes to the • City Council. EDA Agenda Memo Page 3 September 12, 1994 • 8. Update on CBD Issues A topic at the last two EDA meetings has been that of the Elk River Central Business District (CBD). In fact, following its August meeting, the EDA hosted a joint workshop on this topic with representatives of the business community, HRA Commissioners, and City staff, etc. This topic was also discussed at the HRA's August 11 meeting. In an effort to keep the EDA updated on this matter, the following is offered: • At the HRA meeting, the Commissioners considered an initiative to solicit various Requests for Proposals (RFP) from various builders, developers, small business concerns, etc. The RFP relates to the three contiguous properties located at King Avenue and Main Street. These properties include the former clinic, the Kuhn-Sommers home, and Sherburne County Abstract and Title building. The RFP is an attempt to alert potential users of the availability of these properties, all of which are currently listed for sale. The RFP suggests that potential HRA grant funds could be available to assist • in the development/redevelopment of this site. The deadline for submitting a proposal to the HRA is September 14, 1994. The HRA is expected to meet on September 20 to hear presentations related to the proposals. • The Elk River HRA also adopted its 1995 budget on August 11. A proposed expenditure in 1995 is that of exploring the merits of a CBD riverfront corridor/pathway and perhaps constructing the pathway's initial phase in the CBD. The HRA allocated $17,000 towards this expenditure. In addition, the writer of this memo requested that the Elk River Park and Recreation Commission consider a match of funds so that the corridor/pathway becomes a joint effort from both agencies. The Park and Recreation Commission will meet on September 14 to further explore this concept. 9. Request to Revise the 1995 EDA Budget This item is outlined in greater detail in a separate memo in the agenda packet. EDA Agenda Memo Page 4 September 12, 1994 • 10. Proposal from Anoka-Hennepin TC Included in the agenda packet is a proposal from Linda Browning, a customized training consultant at Anoka-Hennepin Technical College, 1355 West Highway 10, Anoka, Minnesota. The proposal attempts to address the City's review and permitting process so as to better improve it and ensure that there are no gaps in the process. Ms. Browning is an excellent fit for this assignment as she was formerly employed by the City of Calgary during the time its population mushroomed. Consequently, she is familiar with the gaps and pitfalls that may occur in a rapidly-growing community. She reviewed and implemented similar processes for the City of Calgary and ,Ms. Browning brings a wealth of experience to this assignment. It is hoped that members of the EDA's review and permitting process will have an opportunity to meet personally with Linda Browning prior to any action on this proposal. At this writing, a meeting is scheduled, and, perhaps the Task Force members can bring forth a recommendation on the proposal from Anoka-Hennepin Technical College. • 11. Loan Request from Elk River Auto Mall L.L.C. This item is outlined in greater detail in a separate memo in the agenda packet. The enclosed information is a copy of a memo that was sent to the EDA Finance Committee on this matter. A Finance Committee meeting has been scheduled for the afternoon of September 12, 1994. A verbal update on the recommendation from the Finance Committee will be made to the EDA. ACTION REQUESTED Assuming a positive recommendation from the Finance Committee, the EDA is asked to approve a Micro Loan in the amount of $50,000 to Elk River Auto Mall L.L.C. The loan will be secured by: • A second real estate mortgage; • A Promissory Note; and, • A Guaranty of Mortgage. The loan will be repaid over fifteen years beginning with an interest rate of 7.75 percent (the current prime rate). The rate will be adjusted • at six month intervals - floating with prime. EDA Agenda Memo Page 5 September 12, 1994 • 12. Other Business 12.1. Change EDA Meeting Time The Elk River City Council desires that the EDA change its meeting time from 7:00 p.m. to 6:00 p.m. Issues to consider with this change include: • Scheduling of City Council meetings that would presumably begin at a stated time following the EDA meeting. A pitfall here is that the Council schedules a meeting to begin at, say, 7:00 p.m., but the. EDA meeting goes from 6:00 p.m., to, say, 8:00 p.m. If the City Council desires to meet and conduct business on the second Monday of each month, perhaps the EDA is better served rescheduling its monthly meeting to, say, the second Tuesday of each month - thereby giving the City Council exclusive use of every Monday. • Does a 6:00 p.m. starting time serve the residents of • the community, particularly those residents that are likely commuting from Minneapolis-St. Paul? • If the EDA changes its start time to 6:00 p.m., does that mean it does not conduct public hearings until, say, 7:00 p.m. to ensure residents can attend the public hearing? This issue may be further complicated if the City Council desires to meet after an EDA meeting at, say, 7:00 p.m. • Changing the starting time to 6:00 p.m., does not require a by-law change. However, if the EDA desires to have its annual meeting in January begin at 6:00 p.m., a by-law change is necessitated. This process will likely take 60 days. 12.2. Change November Meeting Date Regardless of the above-described request, the writer of this memo respectfully requests that the EDA change its meeting date in November from Monday, November 14, 1994, to Tuesday, November 15, 1994, due to a personal conflict.