12.0. EDSR 05-09-1994 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
Ill
MEMORANDUM
TO: ECONOMIC DEVELOPMENT
AUTHORITY
FROM: WILLIAM RUBIN, EXECUTwyq
DIRECTOR
DATE: MAY 5, 1994
SUBJECT: PROSPECT STATUS REPORT
The following is a summary of new industrial and commercial prospects that
have expressed an interest in locating in the City of Elk River since the last
EDA meeting.
NEW PROSPECTS
• 1. Top Hits Entertainment - This is a Plymouth-based video distribution
business. The company has found a niche in the distribution of
outdoor, hunting, fishing, and family videos. These videos are
distributed nation-wide to video shops, sporting good stores, grocery
stores, and the like. Because of continued growth, the company seeks
to open a separate telemarketing operation in a community adjacent to
its Twin Cities location. The company seeks about 3,000 square feet of
open office space that can be subdivided with partitions and cubicles
for as many as 20 to 30 telemarketing persons. Job training is a
priority for this company and certain programs administered by the
Private Industry Council (PIC) may be applicable. The company was
referred to two commercial-office spaces along Dodge Avenue NW.
Follow-ups with the company will continue.
2. LTC Medical - This is an Elk River company that recently relocated its
operations from New Brighton. The company leases approximately
5,000 square feet of space from Jerry McChesney. The company
designs and manufactures rocking reclining chairs for nursing homes,
plus admittance and discharge chairs used in hospitals. A basic chair
sells for just under $800 while other models are in the $1,200 to $1,300
range. The company may have working capital needs as it increases
• its production activity.
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
3. A & J Machinery Company - This company is currently officed out of a
• home in the 19800 block of Brentwood Lane. The company distributes
industrial machinery and equipment in a five-state area. The
equipment arrives in Elk River via Morrell Transfer and is stored in
the mini-storage garages next to the Morrell site. The equipment
remains there until it is sold. Because of continued growth, and,
because of the high cost of the mini-storage, the company seeks more
permanent quarters - including enough space for an office, thereby
eliminating the office in the home.
4. C.B. Commercial Real Estate Prospect An agent for C. B. Commercial
inquired about the immediate availability of manufacturing space
totaling 6,000 square feet to 8,000 square feet. With McChesney's
space and Alltool's space occupied, no other existing buildings are
available. The agent indicated that the next option for his client would
be to consider newly-constructed space.
5. Royal Engineering - This is a sheet metal stamping operation
currently headquarted in Blaine, Minnesota. The company has been in
business for eight years and currently has 24 employees. Because of
extensive growth, Royal Engineering has outgrown its 12,000 square
foot facility and seeks to construct a 25,000 to 30,000 square foot
• facility. Various sites in the Elk River Industrial Park were discussed.
In addition, specific financing programs were also identified. The
writer of this memo is attempting to` arrange a meeting with
representatives of Royal Engineering.
6. Commercial Properties of Minneapolis' Prospect - An agent for
Commercial Properties inquired about the availability of
manufacturing space totaling 60,000 square feet. The agent indicated
that another option for his client would be the construction of its own
facility.
7. Chamber Inquiry - The Chamber assisted a prospect seeking, 6,000
square feet to 8,000 square feet for the storage of frozen baked goods.
8. Saxon Motors Site - The real estate agent that has listed the Saxon
Motors site is working with a Fridley-based company named Hydraulic
Specialties. This company repairs hydraulic equipment and also sells
rehabilitated machines. Because of the "highway business" zoning on
this site, this company is not considered a good fit here. Alternative
locations have been suggested.
PREVIOUSLY LISTED PROSPECTS
•
1. Loon Photographic, Inc. - Two meetings have been held with this
Golden Valley-based photographic specialty products company. This
company started nine years ago and has currently opened offices in
Atlanta, Georgia and in Tracy, California. The company seeks to
acquire or to construct a facility of approximately 10,000 square feet in
size. One of the meetings was held in Elk River and two
representatives of the company previewed various Elk River sites. The
representatives were very interested in the potential business park
development immediately west of the fairgrounds.
2. Smith Office Redevelopment Project - Jerry and Tim Smith have
formed a partnership named T. J. Properties and this partnership is
proposing the construction of a two story office building to be located at
403 Main Street (corner of Freeport Avenue and Main Street). T.J.
Properties requested TIF assistance to assist with certain site
preparation costs associated with the removal of the single family
home, etc., on this site. This matter has been referred to the HRA for
consideration.
3. Trend Scientific - This New Brighton-based medical products company
• is owned by a Ramsey, Minnesota resident. The company seeks to
acquire a site suitable for the construction of a 30,000 square foot
facility. Future expansions will bring the total square footage to
50,000 square feet. The real estate agent assisting Trend Scientific
with the site selection assignment will be meeting with the company
owner during the week of May 9. In preparation for this meeting, the
agent contacted the City for an update on the status of the business
park development and a refresher on business financing
programs/incentive programs.
APS 19 194 .<,
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ANOKA ELECTRIC COOPERATIVE
• 2022 NORTH FERRY STREET ANOKA,MINNESOTA 55303
PHONE: (612)323-2600
MN WATTS 1-800-642-1672
April 15, 1994
Mr. Bill Rubin INFO
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Dear Mr. Rubin:
During February of this year, you received a letter from AEC notifying you of the proposed
Rural Economic Development Loan Program that was being reviewed by Congress. On March
31, 1994 AEC received from the REA (Rural Electrification Administration) the final Rule on
the program as approved by Congress and published in the Federal Register on March 14, 1994.
From both the information we received, and from telephone conversations with REA
representatives; AEC has learned that projects located within local government jurisdictions with
populations greater than 2,500 are not eligible for REA Rural Economic Development Loan and
Grant funding.
• The 2,500 population requirement is cited in Subpoint B- Rural Development Loan and Grant
Program (1703.12 definitions). The Subpoint discusses the fact that approved projects must be
in rural areas, as defined in section 13 of the Act (7 U.S.C. 940c). Additionally, local
jurisdictions with less than 2,500 population located within the Metropolitan Statistical Area
(MSA) will not receive the required points necessary for project funding. Such jurisdictions
cannot be defined as "rural areas that are normally underdeveloped and financially depressed so
that funding by REA does not pose undue competition or other adverse effects." The rural area
requirement holds true for loans and revolving loan funds as well as grants in conjunction with
loans.
We apologize for any inconvenience we have caused you in our inquiry to determine local
development needs and desires, and in our investigation of opportunities to provide economic
assistance by serving as a conduit for federal funding.
If you have any questions, feel free to contact Doug Uhrhammer, AEC's Manager of
Community Development and Public Affairs at 323-2723.
Sincerely,
AN i; ELECTRIC COOPERATIVE
Ao
Rick Newland
• General Manager
cc: Doug Uhrhammer
"Committed to customer satisfaction
through service, leadership and involvement."
APR 18 '94 08:12AM BANK OF ELK RIVER P.1/1
JAMES L. OBERSTAR
DISTRICT OFFICES;
OW Or$i' rCT,MINNESOTA BRAINERD CITY HALL
2366 RArBURN HOUSE OFFICE BUILDING 501 LAUREL STREET
WASHINGTON,DC 20515-2308 d BRAINERC,MN 58401
(202)225-8211 QCongres1 of ttje ? niteb 'tater C(218)928-1400
W I0LM CITY HALL
COMMITTEES 316 LAKE STREET
PUBLIC WORKS AND *mat of 3hepreoentatibeg CHISHOLM,MN 55719
TRANSPORTATION (218)254-6761
CHAIRMAN: fillaghington, MC 20515-2308 231 FEDERAL BUILDING
SUBCOMMITTEE ON AVIATION DULUTH,MN 56802
FOREIGN AFFAIRS (218)727-7474
ELk RIVER CITY HALL
April 12, 1994 ,13065 ORONO PARKWAT
ELK RIVER,MN 55330
(812)241-0188
Patrick H. Dwyer
The Bank of Elk River
630 Main St.
Elk River, MN 55330
Dear Pat; • - _ _ _ _. .. • - -- - -
Thank you for your very thoughtful follow-up letter
requesting a meeting to discuss further discuss the industrial
park project. I will be delighted to meet with your committee.
Unfortunately, I am not able to give you a definite date at
this time. As soon as I have a better idea of my forthcoming
schedule, I will be back in touch with you. In the meantime,
should there be any change in your plans, or if you have any
additional information relative to the proposed meeting, please
contact me or Bill Richard of my Washington Office.
• With every good wish, and again, thank you for your
thoughtful invitation.
Sincerely,
es . Oberstar, M.C.
JLO/br •
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' - ',tac' Fax Memo DMFX14
411
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
April 19, 1994:
oP
Honorable James L. Oberstar
U.S. House. of Representatives
c/o Mr. Bill Richard
• 2366 Rayburn.House Office Bldg
Washington, D.C. 20515-2308,. -
Dear Mr. Richard
I wish to acknowledge receipt, of Representative Oberstar's April 12, 1994
letter regarding a future meeting to discuss a business park/industrial:park
project in Elk River, Minnesota Due to Jim's busy schedule in Washington,
the timing of this meeting can be at his convenience:
To prepare you for our meeting, I Have enclosed an overview of the proposed
- business park::': Theowner and developer of the park will likely be a public '
> agency--the Elk River Economic Development Authority (EDA): For that
reason,we are hopeful that a state or federal program can be accessed to help
fund the infrastructure
- Should you or Representative Oberstar have any questions, please feel free to
call me at 612/441-1000. ;Bill Rubin, the EDA's Executive Director, is also
available to assist you: He can be reached at 612/441-4905. _
Sine ly yours,
Patrick.H. Dwyer, Chair
EDA Business Park Task Force
•
PHD:dk
P.O. Box 490 • 1306.5 Orono Parkway • Elk River, MN 55330-1743• (612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
APR 2 6 1994
BETTY A. ADKINS• yStA
Senator 19th District 11
1655 Kadler Avenue NE St. Michael, Minnesota 55376
001k
Phone:497-2693
Office: Senate
309 State Capitol
St. Paul, Minnesota 55155 State of Minnesota
Phone: 296-5981
April 25, 1994
William Rubin
Economic Development Coordinator
Elk River Economic Development Auithority
P. 0. Box 490
Elk River, Minnesota 55330-1743
Dear Bill:
It is not unusual, but this year there were no bills introduced in the Senate which
were comparable to H.F. 3070, H.F. 2654 or H.F. 3180. Further, although all
three bills were referred to the House Tax Committee, no hearings were
scheduled. Because there have been no hearings, the provisions are not included
• in any comprehensive tax legislation this year and I will have no chance to
support or vote on the provisions.
I'm not sure why no Senate sponsor was found or why the House declined to
have hearings. It was probably the shortness of time available this session as I
have heard from no organised opposition to the changes.
I thank you for calling this to my attention and I hope we will have the
opportunity, next year, to look at the provisions.
I am well aware of the work of the Elk River Economic Development Authority
and applaud you for it. Please keep in close contact with me and let me know
what I can do to help.
Sincerely,
)621-1--,Th"
BETTY ADKINS
State Senator -- District 19
Chair, Metropolitan and Local Government Committee
•
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