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EDSR MEMORANDUM 03-14-1994 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY 1111 MEMORANDUM TO: ECONOMIC DEVELOPMENT AUTHORITY FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATOR DATE: MARCH 10, 1994 SUBJECT: AGENDA MEMO FOR MARCH 14, 1994 EDA MEETING 4. EDA EXECUTIVE DIRECTOR POSITION By way of City Council action at it s meeting on February 14, 1994, it is appropriate to: a. Accept the resignation from Patrick D. Klaers as EDA Executive Director: b. Appoint Bill Rubin to the position of EDA Executive Director. ACTION REQUESTED With separate motions, the EDA is asked to: a. Accept the resignation of Pat Klaers as EDA Executive Director: b. Appoint Bill Rubin as EDA Executive Director. • 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. FINANCIAL UPDATE The following is a summary from Finance Director Lori Johnson: Micro Loan Fund The Micro Loan Fund cash balance as of February 28, 1994, is $121,065.21. As of March 10, 1994, all March loan payments are current with the exception of PureSteam. There are currently two loans totalling $40,000 which have been approved, but have not closed. ACTION REQUESTED This is an informational item only and no action is requested. 7. ICE ARENA FINANCIAL FEASIBILITY STUDY At its February 14th meeting, the EDA appointed Finance Director • Lori Johnson, EDA President Jeff Gongoll, and EDA Vice-president Pat Dwyer to a committee for the purpose of interviewing and recommending a company to complete an independent financial feasibility study related to the proposed construction of a second ice arena. The original interview times were postponed and rescheduled for Friday, March 11, 1994. Therefore, the committee's recommendation will be presented to the EDA at its meeting on March 14th. Before finalizing the committee's recommendation, the EDA may also wish to formalize its relationship with the Elk River Youth Hockey Association regarding how the Association intends to repay the EDA in the event the study concludes that a second arena is not feasible. ACTION REQUESTED The EDA is asked to accept the screening committee's recommendation on a company to complete an independent feasibility study on the proposed construction on the second ice arena in Elk River. By way of action at its meeting on February 14th, the cost of this study shall not exceed $15,000. • • 8 EDA MAIN STREET REDEVELOPMENT SITE On March 3, 1994, a workshop session was held on the above- referenced site. The following persons were in attendance: Jeff Gongoll (EDA), Patrick Dwyer (EDA-Bank of Elk River), Paul Ammerman (Chamber), Don Heinzman (Star News-Downtown Development Corporation), Jim Mulroy (Development Corporation), Jackie Schuelein (Chamber), Gary Santwire (Developer), Dwane Kropuenske (1st National Bank), Charlie Houle (Chamber), Dick Gongoll (1st National Bank), Bud Houlton (1st National), Shawn O'Laughlin (Architect), Chuck Hartell (Realtor), Linda Frederickson (Chamber), Doug Moe (Architect), Rob VanValkenberg (Development Corporation), Keith Holme (Development Corporation), Kristy Pepin (Citizen), Chuck Christian (Chamber-developer), John Plaisted (1st National Bank), and the City staff(Pat Klaers and Bill Rubin). Due to a lack of EDA Commissioners attending this meeting, an official transcript of the discussion was not kept. Rather, the group discussed numerous items relating to the downtown as a whole and the EDA site specifically. Thoughts on the EDA site ranged from: 1. Developing a marketing plan which included packaging the project; 2. Creating a vision for the EDA site and for the balance of the Central Business District; and, 3. Recognizing what is feasible in the Elk River market, and, what's allowed as permitted uses in the C-1 zoning district will ultimately determine how the EDA site is developed. All in all, the topics of discussion during this meeting were well thought out: It was agreed that some of these concepts would be discussed at the EDA's March meeting. This group, or perhaps sub- groups appeared to be willing to meet again to further discuss the central business district and the EDA's Main Street site. EDA Commissioners Jeff Gongoll and Pat Dwyer will likely provide other insights from this meeting. • • 9. TESCOM CORPORATION TIF REIMBURSEMENT Staff is expecting a request for TIF reimbursement from Tescom Corporation. This request is related to the TIF Plan for TIF District No. 9 that was approved by the EDA and the City Council in March 1993. Pursuant to the development agreement between the EDA and Tescom, the company would receive $153,000 in TIF assistance. Of this amount, $100,000 was attributable to the land value, leaving $53,000 that is attributable to general on site utility extensions and site preparation costs. This amount will be funded "internally" by the EDA and recovered along with the land write down costs beginning in 1995. ACTION REQUESTED The EDA is asked to authorize a TIF reimbursement to Tescom Corporation in the amount of$53,000. 10. ELK RIVER RETAIL SALES ESTIMATES A separate memo has been prepared for this topica • 11. PROSPECT R PECT STATUS REPORT The prospect status report has been sent under separate cover.