EDSR MEMORANDUM 03-14-1994 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
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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.