5.0.-11.0. EDSR MEMORANDUM 10-11-1993 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
a
TO: ECONOMIC DEVELOPMENT AUTHORITY
FROM: WILLIAM RUBIN, ED COORDINATO
DATE: OCTOBER 6, 1993
SUBJECT: AGENDA MEMO FOR OCTOBER 11, 1993, EDA MEETING
5 . FINANCIAL UPDATE
The following is a summary from Finance Director Lori
Johnson:
Revolving Loan Fund:
The Revolving Loan Fund had a cash balance of
$187,719 . 15 on September 30, 1993 . The EDA
authorized three loans in September totalling
$82,500, bringing the balance available to just over
$105,000. In addition, the Indy Lube loan of $24,700 ,
will likely close in October - further reducing the
balance to approximately $80,300 . All September loan
• payments are current and all October payments are
current with the exception of Roma Tool, Alltool, and
PureSteam.
ACTION REQUESTED
This is an informational item only and no action is
requested.
Economic Development Authority
The Economic Development Authority had a cash balance
of $70,521 .52 as of September 30, 1993, and expenses
payable in the amount of $11,261 . 03 . A Statement of
Expenses Payable detailing the items included in the
reimbursement is attached.
ACTION REQUESTED
The EDA is asked to approve payment of $11,261 . 03 to
the. City of Elk River.
6 . TAX INCREMENT FINANCING ASSISTANCE KJELLBERG'S CARPET
gik The writer of this memo is expecting an application for
Tax Increment Financing assistance from Kjellberg's Carpet
and Interiors . This TIF request relates to the EDA Main
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
approximately 6,000 total square feet (3, 000 s . f. per
•
floor) . Further, this writer understands that the request
for TIF assistance would likely only address the costs
associated with site preparation, foundation
stabilization, fill and compaction, etc. Land would
likely be conveyed for a nominal fee ($1 . 00) and its
value, approaching nearly $120, 000, would not be
recovered. This issue was addressed later in the memo.
Below is a proposed timetable to complete the Kjellberg
TIF request and TIF Plan approval:
October 11 - EDA authorizes the development of a
TIF Plan; EDA schedules a public hearing to consider
the TIF Plan; EDA also recommends that the City
Council authorize a public hearing to consider the
adoption of the TIF Plan.
October 11 - City Council sets a public hearing
date to consider TIF Plan.
Mid October TIF Plan is sent to School District
and County.
October 26 School Board Meeting
• October 28 Planning Commission reviews TIF Plan.
November 2 County Board meeting
November 3 - Public Hearing notices published in
the Star News
November 15 EDA conducts public hearing; reviews
and adopts TIF Plan (this is a special EDA meeting
date)
November 15 City Council conducts public hearing
on TIF Plan
This request for TIF assistance would result in the
creation of a "redevelopment TIF district" . Increments
from new property taxes within these districts can be
collected for over 20 years. In addition, the state aid
loss penalty is "phased-in" and does not reachthe
severity levels (that is a "full" penalty) until the
district is approximately 20 to 21 years old.
New property taxes generated from this redevelopment
project would likely only recover the EDA' s expenses
associated with site preparation, etc. While land would
• be completely written down, a safeguard to discourage Mr.
Kjellberg from speculating on this redevelopment project
would be to require full or partial repayment of the value
III be completely written down, a safeguard to discourage Mr.
Kjellberg from speculating on this redevelopment project
would be to require full or partial repayment of the value
of the land during, say, the first ten years of the
project.
ACTION REQUESTED
Assuming that a request for TIF assistance is submitted,
the EDA is asked to
a. Schedule a public hearing for November 15, 1993,
to consider the adoption of said plan; and,
b. Authorize the preparation of a Tax Increment
Financing Plan for the EDA Main Street
redevelopment project; and,
c. Recommend that the City Council consider
scheduling a public hearing for November 15,
1993, to consider adoption of the TIF Plan.
7 . ADDITIONAL LENDERS TO THE FIRST TIME HOMEBUYER PROGRAM
Staff is in receipt of two requests from home mortgage
411 lenders that wish to be added to the EDA's list of lenders
associated with the first time homebuyer program. The
lenders are Firstar Home Mortgage Corporation and Norwest
Mortgage. Currently, First National Mortgage of Elk River
is the EDA' s only designated lender to this program.
ACTION REQUESTED
The EDA is asked to add Firstar Home Mortgage Corporation
and Norwest Mortgage to its list of designated lenders
associated with the first time homebuyer program.
8. BUSINESS PARK FINANCING OPTIONS
Direction on various financing options will be obtained
earlier in the evening of October 11th when the City
Council discusses this matter.
9 . REVOLVING LOAN PROGRAM
The writer of this memo is suggesting a minor change to
the Revolving Loan Program. The proposed change is that
of a name change renaming it the "EDA Micro Loan
• Program" . This change is perhaps more reflective of the
intended purpose of the loan program.
• ACTION REQUESTED
The EDA is asked to consider renaming the EDA Revolving
Loan Program the "EDA Micro Loan Program" .
10 . VIDEO PROJECT
Numerous scenes have been shot over the last two weeks to
coincide with the video presentation' s script. Staff and
the project' s vendor, Diversified Marketing Resource, are
both satisfied with the progress to date.
Enclosed in the agenda packet is the "shot grouping" of
the Elk River video presentation. These shots, in turn,
coincide with the narration.
11 . PERMITTING AND REVIEW TASK FORCE
Pat Dwyer and Jeff Gongoll will give a verbal update on
the direction of this Task Force. Due to scheduling
conflicts, vacations, and business travel, nothing has
occurred since the Task Force was created at the September
meeting. However, Pat and Jeff will provide the EDA
• Commissioners with a suggested course of action on October
11th.
12 . PROSPECT STATUS REPORT
The Prospect Status Report has been sent under separate
cover.
•
•
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
Statement of Expenses Payable
7-Oct-93
For Period Ended September 30, 1993
Personal Services:
EDA Pay $2,100.00
$2,100.00
Professional Services:
Maier Stewart & Assoc. 299.88
Advertising: 299.88
Print Central 155.00
Greta Wedell (MN Ventures) 1,044.00
ECM 836.56
Commissioner of Transportation 567.00
• 2,602.56
Newsletter & Targeted Marketing:
Elk River Printing 0.00
Diversified Marketing Resource, Inc. 1,963.33
CEP 249.44
Vernon Company (Puzzles) 804.42
3,017.19
Other:
LMCIT (Insurance) 0.00
US Postmaster 962.42
MN Extension Service 10.00
Elk River Area Chamber of
Commerce 268.98
Elk River Area Chamber of
Commerce (4th of July) 2,000.00
' 3,241.40
TOTAL DUE CITY OF ELK RIVER $11,261.03
•
LPO 201
Milf IVrn APR 1 2 1993
Norwest Mortgage, Inc.
411 NORWEST MORTGAGECREW
Bank Processing Center
DIVES 120 France Place Office Bldg
3601 Minnesota Dr
Bloomington MN 55435-5859
(612)835-7519
April 1, 1993
Mr. William Rubin
City of Elk River
P.O. Box 490
Elk River, MN 55330
Re: NHFA City Participation Program
Dear Mr. Rubin:
Norwest Mortgage is interested and willing to participate
as lender in the proposed 1993 City Participation Program
for the City of Elk River.
Our Company is familiar with MHFA guidelines and is
experienced in processing that type of loan. If we are
successful in being designated as originating lender, we
would want our Maple Grove Branch to be the contact for
taking applications. Their address is:
• Norwest Mortgage, Inc.
7378 Kirkwood Court
Maple Grove, MN 55369
Phone No. 424-1400
Bob Maxwell, Sales Representative
If you need further information, please contact Marie
Amberson at 835-7519.
Sincerely,
Michael C. Chamberlain
Senior Vice President
gma
cc: John Roti„ Maple Grove Branch Sales Manager
Marie Amberson, Bank Processing Center Manager
•
Firstar Home Mortgage Corporation
UCT - 5 19
• FIRSTAR
s�..
October 4, 1993
Mr. Bill Rubin
Elk River City Hall
P.O. Box 490
Elk River, MN 55330
Dear Bill:
Firstar Home Mortgage Corporation would like to request to be put
on the city's designated list as a lender for the Elk River MHFA
City Participation Program. We have an office in the city of Elk
River and we are very interested in being a prominent lender in the
Elk River community. We would appreciate the opportunity to assist
Elk River citizens in obtaining their first home.
If selected to participate in the City Participation Program, Jim
and Pat Rossman will be the Firstar Home Mortgage Corporation
representatives to contact for financing. Their phone number is
• 612/566-7767. We look forward to working together with the city of
Elk River in this MHFA program, as well as any other community
programs that may arise in the future.
Thank you in advance for your consideration.
Sincerely,
':,1,Q-1 gi_y2,*k.h.0 -,,,__
Gr. g Swenson
Branch Manager
•
626 S, gay
S eBGG
Brooklyn Center. [Minnesota 55436-2tCC
612/566-7767
612/566-2951 FAX
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SHOT GROUPING - ELK RIVER
SHOT NAME SHOT SHEET NUMBERS DATE OF SHOOT
River Scenes #1,5,32 Oct. 2, 1993
Variety Show #2,32 Oct. 2, 1993
Area Shots #3,6,10,11,13, 16,23,24,
25,26,27,28,30,31,32,8 Sept. 28, 1993
Aerial Shots #4 Sept. 28, 1993
DARE House #7 In The Can
• High School #8,20,21,32 ?
Elementary School #18 ?
Middle School #8,19 ?
Kelley Farm #9 Oct. 2, 1993
Metrodome #14,33 ?
City Hall Round Table #17 Sept. 28, 1993
Universities #22 Photos/Footage
Interior Shots Needed: AliTool, TesCom, Elk River Machine, UPA,
Cre-Tex, Bank of Elk River, First National Bank, Doctor's Offices
Guardian Angel Nursing Home or Apartments
GRAPHICS: #4, 12,15,25
411
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Elk River
Shot Sheet
VIDEO AUDIO
FADE UP FROM BLACK NATURE SOUNDS
1. EXT. 1 .
River shot w/ NAT Sound- WHERE THE MIGHTY MISSISSIPPI
MERGES WITH THE ELK RIVER,2.
2. EXT. LIES A VIBRANT AND SPIRITED
Community image. Two COMMUNITY. . .
people singing at the
music fest. 3. 4.
• 3. EXT_ ELK RIVER, MINNESOTA. . . WHERE
CITY AND COUNTRY FLOW
Welcome sign to the TOGETHER.
community with the civic
organization logos
visible.
Title "Elk River. . . Where City
4. Aerial of the location and Country Flow Together"
GRAPHIC: ELK RIVER
Where City & Country (MUSIC UP TO INTRO PROGRAM)
Flow Together
5-
S. EXT. ORIGINALLY SETTLED AS A
River shot w/old pioneer TRADING POST IN THE MID-
getting out of a canoe 1800'S, 6_ TODAY ELK RIVER IS
with pelts and gun. w/NAT LED BY A STRONG COMMITMENT TO
Sound_ (OR AN OLD PHOTO) BUSINESS AND INDUSTRIAL
GROWTH, 7- AND IS ONE OF THE
s @ALD 6. EXT. STATE'S MOST DYNAMIC CITIES_
LS of new industrial
15(e building under
DotA construction or a boom
shot of a industrial park.
7. EXT.
D_A.R.E_ house and news
print clippings overlay_
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2
8. INT. 8.
Senior High v/students ELK RIVER HAS GROAN TO BE A
in Honor Society, etc. LEADER IN EDUCATION,
EXT_ RECREATION, AND PUBLIC
Golf course. SERVICES.
INT.
An officer talking to a
group of students about
D.A.R.E.
9. EXT.
Oliver Kelley Farm 9. IT IS HOME TO THE OLIVER
w/a person plowing w/an KELLEY FARM, FOUNDER OF THE
oxen. NATION'S FIRST FARMER'S
10. EXT_ ASSOCIATION, AS WELL 10. AS
Lake Orono park in the NUMEROUS PARKS AND PLAYGROUNDS
late afternoon sun with AND 11. PEACEFUL RESIDENTIAL
kids playing NEIGHBORHOODS.
football/soccer game-
NAT Sound_
11_ EXT.
Early morning sun in a
nice residential area. LS
down the street as one
person gets paper out of
mail box. NAT Sound.
(VARIOUS ACTIVITIES)
12. MN Nap w/location of Elk 12.
River in relation to the LOCATED JUST THIRTY-FIVE
metro area. MINUTES FROM THE HUBERT H.
HUMPHREY METRODOME, 13. THIS
13. EXT_ SMALL TOWN AMBIENCE IS
Downtown area street shot CAREFULLY BALANCED WITH THE
from a high angle looking CLOSE PROXIMITY OF THE GREATER
west_ METRO AREA. 14. IT ENABLES ELK
14. INT_ RIVER RESIDENTS AND BUSINESSES
Metrodome entrance with TO ENJOY THE BEST OF BOTH
family walking in. They WORLDS.
all have on Elk River
shirts- Then return home
15. EXT. 15.
Industrial park(s) WITH ROOM TO EXPAND, NUMEROUS
Located w/ Map SITES ARE AVAILABLE FOR
16. EXT. COMPANIES ON THE MOVE, AND
• Traffic on Hwy. 10 MOST ARE COMPLETE WITH WATER
looking west w/ graphic AND SEWER LINES, ELECTRICITY,
overlay of the Huy. NATURAL GAS AND METRO PHONE
Concrete truck. SYSTEMS. 16. BUSINESSES AND
COMMUTERS ENJOY CONVENIENT
ACCESS TO HIGHWAYS 10, 169,
AND I-94.
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3
17. INT. 17-
Meeting at city hail. ELK RIVER`S AREA CHAMBER OF
Industry Round Table w/ COMMERCE, CIVIC LEADERS AND
person pointing at a map_ THE ECONOMIC DEVELOPMENT
AUTHORITY HAVE PLACED A HIGH
PRIORITY ON SUCCESSFUL
BUSINESS RECRUITMENT AND
RETENTION STRATEGIES.
18. INT. 18.
Elementary school THE ELK RIVER SCHOOL DISTRICT
19. TNT_ 728 IS A LEADER IN EDUCATIONAL
Middle school INITIATIVES. 19. IT
20. INT. RECOGNIZES EACH STUDENT'S
• High School POTENTIAL 20_ FOR
21 . INT_ INDIVIDUALIZED GROWTH AND
Community Education ACHIEVEMENT. .. 21. AND
LEARNING NEVER CEASES WITH
COMMUNITY EDUCATION CLASSES
FOR ENRICHMENT, CAREER
ADVANCEMENT, OR JUST FOR FUN.
22. EXT. 22.
Photo clicks of area THERE ARE SEVERAL COMMUNITY
technical/community AND TECHNICAL COLLEGES WITHIN
colleges- Video of the A 20 MILE RADIUS, AND THE
larger universities. UNIVERSITY OF MINNESOTA, ST.
CLOUD STATE UNIVERSITY, AND
NUMEROUS PRIVATE COLLEGES ARE
WITHIN AN HOUR'S DRIVE.
23_ INT_ 23.
Tescom employees ELK RIVER BOASTS A PRODUCTIVE
TAT. WORK FORCE WHICH HELPS MAKE
Bank of E.R. teller or THIS AREA A LEADER IN JOB
loan officer. CREATION. DURING THE PAST TWO
INT. DECADES, EMPLOYMENT
Doctor's office OPPORTUNITIES CONTINUE TO KEEP
EXT_ PACE WITH POPULATION GAINS.
UFA Big Board THIS IS DUE, IN PART, TO A
411 Concrete plant DIVERSE GROUP OF BUSINESSES
Police officer talking to AND INDUSTRIES LOCATED IN ELK
a local person RIVER.
INT_
Elk River Machine
operators
ETC_
09/21/93 14:42 $612 259 9404 GENESIS CABLE AD 444 CITY/ELK RIVER fj006
4
24. EXT. 24.
City employee talking with THE CITY WELCOMES THE
a business owner in the CHALLENGE OF PROVIDING
industrial park. INNOVATIVE FINANCING TO NEW
AND EXPANDING BUSINESSES. 25.
25- EXT_ PROGRAMS MAY INCLUDE:
Other industrial building INDUSTRIAL REVENUE BONDS, TAX
sites and businesses INCREMENT FINANCING, ECONOMIC
Cre-tex, Elk River DEVELOPMENT UTILITY RATES, OR
Machine, UPA. SUPPLEMENTAL MICRO-LOANS.
GRAPHICS_ List of Options
S
26. EXT.
Family doing some activity 26.
together- AS PART OF ELK RIVER'S
COMMITMENT TO RETAIN A RIGH
27_ EXT. QUALITY OF LIFE, 27. THE CITY
Expansion project in the COUNCIL ADOPTED A GROWTTU
city. Roads, ETC. MANAGEMENT PLAN TO ENSURE THAT
28- GROWTH RELATED ISSUES ARE
28: EXT. EFFECTIVELY MANAGED- THIS IS
Expansion on an existing ELK RIVER'S COMMITMENT 29. TO
business_ CREATING BETTER JOBS, 30.
29_ INT. PROVIDING QUALITY HOUSING
All Tool employees OPTIONS, AND 31_ PRODUCING
after break returning MORE OPPORTUNITIES FOR
to work. EVERYONE.
30. EXT.
Young couple looking at
home that is for sale.
31. EXT.
Large home with an older
couple/nice car-
Successful
(MUSIC TRANSITION}