5.0.-11.3. EDSR 07-12-1993 ek.r
c �
y of TO: ECONOMIC DEVELOPMENT AUTHORIT
41k .
IEivere FROM: PATRICK KLAERS, EXECUTIVE � ', 'OR
DATE: JULY 7, 1993
SUBJECT: 7/12/93 EDA MEETING AGENDA MEMO
5 . VIDEO PRESENTATION
Dan Barth from Diversified Marketing Resources, Inc. , will be
present at this EDA meeting to discuss a City of Elk River
video. This issue was discussed by the EDA at its last meeting
and the general consensus of the EDA was to obtain more
information on a video project. In this regard, while Dan will
certainly be promoting his firm to do an Elk River video, the
purpose of this agenda item is to obtain information on what an
Elk River video is all about. We will want to be in an
informational gathering mode to find out the general costs for
a video, the preferred length of the video, how to keep a video
current and/or the costs for annual updates to the video, and
general uses for the video.
Dan will show a short demonstration video, give a proposal for
• an Elk River video and will answer questions from the EDA. His
total presentation should be about 30 minutes . We should be
prepared to "pick his brain" as much as possible to help
determine if this is a marketing device we wish to pursue
either individually or in conjunction with the Chamber or other
organizations .
6 . DISCUSS CHUBA REDEVELOPMENT PROPOSAL
The Chuba Company has requested Tax Increment Financing to
assist with a proposed redevelopment project at 317 and 323
East Main Street. No actual TIF application has been submitted
at this time. The application and fee would follow if the EDA
recommends that the City Council hold a public hearing to
consider amendments to TIF Plans No. 1 and No. 3 to financially
assist this redevelopment proposal . A similar request was
reviewed by the EDA in February, 1992, for the project that
took place at 307 Main Street. Attached for your review is the
Chuba letter which requested TIF assistance and a letter from
Bill to Dennis acknowledging this request. The time table in
this letter from Bill Rubin indicates that this issue would be
discussed by the EDA on 7/12/93 and reviewed by the City
Council on 7/19/93 with a potential public hearing date on the
proposal scheduled for 8/16/93 .
• The Chuba proposal is a redevelopment project for a
townhouse/condominium building with approximately 10,000 square
feet. The first phase would be about 5,000 square feet and
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
7/12/93 EDA AGENDA MEMO Page 2
July 7, 1993
• would begin as soon as possible at 323 Main Street. The second
phase, or the second 5,000 square feet on 317 Main Street,
would begin upon receiving commitments from future tenants . At
this time, we have no information as to the value of the
project under consideration. The request from the Chuba
Company is for $25,000 for Phase 1 and $35,000 for Phase II .
We would apply this money only toward eligible activities and
we would, as a City, try to remain out of the land acquisition
business as this gets the City involved in a chain of title.
Eligible activities include soil corrections, site preparation,
removal of wells, buildings, and foundations. Without a formal
application being submitted, it is difficult to accurately
evaluate the proposal . The details of a proposal can be worked
on between the developer and staff if the EDA feels that this
project/proposal is an appropriate use of TIF District No. 1
and No. 3 funds .
At this time, Bill is asking that the EDA function as a
recommending agency regarding this request. If the proposal
meets with the goals of the EDA, then it would be appropriate
for the EDA to recommend that the City Council moved forward
with a public hearing to consider amendments to TIF Plans No. 1
and No. 3 in order to access these funds to assist this
redevelopment project. The EDA should note that we are not
discussing the creation of a new TIF District and the TIF funds
• used in this project would not be recovered.
7 . EDA MAIN STREET SITE
Mr. Chris Bulow of the Bruce Company will be in attendance at
this meeting to provide the EDA and staff with an update on the
progress he has made with this project since the last EDA
meeting. Chris has advised me that either he and/or his wife
will be in attendance; however, Chris has also indicated that
limited progress has been made on this project in terms of
tenants being committed to the site and proposed facility.
At the last EDA meeting, discussion took place regarding
alternatives to the creation of a TIF District. One of the
alternatives reviewed was having the EDA become involved as a
co-developer or a limited partner.
At this time, we are 30 days into the 90-day option that the
EDA granted to the Bruce Company at the last meeting.
8. BUSINESS PARK UPDATE
Pat Dwyer is Chair of the Business Park Task Force. A meeting
• was held on June 29, 1993. The agenda for this meeting is
attached as is a list of topics for the next Business Park Task
Force meeting that is scheduled for July 27, 1993. I
7/12/93 EDA AGENDA MEMO Page 3
July 7, 1993
• understand that Pat will be prepared to provide the EDA with
and update on the status of the Business Park Task Force.
9 . FINANCIAL UPDATE
The following comments are offered from Lori Johnson, City
Finance Director, regarding the status of the Revolving Loan
Fund and a request for the EDA to approve a Statement of
Expenses Payable.
Revolving Loan Fund
The Revolving Loan fund had a cash balance of $166,552 . 76
as of June 30, 1993. On July 7, all July payments had
been received with the exception of Roma Tool, Alltool and
Pure Steam.
Economic Development Authority
Attached is a Statement of Expenses Payable for the period
ended June 30, 1993, in the amount of $15,772 .04 . After
payment of these expenses, the EDA will have a cash
balance of approximately $45,000 . 00. The first half tax
settlement and state aids will be received in July.
The EDA is asked to approve a payment of $15,772 . 04 to the
City.
10 . PROSPECT STATUS REPORT
The prospect status report has been sent under separate cover.
11 . OTHER BUSINESS
11 . 1 . Targeted Marketing Project
Attached for the EDA is the Targeted Marketing puzzle.
Approximately 475 mailings were made with 75 of these
mailings being local . The other 400 mailings went to
industrial companies in the northwestern area of the Twin
Cities . The total cost of the project was about $750 or
about $1 .50 per item plus the mailing expenses .
Industries targeted in the northwest area included plastic
injunction mold makers, medal fabricators, the electronic
industry, medical products companies, and the print
industry.
Bill has already received a number of very pleasant phone
• calls from companies that have received the marketing
puzzle and we at staff level are encouraged by the
positive response and publicity that the City receives
from this economical marketing tool .
7/12/93 EDA AGENDA MEMO Page 4
July 7, 1993
• 11.2 . Certified Development Company Update
Per direction from the EDA at the last meeting, Bill is
working with representatives in Wright and Sherburne
Counties to evaluate other existing certified development
companies that could work in our area. A July 15th
luncheon meeting is scheduled to hear a presentation from
the Twin City Metro CDC.
11 . 3 . Review City Hall Plaque
This item will be discussed by the City Council at its
meeting following the EDA meeting; however, as the EDA
helped finance the new facility and is recognized on the
plaque, I thought it would be appropriate for the EDA to
review the two plaque proposals and to provide the City
Council with some feedback on the two options. One option
shows the City Councilmembers as EDA members, while the
other option includes an asterisk that identifies the
groundbreaking City Councilmembers as EDA Commissioners at
the time the facility was financed. Bill prefers the
option that includes the asterisk and the EDA
Commissioners notation.
•
411
41ECEIVt
JUN 22 1993
2-4
ITEM 5
Diversified Marketing Resource, Inc.
905 West Saint Germain • Saint Cloud MN 56301 •612.251.3935
June 17, 1993
City of Elk River
Bill Rubin
P.O. Box 490 •
13065 Orono Parkway
Elk River, MN 55330
Dear Bill ,
Just a quick . note to say thanks foryour interest in
Diversified Marketing Resource, Inc. and to fillyou in on some
of :details you asked for.
Mark and I will both be coming to the Economic Development
Authority meeting `on . Monday,. July. 12: at• 7pm. We 'will be prepared
to show a ', short demonstration video, give a proposal for the
video project, and answer any specific questions your committee
may have. Our presentation should not take more than 30 minutes.
A couple of things I. need`:to know. First, will there be a
VCR availableor do we needto bring our own monitor?.- Second,
how many_ .people will be in the meeting so I can have a .proposal,
package for each of them to discuss'?
Bi11, , I am very excited :. to, meet with the Economic
• Development Authority. ` Elk River is a beautiful` .city and is the
perfect setting for a great video that will be something the
whole community can be proud of, as well 'as- have many uses for
economic development and. marketing. I know your committee will
be .very happy with both the quality of our work, and our
competitive rate structure.
I will talk to you before the •12th.
Sincerely,
Daniel D. Barth
Vice President Marketing
DMR, Inca
•
Central Minnesota's Only Marketing&Public Relations Firm
with Complete In-House Video Production Services
O
Diversified Marketing Resource, Inc.
905 West Saint Germain • Saint Cloud MN 56301 •612.251.3935
z �PROPOSAI,
ELK RIVER CITY VIDEO PROJECT
OFFERED TO:
ELK RIVER
P.O BOX 490
13065 ORONO PARKWAY
ELK RIVER, MINNESOTA 55330
41 OFFERED BY:
DIVERSIFIED MARKETING RESOURCE, INC.
905 ,W ST. GERMAIN
ST. CLOUD, MN 56301
JULY 12, 1993
Central Minnesota's Only Marketing&Public Relations Firm
with Complete In-House Video Production Services
S
Diversified Marketing Resource, Inc.
905 West Saint Germain • Saint Cloud MN 56301 •612.251 3935
ElK River City Video Project
Program 'Obiective: To create a concise, motivational video program to
assist in the marketing, promotion, and economic development of the
City of Elk River.
Project Overview: The video presentation will be approximately 6-8
minutes in length and will feature the key elements that make the great
City of Elk River. The video will be used to inform and educate
industries and individuals on the quality of life offered, and to lure
potential businesses into Elk River and promote the existing services
available.
A Projected Audience: Potential businesses and industries, doctors,
teachers, private citizens and all people inquiring about the City of
Elk River. The video may be designed to be used as both an economic
development tool and a tourism program.
Program Length: Approximately 6-8 minutes.
Project Contacts: City of Elk River
Bill Rubin, Economic Development
(612) 441-4905
Pioneer Teleproductions, Inc.
Mark R Barth, President
(612) 251-3940
Diversified Marketing Resource, Inc."
Daniel Barth, Vice President of Marketing
(612) 251-3935
Central Minnesota's Only Marketing&Public Relations Firm
with Complete In-House Video Production Services
1. THE FOLLOWING PROPOSAL is offered to the City of Elk River,
hereinafter referred to as CLIENT, by Diversified Marketing Resource,
Inc. , in association with Pioneer Teleproductions, Inc. , hereinafter
referred to as DMR.
• 2 . IT IS PROPOSED that CLIENT shall retain the services of DMR to
produce a professional video presentation approximately six (6) to
eight (8) minutes in length. The completed program will be effectively
designed to promote and market CLIENT's City of Elk River.
3. IT IS PROPOSED that DMR shall provide the following services:
A. Pre-planning and consultations.
B. Program design/script consultations.
C. Location video production (Professional broadcast quality
video camera, 3/4 inch or professional S Recorder, lighting
support, audio support, location director, and camera
operator. )
D. Post-production (3/4 inch and Professional S A/B roll editing
which includes FA-740 video effects and DVE with time base
correction. )
E. Computerized graphic production (Chyron VP2 graphics
generator and "Video Toaster" with 3D lightwave animation. )
F. Professional narrator.
• G. Audio production.
H. Music selected from Pioneer's music library.
I. One ( 1) 3/4 inch edit master of each completed program.
J. One ( 1) VHS copy of completed program.
4 . IT IS PROPOSED that CLIENT shall provide the following services:
A. Content information.
B. Project coordinator.
C. Script Approval.
D. Personnel to act as demonstrators.
E. Signed releases for the copying or duplication of any
copyrighted material to be incorporated into the program.
F. Music (If original music is desired) .
•
•
5. In consideration of the services outlined in paragraph three (3) ,
DMR PROPOSES the following budget.
SERVICE COST PER UNIT ESTIMATED TIME TOTAL
Pre-production/design --- --- $ 250.00
Completed Script --- --- 350.00
Location production $985 per day 3 days 2,955.00
Off-line editing $50 per hour 8 hours 400.00
On-line editing $90 per hour 14 hours 1,260.00
Studio Production $110 per hour --- 0.00
Professional Narrator --- --- 300.00
Graphic production $50 per hour 6 hours 300.00
Audio production $50 per hour --- 0.00
Music --- --- 0.00
Supplies --- --- 75.00
$5,890.00
* Above proposal does not include travel and lodging expenses for
• location production. It is PROPOSED that DMR will provide CLIENT
with all receipts concerning meals and lodging, while it's
produciton crew is on location. In addition CLIENT will be billed
$.25 per mile for DMR's production crew to travel to and from Elk
River.
6. DMR PROPOSES the following compensation schedule:
*Two thousand nine hundred forty-five ($2,945.00) and 00/100
dollars due upon the signing of a formal agreement.
*Two thousand nine hundred forty-five ($2,945.00) and 00/100
dollars due upon approval of the final program, along with any
and all travel expenses.
7. The preceding budget is only a proposal and is subject to change
based on the needs of the CLIENT. Once a formal agreement is reached,
the budget will become a maximum that DMR will not exceed without
CLIENT approval.
PIONEER TEL ' :OD IONS, INC. DIVERSIFIED MARKETING RESOURCE, INC.
BY• o .� �.► BY:
• ITS: PRESIDENT ITS:VICE PRESIDENT OF MARKETING
DATED: -,;42Aq(-3?
DATED: , '
•
Timeline
Project Week of
Formal Agreement/Down payment July 26th
Pre-Production/Design August 2nd
Initial Script to Client August 9th
Script Revisions August 16th
Final Script Approval August 23rd
Location Production September 6th
Post Production September 20th
Program Viewing September 27th
Duplication October 4th
•
* This timeline is a PROPOSAL and may be altered to meet the specific
needs of CLIENT.
* Program duplication rates vary depending on quantities needed.
Rates available upon request.
S
X411►,
�ijli`� (((CXeleptodactioatt, 5ae.
. e JANUARY 1993
905 West St.Germain • St.Cloud, MN 56301 • (612)251-3940
REFERENCES
Mike Marrin
Director of Marketing
Catholic Charities of the Diocese of St. Cloud
252-0412
Kay Ek
Director
Office of Natural Family Planning, St. Cloud
252-2100
Warren Guftason
Training Director
Champion International Paper, Sartell
259-7226
1 Mark Coborn
Training Director
Coborn 's, Incorporated, St. Cloud
252-4222
Roger Kuhl
Marketing Director
Minnesota School of Business, Minneapolis
224-7777
Pat Day
Marketing Director
Willmar Technical College, Willmar
235-5114
Jim Eckberg
Marketing Director
Komo Machine, Inc. , St. Cloud
252-0580
Ron Linder
President
Genesis Cable Advertising, St. Cloud
251-7169
410
Loa.fdete ?/edea. Putalactioa Se ux ced
" �1 Cj' Q
• - % PROFESSIONALS DEDICATED TO
a HELPING YOUR BUSINESS COMMUNICATE
905 West St.Germain • St.Cloud, MN 56301 • (612)251-3940
MARK R. BARTH. EXECUTIVE PRODUCER
- St. Cloud State University Graduate: Mass Communications Major
- President, Pioneer Teleproductions, Inc.
- Commissioned by Japan' s Nippon Television to provide production
support for visiting correspondents
- 1986 National Finalist (top five) for "Outstanding Achievement In
Creative Cable Television Commercial Production"
- 1987 National Finalist (top five) for "Outstanding Achievement In
Cable Television Advertising Excellence"
- 1989-91 Instructor, St. Cloud State University, Television
Production
- 1992 Addy Award, Catholic Charities video "Together Making A
Difference"
LYLE LEMKE. PRODUCER
- St. Cloud State University Graduate: Mass Communications Major
RECENT PROJECTS
• A. Komo Machines, Inc. "CNC Automatic Router"
B. Coborn' s, Inc. "Be The Best"
C. Bankers System "Truth in Savings"
D. Environmental Management "Water Pollution"-"Lake Management",
E. Park Industries "Leader In The Stone Industry"
F. City of Cold Spring "Star City Presentation"
G. Fingerhut Companies "Today' s Telemarketing"
ROBERT CHOUINARD. PRODUCER
- St. Cloud State University Graduate: Mass Communications Major
RECENT PROJECTS
A. Champion Paper Products "The Jagenberg Winder"
B. Canby Technical College "Todays Dental Assistant"
C. Riverwood Conference Center "The Art Of Achievement"
D. Herberger 's, Inc. "Take A Look At Us Now"
E. Family Life Bureau "Natural Family Planning"
F. Willmar Technical College "Choose Success At Willmar Tech"
G. D.H. Blattner & Sons "Mining"
DONALD KOSHIOL. PRODUCER
- St. Cloud State University Graduate: Mass Communications Major
RECENT PROJECTS
A. Red Wing Technical College "The Violinist"
B. Coborn' s, Inc "Today' s Deli Attendant"
C. St. Francis/Xavier School "Community Of Faith"
D. City Of Montevideo "Montevideo Growth"
E. Central MN ECSU "Got A Question-Get An Answer"
F. United Way "Real People-Real Caring" ( 1992 ITVA awars finalist)
G. Gyp-Crete, Inc. "Level-Right"
easyriete `'idea Putelucteaa Seaacee4
THE
HUBAITEM 6
COMPANY
7/64 k� �_ 317 Main Street,Elk River,MN 55330 Phone(612)441-4488
• •
21 June 1993
Bill Rubin
City of Elk River •
Economic Development Authority
Elk River, Mn. 55330
Dear Bill,
We are formally requesting .Tax Increment Financing to assist with
the redevelopment of properties at 317 Main Street and 323 Main Street,
We are proposing to build an office townhouse/condo building with a total
square footage of up to 10,000 S.F. The building will house three existing
businesses in the City of Elk River which are expanding their space requirements.
The first phase is designed to use the property at 323 Main street where a
11 story home is now located. The 2nd phase which would be started as soon as
tennants are committed would include the property at 317 Main St. The 1st phase
is expected to be around 5000 S.F. and the 2nd phase of about 5000 S.F. Start
times of construction are ASAP as the 1st phase businesses are anxious to expand.
T.I.F. funds would be used to remove existing wells, trees, foundations, buildings,
III and for soils corrections. The 1st phase T.I.F. needed would be $25,000.
2nd phase T.I.F. funds would be used for land acquisition, building removal,
foundation removal, soils corrections. Total T.I.F. funds for this phase which
would allow for the 'doubling of building size would be $35,000.00.
We have tentative approval of construction loans for the 1st phase.
Please consider this proposal at your earliest convienence. •
• S e yy Yours,
1
Bennis G. C u a.
he Chuba Company
•
• AMERICA is REMODEUNG
with
YOUR COMPLETE CONSTRUCTION SERVICE111gir
r-c./ --\(
/ -
ity of ��
lk River
June 24 , 1993
Mr. Dennis Chuba
The Chuba Company
317 Main Street
Elk River, MN 55330
Dear Dennis,
I wish to acknowledge receipt of your letter dated June 21,
1993 . With respect to your request for Tax Increment Financing
(TIF) assistance, I am recommending that this item be included
on the EDA' s agenda for its July 12, meeting. As you will
recall, TIF funds for your 1992 project were accessed from TIF
Districts No. 1 and No. 3 . The City of Elk River created these
districts and still control them. I would ask that the EDA act
as a recommending agency regarding your current request. Its
• recommendation will then be forwarded to the City Council at a
meeting presumably on July 19 . A public hearing on this matter
will likely be scheduled for August 16 .
In the event of questions or comments, please feel free to call
me at 441-4905. As we discussed, you should plan on attending
• the July 12 meeting, and, if you have any preliminary site
plans for the project, they should be submitted for inclusion
in the agenda packets .
Sincerely yours,
1/121121
William Rubin
Economic Development Coordinator
WR:ah
•
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
BUSINESS PARK TASK FORCE
AGENDA
Tuesday, June 29, 1993 ITEM 8
Elk River City Hall
7 : 30 A.M.
1 . WELCOME AND OVERVIEW OF TASK FORCE (PAT DWYER, CHAIR)
2 . OVERVIEW OF EXISTING INDUSTRIAL SITES
- Location, Ownership, Occupancy, Utility Improvements,
Etc.
3 . POTENTIAL SITES FOR FUTURE INDUSTRIAL/BUSINESS PARKS
4 . DEVELOPMENT - OWNERSHIP OPTIONS
- Current Property Owner
- Private Land Developer
- Public-Private Joint Venture (EDA & Developer)
- Public-Quasi Public Joint Venture (EDA & Utility
Company)
- Public Initiative (City-EDA)
5 . OVERVIEW OF EDA POWERS
- Power to Acquire Property
- Power to Lease or Sell Property
- Power to Study Economic Development Needs
• - Power to Develop & Improve Land
- Power to Issue Bonds
6 . FUNDING SOURCES - LAND PURCHASES AND/OR SITE IMPROVEMENTS
- Contract for Deed
- Revenue or G.O. Bonds
- U. S . Economic Development Administration
- Rural Electrification Administration
- Tax Increment
- Improvement Bonds
7 . SET NEXT MEETING DATE
Topics : Development Standards, Site Evaluation
Process, Etc .
8 . ADJOURNMENT - 8 : 30 A.M.
•
J �"\1
( X
ty of ,/
.11�,
River BUSINESS PARK TASK FORCE
MEETING NOTICE
The next meeting of the EDA Business Park Task Force will
be held on Tuesday, July 27, 1993, at Elk River City Hall,
beginning at 7 : 00 a.m. Topics for discussion include:
- Suitable Park Locations (based on existing zoning)
- Potential Locations (which are subject to rezoning)
- Identification of Current Landowners
- EDA Financing Programs for this Project
An agenda packet will be distributed prior to the meeting
on the 27th.
III
I
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425
SBUSINESS PARK TASK FORCE
DISTRIBUTION LIST
PAT DWYER, CHAIR JEFF GONGOLL, PRESIDENT
BANK OF ELK RIVER ELK RIVER EDA
630 MAIN ST 13900 RIVERVIEW DR
ELK RIVER MN 55330 ELK RIVER MN 55330
441-1000 (W) 726-5656 (W)
JOHN DIETZ, CITY COUNCILMEMBER BILL RUBIN, ED COORDINATOR
13319 RIVERVIEW DR ELK RIVER CITY HALL
ELK RIVER MN 55330 P.O. BOX 490
441-2800 (W) ELK RIVER MN 55330
441-4905 (W)
CHAMBER REPRESENTATIVE STEVE ACH, CITY PLANNER
ELK RIVER CITY HALL
P.O. BOX 490
ELK RIVER MN 55330
441-4900 (W)
EDA R & D COMMITTEE:
CLIFF LUNDBERG CAROL MILLS
400 JACKSON AVENUE 300 EVANS AVENUE
ELK RIVER MN 55330 ELK RIVER MN 55330
441-1251 (W) 441-1213 (W)
LARRY TOTH DICK GONGOLL
813 FAWN ROAD 729 MAIN STREET
ELK RIVER MN 55330 ELK RIVER MN 55330
441-2840 (H) 441-2200 (W)
JOHN OLIVER
580 DODGE AVENUE NW
ELK RIVER MN 55330
441-2072 (W)
•
ITEM 9
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
•
Statement of Expenses Payable
July 8, 1993
For Period Ended June 30, 1993
Personal Services:
EDA Pay $4,200.00 $4,200.00
Professional Services:
Advertising:
Print Central 465.00
Greta Wedell (MN Ventures) 6748.00
ECM 427.00
Business&Industry 195.00
7,835.00
Newsletter& Targeted Marketing:
Elk River Printing 519.12
CEP 72.77
American Business Lists 80.00
671.89
Other:
LMCIT (Insurance) 285.00
US Postmaster 642.17
Misc. Vendors (Supplies) 137.98
Elk River Area Chamber of
Commerce (4th of July) 2,000.00
3,065.15
TOTAL DUE CITY OF ELK RIVER $15,772.04
•
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
TO: ECONOMIC DEVELOPMENT AUTHORITY
FROM: WILLIAM RUBIN, ED COORDINATOR
DATE: JULY 1, 1993
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.
1 . Steiner Development, Inc. Prospect - Staff was in
contact with a representative from the above-referenced
company which had a 20,000 square foot prospect that was
looking for a new or existing building in Elk River. The
company was put in contact with Alltool Manufacturing,
and, was sent information regarding available sites in the
Elk River Industrial Park. Staff understands that the
prospect was in Elk River with Steiner Development on July
1, but no specific information is available regarding the
visit. Staff will follow up in hopes of encouraging the
purchase of the Alltool building or, the purchase of a
vacant site.
2 . Sean' s Steak and Seafood, Princeton, MN - By now, EDA
Commissioners are likely aware that the owner-operator of
the above-referenced restaurant is considering opening a
store in Elk River. Specifically, the operator is
investigating the merits of the available space at 720
Main Street ( former Elk River Hardware and Radio Shack
space) . As an expression of our interest to assist this
prospect, the writer of this memo and the City Clerk,
together with the Chamber President and Executive Vice
President, scheduled a luncheon meeting on June 22, with
the operator and the restaurant manager. From all
indications, it appears as though the operator and the
building owner, Bud Houlton, are well along in the
negotiation process City staff reviewed a number of
topics at the meeting and presented the information in a
very positive manner. For those EDA Commissioners that
have not been to Sean's in Princeton, it is very
comparable to Russell 's on the Lake, and in many regards,
is somewhat more elegant. This is particularly true in
light of the steak and seafood selection, and, the
selection of wines and imported beers . Staff will
continue to work with the Chamber leadership in hopes of
assisting with this expansion should the operator decide
on an Elk River location.
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
•
ITEM 11 .2 .
A
• Go .
: ', VER ECONOMIC DEVELOPMENT AUTHORITY
TO: INTERESTED PERSONS IN WRIGHT AND SHERBURNE COUNTIES
FROM: WILLIAM RUBIN, ECONOMIC DEVELOPMENT COORDINATO J
/'
�t
DATE : JUNE 30, 1993 Uv
SUBJECT: JULY 15 LUNCHEON MEETING;
504 CERTIFIED DEVELOPMENT COMPANY
Please be advised of a luncheon meeting (dutch treat) on
Thursday, July 15, at Russell ' s on the Lake, Big Lake,
beginning at 12 p.m. . Bob Heck, President of the Twin Cities
Metro Certified Development Company, and, Al Madsen, Director,
Twin Cities Metro CDC (also Economic Development Director, City
of Maple Grove) , will be in attendance to provide an overview
of Twin Cities Metro.
A potential alignment with Twin Cities Metro is being offered
as one of many options in providing SBA 504 loans to small
businesses in Wright and Sherburne counties . Twin Cities Metro
currently serves Hennepin, Scott, Carver, Dakota, Washington,
• and Ramsey counties . Its service territory excludes Anoka
County which is served by the Coon. Rapids Development Company.
The organization was formed in early 1990, and, despite its
short existence, it maintains approximately one hundred 504
loans in its portfolio. Enclosed with this memo are two loan
activity summaries . The summary dated September, 1992,
indicates that Twin Cities Metro closed forty of the eighty-six
504 loans in Minnesota (46%) during fiscal year 92 (October 1,
1991, through September 30, 1992) . The September, 1992 summary
also indicates that Twin Cities Metro had sixty-eight loans
totalling $22 .5 million in its portfolio. The second summary,
dated May , 1993, indicates that Twin Cities Metro had closed
on thirty-one of the fifty-nine 504 loans in Minnesota (52%)
from October 1, 1992, through May 31, 1993 . This summary also
indicates that Twin Cities had ninty-nine loans, totalling
$32 .2 million in its portfolio through May, 1993 .
Twin Cities Metro is a full service development company. That
is, given its loan volume activity, it has several loan
packagers on staff. As with other development companies, a fee
is charged for this loan packaging service. In contrast to the
Coon Rapids Development Company, Twin Cities does not subsidize
this packaging fee. Of note, however, a business can treat
this fee along with the origination fee, appraisal, and other
closing costs, etc . , as a deductible business expense over the
• life of a mortgage. With or without a subsidy, a business
writes off this expense as it would other loan expenses .
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
. Directors serving the Twin Cities Metro Board represent a cross
section of persons from the area served by the organization.
Any service territory expansion would enable new directors to
join the Board. Further, it is likely that no stock purchases
would be required from public and private entities in the
expanded service territory. Another item of note is that of a
previous request by Twin Cities Metro to expand its service
territory to include Wright, Sherburne, Benton, Stearns, and
perhaps even Anoka County. SBA either denied this request or
chose not to act on it. Speculated reasons include: a. ) SBA' s
desire to give a restructured OMNI every advantage to succeed;
or b. ) No resolutions of support submitted with the request.
The luncheon meeting will give representatives from Wright and
Sherburne Counties an opportunity to hear a presentation on
this organization, and, to answer any questions or concerns on
the same. While there is little doubt that a newly-formed
development company serving Wright and Sherburne Counties would .
be successful, the preferred option is to align the counties
with an existing, successful organization. Twin Cities Metro
may likely meet this criterion. With Sherburne County's recent
inclusion into the Minneapolis-St. Paul Metropolitan
Statistical Area (MSA) , and, with Wright' s previous inclusion
in the same, perhaps an alignment with a development company
processing a "Twin Cities" mission would be a good fit for
• Wright and Sherburne.
I look forward to seeing you at the July 15 luncheon and hope
your schedule will permit you to attend. If you cannot attend,
please send a designated representative. A reservation will be
made under this writer' s name. In the event of questions or
comments prior to the meeting, please feel free to call me at
441-4905 (direct).
•
JUN-25-1993 09 43 FROM EOS ARCHITECTURE-INC TO 4417425 P.02
ITEM 11 .3 .
•
ELK. RIVER CITY HAIL
AND
POLICE DEPARTMENT
DEDICATED AUGUST, 1993
MEMBERS OF THE CITY COUNCIL
GROUNDBREAKING: DEDICATION:
JAMES TRALLE, MAYOR HANK DUITSMAN, MAYOR
JOHN DIETZ JOHN DIETZ
DUANE KROPUENSKE CECILIA SCHEEL
GENE SCHULDT LARRY FARBER
ROGER HOLMGREN ROGER HOLMGREN
•
FINANCED THROUGH THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
OCTOBER , 1991
JEFFREY GONGOIL, PRESIDENT
PATRICK DWYER, VICE PRESIDENT
CITY COUNCIL MEMBERS
PATRICK KLAERS, CITY ADMINISTRATOR
THOMAS ZERWAS, CHIEF OF POLICE
LORI R.JOHNSON, FINANCE DIRECTOR
4110 EOS ARCHITECTURE, ARCHITECT
BOR-SON , GENERAL CONTRACTOR
JUN-25-1993 09 43 FROM EOS ARCHITECTURE-INC TO 4417425 P.03
•
ELK RIVER CITY HALL
AND
POLICE DEPARTMENT
DEDICATED AUGUST, 1993
MEMBERS OF THE CITY COUNCIL
GROUNDBREAKING: DEDICATION:
JAMES TRALLE, MAYOR; HANK DUITSMAN, MAYOR
JOHN DIETZ* JOHN DIETZ
DUANE KROPUENSKE* CECILIA SCHEEL
GENE SCHULDT; LARRY FARBER
ROGER HOLMGREN' ROGER HOLMGREN
FINANCED THROUGH THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
OCTOBER, 1991
JEFFREY GONGOLL, PRESIDENT
PATRICK DWYER, VICE PRESIDENT
IDA COMMISSIONERS
PATRICK KLAERS, CITY ADMINISTRATOR
THOMAS ZERWAS, CHIEF OF POLICE
LORI R.JOHNSON, FINANCE DIRECTOR
• EOS ARCHITECTURE, ARCHITECT
BOR-SON , GENERAL CONTRACTOR
JUN-25-1993 09:44 FROM EOS ARCHITECTURE-INC TO 4417425 P.04
••
THE CI'T'Y HALL AND POLICE DEPARTMENT SITE
A PORTION OF THIS SITE WAS DONATED TO THE
CITY OF ELK RIVER BY DOMINIC GOSPODOR. THE
LAND WAS PART OF THE GOSPODOR FAMILY FARM.
• FILE:JNR\NOTES EI KP AQI
•