10-10-1988 CC MIN - SPECIAL
e
SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 10, 1988
MEMBERS PRESENT:
Mayor Gunkel, Councilmembers Tralle, Dobel, and
Holmgren
MEMBERS ABSENT:
Councilmember Schuldt
ALSO PRESENT:
Richard Fursman, Economic Development Coordinator
Pursuant to due call and notice thereof, the meeting of the Elk River City
Council was called to order by Mayor Gunkel at 7:00 p.m.
Richard Fursman presented an overview of current development possibilities for
the downtown business district. Mr. Fursman explained that Tax Increment
Financing dollars would be available for the construction of a boardwalk
provided that downtown was declared a redevelopment district. Tax Increment
Financing dollars would also be used to ensure the reconstruction of the
hardware store.
Councilmember Holmgren expressed his concern over using Tax Increment
Financing dollars to help the hardware store get back on its' feet. Mr.
Holmgren stated he would want to see figures on the cost of reconstruction in
relation to the insurance settlement before guaranteeing the use of Tax
Increment Financing dollars.
e
Mr. Fursman pointed out that the use of Tax Increment Financing in this case
is to encourage the owners to develop property which advances the aesthetic
quality of the downtown and which causes the owners to incur a higher cost
than they normally would. The direct use of Tax Increment Financing for the
construction of their building would be avoided and any dollars spent for that
property will be used for expenses above and beyond those covered by their
insurance policy.
Mr. Fursman stated that timing is a crucial element with this project due to
grant cycles which are coming due. Mr. Fursman recommended that a study be
done which would include an environmental impact statement and three different
designs to pick from for possible boardwalks. The Council concurred that an
engineering study would be the next appropriate step.
COUNCILMEMBER HOLMGREN MOVED TO PREPARE A REQUEST FOR PROPOSAL FOR THE DESIGN
AND STUDY OF THE BOARDWALK. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE
MOTION PASSED 4-0.
Mr. Fursman provided the Council with an update on a position taken by an
outside developer on the old courthouse, located downtown, and the County
Administration Building, located downtown. Mr. Fursman informed the Council
that there is likely going to be an offer of $750,000.00, which is the asking
price for the property by the developer to the County Board. Mr. Fursman also
advised the Council tbat the County Board would seriously consider the offer
made. The offer, if accepted, would lead to tbe possibility of having the
Courthouse torn down and a Hardees replacing it.
e
e
e
e
Page 2
Minutes of the Elk River City Council
October 10, 1988
Mr. Fursman suggested that in an effort to save the County Courthouse from
destruction, the use of Tax Increment Financing dollars could be used
generated from the new restaurant to relocate the Courthouse at the Kelly
Farm. Mr. Fursman stated that the Kelly Farm, ran by Tom Woods, had not been
approached with this development option and could not predict how the
Historical Society would react to such a proposal. Several Councilmembers
felt that moving the Courthouse to the Kelly Farm would be a logical
compromise if the development were to occur. Mr. Fursman stated his
impression that everybody would have to give a little if this project were to
proceed. The Council agreed that the development of the Courthouse property
would require the City's participation if the property is ever to be used
commercially.
OOUNCILMlMBER TRALLE MOVED TO USE TAX INCREMENT FINANCING FOR THE PRESERVATION
OF THE EXISTING COURTHOUSE IN THE EVENT COMMERCIAL INTERESTS IN THE PROPERTY
WOULD NECESSITATE THE RELOCATION AND RESTORATION OF THE BUILDING TO THE KELLY
FARM PREFERABLY. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
COUNCILMEMBER HOLMGREN MOVED TO
PART-TIME LICENSED POLICE OFFICER.
THE MOTION CARRIED 4-0.
ADOPT RESOLUTION 88-89 TO HIRE A TEMPORARY
COUNCILMEMBER TRALLE SECONDED THE MOTION.
COUNCILMEMBER DOBEL MOVED TO ADJOURN THE MEETING
COUNCIL. COUNCILMEMBER HOLMGREN SECONDED THE MOTION~
OF THE ELK RIVER CITY
THE MOTION PASSED 4-0.
The special meeting of the Elk River City Council adjourned at approximately
8:30 p.m.
Respectfully submitted,
f!~~~
Richard Fursman ~
Economic Development Coordinator