3.1. DRAFT EDA MINUTES (2 SETS) 06-18-2018 City of
Elk Meeting of the Elk River
River Economic Development Authority
Held at the Elk River City Hall
Monday, May 21, 2018
Members Present: President Tveite, Commissioners Provo, Olsen (5:36 p.m.),
Westgaard, Ovall,Wagner, and Blesener
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt, Economic
Development Specialist Colleen Eddy, and Executive
Secretary/Deputy City Clerk Jessica Miller
I. Call Meeting to Order
Pursuant to due call and notice thereo , `'e meeting of the Elk River Economic
Development Authority was called to order at 5:30 p.m. by President Tveite.
2. Consider 05/21/2018 Agenda 1%
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Moved by Commissioner Westgaard and seconded by Commissioner Wagner
to approve the May 21, 2018, agenda. Q=�`
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Motion carrie" 6=0.
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3. Consider Consent Agenda
Moved by Commissioner Ovall and seconded by Commissioner Wagner to
approve the following consent agenda:
3.1 April 16, 2018, EDA Minutes.
3.2 Check register as outlined in the staff report.
3.3 Balance sheet as outlined in the staff report.
3.4 Revenue/expenditure report as outlined in the staff report.
Motion carried 6-0.
4. Open Forum
No one appeared for Open Forum.
S. Public Hearings
There were no public hearing items.
Economic Development Authority Nlinutes Page 2
May 21,2018
6.1 Beautification Award Presentation
Ms. Eddy presented the staff report.
Tamara Ackerman,representing the Elk River Beautification Committee,indicated
the committee is recommending the Beautification Award be presented to Chow
Mixed Grill.
Moved by Commissioner Wagner and seconded by Commissioner Provo to
approve the recommendation from the Beautification Committee to present
the award to Chow Mixed Grill for making substantial improvements to the
exterior of their building in the last year.
Motion carried 6-0.
6.2 EDA Website Update
Ms. Eddy presented her staff report.
Commissioner Olsen arrived (5:36 p.m.).
Commissioners asked for more detailed information on webpage analytics and they
would like it prior to the special meeting on Friday so they have time to review.
Ms. Eddy presented a Powered by our Business video featuring Sportech. Ms. Eddy
stated the plan is to feature other local businesses in the future.
6.3 Director's Report 4100am'A
Ms. Othoudt resented her director's report.
6.4: `Revolving Loan Fund Exemption
Ms. Othoudt presented the staff report. The commission discussed the exemption.
Moved by Commissioner Provo and seconded by Commissioner Blesener to
deny a one-time exemption for the Minnesota Investment Fund, state-funded
revolving loan fund account. Motion carried 7-0.
Commissioner Blesener indicated he would like to discuss how the city's program is
more restrictive than the state during the special EDA meeting on Friday.
7. Other Business
There was no other business.
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May 21,2018
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8. Adjournment
There being no further business,President Tveite adjourned the meeting of the Elk
River Economic Development Authority at 6:04 p.m.
Minutes prepared by Jessica Miller.
Dan Tveite,EDA President
Tina Allard, City Clerk
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City of
Elk Special Meeting of the Elk River
River Economic Development Authority
Held at the Elk River City Hall
Friday, May 25, 2018
Members Present: President Tveite, Commissioners Provo, Olsen,Westgaard, Ovall,
Wagner, and Blesener
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt and Economic
Development Specialist Colleen Eddy
Others Present: Ron Touchette,Rock Solid Companies;Ryan_ ardin, Hardin
Companies
1. Call Meeting to Order
Pursuant to due call and notice thereof,the meeting of the Elk River Economic
Development Authority was° o order at 8:00_ .m. by President Tveite.
2. Work Session
2.1 Current Market Conditions
Ms. Othoudt introduced . Touche ith Rock Solid Companies and Ryan
Hardin with Hardin Companies.
Mr. Touchette discussed the current market conditions and stated the Elk River
community has its own unique commercial identity. He currently has seven leases
and three available sites in Elk River. He stated that he sees challenges in Elk River
as there is no clear direction in Elk River and a lot of decisions are inconsistent.
Ryan Hardin reviewed some of his listings in Elk River. Retail strip malls may be
challenging to fill in the future,as they are becoming functionally obsolete with more
and more online shopping/ecommerce. Industrial land sales are going for less than
$2.00 sq. ft. in the area. The city should consider adjusting the sale price of the
industrial property they own. Mr. Hardin is concerned with the lack of inventory.
He stated that sometimes the city approves incentives that solve a current problems,
not necessarily the road ahead.
President Tveite asked if the lack of inventory hurts Elk River. Mr. Touchette feels
that it does hurt our community as developers are looking for sizeable acreage,which
Elk River does not currently have.
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Commissioner Provo asked about incentives for land and should the city abate away
to remain on a level playing field with other communities?
Mr. Touchette's response was that we should only provide incentives for projects
that need it, and not provide abatement/incentives for projects that don't need it.
Mr. Hardin's response was that the city should give land away that can't be sold, and
target specific types of industries.
Some takeaways Mr. Touchette and Mr. Hardin provided to the EDA:
1. Decide whether or not we want to own land or form partnerships.
2. Stay competitive on land pricing with other communities.
3. EDA owned land decide to give it away per,,tke to s of a development
agreement.
4. Know the current inventory.
5. Have a set process.
6. Articulate how you are going to get"t ngs done.
EDA members stated this was a good presentation and would like to see this again at
least once a year.
2.2 SWOT Analysis
Ms. Othoudt distributed t e SWOT'analysis that each member participated
in. She asked the members to write down three goals each member would
Eke to see in the next one,three and five year time frame. The commission
discussed the analysis. Member Westgaard stated that the Hwy 169
Corridors of Commerce project is a game changer for Elk River and feels the
city shoull,start marketing the project and the 530 acre gravel mine area.
SWOT Analysis
Strengths —
■ Image and Public Safety
■ Municipal/Utility—Reliability
■ Community of Elk River is a selling point, Parks and Environment,
Accessibility to Natural Resources
■ Good Infrastructure
■ ",Schools and Reputation
■ Workforce
■ Sales Tax Study showed that just as many people are going out,as
they are coming in. We are not just a bedroom community anymore.
■ Greater MN versus Metro
Weaknesses
■ Articulating the process, candid, clear, and complete direction
■ Inventory of properties
■ Long Term Vision
■ Greater MN versus Greater MN
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May 25,2018
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■ Transportation Corridor—Rush Hours
Opportunities
■ Market the stigma that we are in the "boonies", but not far from the
metro
■ 169 Expansion to the north
■ Marketing the quality of life, tranquility
■ Good Programs Available
■ Amount of available gravel mining property to the north
■ Pull workforce from St. Cloud/Metro—45 Mile Radius
■ Market the 530 Acres of Land Available— Gravel Mining
Threats
■ We seem to be closed in,good old boar' tan
■ Development of St. Michael/Albertville on I94—Competing
Neighboring Community
■ Potentially High Tax Rate compared to others — (would like the
comparison sheet)
■ Identified Process—Break down the communication silos
■ Stigma—of not business friendly
GOALS-
Short Term
■ Fixing Customer Service Process
■ Establish Measurables
Year 1
larify current city process for initial meetings w/developers
Identify 3 Ways in which our process can be better
■ stablish Measurable
■ Improve Communication
Know&Able to articulate how to get things done
■ mprove our customer service
■ Data Center
Year 3
■ Purchase Saxon
+1 10%
■ Marketing Plan (learn from developers)
■ Net Gain 6 new businesses
■ Develop Strategic Plan (increase development opportunities)
■ $5M Investment
■ Increase Inventory
Year 5
■ +30%
■ Additional Property Available (gravel pit)
■ Improve Reputation
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■ Increase our Shovel Ready Inventory 40%
■ $10M Investment
■ Brainstorm implications 169 improvement
■ See all of our inventory
Due to time constraints Ms. Othoudt discussed scheduling a follow-up meeting to
continue the discussion.
3. Adjournment
There being no further business, President Tveite adjour, e meeting of the Elk
River Economic Development Authority at 10:08 a.m.
Minutes prepared by Colleen Eddy.
Dan Tveite,EDA President
Tina Allard, City Clerk
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