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4.1. DRAFT EDA MINUTES (3 SETS) 12-18-2023 Meeting of the Elk River Economic Development Authority Held at the Elk River City Hall Tuesday, June 20, 2023 Members Present: President Dan Tveite, Commissioners Cory Grupa, Mike Beyer, Jeff Hartwig, and Charlie Blesener, Matt Westgaard, and Jennifer Wagner Members Absent: None Staff Present: Economic Development Director Brent O’Neil, Economic Development Specialist Joshua Mollan, and Deputy City Clerk Jolene Richter 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 5:30 p.m. by President Tveite. 2. Pledge of Allegiance: The Pledge of Allegiance was recited. 3. Consider Agenda Moved by Commissioner Westgaard and seconded by Commissioner Beyer to approve the agenda. Motion carried 7-0. 4. Consent Agenda Moved by Commissioner Wagner and seconded by Commissioner Grupa to approve the following consent agenda: 4.1 May 15, 2023, Regular Minutes. 4.2 Check register as outlined in the staff report. 4.3 Balance sheet as outlined in the staff report. 4.4 Revenue/Expenditure report as outlined in the staff report. Motion carried 7-0. 5. Open Forum No one appeared for Open Forum. 6. Public Hearings There were no public hearing items. Economic Development Authority Minutes Page 2 June 20, 2023 ----------------------------- 7.1 Golden Shovel Website Redesign Mr. O’Neil and Mr. Mollan presented the staff report. The commission discussed and gave their suggestion for possible updates to the Economic Development website design. Mr. O’Neil suggested keeping the website redesign as a discussion on the regular agenda. The commission agreed. 7.2 Schedule 2024 Budget and Goals Work Session Moved by Commissioner Wagner and seconded by Commissioner Beyer to schedule a special meeting for August 7, 2023, at 5:45 p.m. to discuss the proposed 2024 Budget and Goals. Motion carried 7-0. 7.3 General Updates Mr. O’Neil presented the staff report. He discussed the following:  Thunderstruck is continuing ahead with their project.  They are receiving inquiries from companies searching for 10,000-square-foot building space. The number one problem we are having is not being able to offer a 10,000-square-foot building space. Keep in mind the possibilities for this type of project, mainly for light industrial.  They have had some positive conversations with a possible chicken restaurant chain looking for a site in the area. 8. Adjourn Regular Meeting Moved by Commissioner Beyer and seconded by Commissioner Hartwig to adjourn the regular meeting of the Economic Development Authority. Motion carried 7-0. The regular meeting adjourned at 5:53 p.m. Minutes prepared by Jolene Richter ___________________ Dan Tveite, EDA President ___________________ Tina Allard, City Clerk Closed Meeting of the Elk River Economic Development Authority Held at the Elk River City Hall Monday, August 21, 2023 Members Present: Vice President Mike Beyer, Commissioners Cory Grupa, Jennifer Wagner, Jeff Hartwig, and Charlie Blesener Members Absent: President Dan Tveite, Commissioner Matt Westgaard (due to attending a Minnesota Municipal Utilities Association Conference) Staff Present: Economic Development Director Brent O’Neil, Economic Development Specialist Josh Mollan, and City Clerk Tina Allard Also Present: Ryan Hardin, Hardin Companies 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 6:00 p.m. by Vice President Beyer. Vice President Beyer stated the EDA meeting will be closed per MN Statute 13D.05, Subd. 3C(c)(3) to consider an offer for the purchase of real property owned by the city at PID 75-597-0105, 13566 185th Avenue NW and PID 75-597-0105, 13530 185th Avenue NW. 2. Closed Meeting The purpose of the meeting was to consider an offer for the purchase of the following real property owned by the city. th PID 75-597-0105, also known as 13566 185 Avenue NW, Elk River th PID 75-597-0110, also known as 13530 185 Avenue NW, Elk River 3. Adjournment Moved by Commissioner Grupa and seconded by Commissioner Wagner to adjourn the closed meeting of the Economic Development Authority at 6:11 p.m. ___________________ Dan Tveite, EDA President ___________________ Tina Allard, City Clerk Meeting of the Elk River Economic Development Authority Held at the Elk River City Hall November 20, 2023 Members Present: President Dan Tveite, Commissioners Cory Grupa, Matt Westgaard, Mike Beyer, Jennifer Wagner, and Jeff Hartwig Members Absent: Commissioner Charlie Blesener Staff Present: Economic Development Director Brent O’Neil, Economic Development Specialist Josh Mollan, and City Clerk Tina Allard 1. Call Meeting to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 5:31 p.m. by President Tveite. 2. Pledge of Allegiance: Pledge of Allegiance was recited. 3. Consider Agenda Moved by Commissioner Wagner and seconded by Commissioner Westgaard to approve the agenda. Motion carried 6-0. 4. Consent Agenda Moved by Commissioner Beyer and seconded by Commissioner Grupa to approve: 4.1 October 16, 2023, Regular EDA Minutes. 4.2 Check Register as outlined in the staff report. 4.3 Balance Sheet as outlined in the staff report. 4.4 Revenue/Expenditure reports as outlined in the staff report. Motion carried 6-0. 5. Open Forum No one appeared for open forum. 6. Public Hearings There were no public hearings. 7.1 Beautification Award Mr. Mollan presented the staff report. He described the business. Economic Development Authority Minutes Page 2 November 20, 2023 ----------------------------- Moved by Commissioner Westgaard and seconded by Commissioner Beyer to approve the Beautification award to Edge Bar and Boutique. Motion carried 5-0 with Commissioner Wagner abstaining due to conflict of interest as having an ownership interest in the business. 7.2 General Updates Mr. O’Neil provided updates on the following:  Sherburne County Housing Summit was well attended.  Completed Central MN bus tour with Greater MSP and the county highlighting land available for development. th  The closing of the 170 Street property was delayed due to right-of-way access issues the buyer wants resolved.  TIF 23 is sunsetting by year-end.  Spoke at Real Estate Journal industrial summit. Mr. Mollan provided an update on the following:  Possible Beautification Committee member addition.  A new Development Minute video series will be completed soon.  In mid-February the University of Minnesota Extension will be hosting a home-grown entrepreneurial event. 8. Adjourn Regular Meeting Moved by Commissioner Westgaard and seconded by Commissioner Beyer to adjourn the regular meeting. Motion carried 6-0. The Authority recessed at 5:42 p.m. and reconvened in work session at 5:45 p.m. 9.1. Shoot Steel TIF Modification Mr. O’Neil presented the staff report. Evan Moyer, owner of Shoot Steel and Moyer Properties, provided background on this item as noted in his letter in the staff report. He discussed the new company, TriMark Minnesota, whom he is subleasing space to. He asked to have his TIF agreement amended so he can count the employees of TriMark as part of meeting his job creation goals. Mr. O’Neil stated the statute and agreement specify measures if Shoot Steel is not meeting the job creation requirements including a reduction in the TIF amount up to full rescinding. He stated the question to consider is if TIF can be used for real estate, jobs, business, goals, and whether the creation of jobs by another company achieved the TIF goals. He asked if there is support for it. President Tveite stated he could support the request because the Authority asked for more jobs, and this Economic Development Authority Minutes Page 3 November 20, 2023 ----------------------------- would meet the goal. Commissioner Westgaard expressed concerns with setting precedent, noting this is an unusually unique request. He questioned what other challenges this could potentially bring with other TIF districts. Commissioner Beyer stated he may have a conflict of interest because his business does business with Trimark. Mr. O’Neil stated the EDA attorney advised any agreement modification would require the new company to join as party to if the EDA decided to move forward with the modification. Commissioner Wagner doesn’t want to see Mr. Moyer put out of business and wants to find a different way to make this work outside of a TIF modification. She noted the agreement was clear and specific and is nervous about amending it and setting a precedence. Mr. O’Neil stated he’s not sure how other tools would work for the owner, but they could look at a loan or tax-based incentives. He also suggested the EDA will have to ask to what degree we re-open a “but-for” analysis discussion and re-evaluate the current financial need. Commissioner Grupa asked Mr. Moyer how he sees the future for his company. Mr. Moyer stated it’s unpredictable with the current wars occurring. He also stated it affects his business when there are bottlenecks in the manufacturing process and the demand increases. Mr. O’Neil noted this is legally unprecedented territory but does feel there is a legal case to be made for the modification and there is still time to keep working on the issue. Commissioner Westgaard stated if every avenue is exhausted and the Authority wants to keep the business viable, to make it through difficult time with materials it may have to be considered. 9.2 Die Concepts Loan Mr. O’Neil presented the staff report. He expressed concerns with the amount of time that has passed without receiving requested materials and the Authority may want to take additional steps to move forward on collection. He did note he heard recently from the company they want to obtain a traditional loan to pay- off the EDA loan. Commissioner Westgaard stated if there is regular communication between the parties, he’d be willing to give them some time to plan as personal financing can take a while. The consensus of the Authority is to give Die Concepts until the next EDA meeting before deciding. 10. Adjourn Work Session Moved by Commissioner Westgaard and seconded by Commissioner Beyer to adjourn the work session meeting. Motion carried 6-0. Economic Development Authority Minutes Page 4 November 20, 2023 ----------------------------- The Commission adjourned the work session at 6:11 p.m. 11. Closed Meeting – PID’s 75-597-0105 and 75-597-0110 Members Present: President Dan Tveite, Commissioners Cory Grupa, Matt Westgaard, Mike Beyer, Jennifer Wagner, and Jeff Hartwig Members Absent: Commissioner Charlie Blesener Staff Present: Economic Development Director Brent O’Neil, Economic Development Specialist Josh Mollan, and City Clerk Tina Allard At 6:12 p.m., President Tveite stated the Economic Development Authority (EDA) will be holding a closed meeting pursuant to MN Statute §13D.05, Subdivision 3(c)(3). The EDA will develop and consider offers or th counteroffers for sale of real estate at PID#75-597-0105, also known as 13566 185 Avenue NW, Elk River th and PID #75-597-0110, also known as 13530 185 Avenue NW, Elk River. The meeting was closed, and discussion was held regarding the above-referenced properties. 12. Adjournment President Tveite adjourned the meeting at 6:22 p.m. ___________________ Dan Tveite, President ___________________ Tina Allard, City Clerk