11-20-2023 EDA MINMeeting of the Elk River Economic Development Authority
Held at the Elk River City Hall
t . November 20, 2023
ver
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.
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November 20, 2023
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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.
■ 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.
61 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
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November 20, 2023
would meet the goal.
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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.
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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 75-597-01 10
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
counteroffers for sale of real estate at PID#75-597-0105, also known as 13566 185`s Avenue NW, Elk River
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
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