Loading...
07-21-2025 EDA Packet Economic Development Authority Regular Meeting, Work Session, & Closed Meeting Agenda Monday, July 21, 2025 5:30 PM Elk River City Hall ▪ Regular meeting in Council Chambers ▪ Work Session and Closed meeting in Upper Town Conference Room immediately following regular meeting 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE 3. CONSIDER AGENDA 4. CONSENT AGENDA Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of these items unless there is a request to remove the item from the consent agenda to the regular agenda. 4.1 Draft Minutes - June 16, 2025 4.2 Check Register 4.3 Balance Sheet 4.4 Revenue/Expenditure Reports 5. OPEN FORUM An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a future meeting. 6. PUBLIC HEARINGS An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments become part of the official public record. For this reason, all comments must be made at the podium so they can be heard and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding additional testimony. 7. GENERAL BUSINESS Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion, solicit public feedback. 7.1 General Updates 8. MOTION TO ADJOURN REGULAR MEETING 9. WORK SESSION Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish Page 1 of 21 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name and address for the official record. 9.1 Workshop on 2026 Budget 10. MOTION TO ADJOURN 11. CLOSED MEETING - PID # 75-00757-0105 - 17610 TYLER ST. NW 11.1 Statement to be read by the Chair: "The Economic Development Authority will be closing the meeting pursuant to MN Statute Section 13D.05, Subdivision 3(c)(1) to consider offers or counteroffers relating to the sale of PID 75-00757-0105, 17610 Tyler ST. NW." 11.2 Motion Calling Closed Meeting 11.3 Hold Closed Meeting 11.4 Motion to Adjourn Closed Meeting Page 2 of 21 Meeting of the Economic Development Authority Held at the Elk River City Hall Monday, June 16, 2025 Members Present:President Matt Westgaard, Commissioners Cory Grupa, J. Brian Calva, Jeff Hartwig, Mike Beyer, Jennifer Wagner, and Charlie Blesener Members Absent:None Staff Present:Economic Development Director Brent O'Neil, Economic Development Specialist Joshua Mollan, and Recording Secretary Jolene Richter 1.CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 5:30 p.m. 2.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3.CONSIDER AGENDA Moved by Commissioner Jennifer Wagner and seconded by Commissioner J. Brian Calva to approve the agenda. Motion Carried 7-0. 4.CONSENT AGENDA Moved by Commissioner Charlie Blesener and seconded by Commissioner Mike Beyer to approve the following consent items as outlined in their respective staff reports. Motion Carried 7-0. 4.1 Draft Minutes - May 19, 2025 4.2 Check Register 4.3 Balance Sheet 4.4 Revenue/Expenditure Reports 5.OPEN FORUM No one appeared for open forum. Page 3 of 21 Economic Development Authority Minutes June 16, 2025 --------- Page 2 of 4 6.PUBLIC HEARINGS There were no public hearings. 7.GENERAL BUSINESS 7.1 General Updates Mr. O'Neil provided the following updates: ▪Mr. O'Neil and Debbi Rydberg from the Elk River Chamber of Commerce have been talking about more engagement during manufacturing month in October, such as identifying all the manufacturers and conducting B.R.E. visits. ▪J &J has started and is now moving dirt at their site. ▪Pickle Paradise is moving forward and is on the City Council agenda tonight. ▪Through the HRA, they partner with the MN Center for Environment and Energy, which helps manage loans and bring energy efficiency into homes and businesses. They are looking to do an event this fall to talk about how to best manage control systems on large commercial projects to get the most efficiency out of energy systems. They are looking to host the event at the Furniture and Things Community Event Center with EDA participation. 8.MOTION TO ADJOURN REGULAR MEETING Moved by Commissioner J. Brian Calva and seconded by Commissioner Mike Beyer to adjourn the meeting. Motion Carried 7-0. The regular meeting adjourned at 5:34 p.m. Chair Westgaard called the work session to order at 5:38 p.m. 9.WORK SESSION 9.1 Microloan Program Updates The staff report was presented. Commissioner Blesener explained that he could support all the items that have been listed as suggestions. He stated we have a downtown program, and there were upgrades that were made, but the programs were not used by those businesses. He thinks these programs are being underutilized and wondered if they needed to be marketed better, or do a focus group with those who did not use it, and ask why they didn't. He stated you could ask, were they unaware or was it just easier to get your own through the bank, and suggested finding out what they need. Chair Westgaard stated at the Joint Finance Committee, there was a bank representative stating that there was interest, and they questioned why it is not city-wide and only downtown. They also talked about the possibility of opening up the program city-wide and maybe having an added incentive for the downtown area. They expressed that the interest rate needs to be very attractive. Commissioner Calva confirmed that the dollar amount was $75,000 and asked if that was a significant amount that would help a business? Commissioner Wagner stated Yes, that every bit helps. Page 4 of 21 Economic Development Authority Minutes June 16, 2025 --------- Page 3 of 4 Mr. O'Neil explained that it sets off other expenses. Commissioner Calva asked if they advertise the program. Mr. O'Neil stated that it is on the website, but they could look at other marketing options. The board discussed the length of the application and the application process. Commissioner Wagner stated that she did not apply for it because of the application, because it was a lot, and at the time, it seemed better to do another loan. Right now, she would love to have a 3% loan. She agrees they need to expand into the community and stated that if they truly want to help businesses, she does not understand why they would move the percentage. She also thinks they could expand on the bullet points, stating that there are businesses that could utilize this that do not fit into the bullet points. Mr. O'Neil thanked her for the feedback and said it's one thing having it in a lab versus how it works in the real world. Commissioner Blesener suggested one of the ways to educate people is to hold a workshop regarding the programs that are available. Chair Westgaard suggested engaging the Chamber as well. Moved by Commissioner Cory Grupa and seconded by Commissioner Jeff Hartwig to adjourn the meeting. Motion 7-0. The Work Session adjourned at 5:55 p.m. 10.CLOSED MEETING - PID #75-00757-0105 - 17610 TYLER ST. NW Chair Westgaard called the closed meeting to order at 5:56 p.m. Members Present: President Matt Westgaard, Commissioners Mike Beyer, Cory Grupa, Jennifer Wagner, Jeff Hartwig, J. Brian Calva, and Charlie Blesener Members Absent: None Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist Joshua Mollan, and Recording Secretary Jolene Richter 10.1 Statement to be read by the Chair: "The Economic Development Authority will be closing the meeting pursuant to MN Statute Section 13D.05, Subdivision 3(c)(1) to consider offers or counteroffers relating to the sale of PID 75-00757-0105, 17610 Tyler ST. NW." 10.2 Motion Calling Closed Meeting Page 5 of 21 Economic Development Authority Minutes June 16, 2025 --------- Page 4 of 4 10.3 Hold Closed Meeting 10.4 Motion to Adjourn Closed Meeting Moved by Commissioner J. Brian Calva and seconded by Commissioner Jennifer Wagner to adjourn the meeting. Motion Carried 7-0. The meeting adjourned at 6:14 p.m. Minutes prepared by Jolene Richter. ___________________ Matt Westgaard, EDA President ___________________ Tina Allard, City Clerk Page 6 of 21 CITY OF ELK RIVER Unpaid Invoice Report - EDA Page: 1 Report dates: ALL-ALL Jul 17, 2025 02:07PM Report Criteria: Invoice Detail.GL account = {>=} "920" Invoice Sequence Description Type Invoice Due Invoice Net Invoice GL Account Number Number Date Date Amount Check Amount Number CITY OF ELK RIVER 920 06-2025 EDA 1 EDA SALARIES - JUN 25 Invoice 07/15/2025 07/21/2025 9,979.10 9,979.10 920-4-6210-4101 06-2025 EDA 2 EDA SALARIES - JUN 25 Invoice 07/15/2025 07/21/2025 1,050.00 1,050.00 920-4-6210-4103 06-2025 EDA 3 EDA SALARIES - JUN 25 Invoice 07/15/2025 07/21/2025 763.44 763.44 920-4-6210-4104 06-2025 EDA 4 EDA SALARIES - JUN 25 Invoice 07/15/2025 07/21/2025 629.59 629.59 920-4-6210-4105 06-2025 EDA 5 EDA SALARIES - JUN 25 Invoice 07/15/2025 07/21/2025 151.64 151.64 920-4-6210-4107 06-2025 EDA 6 EDA SALARIES - JUN 25 Invoice 07/15/2025 07/21/2025 1,445.40 1,445.40 920-4-6210-4108 06-2025 EDA 7 EDA REIMB - SUPPLIES/STAPLES Invoice 07/15/2025 07/21/2025 50.96 50.96 920-4-6210-4201 2025 EDA TO GF 1 TRANSFER - GENERAL FUND Invoice 07/15/2025 07/21/2025 48,000.00 48,000.00 920-4-6210-4721 Total 17440 CITY OF ELK RIVER: 62,070.13 62,070.13 Total 920: 62,070.13 62,070.13 JOSHUA MOLLAN 920 06252025JM 1 PHONE REIMB - MOLLAN JAN - MAY Invoice 06/25/2025 07/25/2025 150.00 150.00 920-4-6210-4321 06162025JM 1 REIMB MILEAGE,LODGING,MEALS M Invoice 06/16/2025 07/16/2025 429.02 429.02 920-4-6210-4331 Total 14730 JOSHUA MOLLAN: 579.02 579.02 Total 920: 579.02 579.02 BRENT O'NEIL 920 BAO 05-28-2025 1 CELL PHONE REIMB - ONEIL JAN/JU Invoice 05/28/2025 08/01/2025 180.00 180.00 920-4-6210-4321 BAO 05-09-2025 1 REIMB MILEAGE Invoice 06/27/2025 08/01/2025 36.12 36.12 920-4-6210-4331 BAO 05-13-2025 1 REIMB MILEAGE & PARKING Invoice 06/25/2025 07/25/2025 126.04 126.04 920-4-6210-4331 Total 14600 BRENT O'NEIL: 342.16 342.16 Total 920: 342.16 342.16 Total : 62,991.31 62,991.31 Grand Totals: 62,991.31 62,991.31 Summary by General Ledger Account Number GL Account Number Debit Credit Net 920-4-6210-4101 9,979.10 .00 9,979.10 920-4-6210-4103 1,050.00 .00 1,050.00 920-4-6210-4104 763.44 .00 763.44 920-4-6210-4105 629.59 .00 629.59 920-4-6210-4107 151.64 .00 151.64 920-4-6210-4108 1,445.40 .00 1,445.40 920-4-6210-4201 50.96 .00 50.96 920-4-6210-4321 330.00 .00 330.00 Page 7 of 21 CITY OF ELK RIVER Unpaid Invoice Report - EDA Page: 2 Report dates: ALL-ALL Jul 17, 2025 02:07PM Summary by General Ledger Account Number GL Account Number Debit Credit Net 920-4-6210-4331 591.18 .00 591.18 920-4-6210-4721 48,000.00 .00 48,000.00 Grand Totals: 62,991.31 .00 62,991.31 Summary by General Ledger Posting Period GL Posting Period Debit Credit Net 00/00 62,991.31 .00 62,991.31 Grand Totals: 62,991.31 .00 62,991.31 Report Criteria: Invoice Detail.GL account = {>=} "920" Page 8 of 21 CITY OF ELK RIVER Balance Sheet June 30, 2025 Fund 920 - EDA Assets 920-1010 Cash - EDA 2,354,149.68 Total Assets 2,354,149.68 Fund Equity 920-2400 Fund Balance 2,418,623.64 Revenues over Expenditures - YTD (64,473.96) Total Fund Equity 2,354,149.68 Total Liabilities & Equity 2,354,149.68 Page 9 of 21 CITY OF ELK RIVER Revenues with Comparison to Budget For the Months Ending June 30, 2025 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-3-0000-3111 Property Taxes - - 427,000.00 427,000.00 0% 920-3-0000-3342 Other Local Grants - 1,600.00 - (1,600.00) 0% 920-3-0000-3621 Interest Income 7,296.33 42,097.07 25,000.00 (17,097.07) 168% 920-3-0000-3949 Transfer-HRA - - 4,000.00 4,000.00 0% Total Fund Revenue 7,296.33 43,697.07 456,000.00 412,302.93 10% Page 10 of 21 CITY OF ELK RIVER Expenditures with Comparison to Budget For the Months Ending June 30, 2025 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-4-6210-4101 Regular Pay 9,979.10 48,897.61 130,800.00 81,902.39 37% 920-4-6210-4103 Part-time Pay 1,050.00 5,250.00 12,600.00 7,350.00 42% 920-4-6210-4104 PERA 763.44 3,757.33 10,000.00 6,242.67 38% 920-4-6210-4105 FICA 629.59 3,056.26 8,800.00 5,743.74 35% 920-4-6210-4107 Medicare 151.64 740.90 2,100.00 1,359.10 35% 920-4-6210-4108 Insurance 1,445.40 8,307.00 25,500.00 17,193.00 33% 920-4-6210-4109 Workers Comp 133.00 399.00 650.00 251.00 61% 920-4-6210-4201 Office Supplies 14.97 104.81 3,000.00 2,895.19 3% 920-4-6210-4212 Fuels & Lubes - - 50.00 50.00 0% 920-4-6210-4304 Legal Fees - - 10,000.00 10,000.00 0% 920-4-6210-4319 Professional Services - - 25,000.00 25,000.00 0% 920-4-6210-4321 Telephone - - 400.00 400.00 0% 920-4-6210-4322 Postage - 0.70 100.00 99.30 1% 920-4-6210-4331 Travel, Conferences & Schools 806.33 4,076.67 11,000.00 6,923.33 37% 920-4-6210-4349 Advertising/Marketing - 11,481.99 73,600.00 62,118.01 16% 920-4-6210-4359 Publishing - 77.40 1,000.00 922.60 8% 920-4-6210-4361 Insurance - 54.00 250.00 196.00 22% 920-4-6210-4404 Software Services 390.33 3,990.33 15,000.00 11,009.67 27% 920-4-6210-4433 Dues & Subscriptions 10,500.00 14,977.03 4,650.00 (10,327.03) 322% 920-4-6210-4440 Miscellaneous - 3,000.00 73,500.00 70,500.00 4% 920-4-6210-4721 Transfer-General Fund - - 48,000.00 48,000.00 0% Total Fund Expenditures 25,863.80 108,171.03 456,000.00 347,828.97 24% Net Revenue Over Expenditures (18,567.47) (64,473.96) - 64,473.96 0% Page 11 of 21 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 7.1 Meeting Date July 21, 2025 Prepared By Brent O'Neil, Economic Development Director Item Description General Updates Reviewed by Cal Portner Action Requested This item is presented for information and discussion purposes. Background/Discussion This item is an opportunity to discuss relevant topics and other non-action items of the board. Financial Impact N/A Mission/Policy/Goal Support commercial and industrial growth in Elk River. Attachments None Page 12 of 21 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 9.1 Meeting Date July 21, 2025 Prepared By Brent O'Neil, Economic Development Director Item Description Workshop on 2026 Budget Reviewed by Cal Portner Action Requested Provide feedback on the draft 2026 EDA budget. Background/Discussion Staff's initial work on the budget for 2026 is substantially carrying forward existing budget items and similar expenditure amounts from 2025, with most items remaining relatively flat. Goals and objectives are similar as well. Noteworthy items for discussion are land development and proposed marketing changes, which include a greater focus on retail recruitment and destination/traveler targeting. The draft budget is proposed at $561,620, compared to $456,000 approved for 2025. The increase is driven primarily by the land and marketing items. We do anticipate a revenue increase from interest income, which would minimize impacts to the levy. Following the workshop, staff will work to finalize the budget for EDA consideration and adoption in August. The budget adopted by the EDA will be presented to the City Council in September for inclusion in the preliminary levy. Financial Impact N/A Mission/Policy/Goal EDA bylaws require an annual budget workshop ahead of budget adoption and final recommendation to the city council. Attachments 1. Combined Summary and Detail 2026 Draft EDA Budget 2. 2026 EDA Goals and Measures Page 13 of 21 Page 14 of 21 Page 15 of 21 Page 16 of 21 Page 17 of 21 Page 18 of 21 Page 19 of 21 Performance Measures & Goals for 2026 Division:Economic Development Completed by:Brent O'Neil, Josh Mollan Date:July 1, 2025 Performance Measure 2022 Actual 2023 Actual 2024 Actual 2025 Estimated 2025 YTD 2026 Projected Business Engagements (prev. tracked as formal BRE)7 21 40 50 30 50 Facilitate Site Visits to Elk River 1 6 4 3 1 5 Commercial - Industrial permit value $67,000,000 $51,000,000 $24,000,000 $50,000,000 $42,200,000 $50,000,000 Net impressions from placed ads 200,000 150,000 350,000 350,000 200,000 200,000 EDA Website Traffic 5,500 5,500 6,100 8,000 5,900 7,000 Division Goal Goal Objective/Task Support Elk River's existing businesses through relationship building, programmatic offerings, and high quality city services Continue to communicate with businesses on factors impacting success, growth, and expansion, including BRE visits and other interactions. Provide technical assistance as necessary and through feedback ensure economic development programs of the city are in line with business needs and utilization. Develop and modify programming by utilizing feedback from the business community. Consider an annual or semi-annual forum of local businesses to complement business engagements and foster additional outreach to the business community. Attract new business development to Elk River to build the city's economic vibrancy, job offerings and tax base Continue to market and promote the community. Make contact with prospective businesses and siting professionals, specifically highlighting the community's strengths. Market existing properties (EDA and private) and capture opportunities for land development and assembly. Direct targeted focus on specific sectors, including those identified in the EDA strategic plan: precision manufacturing, renewable energy, regional distribution, biomedial manufacturers, and health care services. Consider new programs that promote the community image Support beautification efforts, public art, events, and investments that attract visitors to Elk River. Direct investment in certain programs may lead to enhanced community perception and increase in visitors to Elk River. Partner with peer organizations Continue to work with Sherburne County, Elk River Area Chamber of Commerce, GreaterMSP, DEED, ERMU, and ISD 728. Consider regional marketing partnerships. Maintain an inventory of private and public properties available for future development Keep a detailed and regularly-updated inventory of properties which may be suitable for development and likely available to promote to business prospects. In addition to utilizing the MNCAR system for actively available properties, also identify properties in coordination with owners that could be identified and shared with interested parties. Develop a web-based portal for disseminating available private property not otherwise participating in a listing service. Maintain financial incentives to enhance economic development Leverage city programs, MnDEED monies, the Initiative Foundation, Sherburne County Revolving Loan Fund and other financial tools and incentives. Take a "right-sizing" approach to maximize private investment relative to public participation. Evaluate programs for relevance and capacity to serve current community needs; modify as necessary. Position the Together Elk River (TER) campaign/brand to support ongoing community priorities and challenges. Focus on transitioning TER's support of the 169 Redefine construction project and traveler-based marketing campaign to other community-oriented business support campaign(s). Promote visitor attraction to Elk River Implement marketing and other activities which boost visitor traffic to Elk River for shopping, recreation, events, and enjoyment. Recruit hotel and restaurant investment in the city. Implement structured destination marketing. Plan for new commercial and industrial growth areas Identifies areas suitable for C/I land expansion and how to best facilitate private investment. This can include studies to determine how and when utility infrastructure can be inplemented as well as tools for brining more land on-line, inluding private and public property. Priortize efficient and renewal energy usage by promoting implemenation of energy best practices. Work with ERMU and city departments. Promote energy loan and rebate programs. Support manufacturing and other business in the energy field. Page 20 of 21 Business Engagements 2024 Notes Business Engagements 2025 Notes YMCA BRE J&J Machine Project Well Read Books Reel Allison's Addicts Boutique Reel AJ's Complete Automotive Reel CDI Project Azitala Yoga BRE Escape Odyssey Tour Maahs Motors Reel Main Street Family Services Tour MN Roots Reel The Overlook Tour Professional Karate Studios BRE Tipsy on Main Tour Salon on Main RC Vireo Health Tour Heritage Millwork RC Kiser Construction Reel Gym 365 RC Northbound Liquor Reel Halo Heart Yoga RC Westbound Liquor Reel Wayne Swart State Farm Award Wayne Swart State Farm Award Metal Craft Tour Motherland African Market Project Edge Bar + Boutique Award Five Below RC Peacetree Family Institute BRE The Bank of Elk River RC Price Commercial Tour SNAP Fitness BRE Speedway Reel MidWestOne Bank Reel Page 21 of 21