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Economic Development Authority Packet - September 15, 2025 Economic Development Authority Regular Meeting Agenda Monday, September 15, 2025 5:30 PM Elk River City Hall ▪ Regular meeting in Council Chambers 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 - August 18, 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 Presentation - Garden Gem Awards 7.2 Levy for Debt Service on YMCA Bonds 7.3 General Updates 8. MOTION TO ADJOURN Page 1 of 15 Meeting of the Economic Development Authority Held at the Elk River City Hall Monday, August 18, 2025 Members Present: Vice President Jennifer Wagner, Commissioners Cory Grupa, J. Brian Calva, Jeff Hartwig, Mike Beyer, and Charlie Blesener Members Absent: President Matthew Westgaard Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist Joshua Mollan, and City Clerk Tina Allard 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 Mike Beyer and seconded by Commissioner J. Brian Calva to approve the agenda. Motion Carried 6-0. 4. CONSENT AGENDA Moved by Commissioner Cory Grupa and seconded by Commissioner Jeff Hartwig to approve the following consent items as outlined in their respective staff reports. Motion Carried 6-0. 4.1 DRAFT Minutes - July 21, 2025 4.2 Check Register 4.3 Balance Sheet 4.4 Revenue/Expenditure Reports 5. OPEN FORUM No one appeared for open forum. Page 2 of 15 Economic Development Authority Minutes August 18, 2025 --------- Page 2 of 3 6. PUBLIC HEARINGS There were no public hearings. 7. GENERAL BUSINESS 7.1 2026 Budget Resolution The staff report was presented. Moved by Commissioner J. Brian Calva and seconded by Commissioner Mike Beyer to adopt Resolution 25-01 establishing the tax levy for the Economic Development Authority, adopting the budget for 2026, and recommending $429,850 for inclusion in the 2026 levy. Motion Carried 6-0. 7.2 Committee and General Updates Beautification Committee Mr. Mollan stated they have winners in four of the five beautification award categories, noting there were no nominations for the townhome category. He stated the commercial winner will be brought to the September meeting with the remaining category winners going to the next Housing and Redevelopment Authority meeting. Together Elk River Mr. Mollan provided an update on the Play campaign. Development Minute Mr. Mollan stated three businesses were recently filmed and will be released soon. EDA Loan Mr. O'Neil stated the Twin Cities Metalworks (formally Orluck Industries) loan is on the last payment, which will involve some attorney, interest and late fees. He noted a release of the mortgage will be scheduled for a future meeting. Elk Park Center Mr. O'Neil discussed a call he had with representatives from the Elk Park Center multi-tenant facility regarding the clients they are looking for and informing them of the assistance city staff can offer. Commissioner Blesener suggested the Center sell off a smaller space in the parking lot for a restaurant. Mr. O'Neil noted this was part of the discussion and the Center has indicated they are hoping to fill current vacant space before searching for tenants at a new building. Commissioner Calva suggested that a new restaurant could also help attract tenants. Mr. O'Neil stated staff is looking at creating stronger engagement for manufacturing month in October and they will have more details at a future meeting. 8. MOTION TO ADJOURN Moved by Commissioner J. Brian Calva and seconded by Commissioner Charlie Blesener to adjourn the meeting. Motion Carried 6-0. Page 3 of 15 Economic Development Authority Minutes August 18, 2025 --------- Page 3 of 3 The meeting adjourned at 5:44 p.m. Minutes prepared by City Clerk Tina Allard. _______________ Matt Westgaard, EDA President ___________________ Tina Allard, City Clerk Page 4 of 15 Page 5 of 15 Page 6 of 15 Page 7 of 15 Page 8 of 15 CITY OF ELK RIVER Balance Sheet August 31, 2025 Fund 920 - EDA Assets 920-1010 Cash - EDA 2,512,126.77 Total Assets 2,512,126.77 Fund Equity 920-2400 Fund Balance 2,418,623.64 Revenues over Expenditures - YTD 93,503.13 Total Fund Equity 2,512,126.77 Total Liabilities & Equity 2,512,126.77 Page 9 of 15 CITY OF ELK RIVER Revenues with Comparison to Budget For the Months Ending August 31, 2025 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-3-0000-3111 Property Taxes 1.67 220,862.92 427,000.00 206,137.08 52% 920-3-0000-3342 Other Local Grants - 1,600.00 - (1,600.00) 0% 920-3-0000-3621 Interest Income 9,401.45 55,337.16 25,000.00 (30,337.16) 221% 920-3-0000-3949 Transfer-HRA - 4,000.00 4,000.00 - 100% Total Fund Revenue 9,403.12 281,800.08 456,000.00 174,199.92 62% Page 10 of 15 CITY OF ELK RIVER Expenditures with Comparison to Budget For the Months Ending August 31, 2025 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-4-6210-4101 Regular Pay 10,090.09 68,966.80 130,800.00 61,833.20 53% 920-4-6210-4103 Part-time Pay 1,050.00 7,350.00 12,600.00 5,250.00 58% 920-4-6210-4104 PERA 775.20 5,295.97 10,000.00 4,704.03 53% 920-4-6210-4105 FICA 636.48 4,322.33 8,800.00 4,477.67 49% 920-4-6210-4107 Medicare 154.23 1,046.77 2,100.00 1,053.23 50% 920-4-6210-4108 Insurance 1,445.40 11,197.80 25,500.00 14,302.20 44% 920-4-6210-4109 Workers Comp - 399.00 650.00 251.00 61% 920-4-6210-4201 Office Supplies 35.91 191.68 3,000.00 2,808.32 6% 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 - 330.00 400.00 70.00 83% 920-4-6210-4322 Postage - 0.70 100.00 99.30 1% 920-4-6210-4331 Travel, Conferences & Schools - 4,895.16 11,000.00 6,104.84 45% 920-4-6210-4349 Advertising/Marketing 932.99 13,824.98 73,600.00 59,775.02 19% 920-4-6210-4359 Publishing - 77.40 1,000.00 922.60 8% 920-4-6210-4361 Insurance 27.00 81.00 250.00 169.00 32% 920-4-6210-4404 Software Services - 3,990.33 15,000.00 11,009.67 27% 920-4-6210-4433 Dues & Subscriptions 350.00 15,327.03 4,650.00 (10,677.03) 330% 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 - 100% Total Fund Expenditures 15,497.30 188,296.95 456,000.00 267,703.05 41% Net Revenue Over Expenditures (6,094.18) 93,503.13 - (93,503.13) 0% Page 11 of 15 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 September 15, 2025 Prepared By Joshua Mollan, Economic Development Specialist Item Description Presentation - Garden Gem Awards Reviewed by Brent O'Neil Cal Portner Action Requested Recognize the 2025 Commercial Garden Gem Award winner, Plaisted Companies, with a photo and presentation of the award by President Westgaard. Background/Discussion During the inaugural Garden Gem Awards, the Beautification and Public Art Committee received 12 nominations for 10 properties. In August, the volunteer judging panel visited and scored the participating properties, recommending the highest scorer in each category. Plaisted Companies earned recognition for commercial properties. The HRA recognized the winners of the single-family and neighborhood categories at its September meeting. The winners will be presented with a personalized garden stone and a winner's sign to be temporarily displayed at the property. Financial Impact Program expenses are under $200. Mission/Policy/Goal The Garden Gem Awards aim to recognize exceptional gardens and landscaping in Elk River thereby supporting the beauty of the neighborhood and the community as a whole. Attachments None Page 12 of 15 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 7.2 Meeting Date September 15, 2025 Prepared By Joshua Mollan, Economic Development Specialist Item Description Resolution 25-02: Levy for Debt Service on YMCA Bonds Reviewed by Brent O'Neil Cal Portner Action Requested Approve, by motion, Resolution 25-02 establishing the 2026 referendum tax levy of $518,866 for debt service on the YMCA facility. Background/Discussion In 2007, the EDA issued $12 million in bonds for the construction of a recreational facility to be leased to the YMCA. In 2013, the EDA issued $9,685,000 crossover refunding bonds to redeem the Series 2007 bonds. The refunding created interest savings and set the maturity of the bonds for 2033. Under the lease agreement with the YMCA, the EDA pays two-thirds of the debt service, and the YMCA pays the remaining one-third. The EDA portion of the scheduled bond payment for 2026 is $494,158. The bond issuance requirements necessitate funding the annual payments with a coverage ratio of 1.05, or 105% percent of the bond payment. Therefore, the required levy for the 2026 bond payment is $518,866. Financial Impact The required levy for bond payments in 2026 is $518,866. Mission/Policy/Goal Support Elk River's existing businesses through relationship building, programmatic offerings, and high-quality city services. Attachments 1. EDA RES 25-02 YMCA Resolution Page 13 of 15 4 Resolution 25-02 A Resolution of the City of Elk River Economic Development Authority Establishing the Referendum Tax Levy as Approved by Voters for a Recreational Facility to be leased to the YMCA WHEREAS, on September 12, 2006, the voters of the City of Elk River approved a referendum pledging the City’s full faith, credit, and resources to $12,000,000 of bonds for a recreational facility to be leased to the YMCA; and WHEREAS, in 2013, the EDA issued $9,685,000 cross-over refunding bonds to redeem the Series 2007 Bonds on February 1, 2017. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Elk River, Minnesota, as follows: that it hereby levies a tax of $518,866 for taxes payable in 2026 for the purposes of funding the debt service on $9,685,000 of bonds as approved by voters to build a recreational facility to be leased to the YMCA. Passed and adopted this 15th day of September, 2025. Matt Westgaard, EDA President ATTEST: Brent O’Neil, EDA Executive Director Page 14 of 15 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 7.3 Meeting Date September 15, 2025 Prepared By Joshua Mollan, Economic Development Specialist Item Description General Updates Reviewed by Brent O'Neil 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 development in Elk River. Attachments None Page 15 of 15