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08-22-1988 EDA MIN i. . . MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY (EDA) HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 22, 1988 Members Present: Estelle Gunkel, Harold Dobe1, Jim Tralle, Gene Schuldt, and Roger Holmgren Members Absent: None Also Present: Pat Klaers, City Administrator; Lori Johnson, Finance Director; Dick Fursman, Economic Development Coordinator; Mike Mulrooney, Economic Development Consultant; Dave Sellergren, City and EDA Attorney 1. Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order by President Gunkel at 8:07 p.m. 2. Consider EDA Agenda Item 7.1 - Economic Development Consultant retainer fee was added to the agenda. HAROLD DOBEL MOVED TO APPROVE THE EDA AGENDA AS AMENDED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Review and Adopt EDA Bylaws The revised bylaws of the EDA were presented to the EDA for their review. President Gunkel discussed the fact that certain elements were missing from the bylaws. These elements of the bylaws pertained to the Minnesota State Statutes. She indicated it would be helpful to have them included, or on hand, so as to have the information accessible when necessary. EDA Attorney, Dave Sellergren, indicated an option, other than looking up the State Statute, would be to include the Statutes with the bylaws in book form. These changes were recorded by the Economic Development Coordinator for accurate revision of the bylaws. The EDA discussed the revised bylaws at this time and several changes were made by the EDA. ROGER HOLMGREN MOVED SECONDED THE MOTION. TO ADOPT THE EDA BYLAWS AS AMENDED. THE MOTION CARRIED 5-0. JIM TRALLE ROGER HOLMGREN MOVED TO DIRECT THE CITY ATTORNEY TO PREPARE RESOLUTION 88- 1, AUTHORIZING THE PRESIDENT AND TREASURER TO SIGN CHECKS ON BEHALF OF THE EDA. HAROLD DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Consideration of the 1989 EDA Budget ROGER HOLMGREN MOVED TO APPROVE THE BANK OF ELK RIVER AS A DEPOSITARY FOR THE EDA. GENE SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. . . . Page 2 Economic Development Authority Minutes August 22, 1988 5. Sa. Finance Director, Lori Johnson, distributed a copy of the EDA Activity Analysis for the period ended July 31. 1988. She explained the financial status of the EDA as of July 31. 1988. The EDA has received $17,392 in revenues and h~ve spent $11.148. leaving a balance of $6,244. Ms. Johnson indicated that tax levy monies in the amount of $20.386 ~~sti11 due to the City. Lori Johnson explained that the $11.148 spent was actually taken from the City's budget. therefore, the EDA will have to repay the money to the City. GENE SCHULDT MOVED TO REIMBURSE THE CITY OF ELK RIVER FOR EXPENSES INCURRED FOR THEEDA IN THE AMOUNT OF $11.148.68. JIM TRALLE SECONDED THE MOTION. THE MOTION CARRIED 5-0. Lori Johnson reviewed the 1989 budget with the EDA. She indicated that $40.600 has been budgeted for 1989. In order to generate the funds needed for this amount. which would allow the Authority to operate in 1989, the City must levy .75 mill. HAROLD DOBEL MOVED TO APPROVE THE PROPOSED 1989 EDA BUDGET. ROGER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. JIM TRALLE MOVED TO ADOPT EDA RESOLUTION 88-2. A RESOLUTION REQUESTING THE CITY TO LEVY A TAX IN THE AMOUNT OF .75 MILL TIMES THE ASSESSED VALUATION OF TAXABLE PROPERTY IN THE CITY FOR THE BENEFIT OF THE AUTHORITY TO BE USED FOR ECONOMIC DEVELOPMENT AUTHORITY PURPOSES AS PROVIDED IN THE STATUTE. GENE SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. Discussion on EDA Options for Action on the Structures that were destroyed in the recent fire in the central business district Economic Development Coordinator, Dick Fursman, indicated that both property owners of the building destroyed by the fire have expresed interest in reestablishing themselves and are interested in obtaining the City's help. Both Dr. remain in rebuild on to purchase Jarmo1uk and Irma Jenne indicated that it is their desire to the downtown area. Irma Jenne and Dave Plude would like to the site presently burned down, thus indicating their intent Dr. Jarmo1uk's portion of the building. Consider steps to declare downtown a redevelopment district Several timing questions were brought up concerning the use of a redevelopment district for the financing of reconstruction and additional downtown riverfront activities. The EDA Attorney was concerned over the timing of the demolition of the buildings as to the City Council's declaration of downtown as a redevelopment district. Mr. Fursman Page 3 . Economic Development Authority Minutes August 22, 1988 indicated, and the Attorney concurred, that the site, though demolished and cleaned up, would still represent a health and safety issue to satisfy the redevelopment test, as a 20 foot drop from a public sidewalk would remain. To ensure the requirements for a redevelopment district can be satisfied, the Attorney was directed to evaluate the testing of downtown for the requirements of a redevelopment district. It was indicated by Mr. Fursman that the City is proposing to develop the downtown area into a Tax Increment Financing district so that taxes can be captured and used for the purpose of redevelopment of the damaged properties and the backs of riverfront businesses. It was indicated by the Attorney that a redevelopment plan would be the first step in establishing the basis for financing the downtown projects as described. After further discussion, it was stated that the City had a downtown redevelopment plan adopted by the City Council in 1982 and that this plan would be sufficient provided it is revised to reflect the recent developments. COUNCILMEMBER DOBEL MOVED TO DIRECT THE CITY ATTORNEY TO DO AN ANALYSIS OF PROPERTY TO DETERMINE WHETHER THE AREA QUALIFIES AS A REDEVELOPMENT DISTRICT. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. . 5b. Consider acquiring commercial property in downtown The EDA discussed the possibility of the EDA purchasing property for the purpose of ensuring the central business district develops according to the City wide plan. After discussing this possibility, it was the general consensus that this would be a legitimate use of EDA funds. 6. Revolving Loan Guidelines Dick Fursman briefly reviewed the revolving loan fund guidelines with the EDA. He stated that the guidelines represent requirements for businesses requesting a loan from the City. He further indicated that the EDA should consider whether or not local banks should be requested to participate financially in the program to obtain matching funds to help increase the amount of the fund. The EDA discussed whether or not the revolving loan fund would be available for nonprofit organizations. It was the consensus that if this were the case, the EDA would receive numerous requests from nonprofit organizations for funds. After further discussion, it was the consensus of the EDA to use the revolving loan fund for profit entities only. . Jim Tra11e stated he would like to see the Finance Committee review the criteria for a revolving loan fund and report back to the EDA with their recommendations. . . . Page 4 Economic Development Authority Minutes August 22. 1988 7. Future Anticipated Activities - Mike Mulrooney of BDS The City's Economic Development Consultant. Mike Mulrooney of BDS. presented a brief update to the EDA on future anticipated activities of BDS including: 1) Business Retention and Expansion Program 2) Targeted marketing strategy 3) Direct Marketing to include video. fact book. mail devices 4) Newsletter relating to EDA 7.1. Retainer Agreement for BDS HAROLD DOBEL MOVED TO APPROVE THE RETAINER AGREEMENT BE'l'WEEN THE EDA AND BDS. JIM TRALLE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8. Adjournment JIM TRALLE MOVED SECONDED THE MOTION. TO ADJOURN THE MEETING OF THE MOTION CARRIED 5-0. THE EDA. HAROLD DOBEL The meeting of the EDA adjourned at 10:50 p.m. (16'" It-I , I ' , !' J~' , - \~.,;i,'l' '1 ~ A.t.cJ.z~<.-a.7 Sandy Thackeray Recording Secretary