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02-04-1989 EDA MIN . . . MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL CONFERENCE ROOM SATURDAY. FEBRUARY 4. 1989 Members Present: Commissioners Tralle. Dobel(9:03). Kropuenske. Schuldt and Holmgren Members Absent: None Others Present: Pat Klaers. City Administrator; Dick Fursman. Economic Development Coordinator; Mike Mulrooney. Economic Development Consultant 1. due call Authority notice thereof. the meeting of the Economic called to order at 9:00 a.m. by Commissioner Pursuant to Development Tralle. and was 2. Consideration of 2/4/89 EDA Agenda COMMISSIONER KROPUINSKE MOVED TO APPROVE THE 2/4/89 EDA AGENDA. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3.1 Consideration of 1/4/89 EDA Minutes COMMISSIONER SCHULDT MOVED TO APPROVE THE SUBMI'l"l'ID. COMMI SSIONER KROPUENSKE SECONDED CARRIED 4-0. 1/4/89 EDA MINUTES AS THE MOTION. THE MOTION Commissioner Dobel arrived at this time. 3.2 Consideration of 1/9/89 EDA Minutes COMMISSIONER DOBEL MOVED TO APPROVE THE 1/9/89 EDA MINUTES AS SUBMITTED. COMMI SSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Proposal for Hardware Store Site Irma Jenne and Dave Plude were present to discuss with the EDA. their plans to reconstruct a building on the site of their former hardware store that was destroyed by a fire in the summer of 1988. Dave indicated that it has been a long process in working with the City and their consultants to put together financing and building plans for this project. It was indicated that at this time the final plans for the building are not yet available nor has the financing for the project been finalized. Dave indicated that it is aniticipated that both the final plans and the financing will be completed in the very near future. Dave indicated to the EDA that the plans are basically the same as has been reviewed by the EDA in December of 1988. The plans call for a four story structure but the forth level will not be completed inside until that level has been leased. Dave stated that they are moving forward based on the assumption that Tax Increment Financing Funds will be available as this City financing is needed in order for this project to be successful. Without TIF the project could not get financed or supported by the banks. The EDA indicated its continued support of TIF for land write down and site preparation for the project as discussed in previous meetings. It was indicated that prior to TIF being authorized by the City. the EDA needs to see the final plans for the building and the finances for the project. The City would need a Letter of Intent and review the final construction plans before TIF is authorized by the EDA. Page 2 . Economic Development Authority Minutes February 4, 1989 Medical Arts Project Representatives of Mork Clinic, Dick Moore and Randy Warren and Representatives of the local Dentist Office, Dr. Jarmo1uk and Dr. Nyberg. were present to discuss with the City the concept of a medical arts building on the western edge of the Central Business District. John Plaisted and Les Anderson were also present to discuss the possibility of condominiums being built on an adjacent site or in conjunction with the medical building. Representatives of Mork Clinic indicated that if the project was to proceed at the southeast intersection of Main Street and Lowell Avenue. City TIF funds would be needed to prepare the site for construction. It was indicated that Mork Clinic needs more space than they currently have in Elk River. With the additional space they will also be expanding their medical services that are available. In effect. Mork Clinic would be offering a mini medical clinic versus the services currently offered by Mork in Elk River. At this time they indicated that no one site has been rejected or accepted but that they are very interested in the Main Street site. They will continue to explore all options until a site has been selected and plans finalized. A general discussion took place between the EDA and Representatives of Mork Clinic on the type of medical services that are needed in Elk River and the type of medical services that will be offered in the next few years. . A general discussion took place regarding parking concerns. the type of building that would be constructed. the cost of the lots. the ownership of the property, the possible need of having a building cross property lines, the issue if the clinic would be a separate building from the condominium buildings and other issues relating to the site and cost development. Representatives of Mork Clinic indicated that a number one priority of the clinic is to insure that adequate parking is available. Commissioner Holmgren strongly emphasized the need for this project not to be landlocked. He indicated that Mork Clinic is currently expanding and if growth continues they will quickly outgrow this site if room for expansion is not available. John Plaisted indicated that he would like to pursue the construction of condominiums on or near this site. It was stated that in order for such a project to succeed. financial assistance from the City would also be needed in terms of site preparation. Commissioner Schuldt indicated that he would be opposed to the use of TIF funds for condominiums whether they are a free standing building or combined with the clinic. Commissioner Kropuenske stated that he felt the EDA was looking at two different issues. One being if the condominiums are combined with Mork Clinic and the other being if the condominiums are a free standing building. He indicated he could support TIF for the project it the condominiums and the clinic were one structure. . . . . Page 3 Economic Development Authority Minutes February 4, 1989 In response to Commissioner Schuldt's position, Mike Mulrooney indicated that the original intent of TIF related to redevelopment. Also, there has been a long history of use of TIF for residential redevelopment but that it traditionally has not been very successful when the projects are alone and not associated or connected to another activity. No consensus of the EDA was reached on whether or not TIF would be used for any part of the condominium project regardless of whether it was free standing or connected to the Mork Clinic. Some EDA members indicated that they could support use of TIF for condominiums if it was connected to the Mork Clinic but this was not a majority opinion. There was consensus of the EDA that TIF could be used for site preparation and land write down to some degree for the Clinic-Dental Office proposal. 8. EDA Book Economic Development Coordinator, Dick Fursman, distributed a three ring binder book to the EDA members that contained some of the information which established the EDA. The information included the bylaws, the Council resolution which established the EDA, and other documents relative to the activities that are legal for the EDA to undertake. Mr. Fursman indicated that additional information will be distributed that the EDA members may want to keep in one location and that the book is being provided to facilitate the orderly collection and retention of EDA related information. 7.1 EDA Committees The Economic Development Coordinator and City Administrator stressed to the EDA the importance of having active EDA Committees. The need for these active committees was the tremendous work load relating to Economic Development activities that need to be accomplished in 1989. It was stated that these committees require the full support of the EDA and the committees must feel like they are accomplishing worthwhile projects for the betterment of the City. In order to facilitate more communication betweent EDA committees and the EDA, plus to insure the work duties performed by the EDA Committees is consistent with the philosophy of the EDA, it was recommended that an EDA member be appointed to each of the standing committees and that this member attend and participate in EDA Committee meetings. If the member appointed to a committee could not attend an upcoming meeting then this EDA member should feel free to contact another EDA member and request that they attend the Committee meeting. The EDA concurred with this recommendation and appointed Commissioner Kropuenske to the Research and Development Committee; Commissioner Holmgren to the Finance Committee; Commissioner Dobel to the Marketing Committee; and Commissioner Schuldt to the Prospecting Committee. The EDA then discussed the composition of committees and indicated its preference to have each of the committees composed of approximately five members. In this regard, the EDA requested that Dick Fursman contact a number of individuals to determine if they would be willing to participate on some EDA committees. Don Heinzman, Elk River Star . . . Page 4 Economic Development Authority Minutes February 4. 1989 Newspaper. indicated he would sit on the Marketing Committee. The EDA requested that Dick contact Jim Rossman for the Marketing Committee. Jackie Schue1ein for the Research and Development Committee. and Stephanie Klinzing for the Prospecting Committee. Other individuals suggested include representatives of Security Federal for the Finance Committee; representatives of the Finance Department at UPA for the Finance Committee and other representatives from UPA marketing division for the Marketing Committee. Some immediate work for these EDA Committees was discussed. It was noted that the Marketing Committee can immediately begin work on putting together an Economic Development Newsletter and researching a new City fact book. The Research and Development Committee has the ongoing Star City Recertification Project along with work in evaluating various community surveys. The Finance Committee can concentrate on developing a City revolving loan program. 7.2 One Year Work Plan Economic Development Consultant. Mike Mulrooney. handed out a proposed 1989 work plan for the EDA. Mike reviewed the five objectives of the work plan and went into detail regarding how each of these objectives can be accomplished. who would work on accomplishing each of these objectives and when each objective was targeted to be accomplished. COMMI SSIONER HOLMGREN MOVED TO ACCEPT THE PRESENTED. COMMISSIONER KROPUENSKE SECONDED CARRIED 5-0. 1989 THE EDA WORK PLAN AS MOTION. THE MOTION 6. Business Retention Survey Dick Fursman briefly reviewed the results of the Business Retention Survey. This is a project he has been working on for the past few months and involves direct contact with business owners in the Elk River area. The generalized results have been outlined in a 1/17/89 memo from Dick to the EDA. Mr. Fursman indicated that the results of this study indicate a need for more communication between the City and businesses and shows a direct need for an Economic Development Newsletter. 9. Business Innovation Center Update Dick Fursman indicated that he has been appointed to the Board for working on the development of a Business Innovation Center. Dick indicated his frustration in working on this Board because of the political makeup and his concern for the Boards ability to make objective recommendations. This Board would be working with the Greater Minnesota Corporation and Dick expressed his philosophical differences in putting together proposals from a need and factual phases versus simply complying to the political influences. This difference plus the enormous time committment is leading Dick to gracefully resign from the Board. Participation on the Board takes up at least 15% of his work week. The City Administrator indicated that there is a tremendous work load in Elk River for Economic Development and Dick's time and that this was an unacceptable drain on City resources. The EDA concurred with Mr. Fursman and indicated their support if he decided to resign from this Board. 10. 1989-90 It was covered Marketing Plan the consensus of the EDA that this issue had generally been during the review of the one year work plan (Agenda Item 7.2). . . . Page 5 11 . Adj ournment COMMISSIONER HOLMGREN MOVED TO ADJOURN THE ECONOMIC DEVELOPMENT AUTHORITY MElTING. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5- O. The meeting of the EDA adjourned at approximately 11:55 a.m. Respectfully submitted. ?/) )(/~ Patrick D. Klaers City Administrator