05-08-1989 EDA MIN
MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 8, 1989
~ Members Present: Commissioners Tralle, Schuldt, Dobel, Holmgren and
Kropuenske
~
~
Members Absent:
None
Staff Present: Dick Fursman, Economic Development Coordinator; Pat Klaers,
City Administrator; Tim Keane, City Attorney; and Mike
Mulrooney, Economic Development Consultant
1. Commissioner Tralle called the meeting of the Economic Development
Authority to order at 10:20 p.m.
2. Consider 5/8/89 EDA Agenda
COMMISSIONER SCHULDT MOVED TO
COMMISSIONER KROPUENSKE SECONDED
APPROVE THE
THE MOTION.
5/8/89 EDA AGENDA.
THE MOTION CARRIED 5-0.
2.5 Consider 2/27/89 EDA Minutes
COMMI SSIONER /' HOLMGREN MOVED TO APPROVE THE
PRESENTED. COMMISSIONER KROPUENSKE SECONDED
CARRIED 5-0.
2/27/89 EDA MINUTES AS
THE MOTION. THE MOTION
7.
Hotel Update
Dick Fursman, Economic Development Coordinator, updated the EDA on the
proposed hotel/banquet facility. He indicated that the developers are
pursuing a SBA-504 loan. The package for this loan must be presented to
the loan board by May 22, 1989, in order to have the project reviewed by
June 1. The next available reviewal date would be July 1, which would
jeopardize the timing of the project.
Mr. Fursman explained that the developers are putting $200,000 cash up
front into the project, but are required by the loan application to show
a 25% equity injection. The $200,000 does not meet the 25%, therefore,
the developers are requesting City assistance by way of TIF funds for the
pur~hase of the land and for the razing of the existing buildings on the
land.
Commissioner Schuldt questioned whether the project is contingent upon
sewer and water being extended to the eastern area of the City. Mr.
Fursman indicated that after discussion with staff, Council and
consultants, it is the consensus that city sewer and water is desired for
this project. He informed the Council that at one time AmericInn felt
they could do the project by providing their own septic and well, but it
was the consensus of the staff and consultants that they would rather see
the hotel served by city utilities.
Mr. Fursman
information
and water
information
informed the Commission that the developers are requesting
regarding what their assessment cost will be to bring sewer
to the site. He indicated that the developers need this
for the SBA loan application.
The Commissioners discussed
eastern area of Elk River.
the need to bring sewer and water to the
Pat Klaers, City Administrator, stated that
Page 2
Economic Development Authority Minutes
May 8. 1989
.
the City would have to absorb the cost of the sewer up to where the hotel
can hook up as there are no benifitting property owners to that point.
The Commissioners discussed the possibility of extending utilities to
this area and whether an 8 inch pipe should be used to bring it to the
hotel site or whether the City should use a 16 inch line for future
extensions. The Commissioners also discussed the availability of funds
to cover this project. The City Administrator indicated that there were
still too many unknowns with the RDF tax increment to project whether
there will be enough money.
Commissioner Kropuenske indicated that he would not be in favor of using
the oversized line if it would jeopardize the western area project.
Pat K1aers indicated that due to the uncertainty of finances. the City
cannot give the developers the numbers they are requesting. Commissioner
Holmgren indicated that there was no more certainty in the proposed
western project in relation to finances than there is for the eastern
project. yet the City is still pursuing the western project.
Mr. Fursman stated that the developer only needs an estimated figure as
to what utility extension would cost should the City provide the eastern
area with utilities. He indicated that the developers are aware that the
City may not be able to extend utilities. however. without an estimate
the developers have no project.
.
The Commissioners discussed whether or not the developers could possibly
use their own private well and septic until the City brings utilities to
this area. The developers indicated that this would not be a possibility
as the State Building Code requires a sprinkled convention center and a
private well cannot provide this.
Commissioner Tra11e stated he would be in favor of using
financing for land purchase and building demolition.
Holmgren concurred with Commissioner Tra11e.
tax increment
Commissioner
Commissioner Tra11e further indicated that he would like to see the City
come up with a way to meet the developer's needs and yet meet the City's
long term needs.
It was the consensus of the Commission to continue this meeting until
such time that staff can meet with the City Engineer to try to come up
with some possible numbers for assessment costs to the developers for
utility extension and to further research the possibility of the eastern
utility extension.
'f'
.
COMMISSIONER HOLMGREN MOVED TO CONTINUE THE EDA MEETING UNTIL MAY 15.
1989. 6:30 P.M. TO BE HELD AT THE ELK RIVER PUBLIC LIBRARY. COMMISSIONER
DOBEL SECONDED THE MOTION~ THE MOTION CARRIED 5-0.
.
The meeting of the Elk River Economic Development Authority adjourned at
11:48 p.m.
Re1ect:1.l1Y submitted.
~keray
Deputy City Clerk