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07-31-1989 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 31, 1989 Members Present: Commissioners Tralle, Schuldt, Dobel, Kropuenske, and Holmgren Members Absent: None Staff Present: Pat Klaers, City Administrator; Dick Fursman, Economic Development Coordinator; Lori Johnson, Finance Director 1. Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order by Chairman Tralle at 7:00 p.m. 2. Consideration of 7/31/89 EDA A~enda COMMISSIONER HOLMGREN MOVED TO APPROVE THE 7/31/89 EDA AGENDA. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider 7/17/89 EDA Minutes COMMISSIONER DOBEL MOVED TO APPROVE THE 7/17/89 EDA MINUTES. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Old Hardware Site 4.A. Appraisal Schedule Dick Fursman, Economic Development Coordinator, informed the Commissioners that the firm of Shenehon and Associates has indicated that they would be interested in doing an appraisal of the hardware site and have indicated that the appraisal will not exceed $1,000. Mr. Fursman also indicated that Shenehon and Associates have stated that they would be interested in appraising the entire block if this were requested by the EDA. Commissioner Dobel questioned how many of the property owners along the block are interested in a total redevelopment of the block. Mr. Fursman replied that he is aware of three owners that are interested. 4.B. Purchase Timetable Mr. Fursman indicated that the City has begun taking steps to plan a marketing strategy for the Jenne property site. Mr. . . . EDA Minutes July 31, 1989 Page 2 Fursman stated that if the City markets the property and it does not sell, the City faces the realization that the City will continually have this economic blight and physical hazard in the downtown area. He indicated that he felt the City should take some responsibility for correcting the site and the only feasible way would be to purchase the property. Commissioner Schuldt questioned what the City would do different to sell the property than the present owners are already doing. Mr. Fursman stated that the City is in a better position than the owners and it also has the tools necessary to market the property. By the City purchasing this site, it will allow the developers to go to another site. The City Administrator indicated that if the City purchased the property, the funds spent could possibly be captured through the creation of a TIF district. Mr. Fursman suggested that the City consider purchasing the site by February 1, 1990, if the site is not sold. Chairman Tralle stated that he is not opposed to the proposal or concept of the City purchasing the property with EDA funds, however, he indicated he would like to see what numbers the appraisal comes in at before making a commitment. Mr. Fursman indicated that a price would not be discussed until the appraisal was complete. He also indicated that he felt the City could commit to buy without committing to a price. COUNCILMEMBER HOLMGREN MOVED THAT THE ECONOMIC DEVELOPMENT AUTHORITY COMMIT TO PURCHASING THE PROPERTY PRESENTLY HELD BY IRMA JENNE, LOCATED AT 665 AND 661 MAIN STREET IN ELK RIVER AND TO TAKE POSSESSION OF THE SAID PROPERTY ON FEBRUARY 1, 1990, PROVIDED THE FOLLOWING CONDITIONS ARE PRESENT: 1. AN ACCEPTABLE PRICE IS NEGOTIATED FOR BOTH BUYER AND SELLERj 2. NO PRIVATE DEVELOPER PRESENTS PLANS TO DEVELOP THE SITE: AND THAT PLANS ARE ACCEPTABLE TO THE EDAj 3. THE SELLER WORKS WITH THE EDA TO MARKET THE SITE. COMMISSIONER DOBEL SECONDED THE MOTION. . . . EDA Minutes July 31, 1989 Page 3 Commissioner Kropuenske stated that he is not sure that this motion is enough to allow the present owners to get a loan. He stated that the lending institution may need to see what the property is worth before they will grant a loan. Commissioner Holmgren stated that the EDA should wait for an appraisal before a dollar amount is stated. Commissioner Kropuenske indicated that he will vote on this issue even though his financial institution has been in direct negotiations with the sale of the new store. He indicated that he agrees with the concept and would vote for the matter whether the developers were working with his institution or another institution. THE MOTION CARRIED 5-0. 4.C. Condemnation Chairman Tralle indicated that the City should consider condemning the site as it will create a tax advantage for the property owners. Mr. Fursman cautioned the EDA that they must also look at the possibility that the site may not sell. If the property were under condemnation and this should happen, the City would have to go through with the condemnation proceedings. Mr. Fursman also indicated that the main reason for condemning the property is that the City would be using the condemnation threat for the benefit of the property owner and to send the message that the City is serious about taking the property if nothing is done. Commissioner Holmgren stated that he would like to see better safety precautions or some type of wall erected on the hardware site. COMMISSIONER HOLMGREN MOVED THAT THE ECONOMIC DEVELOPMENT AUTHORITY TAKE PRELIMINARY ACTION TO CONDEMN THE PROPERTY PRESENTLY HELD BY IRMA JENNE, LOCATED AT 665 AND 661 MAIN STREET IN ELK RIVER AS TO THE HEALTH, SAFETY AND WELFARE CONCERNS AS WELL AS THE ECONOMIC BLIGHT PRESENT AT THE SITE. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5. Other Block Development Dick Fursman indicated that a meeting is scheduled with Elmer Anderson and City Staff. He indicated that Mr. Anderson has expressed his interest in what will happen to the site and he is also interested in developing his property. He is requesting to discuss development options with Staff. Mr. Fursman urged the EDA members to attend. COMMISSIONER DOBEL MOVED TO CALL A SPECIAL EDA WORKSHOP MEETING ON AUGUST 3, 1989, AT CITY HALL, 11:00 A.M. FOR THE PURPOSE OF DISCUSSING . . . EDA Minutes July 31, 1989 Page 4 ELMER ANDERSON'S PROPERTY ON MAIN STREET. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6. Other Business Mr. Fursman informed the Council that he had been approached by the Elk River Home Builders Association to place an ad in the Fall Parade of Homes Magazine. He indicated that he is aware that the Council has authorized ads in this magazine for this purpose in the past, and therefore, he took the initiative to authorize the placement of a one half page ad. He further indicated that the magazine generates a lot of interest for the City of Elk River. COMMISSIONER KROPUENSKE MOVED TO AUTHORIZE THE PLACEMENT OF A ONE HALF PAGE AD IN THE PARADE OF HOMES FALL EDITION MAGAZINE. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-1. COMMISSIONER HOLMGREN OPPOSED. There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE EDA MEETING. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the EDA adjourned at 7:50 p.m. d~a~ Sandy Thac';l.ay ( Recording Secretary