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09-11-1989 EDA MIN . . . MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT ELK RIVER CITY HALL MONDAY, SEPTEMBER 11, 1989 MEMBERS PRESENT: Commissioners Tralle, Schuldt, Holmgren, Dobel Commissioner Kropuenske arrived at 5:59 p.m. MEMBERS ABSENT: None STAFF PRESENT: Pat Klaers, City Administrator; Dick Fursman, Economic Development Coordinator; Lori Johnson, Finance Director; Dave Sellergren, City Attorney 1. Chairman Tralle called the meeting to order at 5:55p.m. 2. Consider 9/11/89 EDA Agenda COMMISSIOWR DOBIL MOVED TO APPROVE THE 5/11/89 EDA AGENDA. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider 8/28/89 EDA Minutes COMMISSIONER SCHULDT MOVED TO APPROVE THE 8/28/89 EDA MINUTES. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4. Consider Additional Information for Pricing Jenne Property Economic Development Coordinator, Dick Fursman, indicated that he had been in contact with the insurance agent for the Jenne property to determine how the property was insured as it relates to the demolition and clean up of the site. He stated that while reviewing the policy with the insurance agent he was informed that $5,000 worth of coverage for clean up was included in the insurance payback. He stated that the $5,000 was considered a package deal in the insurance policy and unless specifically requested otherwise the $5,000 was considered normal. Mr. Fursman suggested that the Commission reconsider repaying the associated costs to clean up the site in excess of the $5,000 which was received by the insurance company. Commissioner Kropuenske arrived at this time. COMMISSIONER SCHULDT MOVED TO PAY $109.540.00 FOR THE JENNE PROPERTY IF THE PROPERTY HAS NOT SOLD BY FEBRUARY 1. 1990 IF. 1 .) THE OWNER AGREES TO THE STATED PRICE OF $109.540.00, 2.) IF ANOTHER DEVELOPER WHO OFFERS MORE FOR THE PROPERTY I S NOT FOUND AND 3 . ) THAT THE CURRENT OWNER CONTINUE TO WORK WITH THE EDA IN MARKETING THE SITE. COMMISSIONER DOBEL SECONDED THE MOTION. Commissioner Holmgren stated that as the City received an appraisal for the property on August 18, 1989, and will not consider purchasing the site until February 1, they must consider the fact that there will be an inflationary factor involved with the appraisal of the property. He also questioned how the redevelopment of the entire block will effect the Jenne property. Economic Development Coordinator Dick Fursman stated that he felt this could possibly increase the price of the property. THE MOTION CARRIED 5-0. . . . Page 2 Economic Development Authority Meeting September 11. 1989 5. Consider Price Alternative for Mork Clinic Revenue Bond Chairman Tra11e indicated that at the last EDA meeting the Commission had considered issuing taxable bonds for the purpose of lending proceeds of the bonds to the Mork Clinic to finance the construction of the clinic. He indicated that the interest rates on these bonds would be lower than the interest rate which would be charged to the clinic and that the EDA would receive the difference which would be added to the EDA development fund. He indicated however. that the EDA had denied the request and stated that they have since received a memo from the City Attorney stating that in order for an EDA to issue a General Obligation Bond this would have to be approved by the voters of the City through a referendum. Dick Fursman. Economic Development Coordinator. stated that due to the findings from the City Attorney regarding the G.O. Bond. this would be a dead issue. He indicated however. that an attractive alternative to a General Obfigation Bond would be a Revenue Bond. However. the time frame for financing a Revenue Bond has been reestimated to 120 days and this would put the project behind schedule. Mr. Fursman stated that due to the complications involved in using either G.O. Bonds or Revenue Bonds. Mork Clinic has decided to go with private financing. Mr. Fursman indicated that the Tax Increment Financing Plan has been received and he indicated that the Commission has received a resolution which amends the size of the district. He further stated that the TIF Plan has been distributed to the School and the County. COMMISSIONER DOBEL MOVED TO ADOPT RESOLUTION 89-2. A RESOLUTION APPROVING THE FINDINGS OF CONDITIONS FOR THE CREATION OF TAX INCREMENT FINANCING DISTRICT '6 AS A REDEVELOPMENT DISTRICT. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6. Adj ournment There being no further business. COMMISSIONER HOLMGREN MOVED TO ADJOURN THE IDA MEETING. COMMI SSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Economic Development Authority adjourned at 6:15 p.m. ~Res~ectfu11Y submitted. 7 1 J , ~-.t~ ~~~.-L7'><'d:, Sandy Tha-6keray City Clerk ..