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12-18-1989 EDA MIN . . . MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY, DECEMBER 18, 1989 MEMBERS PRESENT: Chairman Tralle, Commissioners Holmgren, Schuldt, Dobel, and Kropuenske MEMBERS ABSENT: None STAFF PRESENT: Mike Mulrooney, Economic Development Consultant; Dick Fursman, Economic Development Coordinator; Pat Klaers, City Administrator; Lori Johnson, Finance Director; and Tim Keane, City Attorney 1. Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order by Chairman Tralle at 9:35 p.m. 2. Consider 12/18/89 EDA A~enda COMMISSIONER SCHULDT MOVED TO APPROVE THE 12/18/89 AGENDA. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider 12/4/89 EDA Minutes COMMISSIONER DOBEL MOVED TO APPROVE THE 12/4/89 EDA MINUTES. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Motel TIF District Richard Fursman, Economic Development Coordinator, indicated that the Minnesota State Omni Board unanimously approved the financing for the proposed motel at the intersection of Highway 10 and 169. He further indicated that the SBA is the final link in the financial packaging and that the developers expect to hear from the SBA within a week or two, at which time they will submit their request for Tax Increment Financing assistance to develop the site and write down the cost of acquiring the land. Mr. Fursman indicated that when the SBA does give their approval, the developer, Rob VanValkenburg, will give the City $5,000 for the processing of the TIF plan. COMMISSIONER DOBEL MOVED THAT THE EDA AFFIRMS ITS POSITION IN THE SUPPORT OF THE MOTEL PROJECT AND ALSO IN ITS SUPPORT OF THE POSSIBLE USE OF TIF FUNDS IN ORDER TO DEVELOP THE SITE AND WRITE DOWN THE COST OF ACQUIRING THE LAND. COMMISSIONER SCHULDT SECONDED THE MOTION. Tim Keane, City Attorney, stated that the test for meeting the condi tions for a redevelopment district are more strict than before since the October Special Legislative Session. . . . Economic Development Authority Minutes December 18, 1989 Page 2 COMMISSIONER DOBEL MOVED TO AMEND THE MOTION TO DIRECT STAFF TO PREPARE THE TIF PLAN AS DETERMINED BY THE FINDINGS. COMMISSIONER SCHULDT SECONDED THE AMENDMENT. THE AMENDMENT PASSED 5-0. THE MOTION AS AMENDED PASSED 5-0. 5. Revolvin~ Loan Fund for Americo Richard Fursman indicated that a business from Iowa, named Americo, has contacted the City about available space to move a manufacturing operation into the City sometime in the beginning of January. He indicated that the Company has been in contact with the First National Bank and is in the process of securing a loan for the purposes of transferring their business to one of the buildings Alltool has vacated. Dick Fursman further indicated that the local lender will not lend the company the full amount needed for the move. Mr. Fursman suggested that the EDA offer the Americo money for moving expenses. COMMISSIONER HOLMGREN MOVED TO SUPPORT THE USE OF REVOLVING LOAN FUNDS FOR THE USE OF MOVING EXPENSES FOR THE AMERICO COMPANY BASED ON THE FINANCE COMMITTEES RECOMMENDATION AND THAT A CAP OF $25,000 BE PUT ON THE AMOUNT. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 5-0. Commissioner Kropuenske indicated that he did not abstain on the motion even though the First National Bank was involved because he was not aware of the involvement at this time. 6. Mork Clinic Update Richard Fursman informed the EDA that the Mork Clinic has received a financing commitment from an insurance company and that a commitment letter with terms and conditions of the loan will be forwarded to the City some time before December 22. 7. Elk River Video Dick Fursman indicated that a local company has approached the staff with the desire to do a promotional video for the City of Elk River. He indicated that he is interested in showing the four seasons of Elk River and, therefore, felt that this might be an appropriate time for the Council to consider a project like this. He stated that the video company, Treasure Hunt Video, has indicated that they will do a 12 minute video of the City for approximately $10,000. Discussion was held regarding this matter and it was the consensus of the EDA that the Economic Development Coordinator delay the making of the video tape until a total marketing plan can be developed, at which time a video tape could be included in this marketing plan. 8. Other Business Economic Development Authority Minutes December 18, 1989 Page 3 . Lori Johnson, Finance Director, indicated that she is requesting payment from the EDA in the amount of $9,850.81, which is a reimbursement for various expenses incurred. She indicated that after reimbursement to the City for these expenses, the EDA will have a cash balance of $26,511.36 and further that the EDA would be receiving approximately $5,000 in State Aid on December 20, leaving a year end balance of approximately $30,000. COMMISSIONER HOLMGREN MOVED TO MAKE PAYMENT TO THE CITY OF ELK RIVER IN THE AMOUNT OF $9,850.81. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. Richard Fursman, Economic Development Coordinator, informed the Commission that a Canadian firm is flying to Elk River to look at the Alltool building for possible manufacturing purposes. . Pat Klaers, City Administrator, indicated to the EDA that TIF Districts 1 and 3, which is the Water Tower District have gone through a number of amendments. He stated that the district has been amended in order to spend some improvement funds on the industrial park. Further district map amendments would allow the City to spend additional excess funds on eligible activities. The City Administrator questioned whether the EDA would like to consider further amending the district to allow use of the funds for park purchase. He further indicated that the park he had in mind was the railroad trail and also possibly Woodland Trails park. The City Administrator further stated that if the EDA did decide to use the excess funds from the TIF District 1 and 3 for the purchase of the railroad trail that an appropriate time to amend the district would be in conjunction with the motel TIF district. COMMISSIONER DOBEL MOVED TO APPROVE THE USE OF EXCESS TIF FUNDS FROM DISTRICTS 1 AND 3 FOR THE PURCHASE OF THE RAILROAD TRIAL AND TO MOVE FORWARD WITH AMENDING THE PLAN. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. . The City Administrator informed the EDA that he had met with Larry Morrell for negotiations on his property. He indicated that he had made a cash offer to Mr. Morrell which was rejected by Mr. Morrell. He stated that Mr. Morrell had informed him that he would need more funds to make the location he is planning to move his business workable. He further indicated that Larry Morrell would need a rezoning of his location and the road improvement of 171st Avenue. The City Administrator further stated that Larry Morrell had indicated that he would want to keep his mini storage on the present site. The EDA discussed the issue and it was the feeling of the EDA that issues such as mini storage and road improvements and rezoning should be kept separate from the land transactions. The EDA further indicated that it would be impossible for the Council to commit to any other actions until they were actually brought before the Council. After further discussion, it was the consensus of the EDA to make Mr. Morrell one more offer and if that is unacceptable to inform Mr. Morrell, that the EDA would seriously consider condemning his . . . Economic Development Authority Minutes December 18, 1989 Page 4 property due to the location of his trucking business which is located in an unsafe and undesirable location. After further discussion it was indicated that this item would be added to the January 8, Council agenda for a final decision. 8. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River Economic Development Authority adjourned at 11:50 p.m. Respectfully submitted, ~~ Sandra Thackeray 7 City Clerk