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01-08-1990 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER PUBLIC LIBRARY MONDAY, JANUARY 8, 1990 Members Present: Chairman Tralle, Commissioners Kropuenske, Holmgren, and Schuldt Members Absent: Commissioner Dobel Staff Present: Pat Klaers, City Administrator; Dick Fursman, Economic Development Coordinator; Dave Sellergren, City Attorney; Lori Johnson, Finance Director 1. Call Meetin~ to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order by Chairman Tralle at 9:00 p.m. 2. Consider 1/8/90 EDA A~enda COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 1/8/90 EDA AGENDA. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. :1. CQnsider 12/18/89 EDA Minutes COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 12/18/89 EDA MINUTES. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0. 4. Roll Call Chairman Tralle took the roll call. 5. Election of Officers and Establishment of Terms COMMISSIONER HOLMGREN MOVED THAT THE OFFICES REMAIN FOR 1990 AS THEY WERE IN 1989, WHICH IS AS FOLLOWS: PRESIDENT - JIM TRALLE VICE PRESIDENT - ROGER HOLMGREN TREASURER - GENE SCHULDT SECRETARY - HAROLD DOBEL ASSISTANT TREASURER - DUANE KROPUENSKE COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-0. 6. Appointment of Executive Director COMMISSIONER KROPUENSKE MOVED TO APPOINT PAT KLAERS AS EXECUTIVE DIRECTOR OF THE EDA FOR 1990. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Economic Development Authority Meeting January 8, 1990 Page 2 . 7. AQQroval of Official Newspaper COMMISSIONER SCHULDT MOVED TO APPOINT THE ELK RIVER STAR NEWS AS THE OFFICIAL NEWSPAPER FOR THE EDA IN 1990. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 8. Approval of Official Depo~jtQKX COMMISSIONER SCHULDT MOVED TO APPOINT THE BANK OF ELK RIVER AS THE OFFICIAL DEPOSITORY FOR THE EDA FOR 1990. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 3-0-1. Commissioner Kropuenske abstained. 9. Discussion of Bylaws and Su~~ested Amendments . Chairman . Tralle indicated that as per the memo from the City Administrator, there are two bylaw issues that should be reviewed. He indicated that one of the issues relates to wages being paid to the members of the EDA, and the second issue relating to the size of the EDA. Chairman Tralle indicated that presently the EDA receives $1.00 per meeting for attendance at the EDA meetings. He indicated that the EDA should discuss raising the wage for EDA meeting attendance due to the number of meetings which have been held during the past year. Commissioner Kropuenske stated that he was in favor of raising the salary because the EDA is becoming a more time consuming responsibility. He further indicated that he would also be in favor of adding two non Councilmembers to the EDA as this would bring a new perspective of other individuals within the community. Commissioner Holmgren stated that he concurred with Commissioner Kropuenske in that he would like to see the EDA expanded to a seven member Commission. He further indicated that he felt it would be valuable to have someone on the Commission with experience in lending and commercial activities. COMMISSIONER KROPUENSKE MOVED TO INCREASE THE EDA MEMBERSHIP FROM FIVE MEMBERS TO SEVEN MEMBERS WITH FIVE MEMBERS BEING REPRESENTATIVES OF THE CITY COUNCIL AND TWO MEMBERS BEING REPRESENTATIVE OF THE COMMUNITY AT LARGE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. Commissioner Schuldt indicated that in regard to paying the EDA, he felt that the Planning Commission puts in many hours of volunteer work and does not receive any pay. He indicated that he felt it may be unfair if the City decides to pay members of the EDA and not pay the Planning Commission. The City Administrator indicated that it was against the State Statute to pay Planning Commission members wages. COMMISSIONER KROPUENSKE MOVED THAT THE EDA MEMBERS BE PAID $100.00 PER MONTH. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. . 10. Mork Update Economic Development Authority Meeting January 8, 1990 Page 3 . Dick Fursman, Economic Development Coordinator, indicated that Mork Clinic will be closing on their land transfer this week which will enable them to break ground for the clinic. 11. Motel Update The Economic Development Coordinator indicated that finishing touches have been added to the TIF Plan #7 and that this plan will be distributed to the County and the School District this week. He informed the EDA that the development district for TIF #7 has been drawn up to last 25 years. He informed the EDA that this is the maximum time allowed and further, that this is the worst case scenario. He indicated that there is a chance that the district may not last 25 years. He further indicated that on February 12, the EDA will be asked to accept the TIF plan and that construction is planned to begin in February. The Economic Development Coordinator informed the EDA that the 1989 Fire Code has been adopted at the Second Legislative Session. He indicated that he is not sure of the ramifications of this adoption as of yet but that the worst scenario would require the hotel to be sprinkled. 12. Industry Update . The Economic Development Coordinator informed the EDA that Americo has moved to Elk River and is setting up equipment in the Alltool building. He indicated that so far they have not received local financing and further that they have not received any money from the Ci ty. He stated that there is an agreement between All tool and Americo but that it will not be finalized until they receive financing. Mr. Fursman indicated that VicWest Steel, a Canadian company, has visited Elk River and is interested in the same building that Americo is in. He indicated that they will be dealing with Alltool regarding this location. Mr. Fursman briefly updated the EDA on the Remelle project. He indicated that Remelle has made no decision as of this date regarding their relocation. At this time the EDA had questions for the City's legal counsel pertaining to legal and timing questions concerning the RDF plant and the TIF money. 13. Other Business . The City Economic Development Coordinator indicated that the Jenne property has not yet been sold. He further indicated that at the September 11, 1989, meeting, the EDA had voted to purchase the Jenne property for $109,540 if it was not sold by February 1, 1990. He indicated that RFP's for the block development have been sent out and that the deadline for response is February 15. Economic Development Authority Meeting January 8, 1990 Page 4 . The Economic Development Coordinator briefly updated the EDA regarding the sale of the School property on Highway 169 and School Street. He indicated that he had a brief discussion with the potential buyers of the property and the developers were questioning what type of projects would qualify for the use of TIF money. He indicated that he informed the developers of the State Statute guidelines regarding TIF and further that the final say for TIF money comes from the EDA. Chairman Tralle indicated that the EDA has received the existing statement of policies for the review of Tax Increment Economic Development projects. He further indicated that he would prefer to review this policy at a time when the EDA is a seven member board. 14. Adjournment There being no further ADJOURN THE EDA MEETING. THE MOTION CARRIED 4-0. business, COMMISSIONER HOLMGREN MOVED TO COMMISSIONER SCHULDT SECONDED THE MOTION. The meeting of the Elk River Economic Development Authority adjourned at 10:20 p.m. Respectfully submitted, . ~~ City Clerk .