04-10-1995 EDA MIN
MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 10, 1995
Members Present:
President Jeff Gongoll, Commissioners; Scheel, Bender, Duitsman,
Farber, Dwyer, and Holmgren
Members Absent:
None
Staff Present:
Bill Rubin, Executive Director; Sandra Thackeray, City Clerk;
Pat Klaers, City Administrator
1 . Call Meetina To Order
Pursuant to due call and notice thereof, President Gongoll called the meeting of the
EDA to order at 6:00 p.m.
2. Consider April 10, 1995 Aqenda
COMMISSIONER DWYER MOVED TO APPROVE THE APRIL 10, 1995, EDA AGENDA.
COMMISSIONER BENDER SECONDED THE MOTION. MOTION CARRIED 7-0.
3. Consider March 13, 1995, EDA Minutes
It was noted that the name John Dietz should be stricken from "Members Absent".
COMMISSIONER DWYER MOVED TO APPROVE THE MARCH 13, 1995, EDA MINUTES AS
CORRECTED. COMMISSIONER DWYER SECONDED THE MOTION. MOTION CARRIED 5-0-
2. COMMISSIONERS HOLMGREN AND FARBER ABSTAINED BECAUSE THEY WERE ABSENT
FROM THE MARCH 13 MEETING.
4. Open Mike
President Gongoll informed the EDA members of the upcoming School Bond Issue to
be held on May 16, 1995.
5. Consider April EDA Financial Update
Executive Director Bill Rubin reviewed the following loan funds:
. Micro Loan Fund - Cash Balance of $114,990.20 as of March 31, 1995.
. Block Grant Micro Loan Fund - Cash Balance of $28,782.03 as of March 31,
1995.
. Check Reqister - Bill Rubin informed the EDA that the City Council approved
payment of four EDA bills totaling $3,100.25. He further indicated that the
EDA's check register is included in the agenda packet for review.
Economic Development Authority Minutes
April 10, 1995
Page 2
6. Statement Of Expenses
Bill Rubin reviewed the EDA's Statement of Expenses payable to the City of Elk River in
the amount of $24,843.68 for the period ended December 31, 1994. Bill Rubin
requested that the EDA add $1,000.00 to the statement for administrative services
rendered throughout the year-thereby bringing the total to $25,843.68.
COMMISSIONER DWYER MOVED TO APPROVE A PAYMENT TO THE CITY OF ELK RIVER IN
THE AMOUNT OF $25,843.68 AS REIMBURSEMENT FOR COSTS FOR THE PERIOD ENDING
DECEMBER 31, 1994. COMMISSIONER FARBER SECONDED THE MOTION. MOTION
CARRIED 7-0.
7. Consider A Consent To Easement And Maintenance Aareement By And Between
Guardian Anoels Health Services And Elk River Auto Mall
Executive Director Bill Rubin stated that the Elk River Auto Mall wishes to execute a
nonexclusive easement for drainage and ponding purposes with the Guardian
Angels Health Services, Inc., who is the adjacent property owner. Bill Rubin further
explained that because an EDA loan encumbers the Auto Mall property, it is
necessary for the EDA to consent to the terms and conditions of the proposed
easement.
COMMISSIONER SCHEEL MOVED TO AUTHORIZE THE EDA PRESIDENT AND EXECUTIVE
DIRECTOR TO EXECUTE A CONSENT TO AN EASEMENT AND MAINTENANCE AGREEMENT.
COMMISSIONER BENDER SECONDED THE MOTION. MOTION CARRIED 7-0.
8. Discuss Citv Neqotiations With School District 728 Reqardino An EDA Owned Site In
The Elk River Industrial Park
Executive Director Bill Rubin explained that School District 728 is considering two sites
for which to construct a Public Works Facility. He indicated that one of the sites is an
EDA-owned site in the Elk River Industrial Park, legally described as Lot 8, Block 1. Bill
Rubin explained that the site would only allow a 15,000 to 20,000 square foot industrial
user due to wetland restrictions.
Commissioner Dwyer questioned whether the site in the Industrial Park would be big
enough to accommodate the School District's space needs. Commissioner Dwyer
further indicated his concern regarding the fact that this is the City's last available
industrial lot.
Commissioner Bender stated that Lot 8 has many restrictions due to the wetlands and
because of this there would be no chance for any expansion on the lot. He
indicated he did not feel the lot was prime real estate property and stated he would
be in favor of selling the lot to the School District.
Economic Development Authority Minutes
April 10, 1995
Page 3
Commissioner Holmgren indicated he was opposed to selling the lot the School
District because of the following reasons:
1 . He feels the School District is being short sighted in their decision to
purchase the land as the site will not allow expansion of the building.
2. Outside storage will be necessary.
3. The property should remain on the tax rolls.
4. The School District could buy more land for the value outside of the
Sewer and Water District.
Commissioner Scheel indicated her opposition to the EDA selling the property to the
School District as she does not feel the property should be taken off the tax roles, and
further, because the City has other investments in the property, including sewer and
water. She stated that to build a Public Works Facility that does not require the
amenities of water and sewer on a taxable piece of property is a mistake.
Council Member Farber indicated he did not feel the property was a very desirable
piece of property.
COMMISSIONER DUITSMAN MOVED TO SCHEDULE A PUBLIC HEARING TO DISCUSS THE
TERMS AND CONDITIONS BY WHICH, LOT 8, BLOCK 1, WOULD BE CONVEYED FOR MAY 8,
1995. COMMISSIONER BENDER SECONDED THE MOTION. MOTION CARRIED 5-1-1.
Commissioner Holmgren opposed. President Gongoll abstained.
Council Member Holmgren indicated he was opposed, as he does not feel the City
should spend the money on holding a public hearing until they are certain that the
referendum for the School District has passed because the Public Works Building is
included in the referendum.
9. Discuss Industrial Park Activities In Ramsey Minnesota
Executive Director Bill Rubin referred EDA Commissioners to an article in UPA's
Capsule News, which describes Anoka Electric Cooperative's (AEC's) Corporate
Office/Warehouse project in Ramsey, Minnesota. The article alluded to a
development agreement with Ramsey to establish an Industrial Park with the
balance of AEC's property. Given AEC's partnership with Ramsey, it appears that Elk
River now has additional competition for Industrial prospects. It is difficult to reconcile
AEC's partnership with Ramsey in light of AEC's decision not to pursue REA funds for
cities within its service territory in early 1994.
Pat Dwyer recalled that Representatives of the Business Park Task Force requested
AEC's assistance in obtaining REA funds to help underwrite the infrastructure costs of
the Business Park. Timing of the request for REA funds was a critical issue and AEC
chose to open this grant/loan program to all cities in the service territory. This was
done so as not to create unfair competition among cities in the AEC territory.
Commissioner Dwyer found it difficult to reconcile AEC's pOlicy on REA funds with its
decision to work with one City, Ramsey, in developing an Industrial Park. Discussion
on this matter followed.
Economic Development Authority Minutes
April 10, 1995
Page 4
COMMISSIONER DWYER MOVED TO AUTHORIZE THE EXECUTIVE DIRECTOR TO PREPARE A
LETTER TO THE GENERAL MANAGER OF AEC WHICH EXPRESSES THE EDA'S CONCERNS
ABOUT AEC'S INDUSTRIAL PARTNERSHIP WITH RAMSEY . IN LIGHT OF AEC'S
UNWILLINGNESS TO ASSIST ELK RIVER IN THE PURSUIT OF REA GRANT/LOAN FUNDS.
COMMISSIONER DUITSMAN SECONDED THE MOTION. MOTION CARRIED 6-1.
COMMISSIONER SCHEEL OPPOSED.
10. Other Business
There was no other business.
11. Adiournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN.
COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 7-0.
The meeting of the EDA adjourned at 6:50 p.m.
Respectfully submitted,
:;/--12-<<- ~
Sandra Thackeray,
City Clerk
:minutes:eda04-10