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05-08-1995 EDA MIN MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MAY 8, 1995 Members Present: President GongolL Comrnissioners Holmgren, Scheel, Bender, Duitsman, Farber, Dwyer Members Absent: None Staff Present: Bill Rubin, Executive Director; Pat Klaers, City Administrator; Sandra Thackeray, City Clerk 1. Call Meetinq To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 6:00 p.m. by President Gongoll. 2. Consider May 8, 1995, EDA Aqenda The following item was added to the agenda: lOA. Discussion regarding the next EDA quarterly workshop. COMMISSIONER BENDER MOVED TO APPROVE THE MAY 8, 1995, EDA AGENDA AS AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. MOTION CARRIED 6-0. 3. Consider April 10, 1995, EDA Mnutes (Commissioner Dwyer arrived at this time, 6:03). COMMISSIONER HOLMGREN MOVED TO APPROVE THE APRIL 10, 1995, EDA MINUTES. COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 7- O. 4. Open Mke No one appeared for this item. 5. Consider May EDA Financial Update And Check Reqister Executive Director Bill Rubin reviewed the following loan funds: Mcro-Ioan Fund The micro-loan fund had a cash balance of $124,212.62 as of April 30, 1995 DTED Micro-loan Fund The DTED micro-loan fund had a cash balance of $31,928.11 as of April 30, 1995. Economic Development Authority Minutes May 8, 1995 Page 2 The Executive Director reviewed the check register which was enclosed in the EDA packet. EDA Commissioners reviewed the check register and acknowledged its receipt. 7. Consider a Request For Tax Increment Financinq Assistance From Neos, Inc. Executive Director Bill Rubin acknowledged that the EDA is in receipt of a request for tax increment financing from Mr. Jack Mowry of Neos, Inc., 12797 Meadowvale Road. Mr. Mowry is proposing construction of a 16,000 square foot multi-tenant facility to be located in the McChesney Industrial Park. The Executive Director stated that Mr. Mowry is requesting TIF funds in the amount of $80,000, $60,000 of which would be used to write down the acquisition price of the lots in the industrial park and $20,000 which will be used for site preparation. Executive Director Bill Rubin stated that an Economic Development District would be established. He indicated that new TIF districts created by a city will result in a loss of state aid. The EDA discussed the irnpact that a new TIF district would have on the city regarding the possible loss of state aid funds. Bill Rubin informed the EDA that the finished market value of the building is proposed to be $585,000.00. He further stated that when completed Neos, Inc. and the tenants in the facility would create sixteen new jobs and retain sixteen jobs. Bill Rubin discussed the need for a public hearing to discuss the terms and conditions of the sale of the property. COMMISSIONER DWYER MOVED THAT THE EDA UNDERTAKE THE FOLLOWING: . PREPARE A T1F PLAN FOR THE MOWRY /NEOS, INC. EXPANSION . SCHEDULE A PUBLIC HEARING FOR JUNE 12, 1995 TO CONSIDER THE ADOPTION OF THE TIF PLAN . AUTHORIZE A 90 DAY OPTION ON LOT 6 AND 7, MCCHESNEY INDUSTRIAL PARK . SCHEDULE A PUBLIC HEARING FOR JUNE 12, 1995 TO DISCUSS THE TERMS AND CONDITIONS BY WHICH LOT 6 AND 7 MCCHESNEY INDUSTRIAL PARK WOULD BE CONVEYED TO MOWRY /NEOS, INC. COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 7-0. 6. Public Hearinq To Consider The Proposed Sale Of Lot 8, Block 1, Elk River Industrial Park To Independent School District 728 President Gongoll stated that he would abstain from a vote on tAis issue, due to his involvement with the school board. Pat Klaers, City Administrator, stated that the school board has directed Mr. Ron Bratlie to work with the city regarding the possible sale of Lot 8, Block L Elk River Industrial Park to the school district. He indicated that the school district would use the property to construct a maintenance facility. President Gongoll opened the public hearing. Economic Development Authority Minutes May 8, 1995 Page 3 Ron Bratlie on behalf of the School Board presented the EDA with a site drawing of the proposed facility. He informed the EDA that it is the intention of the school district to have no outside storage at the facility. The EDA indicated its concern regarding future expansion. Mr. Bratlie indicated that it is planned that this building will meet the needs of the school district for at least ten years and that there has been room provided for expansion. Commissioner Holmgren indicated his concerns regarding outside storage and expansion of the site have been addressed. He indicated that he still has a concern regarding the use of this site for a tax-exempt entity. Ron Bratlie indicated that space is limited for this type of facility. He further stated that the school district has searched other areas but felt that 1his site was best suited for the district's maintenance facility. There being no further comments, President Gongoll closed the public hearing. Commissioner Dwyer stated that he would support the sale of the industrial park property to the school district if the alternate site, located at the Oak Knoll fields, would remain as part of the Oak Knoll park and not be used by the school district for some other purpose in the future. Commissioner Farber indicated that the industrial park site is not a prime site due to the wetlands. He further indicated his concern regarding the lack of recreational fields and stated that he would also prefer that the Oak Knoll park alternate site remain as park land. Commissioner Holmgren indicated that he concurred with Commissioner Dwyer, and Commissioner Farber regarding the Oak Knoll property. COMMISSIONER HOLMGREN MOVED TO PROCEED WITH THE NEGOTIATION OF THE SALE OF LOT 8, BLOCK 1, ELK RIVER INDUSTRIAL PARK TO THE SCHOOL DISTRICT AT A PRICE BETWEEN $37,500 to $45,000. COMMISSIONER DWYER SECONDED THE MOTION. MOTION CARRIED 6-0-1. PRESIDENT GONGOLL ABSTAINED. 8. Update On The City's Review And Permittinq Process Executive Director Bill Rubin informed the EDA that Training Networks, Inc. has submitted a revised proposal for facilitated planning, staff training, internal teamwork and information flow, as outlined in the needs assessment report. President Gongoll stated he supports the efforts and recommends that the City Council strongly consider approving the revised report. . Commissioner Dwyer indicated that if this proposal is going to be successful, the City must move on to the next phase. Economic Development Authority Minutes May 8, 1995 Page 4 9. Update On Business Park Activities Executive Director Bill Rubin updated the EDA on the Elk River Business Park activities. lOA. EDA Workshop The EDA discussed the possibility of holding an EDA workshop during the month of June. President Gongoll indicated that he would like to see a report from the Steering Committee at this workshop. Commissioner Dwyer indicated that it may be appropriate for the Steering Committee to discuss the issue of water and sewer being extended to the eastern part of the city. Other items for discussion at the workshop include prioritizing expenditures from TIF Districts No.1, No.3, and former District No.4. President Gongoll also suggested an update on the Riverfront Corridor concepts. 11 . Adiournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the EDA adjourned at 6:50 p.m. Respectfully submitted, j 1 ~JJuvl'f i ~ U/~ Sandra Thackeray City Clerk s:minutes:edaOS-08