06-12-1995 EDA MIN
MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 12, 1995
Members Present:
President Gongoll. Commissioners Bender, Duitsman, Farber,
Dwyer
Members Absent:
Commissioners Holmgren, Scheel
Staff Present:
Bill Rubin, Executive Director; 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 June 12, 1995 EDA Aaenda
Executive Director, Bill Rubin, noted that item 11 would be deleted from the
agenda.
COMMISSIONER FARBER MOVED TO APPROVE THE JUNE 12, 1995 EDA AGENDA AS
AMENDED. COMMISSIONER DWYER SECONDED THE MOTION. MOTION CARRIED
5-0.
3.
Consider EDA Consent Agenda
COMMISSIONER DWYER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
4. MAY 8, 1995 MINUTES - APPROVED
7. CHECK REGISTER - APPROVED
COMMISSIONER BENDER SECONDED THE MOTION. MOTION CARRIED 5-0.
5. Open Mike
No one appeared for this item.
6. Consider EDA Financial Update
Executive Director, Bill Rubin, reviewed the statement of financial 9ctivity which
was provided to the EDA by the Assistant City Administrator. The Micro loan fund
had a cash balance of $136,802.87 as of May 31, 1995, and the DTED Block
Grant Micro loan fund had a cash balance of $35,110.49 as of May 31, 1995.
Commissioner Duitsman indicated that he would like the reports to better reflect
what has transpired in each account.
Economic Development Authority Meeting
June 12. 1995
Page 2
8. Discuss alternatives to trainina networks proposal
Bill Rubin informed the EDA Commissioners that a city council motion to accept
a revised proposal from Training Networks Incorporated failed twice; once at
the May 8 City Council meeting and at the May 22 City Council meeting. Bill
Rubin requested suggestions from the EDA regarding this matter.
President Gongoll indicated that he was disappointed that the process
facilitation proposal submitted by Training Networks proposal was not
accepted by the City Council. He stated that the proposal should be approved
and requested the City Council to consider the proposal once again.
Commissioner Duitsman indicated that he abstained from the vote on this issue
as he is unsure as to whether or not this is a good expenditure of City funds.
9. Update On The Proposed Sale of Lot 8 Block L Elk River Industrial Park To
Independent School District 728
Executive Director, Bill Rubin, stated that the Board of Education has authorized
the purchase of Lot 8, Block 1, Elk River Industrial Park from the City of Elk River in
the amount of $45,000. He noted that the City Attorney is preparing the
necessary documents for closing on this land sale. Bill Rubin distributed a draft
contract for private development. between the Economic Development
Authority and Independent School District 728. The EDA reviewed the contract
for private development. Bill Rubin informed the Commissioners that the City
A ttorney would review the draft document and make any changes that are
necessary.
COMMISSIONER DWYER MOVED TO APPROVE THE CONTRACT FOR PRIVATE
DEVELOPMENT BY AND BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY FOR
THE CITY OF ElK RIVER AND INDEPENDENT SCHOOL DISTRICT 728. COMMISSIONER
BENDER SECONDED THE MOTION. MOTION CARRIED 5-0.
Bill Rubin informed the Commissioners that the sales of EDA sites in the Industrial
Park has generated $252,000. He indicated that this has exceeded the EDA
obligation to generate $210,000 in sales from the Elk River Industrial Park.
10. Public Hearinq To Consider a Tax Increment financina Plan for Tlf District No. 12
Bill Rubin stated that Mr. Jack Mowry of Neos, Inc. and owner of Metal Craft
Machine and Engineering is requesting tax increment financing assistance in the
amount of $80,000. Bill Rubin explained that Mr. Mowry is proposing the
construction of a 12,000 square foot facility with a finished valuation between
$300,000 and $325,000 excluding the land value. The tax increment funds would
be used to write down the cost of the land and for general site development
and site preparation costs associated with the project.
Economic Dcvelopment Authority Meeting
June 12. 1995
Page 3
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Bill Rubin indicated that a "pay as you go" TIF District is proposed. As a result,
Mowry/Neos will absorb the cost of site acquisition and site preparation and as
the new facility begins generating taxes, the City rebates the property taxes
back to Mowry/Neos twice a year. Bill Rubin explained the advantages using
the" pay
as you go" technique. Some of the advantages include not having to borrow
funds, shortening the life of the TIF District and not having to incur interest
charges.
President Gongoll opened the public hearing.
Jack Mowry indicated the Neos would be retaining five existing jobs and
creating six new jobs.
There being no further business President Gongoll closed the public hearing.
Bill Rubin reviewed the issue of LGA/HACA loss in relation to tax increment
financing.
COMMISSIONER FARBER MOVED TO ADOPT EDA RESOLUTION 95-2 A RESOLUTION
FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER,
MINNESOTA RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO. 12 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT
FINANCING PLAN RELATING THERE TO LOCATED WITHIN DEVELOPMENT DISTRICT
NO. 1. COMMISSIONER DWYER SECONDED THE MOTION. MOTION CARRIED 5-0.
11. Consider a Loan Request From Kermit Bodv, Custom Cutter Grindinq
Corporation.
This item was deleted from the agenda.
12. Other Business
There was no other business
13. Adiournment
COMMISSIONER BENDER MOVED TO ADJOURN THE EDA MEETING.
COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 5-0
The meeting of the EDA adjourned at 7:07 p.m.
Respectfully submitted,
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Sandra Thackeray
City Clerk