12-11-1995 EDA MIN
IVIEETING OF THE ELK RIVER ECONOMIC DEVELOPl\fENT
AUTHORITY
HELD AT THE ELK RlVER CITY H.ALL
MONDAY, DECEMBER 11, 1995
Members Present:
President GongolL Commissioners Scheel, Dwyer, Duitsman,
Holmgren, Farber, and Bender
Members Absent:
None
Staff Present:
Bill Rubin, Executive Director; Sandra Thackeray, City Clerk
1. Call Meetina To Order
Pursuant to due call and notice the~eof. the meeting of the Elk River Economic
Development Authority was called to order at 6:00 p.m. by President Gongoll.
2. Consider December 11, 1995, EDA Aaenda
Item 12.2. - Woodsmen Quality Products Loan/Satisfaction of Mortgage - was
added to the agenda.
COMMISSIONER BENDER MOVED TO APPROVE THE DECEMBER 11, 1995, AGENDA
AS AMENDED. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
3. Consider EDA Consent Aqenda
COMMISSIONER FARBER MOVED TO APPROVE THE EDA CONSENT AGENDA AS
FOLLOWS:
4.1. NOVEMBER 13, 1995, EDA MINUTES -- APPROVED
4.2. NOVEMBER 20, 1995, EDA MINUTES -- APPROVED
7. EDA CHECK REGISTER -- APPROVED
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
5. Open Mike
No one appeared for this item.
6. Consider December EDA Financial Statement
Executive Director Bill Rubin reviewed the Statement of Financial Activity for the
period ending November 30, 1995, indicating the following cash balances:
Econornic Development ,Authority - $64,864-
Micro Loan Fund - $140,058
DTED Block Grant Loan Fund - $51,173
Elk River EDA Meeting
December 11. 1995
Page 2
8. Presentation from the Elk River Area Arts Council Concerninq q Multi-Use
Auditorium
Cliff Lundberg, representing the Elk River Area Arts Council, addressed the EDA in
regard to a multi-use auditorium. Mr. Lundberg indicated that the Elk River Area
Arts Council received an arts space grant to study the arts related needs in the
community. Cliff Lundberg reviewed the drawings of the proposed multi-use
auditorium indicating that this auditorium was planned to be used by both the
arts community and the community at large. Cliff Lundberg indicated that the
cost estimates for the proposed auditorium are from four to nine million dollars.
He suggested that the city consider reactivating the Community Center Task
Force to review the proposal. Cliff Lundberg indicated he would be making this
presentation to the City Council.
9. Consider a Contract for Private Development by and between the Elk Piver EDA
pnd Jack T. Mowry et al
Bill Rubin explained that on June 12, the EDA Commissioners approved a request
for tax increment financing assistance from Jack T. Mowry /Neos, Inc. to assist
with the construction of a 12,000 square foot precision machining facility in the
McChesney Industrial Park. He indicated that the City Council finalized the
request for TIF assistance by approving the Tax Increment Financing Plan. Bill
Rubin stated that a Contract for Private Development has been prepared by
and between the City of Elk River, Elk River EDA. Breagan Corporation, and
Neos, Inc (i.e. Jack Mowry). Bill Rubin explained the new statutory job creation
requirements for companies obtaining public grants or loans after July 1, 1995.
Bill Rubin stated that the tax increment revenue note indebts the city to
Breagan/Neos in an amount equal to 15 percent of the project's finished market
value.
COMMISSIONER DWYER MOVED TO AUTHORIZE THE PRESIDENT AND EXECUTIVE
DIRECTOR TO EXECUTE ITS PORTION OF A CONTRACT FOR PRIVATE DEVELOPMENT
WITH JACK T. MOWRY jBREAGAN CORPORATlONjNEOS, INC. COMMISSIONER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
10. Review Proposed Modifications to TIF Pian No.2 and TIF Plan NO.3
Bill Rubin indicated that the City Council has scheduled public hearings for
December 21 to consider proposed modifications to TIF Plan No.2 and TIF Plan
NO.3. He stated that it is the intention of the City Council to decertify both
Districts by December 31, 1995.
Bill Rubin reviewed the proposed expenditures of TIF funds from District No.3 and
former District No.4 which were discussed by the EDA at workshops in June and
August, 1995. Bill Rubin reviewed proposed activities and expenditures for TIF
r'km No.3. He stated that the three categories for these proposed activities are:
Business and Industrial Park aCiivities, Urban Renewal ond Redevelopment
activities, and Infrastructure'lmprovements.
Elk River EDA :Meeting
December 11. 1995
Page 3
It was the consensus of the EDA to concur with the overview presented by
Executive Director Bill Rubin. It was further the consensus that two of the three
elements from the EDA workshop are in the plan modifications and further that
District No.4 achieves what was discussed at the August workshop.
11. Discuss 1996 EDA Committee Appointments
Executive Director Bill Rubin indicated that the EDA has placed display ads in
the Elk River Star News for prospective candidates to EDA Committee
appointments for 1996. He indicated that the display ad did not result in a
response from prospective candidates.
Bill Rubin indicated that he has received a request from Steve Foster to be
considered for appointment to the Finance Committee. It was the consensus of
the EDA to consider the application from Steve Foster for appointment to the
Finance Committee.
Bill Rubin suggested that the EDA consider specific terms for EDA Committee
members.
No action was taken on this issue.
12.1. Reminder - January 8, 1996, Annual Meeting
Bill Rubin reminded the EDA members of the EDA annual meeting to be held
January 8, 1996. He indicated that election of officers would be held at that
meeting and goals would be discussed for the upcoming year.
12.2. Woodsmen Quality Products/Satisfaction of Mortaaae
Bill Rubin indicated that Woodsmen Quality Products will be selling its property.
He indicated that a satisfaction of mortgage would enable the president and
executive director to authorize the release of the EDA mortgage.
COMMISSIONER DWYER MOVED TO AUTHORIZE THE EDA PRESIDENT AND
EXECUTIVE DIRECTOR TO EXECUTE THE RELEASE OF MORTGAGE BETWEEN THE ELK
RIVER EDA AND WOODSMEN QUALITY PRODUCTS. COMMISSIONER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
13. Adiournment
There being no further business, COMMISSIONER FARBER MOVED TO ADJOURN
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Elk River EDA was adjourned at 6:50 p.m.
Respectfully submitted,
Sandra A. Thackeray
Cty Clerk