03-12-1990 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT ELK RIVER CITY HALL
MONDAY, MARCH 12, 1990
MEMBERS PRESENT: Vice Chair Holmgren, Commissioners Schuldt, Kropuenske,
Gongoll, and Dwyer
MEMBERS ABSENT: Chairman Tralle and Commissioner Dobel
STAFF PRESENT: Pat Klaers, Executive Director; Dick Fursman, Economic
Development Coordinator; Lori Johnson, Finance Director;
and Mike Mulrooney, Economic Development Consultant
Treasurer Schuldt indicated that prior to the formal opening of the EDA
meeting that he would accept a City Council "Open Mike" request from Big
Lake Township Clerk, John Norgren. Mr. Norgren submitted a petition to the
City Council regarding proposed improvements near the Big Lake Township/City
of Elk River common boundary on 225th Avenue and/or Ranch Road.
1.
Call meetin~ to order
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Pursuant to due call and notice thereof, the meeting of the Elk River
Economic Development Authority was called to order by Treasurer Schuldt
at 7:00 p.m.
Vice Chair Holmgren stated that he preferred Treasurer Schuldt to
preside over this meeting, as Vice Mayor Schuldt would be presiding
over the City Council meeting because the Mayor was absent.
2. Consider 3/12/90 EDA A~enda
Treasurer Schuldt requested to be added under "Other Business."
COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 3/12/90 EDA AGENDA AS
AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
3.1. Consider 2/12/90 EDA Minutes
COMMISSIONER HOLMGREN MOVED TO APPROVE THE 2/12/90 EDA MINUTES.
COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED
3-0-2. Commissioners Gongoll and Dwyer abstained as they were not EDA
members on 2/12/90.
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3.2. Consider 3/5/90 EDA Minutes
COMMISSIONER HOLMGREN MOVED TO APPROVE THE 3/5/90 EDA MINUTES.
COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Economic Development Authority Minutes
March 12, 1990
Page 2
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4. Annual ReDort
Economic Development Coordinator, Dick Fursman, distributed the final
version of his 1989 Economic Development Department Annual Report. Mr.
Fursman noted that were very few additions or changes in this final
report from the draft annual report that was distributed in the EDA
agenda packet.
Mr. Fursman began his annual report presentation by reviewing the 1989
EDA meeting schedule. It was indicated that there were 21 EDA meetings
held in 1989 and the majority of the meetings dealt with three issues.
These three issues were the Mork Clinic proposal, AmericInn Motel
proposal, and trying to resolve the "hole in the ground" problem in the
Central Business District that was a result of a 1988 fire.
A brief discussion took place regarding the Star City program and how
that program forces a community to plan for Economic Development
activities. Mr. Fursman indicated that it is the City's intention to
remain an active member in the Star City program for at least the next
few years.
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The City Revolving Loan program was the next report item discussed. It
was stated that this program began in 1988 with zero funds and at the
end of 1989 had accumulated $107,000 in cash. Projections call for an
additional $4,700 to be received each month in 1990. Monies will be
added to this fund through loans made by the City (directly or
indirectly by the State) to Alltool, Mork Clinic, and Roma Plastics.
Mr. Fursman discussed the one Tax Increment Financing project that was
authorized in 1989 for Mork Clinic. Discussion also took place on the
Tax Increment Financing project that was worked on in 1989 for the
motel proposal. Mr. Fursman indicated that contrary to public
perception, the City has had a limited use of Tax Increment Financing
the past few years.
The City's marketing efforts for 1989 were discussed. These marketing
endeavors included advertisements in various journals which were
distributed both locally and state wide. It was indicated that after
the annual report presentation, Mr. Mulrooney would be
discussingmarketing proposals for 1990.
Mr. Fursman briefly updated the EDA on 1989 activities that required a
significant amount of attention from his department. These projects
included Alltool Manufacturing, Mork Clinic, Central Business District
"Block A," AmericInn Motel, Custom Conveyor, and Americo.
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Mr. Fursman discussed with the EDA proposed City assistance for the
downtown "Block A" project and the possible Remmele Engineering
expansion in Elk River. It was stated that these two offers of
assistance by the City seemed to contradict the public perception that
the City is not aggressive in trying to attract businesses.
Economic Development Authority Minutes
March 12, 1990
Page 3
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Mr. Fursman indicated that he received approximately 20 serious
contacts from industries desiring to locate in Elk River. Of these 20,
approximately 18 wanted existing space which currently is very
limited. In this regard, Elk River is similar to many communities that
are trying to attract industries, but does not have vacant building
space available.
Discussion took place on the business Retention Survey and the 1990
Star City work plan. The proposed work plan, as presented by the
staff, was reviewed in detail by the Authority.
COMMISSIONER KROPUENSKE MOVED TO ADOPT RESOLUTION 90-3, A RESOLUTION
APPROVING 1990 STAR CITY ECONOMIC DEVELOPMENT ONE YEAR AND FIVE YEAR
WORK PLANS. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
At this time the EDA thanked Mr. Fursman for his annual report and his
continuous efforts to help the City achieve its economic development
goals.
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Economic Development Consultant, Mike Mulrooney, discussed with the EDA
an economic development marketing strategy for Elk River in 1990. Mr.
Mulrooney distributed a handout to the EDA dated 3/2/90. Mr. Mulrooney
briefly reviewed this handout with the EDA and indicated that the EDA
would be hearing a great deal more about marketing strategies and
efforts in the next few months. It was stated that a major goal for
the EDA and for the staff is to get better organized in our attempts to
attract industries to Elk River and to start developing an overall
marketing plan in 1990. The plan could be implemented in 1990 in order
to promote what the community has to offer at this time along with
promoting what the community hopes to have available in the future for
industrial and commercial economic development opportunities. A future
meeting was mentioned for further examination of the marketing concept.
Executi ve Director Klaers stated that it would be appropriate for the
EDA to establish a regular monthly meeting date, time, and place in
order to spend time developing the City marketing program and in order
help facilitate better communication between the members and the staff.
COMMISSIONER DWYER MOVED TO ESTABLISH THE SECOND MONDAY OF EVERY MONTH
AS THE REGULAR EDA MEETING DATE AND THAT THE MEETINGS WILL BEGIN AT
7:00 P.M. AT THE ELK RIVER CITY HALL CONFERENCE ROOM. COMMISSIONER
GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
5.
Other Business
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Treasurer Schuldt requested that the staff provide an update to the EDA
on the Wednesday afternoon meeting (3/7/90) that was held with Mr.
Elmer Anderson, Representatives of Security Financial, and
Economic Development Authority Minutes
March 12, 1990
Page 4
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Representatives of the former hardware store (hole in the ground). Mr.
Mulrooney indicated that Mr. Anderson is proposing to relocate his
businesses, demolish the existing structures, and reconstruct a
facility in 1991. Discussion at the Wednesday meeting centered on the
possibility of Mr. Anderson purchasing the "hole in ground" and
construction of building on that site. In this manner, he would not
need to relocated his businesses more than once and then his property
could go on the market and Security Financial may pursue its purchase
in order to expand its adjacent facility. Mr. Mulrooney stated that
the City's role is that of coordinator and not of developer and that at
this time Mr. Anderson must take the lead in pursuing his options and
proposals.
6. Adjournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN
THE 3/12/90 EDA MEETING. COMMISSIONER DWYER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
The meeting of the Elk River Economic Development Authority adjourned at
approximately 9:25 p.m.
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Respectful~y s..u bmi ted,
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Patrick KIa s
City Administrator
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