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03-12-1990 EDA MIN e 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 - 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. - 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 e 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. e 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. e 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 e 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. e 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 e 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 e 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. e Respectful~y s..u bmi ted, ?7) ! y tLkVr--~ Patrick KIa s City Administrator e