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05-14-1990 EDA MIN e e e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MAY 14, 1990 Members Present: Chairman Tralle, Commissioner Kropuenske, Dobel, Gongoll, Holmgren and Dwyer Members Absent: Commissioner Schuldt Staff Present: Pat Klaers, Executive Director; Lori Johnson, Finance Director; Dick Fursman, Economic Development Coordinator; Sandy Thackeray, City Clerk 1. Call Meetin~ To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 7:05 p.m. by Chairman Tralle. 2. Consider 5/14/90 EDA A~enda Item 10.2, Executive Director Update, was added to the agenda. COMMISSIONER KROPUENSKE MOVED TO APPROVE THE AGENDA AS AMENDED. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider 4/9/90 EDA Minutes COMMISSIONER HOLMGREN MOVED TO APPROVE THE 4/9/90 EDA MINUTES. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-0-1. Commissioner Dobel abstained. 4. Dental Clinic Undate Dick Fursman, Economic Development Coordinator, indicated that he had been working with Doctors Jarmoluk and Nyberg to find a location for their new clinic. He indicated that they have come up with two possibili ties, one being the Jenne property and the other being the Johnson property located on the north side of Main Street at Lowell Avenue. Mr. Fursman stated that if the doctors decide to locate on the Jenne property there will be many hurdles to overcome. He indicated that first, the City must decide who owns the property and what level of assistance the City would be willing to offer. He indicated that up to $400,000 would be required to purchase the land and put a foundation up to street level to support the two levels of businesses from street level up. Mr. Fursman indicated that this is an expensive venture for the City to assist in but stated that he does not feel. that a private owner would. be able to come up with $400,000 to get;the site up to street level and ready for construction. Mr. Fursman stated that there could be underground parking on the two levels beneath the street level and that another option would be to fill the hole up to street level. Economic Development Authority Minutes May 14, 1990 Page 2 e Mr. Fursman stated that the doctors are working under a time constraint and need to be in their new building by the first of January. The Executive Director stated that if the doctors do have plans of getting into a new building by January, it would be very difficult for them to pursue the Jenne site. Chairman Tralle stated that he would not like to see the Jenne site turned into a City park. He did not feel that this was a viable option. He further stated that with the TIF law changes the City must be cautious so as not to affect City funds in future years. He indicated that he did not feel the City could make a decision at this time. e The Executive Director indicated that if the dental clinic locates on Main Street on the Johnson property, the City would be requested to assist in the correction of the property and demolition of the existing structure. He stated that the existing house on the property straddles the lot line and must be removed. Mr. Fursman indicated that the building on the property is useless adding $50,000-$60,000 in cost when considering the cost of the home plus demolition. Mr. Fursman indicated that this is the amount of money the doctors may be requesting from the City. The Executive Director indicated that the City would have to look at the effect $50,000-$60,000 of TIF would have on the Ci ty regarding local government aid cuts. He indicated that staff would review the possibility of using the revolving loan fund as opposed to TIF. 5. Elmer Anderson RedeveloDment Block A Dick Fursman stated that Mr. Elmer Anderson is still interested in developing the Jenne site. He stated that Mr. Anderson would like to work together with the City to do something with the blighted piece of property and further, that Mr. Anderson has stated that he would not be able to bear the cost of developing the site for construction on his own. Mr. Fursman stated that the staff is proposing that the City participate with Mr. Anderson in obtaining the services of an engineer/architect to come up with a preliminary design which would show the cost associated with the project regarding various developments on the property. Chairman Tralle stated that the City does need some better data on the site in order to make a recommendation for development of the site. COMMISSIONER DOBEL MOVED TO PARTICIPATE IN 50% OF THE COST FOR THE ENGINEER/ARCHITECT TO GATHER PRELIMINARY DESIGNS AND OPTIONS ON THE PROPERTY KNOWN AS THE JENNE SITE OR THE "HOLE IN THE GROUND" AND THAT THE 50% BE SHARED WITH MR. ELMER ANDERSON. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0. e Economic Development Authority Minutes May 14, 1990 Page 3 e 7. Reimbursement of City Expenses Lori Johnson, Finance Director, reviewed with the EDA the statement of expenses relating to the Economic Development Authority activities for the end of 1989 and the first four months of 1990. She indicated that she is requesting authorization and approval of a check in the amount of $9,611.95 for EDA expenses and activities during this time period. COMMISSIONER HOLMGREN MOVED TO AUTHORIZE A CHECK IN THE AMOUNT OF $9,611.95 FOR EDA EXPENSES AND ACTIVITIES. FOR THE END OF 1989 AND THE FIRST FOUR MONTHS OF 1990. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 6-0. 6. Industrial Update a. Pure Steam Humidifier ComDany e Mr. Fursman indicated that the Pure Steam Humidifier Company has located in the City of Elk River. He stated that the company will be coming to the City for a loan request. Mr. Fursman indicated to the EDA that he is recommending that the loan request from this company go through the Financial Committee. It was the consensus of the EDA to have the Financial Committee review the Pure Steam Humidifier's loan request. b. Micro Circuit Manufacturin~ Incorporated Mr. Fursman indicated that the Micro Circuit Manufacturing Company has approached Elk River and indicated that Elk River is its first choice for location. He indicated that the company will be producing hybrid electronic boards and is seeking close to $1,000,000 in financing to start the venture. Mr. Fursman stated that he has been helping the company to obtain financing through different sources such as State Economic Development Grants, Small Business Administration Guarantees and the Central Minnesota Initiative Fund. Mr. Fursman indicated to the EDA that the main problem Micro Circuit is having with Elk River is locating a building. Mr. Fursman indicated that there are no vacant buildings available for commercial or industrial businesses in Elk River at this time. c. Additional Manufacturers e Mr. Fursman indicated that he has been working with three manufacturers who are considering Elk River as a business site. He indicated that one needs 20,000 square feet and another one needs 7,200 square feet, and that the City does not have any buildings available. Mr. Fursman indicated that he is beginning to make contacts with developers who may be interested in putting up industrial buildings for lease or sale. He stated that without available space it is very difficult to recruit and capture some of the up and coming businesses in the area. Economic Development Authority Minutes May 14, 1990 Page 4 e d. EXDansions Mr. Fursman indicated that Alltool Manufacturing has informed the Ci ty that they are investigating an expansion of their existing building. He indicated that they are considering up to 40,000 square feet of additional space to add on to their existing building. Mr. Fursman further indicated that Alltool would possibly be looking at assistance from the City through the revolving loan fund. e. Americo Mr. Fursman updated the EDA by stating that Americo was unable to remain solvent and had to leave Alltool's building. Mr. Fursman indicated that the City did not make a loan to the company as they did not meet the specifications imposed on them. 8. Newsletter e Mr. Fursman stated that the Elk River Star News has submitted a bid for the Economic Development Newsletter. He indicated that after receiving two verbal quotes for the newsletter, he felt that the Star News was very comparable. Mr. Fursman stated that he is weighing the benefits of distributing the City's Economic Development Newsletter to the entire Twin City Business Market which would be about 20,000 copies, or whether the newsletter should be distributed with a smaller direct mail in the ne ighborhood of about 3,000 copies. Mr. Fursman rev iewed the format of the newsletter with the EDA. COMMISSIONER KROPUENSKE MOVED TO APPROVE THE NEWSLETTER FORMAT AND THE STAR NEWS AS THE PUBLISHER. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Journal Advertising Uodate Dick Fursman discussed with the EDA the possibility of Elk River putting in a series of ads in the City Business News magazine. Mr. Fursman also discussed with the EDA the different types of possible advertising. One type discussed was a cartoon advertisement. It was the consensus of the Council to proceed with the advertising campaign but not with the cartoon advertisement. Mr. Fursman requested to do a pamphlet regarding space available in the industrial park to help attract businesses into Elk River. It was the consensus of the EDA to proceed in putting together some type of pamphlet for promoting the industrial park. 10.1 Star City Meeting May 23. 1990 e Mr. Fursman informed the EDA that a Star City Recertification meeting has been scheduled with the State of Minnesota for Wednesday, May 23, 1990, at 7:00 p.m. at the City Hall. e . . Economic Development Authority Minutes May 14, 1990 Page 5 10.2 Executive Director Uodate Pat Klaers, Executive Director, updated the EDA on several items including; NSP tax abatement, response received from Mr. MacGibbon regarding sidewalk, Series E sign for the motel, the MnOOT tour, and the Chamber dinner awards banquet. 11. Adjournment There being no further business, COMMISSIONER OOBEL MOVED TO ADJOURN THE MEETING. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Elk River Economic Development Authority adjourned at 9:15 p.m. Respectfully submitted, ~~ Sandy Thackeray City Clerk