06-04-1990 EDA MIN
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MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 4, 1990
Members Present:
Chairman Tralle, Commissioners Holmgren, Schuldt and
Dobel
Members Absent:
Commissioners Kropuenske, Dwyer and Gongoll
Staff Present:
Dick Fursman, ED Coordinator; Pat Klaers, City
Administrator; Lori Johnson, Finance Director; Sandy
Thackeray, City Clerk; Tim Keane, City Attorney
1. Call Meetin~ To Order
Pursuant to due call and notice thereof, the meeting of the Economic
Development Authority was called to order by Chairman Tralle at 10: 10
p.m.
2. Consider 6/4/90 EDA A~enda
COMMISSIONER HOLMGREN MOVED TO APPROVE THE 6/4/90 EDA AGENDA.
COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 4-0.
3.
Consider 5/14/90 EDA Minutes
COMMISSIONER SCHULDT MOVED TO APPROVE
COMMISSIONER HOLMGREN SECONDED THE MOTION.
THE 5/14/90 EDA MINUTES.
THE MOTION CARRIED 4-0.
4. Consider Revolvin~ Loan for Pure Steam Manufacturin~
Dick Fursman, Economic Development Coordinator, indicated that the
Economic Development Finance Committee members have reviewed the
revolving loan fund request of Pure Steam Manufacturing. He stated
that Pure Steam Manufacturing is the company which manufactures
industrial humidifiers and is located in McChesney Industrial Park.
Mr. Fursman stated that Pure Steam presently employs six people and has
hopes of expanding their operation to manufacture components for its
industrial humidifiers. He stated that the cost of expansion is
$45,000 and further indicated that Pure Steam has requested the City to
participate in an amount of $15,000.
Dick Fursman indicated to the EDA that the Finance Committee
unanimously recommended that the loan from the City be approved. The
terms of the loan are: $15,000 principal to be paid back over three
years at an interest rate of between 7% and 8%. The Economic
Development Authority discussed the City's involvement with the Pure
Steam Manufacturing Company.
COMMISSIONER DOBEL MOVED TO APPROVE A LOAN FROM THE CITY IN THE AMOUNT
OF $15,000 TO PURE STEAM MANUFACTURING FOR EXPANSION OF THEIR
Economic Development Authority Minutes
June 4, 1990
Page 2
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BUSINESS. COMMISSIONER SCHULDT SECONDED THE MOTION.
CARRIED 4-0.
THE MOTION
5. Consider Proposal for Distinctive Door Desi~n. Inc. to McChesney
Industrial Park
Dick Fursman informed the EDA that Distinctive Door Design, Inc. is a
company which manufactures doors and is presently located in
Zimmerman. He stated that it has presently outgrown its facility in
Zimmerman and is seeking a new location for its facility. Mr. Fursman
stated that Princeton has offered the company land for their facility
for a fee of $1.00 and further, that Distinctive Door Design has stated
that Elk River was its second choice out ,of nine different communities.
Dick Fursman indicated that after speaking to the owner of the company,
Mr. Patton, he was informed that the company would take a close look at
Elk River if Elk River had something similar to Princeton's offer. Mr.
Fursman suggested that the EDA consider assisting Mr. Patton to locate
in Elk River through the use of excess Tax Increment Financing funds to
purchase the McChesney property and then sell the property to
Distinctive Door Design for $1.00. Mr. Fursman indicated that he felt
that this would be a good investment for the City. He stated that the
City would gain eight new jobs with a future of four or five additional
employees.
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The EDA discussed the potential purchase of the land in the McChesney
Industrial Park.
It was the consensus of the EDA to allow staff to negotiate the best
terms possible with Tim Patton to encourage Distinctive Door Designs to
locate in Elk River.
6. Micro Circuit Manufacturin~
Dick Fursman informed the EDA that the memo regarding Micro Circuit
Manufacturing was an update on progress the company has made.
Mr. Fursman stated that Micro Circuit Manufacturing has committed to
Elk River provided industrial space can be found in time for them to
start manufacturing. He indicated that the City is working with them
in the aspect of reviewing their financial statements.
7.1 Star City Meetin~ Recap
Dick Fursman indicated that the City has received a letter from the
Minnesota Department of Trade and Economic Development congratulating
the City on its successful completion of the Star City recertification
process for 1990. Their letter states that the status will be
effective to the 1st of January, 1991.
4It 7.2 Downtown Redevelopment Tasks
Mr. Fursman indicated that he is moving ahead to seek information
relevant to site preparation on the property located at 605 Main Street
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Economic Development Authority Minutes
June 4, 1990
Page 3
known as "hole in the ground". He indicated that he spoke to Mr.
Trucker of Accent regarding the City's request. Mr. Fursman stated
that he is requesting elevations, cost and value, and also a cost
estimate for the option of filling in the site and grading it to create
a park.
Mr. Trucker indicated to Mr. Fursman that the cost of the study would
be $500 more than the City had offered. EDA members agreed that the
City should go ahead with the study and spend the additional money.
Mr. Fursman distributed a letter to the EDA from Design Resource
Group. He indicated that the Design Resource Group is interested in
developing the vacated site at 605 Main Street. Mr. Fursman indicated
that the meeting was very preliminary and that the EDA would receive
further information in the future.
8. Adjournment
There being no further business, COMMISSIONER DOBEL MOVED TO ADJOURN
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
The meeting of the Elk River Economic Development Authority adjourned at
10:50 p.m.
Respectfully submitted,
/7 . --I~ _ _ L.. A'.
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Sandy Thackeray
City Clerk