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06-11-1990 EDA MIN . . . MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT ELK RIVER CITY HALL MONDAY, JUNE 11, 1990 MEMBERS PRESENT: Commissioners Kropuenske, Schuldt, Holmgren, and Gongoll MEMBERS ABSENT: Commissioners Dobel, Tralle, and Dwyer STAFF PRESENT: Pat Klaers, City Administrator; Tim Keane, City Attorney; Richard Fursman, Economic Development Coordinator; Lori Johnson, Finance Director; Sandy Thackeray, City Clerk; Mike Mulrooney, Economic Development Consultant 1. Call Meetin~ to Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 8:30 p.m. by Commissioner Schuldt. Commissioner Holmgren indicated that he did not wish to Chair the Economic Development Authority meeting, therefore, he was handing the Chair over to Commissioner Schuldt. 2. Consider 6/11/90 A~enda COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 6/11/90 EDA AGENDA. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 4-0. 3. Consider 6/4/90 Economic Development Authority Minutes COMMISSIONER HOLMGREN MOVED TO APPROVE THE 6/4/90 ECONOMIC DEVELOPMENT AUTHORITY MINUTES. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 2-0-2. Commissioners Kropuenske and Schuldt abstained as they were absent at that meeting. 4. Elmer Anderson/Downtown Redevelopment Update Richard Fursman indicated that he had contacted Jim Trucker, the design assistant for the downtown redevelopment project, and authorized him to go ahead with the study. He indicated that the information from Mr. Trucker may be available for the July EDA meeting. Mr. Fursman stated that he had also received a letter from Mr. Pierce and Mr. Gary Santwire indicating their interest in the property. He stated that he has encouraged them to continue with their plans. 5. Main Street Dental Doctors Nyberg and Jarmoluk and Phil Durrahn, Legal Counsel, were present for this item. Mr. Fursman indicated that Doctors Jarmoluk and Nyberg have entered into a Purchase Agreement for the Johnson property site and have asked for City assistance. He stated that after reviewing the estimated cost of the demolition, it was estimated that Economic Development Authority Minutes June 11, 1990 Page 2 . approximately $60,000 would make this site finacially feasible for the project. The EDA reviewed the memo from the Economic Development Coordinator and the plans attached to the memo regarding the Main Street Dental Clinic. It was indicated by the EDA that as the project got under way, parking issues would need to be addressed. The staff memo (6/8/90) requested EDA approval to set up a Tax Increment Financing (TIF) redevelopment district to financially assist this project. It was noted that the district is expected to be in place for only 6-7 years and, therefore, the City should not be penalized with any reduction in State funds. COMMISSIONER GONGOLL MOVED TO HAVE THE STAFF BEGIN WORK ON ESTABLISHING A TIF REDEVELOPMENT DISTRICT FOR THE DENTAL SITE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0. . The City Attorney informed the EDA that the findings and creation of a redevelopment district have changed. He questioned whether the City has asked as to whether the property qualifies as a redevelopment district. Dick Fursman indicated that the City, nor the developers, have been able to access the property. He stated that the owner of the property will meet with the developers on Thursday, and they will gain access to the property at that time. The City Attorney cautioned the EDA that due to new statutory findings regarding TIF, strict adherence will be required. Dick Fursman indicated that the City has informed the developers of these findings. 6. Newsletter Advertisin~ Update Dick Fursman informed the EDA that Mike Mulrooney, the City Economic Development Consultant, will provide summary costs associated with the distribution of the economic development newsletter. He further indicated that Mr. Mulrooney will provide an outline of various cost scenarios which would include limited or mass mailings. Mike Mulrooney distributed a memo to the EDA regarding the marketing plans. He indicated that the memo outlines the various elements of the marketing program. He reviewed with the EDA the goals and objectives the marketing strategy and the costs involved in the EDA newsletter. Mr. Mulrooney indicated that the cost would be as follows: publici ty $6,000; advertising $6,000; direct-mail $2,000; personal selling $2,000; sales promotion $6,000; and networking/indirect distributor $2,000. The City Administrator indicated that the City's budget had allowed for $18,000 for the projects. He indicated that part of the costs included in Mike Mulrooney's memo were related to staff time and, therefore, do not show up as a budget item. . COMMISSIONER KROPUENSKE MOVED TO AUTHORIZE STAFF TO CONTINUE WITH THE MARKETING PLAN AS OUTLINED IN THE MEMO TO THE EDA MEMBERS DATED JUNE 11, 1990, FROM MIKE MULROONEY. COMMISSIONER GONGOLL SECONDED THE MOTION. Commissioner Holmgren indicated that he supports the concept, but questioned the cost involved. . . . Economic Development Authority Minutes June 11, 1990 Page 3 THE MOTION CARRIED 4-0. 7. Le~islative Update TIF Tim Keane, City Attorney, indicated that he had requested Public Corp. to prepare some examples and tables regarding the impact of the new TIF laws on the City. He indicated that the State Legislature has created a sliding scale for offsetting the benefit of TIF to the community and distributing the TIF benefit to the school district. Mr. Keane & Mr. Mulrooney reviewed the affects of the new TIF laws with the EDA. 8. Other Business There was no other business at this meeting. 9. Executive Director Update No update items were presented at this time. 10. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 4-0. The meeting of the Economic Development Authority adjourned at 10:05 p.m. Respectfully submitted, ~~ S~ndra Thackeray . City Clerk