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09-10-1990 EDA MIN . e e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, SEPTEMBER 10, 1990 Members Present: Chairman Tralle, Commissioners Schuldt, Holmgren, Dobel, Kropuenske, Dwyer and Gongoll Members Absent: None Staff Present: Mike Mulrooney, Economic Development Consultantj Lori Johnson, Finance Directorj Tim Keane, City AttorneYj Pat Klaers, Executive Director 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 Chairman Tralle at 7:30 p.m. 2. Consider 9/10/90 EDA A~enda Chairman Tralle noted that agenda Item #8 will be moved.up and listed as #5.5 on the agenda. COMMISSIONER DOBEL MOVED TO APPROVE THE AGENDA AS AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 3. Consider 8/13/90 EDA Minutes Commissioner Gongoll noted the corrected spelling for Mike Mulrooney's partner Ed Tschida. COMMISSIONER DWYER MOVED TO APPROVE THE 8/13/90 EDA MINUTES AS AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4.1 Open Mike: Rob VanValkenbur~ AmericInn TIF Application Fee Mr. Rob VanValkenburg and Mike Leary, codevelopers of the AmericInn project, were present to discuss with the EDA the $5,000 application fee that was required for the TIF AmericInn project. The EDA reviewed the background information on this issue and a general discussion took place. Topics discussed included the policy of the City regarding TIF application fees and the understanding City staff gave the applicant for the AmericInn project regarding its application fee. COMMISSIONER SCHULDT MOVED TO PROVIDE A $4,000 TIF APPLICATION FEE REFUND TO THE DEVELOPERS OF THE AMERICINN PROJECT. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-1-1. Commissioner Dwyer voted against the motion because he felt a compromise along the order of a 50/50 split was appropriate. Commissioner Kropuenske Economic Development Authority Minutes September 10, 1990 Page 2 e abstained due to his employer (First National Bank) involvement with one of the developers. It was the consensus of the EDA that the City TIF application form be revised immediately. 5. Revolvin~ Loan Status 'l'he Finance Director and the Economic Development Consultant reviewed the status of the revolving loan program with the EDA. Lori Johnson, Finance Director, noted that in her 9/7/90 memo, it was stated that Mork had not made its August payment; however, this payment has been received with an explanation from Mork Clinic. It was noted by Mike Mulrooney, Economic Development Consultant, that no new loan agreements had been entered into since the last EDA meeting, but that new loans may very well be proposed wi thin the next month or two. The cash balance of the loan program as of 8/31/90 was approximately $95,000. 5.5 Jenne Site Proposal Submitted by Daniel Anderson e Mr. Dan Anderson, representing Irma Jenne, presented his proposal for the EDA purchase of the Jenne site. The Jenne site is commonly referred to as the hole in the ground, and is located in the Central Business District. The site became available following a 1988 fire. Mr. Anderson proposed that the EDA purchase this downtown site from Irma Jenne for $138,818. Economic Development Consultant Mike Mulrooney discussed the proposal with the EDA. He indicated that the site should not be purchased until the soil contamination issue has been resolved. Furthermore, the EDA must determine where appropriate funding will come for this purchase. Additionally, Mr. Mulrooney stressed that the EDA should have a plan in mind for the future of this area prior to any purchasing taking place. In this regard, Mr. Mulrooney indicated that a specific project need not be already approved by the EDA for this site, but that a very firm concept for this area should be agreed upon by the EDA. A general discussion by the EDA took place on the proposed site. A concern was expressed by the EDA over the proposed purchase price. It was noted that a purchase offer of approximately $109,000 had previously been made to Ms. Jenne for this property. Discussion took place regarding the environmental concern over the property. It was the consensus of the EDA that if the environmental issue was cleared up, then the EDA would seriously consider the purchase of this site provided that an appropriate price can be negotiated. 6. Economic Development Coordinator Job Description e The Executive Director reviewed with the EDA his memo, dated 9/6/90, where the job description and duties of the Coordinator were reviewed. The Executive Director noted that it was staff's opinion that the job description is adequate as completed; however clear direction must be given to the Coordinator in terms of the authority vested within the position. Economic Development Authority Minutes September 10, 1990 Page 3 It Commissioner Schuldt indicated his desire to have planning duties and expertise added to the job requirements. The EDA discussed the range of skills that are required for the next Economic Development Coordinator. These skills include marketing expertise, financial understanding of economic development, and a general knowledge of planning skills as related to the operation of City government. COMMISSIONER HOLMGREN MOVED TO ACCEPT AND APPROVE THE EXISTING ECONOMIC DEVELOPMENT COORDINATOR JOB DESCRIPTION AS PRESENTED. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 6-1. Commissioner Schuldt opposed due to his concern over the lack of planning skills being required within the job description. 7. Economic Development Coordinator Applicants Commissioner Schuldt indicated that he had to leave the meeting at this time due to travel required for his job. Commissioner Schuldt has to be in Albert Lea later this evening. Commissioner Schuldt indicated that his top two candidates were Mr. Abbey and Mr. Meyer. Commissioner Schuldt also volunteered for the interview committee if EDA members were needed. Commissioner Schuldt left the meeting at approximately 10:05 p.m. e Prior to reviewing the applicants, the EDA discussed the interview committee. The seven member EDA plus three staff members was viewed as being too large of a group for an effective interview. By consensus of the EDA, it was agreed upon that Commissioners Dwyer, Gongoll and Kropuenske would be on the interview committee as they have the most experience in conducting employment interviews. Additionally, Chairman Tralle would join these three EDA members on the interview committee if he was available. Furthermore, the Executive Director, Finance Director and EconOlllic Development Consultant should attend the interviews. Therefore, a seven member interview committee was agreed upon by the EDA. COMMISSIONER DOBEL MOVED TO HAVE THE ECONOMIC DEVELOPMENT COORDINATOR INTERVIEW COMMITTEE CONSIST OF COMMISSIONERS DWYER, GONGOLL, KROPUENSKE AND TRALLE; PLUS THE ECONOMIC DEVELOPMENT CONSULTANT, EXECUTIVE DIRECTOR AND FINANCE DIRECTOR. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 6-0. The EDA reviewed the 8 applicants that were selected for further consideration by the staff, Economic Development Consultant and certain EDA members. A frank discussion of these 8 applicants began when the City Attorney recommended that the tape recording of this meeting stop in order to allow a free exchange of ideas on the applicants without threat of lawsuit or violation of the Data Privacy Law. The Press was notified of the conditions upon being allowed to remain in the meeting. e COMMISSIONER KROPUENSKE MOVED TO STOP THE TAPE RECORDING OF THE EDA MEETING UNTIL AFTER THE FINAL CANDIDATES FOR INTERVIEWS FOR THE Economic Development Authority Minutes September 10, 1990 Page 4 e ECONOMIC DEVELOPMENT COORDINATOR HAVE BEEN DETERMINED. HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. COMMISSIONER All 8 candidates were reviewed by the EDA. By unanimous consensus it was determined that the interview committee would hold interviews with Mr. John Meyer, Mr. William Rubin, Mr. Kevin Maas and Ms. Carol Bordenkircher for the position of Economic Development Coordinator. By process of elimination and reviewing scheduling conflicts, it was determined that Wednesday, October 3, would be the appropriate date for conducting interviews for the Economic Development Coordinator position. Staff was instructed to set up interviews for 45 minutes each, beginning at 3:00 p.m. 9. Prospect Status Reports Mike Mulrooney, Economic Development Consultant, reviewed with the EDA his 9/7/90 memo where he outlined the status of four business prospects that have been discussing Elk River with him. Mr. Mulrooney indicated that Prospect #1 was not coming to Elk River due to a variety of circumstances outside the City's control. e Mr. Mulrooney indicated that Prospect #2 desires a Spring construction date and that the EDA may be asked to consider a maximum $50,000 revolving loan request. Mr. Mulrooney indicated that Prospect #3 has already received a proposal from the EDA. This proposal is under consideration by the company. This proposal included an approximately $30,000 offer from the EDA revolving loan fund. Mr. Mulrooney indicated that Prospect #4 was a recent contact and that he has only had preliminary discussions with this firm. More information will be provided to the EDA on this company in the future. 10. Le~islative Update Mr. Mulrooney briefly updated the EDA as to Federal Legislative proposals under consideration as outlined in his 9/7/90 memo. The two pieces of legislation discussed by the EDA and Mr. Mulrooney were the Rural Development bill and the Industrial Revenue Bond Extension. 11. Other Business e 11.1 Roma Tool Mr. Mulrooney updated the EDA on the current discussions with Roma and the City Auditor. Additional information will be provided by Roma to the City Audit firm. The Executive Director noted that a letter regarding this issue had been received from former Economic Development Coordinator, Dick Fursman. e e e Economic Development Authority Minutes September 10, 1990 Page 5 11.2 Executive Director Update It was noted that a request had been received to place an economic development ad in the St. Paul Pioneer Press. Due to the $1,000 cost of this ad, it was the consensus of the EDA not to place this ad but to review advertising opportunities in 1991. 11.3 Economic Development Consultant Update Mr. Mulrooney had no additional information to provide the EDA at this time. 12. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Elk River Economic Development Authority adjourned at approximately 11:00 p.m. R~~~' Patrick Klaers Executive Director