11-05-1990 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 5, 1990
MEMBERS PRESENT:
Chairman Tralle, Commissioners Kropuenske, Schuldt,
Holmgren, Gongoll, Dwyer, and Dobel (6:40)
MEMBERS ABSENT:
None
STAFF PRESENT:
Bill Rubin, Economic Development Coordinator; Mike
Mulrooney, Economic Development Consultant; Lori Johnson,
Finance Director; and Pat Klaers, Executive Director
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 6: 30
p.m.
2.
Consider 11/5/90 Economic Develop~ent Authority A~enda
COMMISSIONER KROPUENSKE MOVED TO ADOPT THE 11/5/90 ECONOMIC DEVELOPMENT
AGENDA. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
6-0.
3.
Consider 10/8/90 EDA Minutes
COMMISSIONER SCHULDT MOVED TO APPROVE THE 10/8/90 EDA MINUTES.
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Open Mike
There was no one present for this item.
5. 10/29/90 EDA Finance Committee Update
Bill Rubin, Economic Development Coordinator, updated the EDA on the
most recent Finance Committee meeting on 10/29/90. The major purpose
for this meeting was to hear a presentation from Mr. John Swon, of Swon
Marketing, Inc. Mr. Swon had requested consideration of a revolving
loan to his company. By unanimous consensus, the Finance Committee
rejected the request for a revolving loan for Swon Marketing, Inc.
Additionally, the Finance Committee reaffirmed the existing revolving
loan policy especially when taking into consideration the limited
amount of funds that are available. It was noted that the request from
Mr. Swon did not meet the revolving loan policy, as the company is not
located within the the City, nor would it relocate to Elk River and no
additional jobs would be created through a revolving loan being issued.
It was the consensus of the EDA to accept the decision by the Finance
Committee and additionally concur that the existing revolving loan
policy is appropriate for Elk River.
Elk River Economic Development Minutes
November 5, 1990
Page 2
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Commissioner Dobel arrived at this time.
6.
Prospects Report
Mike Mulrooney, Economic Development Consultant, reviewed
eight potential prospects that he and the City staff are
to encourage location or relocation within Elk River.
prospects are outlined in a 11/1/90 memo to the EDA.
wi th the EDA
working with
The eight
7. Jliscmssion on City Incubator Buildinl'! Proposal
Mr. Mulrooney discussed with the EDA his memo dated 11/1/90, that
relates to a City incubator facility. The memo and attached draft site
proposal showed a 30,000 square foot block building that included five
office/work areas. Based on current costs for land, construction, and
site landscaping, it is estimated that the facility could be built for
approximately $900,000 ($30 per square foot). Mr. Mulrooney stressed
the point that the proposal is only in the concept stage and that the
City should not move forward until it has firm commitments from
companies that are willing to locate in such a facility. In this
manner, the City would not be constructing a facility without any
revenue commitments.
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The EDA discussed the issue of whether or not an incubator facility
owned by the EDA would be a permanent home for companies and businesses
or whether the facility would simply be a three to five year temporary
home. Addi tional discussion took place on the minimum amount of
revenues needed through rent or leases in order to make a EDA owned
facility cash flow so that it would not be a financial loss.
It was noted that additional financial analysis needs to be done before
pursuing a project and that legal information needs to be obtained
regarding the EDA bond and debt responsibility for such a facility.
The EDA indicated its interest in pursuing this concept and having
addi tional discussions on the issue when and if firm commitments from
businesses and companies materialize.
8. Discussion on 1991 EDA Work Plan
Bill Rubin, Economic Development Coordinator, reviewed with the EDA his
November 1, 1990, memo on a 1991 Economic Development work plan. Mr.
Rubin stressed the need to develop priorities in order to appropriately
use the limited amount of revenues that are available for economic
development activities. It was noted that the incubator project
previously discussed and the reorganization of the EDA (discussed at
the October EDA meeting) should be added to the work plan.
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The EDA discussed the industrial exchange group that met initially in
early 1990. Commissioner Kropuenske indicated that he was involved in
this group and would like to see the project worked on further in
1991. lni tial response to developing a formal industrial exchange
group was positive and some of the benefits of having industrial
leaders within Elk River meet on a quarterly basis were reviewed. The
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Elk River Economic Development Minutes
November 5, 1990
Page 3
EDA requested that this issue be added to 1991 work plan. The EDA
indicated its support for the proposed 1991 work plan and further
indicated its desire to give the work plan additional discussion at an
upcoming meeting.
9.
Financial Update
Lori Johnson, Finance Director, reviewed with the EDA the financial
status of revenues and expenditures. This information is outlined in
the 11/2/90 memo to the EDA from the Finance Director.
COMMISSIONER HOLMGREN MOVED TO APPROVE THE TRANSFER OF $25,263.41 FROM
THE EDA TO THE CITY. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
10. Staff Updated
Pat Klaers, Executive Director, reviewed with the EDA the four items
listed in his 11/1/90 memo. These items included the status of the
revolving loan fund, an update on the environmental issues regarding
the Jenne site, a reminder about the 11/20/90 Chamber/EDA meeting and a
request for EDA members to provide the Coordinator with a civic leader
list of names for him to contact.
11. Other Business
Commissioner Holmgren requested that staff evaluate the fence at the
Jenne site as it relates to safety.
Commissioner Kropuenske discussed with the EDA its intent to purchase
the Jenne site for an appropriate price if the site is determined to be
environmentally safe. There was no clear consensus from the EDA on
this issue.
12. Adjournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN
THE EDA MEETING. COMMISSIONER DOBEL SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Elk River Economic Development Authority was adjourned at
approximately 7:55 p.m.
R~g~
Patrick D. Klaers
City Administrator