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01-14-1991 EDA MIN e e e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JANUARY 14, 1991 Members Present: Chairman Tralle, Commissioners Dietz, Holmgren, Schuldt, Gongoll, Kropuenske and Dwyer Staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic Development Coordinator; John Lichter, Environmental Consultant; Tim Keane, City Attorney; Mike Mulrooney, Economic Development Consultant; Sandy Thackeray, City Clerk 1. Call Meetin~ To Qpder Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order by Chairman Tralle at 7:00 p.m. 2. Confirmation and Reco~nition of New Commi~~ioners Chairman Tralle acknowledged and welcomed the new Economic Development Authority Commissioner, John Dietz. 3. Consider 1/14/91 EDA A~enda Item 15.2, HRA Meeting Discussion, was added to the agenda. COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 1/14/91 EDA AGENDA AS AMENDED. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. QQns tdeL12L1J2L9'<LJID-A211l:mtes COMMISSIONER DIETZ MOVED TO APPROVE THE 12/10/90 EDA MINUTES AS SUBMITTED. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 7-0. 5. Open Mike No one appeared for this item. 6. Financial Up_dat~ The Executive Director reviewed the Revolving Loan Fund status. He indicated that all the loan payments are current with the exception of Roma Tool. He further indicated that the projected ending cash balance of the Revolving Loan Fund is approximately $119,000 and that the EDA can anticipate payments of slightly over $65,000 in 1991. . e . " .!,".f Economic Development Authority Minutes January 14, 1991 Page 2 The Executive Director indicated that in addition to the funds in the Revolving Loan Fund, the EDA has a December 31, 1990 cash balance of $30,801. 46. 7. Election of Officers CHAIRMAN TRALLE MOVED TO NOMINATE AND ELECT THE FOLLOWING OFFICERS. JEFF GONGOLL - PRESIDENT PAT DWYER - VICE PRESIDENT DUANE KROPUENSKE - TREASURER GENE SCHULDT - SECRETARY ROGER HOLMGREN - ASST. TREASURER COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 7-0. Commissioner Tralle stepped down from the position of Chairman at this time and the position was filled by Jeff Gongoll. 8. Appointment 'of Executive Director COMMISSIONER DWYER MOVED TO APPOINT PAT KLAERS AS EXECUTIVE DIRECTOR OF THE EDA. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 9. Approval of Official News~per COMMISSIONER KROPUENSKE MOVED TO APPROVE THE ELK RIVER STAR NEWS AS THE OFFICIAL NEWSPAPER FOR THE EDA IN 1991. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 10. Discussion of By-laws and Su~~ested Chan~es It was the consensus of the EDA to make no changes to the by-laws at this time, but to make the necessary changes as needed in the future. 11. Committee Assi~nments Bill Rubin stated that in May of 1989, the EDA reduced the Economic Development Authority committees to two consisting of the Finance and the Strategic Planning and Development committees. Chairman Gongoll stated that it would be marketing committee as marketing is one of discussed in 1991. appropriate to form a the main issues to be Discussion was held regarding the previously formed Strategic Planning Commi ttee and the duties of that committee. The Executive Director indicated that the main purposes of the Strategic Planning Committee were the Star City work and to give presentations to clients interested in moving their businesses to Elk River. Discussion continued regarding whether or not a Strategic Planning Committee was necessary. e e . Economic Development Authority Minutes January 14, 1991 Page 3 COMMISSION KROPUENSKE MOVED TO RESTRUCTURE THE COMMITTEE ORGANIZATION OF THE EDA INTO THE FOLLOWING COMMITTEES: FINANCE COMMITTEE, CHANGE THE STRATEGIC PLANNING COMMITTEE TO RESEARCH AND DEVELOPMENT, AND ADD A MARKETING COMMITTEE. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTTON CARRIED 7-0. The Executive Director indicated that all former EDA Commission members would be contacted to see whether they would be interested in serving on a committee. He further indicated that all former members of the Strategic Planning Committee would be contacted by letter, informing them that the Strategic Planning Committee no longer exists and requesting whether they would desire to serve on another committee. Chai rman Gongoll indicated that he would like CommIttee members or representatives to attend as many or all EDA meetings as possible. He further requested that all Committee members receive copies of EDA agendas and minutes. 12. Jenne Site This item was delayed until later in the meeting. 13. Prospect Report Bill Rubin, Economic Development Coordinator, reviewed the Prospect Status Report which was sent under separate cover to the EDA. This Prospect Report contained information regarding five companies and their interest in Elk River. 14. Staff Update - M~rketin~ Activities Bill Rubin indicated that he is in the process of drafting articles for the EDA Newsletter. He stated that he is anticipating that the newsletter will go out on a quarterly basis and that the market will be directed toward developers and real estate agents. 15.1 pe~ig~nate Committee for New City Brochure Bi 11 Rubin questioned whether the Economic Development Authority would consider appointing members of a committee whose primary responsibility would be developing a City fact book or marketing brochure. After discussion, it was the consensus of the EDA to bring this item back to the February meeting after sending letters to Committee prospective members. Economic Development Authority Minutes January 14, 1991 Page 4 e 15.2 HRA Meetin~ Discussion Commissioner Schuldt stated that the HRA met and discussion was held regarding the use of HRA funds. He indicated that HRA funds can be used for the demolition of the old creamery and stated that there was a possi bil ity that the HRA could play a role in the development of certain sites within the City of Elk River. Commissioner Holmgren stated that he would like to see the HRA use the money to purchase blighted homes. The EDA Committee recessed at 8:10 and reconvened at 8:23. 12. Jenne Site e John Lichter, City Environmental Consultant, stated that after testing the Jenne site property, it was concluded that there is contamination on the property. He stated that the contamination came from a tank located under the Cinema Professional building. Mr. Lichter stated that the water that was tested exceeded the allowable limit for drinking water. Because the water is not used for drinking water, he approached the State and informed them that it would be very costly to pump and treat this water for no benefit. He indicated that MPCA was in agreement with his conclusion that no action is required on this site other than to remove or fill the tank. Mr. Lichter indicated that a petro fund application is being prepared which would reimburse the City 90% of the costs for work on this issue. Rob VanValkenburg, owner of the Cinema Professional Building, stated that he would appreciate the City paying the remaining 10% of the testing costs. He indicated that a case could possibly be made regarding exactly where the contamination came from and further stated that the cost of filling the tank will be about $1,000, which he will have to incur. The EDA discussed the counter-offer made by Dan Anderson, representing Irma Jenne, for the Jenne property. It was indicated by Commissioner Tralle that the Jenne property was valued by White Dove at $112,400 and that the same property was valued at $75,000 by Shenohan and Associates. Commissioner Kropuenske indicated that the City's original offer of $109,540 was a realistic offer. Chairman Gongoll stated that he agreed with Commissioner Kropuenske in that the original offer of $109,450 is still a fair offer. City Attorney, Tim Keane, indicated that the contamination issue will affect some of the buyers and that it could reduce the number of potential purchasers. e Commissioner Holmgren stated that neither appraisal shows 1989 or 1990 sales for comparison. He indicated that the Assessor's Office has increased all commercial values on Main Street by 5%. He indicated that he felt it would be fair to add an additional 5% to the City's offer. e e e Economic Development Authority Minutes January 14, 1991 Page 5 Commissioner Dietz stated that the City is taking a risk on purchasing the property and that the risk factor must be considered. Dan Anderson, representing Irma Jenne, indicated that the consumer price index has risen within the last two years and felt that there should be an inflationary factor added to the price the City is offering. CO~~IISSIONER HOLMGREN MOVED TO SUBMIT THE EDA'S FINAL OFFER OF $109,540 TO MS. JENNE FOR HER PROPERTY ON MAIN STREET WITH THE REALIZATION THAT THE OFFER WILL REMAIN UNTIL MARCH 1, 1991. COMMISSIONER TRALLE SECONDED THE MOTION. Dan Anderson questioned whether the City would consider picking up the downtown assessments for the property. Commissioner Tralle stated that the City should not pay for the assessments. THE MOTION CARRIED 7-0. Counselor Tim Keane stated that if the EDA uses the money from TIF Districts 1 and 3 to purchase the property, these districts must be amended to permit the use of the funds for the acquisition and preparation of the redevelopment site. 16. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Elk River Economic Development Authority adjourned at 9:37 p.m. Respectfully submitted, :/~~ a'~7 Sandra A. Thackeray City Clerk .