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02-11-1991 EDA MIN . e e ~. . <I .: . ',.. '" I ,'.';. MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, FEBRUARY 11, 1991 MEMBERS PRESENT: Chairman Gongoll, Commissioners Tralle, Schuldt, Holmgren and Dietz MEMBERS ABSENT: Commissioner Kropuenske (out of town on vacation), and Commissioner Dwyer (Father's funeral) STAFF PRESENT: Pat Klaers, City Administrator; Bill Rubin, Economic Development Coordinator; Mike Mulrooney, Economic Development Consultant; Lori Johnson, Finance Director; Tim Keane, City Attorney; Sandra Thackeray, City Clerk 1. Call meetin~ to order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 7:00 p.m. by Chairman Gongoll. 2. Consider 2/11/91 EDA a~enda The following items were added to the agenda by Chairman Gongoll: Item 11.3 - Industrial Council and 11.4 - Creamery Site COMMISSIONER TRALLE MOVED TO APPROVE THE 2/11/91 EDA AGENDA AS AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider 1/14/91 EDA minutes COMMISSIONER TRALLE MOVED TO APPROVE THE 1/14/91 EDA MINUTES. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Open Mike No one appeared for this item. 5. Financial update Finance Director Lori Johnson reviewed the revolving loan fund cash flow statement with the EDA. The revolving loan fund has an approximate balance of $120,000 and all loan payments are current except for Roma Tool and Plastics. 6. Update on EDA offer to purchase Jenne site Bill Rubin indicated that on February 6, 1991, Irma Jenne signed a letter of acknowledgement regarding the City's intent to purchase her EDA Minutes February 11, 1991 Page 2 e property for $109,540. He further indicated that it will take approximately 90 days for the City to close on the property. Pat Klaers discussed certain options the City must consider when marketing the property. He indicated that this will be on the next EDA agenda for consideration. The Executive Director informed the EDA that the cost to fill the underground tank located on the Cinema building property owned by Rob VanValkenburg is estimated at $500. He further indicated that the cost for environmental testing that will not be covered by State funding is $1,305. The City Administrator indicated that he had informed Mr. VanValkenburg that he would request the EDA to consider paying one half of the $1,305. Mr. VanValkenburg has requested that the City also pay half of the $500. COMMISSIONER HOLMGREN MOVED TO AUTHORIZE PAYMENT OF ONE HALF OF $1,805, TOTALLING $902.50 TO ROB VANVALKENBURG WHICH EQUALS THE BALANCE OF ONE HALF OF THE MONEY NOT PAID BY THE GRANT PLUS ONE HALF OF THE $500 FOR FILLING THE TANK, WITH THE UNDERSTANDING THAT IF THERE IS A FUTURE TIF PROJECT, THESE EXPENSES PAID BY THE CITY MAY BE RECOVERED. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Finalize Committee Composition and Assi~nments e Chairman Gongoll indicated that he has sent letters to all economic development committee members informing them of the structure change to the committees and requesting a response as to whether they would be interested in serving on the marketing committee. He indicated that he did not receive an overwhelming response, but that he would continue to contact these people plus a few other people he was considering. Chairman Gongoll requested the other EDA members to contact people they feel would be of value to the EDA marketing committee. 8. Committee for brochure project Discussion was held regarding the make up of a brochure committee. It was the consensus of the EDA that the brochure committee would consist of staff, EDA Consultant, Chamber and committee member representatives. 9. EDA opportunities for Industrial Park Bill Rubin informed the EDA that he, the Mayor, and City Administrator met with representatives of the Elk River Associated Investors per the Investor's group request. Bill indicated that the Investors have requested that the City consider taking over the balance of the Industrial Park. . Mayor Tralle stated the EDA should consider whether it is appropriate for the the Elk River EDA to have property ownership with the intent of selling the property for development, and to also consider the advantages and disadvantages. Commissioner Holmgren questioned what the City would do differently if it were to purchase the property than it is already doing. Commissioner Schuldt indicated that the EDA EDA Minutes February 11, 1991 Page 3 e would be in competition with the developers in the City if it purchased the property. Discussion was held regarding the shortage of tenants in the Industrial Park. Commissioner Holmgren stated that he was uncertain if the EDA should consider purchasing a distressed parcel of property at market value. The EDA discussed the reason the Investors Group wanted to sell the Industrial Park to the City. Mike Mulrooney indicated that the Group probably feels that they have done their part and that it was done as a civic duty to help out the community; and now that the City has taken the lead in economic development with the formation of an Economic Development Authority, the Group feels it would be in the City's best interest to purchase the property. Commissioner Holmgren indicated that he did not think it was appropriate to make a decision at this time because of the absence of the two EDA members. It was the consensus of the EDA to discuss the EDA's intent to purchase the Industrial Park at the March meeting. 10. Prospect Report e Bill Rubin reviewed the Prospect Status Report, which was sent under separate cover. The Prospect Status Report reviewed 8 prospects. 11.1.Economic Development Newsletter Format The EDA reviewed the draft copy of the first EDA newsletter. Some suggestions were made by members of the EDA. Bill Rubin indicated that he would consider the suggestions, make some changes to the newsletter and submit another draft by mail to the EDA for review. He requested that the EDA contact him with any other suggestions. 11.2.Mork Clinic Update The Executive Director indicated that the EDA agreed to reimburse the developer of Mork Clinic up to $40,000 for site clearance and site preparation. He stated that the actual cost was $17,000 which was reimbursed to the developer. Mr. Klaers stated that the City has received a request from TIMCa Management, Inc., requesting the City to pay additional redevelopment and site preparation expenses. Some possible reimbursement items are: Engineering and Soil Testing Tree Removal and Site Grading Parking Lot Paving Parking Lot Lighting Landscaping Sidewalks & Curbs $ 4,750 $ 6,500 $16,448 $ 8,000 $13,170 $11,500 e The EDA discussed the cost breakdown and determined that the only appropriate cost was for tree removal and site grading. . e e EDA Minutes February 11, 1991 Page 4 COMMISSIONER TRALLE MOVED TO PAY $6,500 FOR TREE REMOVAL AND SITE GRADING TO THE DEVELOPER, UPON SUBMITTAL OF THE CONTRACTOR'S DOCUMENTATION OF THE WORK COMPLETED. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 4-1. COMMISSIONER HOLMGREN OPPOSED. 11.3.Industrial Council Chairman Gongoll advised the EDA that the Industrial Council would be meeting on February 12. He asked if the Industrial Council and the Industrial Exchange were the same group. Bill Rubin explained that they were the same and that the Industrial Council would be finalizing its name and mission at the February 12 meeting. 11.4.CreamerY Site Chairman Gongoll questioned what will happen to the creamery site once the building is removed. The Executive Director explained that the Ci ty owns the property and at the present there are no plans for the property. 12. Adjournment There being no further business, COMMISSIONER TRALLE MOVED TO ADJOURN THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The ~eting of the 9f1A-../?- Sandra Thackeray City Clerk EDA adjourned at 8:50 p.m.