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03-11-1991 EDA MIN e e tit MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MARCH 11, 1991 MEMBERS PRESENT: Chairman Gongoll, Commissioners Dwyer, Dietz, Kropuenske, Tralle and Holmgren MEMBERS ABSENT: None STAFF PRESENT: Pat Klaers, Executive Director; Tim Keane, City Attorney; Bill Rubin, Economic Development Coordinator; Mike Mulrooney, Economic Development Consultant; Sandy Thackeray, City Clerk ALSO PRESENT: Rod McArdle of the EDA Marketing Committee 1. Call meetin~ to order Pursuant to due call and notice thereof, the meeting of the EDA was called to order by Chairman Gongoll at 7:00 p.m. 2. Consider March 11. 1991. EDA A~enda Items 11.2 - Citizens League and 11.3 - 2001 Conference were added to the agenda. COMMISSIONER HOLMGREN MOVED TO APPROVE THE 3/11/91 EDA AGENDA AS AMENDED. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 3. Consider 2/11/91 EDA Minutes COMMISSIONER TRALLE MOVED TO APPROVE THE 2/11/91 EDA MINUTES AS PRESENTED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. Open Mike No one appeared before the Council for this item. 5. Financial Update Bill Rubin informed the EDA that there is an ending balance in the revolving loan fund of $128,733 as of February 28, 1991. He further stated that all accounts are current with the exception of Roma Tool. 6. Update on Jenne Site Acquisition Bill Rubin informed the EDA that the public hearing to consider the amendments to TIF Plans #1 and #3 has been set for April 15, 1991. Bill Rubin discussed the issue of ownership of the Jenne site. He indicated that the first tax increment districts were set up and are Economic Development Authority Minutes March 11, 1991 Page 2 e controlled by the Council. Because TIF Plans No. 1 and No. 3 are proposed for modification to allow for the acquisition of the Jenne site, it is likely that the City Council, rather than the EDA would be acquiring the site. Pat Klaers stated that the purchase agreement should be between the City and Ms. Jenne. He indicated that once this is accomplished, the ti tle could be transferred to the EDA. He indicated that the EDA should have control of the property because they will be the entity marketing the property. 7. Marketin~ options on Jenne site The Executive Director indicated that the EDA should be considering uses it would prefer to see on the Jenne site. e Bill Rubin discussed marketing options with the EDA. He offered several options which consisted of a Request for Proposals (RFP's), the EDA marketing the site, or having a real estate broker market the site. The EDA felt that if a real estate broker were involved, the EDA must establish a commission fee. Commissioners Gongoll and Dwyer felt that there may be local people interested in marketing the site and that this avenue should be tried before contacting a real estate or brokerage firm. The EDA discussed possible incentives that could be offered for the si te. Commissioner Tralle indicated that the main priority should be to develop the site and that the City should try to get the most property tax out of the property. He suggested offering a sliding scale as an incentive which would be dependent on the amount of dollars put into the development. Commissioner Holmgren indicated he felt that the EDA should first see who is interested in the site before offering incentives. Tim Keane suggested that the City put in writing what it wants to accomplish with the property. He also suggested that the EDA try local marketing for a short time and if this doesn't work then market on a larger basis. Commissioner Dwyer felt that the EDA should have an idea of what the property will be sold for so that developers have something to work with. He indicated that he agreed with the sliding scale concept. Bill Rubin informed the EDA that these items will be discussed in more detail at the next EDA meeting. 8. Desi~nate A~ency of Record for Mark~tin~ Brochure Project e Bill Rubin indicated that he has contacted four agencies in regard to putting together a City brochure. He indicated that three of the four agencies were interviewed. He recommended the selection of CEP Art and Design, which is a local company. Economic Development Authority Minutes March 11. 1991 Page 3 e COMMISSIONER KROPUENSKE MOVED TO ACCEPT STAFF RECOMMENDATION OF HIRING CEP ART AND DESIGN OF ELK RIVER TO DESIGN THE MARKETING BROCHURE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. Commission Tralle did not vote as he stepped away from the table and was in conversation outside of the conference room with Boy Scouts. 9. Potential EDA Assistance on Multiple Family Project Bill Rubin informed the EDA that he had met with a representative of Metcalf & Larson Attorneys at Law regarding the development of an elderly apartment complex in Elk River. Metcalf and Larson is considering a 24 unit complex which would be financed through Farmers Home Administration. They are interested in one si te in particular. The site is located along Holt Avenue between Third and Fourth Streets. Mr. Rubin informed the EDA that there may be a request for the use of Tax increment financing. This would be a redevelopment project at this site. The EDA discussed the need in the community for this type of use. It was the consensus of the EDA to encourage the project. 10. Prospect Report e The prospect report was sent under separate cover. The prospect report contained 7 previously listed prospects and 6 new prospects. Also listed in the prospect report was information on Roma Tool & Plastics regarding the delinquent loan. The Executive Director informed the EDA that the Roma loan delinquency was a City Council issue because the City Council accepted the conditions of the loan in 1986. He informed the EDA that a closed meeting of the City Council will be held to discuss this situation. 11.I.Attorney Opinion re~ardin~ EDA Powers Bill Rubin explained to the EDA that he received an oplnlon from the City's Attorney regarding the question of whether or not the EDA can build. own and lease an industrial building. Time Keane explained it was his opinion that State law does not authorize an EDA to undertake this type of activity. Chairman Gongoll indicated that he felt the EDA should be able to take some part in this type of activity. Tim Keane felt that the EDA may be able to participate in a limited partnership. Chairman Gongoll indicated he would like to pursue all ways to make a project like a "spec" building or an "incubator" building work. Mike Mulrooney suggested that the HRA could be the developer with the EDA as a limited partnership. 11.2.Citizen's Lea~ue e Di~cussion was held regarding the Citizen's League of Elk River. Chairman Gongol! indicated that he would like the EDA to participate with the Citizen's League in regards to analyzing downtown development. 11.3.2001 Conference - e . Economic Development Authority Minutes March 11, 1991 Page 4 The EDA discussed the fact that the 2001 Conference was scheduled for March 16, 1991. 12. Executive Director Update No discussion under this item took place. 13. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Economic Development Authority adjourned at 8:55 p.m. J~t:1'- /' Sandra Thackeray City Clerk