04-08-1991 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 8, 1991
~IeIllLt~ t'S Pn;sen t:
President Gongoll, Commissioners Dwyer, Dietz,
Kropuenske, Tralle and Holmgren
Members Absent:
None
Staff Present:
Pat Klaers, Executive Director; Bill Rubin, Economic
Development Coordinator
1 . Cd 1 ~h~et ing: To Order
Pursuant to due calJ and notice thereof, the meeting of the Elk River
EcolJom i c Davel opmt?n t Allthori ty was called to order by President Gangall
211 7: 00 1).01.
2. (;ollsider 4/8/91 EDA Agenda
llelll 9.1, Depart.ment of Tt'ade and Economic Development ProSpl~ct, was
added to the agenda.
COMMISSIONER SCHULDT MOVED TO APPROVE THE 4/8/91 EDA AGENDA AS
AMENDED. COMMISSIONER TRALLE SECONDED THE MOTION. THE ~IOTION CARRIED
;-0.
~. C..llsidel' 3/11/91 FDA Minult's
COMMISSIONER TRALLF MOVED TO APPROVE THE 3/11/91 MINUTES AS PRESENTED.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
1, Open M i Lt~
Executivl" Direclor Pat Klaers indicated that Carol Mills of the
Guardian Angels Foundation would be providing the EDA with an overview
of i:l Department of Housing and Urban Development (HUD) application for
an upcoming Gual'Clian Angels project. This would be done later in the
FDA meeU ng.
5. FinancIal tJndate
Bill Rubin informed the FDA that there was an ending balance in the
Revolvhlg Loan Fund of approximately $139,000 as of 3/31/91. All loans
wel'e current with Uw exception of Roma Tool and Plastics.
The EDA Commissioners also reviewed a Statement of Expenses payable for
expenses incurred in 1990 that has not been reimbursed to the City of
Elk Rivet'. The amount due the City is $5,431.90.
Economic Development Authority Minutes
April 8, 1991
Page 2
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EDA Commissioners also reviewed the Balance Sheet for the period ending
December 31, 1990. There is a cash balance of $30,801. 46 and a fund
balance of $25,510.35. The Authority had total revenues in 1990 of
$58,977.87 and expendi tures of $64,040.36 due to high consulting fees
during the transition period between Economic Development Coordinators.
COMMISSIONER HOLMGREN MOVED TO APPROVE THE EDA EXPENSES PAYABLE TO THE
CITY OF ELK RIVER IN THE AMOUNT OF $5,431.90. COMMISSIONER DWYER
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
6. Review Marketin~ Brochure Layout
At this time the EDA Commissioners reviewed a rough brochure layout
that had been presented to City staff earlier in the day by CEP Art &
Design. The EDA Marketing Committee had met with Cindi Edwards-Plant
of CEP Art & Design at a morning meeting prior to the EDA meeting of
Apr i I 8. Suggested changes to the layout included the slogan on the
front page as well as the logo that appears throughout the brochure.
Commissioner Dietz suggested that information on senior housing
availability in Elk River be included somewhere in the brochure.
President Gongoll suggested that one of the photos used in the brochure
be that of the United Power Association Headquarters Building.
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CEP Art & Design is currently bidding the job with four printers. Once
that dollar figure is known, a contract will be presented to the EDA
for approval. Commissioner Kropuenske suggested that this be done
prior to a City Council meeting if it is convenient so as to expedite
the project. He stated that later in the meeting, the. EDA will be
considering a proposal to a Department of Trade and Economic
Development Prospect. While the brochure will not be available for the
proposal, the EDA and City does not wish to miss other opportunities to
use the brochure.
4.
Continuation of Open Mike - Carol Mills/Executive Director Guardian
An~els Foundation of Elk River
At this time Carol Mills provided the EDA with an overview of the
Guardian Angels Foundation 1990 and 1991 strategic plan. The Board of
Directors authorized the following plan:
*Market analysis for strategic planning
*Market analysis for congregate housing for the elderly
*Rental survey of Guardian Angel Foundation's waiting list
*Application to Farmers Home Administration for 60 units of
congregate housing for the elderly
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The results of this work plan indicated that there was a market demand
for congregate housing. The study of the waiting list confirmed the
market analysis, and an application for 60 units of congregate housing
was submitted to Farmers Home Administration, but Farmers Home
established a moratorium of a 24 unit limit for elderly housing.
Guardian Angels Board of Directors voted to decline the 24 units and
explored a larger project through the Department of Housing and Urban
Economic Dt'v\~lopm~!nt Authority Minutes
April 8, 1991
Page 3
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Dt:~velopnllmt. FollowiJ\~ several meet ings with HUD, it is Guardian
Angels Foundation's illLt~nt to suhmit. all application for subsidized
elil\~cly IJullsing UJHk'l' the HUD 202 program. The application will he
t'lliillll,d.t.d Hllll ;->ulilllilll'd willtill eight. h('eks 1.0 llIet~L tlH~ 1991 funding
eyel,'. Ms. IIlills indit:itll~d LJlid. ,I l'ustdlllioll of support of thl! project
may he I'eqnired fl'om the EDA or City COllncil. EDA CODlIllissioners
illdjcaLI~d their' SIIPPOl't for the project.. No other assistance was
t'elItIt'sted at this time by Ms. MiUs. She agreed to keep t.he F.DA
j II fOI'lllf'd tiS 10 t hl~ pl'ogress U f the app] ieation.
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Participation in a 1>Ill1nesota HIlIlsine: Finance Ae;ency Mortgage Proe;r'am
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Bi ~ 1 Ruhin r'evi\~w\~d a program known as the !lOnnesota City Participation
Program with the EDA Commissioner's. Under this progr'l:lm, a city has the
abi lity to reser've a lIloetgage pool ranging ill size frolD $250,000 to
$-+,000,000 that can be Ilsed for first tillle hOllle buyers. This item had
1"'~~1i d i scu s~wd by t.he City CCHlne i] at its Apri 1 1 lIIeeti ng and had been
refeered to tbe Ecollomic Development Authodt~1 for consideration and
action. As wi th other first time home buyer programs, this program is
suhjl~ct to El IIlf1xilllllm PlIf'chase price as well flS qualifying buyer
ill(:lllllt'S. Tlw city Of' its sponsoring agl~ncy is also required to submit
a dt'i"lsiL fee f'llual to 1% of its requested allocation. The JepLlsit fee
i." 1<"rItIHh~d 111'011 the sille of mortgilgl~ revenue bonds by the Minnesol.a
Bonsing Finance Agency. Commissioner' Tf'alle felt that this program was
a ~(lod idea, pad.iudady jf Elk Rivp!' was gcdng to attracl young
falllili\~s to the C01ll1ll11l11ty.
COMMTSSTONER HOLMGREN MOVED TO SUBMIT AN APPLICATION UNDER THE
MINNESOTA PARTICIPATION PROGRAM IN AN AMOUNT NOT TO EXCEED $1,500,000.
CO~jMISS1ONER Tiil\LLE SECmmED THE MOTION. THE MOTION CARRIED 6-0.
uJiilmissioner hropuenske abstained from voting stating that he did so
Lec(luse as a potential lender, he bad encouraged staff to 1'eviel1 and
research this program.
8. :\Ial'1.t:L1ng 0.gtions for Jenne Site
At this time Executive Director Pat Klaers reviel1ed potential changes
in tb:~ Purchase Agreemen t by and between the City of Elk River and Irma
JCllIlC. The seller had raised issues regarding environmental problems
UIl tlte ~)ite and had relluesLed an excepLioll to this language in the
Purchase Agreement- regarding this matter. The seller also requested
t1lat the outstanding special assessments be paid by the EDA over and
abuh~ the statE.>d Purchase Agreement. It was the consensus of t.he EDA
l.u!limissiOlwrs to direct staff to maJ,e appropriate revisions to the
Purchase Agreement- regarding the environmental issue based on City
Attoi<ney advise. No revisions hOh.ever hill be made to the pa~'ment of
outstanding special assessments by the EDA. This 110uld be the
i'eslJoiisibili ty oi the seller.
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At this time EDA Commissioners reviel1ed the marketing outline presented
by Bill l{UlJIlJ. Staff suggested that folloHing the April 15 public
hearing regarding amendments tl) the HF Plan on this matter, staff
Hotdd market the 8i te locally to real. estate developers and agents
giving them one last opportunity to devel.op the site. Staff, however,
Economic Development Authority Minutes
Avril 8, 1991
Page 4
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f't~(l'lPsted direction regarding a potential resale price. Commissioner
Tra]]e suggested that an appraisal done by the EDA two years ago
illdiC'al(~d a value of $75,000. If a real estate agent was involved,
L1wy woul d cOlllmand ] 0% of LlJl~ Illlt"chase pl'i CI~. Commissioner' Krupuenske
S'lss(;sl,~d hOl"(~VI'I', 1lJi\.L if t.he siLe was going to ue writ.ten down below
$ 7:,,000, then 'he bt'ukeragp. fee be t.he greater of a floor of $7,500 or
lO~;' (,f t.he PIII'Chase pl'ici~. Pr'l'sjdent C,ollgoll suggest.l~d t.hat. ret.ail
should he the first priority for the IIse on t.he site followed by office
i[!Hi b(el'vic!' l,,'Lili~d compani(~s. HOI.Jl!ver, staff should be given certain
fh',ihility I'egal'(lillg tht~ reuse of tlw property. Commissioner Dwyer
slIsgeslpd Lhat I'atller than IT;)' Lo lJ/'ior-i Ii ze the reuse, the f.D.;\ and
riiy sJlllllld COl\c('lllrate on achieving th2 best possible project. for the
sjb~ iturl that the EDA and City should [,("COllp their cost in the
jJl'oject. This cOlll;] be accomplished with the flexibility of using
adejj ti ollal tax incremen t expendi tures into the property. Commissioner
Eropuenske indicated that. the Elk River Downtown Development
(orpol'atioll and t\'iO of [he three comliiunity lenders had met on April 2.
The lenders agreed to consider creati Vf~ f inane ing that may be channeled
llJJ'(lugli the' Develul'llwlIl Coq)()j'i1Lj('1l aud LllPII on (u all end USIJj'. All
pinUes however agl't'~pd that in order lu make the sit.e viable, it \~ullld
taLe the cuol'pJ'i11 hili uf the Ci ty, 111c, Deve 11l11111tellt Curpora Liun and
lenders. The City and EDA's role in this would be to consider
ilddi Lional TIF ('\l'l'IIlJi tlln~s inLo the prujecl.
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8.
Pt'('Sppct Epport
The Prospect Report that. was sent under separate cover was reviewed by
the EDA CO~Dissioners.
9.1 Department of Trade and Economic Development Prospect
At this time BiU Rubin explained that he had received a prospect from
Uk Department of Trade and Economic Development. (DIED). The prospect
is all inslIrance company currently located out of Minnesota that is
set:!<"ing to e:sLabl1:::;1I a claim processing center somewhere in Minnesota,
lI'i~)c()nsin or Tennessee. Cities wishing to submit a proposal to the
DIED are l'equired to do so by April 15, 1991. Bill Rubin requested
that Cindi Edward~-Plant of CEP Art & Design assist him with the final
layout of an 8 to 10 page proposal. It h;,tS the consenSllS or the EDA
("diiloissi"lh-TSt.O incur' Ihis e\:penditure.
i o. t\'-Q1Li ve D iLt.d:!!!~!la L~
No disl'lIssjon under' lllis itteili Luul, place.
11. AJ.,L:2-ll ~~!t!!U'_D_t
Tlwre beillg no furLher business, CO~lmSSIONER HOLMGREN MOVED TO ADJOURN
THE 1vIEETING. COMMISSIONER DIETZ SECONDED THE MOTION. THE ~fOTION
CAR.RTED 7-0.
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Economic Devt>.lopmeut Authol'i ty Minlltes
April 8, 1991
Pa::{t~ ~J
The meeting of the Elk River Economic Development Authority adjourned at
8:5() p.m.
Respectfully sllhmi tted,
. .
~~u~
Economic Development Coordinator