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06-10-1991 EDA MIN e e e ',. .. " MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT ELK RIVER CITY HALL MONDAY, JUNE 10, 1991 MEMBERS PRESENT: President Gongoll, Commissioners Tralle, Schuldt, Dietz, Kropuenske, and Dwyer MEMBERS ABSENT: Commissioner Holmgren STAFF PRESENT: William Rubin, Economic Development Coordinator; Patrick Klaers, City Administrator; Sandy Thackeray, City Clerk 1. Call Meetin~ to Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 7:00 p.m. by President Gongoll. 2. Consider 6/10/91 A~enda .. President Gongoll indicated that "Open Mike" would be moved to item 6.5. PRESIDENT GONGOLL MOVED TO APPROVE THE AGENDA AS AMENDED. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider 5/13/91 Minutes COMMISSIONER DIETZ MOVED TO APPROVE THE 5/13/91 EDA MINUTES. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 5. Financial Update Bill Rubin reviewed the monthly statement of the Revolving Loan Fund prepared by the Finance Director. He indicated that the balance of the Revolving Loan Fund is $142,297.21. 6. Elk Terrace Apartment Project Mr. Bradley Larson of Metcalf and Larson Attorney's at Law, Monticello, Minnesota, indicated he is working on a project financed by the Farmers Home Administration. Mr. Larson indicated that the project consists of independent living senior housing which is proposed to be located along Holt Avenue and Fourth Street. He further stated that the EDA Commissioners have discussed this senior housing project at a previous EDA meeting. Mr. Larson stated that there is definitely a need for this type of housing in Elk River. Mr. Larson further indicated that this particular project requires that the community be a rural community and have a population of less than 10,000. He stated that he applied for the project through MFHA prior to the release of the 1990 census figures. "',." ..; . , I', ,', ,'. ..... EDA Minutes June 10, 1991 Page 2 e Mr. Larson requested Tax Increment Financing assistance from the EDA for the project for land wri tedown costs and site preparation costs. He stated that there are two homes on the proposed site which must be removed and that the site must be prepared for the project. He stated that his company is willing to pay the appraised valuation of the site as if the site were clean and ready to build. Bill Rubin, Economic Development Coordinator, indicated that TIF assistance may be possible, however, the numbers must be reviewed by staff and the EDA to ensure that TIF assistance for this project will not create a shortfall of state aid funding for the City. Bill Rubin further suggested that while reviewing the level of assistance, it would be best for the City to also have the property appraised by an appraiser. COMMISSIONER KROPUENSKE MOVED TO AUTHORIZE STAFF TO PROCEED WITH ANALYSIS OF THE PROPOSED FARMERS HOME ADMINISTRATION PROJECT FOR ELK TERRACE INCLUDING THE AUTHORIZATION TO HIRE AN APPRAISER IF DETERMINED NECESSARY BY CITY STAFF. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 6-0. 4. Open Mike e Doris Anderson was present as a representative of Caldwell Banker for David Barnier. Ms. Anderson stated that Mr. Barnier has indicated his intention to purchase property in downtown Elk River for the purpose of locating a restaurant with off-street parking. She indicated that he has signed a purchase agreement for 817 Main Street and is also considering to follow that purchase agreement with the purchase of the adjacent property at 823 Main Street. She indicated that Mr. Barnier is requesting some type of financial participation from the City of Elk River. She further indicated that although Mr. Barnier has not written a letter of intent, he did want to make the EDA aware of his plans and the fact that he will be requesting financial assistance. Commissioner Dwyer suggested that Mr. Barnier submit a letter of intent stating exactly what type of assistance he would require. It was the consensus of the EDA to work wi th the proposal, however, that staff not spend any money on the proposal at this time. e Marilyn VanPatten was present and indicated that she was representing two clients who were interested in purchasing the Standard station at 308 Jackson Place. She stated that her clients had indicated that they would be willing to purchase the station and sell it to the City of Elk River if the City is interested. She further indicated that the Bank of Elk River is also considering purchasing this property. Her client's ability to acquire the property is believed to be less than what the Bank of Elk River is paying for the Station. Commissioner Kropuenske stated that he felt there was no advantage for the City to buy this site if the Bank of Elk River is interested in purchasing this site. It was the consensus of the EDA that no action EDA Minutes June 10, 1991 Page 3 e be taken and that the Ci ty would not be interested in purchasing this property at this time. 7. Approve Articles and Format of Summer Newsletter Bill Rubin indicated that he has prepared draft articles for the summer EDA newsletter edition for the EDA' s review. The EDA reviewed the draft articles and offered a few suggestions for the Economic Development Coordinator. COMMISSIONER KROPUENSKE MOVED TO APPROVE THE ARTICLES FOR THE EDA NEWSLETTER. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8.1 Accept Deed Conveyinli{ Ti tie from the City to the EDA for the Jenne Site Bill Rubin explained that Irma Jenne has accepted the City's offer to acquire her property on Main Street. He stated that staff is now moving ahead with a closing which would allow the City to acquire the property. He indicated that it is the City's intent to acquire the property and immediately convey title to the Economic Development Authority. Therefore, it is necessary for the Commissioners to accept the deed conveying title from the City to the EDA. e COMMISSIONER SCHULDT MOVED TO APPROVE THE DEED CONVEYING TITLE FROM THE CITY OF ELK RIVER TO THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Marketinli{ Brochure Update Bill Rubin updated the Economic Development Authority on the Marketing Brochure. He indicated that he is continuing to work with Cindi Edwards-Plant and that she has prepared a second prototype of a brochure. Bill Rubin distributed a copy of this prototype for the EDA's review. 10. Prospect Report The Prospect Report was reviewed by the EDA. 11. Executive Director Update Pat Klaers, Executive Director, indicated that City staff will be following up on the direction previously received from the EDA regarding the marketing of the Jenne site. 11.1 Industrial Park Proposal e Pat Klaers, Executive Director, indicated that the Elk River Associated Investors remain interested in having the City purchase the remaining lots in the Elk River Industrial Park. Pat Klaers indicated that the Elk River Investors have made an offer to the City which staff EDA Minutes June 10, 1991 Page 4 e considers as being a very good offer. He stated that the City does have enough money to purchase the remaining parcels of the Elk River Industrial Park in 1991. He indicated that the $260,000 needed for the proposed purchase would come from different funds. He further indicated that it is anticipated that once the property is purchased, the money will eventually go back into the funds as the property is sold. Pat Klaers also indicated that another reason the City is interested in purchasing this property is because the large triangular shaped lot is planned to be connected to school property for park purposes. He also indicated that the Elk River Industrial Park is one of the few remaining sites of eight acres or more with municipal utilities that is available in Elk River for industrial purposes. Pat Klaers indicated that the EDA should consider whether or not they are interested in purchasing the Industrial Park and marketing it. Discussion was held by the EDA regarding the appropriateness of the EDA to act as a landholder and developer. It was the consensus of the EDA that it was appropriate to proceed with the purchase of the Elk River Industrial Park. It was also noted that the Elk River Associated Investors group have stated that they would be interested in staying acti ve and that they would consider reorganizing as a nonprofit local development corporation. e COMMISSIONER KROPUENSKE MOVED TO RECOMMEND THAT THE CITY COUNCIL PROCEED TO ACQUIRE AN APPRAISAL AND SOIL ANALYSIS FOR THE ELK RIVER INDUSTRIAL PARK AND TO PROCEED WITH THE PURCHASE OF THE PROPERTY. Commissioner Dietz indicated his concern regarding the City spending money for this purpose during these tight economic times. He questioned the benefits for the City and whether or not the City's marketing strategies would change once they owned the property. He further expressed his concern regarding the depletion of City reserves for the purchase of this property. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 6-0. 12. Adjournment There being no further business, COMMISSIONER TRALLE MOVED TO ADJOURN THE MEETING. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Economic Development Authority adjourned at 8:50 p.m. e Respectfully submitted, () ~c? Sandra A. Thackeray City Clerk