05-13-1991 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 13, 1991
Members Present:
President Gongoll, Commissioners Kropuenske, Dietz,
Dwyer and Holmgren
Members Absent:
Commissioners Tralle and Schuldt
Staff Present:
Pat KIaers, City Administrator; Bill Rubin, Economic
Development Coordinator; Sandra Thackeray, City Clerk
1. CaI] Meet irUL.To Orrter
Pursuant to due call and noti ce thereof, the meeting of the Elk River
Economic Development Aut.hority was called to order at 7:00 p.m. by
President Gongall.
2. Consider 5/1~/91 EDA A~enda
COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 5/13/91 EDA AGENDA.
COMMISSIONER DI~TZ SECONDED THE MOTION. THE MOTION CARRIED 5-0.
3.
Q9nsider 4/8/91 EDA Minutes
COMMISSIONER DWYER MOVED TO APPROVE
COMMISSIONER HOLMGREN SECONDED THE MOTION.
THE 4/8/91 EDA MINUTES.
THE MOTION CARRIED 5-0.
4. 011Pn Mi k~
Commissioner Dwyer expressed his desire t.o see the City Hall relocate
at the .Ienne site. He stated t.hat the Ci t.y is working hard to do
80nH~thing positive with the Jenne site and felt that the opportunity
was right to locate City Hall at that. site because of the City's
present need to expand and relocatf~. He stat.ed that the City has a
chance t.o keep t.he downtown viable and hopes that the City Council will
take this into comdderation when making a decision t.o relocate Cit.y
Ha 11.
5. f.Jnancial Updfl;.t.e
Bill Ruhin reviewed with the EDA the Revolving Loan Fund status t.hrough
May 8. He stat.ed that all loans are current wit.h t.he exception of Roma
Tool ami thlit t.he Revol vi ng Loan Fund has a cash balance of
I1pproximately $143,700. He furt.her indicated that the Statement of
Expenses pl1yable shows payment dlle t.o t.he City in t.he amount of
$9,l("lO.14.
COMMISSIONER HOLMGREN MOVED TO APPROVE PAYMENT TO THE CITY OF ELK RIVER
TN THE AMOUNT OF $9, J 90.14. COMMTSSIONER DIETZ SECONDED THE MOTION.
THE MOTlON CARRTKO 5-0.
E(:onomic Development Aut.hority Minut.es
May 13, 1991
Page 2
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6.
COT!.sid~LJ:on_trad, for Bro(:hure Project
Rill Ruhin reviewerl the contract for the hrochure project which was
rlrHfb:~rl hy the City's Attorney with t.he EDA. He indicateo that the
(:ontract is wi th CEP Art &. Desi gn ann stated that the staff has
rp(:ommendpc1 that 5,000 hrochures and 2,500 pnvelopes be printed at. this
1i mR .
COMMISSIONER KROPUENSKE MOVED TO APPROVE THE CONTRACT WITH CEP ART &.
DESIGN AND THAT CEP BE PAID 1/3 OF THE PRICE OUTLINED IN SECTION 3 AT
THTS TIME. c;OMMTSSTONER HOLMGREN SECONDED THE MOTTON. THE MOTTON
c;l\RRJED 1)-0.
7.
Qonsioer Contrllets With Minnesota HOllSin!! Fin~l!nce A~enc'y
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Rill Ruhin explained that the EDA aut.horized an application to the
Minnesota Housing Fimmce Agen(:y for the Minnesota City Partidpation
Program at its last meet.ing. He st.at.ed that. the agency received 37
rpquests totalling in excess of $95,000,000 in mortgage revenup honos.
He stat.eo that t.he agen(:y hy law is authorized to issue only
$39,002,000 in mortgage revenue honds. Bill Rubin indicated that the
C1 ty of Elk Ri ver and its EDA has been awarded $796,446 in mortgage
revpnue bonds. He i nd icated that in order to participa.te in the
program the Cit.y must sign two contracts; the Allotment Agreement and
the Program Application Commitment Agreement.
Bi] 1 Rubin pxplaineo that the Agency has increased the qualifying
in(:omp limits from an adjusted gross income of S24,OOO to $26,000. He
also furthpr pxplained that the Agency does allow participating cities
to adjust the maximum purr-hase pricp of the homes. Bill Rubin
pxp] rd ned that the Agency's maxi mum purchase price of Sherburne County
homes is $n(~,OOO and thp Elk Hivpr a.pplication reflects a maximum
pln'tehasp pri ce of $75,000. He st.ated that staff is suggesting that the
maximum pur(:hase pricp he increaRen from $75,000 to $78,000 dollars.
At thiR time, only First National Mortgage indir-atpd an interpst in
participating in fhp program.
COMMTSSIONER DIETZ MOVED TO APPROVE THE ALLOTMENT AGRF.EMENT AND THE
PROGRAM APPLICATTON COMMITMENT AGREEMENT FOR THE MTNNESQ1'A HOUSING
FTNANc;E AGENCY AND TO DESIGNATE FIRST NATIONAL MORTGAGE AS THE
NRTTc;TPATTNG LENDER OF THE PROGRAM AND TO An.TUST THE MAXIMUM PURCHASE
PRTc;fl: TO $7A, 000 ANn TO AUTHORJZF. A 1% DEPOSIT FEE WITH THE
APPLICATTON. c;OMMTSSIONF.R HOLMGREN SECONDED THE MOTION. THE MOTTON
CAmPED 5-0.
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ru sq!.~'LS .J pnp!:_..!'iite ACllJljB i tiPJ.!
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Ri 11 Ruhin reviewed the background of the .Jenne site acquisition. He
inclkated that thp City had submitteo a Purr-ha.se Agreement to Ms. Jenne
in thp amount, of $109,540 on March 25. He indicated that Ms. .Jenne has
nnt. Ilcr-epted HIP Purchase Agrepment ami her Attorney Ruhmitteo a Jetter
to thp c;ity Attornpy regarding her conr-erns. Bill Rubin explained that
hpf' concprns are wi t.h IlSSf'ssments on thp property ann the envi ronmpntaJ
WHrTanties in the Pnrchasp Agr>eement. Bill Rubin indicated that Ms.
Economic Development Authority Minutes
May 13, 1991
Page 3
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.lenne is unwilling to give any warranties concerning the environmental
issue on the property and further that she does not wish to pay the
special assessments on the property ami is requesting the City to pay
the assessments.
Commissioner Gongoll stated that the request to purchase the .Jenne site
has gone on longer than necessary but. feels t.hat an extension to the
end of May woulrl bt:> reasonable.
Pat Klaers stat.ed that. he did not anticipate any environmental problems
on the site but thi s is a risk the Ci ty does not want to take. He
fllrther stated that. it. is usually the seller who absorbs the cost of
special assessments. Commissioner Gongol] questioned whether the City
would be willing to offer an inducement for the special assessments in
order to keep the project rolling.
Commissioner Holmgr'en expressed his concern regarding the safety issue
and suggested that the area be fenced. He further staten that the Cit.y
has ot.her options to consider if Ms. .Jenne does not accept. this
proposal. He indicat,ed that one of the options would be condemnation.
Comm i ss i oners Dwyer and Kropuenske both i nd i cated that they fe It. the
price the City has offered is reasonable.
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COMMTSSTONF.R HOLMGRF.N MOVED TO RECOMMEND TO THE CITY COUNCIL THAT THE
ORIGINAL OFFER BY THE CITY 1'0 MS. .JENNE BE EXTENDED TO MAY 31, 199],
ANn IF THE OFFER IS NOT ACCEPTED AT THAT TIME THEN THE CITY COUNCIL
SHOULD LOOK AT OTHER OPTIONS WHICH MAY CONSIST OF CONDEMNATION,
RENEGOTIATION OR WITHDRAWING SAID OFFER COMMISSIONER DIETZ SECONDED THE
MOTION. THE MOTION CARRIED 5-0.
9.
D i_~~IJ~fi_..P1'9.B.Q~QLRE'.J..f1' r a I Fo rma t
Hi 11 Rubin indicated that this item was on the agenda because it was
request.ed by Commissioner Dietz. He stat.ed that the topic relate~ to a
process by which prospects are referred to prospective sellers or
landlords. Commi ssioner Di et.z explained that he had contacted the
Economic Development Coordinator with the name of a prospect and in
t.lli s process a real estat.e agent. became upset because the agent felt
that City staff should have went t.hrollgh the real estate agency.
Bi]l Rubin explained that City staff does attempt to contact the
listing agents for prospects when it is clear that there is a listing
agent. He indicat.ed that when it is not clear that. an agent is
re[lresenti ng 11 prospective sel ler or landlord, t.hen the staff would
make a referral directly to the landlord or seller.
After di scnssion regarding t.his item, it was the consensus of the EDA
to continue to follow staff's present policy.
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1 0 .~{)rIS i der Topi rs for SW'1mer News let tel'
",:.----_i:.':::-.,y>:'-.,/--,-':-~:~/',
Bill Rubin informed the EDA t.hat. thE\;>'~6rihg-'h~wslett~;fo";lfiis~;,(g,~i1";nfat~'~
out and requested t.he EDA to consider articles to be printed in the
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Economic Development Authority Minutes
May 13, 1991
Page 4
summer newsletter. Bill suggested articles such as financing tools,
industry highlights, recreation open spaces and housing options.
11.
proRp(>ctJl~J20rt
The Economic Development Authority discussed the Prospect Status Report
which was sent under separate cover.
12. }i;xef':utive Diredor lIpgate
No ~lsiness under this item.
13. Other Busjpess
The Ci ty Admini strator informed the EDA that he has been in contact
with the Associated Invest.ors regarding the Ci t.y' s purchase of t.he
Industri a1 Park. The City Admini strator further indicated that the
Investors group has made an offer that. he feels the City should
consider. Commj ssioner Holmgren suggested t.hat. Bi] 1 Rubin visit with
the County Assessor's Office regarding t.he purchase of the Industrial
Park to determine if the property would be designated as tax exempt.
It waR the consensus of the EDA t.o pursue options regarding the City's
ptlrchast~ of the Elk River Industrial Park.
1 4 . Adfu1!F..B_ment
There heing no further husiness, COMMISSION HOLMGREN MOVED TO AD.JOURN
THE MEE'J'TNG. COMMISSIONER DWYER SECONDED THE MOTtoN. THE MOTION
r.AHRTFD 5-0.
Thp mepting of the Elk River Economic Development Authority adjourned at.
8:09 p.m.
Resppctftllly submitted,
y/J~ ~J~-7
Sandra Thackeray
City Clerk