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08-12-1991 EDA MIN e e e MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 12, 1991 Members Present: President Gongoll, Commissioners Dietz, Kropuenske, Holmgren, Tralle, Dwyer and Schuldt Members Absent: None Staff Present: Lori Johnson, Finance Director; Bill Rubin, Economic Development Coordinator; Sandra 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 8/12/91 EDA A~enda COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 8/12/91 EDA AGENDA WITH THE ADDITION OF ITEM 12.1, MINNESOTA CITY PARTICIPATION PROGRAM. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 3. Consider 7/8/91 EDA Minutes COMMISSIONER HOLMGREN MOVED TO APPROVE THE 7/8/91 EDA MINUTES. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. Open Mike No one appeared for this item. 5. Financial Update Lori Johnson, Finance Director, reviewed the Revolving Loan Fund Statement. She stated that the fund has a cash balance of $157,804.55 as of July 31, 1991. Lori Johnson also reviewed the Statement of Expenses Payable through the period ending August 8. She imformed the EDA that the total expenses payable for this period amount to $10,025.95. Lori Johnson further explained that because of a refund in the amount of $7,964.64 received from the Minnesota Housing and Financing Agency, the total expenses payable i.s reduced to $2,061. 49. She further indicated that as of the end of July, the EDA has a cash balance of just over $41,000. Lori Johnson informed the EDA that the Legislature reduced state aid payments for the year payable in 1991 which will result in approximately $1,287 less in revenu~s than anticipated. COMMISSIONER TRALLE MOVED TO APPROVE THE STATEMENT OF EXPENSES PAYABLE TO THE CITY OF ELK RIVER IN THE AMOUNT OF $2,061.49. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. Economic Development Authority Minutes August 12, 1991 Page 2 e 6. Finalize Marketin~ Brochure and Authorize Printin~ Bill Rubin, Economic Development Coordinator, presented the final layout of the Marketing Brochure which included photographs that had been selected for use in the brochure. The EDA reviewed the Marketing Brochure and the photographs. It was the conclusion of the EDA that the brochure was ready for printing with the exception of the photo of the students in School District 728. It was indicated that a different school photo should be included in the brochure. COMMISSIONER KROPUENSKE MOVED TO APPROVE THE MARKETING BROCHURE FINAL LAYOUT AND THE PHOTOGRAPHS AND TO AUTHORIZE PRINTING OF THE BROCHURE CONTINGENT UPON STAFF'S REVIEW. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. COMMISSIONER HOLMGREN MOVED TO AUTHORIZE PAYMENT TO CEP ART & DESIGN OF 1/3 OF THE DRAW DOWN. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7. Review TIF Policy Revisions e Bill Rubin explained that the reVISIons made by the EDAat their last meeting have been incorporated in the TIF policy. He further indicated that the HRA reviewed the policy at its meeting and had no changes to add to the TIF policy. COMMISSIONER HOLMGREN MOVED TO ADOPT THE TAX INCREMENT FINANCING POLICY FOR THE CITY OF ELK RIVER WITH THE PROPOSED CHANGES. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Update on EDA Main Street Site Bill Rubin distributed a flyer that was sent to local developers for marketing purposes of the EDA Main Street Site. 9. Discuss Financing City Hall/Police Station Bill Rubin, Economic Development Coordinator, explained that staff has reviewed a method of financing the City Hall/Police Station which would require the EDA's participation. He indicated that the EDA can construct and own a facility and lease it to the City. He explained that if the EDA financed the construction of the facility, revenue bonds would be issued by the EDA and lease payments from the City would be used to retire the bonds. tit Discussion was held regarding this method of financing for the City Hall/Police Station. Lori Johnson indicated that by using this method, the City's obligation under the lease/purchase agreement would not constitute debt under any statutory provision. After. further discussion, it was the- consensus of the EDA that this financing arrangement would be agreeable to the EDA. It was further the consensus of the EDA to authorize staff to prepare a resolution to be presented at the next EDA meeting in September, showing the support of the EDA in this financing method. Economic Development Authority Minutes August 12, 1991 Page 3 e 10. Consider 1992 Bud~et and Levy Lori Johnson, Finance Director, indicated that the proposed 1992 EDA Budget is based on a maximum levy of $66,200. Bill Rubin reviewed the breakdown of the budget. Commissioner Dietz indicated he felt it would be advisable to consider terminating the monthly services with Advance, and possibly work with Advance on an hourly fee. He indicated that due to the 1992 budget constraints and the fact that the City has an Economic Development Coordinator on staff, the services of Advance are not used as frequently as in the past. Bill Rubin explained that Mike Mulrooney's major role in economic development at the present time is in relation to financial analysis. Council member Kropuenske indicated he felt that the retainer for Mike Mulrooney could possibly be dropped. Commissioner Dwyer indicated he felt that the EDA should consider Advance's hourly rate and the number of billable hours for the past two years before making any decision. President Gongoll suggested that the questions raised by the EDA be explored by staff and that staff provide more information at an upcoming meeting so that the EDA can have the information to reevaluate Advance's contract. e COMMISSIONER KROPUENSKE MOVED TO ADOPT RESOLUTION 91-1, A RESOLUTION AUTHORIZING THE EDA TO LEVY TO FUND THE AUTHORITY'S ANTICIPATED BUDGET NEEDS FOR 1992 WITH THE STIPULATION THAT THE LEVY LIMIT IN THE RESOLUTION WILL ACT AS BOTH THE PROPOSED AND FINAL LEVY LIMIT FOR 1992. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. COMMISSIONER SCHULDT MOVED TO APPROVE THE PROPOSED 1992 EDA BUDGET IN THE AMOUNT OF $66,200. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 11. Prospect Report Bill Rubin reviewed the Prospect RepoI't which was sent to EDA members under separate cover. 12.1.Minnesota City Participation Pro~ram Bill Rubin indicated that the EDA is a participant of the Minnesota Housing Finance Agency mortgage program. He stated that through the program there has been approximately $800,000 reserved for first time homebuyers. Bill Rubin indicated that at the time the EDA joined the program, there was only one local lender participating in the program. He indicated that another lender named Executronhas requested to participate in the program. e It was the consensus of the EDA to not allow Executron to participate in the Minnesota Housing Finance Agency mortgage program at this time. e e e Economic Development Authority Minutes August 12, 1991 Page 4 13. Adjournment There being no further business, COMMISSIONER SCHULDT MOVED TO ADJOURN THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Elk River Economic Development Authority adjourned at 8:10 p.m. ;7~1~ Sandra Thackeray City Clerk