09-09-1991 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 9, 1991
Members Present:
President Gongoll, Commissioners Schuldt, Holmgren,
Tralle, Dietz, Kropuenske and Dwyer(7:06p.m.)
Members Absent:
None
Staff Present:
Pat Klaers, Executive Director; Bill Rubin, Economic
Development Coordinator; Lori Johnson, Finance Director;
Sandy Thackeray, City Clerk; Phil Hals, Street/Park
Superintendent
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 by President Gongoll
at 7:05 p.m.
2.
Consider 9/9/91 EDA A~enda
COMMISSIONER HOLMGREN MOVED TO APPROVE THE 9/9/91 EDA AGENDA AS
PRESENTED. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
3.
Consider 8/12/91 EDA Minutes
COMMISSIONER SCHULDT MOVED TO APPROVE THE 8/12/91 EDA MINUTES AS
PRESENTED. COMMI SS lONER SCHULDT SECONDED THE MOTION. THE MOT I ON
CARRIED 6-0.
Commissioner Dwyer arrived at this time (7:06 p.m.).
4. Open Mike
Phil Hals, Street/Park Superintendent, updated the Economic Development
Authori ty on areas of the City where high water from the recent heavy
rains have created some problems. He indicated that the area west of
Twin Lakes Road on 5th Avenue and the Westwood area are two of the main
problem areas. He indicated that he would like to rent a pump to pump
the water past the Westwood Addition from Meadowvale Road into the lake
to speed up the dewatering of the area.
Phil Hals indicated that he would like to work with the County to
install a second culvert under Twin Lakes Road for future drainage of
that area. Phil Hals further indicated that a flow control device has
been installed in a culvert near 5th Avenue and Twin i Lakes Road. He
stated the flow control device does not allow rapid flow of the water,
especially with the amount of rainfall the City recently experienced.
Phil Hals requested permission to remove the flow control device to
Economic Development Authority Minutes
September 9, 1991
Page 2
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allow drainage of the water. It was the consensus of the City Council
that the device be removed.
5. Financial Update
Bill Rubin indicated that all loans are current and that further
information will be sent to the EDA at a later date.
6. City Hall and Law Enforcement Facility Project
6.1. Accept Transfer of Land from the City of Elk River
Lori Johnson indicated that the City Council recently voted to
transfer land from the City to the EDA so that a lease/purchase
agreement may be made between the City and the 'EDA for the new
City Hall and Law Enforcement Facility.
COMMISSIONER KROPUENSKE MOVED TO ACCEPT THE TRANSFER OF LAND FROM
THE CITY OF ELK RIVER TO THE ECONOMIC DEVELOPMENT AUTHORITY.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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Lori Johnson indicated that the City staff has reviewed the lease
agreement. Lori Johnson answered questions regarding the lease
agreement. President Gongoll requested periodic updates during
construction.
COMMISSIONER HOLMGREN MOVED TO APPROVE THE LEASE/PURCHASE
AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY
OF ELK RIVER. COMMISSIONER TRALLE SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
Rusty Fifield of Springsted, Inc., reviewed the recommendations
for the sale of $2,740,000 in Public Project Revenue Bonds for the
Ci ty Hall project. Rusty Fifield explained that the bonds being
issued by the EDA will allow the City to enter into a
lease/purchase agreement with the EDA. Payments made by the City
under the. lease/purchase agreement will be sufficient to pay
principal and interest on the bonds. Rusty proceeded to identify
the six revenue sources that are expected to be used to make the
lease/purchase payments to the EDA.
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Commissioner Holmgren questioned the risk of using funds from NSP,
the Landfill and Liquor Store reserves. He indicated that there
could be a time when money in these funds is not available. Rusty
explained that if this were to happen, the City has the option of
falling back on taxes through a special levy. Pat Klaers also
indicated that the City does have other options in which to pay
for the lease and Lori Johnson indicated that the City was very
conservative in the numbers projected in the lease/purchase
agreement.
Rusty Fifield suggest that the EDA consider the sale of the bonds
for the City Hall/Police Station construction so as to avoid other
Economic Development Authority Minutes
September 9, 1991
Page 3
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competing bond issues occuring before and immediately following
Columbus Day (October 14).
COMMISSIONER TRALLE MOVED TO HOLD THE OCTOBER ECONOMIC DEVELOPMENT
AUTHORITY MEETING ON OCTOBER 17, 1991, 7:00 P.M. AT THE ELK RIVER
CITY HALL TO CONSIDER REGULARLY SCHEDULED AGENDA ITEMS AND TO
CONSIDER THE AWARD OF THE PUBLIC PROJECT REVENUE BONDS.
COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED
7-0.
COMMISSIONER KROPUENSKE MOVED TO ADOPT RESOLUTION 91-2, A
RESOLUTION RELATING TO APPROXIMATELY $2,750,000 CITY HALL AND LAW
ENFORCEMENT FACILITY FINANCING DETERMINING THE NECESSITY THEREFORE
AND AUTHORIZING CERTAIN PROCEEDINGS THEREFORE. COMMISSIONER
TRALLE SECONDED THE MOTION. THE MOTION CARRIED 7-0.
7.
Consider Economic Develonment Consultant Retainer
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Pat Klaers, Executive Director, indicated that the EDA had previously
raised questions regarding the ongoing $500 monthly retainer with
Advance Resources. The Executive Director indicated that staff is
requesting to continue with some revisions made to the retainer
contract. He stated that he felt the City can benefit through a
retainer contract in terms of ensuring that Advance Services will be
available to work on City projects. He further indicated that he would
rather see a consultant involved in issues from the beginning of the
issue. The Executive Director suggested reducing the retainer contract
to 4 hours per month.
Commissioner Kropuenske indicated that with the existing staff
expertise in the economic development area, he does not feel the
necessi ty to pay for a consultant to attend the bi -monthly consultant
meetings. Commissioner Dietz indicated that he feels the Economic
Development Consultant should be used on an hourly basis. He further
indicated that he does not feel it is necessary to pay for the
consultant on a retainer basis.
President Gongoll indicated that the benefits of using the Economic
Development Consultant on a retainer basis pointed out by Pat Klaers
were valid. He indicated that the City's Consultant has expertise in
certain areas and feels that to use the Economic Development Consultant
on an hourly basis is shortsighted. He indicated that the City needs
the retainer for a comfort level and feels that the retainer fee is
reasonable.
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Commissioner Dwyer indicated that any deal in which the EDA is involved
will require financial structuring and indicated that financing is one
of Mike Mulrooney's strong points and further indicated that he felt
Mike Mulrooney should be used on a continual basis. Commissioner
Holmgren indicated, however, that there are two members of the EDA that
have banking and financial expertise.
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Economic Development Authority Minutes
September 9, 1991
Page 4
COMMISSIONER DIETZ MOVED TO RETAIN MIKE MULROONEY ON AN HOURLY BASIS AT
$85.00 PER HOUR FOR A TWELVE MONTH PERIOD AND TO REVIEW THE SITUATION
IN ONE YEAR. COMMISSIONER HOLMGREN SECONDED THE MOTION.
Commissioner Tralle indicated that it is best for the City to keep the
interest level of Mike Mulrooney up. He indicated that he felt the
Ci ty needs Mulrooney's expertise. He further indicated that he feels
it would be to the City's long term advantage to keep Mike Mulrooney on
a retainer basis rather than on an hourly basis.
THE MOTION CARRIED 4-3.
opposed.
Commissioners Dwyer, Tralle and Gongoll
8. Consider Topics for Fall Newsletter
The Economic Development Authority discussed potential articles for the
fall newsletter. Bill Rubin suggested articles on the EDA Main Street
si te, the Industrial Park Project, Industry Highlight to be Elk River
Machine, Housing Options and Business Briefs. Suggestions from the EDA
included Proctor Improvement Project, featuring a smaller business, the
Business Expo and an Industry Representatives on the Chamber Board.
9.
Prospect Report
Bill Rubin reviewed the Prospect Report which was sent under separate
cover.
10.
Other Business
Commissioner Dietz questioned what the City's plans were for securing
development Block A. The Executive Director indicated that the City
Engineer and Street Superintendent are working on that issue.
11. Executive Director Update
No information was presented.
12. Adjournment
There being no further business, COMMISSIONER DWYER MOVED TO ADJOURN
THE MEETING. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at
8:56 p.m.
Respectfully submitted,
0f~
Sandy Thackeray
City Clerk