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10-17-1991 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL THURSDAY, OCTOBER 17, 1991 Members Present: President Gongoll, Commissioners Schuldt, Holmgren, Tralle, Dietz, Kropuenske and Dwyer Members Absent: None Staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic Development Coordinator; Lori Johnson, Finance Director; Sandra Thackeray, City Clerk 1. Call Meetin~ To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order by President Gongoll at 7:35 p.m. 2. Consider 10/17/91 Economic Development Authority A~enda COMMISSIONER HOLMGREN MOVED TO APPROVE THE 10/17/91 EDA AGENDA. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 7-0. 3. Consider 9/9/91 Economic Development Authority Minutes The following corrections were made to the EDA minutes: 1.) Page 1, Dobel was changed to Dietz 2.) Page 4, $35.00 was changed to $85.00 3.) Page 4, "hole in the ground" changed to EDA Main Street Site COMMISSIONER TRALLE MOVED TO APPROVE THE 9/9/91 EDA MINUTES AS CORRECTED. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 7-0. 4. Open Mike No one appeared for this item. 5. Financial Update Finance Director, Lori Johnson, explained that the Revolving Loan Fund has a cash balance of $169,781. She stated that as of September 30, all loan payments are current. 6. Consider Bid Award/City Hall and Law Enforcement Facili tv Revenue Bond Series 1991 Rusty Fifield, Springsted Incorporated, and Sherrill Oman, Bond Counsel from Larkin, Hoffman, were in attendance. Rusty Fifield indicated that the EDA received three bids on the bond sale. He stated that the low bidder was Edward D. .Jones & Company with a net interest cost of Economic Development Authority Minutes October 17, 1991 Page 2 . 6.6352%. Sherrill Oman of Larkin, Hoffman, answered questions on the bond resolution. She indicated that a motion approving the resolution would also award the bid to the low bidder. COMMISSIONER KROPUENSKE MOVED TO ADOPT EDA RESOLUTION 91-3, A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER (THE AUTHORITY) AUTHORIZING THE ISSUANCE OF $2,740,000 CITY HALL AND LAW ENFORCEMENT FACILITY REVENUE BONDS (CITY OF ELK RIVER LEASE PURCHASE OBLIGATION) SERIES 1991 (THE BONDS), WHICH BONDS AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM THE REVENUES DERIVED FROM THE LEASE PURCHASE AGREEMENT; AWARDING THE SALE OF THE BONDS; PRESCRIBING THE FORM OF AND AUTHORIZING THE EXECUTION OF THE BONDS AND DIRECTING THE AUTHENTICATION AND DELIVERY THEREOF; PRESCRIBING THE FORMS OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A LEASE PURCHASE AGREEMENT BY AND BETWEEN THE CITY OF ELK RIVER, MINNESOTA (THE CITY), AND THE AUTHORITY, AND A COMBINATION MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OR RENTS AND FIXTURE FINANCING STATEMENT (THE MORTGAGE) TO FIRST TRUST NATIONAL ASSOCIATION (THE TRUSTEE); AUTHORIZING AND APPROVING THE FORM OF THE OFFICIAL STATEMENT; AND PROVIDING FOR THE SECURITY, RIGHTS, AND REMEDIES OF THE HOLDERS OF THE BONDS. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. A copy of this resolution is included with these minutes. . Discussion was held by the EDA regarding the Mayor and Finance Director's rating presentation to Moody's. Rusty Fifield indicated that although everything went exceptionally well with the presentation at Moody's, Elk River's bond rating did not change from Baa-1. Mayor Tralle thanked Rusty Fifield for guiding them through the process of meeting with Moody's in New York. 7. Discuss Proposed City EDA ACQuisition of the Industrial Park Executive Director, Pat Klaers, indicated that the City Council passed a motion authorizing the City to purchase the Elk River Industrial Park. He indicated that the City will be the actual purchaser when the transaction takes place, but ti tle wi II be conveyed to the EDA for marketing and disposal of the sites. 8. Update and Discussion on EDA Main Street Site Bill Rubin indicated that at this time there were no firm prospects regarding the development of the EDA Main Street site. He indicated that staff is seeking EDA direction as to marketing of the property and its disposal. . Discussion was held regarding the Citizen's League studying the downtown area. President Gongoll stated that he felt a member of the EDA or staff should be a representative of that group and further requested that the Citizen's League keep the EDA informed of any progress. Commissioner Dietz questioned what the City could do next to try to market the Main Street site. President Gongoll suggested putting . . . Economic Development Authority Minutes October 17, 1991 Page 3 together a committee to look at possibilities for the property. It was .also suggested that a sign advertising the property be posted. 9. Consider 1992 EDA Budl!et Item Adjustment Executive Director, Pat Klaers, indicated that because of the 1992 shortfall in the City's budget, the City Council has discussed the idea of the EDA assuming more of the Economic Development Coordinator's salary. He indicated that at a City Council budget workshop, it was the consensus of the Council to recommend to the EDA that it absorb $8,400 from the 1992 EDA Budget for the Economic Development Coordinator's salary. COMMISSIONER DIETZ MOVED TO APPROVE A 1992 BUDGET ADJUSTMENT IN THE AMOUNT OF $8,400 WHICH WILL BE USED AS A SALARY REIMBURSEMENT FOR THE COORDINATOR POSITION. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. 10. Consider ReQuest by JR Tech Automotive for a Revolvine: Loan Bill Rubin, Economic Development Coordinator, indicated that the Finance Committee met to consider a $42,000 Revolving Loan Fund request from JR Tech Automotive. He indicated that it was the recommendation of the Finance Committee to deny the loan request. The EDA reviewed the request and the decision made by the Finance Committee. Bill Rubin explained that the Finance Committee denied the request based on the total cost and the limited amount of equity provided by the owner. The EDA concurred with the Finance Committee. COMMISSIONER TRALLE MOVED TO DENY THE REQUEST FOR A REVOLVING LOAN FUND IN THE AMOUNT OF $42,000 FROM JR TECH AUTOMOTIVE BASED ON THE RECOMMENDATION FROM THE FINANCE COMMITTEE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0-1. Commissioner Dwyer abstained due to his involvement in the financing at the Bank of Elk River. 11. Prosnect Report Bill Rubin reviewed the Prospect Report which was distributed to the EDA under separate cover. 12. Other Business There was no other business. 13. Staff Undate Bill Rubin indicated that the November 11 EDA meeting is a holiday. It was the consensus of the EDA that no meeting be planned, however, if something came up, a meeting could be scheduled. 14. Adjournment . . . Economic Development Authority Minutes October 17, 1991 Page 4 There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Elk River Economic Development Authority adjourned at 8:30 p.m. Respectfully submitted, t? F ~~~~7 /Sandra Thackeray City Clerk ,.