Loading...
02-10-1992 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, FEBRUARY 10, 1992 Members Present: President Gongoll, Commissioners Tralle, Holmgren, Dietz and Dwyer. Commissioner Schuldt arrived 7:20 p.m. Members Absent: Commissioner Kropuenske Staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic Development Coordinator; Sandra Thackeray, City Clerk 1. Call Meeting 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 2/10/92 EDA Agenda COMMISSIONER DIETZ MOVED TO APPROVE COMMISSIONER HOLMGREN SECONDED THE MOTION. THE 2/10/92 EDA AGENDA. THE MOTION CARRIED 5-0. 3. Consider 1/13/92 EDA Minutes COMMISSIONER TRALLE MOVED TO APPROVE THE 1/13/92 EDA MINUTES. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin, Economic Development Coordinator, informed the EDA that there is a balance of $188,864.62 in the Revolving Loan Fund. He reviewed the Statement of Expenses Payable to the City of Elk River for the period ending December 31, 1991. He stated that the EDA has incurred expenses of $2,936.45 for professional services, advertising and revision of the brochure inserts that is payable to the City of Elk River. COMMISSIONER DWYER MOVED TO APPROVE PAYMENT OF $2,936.45 TO THE CITY OF ELK RIVER FOR EXPENSES INCURRED THROUGH DECEMBER 31, 1991. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 6. Consider a Request from Chuba Company for TIF Financing Bill Rubin informed the EDA that the Chuba Company has requested assistance in the form of Tax Increment Financing for a redevelopment project at Evans Avenue and east Main Street. The request is in the amount of $20,000 to assist with the demolition of an existing single family home and site preparation cost. Economic Development Authority Minutes February 10, 1992 Page 2 . Bill Rubin further explained that the Chuba Company is proposing to construct an office condominium totalling approximately 6,000 square feet with a finished market value of approximately $465,000. Bill Rubin explained that staff is proposing to utilize funds from TIF Districts *1 and *3 rather than create a new tax increment district. Bill Rubin indicated that the City's non-refundable application fee of request from the Chuba Company modification to TIF Plans *1 and legal expenses to a minimum, staff the request be charged rather than existing TIF policy requires a $5,000. He stated that because the is for $20,000 and because the *3 can be handled internally, keeping is proposing that a fee of 10% of the $5,000 fee. Discussion was Districts *1 and intent of the development. held *3. EDA by the EDA regarding use of TIF Funds from TIF Commissioner Tralle stated that it has been the and Council to use these TIF Funds for economic Commissioner Schuldt arrived at this time (7:20 p.m.) Commissioner Tralle stated that the use of TIF Funds is intended to create new jobs. He questioned if some of the proposed tenants would be new to the area. Carol Luukkonen, representing Dennis Chuba, who could not attend the meeting, indicated that some of the tenants would be new to the area. . Commissioner Dwyer stated that this request is a logical use for the existing TIF Funds as it will assist in extending the commercial area and that the local taxing jurisdictions will benefit immediately because a new TIF District will not be created. Commissioner Tralle indicated his concern regarding the source of financing. He indicated that other than an SBA loan, TIF financing and grants, there were no other sources of financing listed from the Chuba Company. He indicated his concern for the City promising $20,000 without a commitment from the applicant. Carol Luukkonen indicated that there would be commitments from the tenants of the building before the project moved forward. Commissioner Dwyer suggested having a development agreement that requires commitments from the end users of the project prior to the City granting the TIF Funds. Bill Rubin also suggested that the agreement require lein waivers on the demolition expenses so that the TIF covers the true cost of the demolition up to, but not exceeding, $20,000. Commissioner Holmgren indicated he had a concern regarding the City assisting the contractor and not the property owner. He indicated that he is not against the project, however, he does have some concerns regarding the way the request is set up. . COMMISSIONER TRALLE MOVED TO RECOMMEND TO THE CITY COUNCIL THAT MODIFICATIONS TO TIF PLANS *1 AND *3 BE INITIATED SO AS TO OFFER ASSISTANCE UP TO $20,000 FOR THE CHUBA COMPANY WITH THE STIPULATION . . . Economic Development Authority Minutes February 10, 1992 Page 3 THAT THE CONSTRUCTION FINANCING BE SECURED BEFORE THE INTO THE PROJECT. COMMISSIONER SCHULDT SECONDED MOTION CARRIED 6-0. CITY PUTS MONEY THE MOTION. THE COMMISSIONER TRALLE MOVED TO MODIFY THE TIF APPLICATION FEE REQUEST FOR TEN PERCENT OF ANY REQUEST UP TO $50,000 AND A FEE OF $5,000 FOR ANY REQUEST OVER $50,000. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 7. Economic Development Annual Report Bill Rubin presented the Economic Development 1991 Annual Report. He reviewed the projects the EDA has undertaken in 1991 and the progress from 1990 to 1991. He further reviewed the goals for the EDA for 1992. The EDA thanked Bill for his efforts during 1991. 8. Prospect Report Bill Rubin reviewed the Prospect Status Report which was sent to the EDA under separate cover. 9. Other Business a. Industrial Park Acquisition Bill Rubin informed the EDA that the City has not closed on the Industrial Park. b. County-wide Survey of Manufacturers Bill Rubin informed the EDA that the Sherburne County Economic Development Council is sponsoring a county-wide survey of manufacturers. He informed the EDA that City staff is participating with this effort. c. Multi-tenant Industrial Building Bill Rubin reviewed the concept of a multi-tenant industrial building. He indicated that the City Attorney's opinion on this project is that the EDA could participate as a limited partner in such a venture. He indicated that the EDA's contribution to the project would be the land, project referrals and long term and permanent financing. It was the consensus of the EDA to authorize Bill Rubin to continue with this project and to discuss the concept of developing a multi-tenant building with local contractors-investors. d. Mailable Beverage Cooler Bill Rubin informed the EDA that the artwork for the mailable beverage cooler has been completed. He indicated that the project would be ready for mailing in 30 days. 10. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 6-0. Economic Development Authority Minutes February 10, 1992 Page 4 ~ The meeting of the Elk River Economic Development Authority adjourned at 8:30 p.m. Respectfully submitted, I ~~~ ~andra Thackeray City Clerk ~ ~