Loading...
03-09-1992 EDA MIN . . . MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MARCH 9, 1992 MEMBERS PRESENT: President Gongoll, Commissioners Dietz, Dwyer, Schuldt, Kropuenske, Holmgren (arrived at 7:20 p.m.), and Tralle (arrived at 7:50 p.m.) MEMBERS ABSENT: None STAFF PRESENT: Patrick Klaers, City Administrator; William Rubin, Economic Development; and 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 at 7:00 p.m. by Chairman Gongoll. 2. Consider 3/9/92 EDA Agenda COMMISSIONER SCHULDT MOVED TO APPROVE COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE 3/9/92 EDA AGENDA. THE MOTION CARRIED 5-0. 3. Consider 2/10/92 and 3/2/92 EDA MINUTES COMMISSIONER DWYER MOVED TO APPROVE THE 2/10/92 EDA MINUTES AND THE 3/2/92 SPECIAL EDA MINUTES. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin indicated that the Revolving Loan Fund has a February, 1992 cash balance of $195,669.93. He further noted that the Economic Development Authority has a cash balance of $41,089.88. 6. Consider Proposed Amendment to TIF Plans No. 1 and No.3 Bill Rubin reviewed the proposed modifications to TIF Plans No. 1 and No.3. The modifications include expenditures to assist with redevelopment at Evans Avenue and East Main Street and expenditures for the acquisition of an additional land parcel located between the Elk River Country Club and Woodland Trails Park. Bill Rubin noted that the EDA had previously recommended to the City Council that TIF Plans No. 1 and No. 3 be modified. He noted, however, that at the time of this recommendation, the amendment relating to the acquisition of additional land was not included. He further noted that . . . EDA Minutes March 9, 1992 Page 2 the City Council has scheduled a public hearing date of March 30, 1992, to consider modifications to TIF Plans 1 & 3. COMMISSIONER KROPUENSKE MOVED TO RECOMMEND TO THE CITY COUNCIL THE PROPOSED MODIFICATIONS TO TIF PLANS NO. 1 AND NO.3. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 7. Consider 1992 Minnesota Housing Finance Agency Home Mortgage Program Bill Rubin noted that in 1991, the Economic Development Authority participated in the Minnesota Housing Finance Agency (MHFA) Home Mortgage Program and was awarded nearly $800,000 in mortgage funds. He further noted that these funds have been depleted, but that state-wide, there are more funds available for Elk River to access. Bill Rubin suggested that the EDA submit an application for more funds in 1992. Bill Rubin further indicated that the EDA may wish to consider making a joint application with Sherburne county which would give first time home buyers the option to choose homes across the County. commissioner Holmgren arrived at this time, 7:20 p.m. scheduled to discuss a county-wide meeting. It was the the consensus of the possibility of participating with of a county-wide application. The County Commissioners are applications at an upcoming Board the EDA Commissioners to explore Sherburne County in the completion 8. Revision to Loan Fund Guidelines Bill Rubin indicated that the interest rate on a revolving loan is currently tied to the Federal Reserve Discount Rate the day the loan closes. He noted that because of falling interest rates and their current low levels, he is requesting that the EDA consider a revision to the loan fund guidelines. The amendment would revise the interest rates on new loans. Bill Rubin indicated that the Finance Committee reviewed this topic and agreed that minimum rate or "floor" on new loans should be established. President Gongoll suggested setting the new interest rate at prime rate. He indicated that the main point for offering a Revolving Loan is to make it attractive to prospective borrowers by providing low interest rates. Commissioner the lowest Commissioner bank. Dwyer suggested tying the interest rate on prime rate as published in the Wall Kropuenske suggested using the prime rate loans to Journal. specific new Street of a COMMISSIONER KROPUENSKE MOVED THAT THE RATE FOR THE REVOLVING LOAN FUND BE SET TO THE PRIME RATE AND THAT PRIME RATE WILL BE DETERMINED BY THE LOWEST PRIME RATE BETWEEN THE FIRST MINNEAPOLIS AND NORWEST BANK OF MINNEAPOLIS AT THE DATE THE LOAN IS APPROVED. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED 6-0. . . . EDA Minutes March 9, 1992 Page 3 9. President Gongoll and Mayor Tralle Summary of 2/17/92 Company Tours Jeff Gongoll informed the EDA that he and Commissioner Tralle visited four Elk River manufacturers and a retailer on February 7, 1992. He noted that the purpose of their visits was to obtain special concerns from these companies and also to learn about the kinds of manufacturers in Elk River. Jeff Gongoll noted that he was impressed with the visits. He stated that one of the main issues discussed was education in shop, math and engineering and industrial classes in the high schools. 10. Prospect Report The EDA discussed the Prospect Report which was submitted under separate cover. 11. Staff Updates The City Administrator distributed a schedule dated March 5, 1992, of the Elk River City Hall/Police station construction for the EDA's information. 12. other Business Commissioner Tralle arrived at this time, 7:50 p.m. Commissioner Kropuenske meeting with the downtown issues. informed the EDA members that he will attend a retailers regarding downtown redevelopment 13. Adjournment There being no further business, COMMISSIONER HOLMGREN 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 7:55p.m. Respectfully submitted, /7 crI~( a~~7 /Sandra Thackeray City Clerk .