04-13-1992 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 13, 1992
Members Present:
President Gongoll, Commissioners Dietz, Dwyer, schuldt,
Kropuenske, and Holmgren
Members Absent:
Commissioner Tralle
staff Present:
Pat K1aers, City Administrator; Bill Rubin, Economic
Development Coordinator; Sandy Thackeray, City Clerk
1. Call Meeting to Order
Pursuant to due call and notice thereof, the
Development Authority was called to order
Gongol!.
meeting of the Economic
at 7:00 p.m. by Chairman
2. Consider 4/13/92 EDA Agenda
Item 10.1 - Downtown Development Corporation was added to the agenda.
COMMISSIONER SCHULDT MOVED TO APPROVE THE 4/13/92 EDA
AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION.
CARRIED 6-0.
AGENDA AS
THE MOTION
3.
Consider 3/9/92 EDA Minutes
The following corrections were made to the
arrival time of Commissioner Holmgren
7:20 p.m. on pages 1 and 2.
3/9/92 EDA Minutes. The
was changed from 8:20 p.m. to
COMMISSIONER SCHULDT MOVED TO APPROVE THE 3/9/92 EDA MINUTES AS
AMENDED. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED
6-0.
4 . Open Mike
No one appeared for this time.
5. Financial Update
Bill Rubin reported that the revolving loan fund had a cash balance of
$176,874.82. Mr. Rubin further stated that the Finance Director is
requesting payment in the amount of $9,320.15 for a statement of
expenses which is for the period ending March 31, 1992.
COMMISSIONER KROPUENSKE MOVED
AMOUNT $9,320.15. COMMISSIONER
MOTION CARRIED 6-0.
TO AUTHORIZE PAYMENT OF EXPENSES IN THE
HOLMGREN SECONDED THE MOTION. THE
6.
Consider Single Family Mortgage Application to Minnesota Housing
Finance Agency
EDA Minutes
4/13/92
Page 2
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The Economic Development Coordinator informed the EDA that he has
prepared an application for funding to the Minnesota Housing Finance
Agency under its Minnesota City Participation Program, which is a first
time home buyer program. Because this is a first time home buyer
program, it is subject to maximum qualifying incomes that are set by
MHFA. For example, an adjusted gross income cannot exceed $28,000 if
an existing home is purchased, or an adjusted gross income cannot
exceed $29,000 for the purchase of a newly constructed home. Bill
Rubin further explained that homes under this program are subject to a
maximum purchase price. He stated that this price is set at $62,000
for existing homes and $72,000 for a newly constructed single family or
an existing two family home. Bill Rubin explained that he is
requesting to MHFA that it adjust the purchase price limits to $82,500
for an existing home or $90,000 for a newly constructed home.
COMMISSIONER SCHULDT MOVED TO APPROVE THE APPLICATION TO MINNESOTA
HOUSING AND FINANCE AGENCY AND AUTHORIZE THE REQUIRED 1% DEPOSIT FEE.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
7.
Exclusive Option on the EDA Main Street Site
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Bill Rubin explained that REP, Ltd. has requested an exclusive option
on the EDA Main Street redevelopment site. Bill Rubin indicated that
the exclusive option provides the developer with a certain comfort
level knowing that other developers do not have the ability to deal
with the property because the property is off the market. Bill Rubin
further explained that the exclusive option is requested for 120 days
with the hope that during that period the developer would have time to
obtain permits, site plans, financing, and commitments from tenants for
the project.
President Gongoll informed the EDA that Mr. Gary Santwire, representing
REP Ltd., has requested a 120 day extension to the original 120 day
option. President Gongoll indicated that he would prefer not to
consider the request for an extension until the original 120 days has
expired and any extension would be negotiated between the parties.
COMMISSIONER DWYER MOVED TO APPROVE A 180 DAY EXCLUSIVE OPTION WITH REP
LTD. ON THE EDA MAIN STREET REDEVELOPMENT SITE WITH THE OPTION EXPIRING
ON OCTOBER 12, 1992. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
8. EDA Spring News Letter
Bill Rubin informed the Commission that proposed topics for the
newsletter are Downtown Development Corporation, Cretex
(industry highlight), public safety, and business briefs.
spring
Company
9. Prospect Status Report
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Discussion was held regarding the prospect status report which was sent
under separate cover.
10.1 Downtown Development Corporation
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EDA Minutes
4/13/92
Page 3
Bill Rubin indicated that the Downtown Development Corporation has
revived its group and has started to meet once again. He indicated they
are looking at a number of projects, such as street beautification,
street vacation near Jackson Square, and sidewalk improvements. Rob
VanValkenburg who is a member of the Downtown Development Corporation,
discussed some of the concerns of the corporation with the EDA. He
indicated that the downtown sidewalks are one of the main concerns.
Commissioner Kropuenske informed the EDA that he was also a member of
the Downtown Development Corporation, and informed the EDA that parking
was another main concern of the group. He indicated that one
possibility being considered is the vacation of the street east of
Jackson Square so as to create more parking for the downtown area.
President Gongoll suggested that the EDA become members of the Downtown
Redevelopment Group. It was noted that this would be discussed at a
future EDA meeting.
11. Adjournment
There being no further business, COMMISSIONER DIETZ MOVED
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION.
CARRIED 6-0.
TO ADJOURN
THE MOTION
The meeting of the EDA adjourned at 7:42 p.m.
Respectfully submitted,
i~ ,H .
\2~ ..~
Sandy Th ckeray ~
Recording Secretary