05-11-1992 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 11, 1992
MEMBERS PRESENT:
President Gongoll, Commissioners Dwyer, Tralle,
Holmgren, Schuldt, Dietz, and Kropuenske
MEMBERS ABSENT:
None
STAFF PRESENT:
Pat Klaers, City Administrator; Bill Rubin, Economic
Development Coordinator; 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
President Gongoll.
2. consider 5/11/92 Economic Development Authority Agenda
COMMISSIONER TRALLE MOVED TO APPROVE THE 5/11/92 ECONOMIC DEVELOPMENT
AUTHORITY AGENDA. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
3.
Consider 4/13/92 Economic Development Authority Minutes
President Gongoll requested that the following be added to the last
sentence of the second paragraph under Item #7: "and any extension
would be negotiated between the parties."
COMMISSIONER KROPUENSKE MOVED TO APPROVE THE
CORRECTED. COMMISSIONER TRALLE SECONDED
CARRIED 7-0.
4/13/92 EDA
THE MOTION.
MINUTES AS
THE MOTION
4 . Open Mike
No one appeared for this item.
5. Financial Update
Bill Rubin updated the EDA on the
Loan Fund. He indicated that
Revolving Loan Fund is $184,848.84
Bill Rubin also informed the EDA
$20,468.29.
financial status of the Revolving
the April, 1992, cash balance of the
and that all loans are current.
that it has a current cash balance of
6.
Consider Allotment Agreement and Program Application
Agreement with Minnesota Housing Finance Agency
Commitment
Bill Rubin informed the EDA that the City has been awarded $1,132,684
in mortgage money from the Minnesota Housing and Finance Agency. Bill
explained that the program is for first time home buyers and that home
EDA Minutes
May 11, 1992
Page 2
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a maximum purchase price. He indicated that the qualifying income has
been adjusted up to $32,080. He also explained that the EDA's request
for higher purchase price limits of $82,500 for existing homes and
$90,000 for new construction was denied by the MHFA. Therefore, the
existing limits set by the MHFA of $62,000 for existing homes and
$72,000 for new homes will remain in place. Bill Rubin informed the
EDA that the mortgage funds should be available in mid to late June.
COMMISSIONER TRALLE MOVED TO AUTHORIZE THE EXECUTION OF THE ALLOTMENT
AGREEMENT AND THE PROGRAM APPLICATION COMMITMENT AGREEMENT AND ALSO TO
AUTHORIZE THE 1% REFUNDABLE DEPOSIT FEE AND THE $200 NONREFUNDABLE
PROCESSING FEE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
7.
Loan Request from Pomeroy Tool, Inc.
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Bill Rubin, Economic Development Coordinator, stated that the EDA
Finance Committee met to review a request by Pomeroy Tool for a $25,000
loan from the EDA's Revolving Loan Fund. He stated the loan would be
used to assist in the construction of an addition to the existing
manufacturing facility. Bill explained that the cost for the proposed
addition is estimated at $75,000 and indicated that Pomeroy has a
commitment from a private lender in the amount of $50,000. The Company
is requesting the remaining $25,000 from the City's Revolving Loan
Fund. The Finance Committee unanimously recommended approval of the
request, subject to a promissory note and personal guarantee from
Pomeroy Tool, Inc.
Commission Dwyer questioned whether a mortgage filed on the real estate
should also be required. Bill Rubin indicated that he did not see a
need for filing a mortgage in this situation.
COMMISSIONER TRALLE MOVED TO APPROVE A $25,000 LOAN FROM THE REVOLVING
LOAN FUND TO POMEROY TOOL, INC. BASED ON THE FINANCE COMMITTEE'S
RECOMMENDATION THAT A PROMISSORY NOTE AND PERSONAL GUARANTEE BE
SUBMITTED TO THE CITY. COMMISSIONER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
8. Update on EDA Main Street Exclusive option
Bill Rubin informed the EDA that Gary Santwire was present to provide
an update as to what has taken place in the last 30 days pertaining to
the exclusive option which was authorized by the EDA at its April 13,
1992, meeting.
Gary Santwire explained that he has received a bid to fill the existing
hole in the ground on Main Street for $36,000.
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Gary Santwire
City. Bill
been provided
requested access to information for this site from the
Rubin informed the EDA that most of the information has
to Eos Architecture.
Gary Santwire informed the EDA that the developers are considering
something on the site that will attract people who are traveling from
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EDA Minutes
May 11, 1992
Page 3
out of town and further stated that this would not happen with a
one-story, standard store front building. Gary santwire discussed the
possibility of the City vacating the alley. He stated that the alley
is unsafe, and further, he felt that the addition of this property to
his existing property would enhance the development.
The EDA thanked Mr. Santwire for his update.
9. Prospect Status Report
Bill Rubin discussed the Prospect status Report which was sent under
separate cover to the EDA members.
10. Other Business
There was no other business.
11. Adjournment
There being
THE MEETING.
CARRIED 7-0.
no further business, COMMISSIONER TRALLE MOVED TO ADJOURN
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
The meeting of the Elk River Economic Development Authority adjourned at
7:48 p.m.
Respectfully submitted,
~?L Tl-ta..e~ f1/
Sandra Thackeray
City Clerk