Loading...
06-08-1992 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 8, 1992 Members Present: President Gongoll, Commissioners Dwyer, Holmgren, Schuldt, Dietz and Kropuenske Members Absent: Commissioner Tralle Staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic Development Coordinator 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 7:10 p.m. by President Gongoll. 2. Consider 6/8/92 Economic Development Authority Agenda COMMISSIONER KROPUENSKE MOVED TO APPROVE THE DEVELOPMENT AUTHORITY AGENDA WITH THE ADDITION PRESIDENT GONGOLL. COMMISSIONER HOLMGREN SECONDED MOTION CARRIED 6-0. 6/8/92 ECONOMIC OF ITEM 10.1 FROM THE MOTION. THE 3. Consider 5/11/92 Economic Development Authority Minutes COMMISSIONER DIETZ AUTHORITY MINUTES. MOTION CARRIED 6-0. MOVED TO APPROVE THE 5/11/92 ECONOMIC DEVELOPMENT COMMISSIONER HOLMGREN SECONDED THE MOTION. THE 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin updated the EDA on the financial status of the Revolving Loan Fund. He indicated that the May, 1992 ending cash balance of the Revolving Loan Fund is $166,770.18. This balance reflected the $25,000 loan to Pomeroy Tool that was executed in mid May. As of June 4, 1992, two companies had not made their June payment. A late penalty applies after the 15th of each month. Bill RubIn also informed the EDA that it has a May 31, 1992, cash balance (excluding May interest and payables to the City) of $20,564.63. The EDA in favor 1992. part of impact was also informed that as a result of a Supreme Court decision of United Power Association, the EDA will lose $4,332.61 in Part of this is to refund UPA for 1990 and 1991 taxes paid and it is for the 1992 abatement. Commissioner Dwyer asked what this would have on the EDA's 1992 budget and whether the EDA Elk River Economic Development Authority Minutes June 8, 1992 Page 2 . should adjust its budget accordingly. Executive Director, Pat Klaers, indicated that given the EDA's current cash balance, and based on previous years expenditures, there may not be a need to adjust the budget at this time. 6. Update on EDA Main street Exclusive Option Mr. Gary Santwire of R.E.P., Ltd., was not in attendance to give EDA Commissioners an update as to the status of its progress on the EDA Main street redevelopment site. Commissioner Dwyer indicated that he spoke briefly to Mr. Santwire, who indicated that work was still continuing on this project. Commissioner Holmgren also indicated that he had visited with Mr. Santwire and had been to the site with him. President Gongoll suggested that this item continue to appear on upcoming EDA agendas for updates and discussions. 7. Tax Increment Financing Assistance for Tescom Corporation . Bill Rubin indicated that the EDA is in receipt of a completed application for Tax Increment Financing assistance. Tescom Corporation, Inc., 12616 Industrial Boulevard, is requesting $70,000 in Tax Increment Financing assistance to support its proposed 30,000 square foot expansion on a vacant lot adjacent to its existing 34,000 square foot facility in the Elk River Industrial Park. If approved, tax increment funds would be used to "write down" the acquisition price of the 4.67 acre parcel; tax increment monies would also be used to move the excess fill that is currently stockpiled on this site; and lastly, funds would be used to conduct borings and analysis of the property once the stockpile is removed. staff is proposing the creation of a "Economic Development TIF District". This type of district is intended to last a short number of years. However, an Economic Development District also results in the earliest potential loss of state Aid funds for the City. staff is attempting to assess what potential loss could be incurred as a result of creating an Economic Development District for Tescom Corporation. EDA Commissioners reviewed the proposed timetable to complete the creation of Tax Increment District No.9. COMMISSIONER DWYER MOVED TO AUTHORIZE THE PREPARATION OF A TAX INCREMENT FINANCING PLAN FOR THIS PROJECT AND TO REQUEST THAT THE CITY COUNCIL CONSIDER SCHEDULING A PUBLIC HEARING ON THE ADOPTION OF THIS PLAN. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8. Community Development Application . EDA Commissioners reviewed a Community Development staff is proposing it be submitted to the Department Economic Development on behalf of Tescom Corporation. DTED grant to the EDA would be used by the EDA as a Corporation to support its proposed 30,000 square foot Application and of Trade and If awarded, the loan to Tescom expansion in the . . . Elk River Economic Development Authority Minutes June 8, 1992 Page 3 Elk River Industrial Park. DTED funds are intended to supplement and leverage primary financing in support of economic development projects. The proposed application to the State is similar to the grants awarded on behalf of Roma Tool and Plastics and Alltool Manufacturing. If awarded, the EDA retains $100,000 (or more) plus interest collected to that date and the balance is to be paid to the State of Minnesota. COMMISSIONER KROPUENSKE MOVED TO COMMUNITY DEVELOPMENT APPLICATION ECONOMIC DEVELOPMENT. COMMISSIONER MOTION CARRIED 6-0. AUTHORIZE THE SUBMISSION OF TO THE DEPARTMENT OF TRADE DWYER SECONDED THE MOTION. A AND THE 9. Prospect Status Report Bill Rubin. discussed the Prospect Status Report which was sent under separate cover to the EDA Commissioners. 10. Other Business 10.1. President Gongoll presented EDA Commissioners with a summary of the Chamber Retail Committee comments, questions and suggestions from a March 27, 1992 Committee meeting. President Gongoll emphasized Item C regarding the need to educate community businesses. He felt that the EDA could be instrumental in providing funds to underwrite the cost of workshops, etc. Prior to adjourning, Commissioner Dwyer asked if the staff ever made cold calls to manufacturers and other small businesses to determine their interest in expanding or relocating to Elk River. Bill Rubin indicated that staff had not, but follow ups to companies were occurring after, for example, the targeted mailing went out. Bill Rubin also indicated that he would provide some rough ideas for implementing a cold call program in Elk River. 11. Adjournment There being THE MEETING. CARRIED 6-0. no further business, COMMISSIONER DIETZ MOVED TO ADJOURN COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION The meeting of the Elk River Economic Development Authority adjourned at 7:50 p.m. Respectfully submitted, N~~ Bill Rubin Economic Development Coordinator