07-13-1992 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 13, 1992
Members Present:
President Gongoll, Commissioners Dwyer, Schuldt, Dietz,
Kropuenske, Tralle and Holmgren (7:06 p.m.)
Members Absent:
None
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 at 7:00 p.m. by
President Gongoll.
2. Consider 6/8/92 EDA Agenda
Industrial Park Discussion was added to #9 of the agenda.
COMMISSIONER TRALLE MOVED TO APPROVE THE 7/13/92 EDA AGENDA AS
AMENDED. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
6-0.
3.
Consider 6/8/92 EDA Minutes
COMMISSIONER DIETZ MOVED TO APPROVE
COMMISSIONER DWYER SECONDED THE MOTION.
THE 6/8/92 EDA MINUTES.
THE MOTION CARRIED 6-0.
4. Open Mike
Eleanor Todahl questioned whether the Chuba development (Evans Avenue
and Main Street office condominium project) would be discussed at this
meeting. President Gongoll stated that the Chuba development would not
be discussed.
5. Financial Update
Bill Rubin stated that Lori Johnson, Finance Director, reported that
the Revolving Loan Fund has a cash balance of $211,333.49 as of June
30, 1992 and all loans are current. In addition, a Statement of
Expenses, totaling $5,029.50 payable to the City of Elk River was
presented.
COMMISSIONER TRALLE MOVED TO APPROVE THE STATEMENT OF EXPENSES OF
$5,029.50 PAYABLE TO THE CITY OF ELK RIVER. COMMISSIONER KROPUENSKE
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
Commissioner Holmgren arrived at this time (7:06 p.m.).
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Economic Development Authority Minutes
July 13, 1992
Page 2
6.
Update on EDA Main street Redevelopment Exclusive Option
Bill Rubin reported that
expecting an update on
He indicated that he did
regarding the update.
he informed Mr. Santwire that the EDA would be
the Main street Redevelopment Exclusive Option.
not receive a response from Mr. Santwire
President Gongoll directed staff to send
requesting him to update the EDA at the
Redevelopment Exclusive Option status.
a letter to Mr. Santwire
August meeting on the
7. Public Hearing Tax Increment Financing Plan District No.9
Bill Rubin stated that the EDA authorized the preparation of a TIF Plan
for the Tescom Corporation expansion project at its June meeting. The
City Council has scheduled a public hearing on the matter for August 3,
and the County Commissioners and School Board have reviewed the Plan.
President Gongoll opened the public hearing.
Discussion was held regarding the possible loss of state aid due to
TIF District and possible options to cover the loss of the state
It was noted that options would be discussed and reviewed by
Council at the August 3 public hearing.
the
aid.
the
COMMISSIONER KROPUENSKE MOVED TO ADOPT EDA RESOLUTION 92-1, A
RESOLUTION RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO. 9 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT
FINANCING PLAN RELATING THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO.
1. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 7-0.
There being no comments from the public, President Gongoll closed the
public hearing.
8. Set Public Hearing Date for the Sale of Lot 8
Bill Rubin explained that the State law requires that an Economic
Development Authority conduct a public hearing on the sale or lease of
property it owns. A hearing to discuss the terms and conditions by
which Lot 8 in the Industrial Park would be conveyed to Tescom was
requested for August 10, 1992.
COMMISSIONER TRALLE MOVED TO AUTHORIZE A PUBLIC HEARING BY THE CITY
COUNCIL ON AUGUST 10, 1992, TO DISCUSS THE TERMS AND CONDITIONS OF THE
SALE OF LOT 8 IN THE ELK RIVER INDUSTRIAL PARK TO TESCOM CORPORATION.
COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
9. Staff Update
First Time Homebuyer Program
Bill Rubin informed the EDA that the Minnesota Housing Finance Agency
sold bonds for the 1992 First Time Homebuyer Program. The mortgage
Economic Development Authority Minutes
July 13, 1992
Page 3
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rate is 7.15% and Elk River has $1.13 million dollars reserved under
the program.
Acquisition of Industrial Park
Bill Rubin informed the EDA that the City closed on the purchase of the
Industrial Park land on June 24, 1992. In addition, the City conveyed
title to the lots (except for Lot 6) to the EDA. He stated that the
City and EDA had made application for tax exempt status and that all
sites acquired by the EDA and City will be tax exempt beginning in
1993.
Grant Application to DTED
Bill Rubin informed the EDA that he met with the staff
Department of Trade and Economic Development regarding the
application made by the EDA for funds to be loaned to
corporation. DTED staff authorized the completion of
application for this project. He stated that DTED requires the
conduct a public hearing on the application and informed the
the public hearing is scheduled for July 27.
at the
grant
Tescom
a final
City to
EDA that
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Bill Rubin also informed the EDA that DTED's regulations require
application to be authorized by the municipality instead of the
He indicated that if the grant is awarded, it will be awarded to
City, and as principal and interest payments are made from Tescom,
will be earmarked for the Revolving Loan Fund.
the
EDA.
the
they
Industry Calling Program
Bill Rubin informed the EDA that the staff has received a directory of
high technology companies published by Minnesota Technology. Staff
will use the names from this directory to make periodic cold calls.
Industrial Park
As City staff begins estimating the EDA's costs associated with
removing the excess fill that is stockpiled on Lot 8 (the Tescom
expansion site), it was suggested that the EDA "pre-correct" building
foundation area on marginal lots such as Lot 7 or Lot 4. By correcting
the poor soil in Lot 7 or 4 as the excess fill on Lot 8 is moved, the
stockpile is moved only once.
Staff will prepare estimates on these costs and present them to the EDA
Commissioners at a future meeting. A portion of the costs is included
as a reimbursable expense in TIF Plan No.9.
E & 0 Tool Purchase
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Bill Rubin indicated that he has had a request from a new prospect who
has an opportunity to purchase a company owned by the principals of E &
o Tool and Plastics. Bill asked whether the EDA felt the Revolving
Loan Fund would be an appropriate source to help finance the purchase
of a business. It was the consensus of the EDA that the loan fund may
be an appropriate use of funds, but before a decision could be made,
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Economic Development Authority Minutes
July 13, 1992
Page 4
more information would be required from the purchaser regarding the
business.
Commissioner Dwyer suggested that in previous requests, Revolving Loan
Funds were used to finance assets like land, building or equipment.
Funds to purchase a business become like a venture capital use.
10. Prospect Report
Bill Rubin reviewed the Prospect Report which was sent under separate
cover.
11. Adjournment
There being no further business, COMMISSIONER DWYER MOVED
THE MEETING. COMMISSIONER KROPUENSKE SECONDED THE MOTION.
CARRIED 7-0.
TO ADJOURN
THE MOTION
The meeting of the Elk River Economic Development Authority adjourned at
7:45 p.m.
~y submitted,
sand~a Th::eray
City Clerk