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08-10-1992 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 10, 1992 Members Present: President Gongoll, Commissioners Kropuenske, Schuldt, Dietz, Tralle, Holmgren and Dwyer Members Absent: None staff Present: Pat Klaers, Executive Director; Bill Rubin, Economic Development Coordinator; Sandy 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 8/10/92 EDA Agenda President Gongoll added Item 11.1, "Retail Development Video", to the agenda. COMMISSIONER TRALLE MOVED TO AMENDED. COMMISSIONER HOLMGREN CARRIED 7-0. THE 8/10/92 EDA THE MOTION. APPROVE SECONDED AGENDA AS THE MOTION 3. Consider 7/13/92 EDA Minutes COMMISSIONER TRALLE MOVED TO APPROVE COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE 7/13/92 EDA MINUTES. THE MOTION CARRIED 7-0. 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin stated that the Revolving Loan Fund has a cash balance of $218,296.29 as of July 31, 1992, with all loan payments being current. In addition, the EDA cash balance was $57,750.33 as of July 31, 1992. 6. Public Hearing to Consider the Sale of Lot 8, Block 1, Elk River Industrial Park to Tescom Corporation Bill Rubin indicated sale of Lot 8 to Tescom and conditions by Corporation. The terms that a public hearing must be held prior to the Corporation. Bill Rubin reviewed the terms which Lot 8 would be conveyed to Tescom and conditions are as follows: Acquisition Price of $60,000 completely written down using TIF funds. . . . Economic Development Authority Minutes August 10, 1992 Page 2 As seller, the EDA's obligation is to remove the excess soil that is stockpiled on the site. After the excess fill is removed to an agreed upon elevation, soil borings and an analysis will be conducted within the proposed foundation area of the Tescom building. If necessary, poor soils will be excavated and stable materials will be brought in and compacted. As buyer, Tescom Corporation is required to begin construction of a 25,000 to 30,000 square foot facility no later than a specified date such as spring of 1993. Tescom Corporation is required to complete said building by a specified date such as fall of 1993. Tescom Corporation is required to sign an assessment agreement which establishes the minimum market value for tax purposes of the land and building. Tescom Corporation is further required to execute development which further sets forth the terms which development of Lot e will Occur. a contract for and conditions by President Gongoll opened the public hearing. There being no further comments from the public, President Gongoll closed the public hearing. COMMISSIONER KROPUENSKE MOVED TO AUTHORIZE THE SALE OF LOT 8, BLOCK 1, ELK RIVER INDUSTRIAL PARK TO TESCOM CORPORATION UNDER THE TERMS AND CONDITIONS WHICH WILL BE SPELLED OUT IN GREATER DETAIL IN A DEVELOPMENT CONTRACT. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 7-0. 7. Consider Development Agreement with Jarmoluk Family Trust Bill Rubin indicated that a contract spelling out the terms and conditions by wpich the Jarmoluk Family Trust will be reimbursed the principal sum of $70,000 under a pay-as-you-go tax increment redevelopment project has been reviewed by the City and the Jarmoluk Family Trust. He stated that both parties agree with the terms and conditions of the document. COMMISSIONER TRALLE MOVED TO APPROVE THE REDEVELOPMENT CONTRACT FOR THE MAIN STREET DENTAL CLINIC BY AND BETWEEN THE ELK RIVER EDA AND THE JARMOLUK FAMILY TRUST. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 7~0. 8. Update on EDA Main Street Exclusive Option Bill Rubin stated the EDA authorized staff to contact Gary Santwire, R.E.P. Ltd., so that he could provide the EDA Commissioners with a written or verbal update at this EDA meeting. Mr. Rubin indicated that he sentMr.Santwire a letter to this effect, but he received no . . . Economic Development Authority Minutes August 10, 1992 Page 3 response to his his update. The requested that at the September letter and Mr. santwire is not EDA directed Bill Rubin to Mr. Santwire provide either a EDA meeting. in attendance to present pursue the letter and written or verbal update 9. 1993 EDA Budget and Levy Bill Rubin stated that the EDA will receive revenues of $72,000 in 1993. He stated this is $4,000 more than what was indicated in his memo. The EDA discussed which budget item to place the extra $4,000 under. It was the consensus to put the $4,000 into Development Activities, resulting in $51,000 for Contractual Services. This $4,000 will be placed in the Development Activities with the understanding that if it ,is needed in another area, it can be transferred at a later date. COMMISSIONER KROPUENSKE MOVED TO ADOPT RESOLUTION 92-2, A RESOLUTION FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY TO LEVY TO FUND THE AUTHORITY'S ANTICIPATED BUDGET NEEDS FOR 1993. COMMISSIONER TRALLE SECONDED THE MOTION. Commissioner Dietz questioned the retainer Development Consultant. Bill Rubin stated that decreased from last year's budget and that Consultant's role has been limited to the applicants requesting Revolving Loan Funds. amount for the Economic the retainer amount was the Economic Development financial analysis of Commissioner Holmgren questioned if the EDA loan committee could review more of the Revolving Loan applications so that there would be less of a need to utilize the Economic Development Consultant. Commissioner Dwyer stated that there are certain appropriate for the Economic Development Consultant to his knowledge of current funding sources. things review that are based on THE MOTION CARRIED 7-0. 10. Prospect Report Bill Rubin reviewed the Prospect Report which was sent to the EDA members under separate cover. 11. Other BtlSiness President Gongoll and EDA Commissioners reviewed a video cassette regarding the effect a new Wal-Mart has on existing retail businesses. Following the video, President Gongoll stated that he offered the EDA's assistance or sponsorship of a workshop given by Dr. Kevin Stone, Professor of Economics at Iowa State University. Dr. Stone conducts workshops for existing retailers that are affected by new Wal-Mart stores. Commissioner Kropuenske indicated that he concurred with President Gongoll in that the EDA should offer to help . . . Economic Development Authority Minutes August 10, 1992 Page 4 existing businesses in downtown Elk River by providing a seminar to prepare for new retail development. commissioner Tralle requested that Bill Rubin contact Dr. Stone to set a date for this seminar. Commissioner Holmgren indicated his opposition to spending taxpayer dollars on this type of activity. COMMISSIONER TRALLE MOVED TO DIRECT STAFF TO SET UP A SEMINAR WITH DR. STONE, WITH THE EDA TO PAY FOR DR. STONE'S RATES AND EXPENSES. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 6-1. Commissioner Holmgren opposed as he feels this type of service should come from a private sector such as the Chamber of Commerce. 12. Adjournment There being THE MEETING. CARRIED 7-0. no further business, COMMISSIONER DIETZ MOVED TO ADJOURN COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION The meeting of the Elk River Economic Development Authority adjourned at 8:06 p.m. Respectfully submitted, J /J~ .. ~keray ~ City Clerk