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09-14-1992 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, SEPTEMBER 14, 1992 Members Present: President Gongoll, Commissioners Dietz, Tralle, Holmgren, Dwyer and Kropuenske (7:10 p.m.) Members Absent: Commissioner Schuldt; Patrick Klaers, Executive Director staff Present: Bill Rubin, Economic Development Coordinator; Lori JOhnson, Finance Director 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 9/14/92 EDA Agenda Bill Rubin requested that two items be added to the agenda, Item lOa., "Elk River Area Chamber of Commerce Budget Request" and Item lOb., "Northern Natural Gas Transmission Easement." THE AGENDA AS AMENDED. THE MOTION CARRIED 5-0. COMMISSIONER DIETZ MOVED TO APPROVE COMMISSIONER DWYER SECONDED THE MOTION. 3. Consider 8/10/92 EDA Minutes COMMISSIONER TRALLE MOVED TO APPROVE THE 8/10/92 EDA MINUTES. COMMISSIONER DIETZ SECONDED THB MOTION. THE MOTION CARRIED 5-0. 4 . Open Mike No one appeared for this item. 5. Financial Update Bill Rubin indicated that the Revolving Loan Fund has a cash balance of $224,630.19 as of A~gust 31, 1992. Lori Johnson indicated that Alltool had made its september payment so all loans are current as of the present time. 6. Consider Loan Request from Second Generation Properties, Inc. Bill Rubin indicated that Second Generation Properties, Inc., is requesting a $50,000 loan from the Revolving Loan Fund to assist in the construction of a 7,000 square foot auto parts store to be located in the Crossroads Subdivision. Mr. Rubin further indicated that the Finance Committee had met and is recommending approval of the loan at the terms outlined in his September 11, 1992, memo. . . . . Economic Development Authority Minutes September 14, 1992 Page 2 Bill Rubin informed the EDA that the Finance Committee had questions regarding the issue of gap financing or financing of last resort for loans from the Revolving Loan Fund. The Commissioners discussed the idea of gap financing versus financing of last resort and whether this project would proceed without financing from the Revolving Loan Fund. President Gongoll stated that he felt the Revolving Loan Fund was available to encourage development, however, other factors must be reviewed. Commissioner Kropuenske arrived at this time. Roger Holmgren expressed concerns over the price of the lot being acquired by Second Generation Properties, Inc. Commissioner Dwyer stated his concerns over the fact that the project has already started and indicated that EDA should enter into future agreements prior to the beginning of construction of a project to help secure a better financial position. Commissioner Tralle indicated that he would like Fund to be a lender of last resort. Commissioner the importance of City development and the Revolving attracting development. Commissioner Dietz stated Revolving Loan Fund was made available to help make Commissioner Holmgren indicated that he thought development. the Revolving Loan Kropuenske stressed Loan Fund roll in that he thought the a project happen. it was to attract COMMISSIONER TRALLE MOVED THAT THE EDA GRANT A $50,000 LOAN FROM THE REVOLVING LOAN FUND TO SECOND GENERATION PROPERTIES, INC. AT TERMS AS OUTLINED IN THE ECONOMIC DEVELOPMENT COORDINATOR'S SEPTEMBER 11, 1992 MEMO. PRESIDENT GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0. 7. Consider Continuation of Services with Economic Development Consultant Bill Rubin indicated that in September, 1991, the EDA approved an hourly arrangement with Advance Resources, but requested it review the Economic Development Consultant arrangement in one year. Discussion was held on the retainer versus billing at an hourly rate. Both staff and the Commissioners agreed that the current hourly billing has worked well for the EDA. COMMISSIONER TRALLE MOVED TO RETAIN THE CONSULTANT AT THE CURRENT HOURLY RATE. THE MOTION. THE MOTION CARRIED 6-0. CURRENT ECONOMIC DEVELOPMENT COMMISSIONER HOLMGREN SECONDED 8. EDA Main Street Exclusive Option EDA Commissioners reviewed a memo from Pat Klaers on the EDA site alley vacation. Commissioner Kropuenske expressed concerns over the staff report on the vacation of the alley. Commissioner Holmgren indicated that he had had conversations with various department heads regarding the memos related to the vacation of the alley and expressed concerns that the department heads were being asked to find issues and reasons not to vacate the alley. Commissioner Kropuenske indicated that the project can go only with the vacation of the alley and that First . . . Economic Development Authority Minutes september 14, 1992 Page 3 National Bank would do everything possible to provide access to this area. Commissioner Dietz indicated he had spoken with the owners of the Sunshine Depot who had expressed concerns over the electrical update costs for the Sunshine Depot. President Gongoll further indicated that he was disturbed by the memo and the negativism in regards to this project. Gary Santwire arrived at this time and updated the EDA on development proposal. He indicated that the project would not proceed without something being done with the alley. He further indicated that there is a possibility of exchanging properties and having the alley run down the middle of two new buildings instead of having the alley in its current location. The EDA further discussed the alley issue with Mr. Santwire. COMMISSIONER TRALLE MOVED THAT THE EDA RECOMMEND TO THE CITY COUNCIL THAT THE EASEMENT BE VACATED PENDING REVIEW OF PROJECT PLANS FOR THE EDA SITE. COMMISSIONER HOLMGREN SECONDED THE MOTION. There was discussion regarding the parcel having to be platted and possibly being under the PUD process if the alley were relocated. THE MOTION CARRIED 6-0. COMMISSIONER KROPUENSKE MOVED THAT THE EDA RECOMMEND TO THE CITY COUNCIL THAT THE CITY COUNCIL REQUEST THE CITY ADMINISTRATOR AND DEPARTMENT HEADS TO RESEARCH AND COME UP WITH SOLUTIONS TO THE ITEMS LISTED IN THE EXECUTIVE DIRECTOR'S SEPTEMBER 10, 1992 MEMO. PRESIDENT GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-1. Commissioner Tralle voted against the motion, indicating that he felt it was more appropriate to deal with this on a one to one basis instead of requesting written responses. Commissioner Kropuenske indicated that he was not asking for written responses, however, he wanted solutions to the concerns listed in the memo. Gary Santwire indicated that. at the next EDA meeting he would provide the EDA with front elevations and foot print drawings of the proposed project. He further indicated that he would be meeting with First National Bank regarding the access concerns. 9. Prospect Report Bill Rubin reviewed the Prospect Report which was sent under separate cover. 10. Other Business lOa. Chamber of Commerce Request . . . Economic Development Authority Minutes September 14, 1992 Page 4 ------------------- Bill Rubin explained that at a previous City Council budget worksession the Council had requested that the EDA fund a portion of the Chamber of Commerce's budget request. He indicated that the request was for $1,600 to come from the 1992 budget to help repaint the Welcome signs and that $4,000 from the 1993 budget was being requested in order to help fund the Fourth of July activities. COMMISSIONER TRALLE MOVED TO HAVE THE WELCOME SIGNS REPAINTED AT A COST OF $1,600 TO COME OUT OF THE EDA'S 1992 BUDGET. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. COMMISSIONER KROPUENSKE MOVED APPROVAL OF A $4,000 BUDGET REQUEST FOR THE CHAMBER OF COMMERCE FOURTH OF JULY CELEBRATION TO COME FROM THE EDA'S 1993 DEVELOPMENT ACTIVITIES BUDGET. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0-1. Commissioner Dwyer abstained as he is a member of the Chamber of Commerce Board of Directors. lOb. Northern Natural Gas Easement Bill Rubin indicated that an easement is being requested from City by Northern Natural Gas Company for property in Industrial Park. the the COMMISSIONER TRALLE MOVED TO APPROVE THE GAS TRANSMISSION EASEMENT WITH NORTHERN NATURAL GAS COMPANY. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. Bill Rubin updated the EDA on a new ad campaign which would modify the City's current advertisement. He indicated that Greta Wedell has prepared the ads. She has worked for various Port Authorities and cities. The Commissioners questioned whether the funds were available under the current budget for this change. Bill Rubin indicated that funds were available. Commissioner Kropuenske updated the EDA He requested that the staff review the sign proper signage for the Farmer's Market. the entire Peddler's License ordinance be relate to the Farmer's Market. Bill Rubin already reviewing these ordinances. on the Farmer's Market. ordinance to allow for He also requested that reviewed as it would indicated that staff is 11. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. . . . Economic Development Authority Minutes September 14, 1992 Page 5 The meeting of the Elk River Economic Development Authority adjourned at 8:07 p.m. Respectfully submitted, Lori Johnson Finance Director