10-12-1992 EDA MIN
~ MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER PUBLIC LIBRARY
MONDAY, OCTOBER 12, 1992
MEMBERS PRESENT: President Gongoll, Commissioners Dietz, Kropuenske, Tralle,
Schuldt, Holmgren, and Commissioner Dwyer (arrived at 7:04
p.m. )
MEMBERS ABSENT: None
STAFF PRESENT: Patrick Klaers, Executive Director; Bill Rubin, Economic
Development Coordinator; Sandra Thackeray, City Clerk;
Lori Johnson, Finance Director
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Economic
Development Authority was called to order at 7:00 p.m. by President
Gongol!.
2.
Consider 10/12/92 EDA Agenda
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Bill Rubin requested that the following changes be made to the agenda:
Delete #6 - Consider Development Agreement between the EDA and Tescom.
Add #10c - Consideration of TIF Request from Timron precision Gear, Inc.
COMMISSIONER TRALLE MOVED TO APPROVE THE 10/12/92 EDA AGENDA AS
AMENDED. COMMISSIONER SCHULDT SECONDED THE MOTION. THE MOTION CARRIED
6-0.
3. Consider 9/14/92 EDA Minutes
Commissioner Schuldt requested that Executive Director Klaers be listed
under "members absent".
COMMISSIONER KROPUENSKE MOVED TO APPROVE THE 9/14/92 EDA MINUTES AS
CORRECTED. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0-1. Commissioner Schuldt abstained due to his absence.
Commissioner Dwyer arrived at this time, 7:04 p.m.
5. Financial Update
Bill Rubin informed the EDA that the Revolving Loan Fund has a cash
balance of $231,730.99 as of September 30, 1992. Bill Rubin also
informed the Commissioners that the EDA is requested to make payment
for expenses in the amount of $7,184.54. He stated that after
deducting this payment, the EDA will have a cash balance of $50,912.89.
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COMMISSIONER TRALLE MOVED TO APPROVE THE STATEMENT OF EXPENSES PAYABLE
IN THE AMOUNT OF $7,184.54. COMMISSIONER HOLMGREN SECONDED THE
MOTION. THE MOTION CARRIED 7-0.
Economic Development Authority Minu~es
October 12, 1992
Page 2
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6.
Consider Development Agreement Between Elk River EDA and
Corporation, Inc.
Tescom
This item was deleted from: the agenda and will be considered at the
November EDA meeting.
7. Consider Site Preparation Altetnatives for Lot 8, Elk River Industrial
Park
Bill Rubin reminded the EDA o~ its obligation to remove the excess fill
stockpiled on Lot 8 which is aFsociated with TIF District No. 9 and the
Tescom transaction. Bill! Rubin stated that he has located a
contractor, A.N. Johnson, who I could use part of the material and
further stated that the City could use a portion of the material for
the Highway 169/Main Street Prbject. He stated that the City Council
reviewed this matter on October 5, 1992, with the understanding that
the EDA has the final authority in the removal of the fill as it is an
EDA owned site. Bill Rubin stated that A.N. Johnson has agreed to work
with Tescom's building contractor and architect to ensure that a
finished grade close to Te~com's elevation is accomplished following
the removal of the fill.
.
COMMISSIONER TRALLE MOVED TO AUTHORIZE A.N. JOHNSON AND THE CITY OF ELK
RIVER TO DISPOSE OF THE EXCESS FILL MATERIAL ON LOT 8 AS A SITE
PREPARATION ALTERNATIVE. COMMISSIONER KROPUENSKE SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
8. Expiration of 180 Day Exclusive Option on the EDA Main Street
Redevelopment Site
Bill Rubin, Economic Development Coordinator stated that on April 13th
the Economic Development Authority authorized a 180 day Exclusive
Option with REP, Ltd., and that the option expires on October 12. Gary
santwire, representing REP, ~td., was present to discuss the Exclusive
Option.
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Gary Santwire presented the EDA with a site sketch of the property.
The site sketch included an atrium over an interior portion of the
building which creates a wal~ay to the river. Gary Santwire stated
that the high roof creates !a historic look and further indicated that
the goals are to retain pedestrian areas, to service the river by using
balconies, to draw people ihto the shop areas, and to be able to lease
the space. Gary Santwire infqrmed the EDA that he is at a point where
he can proceed with the project, but needs an extension on the Option
Agreement. He requested a six month extension from the EDA and stated
that construction could begin in April. Gary Santwire stated that he
would be proposing to develop !the area through a PUD.
.
Gary Santwire stated that the ialley would have to be vacated in order
for the project to work. He suggested that the existing utilities
would have to be dealt with.
commissioners Dwyer and Krdpuenske indicated that they liked the
proposal.
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Economic Development Authority Min~tes
October 12, 1992
Page 3
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Bill Rubin stated that he das had a request from two other developers
who have expressed an interes~ in redeveloping the Main street site.
Rob VanValkenburg stated that he and John Weicht were interested in
redevelopment of the site, hqwever, it was not their intention to
compete with Gary santwire.1 He stated that their proposal would not
entail closing the alley. RO~ VanValkenburg indicated that he would
agree to give Gary more tim~, but if Gary's proposal does not succeed,
he would be willing to try so~ething else. John Weicht stated that he
would be working with Rob !VanValkenburg and indicated that he wanted
the EDA to know that it was ndt certain that the alley would not need
to be vacated for their propo~al.
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COMMISSIONER TRALLE MOVED TO APPROVE A 60
EXCLUSIVE OPTION TO R.E.P., L~D. WITH THE
DECEMBER 14TH AND THAT THE EXTENSION
CONDITIONS AS STATED IN THE ORIGINAL
COMMISSIONER HOLMGREN SECONDEP THE MOTION.
DAY EXTENSION TO THE 180 DAY
EXTENSION TO TERMINATE ON
CARRY THE SAME TERMS AND
180 DAY EXCLUSIVE OPTION.
THE MOTION CARRIED 7-0.
9. Prospect Report
The EDA reviewed the Prospec~ Report which was submitted under separate
cover.
10.a. Dr. Ken Stone Presentation October 29, 1992
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Bill Rubin informed the EDA that Mr. Ken Stone has been contacted and
has agreed to give a pre~entation on October 29th at the Community
Education Center.
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DTED Grant Application Tescdm Expansion Project
10.b.
Bill Rubin informed the EDA that both the City and Tescom are still
awaiting an answer from D~ED regarding the grant application for the
Tescom project.
10.c. Request for TIF Funds from ~imron Corporation
Bill Rubin indicated that sta~f is in receipt of a request for Tax
Increment Financing from al company called Timron precision Gear. He
stated that Timron is proposiqg the construction of a 10,000 square
foot facility on Lot 1, Bloc~ 1 in the Industrial Park. He stated that
TIF Funds would be used to wr~te-down the acquisition price of the lot.
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COMMISSIONER TRALLE MOVED TO ~UTHORIZE THE PREPARATION OF THE TIF PLAN
(TIF DISTRICT NO. 11) FOR tIMRON CORPORATION AND TO AUTHORIZE THE EDA
TO HOLD A PUBLIC HEARING ON TaE TIF PLAN ON NOVEMBER 9, 1992, AND TO
AUTHORIZE A PUBLIC HEARING!FOR THE SALE OF LOT 1, BLOCK 1, IN THE ELK
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RIVER INDUSTRIAL PARK AND TO aECOMMEND TO THE CITY COUNCIL THAT THEY
SCHEDULE A PUBLIC HEARING FOR NOVEMBER 16 TO CONSIDER THE TIF REQUEST.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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11. Adjournment
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Economic Development Authority Minutes
October 12, 1992
Page 4
There being no further business, COMMISSIONER SCHULDT MOVED TO ADJOURN
THE EDA MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at
8:00 p.m.
~ctfullY submitted,
san:::-e~ray
City Clerk