Loading...
11-09-1992 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, NOVEMBER 9, 1992 Members Present: President Gongoll, Commissioners Dietz, Kropuenske, Tralle, Schuldt and Dwyer Members Absent: Commissioner Holmgren 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 11/9/92 EDA Agenda Item 13.2, EDA Membership, was added to the agenda by President Gongoll. COMMISSIONER SCHULDT MOVED TO APPROVE THE 11/9/92 EDA AGENDA AS AMENDED. COMMISSIONER TRALLE SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider 10/12/92 EDA Minutes COMMISSIONER TRALLE MOVED TO APPROVE THE 10/12/92 EDA MINUTES AS PRESENTED. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 4 . Open Mike No one appeared for this item. 5. Financial Update Bill Rubin stated that the Revolving Loan fund had a cash balance of $237,887.79 as of October 31, 1992. Commissioner Tralle questioned how the Federal funds from the Tescom grant would be used by the EDA. Bill Rubin explained that the money is intended to establish or maintain the Revolving Loan fund pool. He indicated that the State has certain standards which the City must follow regarding the Revolving Loan fund, but explained that Elk River's Revolving Loan fund does not meet these Federal standards. He indicated that the EDA will have to decide whether to keep its existing Revolving Loan fund or to establish a new Revolving Loan fund for the Federal funds. . . . Economic Development Authority Minutes November 9, 1992 Page 2 6. Exclusive option EDA Main Street Bill Rubin explained that it was the mid point of the 60 day extension to R.E.P. Ltd.'s Exclusive Option on the EDA Main Street site. He indicated that staff is continuing to work on resolving the alley issues, and further, that no update has been received from R.E.P. Ltd. Discussion pursued regarding the alley issues. Bill Rubin explained that the issues are being addressed by staff. Pat Klaers indicated that a major issue to be dealt with is storm drainage. He stated that staff will continue to work on these issues and report back to the EDA. 7. Public Hearing TIF Plan No. 11 President Gongoll opened the public hearing. Bill Rubin explained that the EDA had previously authorized the preparation of Tax Increment Financing Plan No. 11 for Lot 1, Block 1, Elk River Industrial Park. He further stated that the City Council has scheduled a public hearing for this issue on November 16, 1992. Bill Rubin explained that Tax Increment Financing has been requested from Timron Precision Gear in the amount of $52,000. He stated that the TIF funds will be used primarily to write down the acquisition price of Lot 1 and to obtain a Certificate of Survey for the lot. He indicated that Timrom plans on constructing a 10,000 square foot building on the site. Bill Rubin stated that the EDA will capture the new property taxes generated by Timron's expansion for a period of approximately six years. He further stated that Timron precision Gear has indicated that they would make up any shortfall in the City's loss of State Aid. There being no comments from the public, President Gongoll closed the public hearing. COMMISSIONER TRALLE MOVED TO ADOPT EDA RESOLUTION 92-3, A RESOLUTION FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 11 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8. Public Hearing Sale of Lot 1, Block 1, Elk River Industrial Park to Timron precision Gear, Inc. President Gongoll opened the public hearing. Bill Rubin, Economic Development Coordinator, explained that State law requires that an Economic Development Authority conduct a public hearing on the proposed sale of property it owns. He stated that the EDA is holding a public hearing to consider the terms and conditions related to the sale of Lot 1, Block 1 in the Elk River Industrial Park to Timron Precision Gear. Bill Rubin reviewed the terms of the sale. . . . Economic Development Authority Minutes November 9, 1992 Page 3 There being no comments on this matter, President Gongoll closed the public hearing. COMMISSIONER DIETZ MOVED TO APPROVE THE SALE OF LOT 1, BLOCK 1, ELK RIVER INDUSTRIAL PARK TO TIMRON PRECISION GEAR, INC., SUBJECT TO THE APPROVAL BY THE CITY COUNCIL OF A REQUEST FOR TAX INCREMENT FINANCING AND SUBJECT TO THE TERMS AND CONDITIONS OF A DEVELOPMENT CONTRACT. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Consider Development Agreement between the Elk River EDA and Timron precision Gear Bill Rubin explained that although the Developer's Agreement has been drafted, the minimum market value for the property has not yet been determined. He requested the EDA to take no action on the Developer's Agreement until the Sherburne County Assessor's office can establish a minimum market value for the property. It was the consensus until such time that a Assessor's office. of the EDA to take no action on this agreement minimum market value is established by the 10. Review of Dr. Ken Stone's Presentation President Gongoll requested this item be on the agenda and stated that the EDA should be the catalyst for distributing this type of information to local retailers. The EDA discussed Dr. Stone's presentation and concurred with President Gongoll. The EDA directed staff to put together some information and resources that could be useful to retailers in Elk River regarding this subject. 11. Funding Alternatives - Relocation Alternatives - Custom Motors commissioner Dietz informed the EDA that the City Council previously discussed the operation of Custom Motors on Highway 10 and directed Custom Motors to consider relocation of their business. The Council also referred this matter to the EDA regarding relocation alternatives and potential sources of funding assistance for Custom Motors. After discussion regarding this matter, it was the consensus that the City must identify potential sites for relocation and identify types of assistance in funding for the relocation. The EDA directed Bill Rubin to work with the Building and zoning Administrator regarding this issue and requested the issue to be brought back at a later meeting. 12. Prospect Report The Prospect Report which was sent under separate cover was discussed. Rich Duggan, owner of Marketech, Inc., introduced himself and described his company to the EDA. . . . , Economic Development Authority Minutes November 9, 1992 Page 4 13.1.DTED Grant Bill Rubin informed the for the Tescom Expansion informed the EDA that execute a grant agreement EDA that DTED has approved the grant requested Project in the amount of $250,000. He a requirement of the grant was that the City and loan agreement. 13.2.EDA Membership President Gongoll indicated that he would like to pursue adding another non-elected resident to the EDA. He indicated that he is suggesting to keep the membership at seven members and drop one elected City Councilmember. COMMISSIONER TRALLE MOVED TO REQUEST THAT THE CITY COUNCIL TO CONSIDER CALL A PUBLIC HEARING TO CONSIDER ADDING ANOTHER NON-ELECTED MEMBER TO THE EDA. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0. 14. Adjournment COMMISSIONER GONGOLL MOVED TO KROPUENSKE SECONDED THE MOTION. ADJOURN THE MEETING. THE MOTION CARRIED 6-0. COMMISSIONER The meeting of the Elk River Economic Development Authority adjourned at 8:35 p.m. Respectfully submitted, s~a~~~ City Clerk