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12-13-1993 EDA MIN e e e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT SALK JUNIOR HIGH SCHOOL MONDAY, DECEMBER 13, 1993 Members Present: President Gongoll, commissioners Dwyer, Holmgren, Duitsman, Dietz, and Farber Members Absent: Commissioner Scheel staff Present: Bill Rubin, Economic Development Coordinator; Patrick Klaers, Executive Director; 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 6:00 p.m. by President Gongoll. 2. Consider 12/13/93 EDA Agenda The Subordination and Attornment Agreements for Beaudry EDA loan and the R&D Sales loan were added as item 6.1 to the agenda. COMMISSIONER DUITSMAN AMENDED. COMMISSIONER CARRIED 6-0. MOVED TO HOLMGREN APPROVE SECONDED THE THE 12/13/93 MOTION. EDA AGENDA AS THE MOTION 3. Consider November 15, 1993 EDA Minutes COMMISSIONER FARBER MOVED TO APPROVE THE MINUTES. COMMISSIONER HOLMGREN SECONDED CARRIED 6-0. NOVEMBER 15, THE MOTION. 1993, EDA THE MOTION 4 . Open Mike No one appeared for this item. 5. Financial Update Economic Development Coordinator Bill Commissioners that the Revolving Loan Fund $177,002.63 as of November 30, 1993. Rubin had informed the cash balance EDA of a Bill Rubin stated that a Statement of Expenses, in the amount of $25,226.90, has been submitted for EDA approval. COMMISSIONER DUITSMAN MOVED TO APPROVE PAYMENT TO THE CITY OF ELK RIVER IN THE AMOUNT OF $25,226.90 FOR EDA INCURRED EXPENSES. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. Elk River EDA Meeting December 13, 1993 Page 2 --------------------- e 6. Subordination Agreements 6.1. Subordination and Attornment Agreements Bill Rubin distributed a "Subordination and Attornment Agreement" as a supplemental document for the EDA loans to Ken and Carrie Beaudry (Beaudry Convenience) and to Richard and Dawn Schulz (R & D Sales). Because the EDA made loans to individuals and repayment of the loan is based on a lease to a tenant, the Attornment Agreement means the tenant agrees to continue in this capacity even if the EDA is the owner by an event of default. Bill Rubin explained that the Subordination and Attornment Agreement will be a customary document for subsequent EDA Loans involving individuals as the mortgagor and a lease to a company. COMMISSIONER FARBER MOVED TO AUTHORIZE A SUBORDINATION AGREEMENT AS WELL AS A SUBORDINATION AND ATTORN~~NT AGREEMENT WITH THE BEAUDRY (BEAUDRY CONVENIENCE) LOAN. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. COMMISSIONER HOLMGREN MOVED TO AUTHORIZE A SUBORDINATION AGREEMENT AS WELL AS A SUBORDINATION AND ATTORNMENT AGREEMENT WITH THE SCHULZ (R & D SALES) LOAN. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 7. Update on Business Park Task Force e Bill Rubin informed the EDA members that the Planning Commission has reviewed the initial draft of the proposed business park zoning ordinance during a workshop session. The review led to minor changes which were studied by the Business Park Task Force. The Planning Commission will review the proposed business park ordinance and make a recommendation to the City Council. This issue will be before the Council in January with a rezoning request in February. Bill Rubin updated the EDA on a potential grant source which is available to defray infrastructure costs associated with a business park/industrial park development. Bill Rubin explained that a new Rural Electrification Administration (REA) program will be available which will enable R.E.A. borrowers to access grants in conjunction with low-interest loans to support community development projects like a business park or an industrial park. Bill Rubin stated that a letter requesting AEC's assistance has been sent to its general manager. Pat Dwyer updated the EDA on a presentation that was made to AEC earlier in the day. The meeting went well and it is hoped that AEC will participate in the REA Program. 8. Status of SBA Certified Development Company (CDC) . Bill Rubin reviewed the status of an SBA Certified Development Company to Elk River and/or Sherburne County. He explained that Twin Cities-Metro CDC, whose service territory includes the seven-county metro area (with the exception of Anoka County), is willing to take on additional service territory and would be interested in serving Elk River EDA Meeting December 13, 1993 Page 3 --~----~------------- e Sherburne and wright counties. He further explained that although Sherburne county Board adopted a resolution of support in March, it is unlikely that the SBA will consider the expansion request because the resolution failed to reference "Twin Cities-Metro" specifically. Bill Rubin stated that there is a new state-wide CDC known as Minnesota Business Finance, Inc. (MBFI). He stated that the MBFI Board members would likely resist any efforts by a local CDC to expand its operations into Sherburne County. Bill Rubin stated that he is in the process of arranging a meeting with representatives of the SBA Minneapolis office, the County's Economic Development Council, Twin Cities-Metro, and MBFI to try to resolve the expansion issue. 9. Discuss Composition of EDA Board Bill Rubin stated that the Council held a public hearing in December of 1992 which was continued to February of 1993. The public hearing was held to discuss the concept of adding one or more non-elected residents to serve on the EDA Commission in an at-large capacity. If this occurred, the number of Councilmembers on the EDA would be reduced. Following the public hearing, the Council decided to remain as a seven-member Commission comprised of five elected members and two non-elected members for at least one year, however it was agreed that this would be discussed again in the future. e President Gongoll stated he would like to pursue adding one non-elected member to the EDA, replacing an elected member. After discussion, it in the EDA composition elected EDA members January 3, 1994, City was suggested that there is no need for a change at this time. Chairman Gongoll requested that reflect on this and discuss it again at the Council meeting. 10. 1994 EDA Work program Bill Rubin reviewed the 1994 EDA Work Program. President Gongoll suggested that the issue of a Certified Development Company to service Elk River and Sherburne County be added to the Work Program. Bill Rubin indicated he would like to see a program that would estimate the number of jobs in the community added to the Work Program. He stated that he receives many calls requesting this information. COMMISSIONER HOLMGREN MOVED TO APPROVE THE 1994 ECONOMIC DEVELOPMENT WORK PROGRAM WITH THE ADDITION OF TWO ITEMS: 1. CONTINUE TO MONITOR STATUS OF A CDC TO SERVICE ELK RIVER AND SHERBURNE COUNTY. 2. A PROGRAM TO ESTIMATE THE NUMBER OF JOBS IN THE COMMUNITY. COMMISSION DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 11. status Report e The EDA reviewed the status report which was sent under separate cover. e e e Elk River EDA Meeting December 13, 1993 Page 4 --------------------- 12. Other Business There was no other business. 13. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Elk River Economic Development Authority adjourned at 6:45 p.m. Respectfully submitted, ~Jt~~) Sandra A. Thackeray City Clerk