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10-11-1993 EDA MIN e e e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, OCTOBER 11, 1993 Members Present: President Gongoll, Commissioners Dwyer, Dietz, Scheel, Holmgren, and Farber Members Absent: None Staff Present: Bill Rubin, Economic Development Coordinator; Pat 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 7:08 p.m. by President Gongoll. 2. Consider 10/11/93 EDA Agenda Item 13.1., Set Public Hearing Date for the proposed Sale of the EDA Main Street Redevelopment Site, was added to the agenda. COMMISSIONER FARBER MOVED TO APPROVE THE 10/11/93 EDA AMENDED. COMMISSIONER HOLMGREN SECONDED THE MOTION. CARRIED 7-0. AGENDA AS THE MOTION 3. Consider 9/13/93 EDA Minutes COMMISSIONER DWYER MOVED TO APPROVE COMMISSIONER HOLMGREN SECONDED THE MOTION. THE 9/13/93 EDA MINUTES. THE MOTION CARRIED 7-0. 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin noted that the Revolving Loan Fund had a cash balance of $187,719.15 on September 30. Bill Rubin further stated that the Economic Development Authority had a cash balance of $70,521.52 as of September 30. He further indicated that a Statement of Expenses is included in the EDA packet in the amount of $11,261.03. COMMISSIONER HOLMGREN MOVED TO APPROVE CITY OF ELK RIVER. COMMISSIONER MOTION CARRIED 7-0. PAYMENT OF $11,261.03 TO FARBER SECONDED THE MOTION. THE THE 6. Consider Increment Site by Kjellberg's Assistance for Carpet and Interiors for Tax the EDA Main Street Redevelopment a Request Financing Elk River EDA Meeting October 11, 1993 Page 2 e Bill Rubin indicated that the Economic Development Authority informally granted Chris Bulow a 30-day extension to the original 90-day Exclusive Option which was previously granted by the Economic Development Authority in June. He indicated that Chris Bulow has been working with Kjellberg Carpets as it is their intention to redevelop the site and operate a retail business consisting of carpet sales at that location. Chris Bulow informed the EDA that the proposed building will be approximately 12,000 square feet in size. He indicated that a request for tax increment financing will be made for the preliminary improvements of the property such as site preparation, foundation stabilization, fill, compaction, etc. He noted that the amount of TIF funds requested would not exceed $200,000. This figure includes capitalized interest and other city costs. commissioner Duitsman stated that this is very expensive for the City and indicated that the proposal does nothing to orientate the development to the river and further that there is no guarantee on repayment of the TIF funds. Bill Rubin stated that with previous tax increment agreements the City did not require a guarantee of TIF repayment by the developer. Rather, the City/EDA relies on property taxes to repay the TIF project costs. Chris Bulow indicated that the back of the building will be mostly glass, so as to take advantage of the river view. e Commissioner Holmgren further indicated that City. A park does not indicated that the location is the proposed redevelopment will pay taxes a unique site and pay taxes to the President Gongoll stated that he was encouraged with the proposed retail for the downtown area. He stated that it is a good fit and will help the downtown area. Commissioner than a park. project will at the site. Dwyer stated he would rather see retail in the area rather He indicated that the money that will be spent on the be recovered in the long run if retail businesses located commissioner Farber indicated his concern that the project be started this year. PRESIDENT GONGOLL MOVED TO SCHEDULE A PUBLIC HEARING FOR NOVEMBER 15, 1993, TO CONSIDER A TAX INCREMENT FINANCING PLAN TO REDEVELOP THE EDA MAIN STREET SITE, AND FURTHER, TO AUTHORIZE THE PREPARATION OF A TAX INCREMENT FINANCING PLAN FOR THE EDA MAIN STREET'S REDEVELOPMENT PROJECT, AND FURTHER, TO RECOMMEND THAT THE CITY COUNCIL CONSIDER SCHEDULING A PUBLIC HEARING FOR NOVEMBER 15, 1993, TO CONSIDER ADOPTION OF THE TIF PLAN. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-2. Commissioners Duitsman and Dietz opposed. e Commissioner Duitsman stated that he did not think the City would recapture the TIF funds through taxes. Elk River EDA Meeting October 11, 1993 Page 3 e 7. consider the Addition of Two Lenders to the 1993 EDA First Time Homebuyer Program Economic Development Coordinator Bill Rubin stated that staff has had two requests from home mortgage lenders that wish to be added to the EDA's list of lenders associated with the first time homebuyer program. The lenders that are requesting to be involved in the program are Firstar Home Mortgage Corporation and Norwest Mortgage. COMMISSIONER DWYER MOVED TO ADD FIRSTAR HOME MORTGAGE CORPORATION AND NORWEST MORTGAGE TO ITS LIST OF DESIGNATED LENDERS ASSOCIATED WITH THE FIRST TIME HOME BUYERS PROGRAM. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 7-0. 8. Consider City Council Direction on the Business Park Financing Options President Gongoll stated that the Business Park Task Force made a request to the City Council regarding funding for additional industrial park-business park developments. He indicated that the City Council moved to allocate $400,000 from TIF Districts No. 1 and No. 3 for the purchase of land for a business park in the western area of the City and an industrial park in the eastern area of the City. Infrastructure improvements would be funded by other means. 9. Consider a Revision to the Revolving Loan Fund Program e Economic Development Coordinator Bill Rubin suggested changing the Revolving Loan Fund name to the EDA Micro Loan Program. COMMISSIONER HOLMGREN MOVED TO RENAME THE EDA REVOLVING LOAN PROGRAM TO THE EDA MICRO LOAN PROGRAM. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. 10. Update on Video Project Economic Development Coordinator Bill progress of the Elk River Video Marketing Resource. Rubin project updated the EDA on the being done by Diversified 11. Update on City's Permitting and Review Task Force President Gongoll stated that the development of the Permitting and Review Task Force is important to assist in the development of the community. He stated that the intention is to eliminate any negative comments from developers. He further suggested that the City seek comments and suggestions from developers who have dealt with the City's permitting and review process. The Task Force will begin meeting on this matter in the near future. 12. Prospect Status Report e The Economic Development Coordinator reviewed the Prospect Status Report which was submitted under separate cover. e e e Elk River EDA Meeting October 11, 1993 Page 4 13.1. Set Public Hearing Date for the Proposed Sale of the EDA Main Street Redevelopment Site COMMISSIONER HOLMGREN MOVED TO SET A PUBLIC HEARING REGARDING THE SALE OF THE EDA MAIN STREET PROPERTY FOR NOVEMBER 15, 1993, AND FURTHER, TO DISCUSS THE TERMS AND CONDITIONS BY WHICH THE LAND WOULD BE CONVEYED TO KURT KJELLBERG/KJELLBERG'S CARPET AND INTERIORS. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. Economic Development Coordinator Bill Rubin distributed a copy of the 1993 Directory of Elk River Manufacturers. 14. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0. The meeting of the Elk River City Council adjourned at 8:07 p.m. Respectfully submitted, 4d;t.ec. ':;/(~Y ~J.t\ Sandra A. Thackeray ) City Clerk