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09-13-1993 EDA MIN e e e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, SEPTEMBER 13, 1993 Members Present: Vice President Dwyer; Commissioners Duitsman, Holmgren, Scheel, and Dietz Members Absent: President Gongoll and Commissioner Farber 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 7:15 p.m. by Vice President Dwyer. 2. Consider 9/13/93 EDA Agenda COMMISSIONER HOLMGREN MOVED TO APPROVE THE 9/13/93 EDA AGENDA. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3.1. Consider 8/9/93 EDA Minutes COMMISSIONER DIETZ COMMISSIONER DUITSMAN Commissioner Holmgren MOVED TO APPROVE THE 8/9/93 EDA MINUTES. SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. abstained due to his absence from the meeting. 3.2. Consider 8/23/93 special EDA Meeting Minutes COMMISSIONER DUITSMAN MOVED TO APPROVE COMMISSIONER HOLMGREN SECONDED THE MOTION. THE 8/23/93 EDA MINUTES. THE MOTION CARRIED 5-0. 4 . Open Mike No one appeared for this item. 5. Financial Update Bill Rubin, Economic Development Coordinator, indicated that according to a summary from Finance Director Lori Johnson, the Revolving Loan Fund had a cash balance of $179,926.50 as of August 31, 1993. As of September 13th, all September loan payments are current. 6.1. Expiration of 90 Day Exclusive Option with the Bruce Company/EDA Main Street Redevelopment Site Bill Rubin explained that on June 14th, the EDA granted a 90 Day Exclusive Option on the Main Street redevelopment site to Chris Bulow of the Bruce Company by the EDA. He indicated that this exclusive option for the EDA Main Street redevelopment site expires this evening. Elk River EDA Meeting September 13, 1993 Page 2 e Chris Bulow indicated that he has met several times with potential tenants regarding plans for the EDA Main Street redevelopment site. He indicated that although he has put forth a good effort, these plans have not materialized as he expected. Mr. Bulow indicated that he has recently met with Curt Kjelleberg who is interested in locating Kjelleberg Carpets to the EDA Main Street site. Mr. Bulow requested that the EDA consider granting him some time to put together a financing package along with the necessary details to present to the EDA. He stated that Mr. Kjelleberg owns a carpet business and is looking for retail space in the area of 5,000 8,000 square feet. Chris Bulow requested that the EDA consider granting him approximately 30 days to get this material together. Vice President Dwyer suggested that the EDA authorize the Park and Recreation Commission to start thinking about options for the EDA Main Street redevelopment site. He further stated that the EDA would not need to extend the Exclusive Option, however, it would informally grant Mr. Bulow another 30 days to continue negotiations with Mr. Kjelleberg. Mr. Bulow thanked the EDA and indicated that he would keep the EDA informed of his progress with Mr. Kjelleberg. 7. Consider a Loan Request from Water Laboratories, Inc. e Bill Rubin stated that Water Laboratories, Inc., is requesting a loan from the EDA revolving loan fund in the amount of $15,000. The loan would be used by Water Laboratories to leverage primary financing and company equity for the construction and equipping of a 1400 square foot suite in an office/townhouse project to be constructed at Main Street and Freeport Avenue. He indicated that the primary lender is contributing 69.8% and the applicant has equity of 16.2% leaving the EDA revolving loan at 14% of the total project cost. He further stated that the Finance Committee met to review this request and recommended that the EDA approve the $15,000 loan from the EDA revolving loan fund. COMMISSIONER HOLMGREN MOVED TO GRANT A LOAN FROM THE REVOLVING LOAN FUND IN THE AMOUNT OF $15,000 TO WATER LABORATORIES, INC., SUBJECT TO THE TERMS AND CONDITIONS RECOMMENDED BY THE FINANCE COMMITTEE. COMMISSIONER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8. Consider a Loan Request from Ken and Carrie Beaudry Bill Rubin stated that Ken and Carrie Beaudry, operators of Beaudry Oil, have requested a loan from the EDA revolving loan fund in the amount of $50,000. This loan will be used by the applicants to leverage primary financing and equity for the construction of a convenience store/gas station containing approximately 3,450 square feet to be located in the northeast corner of Highway 10 and Proctor Avenue. He indicated that the EDA revolving loan would consist of 4.6% of the total project financing. He further stated that the Finance Committee met and recommended that the EDA approve the loan request of $50,000. e COMMISSIONER HOLMGREN MOVED TO GRANT A LOAN FROM THE REVOLVING LOAN FUND IN THE AMOUNT OF $50,000 TO KEN AND CARRIE BEAUDRY, SUBJECT TO THE Elk River EDA Meeting september 13, 1993 Page 3 e TERMS AND CONDITIONS RECOMMENDED COMMISSIONER DIETZ SECONDED THE MOTION. BY THE FINANCE COMMITTEE. THE MOTION CARRIED 5-0. 9. Consider Loan Request from R & D Sales Bill Rubin stated that Richard and Dawn Schulz of R & D Sales have requested a loan from the EDA revolving loan fund in the amount of $17,500. The loan will be used by the applicants to leverage primary financing and equity for the construction of a 2,300 square foot production and sales facility to be located on a lot of record along County Road 1. Bill Rubin stated that the EDA revolving loan request represents 17.15% of the entire project financing cost. He further stated that the Finance Committee recommended that the EDA approve the loan request of $17,500. COMMISSIONER DIETZ MOVED TO GRANT A LOAN FROM THE REVOLVING LOAN FUND IN THE AMOUNT OF $17,500 TO RICHARD AND DAWN SCHULZ OF R & D SALES, SUBJECT TO THE TERMS AND CONDITIONS RECOMMENDED BY THE FINANCE COMMITTEE. COMMISSIONER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 10. Approve Script for Video Presentation Project e Bill Rubin stated that the Committee of Jim Tralle, and Dick Gongoll, and the Economic Development Coordinator have been appointed to meet with Diversified Marketing and come up with a script for the video presentation. Bill Rubin stated that a script has been prepared for the video. The EDA reviewed the script and made a couple of edits relating to Outcome Based Education and the reference to the four county area. COMMISSIONER HOLMGREN MOVED TO APPROVE THE SCRIPT AS PRESENTED BY DIVERSIFIED MARKETING RESOURCE WITH THE FOLLOWING CHANGES: **DELETE THE MENTION OF OUTCOME BASED EDUCATION **DELETE THE REFERENCE TO THE FOUR COUNTY AREA. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. 11. Consider a Task Force to Review and Revise the City's permitting and Plan Review Processes Vice President Dwyer stated that the EDA is interested in receiving feedback from businesses regarding the City's permitting and plan review processes. He suggested appointing a committee to meet with businesses to evaluate the processes. The intent of this task force would be to receive valuable feedback from the businesses and to possibly streamline the permitting and plan review process and also improve City and customer relationships. Vice President Dwyer suggested that he, Bill Rubin, President Gongoll, Commissioner Duitsman, and Executive Director Klaers be on the Task Force. e COMMISSIONER HOLMGREN MOVED TO APPOINT A TASK FORCE CONSISTING OF BILL RUBIN, JEFF GONGOLL, PAT DWYER, HANK DUITSMAN, AND PAT KLAERS FOR THE PURPOSE OF REVIEWING THE CITY'S PERMITTING AND PLAN REVIEW PROCESS. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. Elk River EDA Meeting september 13, 1993 Page 4 --------------------- e 12. Review Progress of Business Park Task Force Vice President Dwyer stated that the Business Park Task Force has met on several occasions. He indicated that much progress has been made regarding assessing the city's existing inventory of industrially zoned land, identifying suitable park locations, and exploring potential sources of financing. He stated that the issue at hand, beyond identifying one or more suitable locations, is that of funding. He noted that the Business Park Task Force has reviewed several sources of funding including Tax Increment Financing, an EDA levy, money from the HRA, money through the Minnesota statutes Chapter 429 process, grants, and internal financing. He stated that the Task Force is requesting the Council to review the alternatives and that it be prepared to offer a decision to the Business Park Task Force in the near future. e Commissioner Duitsman suggested that the H~ would not be interested in using its funds to purchase industrial property, however, if primary funds are available for property purchase, the HRA may be in a position to assist Bill Rubin stated that unless the land were blighted or contaminated, etc., it would likely not qualify for an HRA project. Other funding options were discussed by the EDA at this time. Vice President Dwyer suggested that the best possibility may be the use of excess TIF funds from Districts No. 1 & No.3. Commissioner Holmgren suggested that there are several uses for the excess TIF funds in Districts No. 1 & No. 3 including expansion of utilities to the east of the city. Commissioner Duitsman reminded commissioner Holmgren that the latest Engineer's estimate had much of the east utility expansion costs being covered by the project. commissioner Duitsman indicated that storm water drainage and industrial park acquisition are two areas in which he would be willing to use the excess TIF funds from Districts No. 1 & No.3. Commissioner Holmgren stated he would be willing to commit a portion of the excess TIF when he has a better idea of the project being proposed. Vice President Dwyer suggested that this discussion be put on a formal Council agenda. 13. Consider Topics for Late Summer - Early Fall EDA Newsletter Bill Rubin reviewed some potential topics for the EDA Newsletter. EDA felt that all proposed topics were appropriate and suggested topics consisting of residential development and the new clinic. Rubin indicated he would present a draft of the newsletter to the for review. The other Bill EDA 14. Prospect status Report The EDA discussed the prospect Status Report which was sent under separate cover. e e e . Elk River EDA Meeting September 13, 1993 Page 5 --------------------- 15. Other Business There was no other business. 16. Adjournment There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN THE EDA MEETING. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River Economic Development Authority adjourned at 8:35 p.m. ~~~~~ Sandra A. Thackeray (I ~~tt) City Clerk