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08-09-1993 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, AUGUST 9, 1993 Members Present: President Gongoll, commissioners Dietz, Scheel, Duitsman, Farber, and Dwyer Members Absent: Commissioner Holmgren Staff Present: Pat Klaers, Executive Director; William Rubin, Economic Development Coordinator 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 8/9/93 EDA Agenda COMMISSIONER FARBER MOVED TO APPROVE THE 8/9/93 EDA AGENDA Wr.~H THE FOLLOWING ADDITIONS: 10.1- 10.2. DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT VISIT COMMISSIONER DUITSMAN: "OTHER" COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider 7/12/93 and 7/26/93 EDA Minutes COMMISSIONER FARBER MOVED TO APPROVE THE 7/12/93 AND THE 7/26/93 EDA MINUTES. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Commissioner Scheel abstained as she was not in attendance for the 7/26/93 meeting. 4 . Open Mike At this time, President Gongoll updated EDA Commissioners regarding the proposed civic center project. He told Commissioners that he had agreed to chair this project as it dovetailed into the undertakings of the Community Center Task Force. The proposed civic center is projected as a multi-purpose facility, with multi-functions, and multi-uses. President Gongoll indicated he agreed to provide leadership for this project as a resident that saw the need for such a facility. He further indicated that the proposed civic center was a good use of city property, and, that the committee is still developing concepts and support. The committee has met with Mr. Dave Anderson regarding Park and Recreation input. Commissioner Duitsman asked if this facility one. President Gongoll responded by saying sustain itself, but other uses may not. would be a self-sustaining that the ice facility would The committee is still . . . Economic Development Authority Meeting August 9, 1993 Page 2 exploring those uses, but it i~ the intention that the facility would be city owned. Commissioner Scheel indicated that the proposed center does not reach out to all young adults, but rather, only to athletes and artists. President Gongoll responded by saying there is a need for a cross section of all uses. committee is trying it needs to talk operators to determine He suggested that this of community residents. to get as much to designers, if revenues will perhaps speaks President Gongoll stated the information as possible; that construction specialists, and cover the cost of the project. for the need of another survey President Gangoll indicated that the committee intends to bring this issue to a referendum in the fall. Executive Director Klaers indicated that a bond referendum can occur at any time. President Gongoll indicated that he will appear at a future Park and Recreation Commission meeting to obtain its input as well. 5. Financial Update Bill Rubin informed the EDA that the Revolving Loan Fund had a cash balance of $174,902.78 as of July 31, 1993; this balance excludes interest income earned on the fund. All loans were current. 6. Update on Main Street Redevelopment Site Bill Rubin informed EDA Commissioners that Chris Bulow, who holds the exclusive option on the property, was unable to attend the EDA meeting because of a work commitment. However, Mr. Bulow indicated that he is still working on the project and intends to bring information to the Commissioners at its September meeting. It was understood that the exclusive option expires on September 13, 1993. At this time, Commissioner Farber suggested that it may be time to begin considering filling up the site and converting it to a park or passive use. Commissioner Duitsman responded that this was one of his items under "Other Business". That is, Commissioner Duitsman will be asking the HRA to provide money to fill in the site. The HRA is scheduled to meet on 8/12/93 to discuss this matter. Commissioner Farber suggested that if this discussion goes beyond September, it may be getting late in the season to undertake the grading and compaction of the fill-in activities. Bill Rubin suggested that if this project were to be converted to a passive use, the EDA would likely want to deed the property back to the City. Commissioner Scheel suggested that staff put Mr. Bulow on notice that the EDA will not extend the exclusive option beyond the September 13th expiration date. 7. Execute Contract for a City Video Presentation . . . Economic Development Authority Meeting August 9, 1993 Page 3 Bill Rubin reviewed the rev~s~ons to the agreement by and between the Elk River Economic Development Authority and Diversified Marketing Resource, Inc., for the creation of a six to eight minute video presentation on the City. Further, he said he checked with other communities regarding the cost of this project and it was understood that the price was competitive. COMMISSIONER FARBER MOVED TO APPROVE THE AGREEMENT WITH DIVERSIFIED MARKETING RESOURCE, INC., FOR THE CREATION OF A VIDEO PRESENTATION ON THE CITY OF ELK RIVER. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0. Bill Rubin suggested that the EDA consider appointing a committee to assist him with the project. That is, the committee would review the script and suggest possible scenes. Commissioner Dwyer suggested that it would likely be a good idea to rely on the experience and expertise of a small committee to assist staff. COMMISSIONER SCHEEL MOVED TO GIVE PRESIDENT GONGOLLTHE AUTHORITY TO COME UP WITH THREE NAMES TO ASSIST BILL RUBIN WITH THIS PROJECT. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8. Consider 1994 EDA Budget and Levy Based on a maximum levy, staff estimates that the EDA will have revenues of approximately $77,000 in 1994. Bill Rubin and Pat Klaers outlined the details of EDA expenses under the broad topics of Personal Services, Office Supplies and Charges, and Contractual Services. At this time, Commissioner Duitsman brought up his "Other" issue. He reminded EDA Commissioners that Mr. Dennis Chuba had requested that TIF funds from Districts No. 1 and No. 3 be used to assist the redevelopment project at Main Street and Freeport Avenue. Commissioner Duitsman's concern was that if the City funds projects like this, it will leave less funds available for other projects such as a potential business park. To that end, Commissioner Duitsman indicated he would be asking the HRA to consider funding a portion of this TIF request at the HRA's meeting on August 12th. President Gongoll responded by reviewing the 1992 redevelopment project completed by Mr. Chuba. It was understood in 1992 that Mr. Chuba would be presenting other phases to the project and that his 1993 request follows this concept. EDA Commissioners talked at length about other options to funding the request. Executive Director Klaers indicated that creating a new redevelopment TIF District could not be done because this project does not meet the definition of blight. Bill Rubin also suggested that the eligible expenses Mr. Chuba is seeking reimbursement for easily falls within the statutory definition of tax increment financing. Further, Bill Rubin suggested that one or more elements of the business park may stand on its own, and the EDA may only use funds from TIF Districts No.1 and No.3 as "seed money". That is, funds from Districts No. 1 and No. 3 would be used to front certain costs, but those costs would be repaid allowing the TIF funds to be used on other projects. . . . Economic Development Authority Meeting August 9, 1993 Page 4 At this time, discussion on the budget continued. Executive Director Klaers finalized the outline of the budget as follows: PERSONAL SERVICES: Regular Pay (ED Coordinator salary, portion) Part-time Pay (EDA Commissioners) Pensions Insurance $19,750 $ 8,400 $ 2,900 $ 1,600 $32,650 OFFICE SUPPLIES AND CHARGES Office Supplies $ 800 CONTRACTUAL SERVICES: Legal ED Consultant Telephone Advertising/Newsletter Marketing Postage Development Activities Business Park Expenses Other Miscellaneous Projects (Main Street, CBD, etc.) Insurance Chamber of Commerce (Annual Donation) Transfer to General Fund $ 1,000 $ 1,800 $ 800 $12,000 $ 7,500 $ 3,500 $ 5,000 $ 4,100 $ 650 $ 6,000 $ 1,000 $43,350 TOTAL BUDGET $76,800 COMMISSIONER OF $76,800. CARRIED 6-0. FARBER MOVED TO APPROVE THE 1994 EDA BUDGET IN THE AMOUNT COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION COMMISSIONER DWYER MOVED TO APPROVE EDA RESOLUTION 93-4, A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR COLLECTION IN 1994. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Prospect Status Report The Prospect Status Report, which was sent under separate cover, was discussed by the EDA. EDA Commissioners asked about the status of the manufacturing company for which a presentation would occur on August 10, 1993. Bill Rubin stated that the proposal was in its final form and that EDA Vice President Dwyer, City Engineer Terry Maurer, Municipal Utilities . . . Economic Development Authority Meeting August 9, 1993 Page 5 General Manager Bill Birrenkott, and Alltool Manufacturing Director Brian Moran would be assisting with the presentation. In addition, Bill Alice Heinecke, Design for their Rubin extended his personal gratitude and steven Ach, and Cindi Edwards-Plant of efforts and contributions to the proposal. thanks to CEP Art and 10. other Business 10.1. Bill Rubin indicated that E. Peter Gillette, Commissioner of the Department of Trade and Economic Development, has scheduled and meeting and facility tour in Elk River on Wednesday, August 11, 1993. Following his tour of Tescom, Commissioner Gillette desired to meet a number of civic leaders at an informal lunch. The luncheon has been scheduled for 11:30 a.m. in the Elk River City Hall. Members of the Industrial Council, bankers, Chamber staff, City staff, and the EDA have been invited. Commissioner Duitsman indicated that he would not be available for this luncheon. Commissioners Farber and Dietz indicated that they would attend. President Gongoll reviewed a letter that City staff sent to Ed Cunnington of Tescom Corporation. The letter contained a congratulations to Tescom for its recent ISO 9001 Certification. 11. Adjournment There being no further business, COMMISSIONER DIETZ MOVED TO ADJOURN. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Elk River Economic Development Authority adjourned at 8:10 p.m. Respectfully submitted, JJ, t,L f? LL8/ V ~/Jt/) William Rubin Economic Development Coordinator