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07-12-1993 EDA MIN . . . MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JULY 12, 1993 Members Present: President Gongoll, Commissioners Dietz, Holmgren, scheel, Duitsman, and Farber Members Absent: Commissioner Dwyer Staff Present: 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 7:00 p.m. by President Gongoll. 2. Consider 7/12/93 EDA Agenda COMMISSIONER HOLMGREN MOVED TO APPROVE THE 7/12/93 EDA AGENDA. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider 6/14/93 EDA Minutes COMMISSIONER DUITSMAN MOVED TO APPROVE COMMISSIONER HOLMGREN SECONDED THE MOTION. THE 6/14/93 EDA MINUTES. THE MOTION CARRIED 6-0. 4. Open Mike No one appeared for this item. 5. Video Presentation by Diversified Marketing Resources, Inc. Dan and Mark Barth, of Diversified Marketing Resources, Inc., provided the EDA with a video presentation of various cities and business establishments to demonstrate their product. Mr. Dan Barth indicated that the objective of Diversified Marketing Resources is to create a concise motivational video program to assist in the marketing promotion and economic development of the City of Elk River. Discussion was held by the EDA whether or not this project should be shared with the Chamber of Commerce. Commissioner Holmgren indicated that he did not feel this would be a joint project with the Chamber as the Chamber membership is very large and it would be difficult to involve most Chamber members in a video presentation. The EDA concurred that the video should be an EDA project. Commissioner Duitsman questioned whether this was the appropriate time to be considering a video presentation for the City of Elk River. He indicated that the video presentations would be used by industrial . . . Economic Development Authority Minutes July 12, 1993 Page 2 development prospects, however, the City of Elk River does not yet have its new Business and/or Industrial Park located. President Gongoll indicated that he felt a special meeting should be held so that the EDA could discuss the uses and goals for the video presentation. The EDA was interested in pursuing the video proposal this year and getting some of the D.A.R.E. project on tape. The Executive Director indicated that he would check references and review the prices that other cities have paid for video projects. COMMISSIONER HOLMGREN MOVED TO ADD ITEM 11.4., TO THE AGENDA SO THAT A SPECIAL MEETING OF THE EDA COULD BE CALLED. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 6. Consider TIF Assistance Request for Redevelopment of Properties on East Main street/Dennis Chuba Dennis Chuba indicated that The Chuba Company is requesting Tax Increment Financing (TIF) to assist with a redevelopment project at 317 and 323 Main Street. Mr. Chuba indicated that he is proposing to build an office townhouse-condo building with a total of up to 10,000 square feet. The first phase is designed to use the property at 323 Main Street where a one and one-half story home is currently located. The second phase will be started as soon as tenants are committed and would include the property at 317 Main Street. TIF funds would be used to remove existing wells, trees, foundations, buildings, and for soil corrections. He stated that the first phase would require $25,000 in TIF funds. The second phase TIF funds would be used for land acquisition, building and foundation removal, and soils correction and would total approximately $35,000. Commissioner Duitsman indicated that there are other needs for TIF No. 1 and No. 3 funds, including the EDA site, the library expansion project, and the new Industrial Park. He indicated that the EDA should research how much money is available from TIF Plans No. 1 and No. 3 and what other projects the City is considering that may require the use of these funds. Commissioner Duitsman further stated that the City should consider putting a dollar cap on projects such as Mr. Chuba's. PRESIDENT GONGOLL MOVED TO RECOMMEND THAT THE CITY COUNCIL WITH A PUBLIC HEARING TO CONSIDER AMENDMENTS TO TIF PLANS 3 IN ORDER TO ACCESS THE FUNDS TO ASSIST THE CHUBA PROJECT. COMMISSIONER HOLMGREN SECONDED THE MOTION. MOVE FORWARD NO. 1 AND NO. REDEVELOPMENT Commissioner two phases is comfortable like this go Holmgren indicated that $60,000 in TIF assistance for the a lot of money. Commissioner Dietz indicated he is not with this type of a TIF grant. He suggested that projects through the Revolving Loan Fund. THE MOTION CARRIED 6-0. 7. Update on Main Street site There was no update on this site as Chris Bulow was not present. . . . Economic Development Authority Minutes July 12, 1993 Page 3 8. Business Park Update Commissioner Dietz updated the EDA on the Business Park Task Force Meeting which was held on June 29. He indicated that it was the consensus of the Task Force that current industrial parks which are privately owned are not suitable park locations. He stated that sewer and water is needed as the industrial park would be unable to compete with other cities without the availability of sewer and water. He stated that the Task Force discussed two possible areas for an industrial park; one area was the western area along Highway 10 and the other was the eastern area along Highway 10. He stated that the Task Force will be considering other areas at a future meeting. Commissioner Duitsman stated that the development of an with any needed assistance from Districts No. 1 and No. high priority. industrial park 3 funds is a 9. Financial Update Pat Klaers, Executive Director, indicated that the Revolving Loan Fund had a cash balance of $166,552.76 as of June 30, 1993. He further stated that the City is requesting a statement of Expenses Payable for the period ending June 30, in the amount of $15,772.04. After payment of these expenses, the EDA will have a cash balance of approximately $45,000. COMMISSIONER SCHEEL MOVED TO APPROVE A PAYMENT OF $15,772.04 TO THE CITY OF ELK RIVER. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 10. Prospect Status Report The Prospect Status Report, which was sent under separate cover, was discussed by the EDA. 11.1. Targeted Marketing Project Pat Klaers indicated that the City has received a number of positive responses regarding the targeted marketing puzzle which was sent to approximately 475 industrial companies in the northwestern area of the Twin Cities. He stated that 75 of the 475 that were sent out were sent to local companies. 11.2. certified Development Company Update Pat Klaers informed the EDA that Bill Rubin is working with representatives in Wright and Sherburne Counties to evaluate other existing Certified Development Companies. A July 15 luncheon meeting is scheduled to hear a presentation from the Twin City Metro CDC. . . . Economic Development Authority Minutes July 12, 1993 Page 4 11.3. Review city Hall Plaque The EDA reviewed the two proposed versions for the City Hall/Police Department plaque. The EDA discussed several options and concurred that Option #1 would be its recommendation. COMMISSIONER HOLMGREN MOVED TO HALL/POLICE DEPARTMENT PLAQUE. MOTION. THE MOTION CARRIED 6-0. RECOMMEND OPTION #1 COMMISSIONER FARBER CITY THE FOR THE SECONDED 11.4. Special Meeting PRESIDENT GONGOLL MOVED TO DEVELOPMENT AUTHORITY ON PROJECT FOR THE CITY OF ELK MOTION. THE MOTION CARRIED CALL A SPECIAL MEETING OF THE ECONOMIC JULY 26, AT 7:00 P.M. TO DISCUSS THE VIDEO RIVER. COMMISSIONER FARBER SECONDED THE 6-0. 12. Adjournment There being no further business, COMMISSIONER ADJOURN. COMMISSIONER FARBER SECONDED THE MOTION. 6-0. HOLMGREN MOVED TO THE MOTION CARRIED The meeting of the Elk River Economic Development Authority adjourned at 8:35 p.m. Respectfully submitted, s!:::::.c~~ ~ City Clerk