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05-25-1993 EDA MIN - SPECIAL . . . SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL TUESDAY, MAY 25, 1993 Members Present: President Gongoll, Commissioners Dwyer, Duitsman and Scheel Members Absent: Commissioners Dietz, Holmgren and Farber Staff Present: Patrick Klaers, Executive Director; Bill Rubin, Economic Development Coordinator 1. Call Meeting To Order Pursuant to due call and notice thereof, the special meeting of the Elk River Economic Development Authority was called to order at 5:49 p.m. by President Gongoll. 2. Consider 5/25/93 EDA Agenda COMMISSIONER SCHEEL MOVED TO APPROVE COMMISSIONER DUITSMAN SECONDED THE MOTION. THE 5/25/93 EDA AGENDA. THE MOTION CARRIED 4-0. 3. Consider an Allotment Agreement and a Commitment Agreement with Minnesota Housing Finance Agency Economic Development Coordinator, Bill Rubin, explained that he had attended the bond allocation meeting on May 12, 1993, wherein, Minnesota Housing Finance Agency reduced Elk River's requested amount of mortgage funds in the Minnesota City Participation Program. The Elk River request was reduced from $1,500,000 to $974,242. As a result of this meeting, Minnesota Housing Finance Agency prepared two documents for execution by the Elk River EDA. Bill Rubin explained that the purpose of the Allotment Agreement was to provide for the allotment of 1993 mortgage revenue bond authority in accordance with Minnesota Statutes. The purpose of the Commitment Agreement is to set forth the contractual obligations of participating cities wherein a city authorizes Minnesota Housing Finance Agency to sell bonds on their behalf. As a result of this reduced allocation, Bill Rubin also indicated that the Elk River EDA needed to authorize a new 1% deposit fee to Minnesota Housing Finance Agency plus a $200 processing fee. These funds would not be paid immediately; but rather, they would be paid when Minnesota Housing Finance Agency has the ability to issue revenue bonds. The ability to sell mortgage revenue bonds expired in June, 1992. It is expected that authority to issue bonds will be restored again, but this will not likely occur until mid summer. COMMISSIONER SCHEEL REFUNDABLE DEPOSIT MOVED TO AUTHORIZE A NEW ONE PERCENT (1%) FEE IN THE AMOUNT OF $9,742.42, AND A NONREFUNDABLE . . . $200 PROCESSING FEE. COMMISSIONER DUITSMAN SECONDED THE MOTION. MOTION CARRIED 4-0. THE COMMISSIONER DWYER MOVED TO AUTHORIZE PRESIDENT GONGOLL TO SIGN THE COMMITMENT AGREEMENT AND THE ALLOTMENT AGREEMENT WITH MINNESOTA HOUSING FINANCE AGENCY. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 4-0. s. Other Business There was no other business presented. 6. Adjournment There being no further business, PRESIDENT GONGOLL MOVED TO ADJOURN THE MEETING. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 4-0. The special meeting of the Elk River Economic Development adjourned at 5:55 p.m. Authority Respectfully submitted, f)~~ William Rubin Economic Development Coordinator