04-26-1993 EDA MIN
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SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 26, 1993
Members Present:
President Gongoll, Commissioners Farber, Dietz, Scheel,
Duitsman, Dwyer, and Holmgren
Members Absent:
None
Also Present:
Pat Klaers, Executive Director; Bill Rubin, Economic
Development Coordinator; Peter Beck, City Attorney;
Sandra Thackeray, City Clerk
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic
Development Authority was called to order at 5:45 p.m. by President
Gongoll.
2. Consider 4/26/93 EDA Agenda
COMMISSIONER DWYER MOVED TO APPROVE
COMMISSIONER DUITSMAN SECONDED THE MOTION.
THE 4/26/93 EDA AGENDA.
THE MOTION CARRIED 7-0.
3. Consider and Approve a Contract for Private Development By and Between
the Elk River EDA and Tescom Corporation, Inc., TIF No.9
Bill Rubin informed the EDA that it is in a position to approve the
Development Agreement between the Elk River EDA and Tescom
Corporation. Bill Rubin indicated that the Contract for Private
Development had several changes. He reviewed these changes with the
EDA.
Commissioner Duitsman suggested that the words "per year" be added at
the end of the paragraph under Item 3.5. of Page 7, so that it is clear
that the reimbursement for City services is required on a yearly
basis. Discussion was also held regarding the site preparation cost of
$53,000.
Commissioner Duitsman indicated that he will be reviewing the Revolving
Loan Fund request more closely in the future. Bill Rubin stated that
without the assistance of the $50,000 from the Revolving Loan Fund, the
$250,000 DTED Grant would not have been received.
Discussion was held regarding the sum of $14,500 per year which the
City would receive as reimbursement for City services. Commissioner
Duitsman stated his concern that this may not be enough to protect the
City if the loss of state aid is greater than $14,500. Peter Beck,
City Attorney, stated that the City will charge the actual loss to
Tescom.
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special Meeting EDA Minutes
April 26, 1993
Page 2
Following further discussion, Peter Beck suggested that staff change
the number of $14,500 to an outside limit which would reflect the worse
case scenario.
COMMISSIONER DUITSMAN MOVED TO APPROVE THE CONTRACT FOR PRIVATE
DEVELOPMENT BY AND BETWEEN THE ELK RIVER EDA AND TESCOM CORPORATION
WITH THE CHANGES DISCUSSED BY THE EDA AND STAFF. COUNCILMEMBER DWYER
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. Consider and Approve Pledge Agreement for TIF District No.9
Bill Rubin explained that the EDA will collect Tax Increment payments
from the Tescom TIF District over an estimated three to four year
period of which $100,000 should be earmarked directly to the City of
Elk River to be used to repay its funding sources relative to the
acquisition of the vacant parcels in the Industrial Park.
COMMISSIONER DIETZ MOVED TO PLEDGE $100,000 IN TAX INCREMENT FUNDS FROM
DISTRICT NO. 11 TO THE CITY OF ELK RIVER TO USE TO ACQUIRE VACANT
PARCELS IN THE INDUSTRIAL PARK. COMMISSIONER HOLMGREN SECONDED THE
MOTION. THE MOTION CARRIED 7-0.
5.
Consider and Approve Quit Claim Deed Conveying Lots 2 and 3, Block 2,
Elk River Industrial Park 2nd Addition to Tescom Corporation
COMMISSIONER DWYER MOVED TO AUTHORIZE THE CONVEYANCE OF LOTS 2 AND 3,
BLOCK 2, ELK RIVER INDUSTRIAL PARK 2ND ADDITION TO TESCOM CORPORATION,
INC. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED
7-0.
6.
Adjournment
There being no further business, COMMISSIONER
ADJOURN. COMMISSIONER DIETZ SECONDED THE MOTION.
7-0.
HOLMGREN MOVED TO
THE MOTION CARRIED
The meeting of the Elk River Economic Development Authority adjourned at
6:15 p.m.
Respectfully submitted,
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Sandra Thackeray
City Clerk