04-12-1993 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 12, 1993
Members Present:
President Gongoll, Commissioners Dwyer, Scheel,
Duitsman, Dietz, Farber and Holmgren (7:15 p.m.)
Members Absent:
None
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 Economic
Development Authority was called to order at 7:00 p.m. by President
Gongoll.
2. Consider 4/12/93 EDA Agenda
Item 12.1., Other Business/Commissioner Duitsman, was added to the
agenda.
COMMISSIONER DUITSMAN MOVED TO APPROVE THE 4/12/93
AMENDED. COMMISSIONER FARBER SECONDED THE MOTION. THE
6-0.
EDA AGENDA AS
MOTION CARRIED
3. Consider 3/8/93 EDA Minutes
COMMISSIONER DWYER MOVED TO APPROVE
COMMISSIONER DUITSMAN SECONDED THE MOTION.
THE 3/8/93 EDA MINUTES.
THE MOTION CARRIED 6-0.
4. Open Mike
No one appeared for this item.
5. Financial Update
a. Statement of Expenses
Bill Rubin presented the EDA with a Statement of Expenses in the
amount of $3,213.01. This statement covers the period through
December 31, 1992.
As of March 31, 1993, the EDA had a cash balance of $63,974.94.
Upon payment of the Statement of Expenses, the cash balance will
be $60,761.90.
b.
Revolving Loan Fund
Bill Rubin further stated that the EDA Revolving Loan Fund had a
cash balance of $195,585.60 as of March 31, 1993.
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Economic Development Authority
April 12, 1993
Page 2
COMMISSIONER DIETZ MOVED TO APPROVE PAYMENT OF EDA EXPENSES THROUGH
DECEMBER 31, 1992, IN THE AMOUNT OF $3,213.01 TO THE CITY OF ELK
RIVER. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED
6-0.
6. Consider an Application for the 1993 Minnesota Housing Finance Agency
Home Mortgage Program
Bill Rubin stated that at the March EDA meeting, the Commissioners
discussed the 1993 MHFA first time homebuyers program which enables
municipalities or Economic Development Authorities to reserve an
allocation of mortgage funds through the MHFA. Bill Rubin explained
that the 1993 income threshold is anticipated to be about $45,000.
Bill Rubin stated that he has prepared a draft application to the MHFA
requesting an allocation of $1.5 million in mortgage revenue funds for
Elk River.
Bill Rubin stated that the designated lender for the City of Elk River
has been First National Mortgage. He stated that First National
Mortgage is still interested in the program. Bill Rubin informed the
EDA that he received a request from Norwest Mortgage who is also
interested in being designated as a lender for the program. He
explained that the closest Norwest Mortgage office available to Elk
River residents is located in Maple Grove.
Commissioner Holmgren arrived at this time (7:15).
Commissioner Dwyer suggested contacting other mortgage agencies ,in the
community to see if there is an interest in participating in the
program prior to going outside of the City limits. Commissioner Dietz
concurred.
COMMISSIONER DIETZ MOVED TO AUTHORIZE THE SUBMISSION OF AN APPLICATION
IN THE AMOUNT OF $1.5 MILLION DOLLARS TO THE MINNESOTA HOUSING FINANCE
AGENCY WITH THE STIPULATION THAT BILL RUBIN CONTACT OTHER MORTGAGE
COMPANIES IN THE CITY TO SEE IF THEY ARE INTERESTED IN BEING AN
APPROVED LENDER FOR THE PROGRAM AND FURTHER TO AUTHORIZE PAYMENT OF A
DEPOSIT EQUAL TO 1% ($15,000) OF THE REQUESTED ALLOCATION.
COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
7. Loan Request from Tescom Corporation, Inc.
Bill Rubin indicated that the EDA Finance Committee met to review a
request from Tescom corporation for a $50,000 loan. The loan will be
used by Tescom to supplement other financing sources to construct and
equip an new 28,000 square foot facility in the Industrial Park. He
stated that the $50,000 loan requested by Tescom will be repaid over a
ten year period. Bill Rubin indicated that the EDA Finance Committee
voted to recommend approval of the loan request.
COMMISSIONER DWYER MOVED TO APPROVE THE $50,000 LOAN REQUEST TO TESCOM
CORPORATION, INC. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
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Economic Development Authority
April 12, 1993
Page 3
8.
Update on Multi-County Development Company
Bill Rubin informed the EDA that numerous resolutions of support for
the Coon Rapids Development Company have been passed and $1,000 pledged
from the Becker EDA, the Elk River EDA, Elk River Municipal Utilities,
Big Lake EDA, Sherburne County EDC, and Zimmerman EDA. A final
presentation to the Sherburne County Board is expected on April 20.
Following this presentation, it is anticipated that the Coon Rapids
Development Company Board will authorize the submission of an
application to the SBA requesting the territorial expansion.
9. Discuss Novelty Marketing Concepts
Bill Rubin presented some marketing concept ideas to the EDA for
consideration. The concepts presented consisted of different types of
puzzles, and Bill Rubin stated that the theme he was suggesting would
revolve around "being puzzled about expansion opportunities". It was
the consensus of the EDA to authorize Bill Rubin to move forward on the
puzzle marketing concept.
10. EDA Main Street Site
a.
Gary Santwire introduced Mr. Chris Bulow as his partner in the
redevelopment of the EDA Main Street site. Gary Santwire stated
that Chris Bulow would be taking the lead in this redevelopment.
Gary Santwire showed the EDA Commissioners the front elevation
drawing and indicated that the proposal which was submitted to the
EDA several months ago has remained relatively the same with the
addition of apartment condominiums facing the river. Gary
Santwire stated that he did not have any dollar figures to present
to the EDA at this time.
Bill Rubin questioned Gary Santwire and Chris Bulow as to what
type of requests the EDA can expect from them within the next 30
days. Gary Santwire stated that he expects the EDA will be asked
to look at the numbers and determine what the owners will be
asking for in the line of subsidies.
b.
Bill Rubin informed the EDA
spoken to John Weicht and Rob
interest in the EDA Main Street site
EDA meeting. He stated he received
or Rob VanValkenburg regarding their
other Developer Interests
Commissioners that he had
VanValkenburg regarding their
and invited them to attend the
no response from John Weicht
attendance at the EDA meeting.
President Gongoll stated he is
is interested in developing
anticipates this party will be
in contact with
the EDA site.
contacting the
another party who
He indicated that he
EDA in the future.
c.
Park and Recreation Concepts The Park and Recreation
Commission was present to offer suggestions regarding the EDA Main
street site. Dave Anderson, Park and Recreation Commission Chair,
informed the EDA that it was the recommendation of the Commission
to turn the Main Street EDA site into a green space park area. He
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Economic Development Authority
April 12, 1993
Page 4
stated that this idea was unanimously endorsed by the Park and
Recreation Commission because it would allow utilization of the
Mississippi River.
Commissioner Dietz questioned if the City should consider setting
a deadline for development proposals for this site. Discussion
was held regarding the fact that if no development takes place by
winter, the hole would have to be filled in for safety purposes.
It was the consensus of the EDA to accept development proposals
for the site through the fall of 1993.
11. Prospect status Report
Bill Rubin presented the Prospect Status Report which was sent to the
EDA under separate cover.
commissioner Dwyer reiterated his concern regarding the City being
nearly depleted of industrial park land. He stated that the City or
the EDA should be looking at developing industrial land. President
Gongoll suggested that the EDA set a meeting to explore options
regarding the development of industrial land.
12.1. Other Business/Commissioner Duitsman
Commissioner Duitsman stated he
the Blandin Foundation. He stated
searching for small companies
University of Minnesota's research
technology transfer.
had met with an attorney in regard to
that the University of Minnesota is
that would be interested in the
for product development as well as
13. Adjournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN
THE MEETING. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at
8:17 p.m.
Respectfully submitted,
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Sandra Thackeray
City Clerk