03-08-1993 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MARCH 8, 1993
Members Present:
President Gongo11, Commissioners Dwyer, Scheel, Farber,
Deitz and Duitsman
Members Absent:
Commissioner Holmgren
Staff Present:
Pat Klaers, Executive Director; Sandra Thackeray, City
Clerk; Bill 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 7:22 p.m. by
President Gongoll.
2. Consider 3/8/93 EDA Agenda
The following was added to the agenda:
Item 13.1. City Hall Plaque
COMMISSIONER DIETZ MOVED TO APPROVE THE 3/8/93 EDA AGENDA AS AMENDED.
COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3.
Consider 2/8/93 EDA Minutes
Bill Rubin requested that Economic Development be changed to EDA on
Page 3, Item 10.
COMMISSIONER DIETZ MOVED TO APPROVE THE FEBRUARY 8,
AS AMENDED. COMMISSIONER DWYER SECONDED THE
CARRIED 6-0.
1993,
MOTION.
EDA MINUTES
THE MOTION
4. Open Mike
No one appeared for this item.
5. Financial Update
Bill Rubin indicated that the Financial Update for March will be
submitted at a later date.
8. Consider a Request to Purchase Stock in a Multi-County Certified
Development Company
Bill Rubin introduced Kristin Wood, Administrator of the Coon Rapids
Development Company. Kristin Wood provided the EDA with an overview of
the Coon Rapids Development Company. She explained that the purpose of
the organization is to offer certain SBA programs to small companies.
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Economic Development Authority Minutes
March 8, 1993
Page 2
She stated that the Coon Rapids Development Company was organized in
1978 and is owned by shareholders. It is a private, not-for-profit
organization. She further stated that in November of 1992, the
shareholders voted to remove territorial restrictions on loan
processing activities. The existing loan territory is Anoka County.
She further explained that expansion beyond Anoka County requires the
request of other communities and that the final action on service
territory expansion rests with the SBA.
Bill Rubin explained that the banks, the
Commission, and the Elk River utilities, to name a
from a certified development company.
Economic Development
few, would benefit
COMMISSIONER SCHEEL MOVED
PLEDGE OF $1,000 WORTH OF
COMPANY WHICH WILL SERVE
COMMISSIONER DIETZ SECONDED
TO PROCEED WITH A LETTER OF SUPPORT AND A
STOCK IN THE CENTRAL REGION DEVELOPMENT
AN EXPANDED TERRITORY OF SHERBURNE COUNTY.
THE MOTION. THE MOTION CARRIED 6-0.
6. Public Hearing Tax Increment Financing Plan Tax Increment Financing
District No. 9
President Gongoll opened the public hearing.
Bill Rubin, Economic Development Coordinator, stated that at its
February EDA meeting, the Commissioners authorized the preparation of a
Tax Increment Financing Plan for the Tescom Corporation expansion
project. He stated that TIF District No. 9 will be an economic
development district and is proposed to be comprised of Lots 1, 2, and
3, Block 2, Elk River Industrial Park Second Addition. He stated that
the TIF budget is $194,000. However, Tescom will only purchase Lots 2
and 3. Therefore, the TIF assistance to Tescom is less than
$194,000.The funds will be used to write down the acquisition price and
to reimburse the developer for the cost of site surveys, civil and
engineering, and soil boring and analysis.
There being no comments from the public, President Gongoll closed the
public hearing.
COMMISSIONER DWYER MOVED TO ADOPT EDA RESOLUTION 93-1, A RESOLUTION
RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 9
AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN
RELATING THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO.1.
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
7. Public Hearing Sale of Property in the Elk River Industrial Park to
Tescom
Bill Rubin indicated that the sale of public property requires a public
hearing. He indicated that the EDA convey Lots 2 and 3 in the Elk
River Industrial Park Second Addition to Tescom Corporation through a
Contract for Private Development. Bill Rubin reviewed the terms and
conditions that will be listed in the Contract for Private Development
for the conveyance of property to Tescom.
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Economic Development Authority Minutes
March 8, 1993
Page 3
President Gongoll opened the public hearing. There being no one for or
against the matter, President Gongoll closed the public hearing.
COMMISSIONER FARBER MOVED TO APPROVE THE SALE OF LAND IN THE ELK RIVER
INDUSTRIAL PARK SECOND ADDITION OF LOTS 2 & 3 TO TESCOM CORPORATION
SUBJECT TO THE TERMS AND CONDITIONS WHICH WILL BE OUTLINED IN THE
CONTRACT FOR PRIVATE DEVELOPMENT. COMMISSIONER DWYER SECONDED THE
MOTION. THE MOTION CARRIED 6-0.
9. Consider Revisions to EDA Loan Policy Guidelines
Bill Rubin explained that the EDA Finance Committee has met to review
and discuss changes for the existing loan policy guidelines. He stated
that upon their review, the Committee members have suggested minor
revisions to the loan policy. The Economic Development Authority
reviewed the revisions made by the EDA Finance Committee.
COMMISSIONER DIETZ MOVED TO APPROVE THE REVISIONS TO THE EDA REVOLVING
LOAN POLICY GUIDELINES. COMMISSIONER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
10.
Consider 1993 Minnesota Housing Finance Agency Home Mortgage Program
EDA has participated in the MHFA home
Bill Rubin explained that with
part of the Twin Cities metro area,
qualifying income for the program
Bill Rubin explained that the
mortgage program in 1991 and 1992.
Sherburne County's designation as
it is possible that the 1993 maximum
will be increased to $40,800.
COMMISSIONER GONGOLL MOVED TO AUTHORIZE STAFF TO PREPARE AN APPLICATION
FOR A RESERVATION OF MHFA FUNDS FOR FIRST TIME HOME BUYERS IN ELK
RIVER. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0.
11. Update on EDA Main Street Redevelopment Site
Bill Rubin indicated that Gary Santwire of R.E.P. Ltd., indicated that
he would make a presentation to the EDA at its March 8, meeting to
inform the EDA of the status of his proposal for the Main Street site.
Bill Rubin indicated that Mr. Santwire has not provided any information
nor is he available for tonight's meeting.
Commissioner Dietz suggested putting a time limit on the property for
other developers to present proposals and, at the end of the time
limit, make a decision to turn the property into a park.
Commissioner Gongoll indicated that there are other
interested in the site. Commissioner Dwyer stated that
shows that the property is not the most desirable site.
merchants want to see the site developed. He indicated he
in favor of putting a short term deadline of removing the
the market.
developers
the market
The downtown
would not be
property from
Discussion was held by the EDA regarding filling in the
cost it would take to bring the site up to street grade.
hole and the
The Executive
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Economic Development Authority Minutes
March 8, 1993
Page 4
Director informed the EDA that the Park and Recreation Commission has
requested that this issue be discussed at a joint meeting with the City
Council. It was the consensus of the EDA that this be discussed with
the Park and Recreation Commission and the City Council at a joint
meeting and that Commissioners Gongoll and Dwyer be present.
12.
Prospect Status Report
The EDA reviewed the Prospect Status Report which was sent under
separate cover.
13.1. City Hall Plaque
President
Authority
facility.
financing
and Dwyer
Gongoll stated that he would like the Economic Development
to be mentioned on the City Hall Plaque for the new City
He suggested that something be mentioned regarding the EDA
the facility and also suggested putting Commissioners Gongoll
on the plaque along with the City Council.
14. Adjournment
There being
THE MEETING.
CARRIED 6-0.
no further business, COMMISSIONER SCHEEL MOVED TO ADJOURN
COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION
The meeting of the Economic Development Authority adjourned at 8:40 p.m.
Respectfully submitted,
~tu, ~~
Sandra Thackeray ~
City Clerk