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02-14-1994 EDA MIN MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, FEBRUARY 14, 1994 Members Present: President Gongol!, Commissioners Duitsman, Dietz, Dwyer, Farber, and Holmgren Members Absent: Commissioner Scheel Staff Present: Bill Rubin, Economic Development Coordinator; Pat Klaers, Executive Director; Lori Johnson, Finance Director; Debbie Kleckner, Recording Secretary 1. Call Meetinq To Order Pursuant to due call and notice thereof, the meeting of the Elk River Economic Development Authority was called to order at 7:02 p.m. by President Gongoll. 2. Consider 2114/94 EDA Aqenda COMMISSIONER HOLMGREN MOVED TO APPROVE THE 2/14/94 EDA AGENDA. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider 1110/94 AND 1/18/94 EDA Minutes COMMISSIONER FARBER MOVED TO APPROVE THE 1/10/94 AND 1/18/94 EDA MINUTES. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin explained that the EDA Micro Loan Fund had a cash balance of $107,206.30 on January 31, 1994, excluding 1993 interest income. He stated the loan to Woodsmen Quality Products in the amount of $18,750.00 closed in January. Bill Rubin added that a loan to James and Marlene LaRose for $25,000 was approved, with funds to be disbursed at a later date. As of February 9, 1994, all loans are current except for PureSteam. 6. Consider A Request To Undertake A Financial Feasibilitv Study Reqardinq The Proposed Construction Of A Second Ice Arena President Gongoll stated that the last formal meeting on this issue was a joint meeting of the Elk River City Council and the Elk River School Board. At that 2 meeting, a motion was made and approved to deed land over to the City or EDA, which ever was appropriate, for the proposed ice arena. President Gongoll stated that a fund-raiser was held February 11, 1994, and a kick-off dinner is planned for March. President Gongoll explained that plans call for the completion of the feasibility study in April 1994. Advertisement of the revenue bond issue, the preliminary plan and design for the facility, and selection of the construction management firm is also planned for completion in April. He further explained that the new ice arena has been scheduled to open in December 1994. President Gongoll noted that Elk River's Athletic Conference has overlooked the fact that the existing ice arena, with a capacity of 800, is too small to serve their needs. Commissioner Duitsman questioned the need for an Olympic-sized ice sheet. Marly Glines stated that the last four ice arenas built in Minnesota have all been Olympic size. Joe Nathe stated that it is true that some of the new Olympic size arenas are college level. Mr. Nathe stated that he felt it would be an advantage for Elk River's program by helping them playa faster game with more finesse and less hitting. Tony Sarsland, head hockey coach, indicated that he felt the larger ice sheet promotes skill in the players and that he felt that Elk River's players are at a disadvantage playing on a small ice sheet and then playing an away game on a large sheet. Commissioner Duitsman recommended that the City's Finance Director, Lori Johnson, interview the four ice arena feasibility consultants whose names were listed in the agenda packet. Commissioner Farber added that he felt Commissioner Dwyer and President Gongoll should be involved in the selection process. Commissioners Holmgren and Duitsman agreed that Commissioner Dwyer would provide an unbiased opinion and Commissioner Gongoll's expertise would be helpful to answer questions regarding the ice arena itself. Commissioner Dietz acknowledged the hockey team members present at the meeting for the great job they did this season. Commissioner Dietz emphasized that the proposed ice arena will be an asset that the whole community can utilize including boys' and girls' hockey, figure skating and other recreational activities. Marly Glines noted that the facility could be used for open hockey: soccer, in-line rollering, and indoor walking, as well as outdoor walking around the outside of the building. Marly asked if it would be possible to survey major ice arena contractors such as Bor-Son, Opus, Kr(1us-Anderson, etc. to obtain a recommendation for a firm to do the feasibility study. COMMISSIONER DUITSMAN MOVED TO AUTHORIZE A COMMITTEE COMPRISED OF FINANCE DIRECTOR LORI JOHNSON, COMMISSIONER DWYER AND PRESIDENT GONGOLL, TO INTERVIEW AND RECOMMEND A CONSULTANT TO COMPLETE A 3 FEASIBILITY STUDY FOR THE PROPOSED ICE ARENA, WITH THE UNDERSTANDING THAT THE FINANCE DIRECTOR WILL MAKE THE FINAL RECOMMENDATION TO THE EDA. COMMISSIONER HOLMGREN SECONDED THE MOTION. Rick Schroeder, Pee-Wee Hockey Coach, explained that ideally his players have two practices and one game a week, but they were only able to have a total of two practices during the whole month of December due to lack of available ice time. Don Crock; president of the E.R.Y.H.A., Tony Sarsland; Head Hockey Coach, and Commissioner Dietz offered comments supporting the point that the entire community would benefit from the proposed second ice arena. President Gongoll explained that the plan is to issue the bonds with the EDA as owner of the building. He stated that they are considering a set up similar to what they have now with the Elk River Youth Hockey Association Board being responsible for the operation and maintenance of the facility, but that it an official decision will come at a later date. Lori Johnson indicated that it may be more expensive for the EDA to finance the bonds, and that the City may need to issue them. Commissioner Dietz stated that the Youth Hockey Association is prepared to back up the $15,000 needed for the feasibility study if the project does not go. President Gongoll stated that this is documented in the minutes from the E.R.Y.H.A. Board meeting. THE MOTION CARRIED 6-0. PRESIDENT GONGOLL MOVED THAT THE EDA SUPPORT A FEASIBILITY STUDY FOR A PROPOSED SECOND ICE ARENA AT A COST NOT TO EXCEED $15,000, AND THAT THE COST OF THE FEASIBILITY STUDY BE RECOVERED FROM THE ELK RIVER YOUTH HOCKEY ASSOCIATION IN THE EVENT THE FEASIBILITY STUDY INDICATED THAT THE PROPOSED REVENUES FROM AN ARENA CANNOT SUPPORT THE BOND'S DEBT SERVICE. FURTHER, IT IS UNDERSTOOD THAT IF THE PROJECT PROCEEDS, THE COST OF THE FEASIBILITY STUDY WILL BE REIMBURSED TO THE EDA FROM THE BOND PROCEEDS. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 7. Discuss Course of Action For EDA Main Street Redevelopment Site PRESIDENT GONGOLL MOVED TO AUTHORIZE STAFF TO PLAN A MEETING FOR DISCUSSION OF THE EDA MAIN STREET REDEVELOPMENT SITE, WITH REPRESENTATIVES OF THE FOLLOWING ORGANIZATIONS: -THE ELK RIVER EDA -CITY COUNCIL -DOWNTOWN DEVELOPMENT CORPORATION -CHAMBER OF COMMERCE BOARD -INTERESTED DEVELOPERS -CITY STAFF COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 4 COMMISSIONER DUITSMAN MOVED AUTHORIZE A MEETING OF THE ELK RIVER EDA AND UTILITIES COMMISSION TO DISCUSS THE EDA MAIN STREET REDEVELOPMENT SITE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8. Consider Economic Development Video Presentation Members of the EDA, City staff and the audience viewed the EDA Video presentation at this time (8:20 p.m.). The video is approximately 6 minutes in length and reflects the high quality of life in Elk River and the numerous commercial-industrial-retail opportunities available in the City. COMMISSIONER DWYER MOVED TO AUTHORIZE FINAL PAYMENT TO DIVERSIFIED MARKETING RESOURCE, INC. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Consider 1993 Economic Development Annual Report Bill Rubin reviewed the highlights of his 1993 EDA annual report. President Gongoll thanked him for his efforts this past year in keeping the EDA on course and that he felt the EDA has allowed Elk River to get out and above other cities regarding achievements and opportunities. Commissioner Dwyer congratulated Bill Rubin on the excellent presentation he made to McLean Midwest this past year. COMMISSIONER HOLMGREN MOVED TO ACCEPT THE 1993 EDA ANNUAL REPORT AS PRESENTED BY THE ECONOMIC DEVELOPMEN; COORDINATOR, BILL RUBIN. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 10. Update Status Report on the Business Park Task Force Bill Rubin informed the EDA that the Business Park Task Force met on January 12, 1994, to discuss the following: - Changes to the proposed B-P Zoning District - (The City Council adopted the standards for a B-P Zoning District on January 18, 1994.). - Comprehensive Land Use Amendment affecting the 1-1 Land Use - (The City Council will conduct a public hearing on February 17, 1994. The Planning Commission unanimously recommended denial of this amendment.). ( - AEC's participation in the request to REA for funding - (Staff is working on an initial draft of the REA application.). Bill Rubin advised the EDA that he received a letter today (February 14) from Anoka Electric Cooperative (AEC), expressing their desire to participate in the REA Grant Program. He stated that no reference was made to the zero-interest loan portion of the program. He stated that it is his understanding that AEC can only receive up to $400,000 in REA grant funds per year. 5 Commissioner Dwyer indicated that United Power Association (UPA) has expressed interest in working with the City of Elk River on a combination grant- loan program. COMMISSIONER DWYER MOVED TO DIRECT STAFF TO CONTACT MR. RICK NEWLAND OF ANOKA ELECTRIC COOPERATIVE (AEC) FOR CLARIFICATION OF THEIR INTENTIONS REGARDING THE REA ECONOMIC DEVELOPMENT LOAN/GRANT PROGRAM; AND, THAT IF AEC IS NOT INTERESTED IN THE LOAN PORTION OF THE PROGRAM, THAT AEC AUTHORIZE THE CITY OF ELK RIVER TO WORK WITH UNITED POWER ASSOCIATION (UPA) ON A GRANT/LOAN PROGRAM. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0. John Oliver, Business Park Task Force (BPTF) member, submitted reviewed his letter to the Task Force regarding the BPTF's recommendation to the Planning Commission. Mr. Oliver stated that the BPTF recommended that the Land Use Amendments affecting the proposed Menards/commercial site be denied. Mr. Oliver explained that he felt the proposal by the developers would provide the City an opportunity to extend sewer and wcter to the western area. Discussion followed regarding the proposed Menards/commercial site and its compatibility with the planned Business Park setting. 11. Prospect Status Report This item was presented to the City Council under separate cover. 12. Other Business Short discussion of Star Cities re-certification. 13. Adiournment There being no further business, COMMISSIONER FARBER MOVED TO ADJOURN THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Elk River EDA adjourned at 8:40 p.m. Respectfully submitted, / / "'-;;k/ J;.()--1J~( -; l<-/tLeK/LVL/ Debbie Kleckner~~/) Recording Secretary