04-11-1994 EDA MIN
MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 11, 1994
Members Present:
President Gongoll, Commissioners Duitsman, Dietz, Dwyer, Farber
and Holmgren
Members Absent:
Commissioner Scheel
Staff Present:
Bill Rubin, EDA Executive Director; Lori Johnson, Finance Director;
Pat Klaers, City Administrator; Phil Hals, Street/Park
Superintendent
Also Present:
Jim Simpson, Utilities Commission President; Jim Tralle and George
Zabee, Utilities Trustees; Bill Birrenkott, Utilities General Manger
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 7:15 p.m. by President Gongoll.
2. Consider April 1" 1994 Aoenda
COMMISSIONER HOLMGREN MOVED TO APPROVE THE 4/11/94 EDA AGENDA.
COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consider 3/14/94 EDA Minutes
COMMISSIONER DWYER MOVED TO APPROVE THE 3/14/94 EDA MINUTES.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Open Mike
No one appeared for this item.
5. Financial Update
Lori Johnson presented the following summary of the Micro-Loan program:
On March 28, 1994, the EDA closed its loan with LaRose Enterprises in the amount
of $25,000 for a restaurant project. On March 18th, PureSteam Humidifier paid
its balance of $13,543.26 in full. After these transactions, the March 31, 1994
Micro-Loan cash balance was $119,590.91. The $15,000 Water Laboratories loan
has not yet closed. As of Friday, April 8, 1994, all April loan payments are current
with the exception of Alltool.
EDA Meeting Minutes
April 11, 1994
Page 2
6. Joint Meetino with the Elk River Utilities Commission
Discussion Reoardinq Alley between the Sunshine Depot and the Main Street
Redevelopment Site
President Gongoll introduced this item for discussion. He stated that the EDA's
questions for the Utilities Commission relate to the feasibility of vacating the alley
and relocating the utility lines in order to add 20 feet of frontage to the Main
Street site.
Bill Birrenkott stated that there is a photo cell on the alley side of the Sunshine
Depot building which provides power for the area including the downtown
underground street lights. He explained that if the alley was vacated and a
building put up next to the Sunshine Depot, conduit could be run through a
building. tvir. Birrenkott noted that this would make access very dif:'icult if there
were a problem. He further explained that it would also be very difficult and
expensive to convert the power lines to underground that are located on the
south side because of the large chunks of concrete buried there.
Phil Hals explained that the water drainage system through the alley began as a
creek that ran down to the river parallel to Jackson Avenue. He stated that the
present storm water conduit was rebuilt in 1988 as part of the Main Street
project. He further stated that this system provides drainoge for the area which
includes the Bank of Elk River, King Avenue and Jackson. Phil explained that
there are only two alternatives to relocating the storm water drainage: 1. Dig up
Moin Street and Jackson over to King Avenue, thereby redoing half of the Main
Street Project; and, 2. Encase the storm water lines in their present location so
that a building could be built around or over the lines. He noted that it would
be virtually impossible to locate or repair any problems that occurred in the lines
with this plan. Phil further noted that if a building was constructed over the olley,
a tunnel situation would be created, making repairs difficult.
Phil Hals explained that in addition, there are also natural gas and phone lines
that would need to be relocated. He added that it was his opinion that if the
site was developed as a park, the alley would still be necessary for access.
Discussion followed regording a riverwalk concept and handicap accessibility.
It was the consensus that the alley between the Main Street Redevelopment Site
and the Sunshine Depot would remain, due to accessibility and economic utility
relocation issues.
7. Consider TIF Reimbursement Reouest from Tescom Corporation ITIF District No.9)
COMMISSIONER HOLMGREN MOVED TO APPROVE THE REQUEST FOR TIF
REIMBURSEMENT BY TESCOM CORPORATION IN THE AMOUNT OF $53,000.
COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
EDA Meeting Minutes
April 11, 1994
Page 3
8. Consider Extendina a Riqht of First Refusal to Tescom Corporation
COMMISSIONER HOLMGREN MOVED TO REQUEST THE EDA EXECUTIVE DIRECTOR
TO DRAFT TERMS AND CONDITIONS FOR AN OPTION AGREEMENT BETWEEN THE ELK
RIVER EDA AND TESCOM CORPORATION FOR LOT 1 , TlF DISTRICT NO.9.
COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
9. Consider Leaislative Issues Involvina Tax Increment Financing
Bill Rubin reviewed his memo regarding TIF legislative issues.
COMMISSIONER DWYER MOVED TO COMMUNICATE THE EDA'S SUPPORT OF THE
LEGISLATIVE INITIATIVES TO THE STATE REPRESENTATIVE AND SENATOR.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
10. Consider Recommendation from the Business Park Task Force to Enqaqe MSA
Consultinq Engineers to Assist with Business Park Desiqn and Cost Ootions
COMMISSIONER HOLMGREN MOVED TO ENGAGE MSA CONSULTING ENGINEERS
TO ASSIST WITH THE PROPOSED BUSINESS PARK DESIGN AND INFRASTRUCTURE
COST ESTIMATES. PRESIDENT GONGOLL SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
11. Discuss Potential Options to Assist with the Relocation of Custom Motors, 13913
Highway 10
Bill Rubin explained a proposed zone change for 15 acres of 1-1 (light industrial)
property to R-1 b (single-family residential) on the north side of Highway lOwest.
He stated that if the rezoning is approved, Custom Motors will have five years to
relocate their business because of the incompatible zoning. Bill Rubin stated
that the Planning Commission tabled action on the rezoning until financing
programs were identified.
Bill Rubin stated that no action is required at this time and that the EDA will be
advised on Council action.
Discussion followed regarding the environmental report for the Custom Motors
property.
12. Aopoint EDA Commissioner to the Comprehensive Plan Steerinq Committee
COMMISSIONER HOLMGREN MOVED TO APPOINT PAT DWYER TO SERVE AS THE
EDA REPRESENTATIVE ON THE COMPREHENSIVE PLAN STEERING COMMITTEE.
COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
13. Discuss Revision to the Micro-Loan Policy Guidelines
Members of the EDA discussed possible changes in the Micro-Loan Policy
guidelines. Commissioner Dietz stated that he was not in favor of increasing
loan limits and risking the possibility of running out of money.
EDA Meeting Minutes
April 11, 1994
Page 4
Bill Rubin stated that not everyone would be eligible for larger loans. He further
stated that the amount of the loan could be determined by the number of jobs
created.
President Gongoll requested that Bill Rubin relay the EDA members' comments
to the Finance Committee.
14. Update on the Ice Arena Feasibility Study
President Gongoll stated that the feasibility study was underway on March 28.
He explained that a meeting was held regarding use of the existing ice arena
and projections for future use. President Gongoll noted that St. Michael and
Monticello have made commitments for use of ice time. He stated that the
study is expected to be completed in two weeks and that staff would review
bond issues at that time. President Gongoll further stated that the EDA may
need to call a special meeting prior to May 10.
15. Prospect Status Report
This information was provided under separate cover.
16. Other Business
Bill Rubin distributed copies of a "thank you" letter to the EDA from Jim Sapp of
Indy Lube, and also copies of letter to Representative James Oberstar from EDA
Commissioner Pat Dwyer.
17. Adiournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO
ADJOURN THE MEETING. COMMISSIONER DWYER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
The meeting of the Elk River Economic Development Authority adjourned at 8:25 p.m.
Respectfully submitted,
f)eMu- f{tfjW~
Debbie Kleckner
Recording Secretary