05-09-1994 EDA MIN
MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 9, 1994
Members Present:
President Gongoll, Commissioners Duitsman, Scheel, Farber,
Dwyer, Dietz and Holmgren
Members Absent:
None
Staff Present:
Bill Rubin, EDA Executive Director; Lori Johnson, Rnance Director
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 7:09 p.m. by President Gongoll.
2. Consider 5/9/94 EDA Aqenda
Item 11 was deleted from the 5/9/94 EDA agenda, and, the following items were
added to the 5/9/94 EDA agenda:
12a. Commissioner Duitsman - Prospect Status Report
13.1 Chamber Office Project
13.2 Community Reinvestment Fund
13.3 REA Funds for Business Park Infrastructure Improvements
COMMISSIONER DWYER MOVED TO APPROVE THE 5/9/94 EDA AGENDA AS
AMENDED. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION
CARRI ED 7-0.
COMMISSIONER DWYER MOVED TO ADD THE FOLLOWING MOTION TO THE 4/11/94
EDA MINUTES UNDER ITEM 6. - JOINT MEETING WITH THE ELK RIVER UTILITIES
COMMISSION - "PRESIDENT GONGOLL MOVED TO REQUEST THAT THE ELK RIVER
MUNICIPAL UTILITIES COMMISSION CONSIDER THE RELOCATION OF THE UTILITY
POLES IN THE BACK OF THE MAIN STREET REDEVELOPMENT SITE. COMMISSIONER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0." COMMISSIONER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consider 4/11/94 EDA Minutes
4. Open Mike
No one appeared for this item.
5. Financial Update
Lori Johnson provided the following financial summary:
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May 9, 1994
Page 2
The Micro Loan Fund had a cash balance of $125,532.57 on April 30, 1994. As of
May 5, 1994, all May loans are current. The loan approved for Water
Laboratories has not yet closed.
6. Ice Arena Feasibility Study
tW. Stephen Sherf, Executive Vice President, Hospitality Consulting Group of
Marquette Partners, provided an executive summary of the ice arena feasibility
study.
Commissioner Dwyer questioned what type of bond is proposed. tW. Sherf
stated that they would likely be G.O. Bonds at an interest rate of approximately
6.7 percent. Commissioner Dwyer asked if the extra seating proposed (2,200)
added a substantial cost to the project. tW. Sherf indicated that he was not sure
how the additional seating affected the overall project cost. Commissioner
Dwyer further questioned whether or the ice arena employees would be
considered city employees. Staff indicated that the current structure would
probably be used, but that would be decided at a later date. Finally,
Commissioner Dwyer commented that no costs for major improvements to the
existing ice arena are considered in the feasibility report.
The EDA thanked tW. Sherf and his assistant, Matthew Robinson of Marquette
Partners for the ice arena feasibility report.
COMMISSIONER HOLMGREN MOVED TO ESTABLISH A TASK FORCE COMMITTEE TO
REVIEW THE FEASIBILITY STUDY ELEMENTS FOR POSSIBLE WAYS TO REDUCE COSTS
AND INCREASE REVENUES. THIS COMMITTEE WILL CONSIST OF PAT KLAERS, LORI
JOHNSON, PRESIDENT GONGOLL, COMMISSIONER FARBER AND COMMISSIONER
DIETZ. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-
1. COMMISSIONER SCHEEL OPPOSED.
PRESIDENT GONGOLL MOVED TO ACCEPT THE FEASIBILITY REPORT AS PREPARED BY
MARQUETTE PARTNERS. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 6-0. COMMISSIONER SCHEEL ABSTAINED.
7. Consider Quit Claim Deed Releasinq Claim of Easement Involvinq James Talbot
Property
COMMISSIONER DUITSMAN MOVED TO AUTHORIZE PRESIDENT GONGOLL AND THE
EDA EXECUTIVE DIRECTOR TO SIGN A QUIT CLAIM DEED RELEASING THE EDA'S
CLAIM TO A 66 FOOT EASEMENT INTEREST IN THE JAMES TALBOT PROPERTY
LOCATED ADJACENT TO THE ELK RIVER INDUSTRIAL PARK ALONG COUNTY ROAD
#1. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
COMMISSIONER HOLMGREN WAS NOT PRESENT FOR THE VOTE ON THE MOTION.
(LEFT MEETING FROM 7:46 P.M. TO 7:58 P.M.)
8. Consider Resolution of Support on Behalf of Central Minnesota Development
Company Reqardinq its Request to SBA for a One-Year Service Territory
Expansion into Sherburne County
Bill Rubin stated that Central Minnesota Development Company, formerly known
as Coon Rapids Development Company is no longer associated with the City of
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May 9, 1994
Page 3
Coon Rapids. He noted that 52 percent of its shareholders live outside the Coon
Rapids city limits, and one-third of its shareholders live outside Anoka County.
Bill stated that Kristin Wood and Mike Mulrooney, representatives of CMDC, met
with Commissioner Dwyer to request the EDA's support for a one-year,
temporary expansion of its services into Sherburne County.
COMMISSIONER DWYER MOVED THAT THE EDA SUBMIT A LETTER OF SUPPORT ON
BEHALF OF THE CENTRAL MINNESOTA DEVELOPMENT COMPANY (CMDC)
REGARDING ITS REQUEST FOR A TEMPORARY, ONE-YEAR SERVICE TERRITORY
EXPANSION INTO SHERBURNE COUNTY. COMMISSIONER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 6-0. COMMISSIONER HOLMGREN WAS NOT
PRESENT FOR THIS ITEM.
9. Consider Loan Transfer Request by Coldwell Banker-Alleqiance Realty
Bill Rubin reviewed Coldwell Banker-Allegiance Realty's request to transfer the
outstanding balance of a real estate loan on an office suite on the Evans-Main
Street office building to a new office suite in the Freeport Rnancial Center
Building. Bill noted that the equipment portion of the loan for the telephone
system will be paid down completely.
COMMISSIONER DWYER MOVED TO APPROVE COLDWELL BANKER-ALLEGIANCE
REALTY'S REQUEST TO TRANSFER ITS REAL ESTATE MORTGAGE FROM THE 305 MAIN
STREET OFFICE TO A NEW OFFICE AT 325 MAIN STREET IN THE FREEPORT FINANCIAL
CENTER BUILDING. COMMISSIONER SCHEEL SECONDED THE MOTION. THE
MOTION CARRIED 6-0. COMMISSIONER HOLMGREN WAS NOT PRESENT FOR THIS
ITEM.
10. Consider Authorizinq an Appraisal to Estimate the Fair Market Value of the
Proposed Business Park Property
The EDA Executive Director stated that the following companies were contacted
to provide an estimate for appraisal services for the proposed business park
property:
Name
Shenehon
Panger & Benson
Patchin & Associates
lime Frame
30 days
30 days
30 days
Fee
$4,000
$2,500
$2,500
COMMISSIONER DWYER MOVED TO ENGAGE PANGER & BENSON OF ST. CLOUD,
MINNESOTA, AT A COST NOT TO EXCEED $2,500, FOR PURPOSES OF COMPLETING
AN APPRAISAL TO ESTABLISH FAIR MARKET VALUE OF APPROXIMATELY 35 ACRES
OF BUSINESS PARK LAND CURRENTLY OWNED BY TONY EMMERICH.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
12. Prospect Status Report
12.a. Commissioner Duitsman Item
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May 9, 1994
Page 4
Commissioner Duitsman stated he was concerned the EDA President Jeff
Gongoll was still receiving the monthly Confidential Prospect Status Report, due
to Jeff's employment at Riverside Development. He stated that Jeff has an
unfair advantage over other local developers, and as such, this represented a
conflict of interest.
President Gongoll denied the conflict and said his position with the EDA and his
employment at Riverside Development were two separate matters.
Commissioner Duitsman stated there is a perception of conflict and to resolve it,
he wanted an opinion from the City Attorney.
COMMISSIONER DUITSMAN MOVED TO REQUEST AN OPINION FROM THE CITY
ATTORNEY REGARDING A POTENTIAL CONFLICT OF INTEREST ISSUE, SPECIFICALLY,
THE ACCESS TO THE PROSPECT STATUS REPORT. COMMISSIONER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 6-0. PRESIDENT GONGOLL
ABSTAINED.
The Prospect Status Report was provided under separate cover.
13. Other Business
13.1. Chamber Office Proiect
Bill Rubin distributed copies of a letter from the Chamber of Commerce,
outlining needs for its new facility at Main Street and Highway 10.
COMMISSIONER HOLMGREN MOVED TO MAKE A CASH DONATION OF
$500 TO THE CHAMBER OF COMMERCE FOR ITS BUILDING PROJECT.
COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED
6-0. COMMISSIONER DWYER ABSTAINED.
13.2. Community Reinvestment Fund
Bill Rubin provided information on the Community Reinvestment Fund
and noted that he would advise the EDA if an opportunity arose to use
this financing tool.
13.3. REA Funds for Business Park Infrastructure Improvements
Bill Rubin stated that the City has received notification from Anoka
Electric Cooperative that the City of Elk River is not eligible-for REA Rural
Electric Economic Development Loan and Grant Funding for the
proposed Business Park Infrastructure Improvements.
14. Adiournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO
ADJOURN THE EDA MEETING. PRESIDENT GONGOLL SECONDED THE MOTION. THE
MOTION CARRIED 7-0.
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May 9, 1994
Page 5
The meeting of the Elk River Economic Development Authority adjourned at 8:24 p.m.
Respectfully submitted,
j)~ XA~
Debbie Kleckner
Recording Secretary