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06-13-1994 EDA MIN MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 13, 1994 Members Present: President Gongoll, Commissioners Dwyer, Duitsman, Scheel, Holmgren, and Dietz Members Absent: Commissioner Farber Staff Present: Bill Rubin, EDA Executive 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 7:00 p.m. by President Gongoll. 2. Consider June 13, 1994 Aqenda COMMISSIONER DUITSMAN MOVED TO APPROVE THE JUNE 13, 1994 EDA AGENDA. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3.1. Consider May 9, 1994 EDA Minutes COMMISSIONER HOLMGREN MOVED TO APPROVE THE MAY 9, 1994 EDA MINUTES. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 6-0. 3. Consider June 6, 1994 EDA Minutes The following correction was noted: 3rd paragraph under item 4. - the word "park" should read "part". COMMISSIONER DWYER MOVED APPROVAL OF THE 6/6/94 MINUTES AS AMENDED. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 4. Open Mike No one appeared for this item. 5. Financial Update Bill Rubin reviewed the financial update prepared by Lori Johnson~ Micro-Loan Fund The Micro Loan Fund had a cash balance of $123,976.36 on May 31, 1994. As of June 13, 1994 all loans are current. In May the Water laboratories loan of $15,000.00 was disbursed. EDA Minutes June 13, 1994 Page 2 Block Grant Micro-Loan Fund In April the City received $250,000.00 from the State of Minnesota for a loan to Tescom. The loan is to be repaid over 120 months at 4.5 percent interest for the first 60 months and 6.0 percent for the remaining 60 months. The City will retain all of the payments from Tescom. The current balance in this fund is $2872.23. 6. Consider Results of Appraisal Authorized May 9, 1994 to Estimate the Fair Market Value of the Proposed Business Park Property Bill Rubin noted that the Business Park Task Force negotiating subcommittee will be meeting with Panger/Benson on Friday, June 17, 1994, for an overview of the appraisal for the proposed 35-acre Business Park. Bill explained that the committee likely bring back to the EDA a recommendation for accepting the appraisal as well as a recommendation to authorize an offer for purchasing the property in question. Commissioner Dwyer stated that members of the subcommittee will be asking for clarification on issues in the appraisal and will go over some of the conclusions that were made. 7. Discuss Status of EDA Main Street Redevelopment Site Bill Rubin introduced this item for discussion. He explained that the City Council requested that this item be placed on the June 13, 1994 EDA agenda. Commissioner Scheel questioned what had become of the concept of redeveloping the entire block. Bill Rubin stated that there was some interest in late 1989 or early 1990, which later evolved to a riverwalk concept. Following a public hearing, the riverwalk proposal was turned down. Bill further stated that interest continues for some type of redevelopment project along the area in question. Commissioner Scheel stated that she felt the whole area is going to be a problem area unless something is done to it. President Gongoll stated that several of the business owners in this area are interested in a redevelopment project, but feel they cannot afford to fund it themselves. Commissioner Dwyer indicated that the downtown seems to be turning into a more service-oriented district, with retail moving out to the commercial areas along Highway 169. Commissioner Duitsman explained that Street/Park Superintendent Phil Hals has learned of a source to obtain fill material at no cost or very little cost. He indicated that an idea has been suggested to fill in the hole at the redevelopment site by terracing the fill material in several levels, creating a park-like setting. Commissioner Duitsman stated that this proposal is not intended to be a permanent solution, as he felt the site should be used for development. However, he feels that it is an eyesore and if something can be done to improve the appearance at a reasonable cost, they should proceed. EDA Minutes June 13, 1994 Page 3 However, questions need to be answered including how much it would cost to put in the fill and how much it would cost to take it out again. Discussion followed regarding repayment of the $110,000 in TIF funds, in lieu of redeveloping the site, where the funds would come from to complete the interim improvements to the site, and past use of TIF funds for park land improvements and acquisition. Commissioner Dwyer expressed his concern that the fill be compacted to meet engineering standards for construction of a building at some future date. Commissioner Dietz expressed his concern that something be done now to improve the appearance and safety of the site. Commissioner Duitsman stated that he felt the proposal to improve the site should be backed by the EDA and if the EDA did not want to fund it, then the City Council should consider funding it. COMMISSIONER DIETZ MOVED TO AUTHORIZE THE STREET/PARK SUPERINTENDENT TO PREPARE COST ESTIMATES FOR FILL, TERRACING AND LANDSCAPING IMPROVEMENTS FOR THE MAIN STREET REDEVELOPMENT SITE, AND ALSO TO PREPARE COST ESTIMATES FOR REMOVING THE IMPROVEMENTS, SHOULD A BUYER REQUIRE THE REMOVAL. COMMISSIONER DUITSMAN SECONDED THE MOTION. THE MOTION CARRIED 6-0. 8. Consider 1994 Novelty Marketing Concepts Bill Rubin presented samples of the following novelty marketing items proposed for 1994: a small compass with Elk logo, coat/jacket thermometer, first aid kit, and a miniature flashlight. COMMISSIONER DWYER MOVED TO AUTHORIZE THE PURCHASE OF SMALL ZIPPERED FIRST-AID KITS WITH THE CITY OF ELK RIVER LOGO AND ADDRESS ON THEM, TO BE DISTRIBUTED AS A MARKETING TOOL. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Consider 1994 Leqislative Summary Bill Rubin reviewed information on 1994 legislative issues regarding TIF. 10. Consider City Attorney's Opinion on Conflict of Interest A. Prospect Status Report Sill Rubin stated that the City Attorney's opinion concludes that President Gongoll is not in violation of any conflict of interest regarding the Prospect Status Report, so long as the general public has access to that same document. He recommended that the EDA not distribute the confidential report for discussion as a regular agenda item, thereby meeting the Data Privacy test. He further recommended that in order to comply with the Open Meeting Law, any information distributed prior to a meeting must be made available to the public. EDA Minutes June 13, 1994 Page 4 Discussion followed regarding various options for distributing information on companies expressing interest in locating in Elk River, while maintaining some confidentiality. The EDA further discussed what type of report they would like and what information it should contain. COMMISSIONER DIETZ MOVED AUTHORIZE THE EDA EXECUTIVE DIRECTOR TO PREPARE A GENERIC MONTHLY PROSPECT STATUS REPORT, TO BE SENT TO THE EDA UNDER SEPARATE COVER AND NOT DISCUSSED AS A REGULAR AGENDA ITEM. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0. B. Conflict of Interest President Gongoll stated that it has been difficult not to take this issue personally. He stated that as Peter Beck generally pointed out, there is no .conflict of interest, since he does not have ownership in Riverside Development Company and his salary is not based on commission. President Gongoll continued to say that both verbal and written perceptions were made based on petty jealousy and the simple lack of any relevant facts, and that it wasn't until he decided to join Riverside that this issue was raised. President Gongoll explained that he has worked hard to improve the tax base in Elk River by serving in his position on the EDA. President Gongoll further stated that he was hired by Riverside to represent them before municipal organizations, including planning commissions, eda's, parks commissions, etc. As such, he indicated that if the City Attorney has determined this to be in violation of the conflict of interest ordinance, he has little choice but to resign from his position on the EDA. President Gongoll stated that the City's Conflict of Interest Ordinance could have broad ramifications, as the Ordinance affects several persons serving on every board or commission in the City. Commissioner Dwyer stated that he would have a problem with his position on the EDA, since he is a minority interest owner of the Bank of Elk River. He further stated that the Ordinance specifies a City official may not have ownership in a company that has direct dealings with the City, and it that is the case, how is this issue going to be resolved. He further questioned how is the City going to find people with expertise in a small town who don't have some perceived conflict of interest to serve on board and commissions. He continued to say that in his case, it would not be realistic to ask the Bank of Elk River to sever its ties with the City, so that he could serve on the EDA. Commissioner Dwyer questioned whether or not it was the Council's intent to have such a restrictive ordinance. Commissioner Scheel stated that it was her understanding that some of the restrictions were part of the State Statutes. EDA Minutes June 13, 1994 Page 5 --------------------------------------- Commissioner Dwyer stated that the City Attorney opinion refers to the City Ordinance, not State Statutes. Commissioner Holmgren stated that it was not the intent of the Council when the Conflict of Ordinance was introduced, to focus on technicalities that would disqualify decent, honest people in the community that wish to serve on appointed commissions. He further stated that the main focus was on elected officials. Commissioner Dietz asked Commissioner Holmgren if this was the basic ordinance the County has, which he presented to the City Council. Commissioner Holmgren stated that approximately two years ago, he gave copies of the County's ordinance to members of the City Council, to be used as a guideline. He stated that the City Attorney then drafted an ordinance which the Council later adopted. Discussion followed regarding the conflict of interest issue. COMMISSIONER SCHEEL MOVED THAT THE EDA RECOMMEND TO THE CITY COUNCIL THAT THE COUNCIL CONSIDER REVISING THE CITY'S CONFLICT OF INTEREST ORDINANCE; SPECIFICALLY, THAT THE ORDINANCE BE MADE LESS RESTRICTIVE REGARDING APPOINTED OFFICIALS AND THEIR EMPLOYMENT ASSOCIATIONS. COMMISSIONER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. PRESIDENT GONGOLL ABSTAINED. 12 . Adiournment There being no further business, COMMISSIONER DUITSMAN MOVED THAT THE MEETING BE ADJOURNED. COMMISSIONER HOLMGREN 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, JJdIxi 1~ Debbie Kleckner Recording Secretary