Loading...
12-12-1994 EDA MIN MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY DECEMBER 12, 1994 Members Present: President GongolL Commissioners Scheel, Dietz, Dwyer, Duitsman, and Farber Members Absent: Commissioner Holmgren Staff Present: Bill Rubin, Executive Director; Sandra Thackeray, City Clerk 1. Call Meetina To Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 5:30 p.m. by President Gongol!. 2. Consider 12/12/94 EDA Aaenda The following items were added to the EDA agenda per request of the executive director: 9.1 Consider request by R & D Sales to have the EDA execute 0 subordination agreement regarding financing; 9.2 General update on the City's review and permitting process. COMMISSIONER DWYER MOVED TO APPROVE THE DECEMBER'12, 1994 AGENDA AS AMENDED. COMMISSIONER DUITSMAN SECONDED THE MOTION. MOTION CARRIED 6-0. 3. Consider 10110/94 EDA Minutes It was noted that the day on the EDA minutes should be chanqed from Monday to Tuesday. It was further noted that there was 0 typo -in the motion under item number 9. COMMISSIONER DWYER MOVED TO APPROVE THE NOVEMBER 15, 1994, EDA MINUTES AS AMENDED. COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 6-0. 4. Open Mike No one appeared for this item. 5. Consider December EDA financial update Executive Director Bill Rubin provided the EDA with a verbal summary of the December financial update. EDA Minutes December 12, 1994 page 2 Micro-Loan Fund - The Micro-Loan Fund had a cash balance of $120,054.33 on November 30, 1994. As of Thursday, December 8, 011 December payments are current except Alltool and Water Laboratories. A check for $50,000 for the Auto Mall was cut in November. Block Grant Micro-Loan Fund - The Block Grant Micro-Loan Fund had a cash balance of $17,878.11 on November 30, 1994. Bill Rubin informed the EDA that the statement of expenses payable will be provided to the EDA for review and approval at a later date. 6. Consider an amendment to the EDA bylaws reaardina the time of the annual meetina Executive Director Bill Rubin informed the EDA that in order to change the annual meeting time from 7:00 p.m. to 6:00 p.m., a bylaw amendment would be necessary. Bill Rubin provided the EDA with a draft of the proposed amendment to section 2.5 (01) of article two for consideration by the EDA. COMMISSIONER DWYER MOVED TO APPROVE AN AMENDMENT REVISING 2.5 (01) OF ARTICLE TWO OF THE EDA BYLAWS TO REFLECT THAT THE ANNUAL MEETING BEGINS AT 6:00 P.M. COMMISSION FARBER SECONDED THE MOTION. MeilON CARRIED 6-0. 7. Discuss potential publiclprivate partnerships related to the development of the Business Park Bill Rubin updated the EDA on the amount of tax increment financing available from Districts No. 1 and NO.3 for use in the business park. He noted that $300,000 has been allocated for TIF No. 1 and TIF NO.3 and that these funds are limited to land purchases only. Bill Rubin further indicated that there is approximately $430,000 from TIF District No. 4 that has been allocated to the development toward a business park/Senior High School. He noted that uses of these1unds must be consistent with the objectives of the TIF Plan for TIF NO.4. The Executive Director stated that with the business park zoning a reality, it is important to begin contemplating how the City and the EDA can assist the business park owners and developer to ensure the success of the business park. Bill Rubin gave some suggestions as to what public/private partnerships may include. He further suggested referring this matter to the Business Park Task Force for further review of the matter. He indicated that city staff will meet with land owners in order to get an idea of what the land owner's and developer's expectations might be. COMMISSIONER SCHEEL MOVED TO REFER THE ISSUE OF PUBLIC/PRIVATE PARTNERSHIPS TO THE BUSINESS PARK TASK FORCE FOR FURTHER CONSIDERAtiON WITH THE ISSUE BEING REVIEWED AT THE EDA'S JANUARY MEETING. COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 6-0. EDA Minutes December 12, 1994 page 3 8. Consider conveyina Lot 1, Block 2, Elk River Industrial Park 2nd Addition to Tescom Corporation in accordance with TIF Plan NO.9 Bill Rubin review the land purchase scenarios which were presented to T escom for the purchase of Lot 1, Block 2, of Elk River Industrial Park 2nd Addition for T escom' s future expansion. Bill Rubin stated the best option is to convey Lot 1 to Tescom by way of Quit Claim Deed and recover the value of Lot 1 through Tescom's Tax Increment payments. He further explained that because Lot 1 was not referenced in the contract for private development by and between the EDA and Tescom Corporation, an addendum to this agreement is recommended. He stated that the addendum will ensure that the conveyance and development of Lot 1, is consistent with TIF Plan NO.9. Following discussion of this issue, there was a concern among the EDA that the land could remain vacant or that Tescom could sell the land. Bill Rubin explained that an addendum to the agreement would include certain restrictions placed on the resale of Lot 1, during the life of TIF District NO.9. COMMISSIONER DWYER MOVED TO CONVEY LOT 1, BLOCK 2, ELK RIVER INDUSTRIAL PARK 2ND ADDITION TO TESCOM CORPORATION, 12161 INDUSTRIAL BOULEVARD, BY WAY OF QUIT CLAIM DEED, SUBJECT TO THE EXECUTION OF AN ADDENDUM TO THE CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE ELK RIVER EDA AND TESCOM CORPORATION. COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 5-1. COMMISSIONER DIETZ OPPOSED. 9. Other Business Executive Director Bill Rubin reminded the EDA of its annual meeting to be held January 9,1995 at 6:00 p.m. President Gongoll requested the EDA consider holding quarterly workshops and also it consider the possibility of term limits for its main officers. He indicated that these issues would be discussed at the EDA annual meeting on January 9, 1995. 9.1 Consider reauest by R & D Sales to have the EDA execute a subordination aGreement re<;)Ordina refinancina Executive Director Bill Rubin indicated that Rich & Dawn Schulz of R & D Sales are requesting the EDA subordinate its mortgage position in order for the First National Bank of Elk River to be in first lien position. COMMISSIONER FARBER MOVED THAT THE EDA SUBORDINATE ITS MORTGAGE POSITION TO R & D SALES. COMMISSIONER DWYER SECONDED THE MOTION. MOTION CARRIED 6-0. 9.2 Update on City's review and permittina process Executive Director Bill Rubin updated the EDA on the progress of the City's review and permitting process. EDA Minutes December 12, 1994 page 4 10. Adjournment There being no further business, Commissioner Dwyer MOVED TO ADJOURN THE MEETING. Commissioner Duitsman SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the EDA adjourned at 6: 15 p.m. Respectfully submitted, Sandra Thackeray City Clerk s:minutes\edo 12-12