03-11-1996 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MARCH 11, 1996
Members Present:
President Gongoll, Commissioners Dwyer, Holmgren, Farber,
Duitsman, Bender and Scheel
Members Absent:
None
Staff Present:
Pat Klaers, Executive Director; Sandra Thackeray, City Clerk; Steve
Rohlf, Building and Zoning Administrator
1. Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 6:00 p.m. by President Gongol!.
2. Consider Aaenda
COMMISSIONER FARBER MOVED TO APPROVE THE EDA AGENDA. COMMISSIONER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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3.
Consider Consent Aaenda
All items were taken from the consent agenda and considered individually.
4. February 12, 1996, EDA Minutes
COMMISSIONER FARBER MOVED TO TABLE ACTION ON THE FEBRUARY 12, EDA
MINUTES SO THAT STAFF COULD CHECK ON THE ACCURACY OF THE MOTION UNDER
ITEM #7. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
March 4, 1996, EDA Minutes
COMMISSIONER DWYER MOVED TO APPROVE THE MARCH 4, 1996, CITY COUNCIL
MINUTES. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED
7-0.
5. Open Mike
No one appeared for this item.
6.
Check Reaister
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COMMISSIONER FARBER MOVED TO APPROVE THE CHECK REGISTER.
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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March 11, 1996
Page 2
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7. Sustainable City Showcase
Building and Zoning Administrator Steve Rohlf explained that the concept of a
Sustainable City Showcase is to make Minnesota internationally known for energy
efficient and renewable energy technologies. This process includes designating
one city in Minnesota as a Sustainable City Showcase. Steve Rohlf introduced Ed
Palmer who owns a business in Otsego and is on the Sustainable City Showcase
committee.
Ed Palmer indicated that he would like to promote Elk River as a candidate for
the Sustainable City Showcase. He indicated that Elk River was a viable
candidate. Mr. Palmer requested the EDA's support in the form of a letter and/or
resolution.
COMMISSIONER DUITSMAN MOVED TO AFFIRM THE STRONG SUPPORT OF THE EDA
TOWARD THE CONCEPT OF ELK RIVER BECOMING A SUSTAINABLE CITY SHOWCASE
AND TO SUBMIT A LETTER INDICATING THE CITY'S SUPPORT AND FURTHER TO ADOPT
EDA RESOLUTION 96-1, A RESOLUTION OF SUPPORT FOR THE SUSTAINABLE CITY
SHOWCASE. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
8.
Consider Reauest for Tax Increment Financino Assistance from Marketech, Inc. -
Rich Duooan
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Executive Director Pat Klaers explained that Rich Duggan of Marketech has
made a request for tax increment financing. He indicated that Marketech is an
existing growing company which needs room for expansion. Rich Duggan is
proposing to construct a 9,300 square foot facility on Lots 6 & 7, Block 1 of the
McChesney Industrial Park. The Executive Director indicated that staff is
recommending that the city offer a TIF subsidy of 17 percent which is 2 percent
over the 15 percent maximum stated in the T1F policy. He indicated that the
extra 2 percent is recommended to encourage and support the expansion into
the McChesney Industrial park, the pay-as-you-go approach and the city's strong
commitment for business retention and growth.
Commissioner Dwyer indicated his support and stated that he would like to see
funds available for this type of request. He suggested that the funds from the sale
of the city property to the school district be available for the local contribution
requirement associated with this type of project. It was suggested that this local
contribution issue be discussed at the next City Council capital improvement
meeting.
COMMISSIONER HOLMGREN MOVED THE FOLLOWING:
· TO AUTHORIZE THE PREPARATION OF TIF PLAN FOR MARKETECH, INC.,
EXPANSION;
· TO SCHEDULE A PUBLIC HEARING FOR APRIL 8, 1996, TO CONSIDER THE
ADOPTION OF THE TIF PLAN;
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Economic Development Authority Minutes
March 11,1996
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· TO APPROVE AND RECOMMEND THAT THE CITY COUNCIL APPROVE A
DEVIATION FROM THE TIF POLICY AND ALLOW A 17 PERCENT MAXIMUM TIF
SUBSIDY;
· TO RECOMMEND THAT THE CITY COUNCIL APPROVE THE MARKETECH CMIF
LOAN REQUEST RESOLUTION
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
9. Discussion of March 4, 1996, Business Incubator Worksession
Discussion was held regarding the business incubator concept that was reviewed
at the March 4, 1996, business incubator worksession. President Gongoll indicated
that this type of activity should be pursued by the EDA. He indicated that the
City needs to consider issues such as available space; types of companies the
city will be pursuing; local investment; and whether the County wishes to be
involved in the process. Commissioner Holmgren suggested organizing a
subcommittee to begin the process for this type of project. President Gongoll
suggested inviting Harlan Jacobs to speak to the EDA regarding the formation of
a task force. March 25 was suggested for this meeting, however, the meeting
was not officially called at this time.
COMMISSIONER BENDER MOVED TO FORM A BUSINESS INCUBATOR SUBCOMMITTEE
CONSISTING OF THE FOLLOWING MEMBERS:
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.
JEFF GONGOLL
HANK DUITSMAN
PAT DWYER
PAT KLAERS
.
.
.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
COMMISSIONER BENDER MOVED TO AUTHORIZE THE BUSINESS INCUBATOR
SUBCOMMITTEE TO EXTEND UP TO $5,000 ON AN AGREEMENT WITH HARLAN
JACOBS. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
10. Other Business
· Commissioner Duitsman indicated that Paul LeFebvre and Larry Morrell have
indicated that they are interested in relocating their trucking businesses to the
eastern area of the city. He further indicated that the city currently has a
moratorium on development in the eastern part of the city until municipal sewer
and water is available. Commissioner Duitsman stated that Mr. LeFebvre and Mr.
Morrell indicated that they would be willing to sign a document to reimburse the
city for utility costs if and when utilities are extended east. Commissioner
Duitsman requested the EDA to consider the possibility of allowing the business to
be located under these circumstances.
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.
Commissioner Duitsman informed the EDA that he has been appointed to the
Region 7W Transportation Committee.
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March 11, 1996
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· Commissioner Duitsman indicated that he has been contacted by a carbonate
lens manufacturer who is interested in locating in Elk River.
11. Staff Uodates
The Executive Director updated the EDA on several topics of interest that were
listed in the memorandum to the Economic Development Authority dated March
11. 1996.
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12. Adiournment
There being no further business. COMMISSIONER FARBER MOVED TO ADJOURN THE
MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the EDA adjourned at 6:53 p.m.
Respectfully submitted.
~:;;4~
Sandra Thackeray
City Clerk
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