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04-08-1996 EDA MIN e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, APRIL 8, 1996 Members Present: President Gongoll. Commissioners Duitsman, Bender, Dwyer and Scheel Members Absent: Commissioners Farber and Holmgren Staff Present: Pat Klaers. Executive Director; and Sandra Thackeray, City Clerk 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 6:20 p.m. by President Gongoll. 2. Consider Aaenda The Executive Director requested that Item #10 be moved to follow item #5 on the agenda and to add Item 8.1. "Consideration of Private Developers Agreement" . e COMMISSIONER DUITSMAN MOVED TO APPROVE THE EDA AGENDA AS AMENDED. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider Consent Aaenda COMMISSIONER BENDER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 4. FEBRUARY 12, 1996, REGULAR EDA MEETING MINUTES .. APPROVED MARCH 11, 1996, REGULAR EDA MEETING MINUTES -. APPROVED MARCH 25, 1996, SPECIAL EDA MEETING MINUTES -- APPROVED 6. EDA CHECK REGISTER -- APPROVED COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5. aDen Mike No one appeared for this item. 10. Discussion with City Consultant Harlan Jacobs on the Business Incubator Proaram The Executive Director introduced the City Consultant Harlan Jacobs and Roger Jenson. President of the Anoka County Capital Fund. The Executive Director indicated that Harlan Jacobs has been contracted by the City to pursue the development of a business incubator program. e Harlan Jacobs spoke about the possible use of the county administration building as a home for the business incubator program. Mr. Jacobs indicated that the county building would be an ideal location. however, there are several concerns that must be considered. The major concern is that the County could sell the Economic Development Authority Minutes April 8, 1996 Page 2 e building at any time. Harlan Jacobs suggested the possibility of forming an Elk River Development Corporation and purchasing the county building or a similar building outright. It was the consensus of the EDA to continue exploring all building options. Roger Jensen reviewed the need to identify new investors for the Capital Fund. 7. Consider Recommendation to City Council to Terminate TIF District No. 12 INeos) Executive Director Pat Klaers requested the EDA to recommend that the City Council terminate Tax Increment Financing District No. 12. He indicated that the Neos project was not constructed and therefore the District was never certified to the County and no increments were collected. COMMISSIONER DWYER MOVED TO RECOMMEND THAT THE CITY COUNCIL APPROVE A RESOLUTION TERMINATING TIF DISTRICT NO. 12. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8. Public Hearina on Tax Increment Financina for Tax Increment Financina District No. 14 I Marketech, Inc. Proiect) e Executive Director Pat Klaers reviewed the request for Tax Increment Financing District No. 14 from Marketech, Inc. He explained that the request is from Rich Duggan, owner of Marketech, Inc. Marketech needs more room for expansion. Mr. Duggan is proposing to construct a 9,324 square foot office and manufacturing facility on Lots 6 and 7, Block 1, McChesney Industrial Park. Pat Klaers indicated that the total market value of the project is about $400,000. Mr. Duggan is requesting $65,100 in tax increment financing assistance. The tax increment funds would be used to write down the cost of the land on a pay-as- you-go basis for this project. The Executive Director explained that Marketech would retain its existing 22 jobs and create 13 new jobs over the next three years. The Executive Director explained that because the City is the local unit of government creating the District it is responsible for fulfilling the penalty clause as required by state law. Pat Klaers suggested that the Council opt out of the local government aide penalty by making a qualified 10% contribution to the District. President Gongoll opened the public hearing. Rich Duggan introduced himself as owner of Marketech and indicated that the company needs room for expansion an city financial help to do the project. There being no further comments, President Gongoll closed the public hearing. e COMMISSIONER SCHEEL MOVED TO ADOPT EDA RESOLUTION 96-2, A RESOLUTION FOR THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA RELATING TO THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 14 AND THE ADOPTION AND APPROVAL OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Economic Development Authority Minutes April 8, 1996 Page 3 e COMMISSIONER BENDER MOVED TO RECOMMEND THAT THE CITY COUNCIL SELECT THE OPTION-OUT PROVISION FOR MAKING A QUALIFYING LOCAL CONTRIBUTION OF 10 PERCENT OF THE TAX INCREMENT FINANCING ASSISTANCE TO THE DISTRICT USING FUNDS THAT WERE GENERATED FROM THE LAND SALE OF THE INDUSTRIAL PARK LOT TO THE SCHOOL DISTRICT. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 8.1. Consider Contract for Private Development Executive Director Pat Klaers distributed a Contract for Private Development by and between the City of Elk River, the Economic Development Authority for the City of Elk River, and Marketech, Inc. The EDA reviewed the Contract for Private Development. COMMISSIONER BENDER MOVED TO APPROVE THE CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF ELK RIVER, THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, AND MARKETECH, INC. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 9. Consider Reauest for Tax Increment Financina Assistance for Jerry McChesney- McChesney Cabinets e President Gongoll indicated that the EDA has received a verbal request for TIF assistance from Jerry McChesney. President Gongoll stated that the EDA discussed this issue at a worksession and indicated its approval of helping to keep Jerry McChesney's business in the community. He stated that a formal TIF application is anticipated some time soon. 11. Update on the Sustainable City Showcase Proiect Executive Director Pat Klaers updated the EDA on the Sustainable City Showcase selection process. He indicated that it is possible that the selection will be made soon. 12. Update on TL Feedina Systems - TIF District No. 13 Commissioner Duitsman updated the EDA on the TL Feeding Systems development project which is planned to take place on the west end of Business Center Drive. Commissioner Duitsman indicated that TL Feeding will be expanding from its original proposal. 13. Discussion on Strateaic Plan for City Economic Development Proaram President Gongoll indicated that in the process of working with the consultant in the hiring of a director of economic development it was determined that the city lacked an overall economic development strategic plan. The EDA reviewed the proposal from the Brimeyer Group to develop a strategic plan for economic development for the City. e Commissioner Bender indicated his concern that the new EDA director be involved in this process. e e e Economic Development Authority Minutes April 8. 1996 Page 4 Commissioner Duitsman discussed the presentation from Hoisington Koegler to the HRA on the redevelopment of the downtown area. He indicated that a vision needs to be created for the downtown area. It was the consensus of the EDA that the strategic plan process be delayed until the hiring of the Director of Economic Development. It was also the consensus of the EDA that the Hoisington Koegler presentation on the downtown area be incorporated in the strategic planning process and that the focus be on industrial and central business needs. It was indicated that both the EDA and HRA should be involved in this process. 14. Other Business The Executive Director updated the EDA on the following topics: . Status of the Director of Economic Development Executive Search . Status of the EDA Micro Loan Fund and Department Finances . HRA Discussions on a King and Main Redevelopment Site . HRA Discussions on the Riverfront Pathway Project . Status of the MSF Prospect . Update on the Status of the Roma Tool Loan . Update on the Scott Abernethy Prospect 15. Staff Updates There were no staff updates. 16. Adiournment There being no further business, COMMISSIONER DWYER MOVED TO ADJOURN THE EDA MEETING. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River Economic Development authority was adjourned at 7:40. Respectfully submitted. # Sandra Thackeray City Clerk s: \minutes \ed040896.doc