11-13-1996 EDA MIN
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SPECIAL MEETING OF THE ELK RIVER
ECONOMIC DEVELOPl\fENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, NOVEMBER 13, 1996
Members Present:
President Gongoll, Commissioners Bender,
Duitsman, Dwyer and Holmgren
Members Absent:
Commissioners Scheel and Farber
Staff Present:
Paul Steinman, Executive Director; Pat Klaers, City Adminfstrator;
and Debbie Kleckner, Recording Secretary
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 5:30 p.m. by President Gongoll.
2. Consider Aaenda
COMMISSIONER DWYER MOVED TO APPROVE THE 11/13/96 EDA AGENDA.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
.
3.
Consider EDA Consent Aqenda
COMMISSIONER BENDER MOVED TO APPROVE THE EDA CONSENT AGENDA AS
fOLLOWS:
3.1. OCTOBER 14, 1996, EDA MINUTES -- APPROVED
3.2. EDA CHECK REGISTER -- APPROVED
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.
4. Open Mike
No one appeared for this item.
5. Discussion - Strateqic Planninq Process Update
Paul Steinman explained the progress made to date by the Economic
Development Strategic Planning Task Force.
Paul referred the Commissioners to information in their packet which identifies the
representation of the Task Force, SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats), the 26 major economic development issues identified
by the Task Force, and draft mission statement. Paul explained that this
information will be presented to the following groups for input:
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. City Council
. Economic Development Authority
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November 13, 1996
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. Housing and Redevelopment Authority
. Utilities Commission
. Rivers Edge Downtown Development Corporation
. Chamber of Commerce Board of Directors
Paul noted the four major issues identified by the Task Force as follows:
1 . Industrial Base
2. Internal Business Retention/Growth
3. East Highway 10- Development/Redevelopment
4. Downtown Redevelopment
The next step in the process includes completing a specific action plan for each
of these four issues.
Commissioner Holmgren questioned at what point the EDA may actively begin
recruiting companies to relocate in Elk River. Paul noted the city is currently
actively involved in business recruitment. Commissioner Bender explained a plan
to increase industrial development has yet to be determined which all groups
and committees in the city will support, which will include recruitment. business
incubator program, and the energy city element.
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Commissioner Duitsman indicated there will be some minor changes made to the
mission statement. but that it generally approved by consensus by the Task Force
members.
It was the consensus of the EDA Commissioners to support the Strategic Planning
Task Force's progress to date, as well as the mission statement.
6. Discussion - Business Incubator Proqram
Paul explained the parameters of the proposed business incubator program, the
anticipated time frame from securing space to lease-up, the financial
implications of the project, and potential funding sources for the project as
explained in the staff report to the EDA dated November 5, 1996. Paul reviewed
financial projections for the business incubator.
Commissioner Duitsman questioned why the energy city element was left out,
and, whether or not the rental is comparable to market rates. Paul noted that
energy city-related businesses are certainly part of the prospective market but
that the intent is not to leave out other potential businesses. Harlan Jacobs,
representing Genesis Business Centers, explained the rental rate is very favorable
and the EDA should not have a problem filling space.
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Discussion followed regarding rental spaq:e needs of prospective businesses, costs
of site improvements, and improvement l,:osts that may not be recaptured. Pat
Klaers noted there will be approximately $51,000 that will not be recaptured.
Possible sources of funding are the EDA Rieserve fund, possible changes in the
micro loan bylaws which would allow the city to use that source, as well as the
DTED loan fund. Paul explained the DTED loan fund is made up of federal dollars
granted to the city and loaned to Tescom. Tescom is paying back that loan at
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November 13, 1996
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approximately $2,500 per month and this fund totals approximately $75,000 at this
time. With the proper documentation, $50,000 of this fund could be used to
finance the business incubator project.
Discussion followed regarding risks and rewards associated with the business
incubator project.
COMMISSIONER BENDER MOVED THE EDA PROCEED WITH THE BUSINESS INCUBATOR
PROJECT AS OUTLINED IN THE STAFF REPORT. COMMISSIONER DUITSMAN SECONDED
THE MOTION. THE MOTION CARRIED 5-0.
Commissioner Holmgren requested that Paul provide information regarding lease
hold improvement costs at the next EDA meeting. He also recommended that
Paul check with Sherburne County regarding projected property taxes for the
next 2 - 3 years.
8. Adiournment
There being no further business, COMMISSIONER HOLMGREN MOVED TO ADJOURN
THE MEETING. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
The meeting of the Elk River Economic Development Authority adjourned at 6:20 p.m.
Respectfully submitted,
. [Ji,t,.e" 'Ij1te~
Debbie Kleckner
Recording Secretary
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