12-08-1997 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 8, 1997
Members Present:
President Dwyer. Commissioners Holmgren. Gongoll. Thompson.
Bender and Duitsman
Members Absent:
Commissioner Farber
Staff Present:
Paul Steinman. Director of Economic Development; Debbie
Huebner. Recording Secretary
Also Present:
Charles Christian
1. Call Meetina To Order
Pursuant to due call and notice thereof. the meeting of the Economic
Development Authority was called to order at 6:00 p.m. by President Dwyer.
2.
Consider 12/8/97 Aaenda
COMMISSIONER HOLMGREN MOVED TO APPROVE THE DECEMBER 8. 1997. EDA
AGENDA WITH THE FOLLOWING ADDITION:
- ITEM 9.2. - BUSINESS INCUBATOR UPDATE
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consider Consent Aaenda
COMMISSIONER BENDER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. NOVEMBER 10. 1997. EDA MINUTES - APPROVED
3.2. EDA CHECK REGISTER - APPROVED
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. West Business Park Issues, Elk River Industrial Park Lot
Paul Steinman indicated approximately $195,000 is available from Tax Increment
District #5. The Commissioners discussed options presented by staff for
expenditure of the funds in the West Business Park, and/or repayment to the EDA
for purchase of the Elk River Industrial Park lot.
Paul explained that if $65,000 of the excess TIF funds are used to repay the EDA for
the purchase of the Industrial Park lot. state law would not allow establishing a
new tax increment district for a project on this site. An alternative would be to
establish a new TIF district for the Industrial Park lot when a project moves forward.
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December 8, 1997
Page 2
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Paul indicated the major risk would be if future legislative modifications were
made to T1F disallowing this activity.
Paul explained that if $65,000 of the excess T1F funds were used to repay the EDA,
$130,000 would be left to purchase land for development of the West Business
park. Paul reviewed issues associated with Emmerich property and Chuck
Christian's purchase agreement for the Gagne property as outlined in memo to
EDA. Paul noted the EDA needs to spend or commit the excess TIF funds by end
of this year or they will be lost.
Paul reviewed the recommendations on page 5 of the staff memo.
President Dwyer indicated he supported use of the $195,000 in the West Business
Park.
Commissioner Duitsman felt using the funds in the West Business Park would be in
the best interest of the City. Commissioner Gongoll indicated use of the funds in
this manner would be consistent with the City's Strategic Planning goals.
It was the consensus of the EDA Commissioners to use the excess TIF funds for the
West Business Park.
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Charles Christian stated the City's purchase of the 4.4 acre parcel from him rather
than Emmerich would be helpful since Mr. Gagne (Christian has a purchase
agreement with Gagne) has indicated he wishes to sell his entire 20 acres.
Paul explained staff is working with three developers and a business entity
interested in leasing approximately half of a 30,000 square building on the
Industrial Park lot.
COMMISSIONER BENDER MOVED TO APPROVED THE FOLLOWING:
1. THAT 100 PERCENT OF EXCESS TIF FUNDS FROM DISTRICT NO.5 BE USED FOR
A LAND PURCHASE IN THE WEST BUSINESS PARK.
2. THAT STAFF FINALIZE NEGOTIATIONS AND EXECUTE A PURCHASE AGREEMENT
WITH MR. TONY EMMERICH FOR PURCHSE OF APPROXIMATELY 4.4 ACRES AT
$1 PER SQUARE FOOT FOR A LOT WHICH FRONTS ON JOPLIN STREET.
3. THAT STAFF PROCEED WITH CREATION OF A NEW TAX INCREMENT DISTRICT
ON THE INDUSTRIAL PARK LOT AT SUCH TIME WHEN A FORMAL REQUEST FOR
ASSISTANCE IS RECEIVED.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
5.
Approve Resolution Moditvina Development District NO.1 and Establishina Tax
Increment Financina District # 17
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Paul Steinman reviewed the schedule for establishment of TIF District No. 1 7 as
outlined in his memo to the EDA. He explained the reason for electing to take the
local contribution rather than a reduction in state aids, and how the local
contribution would be made. Staff projects a payoff of the $160,000 request in
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December 8. 1997
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5 - 7 years. Paul noted a Development Agreement would be required which
requires the developer lease to eligible recipients of tax increment as identified
by State Statute.
COMMISSIONER GONGOLL MOVED APPROVAL OF RESOLUTION 97-4, A
RESOLUTION MODIFYING DEVELOPMENT DISTSRICT NO.1 AND ADOPTING THE
DEVELOPMENT PROGRAM THEREFORE: AND ESTABLISHING WITHIN DEVELOPMENT
DISTSRICT NO.1, TAX INCREMENT FINANCING DISTRICT NO. 17, AND ADOPTING
THE RELATED TAX INCREMENT FINANCING PLAN THEREFOR. COMMISSIONER
THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 6-0.
6. Request City Council to Call for Public Hearina on April 6. 1998. to Establish Tax
Increment Financina District #18. {Morrell Companiesl
Commissioner Duitsman explained that the application by Morrell Companies
indicates a requested tax increment subsidy of approximately $300.000. He
indicated the City's interest in consideration of this request is to facilitate the
relocation of Morrell Transfer from School Street and Jackson Avenue to their
new site. Commissioner Duitsman questioned whether or not the closure of the
existing operation can be tied into approval of Morrell's request.
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President Dwyer indicated a verbal agreement has been made to vacate the
present trucking operation. The Morells have indicated they plan to continue to
operate the storage facility and possibly expand it. Commissioner Duitsman
indicated he would like to see language included in the development
agreement to clean up the property. Paul felt a development agreement
would allow the flexibility to include stipulations regarding the present operation.
Paul suggested a work session in January be added to the proposed scheduled
to discuss/negotiate issues.
COMMISSIONER THOMPSON MOVED TO REQUEST THE CITY COUNCIL TO CALL FOR
A PUBLIC HEARING TO BE HELD ON APRIL 6, 1998 TO ESTABLISH TAX INCREMENT
FINANCING DISTRICT NO. 18 (MORRELL COMPANIES). COMMISSIONER GONGOLL
SECONDED THE MOTION.
Terry Morrell indicated he supported holding a work session with the EDA and
staff to discuss their project.
President Dwyer suggested an agreement be included to ensure that when the
trucking site is relocated. the existing site be cleaned up. Terry Morrell indicated
cleaning up the site would be in their best interests for better marketability of the
site.
Terry Morrell stated he was not prepared to discuss a need for TIF for
redevelopment of the Jackson and School Street site. He indicated the
property will be sold. but the timing and redevelopment plan is not clear at this
time. Mr. Morrell added they would like to expand mini storage and square off
the property.
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Commissioner Holgrem expressed his concern that all the "cottage" businesses at
site (i.e., firewood. etc.) be relocated or discontinued.
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December 8. 1997
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THE MOTION CARRIED 6-0.
7.
Show New Marketinq Video
The EDA Commissioners, staff and audience reviewed the updated City of Elk
River marketing video. Commissioner Duitsman suggested when the industrial
rezonings are completed which were recommended in the Strategic Plan. that
information should be included in the video.
8. Prospect Reoort/Activitv Uodate
Paul Steinman verbally updated the EDA on business prospects and activities.
President Dwyer noted Paul Steinman is working with a startup molding company,
located at Custom Cutter Grinding.
9. Other Business
9.1. Outcome of Request for Attornev Fee Adiustment on Micro Loan Bill
Chair Dwyer indicated a $200 adjustment will be made in the billing from the City
Attorney for work completed on a micro loan application, reducing the amount
from $700 to $500.
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9.2.
Business Incubator Uodate
2 companies interested in locating in Elk River will be requesting funding from the
Anoka Sherburne Capitol Fund. One company manufactures a half step stair
system. The other company produces a video camera fish finder.
10. Adiournment
There being no other business. COMMISSIONER GONGOLL MOVED TO ADJOURN
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
The meeting of the Elk River Economic Development Authority adjourned at 7: 16
p.m.
:U;;SU~
Debbie Huebner
Recording Secretary
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