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10-14-1997 EDA MIN e MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL TUESDAY, OCTOBER 14, 1997 Members Present: Chair Dwyer, Commissioners Farber, Gongoll, Thompson, Duitsman and Bender (Commissioner Bender arrived at 6:22 p.m.) Members Absent: Commissioner Holmgren Staff Present: Paul Steinman, Director of Economic Development; Pat Klaers, City Administrator; 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 6:00 p.m. by Chair Dwyer. 2. Consider Aaenda e COMMISSIONER GONGOLL MOVED TO APPROVE THE OCTOBER 14, 1997, EDA AGENDA. COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Consider Consent Aaenda COMMISSIONER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. CHECK REGISTER - APPROVED 3.2. SEPTEMBER 8, 1997 EDA MINUTES - APPROVED COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. Open Mike No one appeared for Open Mike. 7. Community Venture Network Presentation Leonard Kirscht and Dennis Welch of Public Resource Group, Inc. were present. Mr. Kirscht briefed the EDA on the background of Public Resource Group company. He then proceeded to discuss the different aspects of the Community Venture Network program. He explained that the purpose of the program is to assist outside (non-metro) communities in identifying potential business prospects. Mr. Kirscht indicated that the annual cost for the program is $3,850, and member communities are guaranteed introduction to a minimum of 24 prospects per year. e President Dwyer suggested trying the program for a one year. Elk River Economic Development Authority October 14, 1997 Page 2 e COMMISSIONER DUITSMAN MOVED TO JOIN THE PUBLIC RESOURCE GROUP FOR A ONE YEAR TRIAL AND TO HAVE THE EXECUTIVE DIRECTOR NEGOTIATE THE FEE FOR THE PROGRAM, COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5. West Business Park Develooment Aareement (Commissioner Bender arrived at this time - 6:22 p.m.) Paul Steinman indicated that staff has met with Tony Emmerich who owns property in the West Business Park. He stated that staff is considering a possible joint development agreement with Mr. Emmerich. Mr. Steinman explained that a draft development agreement has been prepared by the City Attorney. Tony Emmerich indicated that he has reviewed the document and is in agreement with the elements of the draft development agreement. Paul Steinman indicated that the city is also dealing with Mr. Emmerich and another property owner in the business park regarding a possible EDA land purchase with excess tax increment dollars. It was the consensus of the EDA to authorize staff to proceed with the finalization of the joint development agreement and to continue discussions regarding the possible land purchase in the west business park. e 6. Micro Loan Reauest Paul Steinman indicated that the EDA Finance Committee met on October 9, to review a micro loan request of $50,000 from Gregg Karnis to construct an Italian restaurant to be located in Sax Foods. Paul Steinman explained that the Finance Committee recommended denial of the request as a majority of the committee members felt that this type of use was not a high priority within the guidelines of the micro loan fund. The Committee also based its decision on the review of the financial information. It was the consensus of the Committee that the project would likely proceed with or without the EDA micro loan. Commissioner Farber indicated that the EDA should refine the policy explaining qualifications for the micro loan fund. Discussion was held by the EDA regarding previous micro loans that have been given to similar requests such as LaRose's Pizza, the Olde Main Eatery and the Diamond City Bread. Commissioner Bender indicated that the Finance Committee based its decision on the feeling that the micro loan fund is leaning more toward industrial uses and targeted areas. Commissioner Bender also indicated that the Committee based its decision on its intent to follow the strategic plan. COMMISSIONER DUITSMAN MOVED TO DENY THE MICRO LOAN REQUEST OF $50,000 FOR GREGG KARNIS BASED ON THE DECISION AND FINDINGS OF THE EDA FINANCE COMMITTEE. COMMISSIONER GONGOLL SECONDED THE MOTION. e Elk River Economic Development Authority October 14. 1997 Page 3 e Commissioner Farber indicated that he would like to see that the door is kept open to Mr. Karnis in case he runs into financial difficulty. Paul Steinman ensured the Commission that Mr. Karnis has been informed that he has the ability to come back before the EDA. THE MOTION CARRIED 5-0-1. COMMISSIONER DWYER ABSTAINED. 8. T1F Application - Dave Decker President Dwyer indicated that Dave Decker has made application for tax increment financing in the amount of $160,000 for a light industrial building on Highway 10. Paul Steinman reviewed the TIF schedule which has been prepared to establish Tax Increment District No. 17. COMMISSIONER GONGOLL MOVED TO BEGIN THE TIF PROCESS FOR THE APPLICATION SUBMITTED BY DAVE DECKER AND TO REQUEST THE CITY COUNCIL TO CALL A PUBLIC HEARING TO BE HELD ON FEBRUARY 17, 1998, FOR THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 17. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 9. Review Reauest for Contribution to Central Minnesota Initiative Fund e Paul Steinman explained that the City has received a request from the Central Minnesota Initiative Fund for a contribution in the amount of $19,929 to be paid over a three year period. The contribution will be used to support the Sherburne County Capacity Fund Campaign. He stated that the City Council has requested the EDA to review this request and forward a recommendation to the City Council. It was the consensus of the EDA that the Central Minnesota Initiative Fund provides a valuable resource for the City. The EDA consented that a contribution should be made. President Dwyer suggested that a $5,000 contribution be made with $2,500 from the Council and $2,500 from the EDA. COMMISSIONER GONGOLL MOVED TO RECOMMEND THAT THE CITY COUNCIL SUPPORT A LUMP SUM CONTRIBUTION OF $5,000 TO THE MINNESOTA CENTRAL INITIATIVE FUND WITH ONE HALF OF THE MONEY TO COME FROM THE EDA AND THE OTHER HALF TO COME FROM THE CITY. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 10. Prospect Report/Activity Update Paul Steinman verbally updated the EDA on business prospects and activities. 11 . Other Business Paul Steinman updated the EDA on the following issues: e . reviewed information on business prospects which was included in the EDA packets. e e e Elk River Economic Development Authority October 14, 1997 Page 4 . informed the EDA that he is anticipating receiving a T1F request on the Hohlen property in November . requested the EDA to call a special meeting to discuss refunding of City Hall bonds COMMISSIONER GONGOLL MOVED TO CALL A SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY FOR MONDAY, OCTOBER 20,1997, AT 5:45 P.M. TO TAKE ACTION ON THE REFUNDING OF CITY HALL BONDS. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 6-0. City Administrator Pat Klaers requested clarification as to funding for donation to Central Minnesota Initiative Fund and for the fee to join the Public Resource Group. It was the consensus of the EDA that half the donation to the Central Minnesota Initiative Fund would come from the 1997 EDA budget and the Public Resource Group fee would come from the 1997 EDA budget. 12. Adiournment There being no further business, COMMISSIONER FARBER MOVED TO ADJOURN THE ECONOMIC DEVELOPMENT AUTHORITY MEETING. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0. The meeting of the Elk River Economic Development Authority adjourned at 7:00 P.M. Respectfully submitted, ~J21.4 '::#"acJze/1 ~ 11 /J ~andra Thackeray ()/"~ City Clerk