09-08-1997 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 8, 1997
Members Present:
Chair Dwyer; Commissioners Holmgren, Farber. Gongoll, Thompson,
Duitsman, and Bender
Members Absent:
None
Staff Present:
Paul Steinman, Director of Economic Development; Sandra
Thackeray. City Clerk; Pat Klaers, City Administrator
1. Call Meeting 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 9/8/97 EDA Aaenda
COMMISSIONER GONGOLL MOVED TO APPROVE THE 9/8/97 EDA AGENDA.
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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3.
Consider Consent Agenda
COMMISSIONER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. EDA CHECK REGISTER - APPROVED
3.2. 8/11/97 EDA MINUTES - APPROVED
3.3. 8/19/97 EDA BUSINESS INCUBATOR ADVISORY BOARD MINUTES - APPROVED
3.4. 8/21/97 FINANCE COMMITTEE MINUTES - APPROVED
3.5. 8/25/97 CITY COUNCIL ENERGY CITY MINUTES - APPROVED
3.6. 9/2/97 FINANCE COMMITTEE MINUTES - APPROVED
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. ODen Mike
No one appeared for this item.
5. 1998 Business Incubator Budget
Director of Economic Development Paul Steinman reviewed the incubator
budget for 1997, 1998, and 1999. The Economic Development Director explained
that the incubator budget has been converted from a lease year to a calendar
year. Paul Steinman requested the EDA to approve the 1998 business incubator
budget.
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COMMISSIONER FARBER MOVED TO APPROVE THE 1998 BUSINESS INCUBATOR
BUDGET IN THE AMOUNT OF $63,500. COMMISSIONER BENDER SECONDED THE
MOTION. THE MOTION CARRIED 7-0.
Elk River Economic Development Authority Meeting
September 8. 1997
Page 2
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6.
Micro Loan Aoolication - Olde Main Eatery and Sweet Shoooe, Inc.
Director of Economic Development Paul Steinman stated that the Finance
Committee met to review.an application for a micro loan by The Olde Main
Eatery and Sweet Shoppe. The loan request is for $50,000 for a 15 year term at a
fixed interest rate of 6 percent. The purpose of the loan is to move The Olde Main
Eatery's current business operations into 313 Jackson A venue. The money will be
used to facilitate the purchase, remodeling, and furnishing of the building at 313
Jackson Avenue. Paul Steinman explained that the micro loan would be in
conjunction with bank financing and personal equity.
Paul Steinman indicated that the EDA Finance Committee unanimously
recommended that the EDA proceed with a loan in the amount of $50,000.
COMMISSIONER BENDER MOVED TO APPROVE A LOAN IN THE AMOUNT OF $50,000
AT PRIME INTEREST RATE (CURRENTLY 8.5%) WITH A 15 YEAR AMORTIZATION AND
FIVE YEAR BALLOON FOR THE OLDE MAIN EATERY AND SWEET SHOPPE, INC.
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
7.
Strateaic Plannina Issues - Hohlen Prooertv/Wilson Prooertv Rezoninas
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Discussion was held regarding the recent denials of zone changes by the
Planning Commission and Council for property designated to be rezoned to
industrial and business park according to the Economic Development Strategic
Plan. The EDA reviewed the Council's recent decision to deny a zone change for
the Hohlen property and the Planning Commission's recommendation for denial
to rezone the Wilson property.
Commissioner Dwyer questioned the Council's reasoning for denying the zone
change on the Hohlen property and requested the Council to consider
approving the rezoning change for the Wilson property. Commissioner Dwyer
indicated that it is important for the city to look to the future and rezone property
when necessary in order to keep the options open for these types of
developments.
Commissioner Holmgren indicated that the Strategic Plan is a good plan, but
rezoning the property ahead of time and banking it would increase the taxes on
the property due to loss of agricultural status.
Commissioner Dwyer indicated that the reason for the Strategic Plan is to find
land for the future. Commissioner Dwyer suggested defining businesses that
would fit into the business park to make the public more aware of the types of
businesses that would actually be proposed for the area.
Commissioner Bender indicated he was surprised at the attitude of the Council
and Planning Commission regarding the Hohlen property rezoning. He further
stated he was in favor of rezoning property in order to bank the land for future
use. He requested the City Council to support the Strategic Plan.
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Commissioner Thompson indicated he was in favor of rezoning the Wilson
property.
Elk River Economic Development Authority Meeting
September 8. 1997
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8.
Discuss Ootions for Exoenditure of Excess TIF Dollars from TIF District NO.5 (Alltooll
Director of Economic Development Paul Steinman stated that T1F District No.5 is
scheduled to decertify on December 31, 1997. He further stated that at the time
of decertification it is projected that the District will have approximately an
excess of $247,000. He further indicated that these excess TIF dollars will be
available to utilize on eligible TIF activities anywhere within the city limits of the
City of Elk River. The EDA discussed possible eligible uses for these funds which
have been identified by staff. EDA supported an approach to work with West
Business Park property owners on a potential purchase with these excess dollars.
COMMISSIONER GONGOLL MOVED TO CALL FOR A PUBLIC HEARING TO BE HELD
ON DECEMBER 1, 1997, TO MODIFY TAX INCREMENT FINANCING DISTRICT NO.5
AND FURTHER THAT ADDITIONAL DISCUSSION SHOULD TAKE PLACE IN ORDER TO
PRIORITIZE ELIGIBLE USES FOR THE EXCESS TIF FUNDS. COMMISSIONER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
9.
Discuss Community Venture Network Meetina Attended by Pat DWYer and Paul
Steinman
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President Dwyer and Economic Development Director Paul Steinman informed
the EDA that they attended a Community Venture Network meeting which was
sponsored by Public Resource Group, Inc. It was indicated that this is a program
for communities outside the seven county metro area which matches business
leads to interested communities. Both Paul Steinman and President Dwyer
indicated they were impressed with the program and proposed to have a
representative from the group to speak to the EDA at its next meeting. President
Dwyer recommended that the EDA consider redirecting some of its marketing
money and to cut back on some advertisement purchases so that the EDA can
join the program and give it a try for one year. He indicated that the cost is
$3,800 per year which may be negotiable.
It was the consensus of the EDA to have a representative from Public Resource
Group, Inc., at the next EDA meeting.
10. Discuss Chanqes to EDA Enablinq Resolution
City Administrator Pat Klaers indicated that when the Council approved a pay
increase for the EDA in April, 1996, to $150 per month, it was done without
modifying the EDA Enabling Resolution. The City Administrator explained that the
EDA Enabling Resolution will need to be modified if it is the consensus of the EDA
to continue receiving the increase amount of $150 per month.
COMMISSIONER GONGOLL MOVED TO RECOMMEND THAT THE CITY COUNCIL
MODIFY THE EDA ENABLING RESOLUTION TO REFLECT A $150 PER MONTH PAYMENT.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
11.
Promect Reoort/Activity Uodate
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Economic Development Director Paul Steinman reviewed the Prospect Report
and Activity Update.
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Elk River Economic Development Authority Meeting
September 8. 1997
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12.
Other Business
Industrial Park Prosoect - Paul Steinman informed the EDA that he has been
working with a prospect for the Industrial Park.
West Business Park Develooment Marketina Aareement - Paul Steinman informed
the EDA that he has had meetings with Mr. Emmerich to discuss the Business Park
development agreement issue. He indicated that he has requested Mr.
Emmerich to attend the next EDA meeting to discuss these issues with the EDA.
Chanqe October EDA Meetina to Tuesdav. October 14, 1997
COMMISSIONER HOLMGREN MOVED TO CALL A SPECIAL MEETING OF THE EDA ON
TUESDAY, OCTOBER 14, 1997, AT 6 P.M., AT CITY HALL. COMMISSIONER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
Attornev Fees - President Dwyer questioned City Attorney Peter Beck in that the
EDA has not received a reply to the letter sent to him regarding legal fees. City
A ttorney Peter Beck indicated that the fees have been reviewed and it has been
determined that the fees in question are justified. Peter Beck indicated that he
would send a response in writing to this effect. President Dwyer requested that
the reply from the city attorney be sent to the EDA by the next EDA meeting.
13.
Adiournment
There being no further business, COMMISSIONER FARBER MOVED TO ADJOURN THE
MEETING. COMMISSIONER HOLMGREN SECONDED THE MEETING. THE MEETING
CARRIED 7-0.
The meeting of the Elk River Economic Development Authority was adjourned at
7:10p.m.
Respectfully submitted,
~~J-dL
City Clerk