08-11-1997 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 11, 1997
Members Present:
President Dwyer, Commissioners Thompson, Farber and Bender
Members Absent:
Commissioners Gongoll. Holmgren and Duitsman
staff Present:
Paul Steinman, Director of Economic Development; Debbie
Kleckner. Recording Secretary
Also Present:
Harlan Jacobs, Genesis Business Centers, Ltd.
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 8/12/97 Aaenda
COMMISSIONER FARBER MOVED TO APPROVE THE AUGUST 12, 1997, EDA AGENDA
WITH THE FOLLOWING CHANGES:
- MOVE ITEM 7 FOR DISCUSSION BEFORE ITEM 3.
- ADD ITEM - DISCUSS POSSIBLE TIF REQUEST FROM DAVE DECKER AND
GARY SANTWIRE
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 4-0.
7. Review and Discuss Business Incubator Activities - Harlan Jacobs
Harlan Jacobs updated the EDA Commissioners on the Business Incubator project
as follows:
SolarAttic. Inc. has moved into their space at the Incubator site. They are moving
forward with a public stock offering via the internet.
MAS T echnoloaies. a food package testing company currently located in
Zumbrota. MN had originally planned to be occupying space by August 1st.
Delays are being experienced due to changes within the company as well as
potential investments from the Food Fund.
Viroaen - Mr. Jacobs explained Virogen is awaiting U.S.D.A. approval for their
process of vaccinating poultry invitro. He indicated that due to space needs,
Virogen will not be locating in the Incubator site but staff is working with a local
property owner to locate space for this company. Mr. Jacobs noted that Virogen
has asked him to serve on their board of directors.
Bio-Enera. Inc. - This prospect is a company which produces a product called
rybose made from corn by-products. Rybose is formulated for nutra-cuetical use.
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EDA Meeting Minutes
August 11. 1997
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Sleep Systems, Inc. - This business is currently a home-based business in Plymouth,
MN. Halo has designed a product to be used in crib mattresses which draws
carbon dioxide away from a child's head. Research has indicated cases of
Sudden Infant Death Syndrome (SIDS)are linked to an excess buildup of carbon
dioxide when a child is sleeping. This product is designed as part of mattress
system, drawing carbon dioxide away from child's head.
Greener Pastures - This company uses natural substances such as gluten (a
byproduct of wheat) as a lawn supplement and garden treatment. Greener
Pastures would possibly utilize space as a dispatch and operations center.
MediCord - The company intends to produce a basal body temperature
recording device. Mr. Jacobs indicated he is working to have the Central MN
Initiative Fund hear their presentation for possible financing assistance.
Color Presentations - This company has patented a process for prototypes for
food labels. They are looking at leasing space on the 2nd floor of the Incubator
building. Paul Steinman indicated Color Presentations may be submitting an
application for admittance into the incubator in the near future.
Discussion followed regarding the Elk River Investment Club. Mr. Jacobs indicated
the initial 4 boardmembers will include Dennis Chuba, Larry Hickman, Richard
Gongoll, Bud Houlton and membership will be open to any accredited investor.
Chair Dwyer noted the Investment Club is a private entity and is not associated
with the EDA.
3.
Consider Consent Aoenda
COMMISSIONER BENDER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. EDA CHECK REGISTER - APPROVED
3.2. JULY 14, EDA MINUTES - APPROVED
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0.
4. Open Mike
No one appeared for open mike.
5. Review/Approve 1998 Economic Development Authority Budoet
Paul reviewed various budget items with the Commissioners.
COMMISSIONER FARBER MOVED TO RECOMMEND APPROVAL OF THE 19978 BUDGET AND
RESOLUTION NO. 97--, A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, MINNESOTA.
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0.
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August 11, 1997
Page 3
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The EDA Commissioners requested that expenditures related to a downtown
Market Study be presented to the EDA for final approval before the expenditures
are made.
The EDA Commissioners discussed the Business Incubator budget. After further
discussion the EDA requested that staff provide more information regarding the
EDA Business Incubator 1998 Budget at the next meeting.
6. Review and Discuss Outline of Marketina Agreement for West Business Park
Paul reviewed the conceptual draft of the marketing agreement for the West
Business Park.
Chair Dwyer indicated he was not in favor of the EDA being the exclusive
marketing agent and felt it should be left open. Paul explained an exclusive
agreement would protect the City, in that the property owner could not sell the
property to another developer. Paul explained that the purpose of a marketing
agreement is to guarantee a purchase price, as well as allowing flexibility and
control in the marketing and sale of the property.
Paul reviewed Section D, Item I. of the marketing agreement outline prepared by
David Sellergren.
Paul explained Mr. Emmerich has indicated he has approximately $1.15 sq. ft.
invested in the property and a listing price has not been established at this time.
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Staff will be making modifications to the marketing agreement before sending to
Mr. Emmerich.
8.
Uodate Strateaic Plan nino Activities - Rezoninos and Central Business District
Paul indicated the City has initiated rezoning requests for two parcels, Area # 1
and Area #4 identified in the Economic Development Strategic Plan to business
park. Paul noted the Planning Commission approved rezoning of the Hohlen
property to light industrial. He stated the request for the Wilson property
(approximately 80 acres along County Road 30 and Waco Street) was postponed
and will be coming back to the Planning Commission on August 26th.
9. Micro Loan Fund Guideline Modifications
Paul reviewed the primary proposal modifications to the micro loan fund
guidelines:
1) Reduction of the interest rate to 3 points below prime
2) Allow for the possibility of loans greater than $50,000
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Paul indicated the intent is to utilize the micro loan fund as more of an incentive
loan rather than a "gap" loan. Commissioner Farber expressed concern for the
EDA's limited funds, and felt a cap should be placed on the amount of micro
loans. Paul indicated certain criteria would be established whereby the EDA may
increase the amount of a loan (Le., industrial project, building over 30,000 sq. ft. a
building vacant more than 1 year, etc.) Paul indicated that if the EDA were able
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August 11, 1997
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to offer a prospect more of an incentive, such as a $75,000 loan at 3 points
below prime, the prospect may choose Elk River over another community offering
less of an incentive. Commissioner Farber felt the EDA should use caution in
setting a maximum loan amount. Paul suggested a more accelerated
repayment schedule could be used for larger loans.
10.1.
Prospect Report! Activity Update
Paul provided an updated Economic Development prospect report and activity
update.
10.2. Possible TIF Reauest
Paul indicated Dave Decker, property owner across from Furniture and Things,
may be requesting Tax Increment Financing. In preparation for this request, it is
recommended the EDA ask the City Council to hold a public hearing,
establishing TIF District # 17, in September.
COMMISSIONER BENDER MOVED TO REQUEST THE CITY COUNCIL TO HOLD A PUBLIC
HEARING ON OCTOBER 6, 1997, TO ESTABLISH TAX INCREMENT FINANCING DISTRICT
#17. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Chair Dwyer indicated the October EDA meeting will need to be rescheduled
due to the Columbus Day holiday.
11.
Adjournment
There being no other business, COMMISSIONER FARBER MOVED TO ADJOURN THE
MEETING. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED
4-0.
The meeting of the Elk River Economic Development Authority adjourned at 7:25
p.m.
Respectfully submitted,
;f)dhifh~
Debbie Kleckner
Recording Secretary