06-02-1997 EDA MIN - SPECIAL
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SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT
AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 2, 1997
Members Present:
President Dwyer. Commissioners Holmgren. Bender. Thompson. and
Duitsman. Commissioner Farber arrived at 5:10 p.m.
Members Absent:
Commissioner Gongoll
Staff Present:
Paul Steinman. Director of Economic Development; Pat Klaers. City
Administrator; Terry Maurer. City Engineer; Steve Ach. City Planner;
Debbie Kleckner. Recording Secretary
Also Present:
Gerald Duffy. representing Associated Developers
1. Call Meetina To Order
Pursuant to due call and notice thereof. the special meeting of the Economic
Development Authority was called to order at 5:00 p.m. by President Dwyer.
2.
Consider 6/2/97 EDA Aaenda
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COMMISSIONER DUITSMAN MOVED TO APPROVE THE JUNE 2. 1997. EDA AGENDA.
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3.
Discuss Concept of Tax Increment District for the Earl Hohlen Proiect
Paul explained the requirements which need to be met in order to qualify the site
as a redevelopment tax increment financing district. He noted benefits might
include financing the extension of trunk utilities and construction costs for a
portion of the road extension south from County Road 12. Paul indicated that if
the EDA proceeded with the T1F concept. there would need to be an industrial
component for the project with some type of city ownership.
Gerald Duffy. representing the developers of the Hohlen property project.
explained issues that have arisen since the developer signed a purchase
agreement with Mr. Hohlen; (1) Originally. Mr. Hohlen agreed to be responsible for
moving the mobile home park. Adoption of an ordinance by the City Council
has now placed that financial responsibility on the developer. (2) Additional
expenses will be placed on the developer for improvements to the Highway 169
and Main Street intersection. Mr. Duffy estimated these additional costs total
approximately $250.000. Mr. Duffy indicated it would be necessary to purchase
additional property from the VandenBergs in order to provide an industrial site for
this project. He felt that due to the additional costs being placed on the
developer. the project will not proceed without financial assistance from the city.
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The EDA and staff discussed the concept of an industrial park with Mr. Duffy. Mr.
Duffy indicated the developer was willing to either sell the industrial site to the city
or work in partnership with the city to develop an industrial park. Members of the
EDA Special Meeting
June 2. 1997
Page 2
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or work in partnership with the city to develop an industrial park. Members of the
EDA expressed their support for some type of partnership agreement. Further
discussion followed regarding T1F for a project. Chair Dwyer indicated he felt the
mobile home park would certainly qualify as a redevelopment site.
Mr. Duffy explained the proposed project would likely consist of two "big box"
commercial retail sites, approximately 15 other retail uses including a bank, gas
station, 2 Class I restaurants, 1 or 2 video rental stores, and possibly a motel. In
discussing the power lines issue, Mr. Duffy stated the cost to move the power lines
has been estimated between $350,000-$400,000.
Mr. Duffy indicated there is a slight possibility of acquiring the "park and ride"
property from the State of Minnesota, in exchange for a parcel near the County
Road 12 and 13 intersection.
Members of the EDA concurred an industrial focus must be a part of the project
in order for the EDA to consider its financial participation.
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Commissioner Farber questioned the status of the mobile home park at this time.
Mr. Duffy stated the developer made an agreement with Mr. Hohlen to purchase
the property after the mobile home park was removed. He explained since there
was no deadline established with Mr. Hohlen. the developer has no plans to
proceed until more information is available on infrastructure costs, an agreement
has been reached with the city. and they have received a satisfactory
environmental report on the soils. Mr. Duffy indicated he will be discussing the
mobile home park issue with the city's attorney. Dave Sellergren.
The EDA and Mr. Duffy discussed architectural standards for the retail
development and industrial park. Mr. Duffy stated he felt it was important the
back side of the retail center be aesthetically pleasing since it would be facing
the residential development. He expressed support for requiring similar design
and architecture standards throughout an industrial park.
4. Adiournment
There being no further business. COMMISSIONER THOMPSON MOVED TO ADJOURN
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
The special meeting of the Elk River Economic Development Authority adjourned at 6: 1 0
p.m.
Respectfully submitted.
,OJ/v 1ftz~'L
Debbie Kleckner
Recording Secretary
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