03-09-1998 EDA MIN - SPECIAL
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SPECIAL WORKSESSION MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL - TRAINING ROOM
MONDAY, MARCH 9, 1998
Members Present:
President Duitsman. Commissioners Dwyer, Holmgren. Farber.
Gongoll. Thompson. Bender
Members Absent:
None
Staff Present:
Paul Steinman, Director of Economic Development; Pat Klaers. City
Administrator; Steve Ach. City Planner; Peter Beck. City Attorney;
Lori Johnson. Assistant City Administrator; Dave MacGillivray. Bond
Consultant; Bryan Adams, Elk River Municipal Utilities Manager;
Debbie Huebner. Recording Secretary
Also Present:
Pat Pelstring, Pelstring Capital Corp.; Tony Gleekel; and Jim
Winkles, AmCon
1 . Call Meetina To Order
Pursuant to due call and notice thereof. the meeting of the Economic
Development Authority was called to order at 4:30 p.m. by President Dwyer.
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2.
Consider 3/9/98 Aaenda
COMMISSIONER GONGOLL MOVED TO APPROVE THE MARCH 9. 1998 SPECIAL EDA
WORKSESSION. COMMISSIONER SECONDED THE MOTION. THE MOTION CARRIED
7-0.
3. Summary of Issues for Discussion - Paul Steinman
Paul Steinman. Executive Director. reviewed information relative to the tax
increment financing request for a project at Highway 169 and Main Street as
outlined in his memo to the EDA dated 3/9/98.
4. Analvsis of TIF Reauest - David MacGillivrav. Sprinasted. Inc.
Dave MacGillivray reviewed the mechanics of a redevelopment district. noting
that 90% of the funds must be used to correct substandard conditions. He
explained funds could be used for roads. curb and gutter. turn lanes. improving
substandard utilities, etc. He felt the City may not be able to include the entire 40
acre proposed business park in the redevelopment district. President Duitsman
indicated most of the work would be done in the commercial area. Mr.
MacGillivray indicated that if the goals is to provide the infrastructure. it would be
best to pursue a redevelopment district.
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Discussion followed regarding the business park component of the proposed
project and the higher standards of the business park zoning versus light industrial
zoning districts.
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5.
Industrial Component of Proiect - Pat Pelstring, Representina Associated Builders
Pat Pelstring used a color-coded map to review the area of discussion; the
commercial area shown in orange, the business park in blue, and the area
proposed to be included in the T1F district. but not under option with the
developer, shown in pink. Mr. Pelstring stated 25 acres of the proposed 40 acre
business park would be developable, and possibly as much as 30-32 acres. He
distributed copies of estimated development costs for a proposed 25 acre
business park. Mr. Pelstring estimated development of the site, installation of
utilities and marketing costs at $1.57 million. He estimated development costs
would be $9.5 million for the commercial project.
Mr. Pelstring noted that Matt Fisher of Associated Developers has expressed his
willingness to either work jointly with the EDA on the business park, or to work with
a private builder.
Jim Winkles of AmCon indicated their company is approximately 25 years old and
has offices in the metro area and Wisconsin. He stated they have a building in
the Anoka business park and are going to be building in Ramsey. Mr. Winkles
estimated AmCon stays involved in tenant leasing for approximately 50% of the
buildings they construct. He felt the Elk River area is growing and would provide
the necessary labor pool for projects they might construct. Mr. Winkles discussed
land values in Ramsey and Anoka.
Tony Gleekel indicated Associated Developers has a signed purchase agreement
with the Vandenberg's for the 40 acres under discussion for the business park
project.
Discussion followed regarding benefit of this proposed TIF project to the City.
President Duitsman felt the extension of utilities provides motivation to pursue the
project. Paul Steinman indicated the industrial development component
provided benefit. as well.
It was the consensus of the EDA Commissioners to favor a public/private
partnership for development of the business park and to move forward with
researching the establishment of a redevelopment tax increment financing
district for this project.
COMMISSIONER GONGOLL MOVED TO DIRECT STAFF TO PROCEED WITH THE
FOLLOWING STEPS:
. FINANCIAL DUE DILIGENCE
. STATUTORY REQUIREMENTS TO QUALIFY THE TIF DISTRICT AND ESTABLISH THE
BOUNDARIES OF THE DISTRICT
. RESEARCH DEVELOPMENT/OWNERSHIP OPTIONS FOR THE BUSINESS PARK
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
6. Future Steps in Process - Paul Steinman
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COMMISSIONER DWYER MOVED CALL A SPECIAL EDA WORKSESSION MEETING ON
MONDAY, APRIL 13, 1998 AT 4:30 P.M. BEFORE THE REGULAR EDA MEETING.
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 7-0.
7.
Adiournment
There being no other business, PRESIDENT DUITSMAN ADJOURNED THE MEETING.
The meeting of the Elk River Economic Development Authority adjourned at 5:48 p.m.
Respectfully submitted,
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Debbie Huebner
Recording Secretary