03-09-1998 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MARCH 9, 1998
Members Present:
President Duitsman, Commissioners Dwyer, Holmgren, Farber,
Gongoll, Thompson and Bender
Members Absent:
None
Staff Present:
Paul Steinman, Director of Economic Development; Debbie
Huebner, Recording Secretary
Also Present:
Gary Santwire, representing David Decker; Harlan Jacobs, EDA
Business Incubator Consultant: Michael and Maureen Gill of
Watermark, LLC
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 Duitsman.
2.
Consider 3/9/98 Aaenda
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COMMISSIONER BENDER MOVED TO APPROVE THE MARCH 9, 1998, EDA AGENDA.
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 7-0.
3.
Consider 3/9/98 Consent Aaenda
COMMISSIONER DWYER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
'",
3.1. FEBRUARY 9, 1998, EDA MINUTES - APPROVED
3.2. EDA CHECK REGISTER - APPROVED
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. Open Mike
No one appeared for open mike.
5. Consider David Decker Development Aareement
Paul Steinman, Executive Director, reviewed background information regarding
the 25,000 square foot multi tenant industrial project located on Highway 10,
proposed by David Decker.
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COMMISSIONER BENDER MOVED THE EDA AUTHORIZE EXECUTION OF THE
CONTRACT FOR PRIVATE REDEVELOMENT BY AND BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER AND DAVID P.
DECKER. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 5-0-2. Commissioners Dwyer and Gongoll abstained.
EDA Minutes
March 9. 1998
Page 2
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6.
Consider David Decker $50.000 Micro Loan Reauest
Paul Steinman indicated the $50,000 micro loan will be used to cover part of the
gap between the bank financing and the equity to be invested by David and
Jeannette Decker for their project. Total project costs are anticipated to be
approximately $899,000. The EDA Finance Committee supports approval of the
loan request with the following details:
. 20 year amortization with a 5 year balloon
. prime interest rate - currently 8.5% - fixed for the 5 year balloon period
. personal guarantees
. collateral to be a second mortgage position on land and buildings
COMMISSIONER HOLMGREN MOVED THE EDA APPROVE THE S50,000 MICRO LOAN
TO DAVID DECKER AS PART OF THE OVERALL PROJECT FINANCING FOR THE DECKER
25,000 SQUARE FOOT INDUSTSRIAL PROJECT. COMMISSIONER BENDER SECONDED
THE MOTION. THE MOTION CARRIED 5-0-2. Commissioners Dwyer and Gongoll
abstained.
7.
Consider Business Incubator Lease - Watermark. LLC
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Paul Steinman indicated that staff has been working with Watermark, LLC as a
potential business incubator tenant. He explained Watermark currently is a
manufacturer of underwater camera products which are marketed to schools
and used as training devices for the swimming industry. Paul noted the following
activities have been completed:
. approval of a $25.000 investment by the Anoka/Sherburne County Capital
Fund
. approval of a $25.000 investment by the Central Minnesota Initiative Fund -
Seed Fund Program
. recommendation by the Incubator Advisory Board that the EDA approve
Watermark as a business incubator tenant
Paul reviewed components of the draft Sublease and Memorandum of
Understanding as outlined in his memo to the EDA dated March 4, 1998.
Michael and Maureen Gill of Watermark, LLC provided information regarding
their products. An underwater video was viewed by the Commissioners which
was taken with an underwater video camera produced by Watermark. The Gills
explained that they will be expanding their product line to include an underwater
video fish finder.
Harlon Jacobs expressed his endorsement for Watermark, LLC as a business
incubator tenant.
COMMISSIONER GONGOLL MOVED THE EDA AUTHORIZE EXECUTION OF A SUBLEASE
AND MEMORANDUM OF UNDERSTANDING WITH WATERMARK, LLC. COMMISSIONER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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EDA Minutes
March 9. 1998
Page 3
8.
Other Business
MAS Technoloaies
Harlan Jacobs indicated MAS Technologies has expressed their desire to work out
a lease agreement for space at the EDA Business Incubator site. It was the
consensus of the Commissioners for staff to pursue a lease agreement with MAS
Technologies.
9. Adiournment
There being no other business, COMMISSIONER BENDER MOVED TO ADJOURN THE
MEETING. COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Elk River Economic Development Authority adjourned at 6:42 p.m.
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Debbie Huebner
Recording Secretary