06-08-1998 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JUNE 8, 1998
Members Present:
President Duitsman, Commissioners Bender, Dwyer, Gongoll
Holmgren and Thompson
Members Absent:
Commissioner Farber
Staff Present:
Paul Steinman, Director of Economic Development; Pat Klaers, City
Administrator; Debbie Huebner, Recording Secretary
Also Present:
Tony Gleekel, Associated Builders; Mark Winkelhake, Springsted,
Inc.
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 6/8/98 Aaenda
COMMISSIONER DWYER MOVED TO APPROVE THE JUNE 8, 1998, EDA AGENDA
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3.
Consider Consent Aaenda
COMMISSIONER HOLMGREN MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. MAY 11, 1998 EDA MINUTES - APPROVED
3.2. EDA CHECK REGISTER - APPROVED
COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
5.
Review Hohlen Redevelopment Proiect and Draft TIF Plan
Mark Winkelhake of Springsted, Inc. reviewed Tax Increment Financing (TIF) Plan
No. 19. He indicated it appears the district wi! qualify with the boundaries as
shown on the Exhibit 1 map. Paul Steinman, Director of Economic Development.
explained that the TIF plan enables the city to negotiate other agreements which
are necessary for the project. including a PUD agreement and developer's
agreement. A time period of 25 years is allowed for the plan to be in effect but
the plan may be decertified before that. Mr. Winkelhake explained it is not
anticipated bonds will be issued but the city reserves that right within the plan.
EDA Meeting Minutes
June 8. 1998
Page 2
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He further explained it is more economically feasible for the city to make a
contribution equaling 5% of the increment. in order not to lose state aid funding.
Commissioner Dwyer questioned how the "pay as you go" affects interest. Mr.
Winkelhake explained the developer will be providing his own financing.
Commissioner Holmgren questioned whether or not the boundaries of the TIF
District can be changed. Mr. Winkelhake indicated that changes in the
boundaries, as well as in the budget, can only be made within the first 5 years
after the plan is implemented. Paul Steinman explained that the plan was
structured for the existing development proposal and no other requests have
come forward at this time. He added that although the plan is set up for 25
years, it may only be in effect 15 to 18 years. Paul stated that at present value,
the developer's proposal would create a $10 million tax increment revenue
stream. He added that the developer's request doe not include the industrial
park development, which would be an additional $600,000 (land only - this figure
does not include infrastructure). Paul stated that in order for the industrial
component to develop, the land will likely need to be provided at no cost. He
noted they are still in the process of establishing the redevelopment findings.
Commissioner Bender asked what would happen if the proposal does not qualify.
Paul indicated that without the commercial component, the industrial park
would not proceed.
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Tony Gleekel, Associated Builders, indicated the site plan has been submitted to
AMCON and the pro forma will be available to Paul this week (week of June 8th).
He stated AMCON is confident the site will support their proposal. Mr. Gleekel
indicated the site plan has not changed, other thaI') the location of the "big box"
users.
Discussion followed regarding the timing of the project and infrastructure issues.
Paul indicated a worksession may be scheduled upon receipt of the pro forma.
6. Other Business
Community Venture Network Meeting on June 17. 1998 - Paul indicated he is
unable to attend this meeting. President Duitsman and Commissioners Gongoll
and Dwyer indicated they plan to attend the meeting.
Incubator Open House Update - The Business Incubator open house is scheduled
for Thursday, June 11 from 4 to 7 p.m.
7. Adiournment
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EDA Meeting Minutes
June 8. 1998
Page 3
There being no other business, COMMISSIONER HOLMGREN MOVED TO ADJOURN
THE MEETING. COMMISSIONER GONGOLL SECONDED THE OTION. THE MOTION
CARRIED 6-0.
The meeting of the Elk River Economic Development Aut ority adjourned at 6:53
p.m.
Respectfully submitted,
/J~' ~
Debbie Huebner
Recording Secretary