08-10-1998 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 10, 1998
Members Present:
President Duitsman, Commissioners Bender, Dwyer, Farber,
Holmgren and Thompson
Members Absent:
Commissioner Gongoll
staff Present:
Paul Steinman, Director of Economic Development;
Pat Klaers, City Administrator; Debbie Huebner, Recording
Secretary
Also Present:
Michael Darger, Sherburne County Economic Development
Coordinator; Brian Jones, Supermats, 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 8/10/98 Aaenda
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COMMISSIONER FARBER MOVED TO APPROVE THE AUGUST 10,1998, EDA
AGENDA. WITH THE FOLLOWING AMENDMENT:
- ITEM 8.3. CHANGE IN CITY COUNCIL REGULAR MEETING DATES
COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consider Consent Aaenda
COMMISSIONER DWYER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. JULY 13, EDA MINUTES - APPROVED
3.2. EDA CHECK REGISTER - APPROVED
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
5.
Discuss Sherburne Countv Business Development Fund Proaram
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Michael Darger, Sherburne County Economic Development Coordinator,
reviewed the Sherburne County Business Development Fund proposal. He
explained that if the EDA supports the general concept, they may. at a later
EDA Minutes
August 10, 1998
Page 2
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date, ask that the EDA make a recommendation to the City Council to
participate as an investor in this program.
The Commissioners expressed concern what impact the program would have
on tax increment financing (TIF). Mr. Darger explained that the loan could be
used in addition to T1F. Discussion followed regarding use of funding for projects
outside of the city, and who would be contributing to the fund. Mr. Darger
noted that the participating lender would be absorbing some of the loss due to
the lower interest rate, but they would also have the opportunity to refinance
the participant at the end of the five years at market interest rates.
Mr. Darger indicated he will continue to update Paul Steinman on the progress
of the fund program.
6. Consider Resolution No. 98-4, Aoorovina Tax Increment Financina District No. 20-
Suoermats, Inc.
Paul Steinman explained that TIF No. 20 is proposed to be used to reimburse the
EDA for its purchase of the last remaining lot in the Elk River Industrial Park. Paul
noted that the City Council will hold a public hearing for TIF No. 20 on August 24,
1998. The project is proposed to generate approximately $34,000 in annual tax
revenues.
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Brian Jones, representing Supermats, Inc., explained he has been in the rubber
products manufacturing business 11 years which is currently located in Brooklyn
Center. Mr. Jones indicated he will have 10 employees to start and hopes to
expand to 24 in approximately a year. He noted that he will be leasing 10,000
square feet of space in the new 40,000 square foot building to a tenant with 10
employees. Commissioner Bender asked why type of building Mr. Jones is
proposing to build. Mr. Jones indicated he will likely be using tip-up concrete
panels. Mr. Jones explained that the concrete panels were only $3-$4 a square
foot more than metal construction.
COMMISSIONER BENDER MOVED TO APPROVE RESOLUTION 98-4 MODIFYING
DEVELOPMENT PROGRAM THEREFOR; AND ESTABLISHING WITHIN DEVELOPMENT
DISTRICT NO.1, TAX INCREMENT FINANCING DISTRICT NO. 20, AND ADOPTING THE
RELATED TAX INCREMENT FINANCING PLAN THEREFOR. COMMISSIONER DWYER
SECONDED THE MOTION. THE MOTION 6-0.
7. Consider Resolution No. 98-5, Aoorovina 1999 EDA Levv
Paul Steinman indicated that the city must certify its total 1999 proposed
maximum levy, including EDA and HRA levies, to Sherburne County By
September 15, 1998. He noted that specific budget issues will be discussed at a
later date.
COMMISSIONER DWYER MOVED TO APPROVE RESOLUTION 98-5 ESTABLISHING THE
TAX LEVY FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF ELK RIVER, MINNESOTA. COMMISSIONER FARBER SECONDED THE
MOTION. THE MOTION 6-0.
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EDA Minutes
August 10, 1998
Page 3
8.1.
Community Venture Network Meetinq
Paul Steinman noted that the Community Venture Network meeting will be held
on Thursday. August 27. 1998 at Edinburgh Country Club. 10 a.m. to 2 p.m.
8.2. Presentation to Countv Board
Paul Steinman indicated that the presentation to the County Board regarding
tax increment issues will be made on Tuesday, August 11. 1998. at 9:45 a.m.
9. Adiournment
There being no other business. COMMISSIONER BENDER MOVED TO ADJOURN THE
MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
The meeting of the Elk River Economic Development Authority adjourned at 6:49
p.m.
Respectfully submitted,
~
Debbie Huebner
Recording Secretary