09-21-1998 EDA MIN - SPECIAL
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SPECIAL MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 21, 1998
Members Present:
President Duitsman, Commissioners Bender, Dwyer, Farber,
Holmgren, Thompson, and Gongoll
Members Absent:
None
Staff Present:
Executive Director Paul Steinman; City Clerk Sandra Peine
1. Call Meetina To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River
Economic Development Authority was called to order at 6 p.m. by President
Duitsman.
2. Consider Aaenda
COMMISSIONER DWYER MOVED TO APPROVE THE 9/1/98 EDA AGENDA.
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 7-0.
3.
Consider Consent Aaenda
COMMISSIONER DWYER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. 8/10/98 EDA MINUTES - APPROVED
3.2. CHECK REGISTER - APPROVED
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. Open Mike
No one appeared for this item.
5. Consider Supermats Development Aareement
Executive Director Paul Steinman indicated that Bryan Jones of Supermats has
presented a Developers Agreement between the EDA and Supermats for EDA
approval. Paul Steinman reviewed the terms of the development contract.
COMMISSIONER BENDER MOVED TO AUTHORIZE THE EXECUTION OF THE
CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER AND BRYAN L.
JONES, INCLUDING EXECUTION OF THE WARRANTY DEED PROVIDING THE
PROPERTY TO THE DEVELOPMENT FROM THE EDA AT NO COST TO THE DEVELOPER.
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
Elk River Economic Development Authority Minutes
Sentember 21. 1998
Page 2
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6.
7.
Consider Resolution Reauestina the City Council to Call a Public Hearina for
Establishment of Tax Increment Financina District No. 21
Consider Recommendation that City Council Authorize Use of the Development
Fund as a Source of Fundina for West Business Park Proiect
Consider Execution of Purchase Aareement with Tony Emmerich for West
Business Park Proiect
8.
Executive Director Paul Steinman stated that agenda items 6-8 relate to the
West Business Park project. These items initiate the process of a tax increment
district, recommending that the Council authorize a source of funds for the
project and execute a purchase agreement with Tony Emmerich for a six acre
parcel. Paul Steinman indicated that the developer has not fully committed to
the West Business Park project at this time. He requested the Economic
Development Authority to move ahead with approval of the necessary actions
to start the process as a show of good faith to the developer that the EDA is
willing to make commitments to the project.
President Duitsman indicated that he does not feel comfortable voting on these
issues without a formal application to review. Commissioner Gongoll concurred
with the President. He suggested that the EDA inform the developer that it is
actively interested, however, it needs assurances that the project will move
ahead.
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Executive Director Paul Steinman stated that by approving items 6-8 the EDA
would be making no commitment to the project, but only giving an indication
that the city will be moving ahead as the developer moves ahead.
After discussion it was the consensus of the EDA to call a public hearing for the
establishment of a tax increment financing district so as not to delay the
timetable if the developer should decide to move ahead with the project. It
was also the consensus of the EDA to indicate its support of the $100,000 micro
loan request without adopting a motion doing so at this time and further that if
the developer does not move forward by September 29, the resolution calling
for the public hearing be rescinded.
COMMISSIONER BENDER MOVED TO ADOPT RESOLUTION 98-2 REQUESTING THE
CITY COUNCIL TO CALL A PUBLIC HEARING ON THE MODIFICATION OF
DEVELOPMENT DISTRICT NO.1 AND THE ESTABLISHMENT OF TAX INCREMENT
DISTRICT NO. 21 AND FURTHER TO SHOW EDA SUPPORT OF THE $100,000 MICRO
LOAN FUND AND, IF THE EDA HAS NOT RECEIVED AN APPLICATION FROM THE
DEVELOPER BY SEPTEMBER 29, THE ISSUES BE REMOVED FROM THE TABLE AND THE
RESOLUTION RESCINDED. COMMISSIONER HOLMGREN SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
9.
Receive Update/Information on Tax Increment Reauest from Associated
Developers (Hohlen Property Redevelopment)
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Executive Director Paul Steinman informed the EDA that the city has received a
formal tax increment financing request for the Hohlen property redevelopment
including the commercial and business park components. Paul suggested that
the EDA hold a worksession to discuss the tax increment financing proposal.
Elk River Economic Development Authority Minutes
Seotember 21. 1998
Page 3
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PRESIDENT DUITSMAN MOVED TO CALL A SPECIAL SESSION OF THE ECONOMIC
DEVELOPMENT AUTHORITY ON OCTOBER 12, 1998, AT 5 P.M. COMMISSIONER
BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
10.
Consider 1999 EDA Budaet
Executive Director Paul Steinman reviewed the proposed 1999 EDA budget.
Discussion wos held regarding the benefit of the Community Venture Network
membership for $4,000. Paul Steinman indicated that Sherburne County is
considering joining the Community Venture Network which would allow the
cities and townships in the county to join under the county's membership. This
would reduce Elk River's cost to approximately $500. It was the consensus of the
EDA that the $500 would be acceptable os a membership fee.
Discussion wos held regarding the benefit the city receives from advertising with
the Minnesota Real Estate Journal, City Business, Industrial Properties, and
Ventures magazines. It was the consensus of the EDA to adopt the budget as
proposed. however to re-evaluate the types of advertising the EDA utilizes.
COMMISSIONER GONGOLL MOVED TO APPROVE THE 1999 EDA BUDGET AND
BUSINESS INCUBATOR BUDGET AS PRESENTED. COMMISSIONER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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Commissioner Bender stated that the EDA should review the strategic plan on 0
yearly bosis to ensure that the EDA is spending the time required on the plan. He
suggested holding a worksession in the future for this purpose.
Discussion wos held regarding the Business Incubator. It was the consensus of
the EDA to have the Executive Director update the EDA in April 1999. on the
progress of the Business Incubator.
11 . Presentation by Kathy Gallswyk. Central Minnesota Initiative Fund at the
October 12. 1998. EDA Meetino
Executive Director Paul Steinman informed the EDA that there will be a
presentation from Kathy Gallswyk regarding a possible contribution from the
city /EDA to the Central Minnesota Initiative Fund.
12. Adiournment
There being no further business, COMMISSIONER BENDER MOVED TO ADJOURN
THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Elk River EDA wos adjourned at 8:50 p.m.
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Respectfully submitted,
;i~~
City Clerk