10-12-1998 EDA MIN
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WORKSESSION MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, OCTOBER 12, 1998
Members Present:
President Duitsman, Commissioners Thompson, Bender, Gongoll,
Holmgren, Dwyer, and Farber (5:35 p.m.)
Members Absent:
None
staff Present:
Paul Steinman, Executive Director; Lori Johnson, Assistant City
Administrator; Sandra Peine, City Clerk; Terry Maurer, City
Engineer; Pat Klaers, City Administrator; Dave MacGillivray; Bond
Consultant
1. Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 5 p.m. by President Duitsman.
2.
Consider Aaenda
COMMISSIONER THOMPSON MOVED TO APPROVE THE 10/12/98 SPECIAL EDA
AGENDA AS PRESENTED. COMMISSIONER GONGOLL SECONDED THE MOTION.
THE MOTION CARRIED 5-0.
3.
Discussion Reaardina Hohlen/Vandenbera Property Mixed Use Development
Executive Director Paul Steinman indicated that this agenda item pertains to Tax
Increment issues relating to the commercial/industrial development project. He
stated thatTax Increment Financing District No. 19 includes approximately 68
acres of the Earl Hohlen property and 40 acres of the Vandenberg property
lying west of and adjacent to the newly proposed Tyler Street. He explained
that the TIF District is a redevelopment tax increment district allowing for the
collection of increment for a maximum term of 25 years. Paul Steinman
reviewed the ways in which the district could be used. He further explained the
LGA/HACA penalty and the 5 percent local contribution penalty that will be
imposed upon the city if and when TIF is generated and used to pay various
project costs. Paul Steinman stated that the proposal from the developer is
approximately $5.5 million.
Tony Gleekel of Associated Developers updated the EDA on the progress that
has been made to date regarding the commercial and industrial property. He
indicated that the problems associated with closing the Hohlen mobile home
park have been resolved.
Discussion took place regarding the 25 year maximum term of the TIF District. It
was indicated by the developers that the maximum term would not be
necessary, however, at this point. the number of years could not be determined.
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Economic Development Authority Minutes
October 12. 1998
Page 2
Commissioner Bender indicated that he would not like to see the city front end
the entire project, thereby taking on the entire risk. The developer indicated
that they agree conceptually that they would have some up front costs as well.
Following discussion of this issue it was concluded that continued negotiation
would take place over the next several months regarding a development
agreement and the specific amount of tax increment to be provided.
4. Other Business
There was no other business presented.
5. Adiournment
There being no further business, President Duitsman adjourned the meeting at
5:55 p.m.
Respectfully submitted,
'cuJA~ Jl~~4~
Sandra Peine
City Clerk