11-09-1998 EDA MIN - SPECIAL
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SPECIAL WORKSESSION MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, NOVEMBER 9, 1998
Members Present:
President Duitsman, Commissioners Gongoll, Thompson, Dwyer,
Bender, and Holmgren
Members Absent:
Commissioner Farber
Staff Present:
Paul Steinman, Executive Director; Pat Klaers, City Administrator;
Sandra Peine, City Clerk; Peter Beck, City Attorney; Lori Johnson,
Assistant City Administrator; Dave MacGillivray, Bond Consultant
1. Call Meetinq 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 Aqenda
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COMMISSIONER BENDER MOVED TO APPROVE THE 11/9/98 ECONOMIC
DEVELOPMENT AUTHORITY WORKSESSION AGENDA. COMMISSIONER DWYER
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3.
Tax Increment Financinq District No. 19 - Associated Developers Proiect
Executive Director Paul Steinman indicated that discussion of this issue relates to
the provision of tax increment financing to Associated Developers as part of
their mixed use development proposal on the Earl Hohlen property located at
169 and Main Street. Paul Steinman reviewed the basic costs associated with
the industrial component of the project. Discussion pursued as to who was
responsible for payment of the components of the project and whether it would
be paid up front or on a pay-as-you-go method. Following discussion of the
issue it was the consensus of the EDA that the cost for mass grading and wetland
remediation of approximately $600,000 be split on a pay-as-you-go and up front
method so as to potentially eliminate city bonding for this cost.
Paul Steinman reviewed the commercial components of the project. He noted
that the approximate total tax increment for this project is $1.6 million. He further
noted that the gas pipeline relocation costs of $350,000 would probably be
reduced to about $100,000. After discussion by the EDA regarding the total
dollar amount for the commercial component of the project, it was the
consensus that the Executive Director negotiate with the developer a tax
increment package of approximately $1 million including $627,000 for public
improvements and $373,000 for other eligible TIF costs.
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The issue of eminent domain for the two remaining parcels which are not in the
control of the developer at this time was discussed. The developer indicated he
would rather purchase the parcels up front rather than going through the
Special EDA W orksession Minutes
November 9. 1998
Page 2
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eminent domain process. Following discussion it was the consensus of the EDA
that if the property owners were unwilling to sell the property or if the property
owners were holding out for an unreasonable price that the EDA would be in
favor of going through the eminent domain process to acquire the properties.
4.
Other Business
There was no other business.
5. Adiournment
There being no further business, COMMISSIONER GONGOLL MOVED TO ADJOURN
THE MEETING. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
The special worksession meeting of the Elk River Economic Development
Authority was adjourned at 6:10 p.m.
Respectfully submitted,
~yJ~
Sandra Peine
City Clerk
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