12-14-1998 EDA MIN
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MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 14, 1998
Members Present:
Chair Duitsman, Commissioners Thompson, Farber, Dwyer, and
Bender
Members Absent:
Commissioner Holmgren
Staff Present:
Paul Steinman, Director of Economic Development: Sandra
Peine, City Clerk; Pat Klaers, City Administrator
1. Call Meetinq 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 Chair Duitsman.
2. Consider Aqenda
COMMISSIONER FARBER MOVED TO APPROVE THE DECEMBER 14, 1998, EDA
AGENDA. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
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3.
Consider Consent Aqenda
COMMISSIONER DWYER MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. NOVEMBER 9, 1998 EDAMINUTES-APPROVED
3.2. NOVEMBER 9, 1998 SPECIAL MEETING EDA MINUTES - APPROVED
3.3. CHECK REGISTER - APPROVED
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED
5-0.
4. Open Mike
No One appeared for this item.
5.
Consider Resolution Approvinq Budqet Modification - Tax Increment District No.9
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Paul Steinman indicated that the proposed budget modification to tax
increment district No.9 will increase tax increment expenditures from TIF District
No.9 by a maximum of $90,000. He reviewed the following details:
. Land purchase $24,000
. Administration 6,000
. Public Improvements 60,000
$90,000
Economic Development Authority Minutes
December 14, 1998
Page 2
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COMMISSIONER GONGOLL MOVED TO ADOPT EDA RESOLUTION 98-8 A
RESOLUTION MODIFYING THE BUDGET IN TAX INCREMENT FINANCING DISTRICT NO.
9. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
6.
Consider Resolution Approvina Administrative Budaet Modification - Tax
Increment District No. 18
Paul Steinman explained that the purpose of the budget modification is to
reallocate costs within the current budget. He indicated that the cost of public
improvements increased due to a new estimation of the cost of completing the
controlled railroad crossing on 171st Avenue. He reviewed the modification to
the budget as indicated.
Total
Current
$0
$300,000
$355,000
$ 25,000
$ 68.000
$748,000
Modification
$0
$0
$ 550,000
$130,000
$ 68.000
$748,000
Land acquisition
Site Improvements
Public Improvements (includes local contribution)
Interest '
Administration
COMMISSIONER FARBER MOVED TO ADOPT EDA RESOLUTION 98- 9 MODIFYING
THE BUDGET IN TAX INCREMENT FINANCING DISTRICT NO. 18. COMMISSIONER
BENDER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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Consider Resolution Reauestina the Council to Call a Public Hearina for TIF
District No. 21
7.
Paul Steinman indicated that he has received application for tax increment
financing to facilitate a company in the west business park. He explained that
the concept is to use tax increment to provide land up front for the project.
COMMISSIONER GONGOLL MOVED TO ADOPT EDA RESOLUTION 98-10
REQUESTING THE CITY COUNCIL OF THE CITY OF ELK RIVER TO CALL FOR A PUBLIC
HEARING ON THE MODIFICATION OF DEVELOPMENT DISTRICT NO.1 AND THE
ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 21. COMMISSIONER
DWYER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
8. Discuss Economic Development Assistant Position
Paul Steinman stated that the hiring of an assistant for the Economic
Development office is included in the 1999 budget. Paul Steinman discussed
the possibility of using Jim Brimeyer of the Brimeyer Group to provide some job
search services for the economic development assistant.
COMMISSIONER BENDER MOVED TO AUTHORIZE STAFF TO PROCEED WITH
NEGOTIATING A CONTRACT WITH JIM BRIMEYER FOR UP TO 5,000.
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
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Economic Development Authority Minutes
December 14, 1998
Page 3
9. Discuss Associated Developer's Proiect
Chair Duitsman indicated that there has been discussion on the cost of sewer
and water for East Elk River. He indicated that the cost for the sewer and water
is on the high end. He noted that TIF dollars are needed to pay for shortfall. He
requesting the EDA to consider limiting the amount given to Associated
Developers to $1,000,000 for commercial development $2.85 million total
(industrial included).
COMMISSIONER BENDER MOVED TO LIMIT THE AMOUNT OF TIF MONEY TO
ASSOCIATED DEVELOPERS FOR USE ON THE COMMERCIAL AREA OF THE PROJECT
TO $1,000,000. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 5-0.
10. Other Business
Paul Steinman stated that he has received a written request from Solar Attic, a
business incubator tenant to extend the lease by I year. Paul suggested
guaranteeing the amount of the extension by a certain period to allow space
for future tenants.
Commissioner Dwyer suggested limiting the extension to no more than one year.
Paul Steinman recommended increasing the lease amount.
Paul Steinman informed the EDA that he will be meeting with representatives of
the post office to discuss the proposed location.
11.
Adiournment
THERE BEING NO FURTHER BUSINESS, COMMISSIONER BENDER MOVED TO ADJOURN
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 5-0.
THE EDA MEETING ADJOURNED AT 6:40 P.M.
Respectfully submitted,
A~ /J ~/JA
.. ~CC-- /~
Sandra Peine
City Clerk