02-08-1999 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, FEBRUARY 8, 1999
Members Present:
President Dwyer; Commissioners Bender, Gongoll, Klinzing, Farber,
and Motin
Members Absent:
Councilmember Thompson
Staff Present:
Paul Steinman, Director of Economic Development; Pat Klaers, City
Administrator; Peter Beck, City Attorney; Joni Pearson, Recording
Secretary
1. Call Meetino 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 Dwyer.
2. Consider 2/8/99 Aoenda
The following item was added to the agenda:
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Commissioner Gongoll requested approval of .an additional topic under Other
Business, Item 8.c.
COMMISSIONER FARBER MOVED TO APPROVE THE AMMENDED FEBRUARY 8, 1999,
EDA AGENDA. COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
3. Consider Consent Agenda
President Dwyer requested that the statement. made to Ms. Swanberg in Item 4.
of the 1/11/99 minutes go on record as follows: ... Commissioner Dwyer indicated
that the only time ownership of land is clear to the EDA is when the Authority is
purchasing the property. He stated that since the EDA is not purchasing her land,
it is unknown to them who the owner is, and the issue may be one better taken
up with the developer...
Commissioner Gongoll questioned the phrasing of the motion in Item 5.f. of the
1/11/99 minutes. The motion will go on record restated as follows:
...COMMISSIONER GONGOLL MOVED TO RECOMMEND A CHANGE BE MADE TO THE
BYLAWS TO REFLECT THE ADDITION OF ASSISTANT TREASURER TO ARTICLE 3.1.
COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
COMMISSIONER FARBER MOVED TO APPROVE THE AMENDED CONSENT AGENDA AS
FOLLOWS:
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3.1.
3.3.
1/11/99 EDA MINUTES - APPROVED AS AMENDED
EDA CHECK REGISTER - APPROVED
Economic Development Authority Minutes
February 8, 1999
Page 2
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COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4.
Open Mike
Jim Mevissen, resident of the Hohlen redevelopment project, expressed his
concern with the lack of notification in regard to meetings and procedures
leading to the condemnation of his property. He further indicated the family's
hardship in being forced to vacate the premises, resulting in living further from
their occupations.
5. Consider Reauest for Fundin9 of City Entrance Monument Siqn
Director of Economic Development Paul Steinman informed the council that over
the past 4 to 5 months, staff and the Chamber of Commerce have worked to
solicit input on design options for a new welcome sign to be constructed near
Lake Orono. He indicated that the estimated cost of the option chosen is
$21,000, of which 30 to 50 percent will be donated by local companies. Paul
stated that due to the uncertainty of the dollar amount of donations toward this
project, he is supportive of the request that EDA agree to fund $10,000 - $15,000
toward construction of the monument sign.
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Commissioner Klinzing stated that she is concerned with the expense of the sign,
as she believes it to be popular opinion amongst citizens that the sign is too
extravagant. She encouraged the willingness of local businesses to support the
project, but questioned the availability of some less expensive options.
Director of Economic Development Paul Steinman indicated that the sign task
force was presented with several sign design options and selected a structure
made of stone rather than other options made of wood.
COMMISSIONER KLINZING MOVED TO APPROVE THE FUNDING OF UP TO 50% OF THE
TOTAL CONSTRUCTION COST FOR A NEW CITY ENTRANCE MONUMENT SIGN.
The motion died for lack of a second.
Commissioner Motin stated that he is not in favor of the sign for a number of
reasons including: cost, sign design, placement near Lake Orono, lack of an
overall plan for other entrance signs, and maintenance issues.
COMMISSIONER FARBER MOVED TO APPROVE THE FUNDING OF $10,000 - $15,000
(MAXIMUM) FOR THE CONSTRUCTION OF A NEW CITY ENTRANCE MONUMENT SIGN.
COMMISSIONER GONGOLL SECONDED THE MOTION.
Director of Economic Development Paul Steinman indicated that in March, staff
will be reviewing the quotes received from two local general contractors, of
which one will be chosen to coordinate the project.
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Commissioner Klinzing indicated that she would be opposed to the approval of
funding more than 50% of the project, and recommended that the Chamber of
Commerce proceed in their diligence toward seeking donations.
THE MOTION FAILED 3-3. Commissioners Bender, Klinzing, and Motin opposed.
Economic Development Authority Minutes
February 8, 1999
Page 3
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Commissioner Bender questioned the location of the sign near Lake Orono and
the plan for construction of future monument signs at the city's entrance.
COMMISSIONER FARBER MOVED TO APPROVE THE FUNDING OF UP TO 50% (NOT TO
EXCEED $10,500) OF THE ESTIMATED $21,000 TOTAL CONSTRUCTION COST FOR A
NEW CITY ENTRANCE MONUMENT SIGN. COMMISSONER KLINZING SECONDED THE
MOTION. THE MOTION CARRIED 4-2. Commissioners Bender and Motin opposed.
6. Consider Reauest for $50,000 Micro Loan - Cairns Cupboards & Desian
Director of Economic Development Paul Steinman informed the EDA of the
request for a $50,000 Micro Loan by Cairns Cupboards & Design. Paul stated that
the EDA Micro Loan Committee met February 4, and did not make a specific
recommendation for the EDA to consider due to the preliminary nature of the
request. Paul indicated that if the application proceeds as planned, staff will
bring the request back to the loan committee for a recommendation, and then
to the EDA in March or April.
7.
Discuss Concept for Post Office Relocation
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Director of Economic Development Paul Steinman stated that staff has proposed
to the postal service that they consider purchasing the west business park lot of
approximately 4.5. acres which is owned by the EDA. He indicated that the
warehousing and distribution operations could be constructed on this site with the
retail operations being maintained in the central business district. Paul indicated
that the postal service has requested that the EDA complete an "Offer to Sell
Real Property" form, that would formalize the EDA's offer to sell its property for this
purpose. He stated that staff is proposing that the lot would be available for
purchase by the postal service at a sale price of $200,000, the same price that
the EDA paid in December 1997 with certain contingencies regarding location of
their retail services in the downtown area - King and Main specifically.
COMMISSIONER KLINZING MOVED TO PROCEED WITH THE EXECUTION OF THE OFFER
TO SELL REAL PROPERTY CONTAINING A 60 DAY TIME LIMIT AND A SALE PRICE OF
$200,000 WITH THE CONDITION THAT THE POSTAL SERVICE MAINTAIN RETAIL
PRESENCE IN THE DOWNTOWN CENTRAL BUSINESS DISTRICT. COMMISSIONER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
8. Other Business
8.a. Update - Process of HirinQ ED Assistant
Director of Economic Development Paul Steinman updated the EDA on the
progress of the hiring of an ED Assistant. He indicated that the Jim Brimeyer
Group has received 15-18 applications for the position. Paul stated that following
the cut-off date of 2/15, staff will move forward with the interviewing and
selection process.
8.b.
Update - Future EDA Meetinas: Strateaic Plannina - March, Business Incubator
Review - April
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Economic Development Authority Minutes
February 8, 1999
Page 4
Director of Economic Development Paul Steinman informed the EDA that
preceding the regular March EDA meeting, there will be a worksession
conducted by Jim Brimeyer. He stated that the purpose of this worksession is to
provide a strategic plan "report card", and to determine if an update is
necessary.
Paul indicated that in April, a Business Incubator project review will be provided
with the assistance of Harlan Jacobs of Genesis Business Centers, and the
incubator companies.
8.c. Genesis Business Center Open House
Commission Gongoll distributed a hand-out with information regarding the
Genesis Business Center Open House.
President Dwyer informed the EDA that his recent tour of the Sportech building
with Paul Steinman was very impressive.
9. Adiournment
There being no further business, COMMISSIONER BENDER MOVED TO ADJOURN THE
MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED
6-0.
The meeting of the Elk River Economic Development Authority adjourned at 6:50
p.m.
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Joni Pearson
Recording Secretary