04-12-1999 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 12, 1999
Members Present:
President Dwyer, Commissioners Gongoll, Bender, Motin, Farber,
Thompson and Klinzing
Members Absent:
None
Staff Present:
Paul Steinman, Director of Economic Development; Pat Klaers, City
Administrator; Sandra Peine, City Clerk
1. Call Meetinq To Order
Pursuant to due call and notice thereof, the meeting of the EDA was called to
order at 6:40 p.m~ by President Dwyer.
2. Consider Aqenda
COMMISSIONER THOMPSON MOVED TO APPROVE THE APRIL 12, 1998, EDA
AGENDA. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED
7-0.
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3.
Consider Consent Aqenda
COMMISSIONER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. 3/8/99 SPECIAL EDA MINUTES - APPROVED
3.2. 3/8/99 REGULAR EDA MINUTES - APPROVED
3.3. CHECK REGISTER - APPROVED
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. Ooen Mike
No one appeared for open mike.
5.
Brown/Kirkeide Land Purchase
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Paul Steinman presented the EDA members with the background of the
proposed Brown and Kirkeide land purchases. He noted that the EDA previously
authorized staff to begin negotiations with the property owners for the purchase
of their property in relation to the East Elk River project. Paul noted that the total
purchase price is approximately 1 .13 million for the Brown property and $200,000
for the Kirkeide property. He indicated that federal government funds will pay
$655,000. The City is negotiating with the Browns for a contract for deed with the
EDA over a minimum term of 10 years in anticipation of the Tax Increment funds
from TIF 19 paying off the contract for deed. Also discussed was the issue of the
assessment on the property in the amount of $250,000. It was proposed that tax
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EDA Minutes
April 12, 1999
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increment from District 19 be used to reimburse the development fund for this
cost.
Commissioner Klinzing questioned why the city is purchasing industrial property.
She indicated her concern that the city not be in competition with private
business park property owners. She stated that the use of TIF funds to purchase
this property is premature as the city does not know the amount of increment to
be generated. She further indicated that there are higher priorities for the use of
TIF funds such as public improvements.
COMMISSIONER BENDER MOVED TO AUTHORIZE STAFF TO PROCEED WITH THE
PURCHASE OF THE BROWN AND KIRKEIDE PROPERTY AT THE PURCHASE PRICE AND
METHOD AS INDICATED IN STAFF MEMO DATED APRIL 8, 1999. COMMISSIONER
GONGOLL SECONDED THE MOTION.
Commissioner Klinzing indicated that she will vote against the motion as she
believes the city is moving too quickly. She stated that it would be best if the
property were purchased by a private developer.
THE MOTION CARRIED 6.1. COMMISSIONER KLINZING VOTED AGAINST THE
MOTION.
Sa.
T1F19
Paul Steinman stated that staff is continuing to negotiate the details of the
redevelopment agreement with Associated Developers for redevelopment of the
former Hohlen Mobile Home Park and construction of the East Business Park.
6.
Post Office Relocation
Paul Steinman indicated that the postal service has rejected all sites from further
review with the exception of a parcel of property located at the northeast corner
of the intersection of County Highways 12 and 13.
Following discussion it was the consensus of the EDA to reaffirm its position
regarding its desire to see a retail facility maintained in its current location or
another location within the Central Business District. The EDA authorized staff to
send a letter to the United Postal Service explaining its position and also to have a
couple of EDA members personally meet with representatives of the postal
service to discuss this matter.
7. Mark Rothfork - Micro Loan Reauest
Paul Steinman stated that Mark Rothfork of Ultra Image Powder Coating has
requested a micro loan in the amount of $65,000. He reviewed the details of the
request and indicated that the EDA Finance Committee recommended
approval of the micro loan request of $65,000.
Mark Rothfork was present and stated his reason for requesting a loan from the
micro loan fund.
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April 12, 1999
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COMMISSIONER KLINZING MOVED TO PROVIDE A $65,000 MICRO LOAN TO MARK
ROTH FORK AT A FIXED INTEREST RATE OF 7.75 PERCENT FOR A TERM OF 20 YEARS
WITH A BALLOON PAYMENT AT THE END OF YEAR FIVE. COMMISSIONER BENDER
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
8. Other Business
COMMISSIONER GONGOLL MOVED TO CALL A SPECIAL MEETING OF THE EDA FOR
MONDAY, MAY 10, 1999 FROM 4-6 FOR THE PURPOSE OF RECEIVING AN OVERVIEW
OF THE BUSINESS INCUBATOR. COUNCILMEMBER FARBER SECONDED THE MOTION.
THE MOTION CARRIED 7-0.
Paul Steinman informed the EDA that the May 10 regular meeting will take
approximately 1 hour due to the EDA 1998 annual report presentation.
Paul Steinman informed the EDA that Northstar Die Casting is behind on its Micro
Loan Payments. He suggested beginning a process to protect the EDA's interests.
COMMISSIONER GONGOLL MOVED TO DIRECT STAFF TOP TAKE APPROPRIATE
MEASURES TO PROTECT THE EDA AGAINST REPERCUSSIONS NON-PAYMENT BY
NORTHSTAR. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION
CARRIED 7-9.
9.
Adjournment
There being no further business, COMMISSIONER MOTIN MOVED TO ADJOURN THE
EDA MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the Economic Development Authority adjourned at 7:30 P.M.
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Sandra Peine
City Clerk