05-10-1999 EDA MIN
e
MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 10, 1999
Members Present:
President Dwyer, Commissioners Gongoll, Bender, Motin, Farber,
Thompson and Klinzing
Members Absent:
None
Staff Present:
Paul Steinman, Director of Economic Development Marc Nevinski,
Assistant Director of Economic Development Pat Klaers, City
Administrator; Sandra Peine, City Clerk; Peter Beck, City Attorney
1. Call Meetina To Order
Pursuant to due call and notice thereof, the meeting of the EDA was called to
order at 6: 1 0 p.m. by President Dwyer.
2.
Consider Aaenda
e
Due to the anticipated length of the EDA meeting, President Dwyer requested
that Item #5, the 1998 annual report, be delayed to the June EDA meeting.
COMMISSIONER THOMPSON MOVED TO APPROVE THE MAY 10, 1999, EDA AGENDA
WITH THE DELETION OF ITEM #5, 1998 ANNUAL REPORT. COMMISSIONER BENDER
SECONDED THE MOTION. THE MOTION CARRIED 7-0.
3. Consider Consent Aaenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. 4/12/99 EDA MINUTES - APPROVED
3.2. CHECK REGISTER - APPROVED
COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. Open Mike
No one appeared for open mike.
5. 1998 Annual Report Presentation
This item was postponed until June EDA meeting.
6.
Eneray City Presentation
e
Chris Engelman, Demonstration Coordinator for Energy Alley, gave a presentation
on Energy City.
EDA Minutes
May 10, 1999
Page 2
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7. Brown/Kirkeide Purchase
Paul Steinman indicated that the city has been negotiating with the Browns and
Kirkeides for the purchase of their property as it relates to the East Elk River
project. Pat Klaers, City Administrator, indicated that Bud Storm of Evergreen
Land Services has reached an agreement for the city and the EDA to purchase
LeRoy and Ruth Brown's property in east Elk River. The City Administrator reviewed
the provisions included in the purchase agreement for the Brown property. Paul
Steinman indicated that it is imperative that the closing on the property be prior
to July 1, 1999, to preserve the EDA's property tax exemption for payable 2000.
The City Administrator indicated that a price has not been negotiated for the
Kirkeide property. He noted that although it would be in the best interest of the
city to purchase the property, it is not essential for the development of the project
that the property be purchased at this time. It was the consensus of the EDA that
city staff should continue negotiating for an agreeable purchase price for the
Kirkeide property.
COMMISSIONER BENDER MOVED TO AUTHORIZE THE PURCHASE AGREEMENT OF THE
BROWN PROPERTY PER STAFF RECOMMENDATION. COMMISSIONER MOTIN
SECONDED THE MOTION.
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Commissioner Klinzing indicated that she felt it was not necessary to purchase the
property at this time. She stated that she would vote against the motion.
Commissioner Thompson questioned if there was a lease on the Brown property
to allow farming of the land. The Brown's attorney, Craig Haus, indicated that
there is a lease on the property which allows the land to be farmed for the next
few years. Paul Steinman indicated that staff should check to see how the
farming affects the tax exempt status of the property. It was the consensus of the
EDA that the burden of working out the farming lease for the property should be
resolved by the Browns and not the city.
THE MOTION CARRIED 6-1. Commissioner Klinzing voted against the motion.
8. Community Venture Network Program
Paul Steinman recommended that the EDA proceed to join the Community
Venture Network Program at a total cost of $3,950 per year. He explained the
benefits of the program.
President Dwyer indicated his concern regarding the quality of the companies
involved in the program. He suggested that the EDA join for 3 months with a
quarterly review to determine whether the EDA should join for the next 3 months.
COMMISSIONER THOMPSON MOVED TO JOIN THE COMMUNITY VENTURE NETWORK
PROGRAM ON A QUARTERLY BASIS WITH A REVIEW AT THE END OF EACH QUARTER.
COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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EDA Minutes
May 10, 1999
Page 3
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9. Other Business
There was no other business.
10. Adiournment
There being no further business, President Dwyer adjourned the meeting of the
Economic Development Authority at 7:05 P.M.
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Sandra Peine ~
City Clerk
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