08-09-1999 EDA MIN - JOINT
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JOINT MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
WITH THE CITY COUNCIL AND THE HRA
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 9, 1999
Members Present:
President Dwyer, Commissioners Gongoll, Klinzing, Thompson,
Farber, and Motin
Members Absent:
Commissioner Bender
Staff Present: Paul Steinman, Director of Economic Development;
Marc Nevinski, Assistant Director of Economic Development; Peter
Beck, City Attorney; Sandy Peine, City Clerk; Terry Maurer, City
Engineer; Michele McPherson, Director of Planning
Also Present:
John Dietz, City Council; Duane Kropuenske, HRA Chair; Richard
Hinkle, HRA Commissioner
1. Call Meetina 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.
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2.
Consider 8/9/99 Aaenda
COMMISSIONER FARBER MOVED TO APPROVE THE AUGUST 9, 1999, EDA AGENDA.
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3. Consider Consent Aaenda
COMMISSIONER MOTIN MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. 7/12/99, REGULAR EDA MINUTES - APPROVED
3.2. 7/12/99, STRATEGIC PLANNING WORKSESSION MINUTES - APPROVED
3.3. EDA CHECK REGISTER - APPROVED
COMMISSIONER KLINZING SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
5. US Postal Service Presentation
This item was temporarily postponed.
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Economic Development Authori1y Minutes
August 9, 1999
Page 2
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6.
7.
Consider Year 2000 Budget
Consider Resolution Reaarding EDA Lew
Paul Steinman reviewed the proposed 2000 budget for the Economic
Development Authority. He explained that the budget consists of three separate
budgets including Economic Development - General Fund, Economic
Development Authority, and Housing and Redevelopment Authority. Paul
Steinman reviewed the proposed expenditures for the year 2000, which totaled
$145,100. He indicated that the year 2000 projected revenues are $145,150. Paul
Steinman explained that staff is proposing to bring two of the budgeted line items
back to the EDA prior to undertaking expenditures. These budgeted line items
include other professional seNices - create an economic development
marketing plan - $9,000 and advertising & marketing - implementing marketing
event - $7,000.
Paul Steinman reviewed the Economic Development Authority Business Incubator
budget. He indicated that the total Business Incubator expenditures are $38,000
and the total Business Incubator revenues are $10,000. He explained that the
approximate $28,000 shortfall is proposed to be funded through the use of funds
generated by Tescom Corporation's loan repayment.
Commissioner Klinzing questioned why the actual dollar amount exceeded the
original budget amount under line item # 4440 titled miscellaneous. She
requested that the EDA be provided with a written breakdown of this line item.
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COMMISSIONER GONGOLL MOVE TO ADOPT RESOLUTION 99-2 ESTABLISHING THE
TAX LEVY FOR THE CITY OF ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF ELK RIVER I MINNESOTA AND TO APPROVE THE PROPOSED BUDGET.
COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED 6-0.
Commissioner Klinzing requested to see the actual figures for revenue projection
for year 2000 once this figure is available.
5. US Postal Service Presentation
President Dwyer noted that the HRA and City Council members were present at
this meeting. He indicated that a special meeting had been called so that the
council and HRA could hear the presentation from the postal seNice regarding
the relocation of the post office.
Representatives of the US Postal SeNice addressed the EDA in regard to the
proposed relocation of the post office. It was noted by postal representatives
that two sites had been considered. The former Elk River Mall was considered as
a possible relocation site, however, due to the current development taking
place, the postal seNice withdrew their offer. The second and most desired
location is at the corner of County Road 12 and 13. The postal service has not yet
signed the contract, but intends to continue negotiations for the site.
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Discussion took place between members of the EDA HRA and City Council
regarding the proposed location of County Road 12 and 13 versus a downtown
location. It was noted that the city would prefer a downtown location. It was
further noted that the proposed location may be inconvenient for postal
Economic Development Authority Minutes
August 9, 1999
Page 3
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customers to reach. The City Engineer indicated that there may be concerns
regarding the proposed location in relation to the future road reconfiguration,
signalization of the intersection, and the county access policy.
Members of the postal service indicated that it is their goal to stay on a major
highway for visibility reasons.
8. Consider Modification to EDA Micro Loan Policv
Marc Nevinski, Assistant Director of Economic Development explained that staff
has been in the process of revising the micro loan fund policies. He stated that
the EDA Finance Committee reviewed a draft of the revised policies, and
provided comments that have been incorporated into the draft policy which the
EDA has now been asked to review. He explained that the result of the revisions is
a loan fund that provides a supplemental financing program, a redevelopment
financing program, and an incentive financing program.
Commissioner Motin indicated that he had concerns regarding the
redevelopment financing program. He indicated that he did not feel that it was
correct for the city to promote downtown Elk River as historical, nor was it up to
the city to preserve the downtown area.
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Commissioner Dwyer indicated that the old buildings in the downtown area have
an economic disadvantage in relation to construction, parking, and lack of
visibility. He stated that he felt it was important that the downtown remain vital.
Commissioner Motin stated that he would prefer to vote on the adoption of the
micro loan fund policies by individual category rather than one program.
Marc Nevinski informed the EDA that a public hearing will be held by the EDA on
September 13, 1999, prior to adoption of the micro loan fund policies.
9. Consider Resolution Decertifying TIF District No. 18
Marc Nevinski presented this item regarding decertification of the Morrell Tax
Increment Financing District No. 18 to the Economic Development Authority.
COMMISSIONER GONGOLL MOVED TO ADOPT EDA RESOLUTION 99-3 DECERTIFYING
TAX INCREMENT FINANCING DISTRICT NO. 18 WITHIN DEVELOPMENT DISTRICT NO.1
IN THE CITY OF ELK RIVER. COMMISSIONER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
10. Other Business/Updates
10.1.
Community Venture Network
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Paul Steinman informed the EDA that the Economic Development
Authority is still a member of the program and will be attending the next
quarterly meeting. He noted that the city's consultant Harlan Jacobs,
may be present at the meeting as well.
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August 9, 1999
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10.2. Strategic Plan Modification
Paul Steinman informed the EDA that he and Marc Nevinski are working
on the action plan, and will be bringing the action plan back to the EDA
in about a month for review.
11 . Adiournment
There being no other business, COMMISSIONER MOTIN 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 7:02
p.m.
Sandy Peine
City Clerk
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