09-13-1999 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 13, 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; Sandra Peine, City
Clerk; Pat Klaers, City Administrator
1. Call Meetina To Order
Pursuant to due call and notice thereot President Dwyer called the meeting of
the Economic Development Authority to order at 6:00 p.m.
2. Consider 9/13/99 Aaenda
It was requested that Item 6 be heard prior to Item 5 on the agenda,
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COMMISSIONER THOMPSON MOVED TO APPROVE THE SEPTEMBER 13,1999, EDA
AGENDA AS AMENDED. COMMISSIONER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 6-0.
3.
Consider Consent Aaenda
COMMISSIONER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOllOWS:
3.1. 819199 EDA MINUTES - APPROVED
3.2. EDA CHECK REGISTER - APPROVED
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Open Mike
No one appeared for open mike.
6. Consider Draft Action Plan for Strateaic Plan Modification
Paul Steinman presented a draft action plan based on identification of the major
issues prioritized by the Strategic Plan Modification Committee. Paul requested
the EDA to review the draft action plan and to discuss addition, deletions, or
other modifications to the plan.
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Paul Steinman explained that the Economic Development Strategic Plan was first
completed in 1996 and that the Strategic Plan Modification Committee modified
this plan. Modification of the plan consisted of reviewing and reprioritizing the
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September 13, 1999
Page 2
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major issues of the plan. Paul reviewed the Modification Committee's top four
priorities of the Strategic Plan, which consisted of:
. Issue No. 1 - Growth Industrial Base
Goal: Develop West Business Park
. Issue No. 2 - Business Retention Growth
Goal: Retain and Grow Existing Industrial Firms
. Issue NO.3 - Marketing Strategy
Goal: Develop a Marketing Strategy
. Issue NO.4 - Develop/Redevelop East Highway 10 and CBD Area
Goal: Undertake Activities to Facilitate Development and
Redevelopment on East Highway 10 and in the CBD
Discussion was held regarding the issue of how the development of a
transportation plan fits in with the 4 priorities. The EDA consented that the
transportation issue revolved around access and the amount of traffic in Elk River,
and further that transportation is an important issue relating to economic
development. The City Administrator noted that the city has a transportation
plan that it is part of the overall city Comprehensive Plan. He further noted that it
is the city's intention to work with other agencies to improve the traffic situation in
the city. Commissioner Klinzing noted that it might be best for the City Council to
deal with the transportation issue.
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Commissioner Motin indicated a concern regarding redevelopment of the
Central Business District area. He questioned whether redevelopment consisted
of preservation and/or restoration of the downtown area. Commissioner Motin
indicated that if the intent were to develop a historical theme, he would be
opposed to that type of redevelopment. President Dwyer stated that some of
the buildings are historical in nature. He further stated that it is important to work
with the downtown BEFORE it becomes an undesirable area.
Commissioner Klinzing suggested that a time frame be placed on the plan. Paul
Steinman suggested that 2000-2002, or 2003 be included as the time frame.
Discussion was held regarding whether the action items listed on the plan would
require specific EDA approval, and whether the plan should specifically state that
the action items require specific EDA approval. Commissioner Klinzing indicated
that without the written verbiage indicating that the action plans require EDA
approval, the plan suggests that the EDA is giving staff the authority to move
forward on the entire plan. Mayor Klinzing noted that she is concerned with the
way that the document is worded and will vote against the adoption of the
action plan because there are certain items in the plan that she does not agree
with. Commissioner Motin suggested that each item be addressed in the plan
before the entire plan is passed. Commissioner Gongoll noted that the action
plan is consistent with the original Strategic Plan, and that he is comfortable with
the document as presented.
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Following further discussion by the EDA regarding this issue, it was suggested that
the issues in the plan that need additional discussion be specifically identified.
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September 13, 1999
Page 3
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President Dwyer suggested calling a special meeting of the EDA to discuss these
specific issues.
COMMISSIONER GONGOLL MOVED TO CALL A SPECIAL MEETING OF THE
ECONOMIC DEVELOPMENT AUTHORITY ON OCTOBER 11, AT 5:00 P.M. TO DISCUSS
THE TERMINOLOGY USED IN THE PROPOSED ACTION ITEMS IN THE 1999 ECONOMIC
DEVELOPMENT STRATEGIC PLAN ACTION PLAN. COMMISSIONER FARBER SECONDED
THE MOTION. THE MOTION CARRIED 6-0.
5. Public Hearina/Consider Modifications to the EDA Micro Loan Proaram
Marc Nevinski noted that the micro loan fund policies and guidelines have been
modified. He presented the EDA with a copy of the revisions. Marc reviewed the
policies and guidelines and noted that the policy now states clear guidelines for
different loan fund uses such as gap financing incentives and redevelopment.
He further noted that the recent business subsidy law passed by the state
legislature placed restrictions on fund dollars and implemented new reporting
requirements. He noted that these reporting requirements and restrictions are
included in the city's revised micro loan fund policies and guidelines.
President Dwyer opened the public hearing. There being no public comment on
the issue, President Dwyer closed the public hearing.
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COMMISSIONER GONGOLL MOVED TO APPROVE THE SUPPLEMENTAL FINANCING
PROGRAM AS STATED IN THE REVISED ELK RIVER ECONOMIC DEVELOPMENT MICRO
LOAN FUND POLICIES AND GUIDELINES. COMMISSIONER FARBER SECONDED THE
MOTION. THE MOTION CARRIED 6-0.
Commissioner Motin questioned the purpose of the redevelopment financing
program in relation to rehabilitation and restoration of buildings in the Central
Business District. He questioned the definition of redevelopment and whether it
entailed restoring buildings to original looks. He also questioned whether
someone would be allowed to construct an entire new building under these
guidelines.
Discussion was held regarding the word "rehabilitation" and how it affected the
design criteria. It was suggested that the word "rehabilitation" under Puroose in
the Redevelopment Financing program be changed to "improvement".
COMMISSIONER MOTIN MOVED TO ACCEPT THE AMENDMENTS TO THE
REDEVELOPMENT FINANCING PROGRAM WITH THE CONDITION THAT THE WORD
REHABILITATION BE CHANGED TO IMPROVEMENT. COMMISSIONER GONGOLL
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
COMMISSIONER GONGOLL MOVED TO APPROVE THE INDUSTRIAL INCENTIVE
PROGRAM AS PRESENTED IN THE REVISED GUIDELINES. COMMISSIONER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 6-0.
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Commissioner Motin suggested that the bulleted items under # 4 be placed
directly under the # 4 for continuity.
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September 13, 1999
Page 4
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President Dwyer suggested that it be specifically defined under Item # 7 that a
personal guarantee is required.
COMMISSIONER FARBER MOVED TO APPROVE THE REVISED MICRO LOAN FUND
POLICIES AND GUIDELINES AS AMENDED. COMMISSIONER GONGOLL SECONDED
THE MOTION. THE MOTION CARRIED 6-0.
7. Present Results of Business Retention and Expansion Survey Proaram
This item was postponed to the October 11, 1999, EDA meeting.
8. Consider Proposal to Purchase Eull Property
The City Administrator informed the EDA that a requirement of the settlement
agreement between the City of Elk River and the Eull property relating to the east
Elk River assessment project requires that the city consider the purchase of all or a
portion of the Eull property that is being assessed.
President Dwyer noted his concern regarding the lack of light industrial zoned
(not business park) property located in the city. He noted that if funds were
available, he would be in favor of purchasing the Eull property.
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It was the consensus of the EDA that funding is not available for the purchase of
this property. Paul Steinman noted that staff would continue to work with the
Eull's to provide industrial contacts.
COMMISSIONER KLINZING MOVED TO DECLINE THE OFFER TO PURCHASE THE EULL
PROPERTY. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION
CARRIED 6-0.
9. Other Business/Updates
Paul Steinman informed the EDA that $141,057 in revenue from the 2000 levy will
be received.
10. Adiournment
There being no other business, COMMISSIONER FARBER MOVED TO ADJOURN THE
MEETING. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED
6-0.
The meeting of the Elk River Economic Development Authority adjourned at 7:28
p.m.
s~~aJA-
City Clerk
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