05-08-2000 EDA MIN
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MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, MAY 8, 2000
Members Present:
President Dwyer; Commissioners Gongol!, Koenig, Klinzing,
Thompson, Farber and Motin
Members Absent:
None
Staff Present:
Executive Director Pat Klaers; City Clerk Sandra Peine; Acting
Director of Economic Development Marc Nevinski
1. Call Meetina To Order
Pursuant to due call and notice thereot the meeting of the Elk River Economic
Development Authority was called to order at 6 p.m. by President Dwyer.
2. Consider Aaenda
COMMISSIONER MOTIN MOVED TO APPROVE THE 5/8/00 AGENDA. COMMISSIONER
FARBER SECONDED THE MOTION. THE MOTION CARRIED 7-0.
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3.
Consider Consent Aaenda
The EDA requested the following corrections to the EDA Minutes.
April 10, 2000
. The meeting was called to order at 5:30 p.m.
April 14, 2000
. Strike Commissioner Bender and add Commission Koenig under
Members Present
COMMISSIONER KLINZING MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. 411 0100 EDA MINUTES - APPROVED AS AMENDED
3.2. 4114/00 SPECIAL EDA MINUTES - APPROVED AS AMENDED
3.3. CHECK REGISTER - APPROVED
COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
4. Open Mike
No one appeared for this item.
5.
Consider Request for Tax Rebate Financina, John Weicht, R&W Associates
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Acting Director of Economic Development Marc Nevinski indicated that John
Weicht of R&W Associates is requesting to use tax rebate financing (TRF) to
Economic Development Authority
Mav 8. 2000
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construct an 18,000 square foot multi-tenant industrial building in the McChesney
Industrial Park. He noted that the total cost of the project is projected to be
approximately $758,000 and that Mr. Weicht is requesting that the city rebate its
portion of the taxes on the building for four years, which is $24,683 over the term
of the rebate period, Marc indicated that Mr. Weicht also intends to request
Sherburne County to rebate its portion of the taxes on the project for the same
four-year period. Marc explained that the project was rated by the TRF worksheet
which resulted in a moderately high rating of 33 points on a scale of 45,
John Weicht indicated that the lot on which he is proposing to build would
require a unique design to make a project without having to spend a lot of
money on soil corrections. He indicated that this is the last lot available in the
industrial park.
Commissioner Motin questioned how the but/for test was used in this case.
President Dwyer indicated that each request was tried on a case-by-case basis.
He explained that the present proposal includes working with a difficult piece of
land and shared parking, which causes some risk to the project. Commissioner
Thompson felt that the EDA might be setting a precedent if profitability is used as
a factor to determine whether TRF should be considered.
Commissioner Klinzing questioned Mr. Weicht regarding whether the project
would go forward without the use of TRF. Mr. Weicht indicated that there would
be no project without TRF.
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Discussion was held regarding whether Sherburne County would approve the
request. John Weicht indicated that he would be bringing the request to
Sherburne County. He noted that if Sherburne County did not approve the
request, he would ask the city to extend its rebate to 8 years. It was the consensus
of the EDA that it would not approve an 8-year rebate, but would be in favor of a
four-year rebate for this project,
COMMISSIONER MOTIN MOVED TO APPROVE THE REQUEST FOR TAX REBATE
FINANCING BY JOHN WEICHT FOR A FOUR YEAR TAX REBATE PERIOD BEGINNING
WITH TAXES PAYABLE IN 2002. COMMISSIONER FARBER SECONDED THE MOTION.
THE MOTION CARRIED 7-0
6. Discussion on Jackson and Main Street Site
City Administrator Pat Klaers reviewed the issue of whether the EDA should
continue to hold onto the Main Street site and pursue marketing of the site or turn
the site over to the city for green space.
Commissioner Thompson noted that if the property was going to be held as
green space it should be turned over to the city. Commissioner Gongoll
concurred with Commissioner Thompson. Commissioner Motin indicated that he
felt the area should be preserved as green space, but felt the EDA should retain
the property as there are no present plans for the downtown area, Commissioner
Farber indicated that he concurred with Commission Motin.
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Economic Development Authority
Mav 8. 2000
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COMMISSIONER THOMPSON MOVED TO TURN THE PROPERTY BACK TO THE CITY OF
ELK RIVER TO BE USED AS GREEN SPACE OR PARK PROPERTY. COMMISSIONER
KLINZING SECONDED THE MOTION.
Commissioner Klinzing indicated that the city should encourage groups who are
interested in developing the site. Commissioner Koenig indicated that some plans
should be in place prior to relinquishing title.
THE MOTION CARRIED 4-3. Commissioners Koenig, Farber, and Motin opposed.
6. Update on Director of Economic Development
City Administrator Pat Klaers updated the EDA on the status for the search for the
Director of Economic Development.
7. Other Business - Incubator Update
Acting Director of Economic Development Marc Nevinski informed the EDA that
he has received an application from a company to locate in the incubator. He
further informed the EDA that Tl lines have been wired in the incubator building
and that the cost to wire the suites is $500 to $1,000. He further noted that the Tl
lines will hopefully attract some high tech companies.
8.
Consider Offer to Settle Northstar Die Castina Law Suit
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COMMISSIONER GONGOLL MOVED TO CALL AN EXECUTIVE SESSION OF THE EDA
TO DISCUSS PENDING LITIGATION REGARDING THE NORTHSTAR DIE CASTING LAW
SUIT. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 7-0.
10.
Adiournment
There being no further business, COMMISSIONER GONGOLL MOVED TO ADJOURN
THE MEETING. COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION
CARRIED 7-0.
The meeting of the EDA adjourned at 6:46 p.m.
~~v?~/aJtA-
Sandra Peine
City Clerk
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