07-10-2000 EDA MIN
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MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, JULY 10, 2000
Members Present:
President Dwyer; Commissioners Gongoll, Koenig, Dietz, Thompson,
Farber, Motin, and Klinzing (6:05 p.m.)
Members Absent:
None
Staff Present:
Cathy Mehelich, Executive Director; Marc Nevinski, Assistant
Director of Economic Development; Pat Klaers, City Administrator;
Sandra Peine, City Clerk
1. Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 6 p.m. by President Dwyer.
2. Consider Julv 10, 2000 Aaenda
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COMMISSIONER KOENIG MOVED TO APPROVE THE 711 0/00 EDA AGENDA.
COMMISSIONER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 6-0.
3.
Consider Consent Aaenda
COMMISSIONER FARBER MOVED TO APPROVE THE CONSENT AGENDA AS FOLLOWS:
3.1. 6112/00 REGULAR MEETING MINUTES - APPROVED
3.2. CHECK REGISTER - APPROVED
3.3. REVENUE EXPENDITURE REPORT - APPROVED
3.4. BALANCE SHEET - APPROVED
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 6-0.
4. Ooen Mike
No one appeared for open mike.
Commissioner Klinzing arrived at this time (6:05 p.m.)
5. Strateaic Industrial Marketina Plan/20m Action Steos
Assistant Director of Economic Development Marc Nevinski made a presentation
of the proposed work plan for the accomplishment of tasks associated with the
Strategic Marketing Plan. The key actions to be taken within the next six months
include:
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. Product Offering
. Product Delivery and Client Services Strategy
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Julv 10. 2000
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. Marketing Strategy
. Key Account and Lead Generation Strategy
. Pricing Strategy
. Communications Promotion
. Advertising Strategy
President Dwyer requested that staff continue to update the EDA on the progress
of the Marketing Plan.
City Administrator Pat Klaers noted that one of the major components of the
Economic Development Strategic Plan is the Industrial Marketing Plan. He spoke
about the section of the Marketing Plan called Product Delivery Process and
Client SeNices Strategy. The city administrator noted that he and Commissioner
Thompson have requested Anita Duckor to present a proposal to the EDA and
City Council for her seNices to work on the city's product delivery process and
client seNices strategy. It was the consensus of the EDA that the presentation by
Ms. Duckor would be made in August.
6. Review Prooosal bv ANC/Oous
Assistant Director of Economic Development Marc Nevinski indicated that the
EDA has received a proposal from Opus Northwest in conjunction with Advanced
Nutritionals Corporation/Pouch Pac Industries (ANC) to develop the 13.97-acre
Emmerich property in the West Business Park. Marc Nevinski reviewed the
proposed financial package for the project which includes:
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. Refund 100 percent of land costs over a four to five year period Onterest
rate to be negotiated)
. $100,000 micro loan at four points below prime
. 20 percent reduction in water rates for a three year period of all water
usage in excess of 2 million gallons per month.
Marc distributed the tax increment financing policy and application for this
project.
COMMISSIONER GONGOLL MOVED TO ADOPT EDA RESOLUTION 00-1
RECOMMENDING THAT THE CITY COUNCIL OF THE CITY OF ELK RIVER CALL FOR A
PUBLIC HEARING ON THE ADOPTION OF A MODIFICATION TO DEVELOPMENT
DISTRICT NO.1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 21 AND FURTHER TO PROCEED WITH THE
EXECUTION OF THE MARKETING AGREEMENT WITH TONY EMMERICH.
COMMISSIONER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 7-0.
7.
Prooosal for Develooment of EDA Site at Joolin Street
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Executive Director Cathy Mehelich indicated that the EDA has received a
proposal for the development of the EDA site located at Joplin Street from Gary
Santwire, Rivers Crossing, Inc. Cathy noted that the city purchased the 4.36 acre
site from Country Ridge, Inc. in December 1997, with the use of excess TIF funds
from TIF District NO.5 in the amount of $198,750. She indicated that the property
was then transferred to the Economic Development Authority. She noted that
because the city used excess TIF for purchasing the property, any sale proceeds
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Julv 10. 2000
Page 3
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would have to be returned to the county for distribution. She noted that the
current fair market value of the property is estimated at $218,500.
Cathy Mehelich reviewed the development proposal submitted by Gary
Santwire. She explained that the development proposal requests the EDA to
subdivide the lot into two approximately equal size lots with the north lot being
sold for $1 to Equity Management and the south lot being sold for $1 to Dave and
Carol Riplinger (Track of the Wolt Inc.)
Commissioner Klinzing questioned the reasoning of subdividing the property into
two equal lots when one of the buildings is going to be larger than the other.
Cathy Mehelich explained that the lots would be subdivided in proportion to the
building sizes in the final proposal.
Commission Motin questioned the issue of the city having the property
earmarked for a future fire station. He noted that he wanted to be assured that
the city has other property available for the fire station.
COMMISSIONER FARBER MOVED TO AUTHORIZE STAFF TO PROCEED WITH THE
DEVELOPMENT PROPOSAL FROM GARY SANTWIRE, RIVERS CROSSING, INC., WITH
THE FOLLOWING ACTIONS:
1. A PUBLIC HEARING BE CALLED FOR THE SALE OF THE EDA PROPERTY.
2.
THE DEVELOPER PROCEED WITH THE SUBDIVISION OF THE PROPERTY INTO
TWO LOTS AND TO DRAFT PURCHASE AGREEMENTS FOR SALE OF THE
PROPERTY.
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3. A PUBLIC HEARING BE CALLED FOR GRANTING BUSINESS SUBSIDY
ASSISTANCE TO EQUITY MANAGEMENT, INC., IN AN AMOUNT OF OVER
$100,000 AND DRAFT NECESSARY AGREEMENTS.
4. A PUBLIC HEARING BE CALLED FOR GRANTING BUSINESS SUBSIDY
ASSISTANCE TO DAVID AND CAROL RIPLlNGER (TRACK OF THE WOLF,INC.)
IN AN AMOUNT OVER $100,000 AND DRAFT NECESSARY AGREEMENTS.
COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 7-0.
8. Other Business
Assistant Director of Economic Development Marc Nevinski informed the EDA that
Vertical Publishing will be moving into the Business Incubator this week.
Executive Director Cathy Mehelich informed the EDA that a joint open house is
being planned with the Chamber of Commerce to give the business people an
opportunity to meet the new business development team; Chamber Director and
City's Director of Economic Development.
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9.
Adiournment
There being no further business, COMMISSIONER MOTIN MOVED TO ADJOURN THE
MEETING. COMMISSIONER FARBER SECONDED THE MOTION. THE MOTION CARRIED
7-0.
The meeting of the Elk River Economic Development Authority adjourned at 6:55
p.m.
MCdL~~~
Sandra Peine
City Clerk
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