04-08-1996 CC MIN - SPECIALSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, APRIL 8, 1996
Members Present:
Members Absent:
Staff Present:
Mayor Duitsman, Counailmembers Diefz and Scheel
Coun¢ilmember Holmgren ardved at 8 p.m.
Councilmember Farber
Pat Ktaers, City Administrator; Sandra Thackeray, City Clerk; Cliff
Skogstad, Building Official
1. Call Meetin.q To Order
Pursuant fo due call and notice thereof, the special meeting of the Elk River Cih/
Council was called fo order at 7:45 p.m. by Mayor Duifsman.
2. Consider Apdl 8, 1996, Council A.qendn
Item 5.5, Consideration of Pdvate Developers Agreement, was added fo the
agenda.
COUNCIUg~EMBER DIETZ MOVED TO APPROVE THE APRIL 8, 1996, COUNCIL
AGENDA AS AMENDED. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE
MOTION CARRIED 3-0.
3. Consider Consent A.qend~
COUNCILMEMBER SCHEEL MOVED TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
4.1 ·
4.2.
5.1.
MARCH 25, 1996, CITY COUNCIL MINUTES -- APPROVED
APRIL 1, 1996, CITY COUNCIL MINUTES -- APPROVED
SEALED BIDS ACCEPTI:D FOR TWO 1993 FORDS IN THE AMOUNT OF $5,085
EACH AND A SEALED BID FOR A 1988 CHEVROLET IN THE AMOUNT OF
$1,501.99 -- APPROVED
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 3-0.
5.2. Consider Proposal for Consultinq Services for the Library Roof Repair Project
Building Official Cliff Skogstad informed the City Council that the older roof on
the library will need to be replaced. Cliff recommended that the Council
consider accepting the proposal from Inspea, Ina., for $4,000. Cliff Skogstad
explained the scope of services provided by Inspec which include site
verification, construction documents, construction observation, and testing.
Councilmember Holmgren arrived at this time (8 p.m.)
Special City Council Meeting
April 8, 1996
5.3.
5.4.
Page 2
COUNCILMEMBER DIETZ MOVED TO A~THORIZE THE SERVICES OF INSPEC, INC., IN
THE LIBRARY REROOFING PROJECT AS OUTLINED IN THE PROPOSAL FROM INSPEC
DATED MARCH 27, 1996. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
.Consider Termination of Tax Increment Financinq District No. 12 (Neos)
City Administrator Pat Klaers requested the Council to terminate Tax increment
Financing District No. 12. He informed the Council that the Neos project was not
constructed and that this District was never certified to the County and no
increments were collected.
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 96-16, A RESOLUTION
TERMINATING TAX INCREMENT FINANCING DISTRICT NO. 12. COUNCILMEMBER
HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0.
Public Headnq on Tax Increment Financinq Plan for Tax Increment Financing
District No. 14 (Marketech, Inc.)
City Administrator Pat Klaers reviewed the request for Tax Increment Financing
District No. 12 from Marketech, Inc. He explained that the request is from Rich
Duggan, owner of Marketech. He further indicated that Mr. Duggan is
proposing to construct a 9,324 square foot office and manufacturing facility on
Lots 6 and 7, Block 1, McChesney Industrial Park. Mr. Duggan presently operates
out of two leased spaces and needs room for expansion. Pat Klaers indicated
that the total value of the project is about $400,000. Mr. Duggan is requesting
$65,100 in tax increment financing assistance. The tax increment funds would be
used to write down the cost of the land for the project. The City Administrator
explained that Marketech would retain its existing 22 jobs and create 13 new
jobs over the next three years.
The City Administrator explained that because the city is the local unit of
government creating the district, it is responsible for fulfilling the penalty clause
as required by state law. Pat Klaers suggested that the Council opt out of the
local government aid penalty by making a qualifying 10 percent contribution to
the District.
Rich Duggan introduced himself as owner of Marketech and indicated that the
company needs room for expansion and city financial help to do the project.
Mayor Duitsman opened the public hearing. There being no one for or against
the matter, Mayor Duitsman closed the public hearing.
COUNCILMEMBER SCHEEL MOVED TO ADOPT RESOLUTION 96-17, A RESOLUTION
FOR THE CITY OF ELK RIVER RELATING TO THE ESTABLISHMENT OF TAX INCREMENT
FINANCING DISTRICT NO. 14 AND THE ADOPTION AND APPROVAL OF THE TAX
INCREMENT FINANCING PLAN RrLATED THERETO LOCATED WITHIN DEVELOPMENT
DISTRICT NO. 1. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
Special City Council Meeting
April 8, 1996
Page 3
COUNCILMEMBER DIETZ MOVED TO APPROVE THE USE OF FUNDS GENERATED
THROUGH THE SELLING OF AN INDUSTRIAL PARK LOT TO THE SCHOOL DISTRICT AS
THE QUALIFYING LOCAL CONTRIBUTION OF 10 PERCENT INSTEAD OF SELECTING THE
LOCAL GOVERNMENT AID LOSS OPTION. COUNCILMEMBER HOLMGREN
SECONDED THE MOTION. THE MOTION CARRIED 4-0.
5.5. Consider Contract for Private Development
City Administrator Pat Klaers distributed a Contract for Private Development by
and between the City of Elk River, the Economic Development Authority for the
City of Elk River, and Marketech, Inc. The City Council reviewed the Contract for
Private Development.
COUNCILMEMBER DIETZ MOVED TO APPROVE THE CONTRACT FOR PRIVATE
DEVELOPMENT BY AND BETWEEN THE CITY OF ELK RIVER, THE ECONOMIC
DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, AND MARKETECH, INC.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-
O.
6. Other Business
There was no other business.
7. Adjournment
There being no further business, COUNCILMEMBER SCHEEL MOVED TO ADJOURN
THE MEETING. COUNClLMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
The special meeting of the Elk River City Council was adjourned at 8:10 p.m.
Respectfully submitted,
Sandra Thackeray
City Clerk