09-06-2008 EDA MINMEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, SEPTEMBER 8, 2008
Members Present: President Dwyer, Corrunissioners Farber, Klinzing, Motin, Touchette,
Tveite and Zerwas
Members Absent: None
Staff Present: Community Development Director Jeff Gongoll, Director of Economic
Development Catherine Mehelich, Economic Development Assistant
Annie Deckert, and Recording Secretary Debbie Huebner
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 5:30 p.m. by President Dwyer.
2. Consider A eg nda
MOVED BY COMMISSIONER TVEITE AND SECONDED BY
COMMISSIONER MOTIN TO APPROVE THE SEPTEMBER 8, 2008 EDA
AGENDA. MOTION CARRIED 7-0.
3. Consider Consent Agenda
MOVED BY COMMISSIONER KLINZING AND SECONDED BY
COMMISSIONER TOUCHETTE TO APPROVE THE CONSENT AGENDA AS
FOLLOWS:
3.1. AUGUST 11, 2008 REGULAR MEETING MINUTES
3.2. CHECK REGISTERS
3.3. BALANCE SHEET
3.4. REVENUE/EXPENDITURE REPORT
MOTION CARRIED 7-0.
4. Open Mike - No one was present for Open Mike.
5. Discuss 1715 Avenue Focused Areas Study~FAST),
Mr. Gongoll stated that the FAST strategy is proposed to complement and maximize the
benefits of the Northstar Commuter Rail operation, providing short and long range
guidelines for new development. He reviewed the next steps for the project including 1)
establishing the project boundaries/information assembly; 2) scope of work; 3) determine
infrastructure needs; and 4) implementation, as outlined in his report to the EDA dated
September 8, 2008.
Commissioner Farber asked how long the study would take. He stated that Mr. Powel was
eager to move ahead with the Gateway property. Mr. Gongoll stated that he did not have a
Economic Development Authority Minutes Page 2
September 8, 2008
time line and would estimate 6 -12 months to complete. He noted that a time limit could
be set by the EDA.
Commissioner Touchette asked if there was a reason to sell quickly. Mr. Gongoll stated no.
He stated that their main focus was the 1715[ Avenue corridor area. He discussed existing
development in the surrounding area.
President Dwyer suggested that staff request proposals, bring them back to the EDA, and
then they could look at establishing a timeline. Commissioner Farber stated that he did not
want to lose businesses in the process of completing the study. Mr. Gongoll stated that it is
not the intent to drag out the process, since the goal is to market the property. President
Dwyer noted that the city has an agreement for the land previously owned by Cargill that it
would not be developed. Commissioner Zerwas stated that it may be cost-effective to take
the Cargill property out of the study area. Commissioner Morin stated that the agreement
on development expires in approximately 14 years, and that it might be good to have a plan
for the future, and that bringing Ulysses Street down to 165~h Avenue would affect the
Cargill property. Commissioner Tveite concurred. He stated that both ashort-term and
long-range plan would be helpful and he would encourage the proposals to state a firm time
line. He stated that whoever submits proposals should explore what has and has not worked
in other cities with transit stations, such as Seattle.
Commissioner Klinzing stated that she would anticipate doing the study in parts, looking at
the 1715 Avenue corridor first. She agreed that the non-city owned Cargill property should
be in the long range plan. She stated that any plan will be their "best guess", since the EDA
does not know what the market will bring.
President Dwyer stated the following items need to be considered: 1) what is the EDA
looking for out of the study; 2) how long will it take; 3) visioning for property that won't be
available for some time; and, 4) cost.
Commissioner Klinzing noted that since Elk River is Energy City, developments should "tie
in" with LEED standards.
Mr. Gongoll noted that there are a number of other cities along the Northstar Corridor that
have done studies. He suggested looking at these studies to see what they have found and
bring this information back to the EDA.
Discussion followed regarding the boundaries of the study area. Commissioner Morin asked
if the study area will include west of the railroad tracks, from 175 Avenue to where
Highway 10, Highway 169 and 101 meet. He asked if west of Highway 10 will be left out.
Mr. Gongoll stated that most of the property west of Highway 10 is spoken for, except for a
couple of lots. Mr. Touchette stated that they need to know the scope of the larger study
area and then look at individual pieces of it. President Dwyer stated that the areas north and
south would be considered more long-term for development. Commissioner Touchette
stated that these properties are empty today and he would hate to miss an opportunity for
development.
6. Update on Entertainment Center Proposal
Mr. Gongoll stated that the city received a memo from Energy Entertainment Enterprises,
LLC, withdrawing their proposal, and stating that they are open to meeting with city. He
noted that they have also asked that their $5,000 tax abatement application fee be refunded.
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September 8, 2008
Page 3
Mr. Gongoll explained that the city's tax abatement polity and application states that the
application fee is non-refundable.
Commissioner Zerwas stated he did not feel the city and the applicant were that far apart in
reaching some sort of agreement, and supported staff continuing to work with them. He felt
that if the County were to participate, the project may still be possible.
Commissioner Farber explained that the applicant was looking for a commitment from the
city, but that the city needed them to provide information regarding their financial investors.
President Dwyer stated that by policy, the city cannot refund their application fee, but he
also supported staff continuing talks with them.
Commissioner Motin stated that he also was willing to have staff continue discussions. He
stated that he felt they wanted a commitment from the city, and the city wanted to know
who would finance their project.
Commissioner Farber suggested that a timeline could be established, and if nothing
happened in one year, the project would go away. Commissioner Zerwas suggested a
shorter time, such as six months.
Commissioner Tveite cautioned allowing a 20-year abatement. He stated that the applicant
is proposing "up front" dollars, versus a "pay as you go".
Other Business -None
9. Adjournment
There being no other business, President Dwyer adjourned the meeting of the Elk River
Economic Development Authority adjourned 6:15 p.m.
Minutes prepared b ebbie Huebner.
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Tina Allard
City Clerk