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4.0. SR 08-12-1996ITEM 4. SPECIAL MEETING OF THE ELK RIXrER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL MONDAY, FEBRUARY 12, 1996 Council Members Present: ~EDA Members Present, Mayor Duitsman, Councilmembers Dietz, Scheel, Farber and Holmgren Jeff Gongoll, and Tom Bender ~HRA Members Present: Dick Hinkle, Duane Kropuenske and Gene Schuldt, Stewart Wilson .Utilities Commission Representative Present: George Zobee _Chamber of Commerce Represenfafives and Invited Guests Present: Kermit Body, Rich Duggan, Chaflie Houle, Dennis Chuba, Jocki Schuelein, Jim Simpson, and Dick Gongoll .Staff Present:. Pat Klaers, City Administrator, Sandra Thackeray, City Clerk o Call Meetinc) To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council was called to order at 7:12 p.m. by Mayor Duitsman. Consider Aqenda COUNCILMEMBER SCHEEL MOVED TO APPROVE THE FEBRUARY 12, 1996, CITY COUNCIL AGENDA. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Consider February 5, 1996, City (~ouncil Minutes COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE FEBRUARY $, 1996, CITY COUNCIL MINUTES. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED $-0. .Discuss Economic Development Pro.qram Mayor Duitsman indicated that he called this meeting to discuss several issues pertaining to economic development in the City of Elk River. He indicated that the two main issues he wished to discuss were 11 How the City should fill the position of economic development coordinator; and 2)priorities of development in the City of Elk River. Some other questions the Mayor put on the table for discussion pertained ~o whether the City should consider using a consultant; who the economic development coordinator should report to (chain of command); and whether this person would be a spokesperson for the developers in City Hall. The Mayor indicated that communications between the economic CiLv Council/~lmules Februao- 12, 1996 Page 2 development coordinator and city council is vitally important. He further indicaled that communication between the economic development coordinator, departmenl heads, developers, chamber of commerce, etc. is also very impodant. Mayor Duitsman suggested appointing a task force to wdte a job description and to interview perspective candidates. He suggested that the task force consist of two councilmembers, two EDA members, one HRA member, the City Administrator and the Assistant City Administrator. Mayor Duitsman indicated that he wants the economic development coordinator to report to the City Administrator and that the City Administrator should attend all economic development authority meetings. Mayor Duitsman stated that the economic development coordinator would continue the role of making presentations to the EDA, HRA, and City Council. The Mayor also indicated that he would like to be kept abreast of developer meetings and contacts made with businesses. Jeff Gongoll indicated that the position of economic development coordinator must be a major position in the City. He also suggested that he provide an exit interview with Bill Rubin. Dick Gongoll indicated that he agrees that the coordinator should hold a strong position in the city. He stated that the city would be moving backwards if a consultant were hired instead of a coordinator because the City started its economic development program with a consultant. Rich Duggan indicated that he also would be concerned about using only a consultant. He felt that a consultant would not be as readily available as a staff person. It was suggested by Dick Gongoll that if a consultant is hired that it be used only for certain issues. Duane Kropuenske indicated that he felt the City needed to continue with a strong economic development coordinator that is available to respond to the business people. He indicated that he would not want to see the city lessen the role that has been established. He further suggested that the economic development coordinator report to the city administrator. Dennis Chuba agreed tha~ economic development coordinator should be a strong position in the City and the person filling the position should be able to relate to the local busnisses. He indicated his concern about keeping the process streamlined to allow developers to move forward in a reasonable timeframe. Councilmember Dietz indicated that he sees the role of economic development coordinator as assisting people with business financing. Mayor Duitsman agreed but indicated that he has also heard the concern that the position should be a spokesperson for developers in City Hall. Chadie Houte indicated that the position should reflect the development philosophy of the council. He indicated that this should be addressed in the job description. City Counci] Minutes Februa~- 12, 1996 Pa~e 3 Councilmember Holmgren discussed the role of the economic development coordinator when a large projecl comes to town that does not need financial assistance. He suggested that the economic development coordinator be the first contact person for these types of situations. Mayor Duitsman questioned whether the position should spend time to help commercial development or industrial development. After discussion it was suggested by several of those present thai there should be a balance between commercial and industrial economic development assistance, but that industrial development was the highest priority. Jeff Gongoll suggested that the city try to obtain a job description from other cities. Tom Bender suggested having a mksion statement on economic development in Elk River. He further indicated he felt that about 90% of the coordinators job should be spent on industrial development. Jim Simpson suggested that the job description and advertisement for the position be worded to' attract applicants who are experienced in the field of economic development; that the mission statement should be layed out first: and that the city may want to use o headhunter to steal a good employee from another city. Mayor Duitsman questioned whether the group would like the position to continue work with the downtown businesses. It was the consensus that the downtown area is important and that the coordinator should continue work in this area. Councilmember Father indicated that he agrees that the City should hire an experienced person for the position and that the position should report to the City Administrator. Councilmember Scheel concurred. COUNCILMEMBER HOLMGREN MOVED TO PLACE AN AD IN THE MINNESOTA L-AGUE OF CITIES MAGAZINE AND TO HAVE THE TASK FORCE REVIEW THE APPLICANTS AND FURTHER TO CONSIDER USING A SEARCH FIRM AT A LATER DATE. The motion died for lack of a second. COUNCILMEMBER FARBER MOVED TO APPOINT A TASK FORCE TO WORK ON A JOB DESCRIPTION AND TO BE INVOLVED IN THE APPLICATION PROCESS OF THE ECONOMIC DEVELOPMENT COORDINATOR WITH THE TASK FORCE TO CONSIST OF THE FOLLOWING: 2 CITY COUNCIL MEMBERS: 2 EDA MEMBERS: 1 CHAMBER OF COMMERCE MEMBER; 1 HRA MEMBER; THE CITY ADMINISTRATOR AND THE ASSISTANT CITY ADMINISTRATOR. COUNCIl. MEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. COUNCIl. MEMBER DIETZ MOVED TO NOMINATE MAYOR DUITSMAN AND COUNCILMEMBER FARBER TO THE TASK FORCE. COUNClLMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. City Council ]¥Imu~es Februa~, 12, 1996 Page 4 Mayor Duitsman indicated that the economic development work plan should discuss where the industrial base should be located in the City of Elk River. He indicated that the City's current industrial park and the McChesney industrial park are both heady full. Dick Hinkle indicated that the city should look at some properly that does not need to be served with sewer and water. He suggesled looking at property near the Edison Street area. He indicated that the mold has been set in this area for industrial development. He indicated that he does not see this area as a good location for highway commercial. Discussion was held regarding an industrial park near County Road 1. Dick Hinkle indicated that it would be imperative that an industrial park be located along a major highway for the purpose of easy access. Mayor Duitsman questioned whether the group wanted to seek another proposal for the downtown study other than from the Hoisington Koegler group. Dennis Chuba indicated that the Hoisington Koegler Group has come up with some good ideas for downtown. He questioned the purpose of looking for another proposal as he felt it would delay the process. Gene SchuIdt indicated his concern about the Hoisington Koegler Group's process which did not include any communication~ with MnDOT. He suggested on waiting on the downtown study until the new Economic Development Coordinator is hired. Jeff Gongoll suggested that the Council hold another worksession similar to the one this evening with specific issues such as "the downtown" on the agenda. Mayor Duitsman thanked all who were present for their input regarding economic development in the city. Jeff Gongoll indicated that he would appoint himself and Pat Dwyer, with Tom Bender as an alternate, to the task force. It was the consensus of the HRA member5 present fo appoint Chair Duane Kropuenske to the Task Force. The Council will officially make the appointments to the economic development task force at the next city council meeting. The appointments to be mode will be as follows: Mayor Hank Duifsman Councilmember Larry Farber EDA Chairman Jeff Gongoll EDA Commissioner Pat Dwyer (Tom Bender as alternate) HRA Chair Duane Kropuenske Chamber of Commerce Representative Itc be decided) City Administrator Pot Klaers Assistant City Administrator Lori Johnson The first task force meeting will be held on February 19, 1996, at 3:30 p.m. City Council Minut.es Februam.- 12, 1996 PaGe 5 ,5. Adioummen~ There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. The special meeting of the Elk River City Council was adjourned of 9:00 p.m. Respectfully submitted, City Clerk 1996 Economic Development Work Program Elk River, Minnesota IND UETRIAL DEVELOPMENT A. Elk River Industrial Park: In late 1995, the Elk River EDA sold its last publicly-owned parcel to the Elk River .Area public schools (District 728). The remeining vacant parcel in the Industrial Park is a 2.39-acre lot that is privately owned. A buyer has emerged for this parcel and has it under option until the end of March, 1996. While success is wished upon this company, the economic development department stands prepared to actively recruit other light manufacturing companies to ensure that th~.~ site is sold. Other Industrial Areas: The department will continue to work with owners/developers of other industrially-zoned areas in the community. These areas include the McChesney Industrial Park, Ar-Mort Commercial Park, and RR Industrial Park. During 1995, Rail 10 Park sold its rem,~-~,~g parcels and is now considered fully developed. Prospects that have specific sites/facility needs that represent a good match for the above-referenced industrial areas will be referred to the respective owners. Business Park Area: 1995 witnessed the development of the initial phase of the Elk River Business Center (Business Park). Joplin Street was constructed and it now connects Mississippi Road to US Highway 10. In addition, a f~ontage road, known as Business Center Drive, was constructed. Municipal water and sewer ]~ues were also installed to the Center's initial 37.5 acres. This was done without the benefit of city funds to underwrite a portion of the infrastructure costs. A 20,000 square foot convenience center was constructed and is ready for occupancy. In addition, the Center's first light manufacturing company obtained tax increment 6,~ancing (TIF) assistance to support the construction of its facility on a 3.0-acre lot. To continue with this momentum, 1996 ~¢o~omi¢ i)eue~opme,~! Work Progrum Page 2 the city and EDA will likely continue to provide pubhc financing programs and incentives on a case by case basis. 1996 may not be too early to begin discussions with the adjacent owner of Business Park property to ensure that it is available for Lmmec~ate development as more and more h§ht manufacturing companies are attracted to the Center's initial phase. 2. CEArTRAL B U$IArES,9 DISTRICT A CTI-v'ITIE$ A. County Administration Building: The department will continue to work with the listing agents as well as the inquiries it receives on the Sherburne County Administration Building in downtown Elk River. The building may require extraordinary costs due to its rehabilitation for a prospective user. Therefore, pubhc ~inancing and/or incentives from, say, the Elk River HRA may be necessary. B. King Avenue/Main Street R~develoPment Area: Three contiguous parcels in the northwest quadrant of King Avenue and Main Street in downtown Elk River continue to be listed for sale. The 32,400 square foot site (180 feet by 180 feet) is ripe for redevelopment as two of the three parcels are currently vacant. The rems~n~ug parcel has reverted back to a residential use and serves as a non-homesteaded apartment. Because of the extraordinary costs associated with site assembly, demohtion, and site preparation, a TIF District may have to be created to assist with this area's successful redevelopment. The department will continue to solicit developer interest in order to encourage private sector reinvestment into this area. C. Mississippi l~iver~ront Pathway Project: The department will continue to buLld upon the momentum of the efforts of the Riverfront Corridm' Committee. By April or May of 1996, it is expected that the city will learn of its fate with the Intermodal Surface Transportation Efficiency Act (ISTEA) Grant application. 1996 Eco~ora£c Deuelopmen~ Work Progrcwn Page 3 D. Downtown Events: The department will continue to work with downtown businesses and the Area Chamber of Commerce in the planning of various special events/activities in the central business district throughout the year. 3. BUSINESS RECRUITME]VT/BUSINESS RETENTION The department will continue to work in a proactive way to recruit new businesses to Elk River. The retention of existing businesses also remains a high priority. Now that Sherburne Count), has hired a full time economic development coordinator, it may be appropriate to evaluate and undertake a county-wide survey of manufacturers. A similar survey was done in 1992. The Elk River manufacturing companies continue to meet on an ',' informal basis and the economic development department has been included in many of the meetings. This represents a great opportunity to network with the industrial leaders to learn firsthand of specific issues facing them. It also represents an opportunity for the business leaders to learn about various state and local ~ancing programs and incentive programs to assist with upcoming expansions. ..STAR CITY RECERTIFICATION The department will continue to participate in the Star City Program as sponsored by the Department of Trade and Economic Development (DTED). In 1996, the economic development department will determine Elk River's eligibility for one or more of DTED's special recognition awards. If applicable, the awards/recognitions will be pursued. Although the Star City Program has evolved since its inception, it continues to be a very beneficial program. Many of its principals would be implemented with or without the Star City designation. .R. ETAIL SALES ESTIMATES AND EMPLOYMENT ES~MATEF, The department will continue to provide estimates of the growth in retail sales and full time employment opportunities in Elk River. This information is annually obtained through the Minnesota Department of Revenue and the Minnesota Department of Jobs and Training. 1996 F, cono,nic Development Work Program Pnge 4 10. DEMOGRAPHIC STATISTICS AJVD COMMUNITY PROFILE Demograpkic statistics are updated at the ~rst of the year and serve a useful purpose to those individuals and companies seeking specific information on construction activity, population distribution, and disposable income estimates, etc. The department will continue to work with the Chamber of Commerce in a collaborative effort to prepare and distribute the 1996 Community ProfLle. .0 UTREA CH/PROMOTIONAL A CTMTIES The department will continue to market the City of Elk River as a growth-oriented community with an exceptional variety of business incentive and business fi-ancing programs. To support this initiative, periodic advertising in publications such as the Minnesota Real Estate Journal, Business Media, Corporate Report Ventures, and Twin Cities Business Monthly, etc., will continue. An east way to supplement the advertising efforts is to undertake periodic ma~H- gs of the city's marketing brochure, video presentation, and other targeted ms~l~ngs. LEGISLATIVE ISSUES The department will continue to monitor proposed legislation during the upcoming session which may have an impact on economic development activities. This information will be disseminated to the EDA, City Council, city staff, HRA, and the business community. ECONOMIC DE]rELOPMENT NEWSLETTER The department will continue to prepare and distribute the quarterly newsletter that is devoted to economic development topics in Elk River. The newsletter's mai]i-g list contains ~ust under 1,800 names and will be refi~ed and expanded upon as necessary in 1996. .COMMUNITY RELATIONS As opportunities present themselves, the city/EDA should continue its leadership of' sponsoring or jointly-sponsoring workshops, speakers, forums, or seminars on topics of interest to specific groups in the community. 199G ~.co~:omic Z)e~elop,nent Work ~'~ro~rarn Page 5 In addition, information on business expansions, EDA Micro Loan approvals, and redevelopment activities, etc., wkl.l be disseminated to opinion leaders for publication. 11. .WORKSHOP.~ The department will continue to schedule workshops with the EDA, I-IRA, and other civic-based organizations during 1996. Workshops were introduced in 1995 and proved to be a successful way to present issues for broad discussion at a less formal forum.