06-14-2004 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes June 14, 2004 No one appeared for open mike. Page 2 5. Strate is Industrial Marketine Activities Reyort Assistant Director of Economic Development Heidi Steinmetz provided an update of strategic industrial marketing activities. She stated that case studies were put together for Orluck Industries and SoftPac Industries which will be used as marketing tools. She stated that staff and Commissioner Tveite attended a Business Retention & Expansion visit at Great River Energy. Commissioner Tveite stated that Great River Energy is landlocked with growth at 5 percent a year, currently adding employees, looking for other space (heavy industrial) within the city, and wishes to be kept up-to-date on current development activities m Elk River. One area they are interested in is the corner of Main Street and Highway 169. He felt Great River Energy staff was very impressed and grateful that this visit had occurred. Staff will keep in touch with them to continue to help with their expansion needs. Ms. Steinmetz stated that Circuit Check purchased Marketech, which will be relocating to Maple Grove. Tenants are needed for the former Marketech building located in Elk River. She stated that MN Fabrication & Machine's would be staying in Elk River but they wish to sell their building and lease from a new owner. She brought the commissioners attention to the five informational handouts distributed at the meeting. Director of Economic Development Catherine Mehelich reviewed the draft Contract For Initial Sale and Development between Elk River Business Park, LLC, and the EDA, and an outline from Ehlers & Associates, Inc. listing development agreement points. She stated that with the exception of items 1-3 the remaining points are considered in the draft contract. Commissioner Dwyer asked how the price for Exhibit C would be determined Ms. Mehelich replied that for each landowner pricing might be different however a base market value price of the land has been established at $1.25 per square foot. This does not include additions of any special assessments and park dedication fees. Discussion occurred regarding Commissioner Motin's concerns of the langu(b)ge in the contract page 2, 4(a) the use of the words "most expeditious way" and in 4 shall review and approve". He felt this would obligate the EDA. He also questioned the language in 5(b) and 5(a)(ii) and suggested adding, "Company must meet requirements of City's Business Subsidies Policy". Ms. Mehelich stated that is the purpose for putting the types of buildings and size wanted into this contract and it will be limited to manufacturing and production projects. The landowner has the option to not request any assistance for projects known not to qualify under city agreements. She stated the additional language could be added but that the business subsidies reference is built into the financing policies and programs. She stated that she would check on