05-08-2006 EDA MIN - Laserfiche WebLink

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Economic Developmenx Authority Minutes Page 3 May 8, 2006 Ms. Mehelich highlighted changes to the Micro Loan Policy, including changing the rate for Industrial to 2 percent below prime; and increasing the ma,nmum available financing for Downtown Rehabilitation from $50,000 to $75,000 with a fixed rate at 2 percent. Commissioner Motin asked if Tax Abatement could be requested, and then a Micro Loan, or if the City would require both applications up front. Also, he questioned if additional fees would be collected to cover costs. Ms. Mehelich referred to Page 3 of 14, ntunber 1 under Criteria, and also, Page 11 of 14 under Line Items. MOTION BY COMMISSIONER KLINZING, SECONDED BY COMMISSIONER GUMPHREY TO ADOPT THE AMENDED MICRO LOAN FUND POLICY AND APPLICATION. MOTION CARRIED 6-0. 7. Ms. Steinmetz provided background information regarding the proposed Encroachment Agreement between the EDA and Northern Natural Gas (NNG) for the Northstar Business Park property. She noted that in summary, the Encroachment Agreement states that if something goes wrong within the encroachment area (unless caused by NNG), the EDA would be held entirely responsible for any damages/claims. MOTION BY COMMISSIONER DWYER, SECONDED BY COMMISSIONER MOTIN TO APPRVE THE ENCROACHMENT AGREEMENT WITH NORTHERN NATURAL GAS FOR LOT 1, BLOCK 1 OF NORTHSTAR BUSINESS PARK FOR THE FOLLOWING REASONS: • THE OCTOBER 2005 MUTUAL DRIVEWAY EASEMENT AGREEMENT BETWEEN THE EDA AND CDI HOLDS CDI LIABLE IF THEY DISRUPT THE GAS LINE WITHIN THE ENCROACHMENT AREA. • THE ENCROACHMENT AGREEMENT IS AUTOMATICALLY ASSIGNABLE WHEN THE EDA SELLS THE PROPERTY. MOTION CARRIED 6-0. Commissioner Moon asked if NNG will be increasing the size of their gas lines in this area. Ms. Mehelich stated that was not offered as an option by NNG. Commissioner Moon felt that it would make sense to shift the lines to the west as part of the expansion project. 8. Other Business Ms. Mehelich noted the Crystal Distribution, Inc. and Alliance Machine have moved into their buildings. Also, Classic Acrylics has moved into their building and is fully operational. They have extended an offer to the Commission to come in for a tour. CDI and Alliance have hired 5 or 6 new employees from the Elk River area. The EDA will host an open house with CDI since a ground breaking ceremony was not held due to weather. Commissioner Kluizuig noted that she received a letter from Sherburne County Administrator Brian Bensen stating the County is looking for City representation to serve on an ad-hoc committee. The committee's purpose is to make a recommendation as to what type of entity would best serve thew needs for economic development. The time