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<br />City Council Minutes <br />October 21, 1991 <br /> <br />Page 2 <br /> <br />e <br /> <br />5.1. Consider Reauest by Tescom Corporation to Issue Industrial Revenue <br />Bonds <br /> <br />Bill Rubin, Economic Development Coordinator, indicated that Tescom <br />Corporation has requested the City of Elk River to issue Industrial <br />Revenue Bonds in the amount of $800,000 to $1,000,000. <br /> <br />Mr. Ed Cunnington of Tescom indicated that Tescom is requesting the <br />bonds so that the Company can expand their existing facility by 20,000 <br />square feet. He stated that construction is anticipated to begin in <br />early spring and to be completed by July, 1992. <br /> <br />Mayor Tralle questioned the number of jobs anticipated to added as a <br />result of the addition. Mr. Cunnington indicated that approximately 30 <br />additional employees in the next two years were anticipated to be added <br />to the Company. Bill Rubin explained that issuing the Industrial <br />Revenue Bonds does not affect the debt of the City. <br /> <br />COUNCILMEMBER KROPUENSKE MOVED TO ADOPT RESOLUTION 91-59, A RESOLUTION <br />GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF TESCOM <br />CORPORA T ION. COUNC I LMEMBER SCHULDT SECONDED THE MOT I ON. THE MOT ION <br />CARRIED 5-0. <br /> <br />5.2. Consider Premise Permit for Camp Confidence <br /> <br />e Sandy Thackeray, City Clerk, introduced this item. She indicated that <br />Camp Confidence is requesting a renewal of their premise permit to sell <br />pull tabs at Broadway Bar and Pizza. She indicated that with the State <br />Law change, the new premise permit would be good for two years. The <br />City Clerk indicated that she had prepared a report showing the <br />percentage of lawful purpose expenditures spent within the City's trade <br />area by each of the gambling organizations operating in the City of Elk <br />Ri ver. She stated that all of the gambling organizations met the 75% <br />cri teria with exception of Minnesota Therapeutic Camp. She indicated <br />that she had just. received information from Minnesota Therapeutic <br />Camp's Accountant, Bruce A. Johnson, stating that $12,888.92 had been <br />spent in the City's trade area out of $31,255 available funds. <br /> <br />Discussion was held regarding the expenditure report submitted by <br />Minnesota Therapeutic Camp. The Council questioned the payments made <br />to Roxi Gustafson in the amount of $900 per month for four months. Mr. <br />Larry Henning was present and indicated that Roxi Gustafson transports <br />indi vidual campers to Camp Confidence Learning Center for their three <br />day visits. He stated that the $900 per month are contributions to Ms. <br />Gustafson. Mayor Tralle questioned whether the $900 was a salary to <br />Ms. Gustafson to perform these duties. Mayor Tralle indicated that the <br />City's ordinance is based on contributions to the community that <br />benefit the City and felt that payment to Roxi Gustafson for services <br />rendered, did not meet the intent of the ordinance. <br /> <br />e <br /> <br />Councilmember Kropuenske indicated that according to the figures <br />provided by Bruce A. Johnson, Camp Confidence has donated less than 50% <br />of their proceeds to Elk River's trade area in a seven month period. <br />He indicated that the 75% quota should have been met throughout the <br />