05-15-1989 EDA MIN - Laserfiche WebLink

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Page 2 . Economic Development Authority Minutes May 15. 1989 2. Drop the Conference Center from the proposal and eliminate the need for sewer and water. 3. Postpone the project until next April 1990 when the utilities question will have more time to be resolved. Mike Leary stated that the City needs to develop the eastern section of Elk River and questioned why then does the City expect the developers of the Hotel-Conference Center to pay for the feasibility study. Pat K1aers. City Administrator. indicated that the eastern area is not in the sewer and water district. He stated that sewer and water is planned for the western area of the City. He indicated that the only reason that sewer and water to the east end of the City is being considered is because of the Hotel-Conference Center request for service. . Discussion pursued regarding who paid for the feasibility costs for the western area of the City. The City Administrator indicated that the City front ended most of the cost. Commissioner Holmgren suggested that the City front end the cost to the eastern end of the City also. The City Administrator explained that the eastern end and the western end feasibility studies are two different matters. He indicated that there was less risk factor in the feasibility study going to the west and further that this was proposed and planned for by the Growth Management Plan Task Force. Commissioner Tra11e indicated that the City is trying to protect the tax payers and that they are not in a position to offer the use of Tax Increment Financing funds from TIF #4 at this time. Rob VanValkenburg stated to the Commission that he feels the Conference Center is needed and makes for a better project with it included. He further indicated that there is only a certain amount of money that can be put into a project. such as the Hotel and Conference Center. Mr. VanValkenburg stated that they would try to rework the numbers to include the $70.000 - $100.000 sewer and water cost. but indicated that it just may not work out. COMMISSIONER HOLMGREN MOVED TO APPROVE DEVELOPMENT OPTION #1. AND THAT THB OPTION INCLUDETHB FOURCONTINGENCIES~ A THROUGH D. AND FURTHER THAT THB $70.000 UTILITY ESTIMATE IS' SOLELY FOR THE' PURPOSE OF THE CONVENIENCE OF THB LOAN" APPLICATION AND THAT ,THERE IS NO MUTUAL OBLIGATION OR ANY RELIANCE BASED ON THIS ASSESSMENT FIGURE..AND THAT THERE BE NO OBLIGATION OR RESPONSIBILITY' .ON THE. ,CITY' SPART. COMMISSIONER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. " COMMISSIONER DOBEL MOVED TO HOLMGREN SECONDED THE MOTION. CONTINUE THE EDA MEETING. THE MOTION CARRIED 5-0. COMMISSIONER . The City Council meeting took place at 7:15 p.m. Commissioner Tra11e reopened the meeting of the Economic Development Authority at 9:30 p.m.