11-05-1990 EDA MIN - Laserfiche WebLink

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Elk River Economic Development Minutes November 5, 1990 Page 2 e Commissioner Dobel arrived at this time. 6. Prospects Report Mike Mulrooney, Economic Development Consultant, reviewed eight potential prospects that he and the City staff are to encourage location or relocation within Elk River. prospects are outlined in a 11/1/90 memo to the EDA. wi th the EDA working with The eight 7. Jliscmssion on City Incubator Buildinl'! Proposal Mr. Mulrooney discussed with the EDA his memo dated 11/1/90, that relates to a City incubator facility. The memo and attached draft site proposal showed a 30,000 square foot block building that included five office/work areas. Based on current costs for land, construction, and site landscaping, it is estimated that the facility could be built for approximately $900,000 ($30 per square foot). Mr. Mulrooney stressed the point that the proposal is only in the concept stage and that the City should not move forward until it has firm commitments from companies that are willing to locate in such a facility. In this manner, the City would not be constructing a facility without any revenue commitments. e The EDA discussed the issue of whether or not an incubator facility owned by the EDA would be a permanent home for companies and businesses or whether the facility would simply be a three to five year temporary home. Addi tional discussion took place on the minimum amount of revenues needed through rent or leases in order to make a EDA owned facility cash flow so that it would not be a financial loss. It was noted that additional financial analysis needs to be done before pursuing a project and that legal information needs to be obtained regarding the EDA bond and debt responsibility for such a facility. The EDA indicated its interest in pursuing this concept and having addi tional discussions on the issue when and if firm commitments from businesses and companies materialize. 8. Discussion on 1991 EDA Work Plan Bill Rubin, Economic Development Coordinator, reviewed with the EDA his November 1, 1990, memo on a 1991 Economic Development work plan. Mr. Rubin stressed the need to develop priorities in order to appropriately use the limited amount of revenues that are available for economic development activities. It was noted that the incubator project previously discussed and the reorganization of the EDA (discussed at the October EDA meeting) should be added to the work plan. e The EDA discussed the industrial exchange group that met initially in early 1990. Commissioner Kropuenske indicated that he was involved in this group and would like to see the project worked on further in 1991. lni tial response to developing a formal industrial exchange group was positive and some of the benefits of having industrial leaders within Elk River meet on a quarterly basis were reviewed. The