12-12-1994 EDA MIN - Laserfiche WebLink

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EDA Minutes December 12, 1994 page 3 8. Consider conveyina Lot 1, Block 2, Elk River Industrial Park 2nd Addition to Tescom Corporation in accordance with TIF Plan NO.9 Bill Rubin review the land purchase scenarios which were presented to T escom for the purchase of Lot 1, Block 2, of Elk River Industrial Park 2nd Addition for T escom' s future expansion. Bill Rubin stated the best option is to convey Lot 1 to Tescom by way of Quit Claim Deed and recover the value of Lot 1 through Tescom's Tax Increment payments. He further explained that because Lot 1 was not referenced in the contract for private development by and between the EDA and Tescom Corporation, an addendum to this agreement is recommended. He stated that the addendum will ensure that the conveyance and development of Lot 1, is consistent with TIF Plan NO.9. Following discussion of this issue, there was a concern among the EDA that the land could remain vacant or that Tescom could sell the land. Bill Rubin explained that an addendum to the agreement would include certain restrictions placed on the resale of Lot 1, during the life of TIF District NO.9. COMMISSIONER DWYER MOVED TO CONVEY LOT 1, BLOCK 2, ELK RIVER INDUSTRIAL PARK 2ND ADDITION TO TESCOM CORPORATION, 12161 INDUSTRIAL BOULEVARD, BY WAY OF QUIT CLAIM DEED, SUBJECT TO THE EXECUTION OF AN ADDENDUM TO THE CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE ELK RIVER EDA AND TESCOM CORPORATION. COMMISSIONER FARBER SECONDED THE MOTION. MOTION CARRIED 5-1. COMMISSIONER DIETZ OPPOSED. 9. Other Business Executive Director Bill Rubin reminded the EDA of its annual meeting to be held January 9,1995 at 6:00 p.m. President Gongoll requested the EDA consider holding quarterly workshops and also it consider the possibility of term limits for its main officers. He indicated that these issues would be discussed at the EDA annual meeting on January 9, 1995. 9.1 Consider reauest by R & D Sales to have the EDA execute a subordination aGreement re<;)Ordina refinancina Executive Director Bill Rubin indicated that Rich & Dawn Schulz of R & D Sales are requesting the EDA subordinate its mortgage position in order for the First National Bank of Elk River to be in first lien position. COMMISSIONER FARBER MOVED THAT THE EDA SUBORDINATE ITS MORTGAGE POSITION TO R & D SALES. COMMISSIONER DWYER SECONDED THE MOTION. MOTION CARRIED 6-0. 9.2 Update on City's review and permittina process Executive Director Bill Rubin updated the EDA on the progress of the City's review and permitting process.