05-13-1996 EDA MIN - SPECIAL - Laserfiche WebLink

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Special EDA Meeting May 13,1996 Page 2 e existing Business Park. He indicated that the city has requested the purchase options in order to ensure that a site will be available for TL Feeding Systems. Pat Klaers indicated that E & 0 Tool is also considering a relocation out of the Industrial Park to the Gagne property. The Executive Director indicated that the city's proposal is to purchase the Gagne property, complete the lateral sewer and water extension, and connect the frontage road to the county driveway. Business Park lots would then be available for these two companies. He further indicated that this would be a tax increment financing project for E & 0 Tool and TL Feeding in order for the city to recapture the costs for the land and improvements. Tim Osterman indicated that E & 0 Tool presently has 35, 000 square feet and is considering constructing a new building with 60-70,000 square feet. He stated that their options were to build a satellite plant in a different state, purchase the building behind them and expand into that building, or to expand into the Business Park. Mr. Osterman suggested that the city consider using the old E & 0 Tool building as an incubator site. The Executive Director indicated that he did not feel the existing facility would be conducive to an incubator building. He further indicated that the city would be very interested in working with E & 0 Tool to sell their existing building so that they could expand into the Business Park. It was the consensus of the EDA to recommend to the Council that the city pursue the option to purchase the Gagne property. e Truckina Ooerations - The Executive Director reviewed the issues of the LeFebvre and Morrell trucking operations relocation to 171 st Avenue. Pat Klaers indicated that the biggest issue for LeFebvre relocating is a signal at the intersection of Highway 10 and 171 st A venue. He stated that the city cannot be certain that a signal will be installed at the site until approval is received from MnDOT. This approval could be five years away, even if 171 st A venue is extended across the railroad tracks and connected to the road to the north. He further indicated that LeFebvre has requested the city to consider buying their land and selling it back to them and then doing a tax increment financing project. Pat Klaers indicated that ~ T!IF project would not be legal as LeFebvre Trucking would not be able to meet the state requirement of increasing personnel. It was the consensus of the EDA to not consider a TIF project for either trucking company. 4. Adiournment There being no further business, COMMISSIONER FARBER MOVED TO ADJOURN THE MEETING. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 7-0. The special meeting of the Elk River Economic Development Authority was adjourned at 6:25 p.m. ~CIfUIIY submitted, · san~~ City Clerk