11-13-1996 EDA MIN - Laserfiche WebLink

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EDA Minutes November 13, 1996 Page 2 e . Housing and Redevelopment Authority . Utilities Commission . Rivers Edge Downtown Development Corporation . Chamber of Commerce Board of Directors Paul noted the four major issues identified by the Task Force as follows: 1 . Industrial Base 2. Internal Business Retention/Growth 3. East Highway 10- Development/Redevelopment 4. Downtown Redevelopment The next step in the process includes completing a specific action plan for each of these four issues. Commissioner Holmgren questioned at what point the EDA may actively begin recruiting companies to relocate in Elk River. Paul noted the city is currently actively involved in business recruitment. Commissioner Bender explained a plan to increase industrial development has yet to be determined which all groups and committees in the city will support, which will include recruitment. business incubator program, and the energy city element. e Commissioner Duitsman indicated there will be some minor changes made to the mission statement. but that it generally approved by consensus by the Task Force members. It was the consensus of the EDA Commissioners to support the Strategic Planning Task Force's progress to date, as well as the mission statement. 6. Discussion - Business Incubator Proqram Paul explained the parameters of the proposed business incubator program, the anticipated time frame from securing space to lease-up, the financial implications of the project, and potential funding sources for the project as explained in the staff report to the EDA dated November 5, 1996. Paul reviewed financial projections for the business incubator. Commissioner Duitsman questioned why the energy city element was left out, and, whether or not the rental is comparable to market rates. Paul noted that energy city-related businesses are certainly part of the prospective market but that the intent is not to leave out other potential businesses. Harlan Jacobs, representing Genesis Business Centers, explained the rental rate is very favorable and the EDA should not have a problem filling space. e Discussion followed regarding rental spaq:e needs of prospective businesses, costs of site improvements, and improvement l,:osts that may not be recaptured. Pat Klaers noted there will be approximately $51,000 that will not be recaptured. Possible sources of funding are the EDA Rieserve fund, possible changes in the micro loan bylaws which would allow the city to use that source, as well as the DTED loan fund. Paul explained the DTED loan fund is made up of federal dollars granted to the city and loaned to Tescom. Tescom is paying back that loan at