01-14-2008 EDA MIN - Laserfiche WebLink

Home Browse Search

Economic Development Authority Minutes Page 4 January 14, 2008 Gongoll stated that he would be interested in helping out downtown businesses. Commissioner Dwyer indicated that it may be best to have the bank involved in monitoring the funds. He explained that the city would have the capability of buying 100% participation so the loan would be completely City funded but the bank would monitor the loan payments. He stated that he believes the bank would be willing to do this because of the nature of the loans. Commissioner Motin stated that he favors the loans being 100% City funded. Commissioner Klinzing explained that she believes this would be a good program to help the downtown be successful. Ms. Mehelich indicated that she will forward the EDA's comments to the Ciry Council for direction on whether or not they are interested in pursuing this program. She noted that if Council directs staff to proceed it would go back to the EDA Finance Committee to define the details and then back for EDA and Council approval. President Gongoll questioned if the Housing and Redevelopment Authority would be involved in this process. Ms. Mehelich stated that the HRA has representation on the EDA Finance Committee and this representative would be involved in the review. Update on Post Office Property Ms. Mehelich explained that she learned in speaking with a broker that the listing price for the Post Office property significantly exceeds the amount the EDA discussed a couple months ago. She noted that the property will be listed as a normal commercial listing and that depending on the approval process from the Post Office, the property should be listed in the next few weeks. Ms. Mehelich stated that she has been referring interested developers directly to the Post Office. She stated that she is looking for EDA direction on whether or not they are interested in calling another executive session to discuss a possible purchase offer on the property. MOVED BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER TVEITE TO END THE DELIBERATION ON THE PURCHASE OF THE POST OFFICE PROPERTY LOCATED AT LOT 1, BLOCK 1 MULVANEY POINT IN ELK RIVER. MOTION CARRIED 7-0. Commissioner Motin explained that the EDA held previous discussion on possibly providing assistance through tax increment financing or tax abatement to a potential business. He stated that he would like to have the ability to consider that option in the future. Commissioner Dwyer stated that any business has the ability to apply for tax abatement and each application would be reviewed to see if it fits within the City's policy. Commissioner Motin stated that previous discussions centered on a restaurant which would not meet the criteria for tax abatement. He stated that he would like to leave the option open for consideration in the future. Commissioner Dwyer indicated that he is not interested in changing the City's polity without formally discussing a polity change. President Gongoll concurred. Commissioner Motin stated that the current tax abatement polity would not allow for incentives for restaurants but he would like for discussions to take place regarding a polity modification to allow for some sort of incentive. Comtissioner Tveite stated that this is discussion for a general polity change and should not be specific to this piece of property. Commissioner Motin stated that if the overpass