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<br />MINUTES OF THE ECONOMIC DEVELOPMENT AUTHORITY <br />HELD AT THE ELK RIVER CITY HALL <br />MONDAY, MAY 8, 1989 <br /> <br />~ Members Present: Commissioners Tralle, Schuldt, Dobel, Holmgren and <br />Kropuenske <br /> <br />~ <br /> <br />~ <br /> <br />Members Absent: <br /> <br />None <br /> <br />Staff Present: Dick Fursman, Economic Development Coordinator; Pat Klaers, <br />City Administrator; Tim Keane, City Attorney; and Mike <br />Mulrooney, Economic Development Consultant <br /> <br />1. Commissioner Tralle called the meeting of the Economic Development <br />Authority to order at 10:20 p.m. <br /> <br />2. Consider 5/8/89 EDA Agenda <br /> <br />COMMISSIONER SCHULDT MOVED TO <br />COMMISSIONER KROPUENSKE SECONDED <br /> <br />APPROVE THE <br />THE MOTION. <br /> <br />5/8/89 EDA AGENDA. <br />THE MOTION CARRIED 5-0. <br /> <br />2.5 Consider 2/27/89 EDA Minutes <br /> <br />COMMI SSIONER /' HOLMGREN MOVED TO APPROVE THE <br />PRESENTED. COMMISSIONER KROPUENSKE SECONDED <br />CARRIED 5-0. <br /> <br />2/27/89 EDA MINUTES AS <br />THE MOTION. THE MOTION <br /> <br />7. <br /> <br />Hotel Update <br /> <br />Dick Fursman, Economic Development Coordinator, updated the EDA on the <br />proposed hotel/banquet facility. He indicated that the developers are <br />pursuing a SBA-504 loan. The package for this loan must be presented to <br />the loan board by May 22, 1989, in order to have the project reviewed by <br />June 1. The next available reviewal date would be July 1, which would <br />jeopardize the timing of the project. <br /> <br />Mr. Fursman explained that the developers are putting $200,000 cash up <br />front into the project, but are required by the loan application to show <br />a 25% equity injection. The $200,000 does not meet the 25%, therefore, <br />the developers are requesting City assistance by way of TIF funds for the <br />pur~hase of the land and for the razing of the existing buildings on the <br />land. <br /> <br />Commissioner Schuldt questioned whether the project is contingent upon <br />sewer and water being extended to the eastern area of the City. Mr. <br />Fursman indicated that after discussion with staff, Council and <br />consultants, it is the consensus that city sewer and water is desired for <br />this project. He informed the Council that at one time AmericInn felt <br />they could do the project by providing their own septic and well, but it <br />was the consensus of the staff and consultants that they would rather see <br />the hotel served by city utilities. <br /> <br />Mr. Fursman <br />information <br />and water <br />information <br /> <br />informed the Commission that the developers are requesting <br />regarding what their assessment cost will be to bring sewer <br />to the site. He indicated that the developers need this <br />for the SBA loan application. <br /> <br />The Commissioners discussed <br />eastern area of Elk River. <br /> <br />the need to bring sewer and water to the <br />Pat Klaers, City Administrator, stated that <br />