Agenda - Economic Development Authority - 10/13/2004

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Member Gromberg stated at some point the Ramsey Revolving Loan Fund needs to be funded so it gets to a point where it is a reasonable size to do something with. The consensus of the EDA was to utilize an EDA levy, rather than an HRA levy. Economic Development / TIF Specialist Sullivan reviewed land acquisition expenses in the budget. Member Steffen inquired about the $19,079 expense designated for the Sauter purchase by Sharp. Economic Development / TIF Specialist Sullivan noted this would be the Sunfish Gateway Project by McKinley Street and Sunfish Lake Boulevard. The EDA received funds from selling that property to Dennis Sharp. Economic Development / TIF Specialist Sullivan advised in order to address future needs for land acquisition and participate actively in future economic and redevelopment opportunities, it would be prudent for the EDA to seek additional funding and to recommend to City Council to levy the amount of $293,739.27 utilizing the EDA levy. He inquired if the Board would like to include training expenses in the budget. Member Kiefer indicated there should be the opportunity for the Board to look at what other Economic Developments have done in terms of creating incubators and potential hotbeds for employment and development. This would assist them in developing a plan or strategy for this group. He noted the work of the EDA is very nebulous to most people and there is a very steep training curve. It would be good to have some training on the benefits of being proactive or of being reactive. Economic Development / TIF Specialist Sullivan indicated it would be beneficial for the Board to act on opportunities to visit sites as suggested by Member Kiefer. Member Kiefer explained if they arc very proactive with training and they position themselves properly with the bridge and Highway 10, they may be able to bring in some Fortune 500 companies. With the improvement of the highway there will be more incentives for those kinds of companies to locate up this way, and if the City gets ahead of the curve and plans accordingly there could be nice opportunities in the community. Member Gromberg suggested $2,000 be eliminated from miscellaneous operating supplies and added to training. Associate Planner Wald expressed concern with reducing miscellaneous expenses. She explained Business Network Meetings, Business Tours, and the Business Connection are examples of projects that utilize funds from miscellaneous funds. The consensus of the EDA was to direct staff to specify expenses for projects that draw funds from miscellaneous operating supplies in the budget. Member Gromberg expressed concern with the public perception of a 30 percent levy increase, from the $200,000 levy in 2004 to a $293,000. Member Strommen noted with the $233,306.42 levy that was approved at the last EDA meeting the result was approximately $29 per household on a $200,000 home. If a levy is recommended over this amount there should be specific projects called out for consideration by the Council. Economic Development Authority/September 8, 2004 Page 7 of 9