Minutes

New Brighton Economic Development Commission

Regular Meeting - May 13, 1997

7:30 a.m.

Call to Order

Chair Ken Johnson called the meeting to order at 7:40 a.m.

Roll Call

Present:	Bob Benke, Carol Frey, George Gregori, Ken Johnson, John Kaufhold, Jeff Schopf, Roger Williams

Absent:	Mike Olson, Maxine Pierson, Dean Tollefson

Also Present:	Joel Bachul, Sparta Foods President

Thomas House, Sparta Foods

Merrill Ayers, Sparta Foods

Kevin Locke, Community Development Director

Jill Hanson, Economic Development Specialist

Matt Fulton, City Manager

Approval of Minutes

The April 8, 1997 minutes were approved as written.

Sparta Foods Request

Representatives of Sparta Foods discussed their request for assistance in their proposed move to New Brighton. Sparta Foods is a publicly held manufacturer of tortillas and related ethnic food products. Sparta will be leasing an existing facility and is seeking TIF funds for leasehold improvements. The request could be set up in one of two forms: a $250,000, 6%, 10 year loan; or a "pay as you go" TIF financing for 9 years. Sparta was asked what would happen if they did not receive the assistance. They responded that it would slow their expansion effort and some projects would have to wait until it was economically feasible.

A discussion of TIF policies took place. The EDC expressed very positive thoughts about the relocation and discussed what programs may be available to help Sparta. It was concluded that our local program did not fit with Sparta's needs. The City would support Sparta's financial efforts with other agencies and sources such as the State of Minnesota's Bond Financing Program and the County's Business Loan Program. A motion was made by Gregori to welcome Sparta Foods to New Brighton but because the City has no programs that would be appropriate, regretfully decline participation but would support Sparta's efforts with other agencies. Schopf seconded and the motion was approved by the EDC. Staff was instructed to send a letter to the company explaining the decision.

Rice Creek Center

G & P Properties expressed continued interest in the Rice Creek Center and has initiated discussions with the FDJP Partnership in Omaha, Nebraska. Maps were handed out showing the Center as it is today and an example of what could happen as a result of redevelopment. The project is expected to generate approximately $750,000 of increment that could be used to make the project happen. EDC will be updated as the project progresses.

MacGillis and Gibbs

The EPA, MPCA and City of New Brighton will bring an agreement before Council tonight called a Covenant Not to Sue. This step will make it possible for the City to acquire the property and sell to others for redevelopment and eliminates the liability for clean up on future owners. The cleanup has begun on the site. Site plan discussions continue concerning the building setbacks.

Other Business

The Highway 8 Task Force will host an open house for Council and advisory commissions on May 28 to discuss current plans and address any issues that may be raised. A public meeting will be held June 5 followed by presentations to the EDC, Planning Commission and Council in June.

Special Legislation has stalled at the Legislature in Committee.

Jeff Schopf volunteered to serve as Councilmember of the Month as a representative of the EDC.

Adjourn

The meeting was adjourned at 8:45 a.m.