International Falls EDA would be lead agency in economic development efforts

International Falls will refocus its efforts and resources by resurrecting the city’s economic development authority.
The International Falls City Council Tuesday proposed a draft amendment to its strategic plan that would redefine the city’s relationship with the Koochiching Economic Development Authority and define members of a city EDA.
The council is expected to vote on the proposal when it meets Sept. 15 to allow a vote of the full membership. Councilors Gail Rognerud and Paul Eklund were absent from Tuesday’s meeting.
Councilor Tim “Chopper” McBride, who serves as the chairman of the city’s Economic Development Committee, said the council agreed to get aggressive on economic development when it met three years ago to discuss changes to the city’s strategic plan.
While the city agrees that the KEDA has value, McBride said the agency needs to be changed. The city will continue to play a role in the KEDA when collaboration between governments is needed, if the amendment is adopted, McBride said.
Instead, the city will use its own EDA to help draw development and expansion to the area.
McBride said the city’s EDA Committee would not be political and would be made up of area citizens who are successful entrepreneurs and finance specialists, one elected city official and at least one citizen at large. The group would advise and recommend projects and actions to the EDA, which would be made up of the council.
Mayor Shawn Mason noted that the draft amendment would define the Falls EDA as the lead agency for efforts within the city.
The city would support efforts by the KEDA to expand cold weather testing and the countywide Small Business Development Center, which is located in the KEDA office, she added.
The proposal also calls for the KEDA Board to meet with Minnesota Rep. Tom Anzelc and Sen. Tom Saxhaug to discuss the KEDA’s structure and future. Mason said the political model of the KEDA “is ill.”
“The city needs to make sure it’s in control of its own destiny,” Mason said.
Rob Boyd, a former member of the KEDA, credited the council for moving forward with the city EDA. The city deserves its own EDA, based on the city’s economic viability and population, compared to other communities in the county, he said.
“We need economic development now and we need economic diversity now,” he told the council.
In other business Tuesday, the council heard from Joe Boyle, attorney, who said the city will await a decision regarding Minnesota Highway 332 from Minnesota Transportation Commission Tom Sorel.
An earlier decision, which has been withdrawn, was the basis for lawsuit against Sorel and the state. As a result of the withdrawal, the court dismissed the case brought by the city and said it may seek relief should Sorel issue a decision that the city again disagrees with.
The council also heard from Councilor Cynthia Jaksa, chairman of the city’s Finance and Legislation Committee, that the council is expected to adopt a 2009 levy that is much lower than the amount collected from taxpayers this year.
Jaksa said the council could see a $300,000 decrease in the amount it collects from city taxpayer in 2009 compared to 2008. The council must set a proposed levy by Sept. 15, according to state law. The proposed levy may be reduced after that, but not increased.
The council agreed to support a subordination agreement involving a building owned by Daniel and Deborah Griffith at 343 Third St. The council agreed to a deferred loan repayment agreement for $19,148, which includes forgiveness of the debt after 10 years and a revolving loan mortgage for $9,573 which includes deferred payments for five years, with monthly payments after that for five yeas at 2-percent increase.
The action will allow the Griffiths to make improvements to an apartment within the building.
The council also approved a 2-percent hourly wage increase, retroactive to Jan. 1, for clerical and public works employees represented by the International Union of Operating Engineers Local 49.