EDA Minutes 11-13-2019MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, November 13th, 2019 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Bill Tapper, Tracy Hinz, 011ie Koropchak-White
and Jim Davidson
Commissioners Absent: Jon Morphew and Lloyd Hilgart
Staff Present: Jim Thares and Angela Schumann
1. Call to Order
Steve Johnson called the Regular Meeting of the EDA to order at 6 p.m.
2. Roll Call
3. Consideration of additional agenda items
None.
4. Consent Agenda
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. JIM DAVIDSON
SECONDED THE MOTION. MOTION CARRIED, 5-0.
a. Consideration of approving Regular Meeting Minutes — October 9, 2019
Recommendation: Approve Regular Meeting Minutes — October 9, 2019.
b. Consideration of approving Special Meeting Minutes — October 30, 2019
Recommendation: Approve Special Meeting Minutes — October 30, 2019.
c. Consideration of approving payment of bills
Recommendation: Approve payment of bills through October, 2019.
Regular Agenda
5. Consideration of Resolution #2019-09 authorizing entering into Purchase
Agreement with George and Maureen Larson for acquisition of residential lot
located at 300 East 4t' Street (PID #155019008010) in the amount of $92,500
Jim Thares introduced the item. He explained that the parcel available is located in a
residential neighborhood. It is approximately 22,000 square feet. The property is located
at 300 East 4th Street and adjacent to the Palm Street right of way. Thares indicated in
early 2018, the EDA purchased the property to the west of the Palm Street right of way.
If the EDA decided to enter into a purchase agreement for 300 East 4th Street, there
would be a combined acreage of 1.6 acres. The area would be marketed for
redevelopment opportunities. It was noted that the property is currently vacant.
TRACY HINZ MOVED TO APPROVE RESOLUTION #2019-09 AUTHORIZING
THE PURCHASE OF A RESIDENTIAL PROPERTY LOCATED AT 300 EAST
STREET. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION
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CARRIED, 4-1 WITH BILL TAPPER VOTING IN OPPOSITION DUE TO THE
PRICE OF THE PROPERTY.
6. Consideration of Resolution #2019-10 authorizing entering into Purchase
Agreement with Monticello Industrial Park, LLC for acquisition of 7.39 -acre light
industrial parcel along Chelsea Road East (PID #155143001020) in the amount of
$1,031,000
Jim Thares introduced the item and noted that the consideration for entering into a
purchase agreement is for the UMC expansion project. The land is currently owned by
Shawn Weinand (Monticello Industrial Park, LLC). The property is zoned IBC and is
already graded for future development. The estimated Wright County value of the
property is $416,500. Thares noted that the property has been listed for several years at
$4.50 per square foot. The property owner is willing to sell the property for $1,031,000,
which is a 29 percent discount from the list price.
Thares provided background information on UMC. UMC is a precision machining
manufacturer. They expect to create 60 new full times jobs that pay between $22 to $29
per hour. The building would be constructed on the new lot. The expected expansion
would be 52,000 square feet and connected to their existing building through a functional
two story breezeway. Thares noted that a Planned Unit Development (PUD) would be
required as the development proposes common space between the two parcels as well as
shared parking.
The EDA is asked to purchase the land and establish a TIF District to recover their costs.
Thares added the land acquisition would be financed through old TIF District #1-6 and
the EDA general fund.
Thares also noted that the seller asked that the earnest money be non-refundable after
February 15, 2020.
Bill Tapper asked who pays for the $40,000 earnest money. Thares responded that the
EDA and UMC would eventually enter into a Development Agreement that indicates that
UMC would be responsible for the earnest money if the project fell through after that
date. Steve Johnson asked if the agreement is in place yet. Thares stated it was not and
could not be completed yet due to the requirements that MN -DEED has for consideration
of the grant and forgivable loan funding that the City and UMC are seeking in the total
amount of $475,000.
Johnson also asked for clarification on the EDA's financing for the project. Thares
indicated that TIF District #1-6 was an old TIF District and the funds were basically
unrestricted for economic development purposes.
BILL TAPPER MOVED TO APPROVE RESOLUTION #2019-10 AUTHORIZING
THE PURCHASE OF A 7.39 -ACRE LIGHT INDUSTRIAL PARCEL ALONG
CHELSEA ROAD IN THE AMOUNT OF $1,031,000 AND FURTHER
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AUTHORIZING THE PLACEMENT OF THE EARNEST MONEY DEPOSIT IN THE
AMOUNT OF $40,000 WITH REGISTERED ABSTRACTORS, ANOKA, MN, TITLE
FOR THE TRANSACTION. OLLIE KOROPCHAK-WHITE SECONDED THE
MOTION. MOTION CARRIED, 5-0.
7. Consideration of quotes for TIF Blighted and Substandard Buildings and Properties
Inspection Services and awarding Contract to lowest qualified quote provider
Jim Thares indicated that this service was a required step in the creation of a new
redevelopment TIF District. Two qualified quotes were received. Staff recommended
tabling action to slow down the process and to have further discussions with Block 52
property owners.
Jim Davidson asked about the expected timeline for completing the inspection service.
Thares estimated about a month.
TRACY HINZ MOVED TO TABLE ACTION ON THE ITEM FOR FURTHER
RESEARCH AND/OR DISCUSSION. BILL TAPPER SECONDED THE MOTION.
MOTION CARRIED, 5-0.
8. UMC Expansion Status Update and Schedule of Action Items
Jim Thares provided an update regarding UMC's expansion and a schedule of items as
indicated in the staff report.
Steve Johnson asked if UMC would be able to fulfill its obligations and meet the
proposed schedule as the review process continues moving forward. Thares indicated yes
while noting that it will be critical for them to submit their funding applications in a
timely manner in order to stay on the outlined schedule.
9. Director's Report
Jim Thares provided the Director's Report. Thares explained in detail the Fagade
Improvement Grant Program Cornerstone Cafe update. He noted that they are actively
identifying funding sources to complete their portion of the project. Per the grant
agreement, Cornerstone has 180 days to complete the construction work on their building
from the approval. The agreement would need to be terminated by the EDA effective
November 28th or extended into 2020.
Thares also explained in detail the Greater MSP Annual Meeting. He noted that he wasn't
able to attend, but received a summary. He will be emailing that out the commissioners.
Lastly, the prospect list was reviewed. He noted that one new project was recently added
to the list — Project Kata.
10. Closed Session — Consideration of recessing to closed session to develop or consider
offers or counter-offers for the purchase or sale of real or personal property
pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3).
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Property Address: 107 Cedar Street, PID #155010053111
11. Adiourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:48 P.M. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED, 5-0.
Recorder: Jacob Thunanderyam'
Approved: December 11, 2019
Attest: QX w� A )
, Economic Development Director
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