EDA Minutes 12-11-2019MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, December 11th, 2019 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Jon Morphew, Tracy Hinz, 011ie
Koropchak-White, Lloyd Hilgart, and Jim Davidson
Commissioners Absent: Bill Tapper
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
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0.
a. Consideration of approving Regular Meeting Minutes — November 13, 2019
Recommendation: Approve Regular Meeting Minutes — November 13, 2019.
b. Consideration of approving Workshop Meeting Minutes — November 13,
2019
Recommendation: Approve Workshop Meeting Minutes — November 13, 2019.
c. Consideration of approving Regular Meeting Minutes — December 02, 2019
Recommendation: Approve Regular Meeting Minutes — December 2, 2019.
d. Consideration of 2020 Initiative Foundation Contribution in the amount of
$2,390.00
Recommendation: Approve $2,390 allocation to the Initiative Foundation for its
2020 fundraising efforts.
e. Consideration of 2019 underpayment in the amount of $587.42 for common
area maintenance for EDA owned lot located at 220 West Broadway
Recommendation: Approve the common area maintenance underpayment amount
of $587.42 for 2019 associated with the EDA owned parcel located at 220 West
Broadway.
L Consideration of approving payment of bills
Recommendation: Approve payment of bills through November, 2019.
Regular Agenda
5. Consideration of 2020 Wright County Economic Development Partnership
(WCEDP) Membership Fee in the amount of $2,606.00 — Duane Northagen,
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Executive Director. WCEDP
Jim Thares introduced the topic and Duane Northagen from the Wright County Economic
Development Partnership (WCEDP).
Northagen explained that WCEDP is the only county -wide economic development
organization. The WCEDP is primarily funded through Wright County with member dues
making up the balance of the funds.
Northagen explained that the organization assists communities in Wright County with
their economic development needs. Their scope of work is dependent on the needs of the
individual community.
Northagen explained several programs and organizations that WCDEP is involved with
including: MNCAR, CMA and workforce pathways. Northagen invited the EDA to
attend their annual meeting on Friday, January 31, 2020, which includes a breakfast and
award presentation given to four communities for their work related to economic
development. Ross Bernstein, author and noted motivational speaker will be the featured
guest presenter.
TRACY HINZ MOVED TO APPROVE THE 2020 ANNUAL WCEDP MEMBERSHIP
DUES IN THE AMOUNT OF $2,606.00. OLLIE KOROPCHAK-WHITE SECONDED
THE MOTION. MOTION CARRIED, 7-0.
6. Consideration of Preliminary Residential Development Concept for 16.7 -acre
Country Club Addition parcel along 711 Street West (adjacent to I-94) — Michael
Hoauberg, Headwaters Development, Lakeville, MN
Jim Thares introduced the item and explained that Headwater's Development Company
has developed a concept for a 120 -unit apartment building along with 37 detached patio
homes geared towards seniors. Headwater's Development, LLC has started construction
of its 96 -unit senior living facility on County Road 39 near the Kwik Trip Convenience
Store located on Hart Boulevard. The project was approved by the council in the spring
of 2019.
They are interested in the property that is owned by the EDA along Interstate 94 (16.7
acres). Thares introduced Michael Hoagberg of Headwater's Development.
Hoagberg noted that when they invest in communities, they are in it for the long-haul.
Their proposal for this site is geared towards age restricted affordable units and takes into
consideration the ability to offer services and features that add value to the proposal due
to the presence of their assisted living facility which is currently under construction near
the Kwik Trip on the east side of Monticello along Hart Boulevard. He said that staff and
programing at that facility could be more intensively and efficiently used to provide
opportunities to residents of this proposed project as well.
Angela Schumann, Community Development Director noted that the EDA would need to
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enter into a Right -of -Entry with Headwaters so they can complete soil testing and other
due diligence before purchasing the land.
Jim Davidson asked for more clarification on the phasing of the project. Hoagberg
explained the that the project would be separated into two projects, but development
could be run contiguously. Steve Johnson asked what the next step would need to be to
move the concept development proposal forward. Hoagberg explained that access to the
site would need to be granted from the EDA. Hoagberg noted that the site would be
restored to its original condition from any work such as surveying or soil testing.
Tracy Hinz asked if there any guidelines for living on the property besides age
restrictions. Hoagberg commented that 100% of the units would be affordable and meet
the 60% AMI. 011ie Koropchak-White asked if they have completed any other similar
projects before. Hoagberg noted that they are working on a project in Chanhassen. He
noted that they have completed this type of project before, but not with the health care
component.
Steve Johnson asked if there was a shortage of this type of housing/segment to be filled.
Davidson asked if residents in these apartments would have priority to medical services
offered at their senior living facility being built on County Road 37. Hoagberg
commented that it could be an option, but that they would have to work through the
details. Hoagberg also stated that home care services could come into the homes of these
residents.
An expansion was noted on the plan sets that were provided in the EDA packet. Lloyd
Hilgart asked if the expansion project could accommodate another assisted living facility.
Hoagberg explained that they were not planning to have any restrictions on the units.
The emphasis will be to address the needs of seniors.
Hilgart noted that the State recently made changes to the assistance for affordable senior
housing projects. Hoagberg further summarized that a new scoring system has been
developed and, in order to score high, new the project needs to have 100 percent
affordable housing. Hoagberg also commented that they are working through whether the
patio homes would also be 100% affordable. He stated that they would not necessarily
need to be affordable and that the rent would be within 10 percent of the apartments.
TRACY HINZ MOVED TO APPROVE A RIGHT -OF -ENTRY TO HEADWATERS
DEVELOPMENT COMPANY WITH THE EDA. LLOYD HILGART SECONDED
THE MOTION. MOTION CARRIED, 6-0.
Davidson asked if elevations have been completed and if rental rates have been
established. Hoagberg declined but stated that the project would be complimentary to the
construction of their facility on Country Road 39. Hoagberg noted that he would present
the rental rates at a future time.
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Jim Thares recommended not entering a letter of intent with Headwater's Development a
this particular meeting as the EDA needs to better understand the value of its land and the
process of moving forward if a TIF application is received from Headwaters'. He noted
that an EDA workshop could be scheduled in January if the timing works to further
discuss the project.
JON MORPHEW MOVED TO TABLE ACTION ON ENTERING INTO A LETTER
OF INTENT WITH HEADWATERS DEVELOPMENT. JIM DAVIDSON SECONDED
THE MOTION. MOTION CARRIED, 6-0.
7. Director's Report
Jim Thares provided the Director's Report and reviewed the Prospect List. Thares
explained that staff have been working with UMC to submit a funding application
through MN -DEED called the Minnesota Investment Fund (MIF). The application is
expected to be submitted within the next week or so. Staff and UMC would also be
submitting another financial assistance application to the JCF (Job Creation Fund)
program through DEED about a week after the MIF submittal.
Angela Schumann explained that the City of Monticello has been working on revising its'
Comprehensive Plan. The plan is broken into two key components: vision and the
comprehensive plan. It was noted that the draft vision report is ready for review by the
community and City Boards. Schumann requested comments from the EDA by
December 23rd.
A final report would be presented to the City Council in January and the comprehensive
planning process would begin shortly after that. Schumann also explained that there is an
opening on the Planning Commission and that staff are actively searching for an addition
to that board.
8. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 6:46 P.M. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0.
Recorder: Jacob Thunander
Approved: January 8, 2020
Attest:
, Economic Development Director
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