EDA Minutes 04-08-2020MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 8th, 2020 — 6:00 p.m.
Go To Meeting — Telepresence
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie
Koropchak-White, Lloyd Hilgart, and Jim Davidson
Staff Present: Jim Thares, Jeff O'Neill, and Angela Schumann
1. Call to Order
Steve Johnson called the Regular Meeting of the EDA to order at 6:00 p.m.
2. Roll Call
3. Consideration of additional agenda items
None.
4. Consent Agenda
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. JON MORPHEW
SECONDED THE MOTION. MOTION CARRIED, 6-0-1 WITH OLLIE
KOROPCHAK-WHITE ABSENT FOR VOTE.
a. Consideration of approving Regular Meeting Minutes — March 11, 2020
Recommendation: Approve Regular Meeting Minutes — March 11, 2020.
b. Consideration of approving payment of bills
Recommendation: Approve payment of bills through March, 2020.
Regular Agenda
5. Consideration of termination of Facade Improvement Grant Agreement with
Tricambra Foods, Inc. dba Cornerstone Cafe
Jim Thares introduced the item and noted that Tricambra Foods had been awarded a
$100,000 grant from the EDA through the Fagade Improvement Program. As part of the
guidelines, the property was to have completed the improvements 180 days following the
contract. The 180 day timeline expired on March 24, 2020.
Thares noted that staff had met with the owners of Cornerstone Cafe and they noted that
the project completion deadline may not be achievable. Thares explained that the EDA
Attorney recommends terminating the agreement for liability concerns.
Thares stated that staff would like to re -convene the Block 35 property owners and
business owners to discuss ways to make the program more accessible yet meaningful.
Thares noted that there is one property owner on the block that has serious interest in the
program.
Economic Development Authority Minutes — April 9, 2020 Page 114
Jim Davidson asked if this termination limited them from applying again. Thares
indicated that they would be eligible to apply again.
BILL TAPPER MOVED TO APPROVE TERMINATING THE FAQADE
IMPROVEMENT GRANT AGREEMENT WITH TRICAMBRA FOODS, INC. DBA
CORNERSTONE CAFE DUE TO NON-PERFORMANCE. LLOYD HILGART
SECONDED THE MOTION. MOTION CARRIED, 6-0-1 WITH OLLIE
KOROPCHAK-WHITE ABSTAINING DUE TO TECHNICAL DIFFICULITIES.
6. Consideration of GMEF Loan Payment Forbearance for Rustech Microbrewery
Jim Thares stated that the item was for a Loan Forbearance for Rustech Brewing. Thares
indicated that Rustech has been making all of its loan payments on time, but is being
financially hit by the COVID 19 outbreak. Per Stay at Home orders, Rustech has had to
significantly alter their service and can only sell items for pick-up/take out. Bill Burt,
owner of Rustech, reached out to staff requesting a three-month forbearance. Staff are
recommending a six-month forbearance to ensure they will not have to come to the EDA
(if necessary) and this timeframe also matches the recently approved SBA debt relief
program guidelines.
Thares indicated that the EDA Attorney would prepare a document and have both the
EDA and Rustech sign.
Steve Johnson clarified that principal and interest would still be due, just at a later date
now. Bill Tapper asked if interest would continue to accrue. Thares indicated that he has
researched other communities and would recommend no interest accrual during the
forbearance period. Tapper stated that the information about interest should be included
in the document. Thares concurred.
Jon Morphew and Tracy Hinz noted that they are investors of the brewery and would
abstain from vote.
BILL TAPPER MOVED TO APPROVE A GMEF LOAN PRINCIPAL AND
INTEREST PAYMENT FORBEARANCE PERIOD OF SIX (6) MONTHS
BEGINNING ON APRIL 1, 2020 AND RUNNING THROUGH SEPTEMBER 2020
(APRIL, MAY, JUNE, JULY, AUGUST, SEPTEMBER) FOR RUSTECH
MICROBREWERY AND DOCUMENTED THROUGH A LETTER AGREEMENT.
OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 5-
0-2 WITH JON MORPHEW AND TRACY HINZ ABSTAINING FROM VOTE.
7. Consideration of GMEF Loan Payment Forbearance for Monticello RV Center
Jim Thares indicated that this item was another loan forbearance request, but from
Monticello RV Center. The dealership is temporarily closed due to Stay at Home orders
and diminished business traffic. They also have been unable to attend any RV shows that
is typically a huge selling opportunity for the business.
Economic Development Authority Minutes — April 9''', 2020 Page 2 14
Thares recommended the same terms as the loan forbearance for Rustech Brewing, with a
six-month period staring in April. No accrual of interest would occur during this time. It
was noted that Monticello RV Center did make their April loan payment. This would in -
effect be a five-month forbearance.
Bill Tapper suggested that the forbearance time period be the same for each applicant.
Thares concurred with that also.
TRACY HINZ MOVED TO APPROVE A GMEF LOAN PRINCIPAL AND
INTEREST PAYMENT FORBEARANCE PERIOD OF SIX (6) MONTHS
BEGINNING ON MAY 11 2020 AND RUNNING THROUGH SEPTEMBER 2020
(APRIL, MAY, JUNE, JULY, AUGUST, SEPTEMBER) FOR DSN INVESTMENTS,
LLC DBA MONTICELLO RV CENTER AND DOCUMENTED THROUGH A
LETTER AGREEMENT. BILL TAPPER SECONDED THE MOTION. MOTION
CARRIED, 7-0.
8. Director's Report
Jim Thares provided the Economic Development Director's Report as indicated in the
staff report.
Thares thoroughly highlighted the Emergency Financial Assistance Program letter. He
noted that the letter was sent out to all Chamber members and as many non -Chamber
members as possible. Staff are receiving responses to the letter. Thares stated that he
would bring all summarized comments from businesses to the EDA April 22"d meeting
for consideration of an emergency subsidy.
The EDA discussed in detail the UMC project. It was noted that the minimum assessment
agreement was not acceptable to the County Assessor. The EDA discussed that staff
should reach out to UMC for a discussion on the loss of value and possible TIF fund
deficiency. Thares would report back to the EDA at their next meeting.
Jeff O'Neill stated that Xcel Energy is planning to continue enhancing the Monticello
plant and that the value would continue.
9. 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)
Property Address: PID #155223000010 and PID #155194000010
Property Address: 213 - 3rd Street West — PID #155010031031
10. Adiourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:45 P.M. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED, 7-0.
Economic Development Authority Minutes — April 9th, 2020 Page 3 14
Recorder: Jacob Thunander
Approved: ay 13th, 2020 l
Attest:
, Economic Development Director
Economic Development Authority Minutes — April 9t', 2020 Page 4 14