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EDA Minutes 06-10-2020 (Workshop Meeting)MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 10, 2020 — 4:30 p.m. North Mississippi Room, Monticello Community Center Commissioners Present: Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, and Lloyd Hilgart Commissioners Absent: Steve Johnson and Jim Davidson Staff Present: Angela Schumann and Jim Thares 1. Call to Order Bill Tapper called the workshop meeting of the EDA to order at 4:30 p.m. 2. Roll Call 3. Mid -year 2020 EDA Budget Review -Update Jim Thares introduced the item and noted that the staff report contained an analytical review of the budget through the end of May, 2020. He noted major expenses to date included the purchase of land related to the UMC expansion project, normal operating expenses, Housing Study, Industrial Land Feasibility Study, and the demolition of 300 4th Street East. Thares also projected expenses for the remaining part of 2020. He noted several large "Big Ticket Items", which estimated costs associated with the work plan for land acquisition in Block 52 and grant requests in the Downtown Fagade Improvement Program. The costs of acquisition on Block 52 were noted as estimates based on previous acquisition of property on the block. It was reminded that tax levy receipts would be added to the general fund as revenue in July and December, 2020. Thares also discussed the fund balance and projected impact analysis spreadsheet included in the agenda. It was noted that the TIF Districts for Briggs (Rivertown Residential Suites) and UMC were not yet included on the list as they were not generating income. UMC has been delayed for construction possibly due to COVID-19. Per agreed upon performance standards they are to complete construction by December 31, 2020. If construction does not begin until after December 31, 2020, TIF increment amounts may be effected. Thares reminded the EDA that there is a "right of reverter" in in the Purchase and Development Agreement so that if the developer decides to forgo the project, the land would revert back to the EDA's ownership. 4. Mid -year 2020 EDA Work Plan Review -Update Jim Thares reviewed the updated work plan as attached in the packet. He pointed out efforts related to the Wright County Workforce Pathways; the School District has obtained a Youth Internship Program (YIP) grant from the Department of Economic Development Authority Minutes (Workshop Meeting) — June 10', 2020 Page 1 1 2 Labor and Industry (DOLI). The grant is $90,000 a year, for two years ($180,000 total) to provide students paid internships in local businesses in Monticello. The goal is to partner with ten businesses for 2020 and ten additional businesses for 2021 to provide students with internship opportunities. Angela Schumann explained that the purpose of bringing the item forward was to reaffirm the EDA's commitment to their work plan and the priorities addressed, especially as the City is beginning 2021 budgeting and capital improvement planning. It was noted that ongoing conversations have occurred about their goals and objectives. 5. Block 52 Redevelopment Update Jim Thares provided a timeline of updates regarding Block 52 per the attachment in the staff report. He noted that the EDA approved the extension of their preliminary development agreement with the Beard Group with the new expiration date of February 28, 2021. The EDA's main goal of Block 52 is site control. It was noted by the Beard Group that there interest in a full block redevelopment. Thares also explained that the preliminary development agreement can be ended early by both sides if the project envisioned can't be accomplished. A lengthy discussion with the EDA members and City Staff occurred. It was understood that the EDA would need to remain focused on downtown redevelopment goals while also being realistic about the associated costs. The EDA encouraged City Staff to continue meetings planned for the end of June with the Beard Group and Block 52 property owners. A future workshop meeting to further discuss downtown redevelopment would be then need to be held. 6. Monticello 2040 + Comprehensive Plan Update This item was omitted due to the limited amount of time remaining prior to the regular meeting. 7. Adiournment TRACY HINZ MOVED TO ADJOURN THE MEETING AT 5:47 P.M. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 5-0. Recorder: Jacob Thunander Approved: July 8th, 2020 Attest: S. Economic Development Director Economic Development Authority Minutes (Workshop Meeting) — June 10th, 2020 Page 2 1 2