EDA Minutes 09-09-2020MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 9th, 2020 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White,
Lloyd Hilgart, and Jim Davidson
Commissioners Absent: Steve Johnson
Staff Present: Jim Thares and Angela Schumann
1. Call to Order
Bill Tapper 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
011ie Koropchak-White questioned two bills received from the League of Minnesota
Cities. Jim Thares noted he would do some research on the invoices and provide an
update at the next regular meeting.
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0.
a. Consideration of Approving Regular Meeting Minutes — August 12, 2020
Recommendation: Approve Regular Meeting Minutes — August 12, 2020.
b. Consideration of Approving Regular Meeting Minutes — August 26, 2020
Recommendation: Approve Regular Meeting Minutes — August 26, 2020.
c. Consideration of Approving Payment of Bills
Recommendation: Approve payment of bills through August, 2020.
d. Consideration of Adopting Resolution #2020-10 Approving the First
Amendment to the UMC, Inc.'s Purchase and Development Contract
Extending UMC's Property Acquisition Advance Funding Loan Repayment
Terms
Recommendation: Approve EDA Resolution #2020-10 approving the First
Amendment to the UMC Purchase and Development Contract extending the
Advance Funding 2nd Mortgage Loan in the amount of $300,000 by extending the
principal repayment date from February 28, 2021 to July 31, 2021.
Economic Development Authority Minutes — September 91h, 2020 Page 114
e. Consideration of Approving Funding for 2020 Manufacturers Appreciation
Activities in the Amount of $750
Recommendation: Approve $750 in funding for the 2020 Manufacturers
Appreciation activities.
Regular Agenda
5. Consideration of Approving Small Business Emergency Grant Agreements in the
Amount of $5,000 to Polaris Chiropractic LLC; Breum Enterprises, LLC (dba:
Custom Cut & Color); Jai Jalaram Inc (dba: Super 8); Puram, LLC (dba:
AmericInn Motel); Hammer's Hair Lounge LLC; and 321 Jump, Inc. to Mitigate
COVID-19 Economic Impacts
Bill Tapper noted that if the EDA approved the six additional grant requests, there would
be $75,000 remaining in the fund. Tapper noted that staff summarized the grant
applications well in the report and it appeared that they all complied with the grant
guidelines.
TRACY HINZ MOVED TO APPROVE SMALL BUSINESS EMERGENCY GRANT
AGREEMENT BETWEEN THE EDA AND POLARIS CHIROPRACTIC LLC;
BREUM ENTERPRISES, LLC (DBA: CUSTOM CUT & COLOR); JAI JALARAM
INC (DBA: SUPER 8); PURAM, LLC (DBA: AMERICINN MOTEL); HAMMER'S
HAIR LOUNGE LLC; AND 321 JUMP INC IN THE AMOUNT OF $5,000 TO
MITIGATE COVID-19 ECONOMIC IMPACTS. OLLIE KOROPCHAK-WHITE
SECONDED THE MOTION. MOTION CARRIED, 6-0.
6. Consideration of Adopting Resolution #2020-11 Authorizing Entering into a
Purchase Agreement with Steven C. and Candace P. Johnson for the Acquisition of
Real Property Located at 101, 107 and 121 West Broadway in the Amount of
$829,000
Jim Thares provided background of the purchase agreement. Thares noted that Mr.
Johnson is a part of the EDA and has not been involved with any of the discussions
regarding the purchase agreement. Thares reviewed the key terms of the purchase
agreement as noted in the staff report. Thares pointed out that there are three separate
parcels for consideration of purchase that are all in Block 52.
Thares noted that if the EDA approves the purchase agreement of the properties, it would
be contingent on approval by the Planning Commission finding that the purchase is in
conformity with the Comprehensive Plan. Lloyd Hilgart asked what the purpose of
having the Planning Commission review the proposed purchase. Thares noted that it is a
State Statute requirement. Angela Schumann noted that the Planning Commission has
reviewed these types of requests in the past and are familiar with the process. From a
staff perspective, given that the Small Area Study is an appendix of the 2008
Economic Development Authority Minutes — September 911, 2020 Page 2 14
Comprehensive Plan, it is believed that it is fairly clear that the proposed purchase is
consistent with the plan. Bill Tapper also noted that what staff have proposed is
consistent with what was discussed in the closed meeting at a previous EDA meeting.
Tracy Hinz asked about discussion regarding the waiver/disclosure form of the property
owner's former realtor. Thares noted that it is included in the purchase agreement along
with a "hold harmless" agreement that was reviewed by the EDA's attorney.
011ie Koropchak-White asked if the lease with the church was a triple net agreement
(tenant pay for utilities, insurance and taxes). Thares confirmed, noting that they
currently pay for utilities and taxes. Thares noted that $2,000 is the net monthly rent with
utilities calculated as an extra payment each month for the full amount.
Hinz asked that if necessary, could the EDA discuss with the Johnson's the possibility of
vacating the second floor office suite earlier than May 31, 2021. Thares noted that
Johnson's would be open to discussions at that time if it is deemed necessary. The main
point of seeking the office lease at least until May 31, 2021 is to allow enough time for
moving out of the building. COVID-19 restrictions are impacting the move schedule for
the Johnsons. Thares noted that it would likely not be an issue due to the amount of
moving pieces with development on the block. Morphew noted that a 90 -day notice to the
church would be required.
LLOYD HILGART MOVED TO APPROVE RESOLUTION #2020-11
AUTHORIZING ENTERING INTO A PURCHASE AGREEMENT FOR THE
ACQUISITION OF REAL PROPERTY LOCATED AT 101, 107 AND 121 WEST
BROADWAY IN THE AMOUNT OF $8295000 FOR THE PURPOSE OF BLOCK 52
REVITALIZATION EFFORTS, CONTINGENT ON PLANNING COMMISSION
REVIEW FOR CONFORMITY WITH THE COMPREHENSIVE PLAN. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0.
7. Economic Development Director's Report
Jim Thares provided the Economic Development Director's Report.
Thares reviewed in detail Project Gia -Saurus progress and noted that it continues to move
forward. Thares noted that an investor is willing to complete Phase 1 and 2 of the
building at the same time and is encouraging the City to apply for funding for
infrastructure. Thares mentioned that this is a complicated project and that the City does
not have a truly shovel ready site, which is why the project is taking a long time to
develop plans for. Lloyd Hilgart asked since the developer would complete both phases at
once, if a TIF run could be re -calculated. Thares confirmed he would request that from
Tammy Omdahl, Northland Securities.
Hilgart asked if since they are building both phases right away, if they would also staff it
to full capacity. Thares responded that they would ramp up their business plan.
Economic Development Authority Minutes — September 9th, 2020 Page 3 14
Concerns were brought forward regarding the groundwater monitoring levels for Block
52 in relationship to underground parking.
Thares noted that one new prospect was introduced to the City a week ago for a trucking
sales, service, and parts dealership (Nuss). Staff recommended moving forward on
holding a joint meeting with the Planning Commission and City Council to review a
Concept Stage Planned Unit Development submittal. It was noted that a PUD may not be
required, but other land use approvals would be necessary. The City may also choose to
amend the City Ordinance to accommodate this type of user. The joint meeting would be
held on Monday, September 28, 2020 at 5 p.m.
8. 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 and PID:
Address: 113 Broadway West — PID: #155010052060 (Kc & The Boys LLC)
9. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:32 P.M. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0.
Recorder: Jacob Thunander
Approved: October 14th, 202
Attest:
Jim Thales, Economic Development Director
Economic Development Authority Minutes — September 9th, 2020 Page 4 14