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EDA Minutes 10-14-2020MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, October 14th, 2020 — 6:00 p.m. Mississippi Room, Monticello Community Center Participants attended in-person and remotely. Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Staff Present: Jim Thares, Angela Schumann, and Rachel Leonard 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 ACCEPT THE CONSENT AGENDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. a. Consideration of Approving Regular Meeting Minutes — September 9, 2020 Recommendation: Approve Regular Meeting Minutes — September 9, 2020. b. Consideration of Approving Workshop Meeting Minutes — September 9, 2020 Recommendation: Approve Workshop Meeting Minutes — September 9, 2020. c. Consideration of Approving Payment of Bills Recommendation: Approve payment of bills through, September. d. Consideration of approving a CY 2021 Contribution to the Initiative Foundation's Community and Economic Development Programs in the amount of $2,390 Recommendation: Approve a CY 2021 contribution to the Initiative Foundation's community and economic development programs efforts in the amount of $2,390. Regular Agenda 5. Consideration of Approving Small Business Emergency Grant Agreements in the Amount of $5,000 to Finders Keepers Gift & Consignment; Asian Cafe Sushi Grill; All Four Kids LLC; IC Enterprises LLC dba Capitan Pancho Villa; Handle Bars Barbershop; Vivian Nguyen, Inc. dba PS Nails; Hali J Designs dba Classiclue Economic Development Authority Minutes — October 14th, 2020 Page 1 15 Jewelry; and Juniper Salon Spa, LLC. to Mitigate COVID-19 Economic Impacts Jim Thares indicated that a total of eight grant applications were received for consideration at this EDA meeting. Prior to these applications for consideration, twenty- five grants have been awarded to small businesses. Thares noted that all of the grant applicants are eligible. Thares mentioned a correction to the staff report in which it called out two businesses for not meeting the employee count. It was noted in the grant guidelines that the business must have between 2 and 45 employees prior to the executive order by the Governor. Both Finders Keepers and HandleBars Barbershop were noted in compliance with the grant guidelines. If all applications were approved for this cycle in the amount of $5,000, the remaining balance would be $35,000. There would be one more grant cycle for small businesses to apply for the funds with the EDA review on 10-28-20. Staff recommended approval of the grant applications. Steve Johnson asked if all of these businesses have demonstrated that their expenses have exceeded their revenues. Thares confirmed that all of the businesses showed significant revenue impacts. Tracy Hinz asked if the EDA could extend the deadline to apply for the grants. Thares noted that the funding has to be reviewed and approved by November 15th. With the November EDA meeting falling on the 10th, that will mean that the October 28, 2020 is the final opportunity for consideration of grant applications. Hinz asked how the November 15 deadline was determined. Thares indicated that was a Federal Government deadline that the money needs to be spent by or turned back to the County. TRACY HINZ MOVED TO APPROVE SMALL BUSINESS EMERGENCY GRANT AGREEMENTS BETWEEN THE EDA AND FINDERS KEEPERS GIFT & CONSIGNMENT; ASIAN CAFE SUSHI GRILL; ALL FOUR KIDS LLC; IC ENTERPRISES LLC DBA CAPITAN PANCHO VILLA; HANDLE BARS BARBERSHOP; VIVIAN NGUYEN, INC. DBA PS NAILS; HALI J DESIGNS DBA CLASSIQUE JEWELRY; AND JUNIPER SALON SPA, LLC. IN THE AMOUNT OF $5,000 TO MITIGATE COVID-19 ECONOMIC IMPACTS. BILL TAPPER SECONDED THE MOTION. Johnson confirmed that the grant money was all coming from the Federal Government rather than the EDA's GMEF loan fund. Thares stated that one grant (Monticello Chamber of Commerce & Industry) would not be reimbursed through the CARES Act funding. They are organized under a different non-profit statute. All other grants are being funded by the CARES Act dollars. Jim Davidson asked for clarification that after the CARES Act funding deadline has passed, could the EDA vote to continue the EDA program using the GMEF loan fund. Economic Development Authority Minutes — October 14th, 2020 Page 2 15 Thares confirmed. Lloyd Hilgart noted that the EDA originally approved $100,000 for the program. Hilgart asked staff to check in with the Chamber due to the impacts of the pandemic on their specific organization. MOTION CARRIED, 7-0. 6. Consideration of Accepting 2020 Comprehensive Housing Needs and Market Demand Study Report Economic Development Director's Report Jim Thares noted that the draft Housing Study is now complete. The Housing Study began in June, 2020 by MSA Professionals. Thares introduced Matt Frater, MSA Professionals, who was joining the meeting remotely and reviewing the report for the EDA. Matt Frater reviewed the main points of the Executive Summary of the Housing Study including background information, general findings, rental & ownership findings and demand projections over the next five years. Frater noted that the Housing Study incorporated public engagement into the plan including a community survey, interviews with stakeholders, and a community conversation about housing was held. Data was the driving force of this plan, though it was balanced with community engagement comments. Major data sources included American Community Survey, HUD Comprehensive Housing Affordability Strategy, and Multiple Listing Service. It was noted that the median single-family home may not be affordable to the median income household in the next year due to increasing unaffordability and appreciation values in the market. Lloyd Hilgart asked if that is happening in other communities. Frater stated that homes are appreciating drastically all across the United States from urban to rural communities. It was noted that the purchase cost per square foot has increased faster in Monticello than in any of the other studied peer communities. Hilgart asked if the study takes into account that Monticello generally has a smaller square footage new construction home, which is why the price seems higher. Frater confirmed. Hilgart mentioned the importance of reviewing the numbers in the coming years as in the past the City has not received many new subdivisions, but that this was beginning to change. Hilgart also thought more about the square footage price and if it took into account lot size and home size. Frater responded that there is a desire and demand from stakeholders for increased options. Frater also added that the numbers are models based on projections. Frater indicated that he would discuss the square footage price questions with his colleagues and relay any new information to staff. He believed the numbers were based on building size and excluded lot size. Steve Johnson asked if the plan factored in markets surrounding Monticello including Sherburne County and Monticello Township. Frater responded that this theme was heard from stakeholders and has been factored into the plan. There are people that want large Economic Development Authority Minutes — October 14th, 2020 Page 3 15 lots and specific type of home on these lots. Demand calculations take into account what has been seen in the City itself and projects needs based on that. There was feedback from residents of Monticello looking for large lot and home development, but still living within the city limits. Jon Morphew asked how the historically low interest rate factors into the demand calculations. Frater confirmed that historically low interest rates have an impact on the housing market and could alter some of the numbers in the study, but he believed they would likely not make a huge difference. Frater pointed out that where historically low interest rates impact the most are the increase in cost and competition of existing homes. Tracy Hinz mentioned the information presented regarding the high cost of new construction rental properties, especially as it relates to people that cannot afford high rents. It was important for the EDA to be mindful and tap into resources to meet the demand for low income housing demand. Frater noted the importance of balancing the whole spectrum of the market. Johnson related the discussion the importance of having a workforce at all income levels. It was noted that the Planning Commission was invited to attend the discussion of the Housing Study. Sam Murdoff asked if the study takes into account recently completed projects. Frater explained there are data limitations that exist. In demand calculations, all of the units that are in -process or have been constructed are factored into the study because it is based on growth. Angela Schumann noted the direct correlation and its importance to the draft Comprehensive Plan update. Johnson asked if the plan was to fold the Housing Study into the Comprehensive Plan utilizing data points that would inform goals for zoning and land use suited for housing developments. Schumann responded that the Housing Study supports the draft goals, policies, and strategies in the Comprehensive Plan. She mentioned that they would incorporate some of the broad findings into the public hearing draft and refer to the Housing Study as an appendix to the Comprehensive Plan for reference. Thares mentioned that a few minor edits would be incorporated to the final plan, but asked that the EDA accept the final draft of the report. The City's website would be updated to replace the 2017 plan and the Study would be disbursed to housing developers and other interested parties. BILL TAPPER MOVED TO ACCEPT THE 2020 HOUSING NEEDS AND MARKET DEMAND STUDY. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7-0. 7. Economic Development Director's Report Jim Thares provided the Economic Development Director's Report as indicated in the staff report. Economic Development Authority Minutes — October 14", 2020 Page 4 15 Thares provided an additional update item related to Block 52. He noted that the Beard Group reluctantly submitted its 10 -day notice of termination of the preliminary development agreement due to an impasse in material conditions. No further action is required by the EDA per the direction of the EDA attorney. 011ie Koropchak-White asked what the status of purchasing the Preferred Title building. Thares noted that would be an item to discuss in a closed meeting. Tracy Hinz asked for clarity on next steps for the redevelopment of Block 52. Thares noted that a future workshop meeting would be scheduled to review next steps and to determine if any modifications should be made to the vision for the block and downtown plan. Thares added that there originally were three other developers interested in the Block. Thares explained that he has talked to each of those developers and has agreed to provide a summary status update to each of them about redevelopment efforts in the block. Lloyd Hilgart noted that the EDA should push advertisement on the properties that the EDA owns and include information on the size of these properties and the type of use that would go there. Tapper indicated that he thought that the EDA needed to get the land procured and then push marketing for Block 52. 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). Address: 225 Broadway West — PID: #155-010-051060 9. Adjourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:46 P.M. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7-0. Recorder: Jacob Thunander -F Approved: November 11 th, 2020 Attest: Ji#n Thanes, Economic Development Director Economic Development Authority Minutes — October 14th, 2020 Page 5 15