EDA Minutes 01-27-2004
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, January 27th, 2004- 4:00 p.m.
Academy Room
Members Present:
Chair Bill Demeules, Roger Carlson, Clint Herbst, Assistant Treasurer
Ron Hoglund, Darrin Lahr, Robbie Smith
Absent:
Barb Schwientek
Staff Present:
Executive Director Ollie Koropchak, Treasurer Rick W olfsteller, Public
Works Director John Simola, and Recorder Angela Schumann
Guests:
Property owners Alan Loch, Dar Flatten, Karen Schneider, Pam Campbell
- DA T, Shiela Stumpf - Proposed DA 1', Marie Flicker - Chamber of
Commerce
I. Call to Order.
Chair Demueles called the meeting to order at 4:00 p.m. and declared a quorum.
2.
Consideration to approve October 29. 2003 EDA minutes.
A MOTION WAS MADE BY HOGLUND TO APPROVE THE MINUTES OF THE
OCTOBER 27'11,2003 EDA MEETING. SMITH SECONDED THE MOTION.
HERBST ABSTAINED DUE TO ABSENCE AT SAID MEETING. MOTION
CARRIED.
3. Consideration of adding or removing items trom the agenda.
None.
4. Consideration to hear from land owners of Block 35 and to determine if proposed design
concept meets EDA criteria.
Al Loch spoke on behalf on Block 35 landowners, providing an update on activity since
the last meeting of the EDA. All EDA members received copies of the information
presented at the July meeting for reference, including criteria. There were questions at
the October mceting regarding whether Block 35 landowners could meet the EDA's
criteria and what the next steps in the process would be.
Loch has facilitated meetings with landmvners regarding the project and meeting the
criteria. Loch indicated that landowners were committed to the proposed design.
although they would like clarification on some the required criteria.
EDA Minutes-OI/27/04
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All property owners have committed to improving building facades via the addition of
awnings. Fred Patch has reviewed the fayade improvements as has found nothing out-of-
like.. This requirement represents the largest share of criteria commitment. Loch noted
that the maintenance agreement requires unrestricted parking space, coordinated trash and
snowplowing services, improved landscaping, as well as an agreement recorded against
all properties. Loch indicated that property owners can meet snowplowing and common
trash requirements. He reported that landscaping has not been discussed due to lack of a
final design plan.
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Loch requested that the EDA define unrestricted parking. He stated that there are pre-
existing parking agreements with renters. Koropchak noted that the utilization of public
dollars to improve the alley and plaza may require that private parking be open to public
(non-restrictive). Lahr indicated that this condition is negotiable. There may be an option
to incorporate pre-existing rental contracts. Karen Schneider indicated that there is a
great deal of concern over giving up private space due to current parking limitations. The
EDA did note the recommended plan prepared by Steve Grittman would increase the
amount of parking; there are currently only 29 parking spaces available on the site.
Koropchak indicated that definition could be made between parking and loading zones in
order to retain specified private spaces. Schneider feels that properties need ability to
claim a certain amount of private spaces for feasibility of the project. No dedicated
private parking may be a hardship for property owners. Chair Demueles asked property
owners if that condition were removed, did they have any other problems meeting
criteria? The property owners present indicated not. Loch proposed a compromise of
"designated loading areas". Chair Demueles asked if the HRA has set a precedent for
public/private parking on Block 36? Lahr suggested that perhaps there may be a different
allocation offunds.
Loch also questioned what was meant by the agreement being recorded against each
property. Koropchak stated that the recording is intended to reinforce upholding of the
maintenance agreement. Recording against the property allows the agreement to carry
over to each renter and property owner. Loch inquired about the guarantee requirement
for the low-interest loan agreement with EDA. Koropchak noted that the EDA may
consider a low-interest loan for fayade improvements, with special consideration given to
corner block properties. If a loan is given, a guarantee is required.
Loch noted that Craig Simonson has drafted a contract, acknowledging that all work will
be done at the same time. Loch inquired what the next step in the process would be. Is
linancing available? Koropchak indicated that information on improvement costs is still
needed from property owners and that the EDA still needs to determine funding
considerations: public/private ratio and public purpose.
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Loch and property owners also discussed the roof water and drainage issue. Schluender
Construction has been asked to evaluate properties and provide and estimate. John Simola
will also work with properties to provide other recommendations. Sclmeider inquired
whether the improvements would adjust the public/private funding ratio. Koropchak
statcd that it most likely would.
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EDA Minutes -01/27/04
Chair Demueles outlined the next steps in the process:
. Steve Grittman will prepare a final site plan (to scale) incorporating parking
recommendations/adjustments, agreed-upon building fayade improvements and
landscaping detail.
. Property owners to provide building fayade improvement costs.
. Property owners to review plan with DAT to gain approval on structure and materials.
. City Administrator Wolfsteller indicated that the EDA should determine a ratio of
public to private investment, and adjust ratio accordingly in terms of parking
considerations.
. A formal, binding agreement will be put together upon plan finalization and will need
to be presented to the EDA. EDA to provide direction on length of contract. Tfthe
City is to provide funding, the commitment needs to be long term, meet criteria while
still providing flexibility, and bind all current and new property owners.
. A covenant may require all property owners to agree to replace and maintain
improvements. Loch inquired whether landscaping would be included in agreement~
Pam Campbell indicated that it will be addressed in DAT. Property owners will only
be required to maintain the landscaping recommended by DA T. Landscaping
requirements may not be as significant as large trees, etc.
Loch indicated that property owners to move forward on the above items within the next
month and ",viII have proposal and plan ready for April meeting.
Koropchak noted that the EDA must consider the following question: if public funding is
used, were desired fayade improvements achieved?
5. Consideration of a request from Aroplax Corporation to extend the balloon pavment date
for GMEF No. 16.
Korpochak provided the staff report, stating that Aroplax Corporation has inquired about
extending balloon payment purely as an incentive in 2004. Currently, the loan would
require refinancing in December. Koropchak stated that current EDA bylaws do not
allow for extensions.
Herbst expressed his opinion that the extension may be an opportunity for the city to
demonstrate interest in promoting a pro-business climate. Herbst noted that current EDA
fund levels may allow the extension. He noted that if the City spends money to get new
business it should also make efforts to retain them. Koropchak indicated that Aroplax did
not specify an extension length. Lahr inquired what the current interest rate on the loan
is. Koropchak stated that the current rate is 6.25% interest rate. Lahr asked if the
principal is needed for another project at this point? Koropchak noted that current cash
flow is good. Lahr noted that if the City extends the loan life, it will continue to earn
interest. Herbst suggested extending the loan period one time pending fund availability
and that the current loan is in good standing. Lahr asked whether another loan program is
available to Aroplax. Koropchack stated there is not and that an extension would require
changing the bylaws. The EDA briefly discussed making the extension callable.
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EDA Minutes - 01/27/04
EDA directed staff to explore any legal ramifications of the extension and bylaw change.
Report on this item at the next meeting and communicate with Aroplex on EDA's
consideration of the matter.
Members agreed to table to next meeting.
6. Executive Director's Report.
Koropchak outlined the JOBZ program, a newly designated tax-free zone program, noting
that it may impact where businesses chose to locate/start their new company. Koropchak
indicated that the program will affect the City's marketing strategy.
H- Window Building has a user/renter and there is possible interest in the Remmele
building from a production company. Wolfsteller indicated that a new business in the
Remmele building would not be assessed for the interchange project as it is too far away
from interchange for assessment. None of the City's current models go that far in
assessments.
7. Other Business.
The Tuesday, April 27, 2004 EDA Annual Meeting was noted.
8.
Adjournment.
A MOTION WAS MADE TO ADJOURN AT 5:45 PM BY LAHR, SECONDED BY
SMITH. MOTION CARRIED.
L4/~JuuuMfl-/
Ange S umann, Recorder
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