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EDA Minutes 11-29-2005 . MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, November 29th, 2005 505 Walnut Street - Academy Room Commissioners Present: Damn Lahr, Ron Hoglund, William Demeules, Tom Perrault, Susie Wojchouski Commissioners Absent: Barb Schwientek, Wayne Mayer Staff Present: Ollie Koropchak, and Angela Schumann. 1. Call to Order. Chairman Demeules called the meeting to order at 4:00 PM and declared a quorum, noting absence of Commissioners Schwientek and Mayer. 2. Consideration to approve the October 25th, 2005 EDA meeting minutes. MOTION BY COMMISSIONER WOJCHOUSKI TO APPROVE THE MINUTES OF THE EDA MEETING OF OCTOBER 25th, 2005. . MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 5-0. 3. Consideration of adding or removing items from the agenda. Koropchak added under item number 8 a potential EDA application. 4. Consideration to review and discuss proposed modification to the GMEF Guidelines to accommodate re-use of Federal dollars. . Koropchak noted that at the previous meeting, the commissioners had asked Koropchak to further research the fund payback from the TCDC loan. Koropchak reported that when fully paid back, the amount will be close to $600,000. The EDA also looked at modification to GMEF guidelines in order to encourage use of Federal dollars as compared to the current guidelines. In that regard, Koropchak stated that she had followed up with Carol Pressley Olson. The City would need to adopt a resolution designating the EDA as an LDO (Local Development Organization). That resolution, along with the revised guidelines would go to DEED for final approval. As part of this resolution, the Council would recognize that they transfer development funds to the EDA and would no longer have control over the funds. If the Council does not agree to that, then the funding stays under the federal guidelines for its life. If the funds were under the EDA as the LDO, the first re-use of funds are subject to the more restrictive EDA Minutes 11/29/2005 . guideslines. Koropchak explained that the EDA attorney had drafted proposed guidelines. His recommendation was to modify the current guidelines. Koropchak discussed the changes that had been made within the guidelines as requested by the EDA. If the EDA agrees with the proposed changes, the EDA would need to call for a public hearing date as required. Demeules asked about the financial control and decision-making authority clause. Koropchak stated that the Council is the final authority in the current grant agreement. If the Council authorizes the LDO resolution, the Council gives up that authority. Koropchak also noted that if the Council had designated the EDA as the LDO prior to authorizing the grant, the EDA wouldn't have to follow guidelines at all. Lahr stated that the premise is that the EDA becomes an LDO, so once the money cycles through once, the Federal HUD guidelines do not apply. Koropchak confirmed. Koropchak indicated that she would note to the Council in her report that once the EDA is designated as the LDO, the City could not recall those funds. Lahr asked what the Council could do with the funds without the EDA. Koropchak responded that they could manage their own loan program, but they would have to continuously follow the Federal HUD regulations. . MOTION BY COMMISSIONER LAHR TO RECOMMEND THAT THE CITY COUNCIL CONSIDER FOR APPROVAL THE MODIFICATION TO THE GMEF GUIDELINES AND APPROVAL OF THE RESOLUTION REQUESTING DESIGNATION AT THE DECEMBER 12TH, 2005 MEETING. MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED, 5-0. 5. Consideration to call for a public hearing date for modifications to the EDA Business Subsidv Criteria. Koropchak recommended a public hearing for December13th at 4:00 PM, assuming Council approves modifications and designation of ED A as an LDO. MOTION BY COMMISSIONER PERRAULT TO CALL FOR A PUBLIC HEARING FOR THE MODIFICATION TO THE EDA BUSINESS SUBSIDY CRITERIA ON TUESDAY, DECEMBER 13th, 2005 AT 4:00 PM. MOTION SECONDED BY COMMISSIONER LAHR. MOTION CARRIED, 5- O. . 6. Consideration to ratify the Mortgage Subordination Agreement between the SBA. EDA and Tapper Holdings, LLC. 2 EDA Minutes 11/2912005 . Koropchak referred to the mortgage subordination agreement, stating that the EDA had previously discussed this item, which refers to the position ofthe EDA. The action required would ratify the EDA had decision, which was to allow the SBA to take position before the EDA. MOTION BY COMMISSIONER WOJCHOUSKI TO RATIFY THE MORTGAGE SUBORDINATION AGREEMENT BETWEEN THE SBA, EDA AND TAPPER HOLDINGS, LLC. MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 5-0. 7. Consideration of the Executive Director's Report. Koropchak noted that she had followed up with a letter to Bruce and Cindy Hammond regarding their loan and reminded them of their balloon payment deadline. They have until January 1, 2006 to make payment. . Koropchak reported that Demeules' 6-year term is up. Koropchak stated that the Mayor thought that perhaps they would open up all Committees for application. Another Council member indicated that they thought they were operating well. Demeules indicated that he would be willing to serve another term, if asked. 8. Other Business Wojchouski asked about utilities in the area of the interchange project, as some businesses had interruptions in service. Koropchak stated that they have noted electrical surges and other power outages, however no cables had been cut. Lahr reported that years ago they had looked at a feeder line in the area and he hadn't heard of any other problems until Koropchak had called. City Engineer Bruce Westby had indicated to Koropchak that there had been some other work near 39 east and west of project. Demeules stated that he thought the problem may have started after crews stopped dewatering for the sewer project. Lahr stated that the services are underground, but the feeder is overhead. If everyone is having problems, it is more likely a feeder problem. Lahr asked if they are long interruptions. Demeules stated that the interruptions are approximately 5 minutes. Lahr stated that he would look into the matter further. . Mayer stated that the Fiber Optics task force will be seeking RFPs from companies interested in installing and operating fiber optics in the community. Lahr asked if these companies install and manage the systems. Mayer replied that there is one that does both. 3 EDA Minutes 11/29/2005 . Koropchak reported that she had visited with the company who has a purchase agreement on the Clow Stamping building. Koropchak encouraged them to complete application information, as the EDA could be part of financing. This company wants to use all of the building and hopes to expand. Koropchak stated that she cannot bring the application forward at this time, as the bank board is reviewing their application and the EDA is subordinate to the lender. She did note that the company is publicly held and does not have a personal guarantee. If the SBA is involved, the president of the company has to give a personal guarantee. Koropchak stated that she doesn't know ifEDA would be involved with equipment or building purchase. The company does not do production, only engineering. They are projecting 38 new jobs with starting production, moving to a total of 52 new jobs. This location would be their headquarters. Koropchak advised that this application may be on the agenda on December 13th. 9. Adjournment MOTION BY COMMISSIONER HOGLUND TO ADJOURN AT 4:40 PM. MOTION SECONDED BY COMMISSIONER. LAHR. MOTION CARRIED 5- o. . ~tf~AdA~ Seer . 4