EDA Meeting Minutes - 04/13/2022MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 13, 2022 — 6:00 p.m.
Academy Room, Monticello Community Center
Members Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy
Hinz, 011ie Koropchak-White, Hali Sittig, Councilmember Jim Davidson and
Mayor Lloyd Hilgart
Staff Present: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Sarah
Rathlisberger and Hayden Stensgard
1. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order at
6:02 p.m.
2. Roll Call 6:00 p.m.
Mr. Johnson called the roll.
3. Consideration of Additional Agenda Items
None
4. Consent Agenda
a. Consideration of Approving Regular Meeting Minutes — February 9, 2022
b. Consideration of Approving Workshop Meeting Minutes — February 9, 2022
C. Consideration of Approving Regular Meeting Minutes - February 23, 2022
d. Consideration of Approving Payment of Bills
e. Consideration of Terminating Billboard Sign Leases with Regan Outdoor
Advertising and Lamar Sign Company — Outlot A, Country Club Manor
f. Consideration of Accepting the Block 52 TIF Blight -Substandard Property
Qualifications Inspection Report prepared by LHB, Inc.
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA. OLLIE KOROPCHAK-
WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
Regular Agenda
5. PUBLIC HEARING: EDA Land Sale — 11,263 square feet EDA owned land in Otter Creek
Business Park (OCBP) to M & B on Chelsea. LLC in the amount of S7,669.95
Executive Director Jim Thares provided an overview of the agenda item to the EDA and
the public. The sale of this small parcel will help with Suburban Manufacturing's plans to
expand their current facility located 10531 Dalton Avenue NE. Mr. Thares noted that the
conveyance of land was recommended as consistent with the Monticello 2040
Comprehensive Plan in March of 2022.
Mary Barger, Suburban Manufacturing, Inc., said the expansion will be on the west side
of the existing facility. The land sale will also allow the current stormwater pond larger
to handle future development in this portion of OCBP. President Steve Johnson opened
the public hearing portion of the agenda item.
OLLIE KOROPCHAK-WHITE MOVED TO CLOSE THE PUBLIC HEARING. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
6. Consideration of Adopting Resolution #2022-08 authorizing a Purchase Agreement for
sale of 11,263 square feet of EDA owned land in Otter Creek Business Park (OCBP),
shown in the attached Exhibit and the Otter Creek Crossing 7th Addition Plat
Illustration, between the EDA and M & B on Chelsea, LLC in the amount of $7,669.95
Mr. Thares provided an overview of the agenda item. This item coincides with Item 5 on
the agenda. The City Council recently approved the final plat of the reconfigured area in
OCBP to accommodate Suburban's expansion proposal. Mr. Thares noted the motion to
be made on this agenda item, if approved, should include language stating the final
purchase agreement is contingent upon a final agreement with the buyer's legal counsel
and the EDA attorney.
JIM DAVIDSON MOVED TO ADOPT EDA RESOLUTION NO. 2022-08, AUTHORIZING THE
EDA TO ENTER INTO A PURCHASE AGREEMENT WITH 'M & B ON CHELSEA, LLC IN THE
AMOUNT OF $7,669.95 RELATED TO THE CONVEYANCE OF LAND TOTALING 11,263
SQUARE FEET IN OTTER CREEK BUSINESS PARK (OCBP) AS DESCRIBED IN THE ATTACHED
EXHIBIT, CONTINGENT ON FINAL LANGUAGE WORKOUT BETWEEN THE BUYER AND EDA
ATTORNEYS. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 7-0.
7. Consideration of Adopting Resolution #2022-09 Authorizing Establishing Economic
Development Tax Increment Financing (TIF) District #1-44 in connection with a
proposed 45,000 square foot industrial warehouse facility expansion by Washburn
Computer Group/WashburnPOS
Mr. Thares provided an overview of the agenda item to the EDA and the public. The City
Council held a public hearing regarding this agenda item on April 11, 2022 and approved
the establishment of TIF District 1-44.
Mike Willard, Washburn Computer Group, provided an overview of what Washburn
does at their current facility and the need for an expansion. Washburn currently rents
space from multiple places in town, due to their current facility being at full capacity.
Tracy Hinz expressed support for this project and believed this is a great use of the
EDA's efforts in Monticello.
Tammy Omdahl, Northland Securities Inc., provided an overview of the TIF Plan for the
establishment of Economic Development TIF District 1-44. The length of the district is
set for 9 years, and the increment collected will be strictly on the expansion area.
TRACY HINZ MOVED TO ADOPT EDA RESOLUTION NO. 2022-09, ESTABLISHING
ECONOMIC DEVELOPMENT TIF DISTRICT #1-44 (WASHBURN COMPUTER GROUP
EXPANSION PROJECT) WITHIN THE CENTRAL MONTICELLO REDEVELOPMENT PROJECT
NO. 1; AND ADOPTION OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO.
HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
8. Consideration of Accepting a Tax Increment Financing (TIF) Application from Wiha
Tools, LLC and adopting Resolution #2022-10 requesting the City Council call for a
Public Hearing related to establishment of Economic Development TIF District #1-46 in
connection with Wiha Tools' proposed 70,000 square foot +/- production facility
expansion
Mr. Thares provided an overview of the agenda item to the EDA and the public. A site
for the proposed building has been identified along East 7t" Street in Monticello, east of
the Post Office location. The site has the capability to accommodate a 120,000 square
foot building. Wiha Tools has indicated that it plans to complete its phase 1 building in
the next 12 to 14 months and then add additional square footage through a phase 2
expansion at this site in the future.
Mr. Johnson asked if the intention was to build a new facility and move all operation out
of the old location. Eric Iverson, Wiha Tools, LLC., confirmed that is the plan moving
forward. They would like to sell their old facility.
Eric Iverson provided a summary overview of Wiha's Tools' operations and procedures
at their current facility as wells the future growth plans in Monticello.
OLLIE KOROPCHAK-WHITE MOVED TO ADOPT RESOLUTION NO. 2020-10 REQUESTING
THE CITY COUNCIL TO CALL FOR A PUBLIC HEARING RELATED TO THE ESTABLISHMENT
OF ECONOMIC DEVELOPMENT TIF DISTRICT #1-46 SUPPORTING WIHA TOOLS
PROPOSED DEVELOPMENT OF A NEW 60,000 TO 70,000 SQUARE FOOT
MANUFACTURING AND WAREHOUSE FACILITY. HALI SITTIG SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY, 7-0.
9. Consideration of authorizing entering into a financial planning agreement with NSI
related to TIF Financial Analysis and Plan preparation in the amount of $9,200
Mr. Thares provided an overview of the agenda item to the EDA and the public. The
financial analysis and plan preparation is related to the establishment of TIF District 1-46
for Wiha Tools' expansion proposal.
LLOYD HILGART MOVED TO APPROVE NSI FINANCIAL PLANNING AGREEMENT FOR
SERVICES RELATED TO THE CREATION OF AN ECONOMIC DEVELOPMENT TIF DISTRICT 1-
46. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
10. Consideration of authorizing a Contract for Hazardous Material Survey of substandard
and/or blighted buildings in Block 52 to WSB & Associates in the amount of $14,460.
Mr. Thares provided an overview of the agenda item to the EDA and the public. As
noted in the March 9, 2022 meeting, this is a routine step in the redevelopment process
for Block 52. City staff received two (2) proposals for the RFP that was released. WSB
submitted the lowest, qualified proposal.
OLLIE KOROPCHAK-WHITE MOVED TO AUTHORIZE A CONTRACT FOR HAZARDOUS
MATERIALS SURVEY OF SUBSTANDARD AND/OR BLIGHTED BUILDINGS ON BLOCK 52 TO
WSB & ASSOCIATES IN THE AMOUNT OF $14,460. JIM DAVIDSON SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
11. Consideration of authorizing a Contract for Structural Engineering Analysis of buildings
and demolition mitigation recommendations related to demolition of buildings -
structures in Block 52 to WSB & Associates in the amount of $24,500 and the
completion of a Phase I ESA by WSB & Associates at a negotiated price not to exceed
5 300
Mr. Thares provided an overview of the agenda item to the EDA and the public. The
proposal submitted for the RFP by WSB & Associates was the only proposal City staff
received. Staff noted that Phase I information has been completed for a portion of the
block in recent years. That information is to be discussed with WSB. The goal is to avoid
duplication and potentially reduce the price quote submitted by WSB for the Phase I
work.
Jon Morphew asked if the cost of this proposal includes all buildings to be included
under the Phase I work. Mr. Thares confirmed.
LLOYD HILGART MOVED TO AUTHORIZE A CONTRACT FOR STRUCTURAL ENGINEERING
ANALYSIS OF BUILDINGS AND DEMOLITION MITIGATION RECOMMENDATIONS RELATED
TO DEMOLITION OF BUILDINGS -STRUCTURES IN BLOCK 52 TO WSB & ASSOCIATES AT A
NEGOTIATED PRICE NOT TO EXCEED $5,300. HALI SITTIG SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY, 7-0.
12. Consideration of Update — MN -DEED Redevelopment Grant Approval - $517,500
Mr. Thares provided an overview of the agenda item to the EDA and the public. The
Minnesota Department of Employment and Economic Development awarded the EDA a
redevelopment grant related to the application for Block 52 approved by the EDA in
January of 2022. The funds included in the grant award will support the redevelopment
efforts on Block 52 in the Downtown area of Monticello and more specifically, the
demolition and hazardous materials removal work tasks. There was a total of 8
redevelopment projects in Minnesota awarded with funding during the Spring 2022
round.
13. Economic Development Director's Report
Mr. Thares provided an overview of the agenda item to the EDA and the public, which
included a review of the current prospect list that was included in the agenda.
14. Adjourn
TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO
ECONOMIC DEVLEOPMENT AUTHORITY. HALI SITTIG SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY, 7-0. MEETING ADJOURNED AT 7:16 P.M.
/2(P
Recorded By: Hayden Stensgard
Date Approved: May 11, 2022
ATTEST:
J4 Thark Executive Director