EDA Minutes 04-23-2002 (Special Meeting)
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ANNUAL MI<~F:TING MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, April 23, 2002 - 4:00 p.m.
City Hall - Academy Room
Mell1bers Present:
Chair Hill Dell1eules, Vice Chair Barb Schwicntek" Roger Carlson, Ron
Iloglund and Darrin LahI'.
Assist Treasurer Ken Maus and Clint Hcrbst
Treasurer Rick Wolfsteller, Exccutive Director Ollie Koropchak, Recordcr
Lori Kraemer
Absent:
Stall:
1. Call to Order.
Chair Bill Demeules called the meeting to order at 4 pm.
2. Consideration to approve the November 13. 2001 BDA minutes.
A MOTION WAS MADE BY BARB SClIWIENcrEK TO APPROVE THE MINUTES
OF TilE NOVEMBER 13,2001 EDA MEETING. RON IIOGLUND SECONDED THE
MOTION. Motion carried unanimously.
3. Consideration of adding or removing agenda items. None
4.
Considcration to revicw for amendment the Business Subsidy Criteria or the EDA.
Ollie Koropchak, Executive Director, provided the report noting that this was a
housekeeping item. According to the Business Subsidy Critcria: "At a minimum, the
EDA shall review the Fund Guidelines on an annual basis. No changes to the GMEF
guidelines shall be instituted without prior approval or the City Counci I." Criteria was
attached for review.
A MUfl0N WAS MADE BY BARn SCIIWIENTEK TO ACCEPT THE ClJRRENT
BUSINESS SUBSIDY CRITERIA OF THE EDA. ROGER CARLSON SECONDED
THE MOTION. Motion carried unaninlOusly.
5. Consideration to clcct 2002 FDA olTicers.
Koropchak advised that in order to comply with EDA Ordinance Amendment No. 172,
Section 2-3-2: Thc Authority shall annually elect a president, vice president, treasurer,
assistant trcasurer, and secretary.
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FDA Minutes - 04/23/02
Koropchak also provided the 2002 EDA memberships and 6-year terms:
Clint Herbst. Council
Ken Maus
Darrin Lahr
Barb Schwientek
Bill Demeules
Roger Carlson, Council
Ron Hoglund
12-2002
12-2002
12-2003
12-2004
12~2005
12~2006
12~2007
A MOTION WAS MADE BY RON HOGLUND TO NOMINATE AND ELECT TilE
FOLLOWING: CIIAIR, BILL DEMEULES; VICE CIIAIR, BARB SCHWIENTEK;
TREASURER, RICK WOLFSTELLER; ASSISTANT TREASURER, KEN MAUS;
AND SECRE'fAR Y, OLLIE KOROPCHAK AS 2002 EDA OFFICERS. BARB
SCHWIENTEK SECONDED THI'; MOTION. Motion carried unanimously.
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Consideration to review and accept the Year-End EDA Financial Statements, Activity
Report, and 2002 Proposed Budget.
Koropchak provided the statement of revenues, expenditures, and changes in fund
balance for the year ended December 31, 2001. In order to company with EDA
Ordinance Amendment No. 172, Section 2-3-6: The Authority shall prepare an annual
budget projecting anticipated expenses and sources of revenue. And B: The Authority
shall prepare an annual report describing its activities and providing an accurate statement
of its financial condition. Said report shall be submitted to the City Council in May of
each year.
Provided were the year-end statements, proposed budget, and activity report. Wolfsteller
advised that possibly the EDA should show the Liquor re-payment as a liability in the
balance sheet, Schwientek stated to footnote this. Demeules stated it really is not a
liahility.
A MOTION WAS MADE BY RON lIOGLUND TO ACCEPT THE YEAR-END
FINANCIAL STATEMENT AND REPOR'f FOR SUBMISSION TO TIlE CITY
COUNCIL ON MA Y 13,2002, AND TO ADD A FOOTNOTE REGARDING TilE
LIQUOR FUND BALANCE. DARRIN LAHR SECONDED THE MOTION. Motion
carried unanimously.
7.
Consideration to review year-end balances of the GMEF, DMRF, UDAG, and ERG
Funds.
Koropchak reported that all GMEF loan payback payments were current as accounted for
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EDA Minutes - 04/23/02
in the 200 I year-end statements, and provided the status on each loan and also additional
funds available for future by the FDA.
Koropchak stated the total dollars available to the EDA f()l' GMEF and DMRF programs
less the commitments is $779.109.58 as of April 23, 2002. Koropchak also provided a
breakdown of the expenditures for the downtown revitali7.ation fund. Koropchak was
advised to prepare and send a letter to Hammond regarding his loan. Wolfsteller
complimented Koropchak for her work on these reports.
8A. Consideration to discuss for approval the continued funding of the DMRF and to review
the DMRF Guidelines f(Jr possible amendments.
Koropchak advised that on an annual basis, the EDA compares the over-all dollars
available to assist industry and downtown businesses with the goals or objectives of the
programs. She also advised the DMRF balance is about $140,500 after deducting
committed dollars. The DMRF program began in 1997 and in Live years the EDA
disbursed money for 9 improvement projects.
Members were reminded that EDA money, with the exception of Liquor Fund balances,
are restricted to industries and job creations. Schwientek had asked if there was anything
happening in the downtown area at this tinle and Koropchak advised that Block 35 is
waiting until after the Broadway reconstruction to begin any of their work. The status of
snow removal behind the buildings on Block 35 was hard to compare since there was not
a lot of snow this winter, although it was stated that the Travel building was flooded out
due to snow storage on the empty lot next to them. Schwientek also stated she would not
like to provide any more dollars for Block 52 with the buildings being in the shape they
are 111.
The EDA will probably not start the proposed project behind Block 35 until sometime in
2003.
A MOfION WAS MADE BY BARB SCHWIENTEK TO DISCONTINUE THE
DOWNTOWN REVITALIZATION PROGRAM AND RESERVE DOLLARS FOR
BLOCK 35 PROJECT, PCyrr':NTIALL Y IN 2003. RON IIOGLUND SECONDED TIlE
MOTION. Motion carried unanimously.
There was further discussion by Schwientek who stated that she is not opposed to
repaYll1ent of the liquor fund but the [':DA does not know iJ'there will be an industrial
project so she requested to wait on this until at least November 2002. Wolfsteller stated
that it would not happen anyway until the end of the year, and stated that even if the EDA
has a change, they would just need to notify him. Schwientck then asked to add this to
the next agenda item and to table the item at this time.
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EDA Minutes - 04/23/02
Consideration to discuss fl.)!' approval authorizing tbe replacelllent of the LiclUor Funds.
A MOTION WAS MADE BY BARB SCIIWIENTEK TO 'fABLE ACTION ON
REPA YMENT or~' TilE LIQUOR FUNDS. ROGER CARLSON SECONDED TilE
MOTION. Motion carried unanimously.
9. Executive Director's Report.
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Koropchak provided a letter from Don Hunter regarding his requested for the
amount due and tbe remaining principal balance for GMEF Loan No. 013 as of
February 1, 2002.
Also advised ofthe MCCF letter she received in February. The EDA had
questions on this type of funding and Koropchak stated she is not familiar with
this program and would need to find more information.
Money back from Integrated Recycling from tbe loan closing as well as a check
from Standard Iron
Riverwalk Project by Hans Hagen - City Council approved entering into contract,
engineering issue needs to be resolved.
Landmark Square - Cleaning up the site. Anticipated closing will be next week.
Flutb requested a sign-off from Minnesota Pollution Control. Building plans are
Ill.
Marketing Group - CTolf outing on 5/16/02 at Silver Springs.
Industrial Banquet bosted by Cbamber, 6/11/02 at Monte Club - Norm Coleman is
guest speaker.
II RA is looking at a scattered housing project on 61h Street and Minnesota Street -
working with CMHP who has one house left to acquire. Received go ahead to
start TIF District. Sunny Fresh donating money to fill gap. II units - affordable
housing.
UMC - The IDe/lIRA has visited - they requested an RFP wbich Koropchak sent
out. She provided a list of existing jobs and new jobs to be created/wage levels.
Also infl.) from Production Stamping Co. as the same. Hoglund stated the
building they would like to build is very nice and this is a great company. One
reason they would like to move is because they do not think they can get
sewer/water extended to their current building in Corcoran for another 2 years.
Koropchak advised that she spoke with the builder and there are some concerns
regarding sites, first choice is Pfeffer, 2'1(' is city's Remmele site, ]'" is Pfeffer's
site off School Blvd and Co Rd 117. They anticipate a decision next week.
Kinghorn felt they would make a commitment and need to start by mid summer -
Koropchak offered $200,000 of EDA money, to UMC and $150,000 to
Production Stamping.
Public Hearing for comp plan is scheduled for 5/7/02.
Hoglund asked if we are getting any closer to the City owning industrial land and
Wol["teller stated no. It was noted that Big Lake is offering land for $1.
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EDA Minutes - 04/23/02
Othcr Business.
There was no other business.
I ] . Adjournment.
A MOTION WAS MADE BY DARRIN LAHR TO ADJOURN TIlE MEETING AT
5 PM. RON HOClLUND SECONDED THE MOTION. Motion carried unanimously.
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