Loading...
EDA Minutes 04-22-2003 (Special Meeting) . . . ANNtJAL MEETING MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, April 22, 2003 - 4:00 p.m. City Hall - Academy Room Chair Bill Demeulcs, Viee Chair Barb Schwientek, Roger Carlson, Robbie Smith, Ron Hoglund, and Darrin Lahr. Clint Herbst Treasurer Rick Wolfsteller, Executive Director Ollie Koropchak, Recorder Lori Kraemer Members Present: Absent: Staff: 1. Call to Order. Chair Demeules called the meeting to order at 4:00 p.m. and declared a quorum. 2. Consideration to approve the January 29, 2003, and April 2, 2003, EDA minutes. " -) . A MOTION WAS MADE BY RON I IOGIJJND TO APPROVE 'I'HE JANUARY 29, 2003 EDA MINUTES. DARRIN LAHR SECONDED THE MOTION. MOTION CARRIED WITH ROBBIE SMITH ABSTAINING. A MOTION WAS MADE BY DARRIN LAHR TO APPROVE THE APRIL 2, 2003 EDA MINUTES. BARB SCHWIENTEK SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration of adding or removing agenda items. None 4. Consideration to elect 2003 EDA oiIicers. 5. There was a brief discussion on election of oHicers with Ron Hoglund stating his willingness to fill the Assistant Treasurer position which was previously held by Ken Maus before he resigned. Chair Demeules and Barb Schwientek also stated their willingness to continue as Chair and Vice Chair, respectively. It was the consensus of the members to continue Riek Wolfsteller as Treasurer and Ollie Koropchak as Secretary. A MOTION WAS MADE BY ROGER CARLSON TO APPROVE THE ELECTION OF RON HOGLUND AS ASSISTANT TREASURER AND BIll, DEMEULES, BARB SClIWIENTEK, RICK WOLFSTELLER, AND OLLIE KOROPCHAK TO CONTINUE IN THEIR CURRENT POSITIONS. DARRIN LAlIR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration to review and accept the year-end EDA Financial Statements, Activity Report, and proposed 2003 Budget. Koropchak provided financial statements for the members to review. She further explained the investment interest income listed in the financial report provided by WolfstelIer and that the numbers were actually for the year 2001. They also discussed LOA Minutes - 04/22/03 . expenditures and Koropchak explained the $4200.00 listed in the report was payment for a grant done for UMC hy Lenny Kirscht. She also explained the remaining halances for TJ Martin, and advised the amount paid to the Liquor Store in 2001 as requested hy the liRA for replacement of the Liquor Funds. The members discussed the 2003 cash now projections noting receipts and expenditures with Koropchak advising of an expected cash balance in December 01'2003. She then provided a summary of the activity report and overview ofloans in 2002, as well as the accumulative total investment interest earnings in the amount of $216, 189.39. A MOTION WAS MADE BY BARB SCHWIENTEK TO ACCEPT THE YEAR-END fiNANCIAL STATEMENTS AND REPORT FOR SUBMISSION TO THE CITY COUNCIL ON MAY 12,2003. RON HOGLUND SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration to review vear~end halances of the GMEf, DMRF, UDAG, and ERG Funds. . Koropchak provided a brief review of year-end balances in the GMEF, DMRF, UDAG, and ERG funds., and stated that although they discontinued the downtown revitalization loan, she still kept track of the balance in the funds that could be used if the EDA chose to renovate Block 35. She then advised that she has to keep track of UDAG information such as who received pay-backs, etc. Koropchak explained the Minnesota Investment Fund which was for TCDC, adding that they have not met their job projections and she was advised not to spend the paybacks. She stated they do have a grace period and there was some discussion that perhaps TCDC should put together an action plan. She then explained the Small Cities Economic Recovery Grant, as well as total revenues and expenditures. UDAG was completely closed out, but they do continue to recycle the money. Central Minnesota Initiative Fund has a balance of $1134.00 as well. The EDA cash balance on 4/22/03 was $696,970.0 I. Koropchak stated they have not changed their bylaws in regard to loans. In the guidelines it states 50% on the GMEF cash balance as the suggested loan amount. Typically the loans were $100,000. No action was necessary. 7. Consideration to discuss for approval authorizing the replacement of the Li(]uor Funds. Koropchak asked the FDA memhers to discuss whether to continue replacement of the original Liquor funds, adding that they should keep a certain amount of nonrestrictive funds on hand. The EDA had paid $77,000 back to the Liquor Store and it has always been the intent of the EDA to pay the Liquor Fund back and hecome self sufficient. It was noted any payable would be effective for tax levy 2004. . There was discussion on whether to keep the money il1f any future loans or to pay it hack. The commissioners felt if found necessary in the future, the EDA could go hack to the City il1f the monies. 2 EDA Minutes - 04/22/03 . A MOTION WAS MADE BY ROBBIE SMITH TO AUTHORIZE A 2003 REPAYMENT OF THE LIQUOR FUNDS IN THE AMOUNT OF $70,000 FOR USE SOLELY TO REDUCE TAX LEVIES FOR BONDED INDEBTEDNESS OF THE CITY FOR TIlE YEAR 2004. BARB SCI IWIENTEK SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 8. Consideration to review for amendment the Business Subsidy Criteria orthe EDA. Koropchak advised that this is an annual housekeeping item and did not have any recommendations for any amendments. There was no further discussion. A MOTION WAS MADE BY RON HOGLUND TO ACCEPT THE CURRENT BUSINESS SUBSIDY CRITERIA OF THE EDA. ROGER CARLSON SECONDED THI": MOTION. MOTION CARRIED UNANIMOUSLY. 9. Consideration to approve execution ofa Satist~lction of Mort rW!2:e for GMEF No. 018- IRT!. Koropchak advised that Integrated Recycling, after the EDA on April 2 made a motion to subordinate the loan to the new lender, called and stated they have decided to pay off the FDA loan. This will be completed after receiving full payment of the principal balance. Anticipated May 1, 2003. There was no rurther discussion. . A MOTION WAS MADE BY DARRIN LAJ-lR TO APPROVE THE EXECUTION OF A SATISfACTION OF MORTGAGE FOR GMEF NO. 018 (IRTI) SUBJECT TO REPAYMENT IN FULL OF THE REMAINING PRINCIPAL BALANCE, $69,377.01, WITH DOCUMENT PREPARATION AT THE COST OF THE BORROWER. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 10. Continued - Consideration to review cosmetic design sketches and cost estimates for rear facade improvements for mock 35. This item was tabled until sketches and cost estimates were received. 11. Continued - Consideration of a request by City Council for commissions to review City's Vision & Governing Policies for input and to develop a list of goals. . Demeules asked if the EDA was to review and make recommendations for any changes in the Vision Statement, and Koropchak stated only if there was input, otherwise the EDA is to prepare goals only. They discussed that they had previously had the goal or the revolving loan fund for Block 35. Koropchak stated that this was delayed due to Broadway reconstruction last summer and now construction will begin on the south side of Broadway. The parking lot reconstruction is in the city's budget, but they questioned starting anything on the parking lot at the same time that the streets are being repaired. It 3 . EDA Minutes - 04/22/03 was noted that Al Loch had asked if it was the EDA's intent to continue with the parking lot reconstruction, but Wolfsteller stated they would like to wait with the parking lot until the alley work is completed. Koropchak advised of an owner on Broadway that was interested in building on a vacant lot on Block 35, but she advised that TIF did not qualify, the single lot has no improvements. She advised that staff had discussed having this owner look at something on Walnut Street, but that the City was not in favor of that due to increased density and the need to keep the parking. Demeules asked if there were surrounding communities that were doing anything unique for attracting business and Koropchak advised that it is slow all over, although Big I,ake is buying additional land. Koropchak added that BUmllo has an industrial park and their revenues came from purchasing electricity from NSP and selling back to buyers. She advised that John Chadwick was proceeding with his project which would provide land options. Barb Schwientek wished to continue providing incentives to attract businesses to Monticello, specifically industrial land. She also added that the EDA should hlcilitate, or provide incentives, for Block 35. The EDA members were all in agreement. 12. Executi ve Dj rector's Report. . 13. . . Koropchak provided hcr report and notcd that Production Stamping had appl ied f()r a bui Iding pcrmit and planni ng to move in at the end of the month. She advised of a boat manufacturer from Maple Lake that had been looking at Monticello, as wcll as a manufacturer from Silvcr Creek looking to scll his property and rebuild. Koropchak asked thc EDA if it was their assumption that they would get ncw pcrsonal guarantecs from TJ Martin and Dcmeu\cs felt that they would want to. She advised it was the attorney's thought that the EDA would want to keep the same personal guarantee. Bill askcd if thcy did not comply by June P\ what were thc options, other than bankruptcy. He thcn adviscd that the EDA could go after US Bank as the EDA took first position, but Koropchak advised that First Bank of Elk River had the equipment loan and it was stated that the EDA move up to first now. They did ask how much this would cost to proceed. Koropchak stated she would keep in touch with thcm. Rcgarding the TIF bill, Koropchak advised that she had been in touch with Mayor Thiclen to work with Ourada and see what position he was taking. She has not heard back yet. Anderson has "walked away", not supporting or opposing. According to John Choi, the bill could still go through. Schwientek advised that Bruce Andcrson had talked to her on another issue and that he advised her he stays out oflocal issues but that he actually was in support of the bill. . . Other Business. None 4 . . . EDA Minutes - 04/22/03 14. Adjournment. A MOTION WAS MADE BY BARB SCHWIENTEK TO ADJOURN TI-IE MEETING AT 5:05 P.M. RON HOGLUND SECONDED THE MOTION. MOTION CARRIED. ~ 5