EDA Minutes 08-21-2007MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, August 21, 2007 - 4:00 p.m.
City Hall _ Academy Room
MEMBERS PRESENT: Chair Bill Demeules, Vice Chair Barb Schwientek, Tom Perrault, and
Ron Hoglund.
MEMBER ABSENT: Wayne Mayer
STAFF PRESENT: Executive Director Ollie Koropchak and Recorder Angela Schumann.
Call to Order.
Chairman Demeules called the meeting to order at 4:00 PM.
2. Roll Call.
Chairman Demeules declared Commissioners Schwientek, Perrault, Hoglund, and
himself to be present and declared a quorum.
3. Consideration to a rove the A ri124 2007 and the Au st 8a' 2007 EDA minutes.
MOTION BY COMMISSIONER PERRAULT TO APPROVE THE EDA MINUTES OF
APRIL 24, 2007.
MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED, 4-0.
MOTION BY COMMISSIONER SCHWIENTEK TO APPROVE THE EDA MINUTES
OF AUGUST 8~', 2007.
MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED, 4-0.
4. Consideration of addin or rernovin a enda items.
After discussion on the ability of all Commissioners to stay for discussion on a pending
merger of the EDA and HRA, Commissioner Perrault added as item 9b the discussion
and recommendation far the consolidation of the EDA and HRA.
Commissioner Perrault requested clarification an whether new Finance Director Tom
Kelly would be appointed to serve as Treasurer.
Koropchak responded that with the potential merger of the EDA and HRA, new officer
appointments would be established. Perrault asked if Kelly would be appointed Treasurer
in the interim. Koropchak stated that could be an acceptable solution in the interim, but
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no official action is required at this time.
Commissioner Perrault also requested information on interest rates in relationship to
disbursement payments on loans.
Perrault stated that the terms of GMEF Loan No. 026 to Washburn Computer Group were
approved on August 8`~. He questioned if interest rates changed in the period between the
authorization and disbursement, which is up to 180 days, whether the interest rate in the
loan agreement also adjusted. Koropchak responded that the interest rate remains at the
original rate approved by the EDA, although that wouldn't prevent an applicant from
requesting an adjustment if the rates went down. Koropchak reported that the applicants
sign a commitment form, which includes loan amount, terms and conditions.
5. Bills and Communications.
NONE.
6. Executive Directors Report.
NONE.
7. Committee Reports.
NONE.
8. Unfinished Business.
NONE.
9. New Business.
9A. Public Hearin -Consideration to a rove the Business Subsid A Bement for
GMEF Loan No. 026 to Washburn Computer GrouU.
Chairman Demeules opened the public hearing regazding the approval of the Business
Subsidy Agreement for GMEF Loan No. 026.
Hearing no public comment, Chairman Demeules closed the public hearing.
Koropchak noted that the EDA had approved the Loan No. 026 at the last meeting. The
Business Subsidy Agreement had been included in the Commissioner's packets for
reference. Koropchak stated that the benefit date is January of 2007. Requirements of
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the loan include total job creation of 53 jobs at the specified wage levels. Koropchak
stated that the applicant is required to submit reports to satisfy the business subsidy
requirements. The loan approved by the EDA will be ratified by the Council on the 27~`
of August.
Schwientek requested that the EDA be notified if Washburn does execute the loan, as
their expansion plans as of this meeting are still contingent on client needs.
MOTION BY COMMISSIONER SCHWIENTEK TO AFPROVE THE BUSINESS
SUBSIDY AGREEMENT FOR GMEF LOAN NO. 026 TO WASHBURN COMFUTER
GROUP.
MOTION SECONDED BY COMMISSIONER PERRAULT. MOTION CARRIED, 4-0.
9B. Consideration to discuss and make a recommendation to the Cit Council relative
to the consolidation of the HRA and EDA.
Council member and EDA commissioner Tom Perrault requested the HRA/EDA merger
task force agenda be added to the regular meeting of the EDA in lieu of the absence of
Council member Mayer and for input from the EDA commissioners. Fallowing
Administrator O'Neill's introduction and background, Koropchak presented an agenda
identifying the items to be addressed for recommendation to the Council. The
commissioners agreed it was time to consolidate the EDA and HRA given the number of
vacancies on the commissions and to integrate City Council members into the cit}~s
economic development process.
By a consensus of those in attendance: Tam Perrault, Ran Hoglund, Barb Schwientek,
and Bill Demeules, the following recommendations were made.
1. Recommended the HRA powers and assets be transferred to the EDA.
2. Recommended the EDA consist of seven commissioners.
3. Recommended the EDA commissioners be made up of two council members and five
non-council members.
4. Recommended at least three of the non-council members shall be residents of the City
of Monticello and not greater than two non-council members maybe non-residents of the
City of Monticello but must operate a business and own property in the City of
Monticello.
(Legal advice to determine if this recommendation to be written into the
ordinance/bylaws or a permanent policy.)
5. Recommended the EDA be granted the power to authorize the expenditure of tax
increment and approve Redevelopment Contracts and Purchase and Redevelopment
Contracts.
6. Recommended placing a minimum cash-balance cap of $1 million plus inflation
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(index) on the EDA funds to insure the preservation of GMEF revolving loan program.
(In order to maintain flexibility far local funding options and given the unknown future
and eligibility of TIF, this topic needs further discussion for consistency with the Comp
Plan Update and economic development goals. Seek legal advice whether this is an
ordinance/bylaw or guideline/policy item.)
Lastly, the members were given a brief outline of the steps necessary to formalize the
consolidation of the HRA/EDA.
10. AdLuxnment.
MOTION BY COMMISSIONER PERRAULT TO ADJOURN THE EDA MEETING.
MOTION SECONDED BY COMMISSIONER HOGLUND AND WITH NO FURTHER
BUSINESS, THE MEETING ADJOURNED AT 5:10 P.M.
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