EDA Minutes 12-16-2002MINUTI+.S
MONTICELL,O E(ryONOMIC DEVIa.LOPMF,NT All"hHORITY
Monday, December 16, 2002 - 4:0(1 p.m.
C'iity Hall -Academy Room
Members Present: Chair Bill I)emeulcs, Vice Chair Bark Schwientck, Assist `I'rcasrrrer Ken
Maus, Clint Herbst, Roger Carlson, and Ron I loglund
Absent: Darrin Lahr
Staff: F,xccuiivc Director Ollie KOropchal< anal Recordct• Lori Kraerller
Cruests: Pam Campbell, DA"I' Chair-
Dcnnis Bondhus, 'I~.•l. Martin, lnc., dba Lake '1-'001
Call to Order.
Chair Demeulcs called the meeting to order at X1:05 p.m. and decl~:rred a quorum.
2. C'onsidcration t0 a rovc the October S 2002 EDA minutes.
A MO'l'IUN WAS MAT)I~, BY BARB SC'I IWIEN I'L~;K TO APPROVE 'I'I IE MINUTES
Oh THt•; OC'TOHER S, 2002 EDA MEE'l'INC. ROGER CARL;SON SI-;('ONDEI) THE
• MOTION. MO"PION CARRIED UNANIMOt1SLY.
3. C'0nsideration of addirl ~ 0r removitl 7 a<renda items.
Koropchal< h~u[ n0 additional items but suggested that item 6 he heard first or1 the agcrad~r.
as Mr. Bondhus was present.
4. ('onsideration t0 a~ rovc extendit~7 the non- erloriaaance date for C-M1~;I~' Loan No. 021
Ta per Inca .
Ollie Koropchalc, Executive L)irector, advised that the borrower was still waiting for a
piece 0fequipmerlt and therefi~re would like to hold off closing on the lotus Lrntil that
cquipmcr~tt carne in. "l~hcre was no fur-thcr discussion.
A MO'T'ION WAS MADE BY RON I IOGLC_JND TO APPROVE, l~,XTENDING THI~:
NON-PERk~'ORMANCE DATE H'OR GMF;k~~ LOAN NO. 021 k~OR TAPPt,;R'S iNC.
k~ROM DECEMBER 18, 2002 'I-o AT'IZIL 18, 200>. CL1N'1" HERBS'l' SECONDED
THE; MO"TION.
'T'here was further discussion on the possibility that the irrtcrest rate might charlgc for this
loan, and Koropchal< advised tl~a.t she did not feel that it would.
LDA Minutes - 12/1(/0?
'fIIERE BF?1NG NO FL1RTHh;K DISCLJSSIUN, THE MOTION CAKRIED
LINANIMUUSLY.
Col7tlntted - COnSlderailon to review and aw~ud a bid for draltin cosmetic ciesi ~n
sketches for rear facade in7.rovements on Bloch ;_5.
Koropchak hrielly reviewed the EDA's n7otior7 fron7 the n7ccting in October regarding
Block ~5. I'atn Campbell, DA'1' (.'.hair, advised that she 17ad been pltrsuing this with
Michelle Flcrtwig, stating that Ilcrtwig lelt sl7c did not have the construction background
but would he interested in preparing some cicsign sketches, CaIl7pbell stated she had lelt
several n7cssages fot• Hertwig butt had not heard back from 17er. Campbell stated sl7e had
not written a 101.117x1 redll('St i0I• pr01.7oSal a11d That It WaS 117ore WOI•d of 171011117, bLtt she had
received a positive response initially. Koropchal: advised that Susie Wojchouski,
Charnbel' Director, had dropped off Borne pictures she had received li-otn 1'arkcr
McDonald, although Koropcl7ak advised t.17ai they had not. authorized this and were only
autho--i7irlg getting bids. '-There was little discussion on t17e pictures.
Clint flcrbst noted that there had not becr7 interest from t17e bl.lilcling owl7ers up to this
point. 1~17e members also felt that having skctcl7es for t17e building owners to look at.
would help. It was also noted that. last ycat• was not a good year to be investing, as well
as tl7e timing with. the County Road 75 cot7struction. They also felt that maybe once
some of those things are con7pleted, incluc:lil7g the new restaurant at the lorn7cr Amoco
site, there might be renewed interest.
Barb Schwicntek advised that she is still not opposed to spending dollars to obtail7
proposals that they can show the building owners. Ron I Ioglul7d asked if they wanted. to
wait cu7til the block across the street was started to see if this would get the owners
interested, but Schwiet7tek stated she still tivat7tecl drawir)gs to have on hal7d. They also
noted that previous work oI7 the block across the street did not Iacilitate aI7y 177o11Vat10I7 at
that tin7c. "they also noted that I77aybe they should wait until Co. Rd. 75 is con7plete.
Campbell stated it would be beneficial if the proposals could be stored until a future date,
as well as h~:lving this information put on disc to distribute to the building owners for
them to t•eview.
Koropchal< stated. that they did receive a proposal. from Gritt177at7 al7d Campbell added
that she hacl col7lidcnce in C~I-itttnan since 17c had been involved in the previous work with
the dowr)town revitalization plan.
A MOTION WAS MAI_)E BY BARB SCIIWIL,NTEK AWARDINC~'1'F1E BID "1'O
I'KL;PARF, COSMF,'I'IC DESIGN SKF.TCI IL;S AND COST ESTIMA~L~ES FOR 'L'HE
REAR H'ACADI~: OF I3iJILl)INGS ON .BLOCK ~5 "1'O NORTI (WEST ASSOCIATF,17
CONS[JLTAN'I~S AT A COST NO l"I'O EXCh;1=.D $ x,000.00. GLINT I It~:KL3ST
SECONDED'I'IiE MO'I'IUN. MOTION CAIZKIED I1NANIMOIJSLY.
Koropch~:lk advised that they could not get casement inforn7atiol7 from Dennis Taylor as
~Dn Min(Ites- I?il~io?
. he does not do title work. She added that perhaps .fire Agosio, who is an attorney as well
as a btril(.lirlg owner, could check his abstract. and sec if there are easements recorded.
They advised to tall: to Al l.,och Ur" BC3Cl I,ar5011, also as building owners. Koropchak
stated she would male some calls. Ilcrbst felt that at some point the hack side of these
buildings could become the tllain entrances.
f). Consideration of status r"e ort of GMF,F loan No. Ol4 '1', ,l. Mar"tin),
Koropchal: Updated the 111erIlber"s O11 tl1C StalLls Of the load and stated she had spoked to
Carl Liondllus several times regarding the repayrl)cnt of this loan.
Dcr)r,is Bonclhus addressed the EDA members and indicated it would be difficult to rllake
this loan payment and that they were Ilavirlg trouble mrtkirlg several lease payrncnis ~:rs
well. Alter the debt is retired, he felt they would have approximately $10,00(.) left. He
also stated that ol~thc two leases, the largest is $11,000. Koropchak asked Bondhus to
advise what he would like to propose to the I~ D~1 as a cotulier-offer and he indicated they
could possibly pay $].8,000 over three years at an interest t•ate of 6°/~. l',1•rC Bondhus had
previously advised Koropchak they are still collecting about 80% on receivables.
Kor-opchal. added that she had Icft a message to the City's attortey but hacl not yet heard
back li'om him, She stated they have a recorded l.1(ryC, as well as personal guarantees.
Koropchak advised that she was looking into the cost of pursuing the liulds as the 1~D~1
had previously a(.tthori~cd. Herbst asked t}le EI)A rn.embers if they were familiar with the
process and Ken Maus added that this would be another matter to take into consideration
when ~,pprovitlg the loans as the (-'ity is in third place as far as recovering funds.
Koropchal. added that the building had been sold, and the funds went to the hank as well
cgs to the HRA. Herbst noted this was a good, yet unfortunate experience for tllc IDA,
stating the EDA is taking a chance when trying to help out a business in sown. I)emeules
advised that the City could enforce a bankruptcy but there was still no guarantee that the
City would get any money. Maus stated. he was inclined to sec how much, if anything,
can be 1"ccovered and try to work with them on a ~ yeal" payback, ~:rlso adding that the
l';L)A has the potC'fltlal O1 gOlllg tllt•OUgll 1llIS again iI`thcy cannot I`ulfill the $18,000
obligation either. 13ondhus stated that these would be personal dollars from the ownet's,
not from the business. He did also state thct•e is a potClltt~ll IOr SOIIIC I11ore lllUney It sorlle
of~thcir• personal guarantees come through, but stated that some of their receivables are
questionable. Marls stated perhaps they want to wait for a few months to see wlaat
position they are in at that tinge. "1'hcy asked 13ondhus if i months would be ezlortgh tinge
and he felt chat would he sufficient, statilag that if not in 3 months, they probably
woulcin•t collect any of their receivables, It was also noted that possibly the 1~:l)A would
get more information from their attorney during that. tune as well.
• f1 MO I IUN WAS MADE I3Y KEN MAUS TO TAHL_,L; ~1NY AC,°fIUN ON
RECUVLRY Oh' I~LJNDS h'OR GMEh' I,O~1.N NO. 014 P~R'T'I IKF~,I: MON"l'IiS AND
REVII~:W AT "1'I IAT TIME. 13nRB S(:I IWIENTEK S>JC:ONDI~;I) "I"1-IE MOrI"1ON.
F.nAMinutes- 12/1(/02
MO"I"ION CARRIED i1NANLMOUSLY.
"There was fiu-ther discussion asking Koropchak to research atad see i1-there was anything
that the F,I)A might have missed on this, any red slags. 1<oropchal< stated there had been
several changes Ii-on1 tllc beginning and also reminded thcnl ol'the bol-rowcr's continual
late payments and the need.for- electronic payments. I Icrbst stated he hoped that they
would not be too skeptical of fiittttrc applicants.
7. Consideration. to discuss fora r-oval autlaorizin _J the re laccment of the I ~ic uor I' ands.
Koropchak reminded the EDA of their previous motion to authorize repayment. of the
Lic.luor }~uruis a.nd their request that this be brought back at the end of-the yeat• for
discussion. Demeulcs asked if the k;DA knew Tor- certain that t17e payment by the EDA
from the Liquor Ftulds were indeed used for rcduetior] in tax levies and Herbst ac~lvisecl
that they had.
Koropchal: advised that the repayment an7ount would he approxinl~.rtely $79,000. She
~.Idded that the balance wot.lld he a little gre~.tter-, unless the money for the downtown
revitali~.ation fund was expendccl. Koropchak also advised that 'T'win City Die Castings
had not created the required number of jobs ~.rt this time. hl.erbst questioned il'the EI)A
felt that tllcy could tell the City were the doll~:u-s ~:u-e to go to and Koropchak advised that
this was in the policy adopted by the City ('outlcil. I-ler-bst stated that. he felt after the
huciget is Iixccl, the money should be given. lIe also questioned. if there was any reason
to act on this now and it was decided to hold oa'C until the annual rlleetrng 111 Apt-tl. They
could also direct the City Cot.ulcil to use the money for otllcr iterlls. Koropchak stated the
LDA bylaws would then need to he rnodiiied.
A MOTION WAS MADE BY OLIN"I" I IT;RBS l' (:)h' NO INTERES~1' "l~0 AIJTHORILh:
REPAYMi~;N:h OF "C'1 Il: LIQLJOR FUNDS IN 2002. RON HOGLi1ND SI~.C:'ONDED
~l'HE MOTION. MO"PION CARRIb;U IINANIMO[1SLY.
Consideration of 200; EDA nlcnlhershi a ointnletlts.
Koropchak advised that Ken Maus's term would be up in 2002 and that the City Council
wot.rld appoint a new council member to replace Clint Herbst. She asked Maus if he was
interested in serving another 6 year term. Maus stated that he will be t1-aveling more arlcl
wOLlld nOt t)C available to attend all meetings. He Felt they play want. to look at other
c~tndiclates. Ron Hoglttnd concurred, stating he anticipated more travel as well. Clint
Herbst stated no interest io serve on the EDA at dais time.
Koropchak added that she felt a possible c~lndidatc would be Heidi I'cpcr who lives in
Monticello arld is now working for Short. Elliot, and 1-Iendrickson, had mentioned a
• previous interest in getting more involved in the City. Maus also added perhaps asking
some ol'the candidates that ran for• City Council, as well as Roger Iielsaas. Roger
Carlson st~.rteci that lae would be staying on as (.'ouncil representative.
4
~,t~n Minl-tcs- Izii~io?
7 he consensus was to have Koropchak do so-1]e research. Maus stated he would
rccollsider if they had no interested persons.
9. h:xecuiive 1)irect~r's Itcport.
Koropchal. advised of tllc HR11 pI"o.jects downtown, specifically regarding Steve
,Iol]]ltiof]'S pI'OpOSaI. Slle holed tllat s17e had 1"eC('IVCd 1]1S pI'~111Tllnary agreement and
$5,000 deposit that day as well. Slle also advised of Pat Sawatzkc's proposal.
Koropchak added that she had spoken io Mr. I<jellberg I"egarding tats interest in fixing up
his building as well. She did not see it to be cconolllical to acquire the Springho,'g
hl_111dlllgclt tl]IS tlllle. Slle IS havlll~ SteVC Cil'1ttIlli111 1"eSearch parking requirements as
well.
Koropchak stated that .loh-lson's ln~oposal was foI" office alld retail, as well as
I.lndergrotuld pal"king.
The EDA members then thallked Clint I IeI'bst ~.uxl Ken Matls for their time serving on the
I.~, [gyn.
1.0. Othen Business.
"I'hcre was ru] other bllsincss.
ll. A(lio~~rn.
~.~Ili:lll' vell]Ctlles %l.dl(1L.1rnCCl the llleetlllg at 5: )0 p.ll].
Recor~dcr
5