EDA Minutes 05-27-2003MINUTES
EDA Minutes - 0/27/03
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, N1ay 27, 2003 - x:00 P.m.
City Hall -Boom Island Room
Members Present: Chair Bill Demeules. Vice Chair Barb Schwientek, Roger Carlson, Robbie
Smith. Clint Herbst, and Darrin Lahr.
Absent: Assistant Treasurer Ron Hoglund and Treasurer Rick Wolfsteller
Staff Present: Executive Director Ollie Koropchak and Recorder Lori Kraemer.
Call to Order.
Chair Demeules called the meeting to order at -1:10 p.m., noting that Executive Director
Koropchak ~yould be arriving shortly.
2. Consideration to approve the April 2?. ?003. EDA minutes.
A MOTION WAS MADE BY BARB SCHWIENTEK TO APPROVE THE M[NUTES
OF THE APRIL 22. 2003 ANNUAL MEETING. ROGER CARLSON SECONDED
THE MOTION. MOTION CARRIED WITH CUNT HERBST ABS"rAINING.
3. Consideration of adding or remoyin« a~?enda items. None
=1. Continued -Consideration to review cost estimates for rear cosmetic facade
improvements to Block 3~ and to determine next step
After revie~ying the information submitted by Mike Cvr regarding estimates for facade
improvements, there ~tias discussion on the costs and what were included in the estimates.
They discussed possibly taking the common area and breaking it out to see the costs per
building. as well as possibly taking the full cost and dividing it by the number of
properties. ~1~hey turther discussed who they felt might be ~yilling participants and it was
advised that Duminos ryas not a ~yillin7 participant at this time.
Korpchak arrived and noted that Steve Grittman, or another representative from NAC,
was expected to be present, as ~~~ell as iVlike Cvr and a representative from DAT. It was
clarified that the common area would include all properties but the EDA ~yould have to
have the property owners consent to proceed. Koropchak advised that ownership of the
• alleyway was never determined, ho~yever they were going with the assumption that it is
divided do~yn the center of the alley. y
EDA Minutes - 0/27/03
Herbst asked if there were plans for the vacant lot and Koropchak advised that the owners •
had been in and talked with Jeff O'Neill and herself about building on that lot, as well as
possible TIF assistance, although she advised that TIF could not be used as currently there
is no building on that site. She suggested possibly trading buildin~~s with another
property owner and then TIF could be used. She advised that Grittman did not see
construction of a retail building alone Walnut Street as an option as he felt the City
needed to keep that lot for present and future parking. It was also noted that the DAT had
reviewed the fence that Sn}~der's had erected and determined it w-as for liability purposes
as initially stated by the owners. Koropchak added that she did not invite building
owners to this meetin~~ as she wanted to wait until the EDA had met and talked with
Grittman. She also noted that they may not want to proceed with anything due to the
construction on Broadway at this time, as well as the core street reconstruction coming
up.
Herbst stated he felt this is a great idea but feels that if the EDA is putting in public
money they need some type of return and would need support of the business owners.
Koropchak advised that initially the EDA wanted to get the costs and present something
to the owners, working on a partnership or some type of agreement. and that the EDA
would do this with the support of the business owners. They discussed that possibly they
need to put a time frame on it as well. Herbst agreed with that but he felt it was not
worth dressing up the common area and nothing else with the remainder of the property.
He felt it needs to be all or none and should be done all at one time, with possibly the
property owners portion assessed back to them. Demeules stated they can't really assess
this, so Herbst sug~~ested maybe offerin~~ them an EDA loan with a lower interest rate.
Koropchak advised that they would then have to re-establish the downtown revitalization
loan program. and also felt that the costs would be eaten up by doing the trash enclosures.
etc.
They further discussed the costs for improvements being high, especially if they needed to
address drainage and curbin~~ issues. It was stated that the business owners did not
necessarily feel they had a drainage problem.
There was discussion on proceeding with presentiny~ information to the business owners
or possibl}~ holding a meetin~~ where they present the information to them. Smith and
f Ierbst felt that they Should send the information out prior to meeting with them which
might save time for both the ED:~ and business owners. Herbst added that the EDA only
had ~l-1.000 at this time to work with. Koropchak also statc;d she would have Grittman
revise the plans to include the property that was left out on the initial plans.
It was further discussed that the EDA could be lookin~~ at possible low interest loans for
the business owners portions and that they would need to include all the properties at one
time versus individually to make it feasible. They also discussed that this would have to
be put to bids and that Koropchak should discuss with Cvr the estimates he provided.
Herbst questioned the possibility of not pa}-ing the Liquor Store bind back at this time
EDA Minutes - 05/27/03
and use some of that money for the loans. "They also stated that ~0°,% of the business
. owners would need to participate.
It was the consensus to send out invitations to the business owners. inviting them to a
meeting.: possibly on a Tuesday evening around 7 pm. Koropchak advised that she would
not put an offer on the invitation, but rather state that the EDA would have an attractive
package. She would request them to RSVP.
It was further advised that the EDA has $1 ~h.000 available for alley improvements and
trash enclosures, and possibly the EDA could obtain a low interest loan for the rest. The
ED:~ was in agreement with this. although it was advised that they would need some type
of <zuarantee.
A 1~IOTION VVAS MADE BY GLINT HERBST TO ACCEPT COSMETIC DESIGN
SKETCHES FOR REAR FACADE ItitPROVEiVIENTS AND COST ES"TIMATES AS
SUBMITTED BY NAG. DETERMINE WHAT THE EDA IS WILLING TO FUND,
AND INVITE THE BUSINESS O~Vi~1ERS "TO A PRESENTATION. BARB
SCHWIENTEK SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Koropchak asked for clarification as to whether she should prepare this as a total package
or something other. She was advised to prepare a financing package offering low interest
loans, as an example.
• ~. Consideration of EDA updates:
a) Refinance of GMEF Loan'.~o. 01~ - T. J. Martin. Inc. Koropchak stated she had the
a~~reements for the supplemental loan agreement, but they have not been in to si~~n.
b) Request to pre-pay GMEF Loan No. 018 - IRTI. Koropchak advised that this should
be done in June.
c) Request to pre-pay GMEF Loan No. 017 -TCDC. Koropchak advised that there is no
penalty for prepaying. She also spoke to Mr. Harmon and they are requestin~~ to pay the
FDA loan. She noted some penalties on the Cit}~ loan, Harmond wants to hold off on that
at this time. This could be extended also. The worst scenario is if he did not meet the
low to moderate income levels -the: entire $00,000 would ha~•e to be paid back to the
state. Thcv are contemplating ~~oing to the Council to pre-pay the city loan. She noted
that they are hirin~~ less but hiring at higher pay rates which is a benefit. No financial
penalty to either TCDC or the EDA/City.
6. Executive Director's Report
Regarding the legislative bill, Koropchak stated that Rep. Mark Olson called her late
Friday and stated he did not get her fax but had received her voice-mail. He stated he
would try to introduce the bill if the city adjusted it to state the ~ year rule would not
EDA Minutes - 0/27/03
apply to Block ~2. She spoke to the attorney and HRA Chair Andrews who agreed to
this. She forwarded it to Olson and will follow-up. The HRA Attorney felt at least we
could do pay-as-you-go with a TIF district.
Koropchak stated she is working with Marketing Committee on a new ad.
Other Business None
Ad1ournment
A MOTION WAS MADE BY BARB SCHWIENTEK TO ADJOURN THE MEETING
AT x:10 P.M. ROBBIE SMITH SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
Recorder
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