EDA Minutes 06-15-2004MINUTES
. MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, June 15, 2004 - 4:00 p.m.
City Hall -Academy Room
MEMBERS PRESENT: Chair Bill Demeules, Vice Chair Barb Schwientek, Clint Herbst, Ron
Hoglund, and Darrin Lahr.
MEMBERS ABSENT: Council members Roger Carlson and Robbie Smith
STAFF PRESENT: Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
GUESTS: John Simola, Public Works Director, Bruce Cochran, WSB, Inc, and attached list of
Block 35 property owners.
Call to Order.
Chair Demeules called the EDA meeting to order at 4:00 p.m. declaring a quorum.
2. Consideration to approve the April 27, 2004 EDA minutes.
Ron Hoglund made a motion to approve the April 27, 2004 EDA minutes. Seconded by Clint
Herbst and with no corrections or additions, the minutes were approved as written.
Consideration of adding or removing agenda items.
The Executive Director requested the addition of one item under 7. Other Business: Review of
preliminary loan application from Water Monitor, Inc.
4. Consideration to review the Feasibility Study~repared by WSB, Inc. for authorization to
proceed with alley and ,plaza improvements to Block 35.
Koropchak noted the Feasibility Study before the EDA was afollow-through of the EDA and
City Council action authorizing WSB, Inc. to complete a Feasibility Study for Block 35.
Commissioners were reminded of their original goals and objectives, informed of the property
tax delinquency for 2002, 2003, and first one-half of 2004 for one property, that the
unrestricted parking spaces (designated loading zones) were not identified in the Maintenance
Agreement, and that the EDA Attorney comments will be distributed.
Bruce Cochran, WSB, Inc., gave a brief background of his experience in projects similar to
Block 35 and noted he was recently hired by WSB. Having concept designs from Planner
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EDA Minutes - 06/15/04
Grittman and observing the area first-hand, the Study was prepared and presented with three
options. Each option varied in costs from $265,000 to $307,000 mainly due to the location of
the catch basins and alley materials. Cochran was unaware of the EDA budget of $145,000
which he felt for a first analysis was an advantage. The commissioners and property owners
compared the cost options and identified line items to reduce costs. The Study included costs
to be paid by the private sector for drainage connections between roof tops and catch basins
($17,000) and costs associated with sanitary pipe for the Masonic Temple ($2,700). They
discussed the option of bituminous versus concrete for alley replacement. Public Works
Director Simola noted with the Aggregate Base Class 5 Mod proposed for the bituminous
alley, he could support the use of bituminous. He also informed attendees that the biggest
difference besides costs is the life expectancy (25 years for bituminous versus 50 years for
concrete). Participants agreed that the location of the catch basin along the curb cut of the
plaza area was not the best option for accomplishing the goal to improve roof and alley
drainage problems; although, it was the cheaper option. Location of the enclosed consolidated
common trash containers was discussed relative to safety and visibility concerns at Walnut
Street and proximity to power lines versus convenience to users. Others items mentioned were
the location of the keystone retaining wall planters, plaza material options, and the need to
locate gas line and telephone boxes. It was the consensus of the commissioners and the
property owners to reduce the overall costs and requested WSB to address the following items:
1. Grading levels for drainage flow to determine location of catch basins. 2. Use of bituminous
for alley replacement. 3. Plaza material options other than pavers: Exposed aggregate, •
stamped concrete, and colored concrete. 4. Planter design and location. 5. Trash container
location. 6. Vegetation. Bruce also noted some flexibility in the contingency and 28% indirect
costs. A meeting vas scheduled for Tuesday, June 22, 2004, 4:00 p.m. to review the revised
costs. Schwientek requested at the next meeting the Executive Director provide information as
to other EDA funds available for this project in addition to the $145,000. A copy of the EDA
Attorney's comments were distributed and Attorney Agosto was asked to comment from the
perspective of Block 35.
5. Consideration to request the City Council to authorize WSB Inc. to design the project and ~o
out for bids and specs.
Not applicable.
6. Consideration to authorize preparation of a Contract for Development between the EDA and
said Block 35 property owners.
Not applicable.
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7. Other Business.
EDA Minutes - 06/15/04
Koropchak reviewed a preliminary loan application from Water Monitor, Inc. requesting
$900,000 of public/community funding for working capital and operating costs for location of a
inbound customer service/billing center. The company has toured the building on Thomas
Circle previously occupied by Fingerhut. The owner of the building ,Winkleman Builders,
prefers to lease rather than sale and ran a D & B on the company which was marginal.
Koropchak noted that the following items did not comply with the GMEF Guidelines: USES
OF PROCEEDS: Working Capital. FINANCIAL METHOD: GMEF must be used as
secondary source to conventional lender. BUSINESS ELIGIBILITY: Industrial. Koropchak
noted no credit analysis has been completed but noted the company's decision would be based
on community investment. Koropchak asked the commissioners if they concurred with the
analysis by the Director that this preliminary loan application from Water Monitor, Inc. did not
comply with the GMEF Guidelines. The EDA commissioners concurred.
The EDA was informed that Barry Fluth withdrew the Landmark Square II project due to
timing and monetary reasons and that TOLD Development Company working on behalf of
Walgreen's withdrew from the Block 52 site due to high cost of acquisition and unwilling
sellers. Walgreen's remain very interested in Monticello and are looking at alternative
downtown sites as well as sites south of I-94.
8. Adjournment.
By a consensus of the EDA commissioners, the meeting adjourned at 5:30 p.m.
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Ollie Koropchak, Recorder