EDA Minutes - 09/13/2023MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 13, 2023 — 6:00 p.m.
Mississippi Room, Monticello Community Center
SPECIAL MEETING —JOINT ECONOMIC DEVELOPMENT AUTHORITY/CITY COUNCIL
Monticello Community Center — Academy Room
5:00 p.m. Tax Abatement Policy Review and Discussion
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Hali Sittig, 011ie Koropchak-White, Rick Barger, Councilmember
Tracy Hinz and Mayor Lloyd Hilgart
Staff Present: Executive Director Jim Thares
1. General Business
A. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order
at 6:07 p.m.
B. Roll Call 6:00 p.m.
Mr. Johnson called the roll.
C. Consideration of Payment of Bills
HALI SITTIG MOVED TO APPROVE THE PAYMENT OF EDA BILLS. RICK BARGER
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
D. Consideration of Approving Regular Meeting Minutes — August 9, 2023
LLOYD HILGART MOVED TO APPROVE THE AUGUST 9, 2023, REGULAR MEETING
MINUTES. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY,
7-0.
E. Consideration of Additional Agenda Items
An item was added to the regular agenda regarding an interfund loan. That item was
added to the agenda as item 4C.
2. Consent Agenda
N/A
3. Public Hearing
N/A
4. Regular Agenda
A. Consideration of accepting 2023 Hotel & Hospitality Study Update Report —
Stephen Sherf, Hospitality Consulting Group, LLC
Executive director Jim Thares provided an overview of the agenda item to the EDA
and the public. In June of 2023, the EDA authorized an update to the existing Hotel
& Hospitality Study. The update to the Study was completed by Hospitality
Consulting Group, LLC.
Stephen Sherf of Hospitality Consulting Group, LLC. provided a summary of the
updated Study to the EDA and the public. Mr. Sherf highlighted that the Study
showed that a considerable amount of hotel business is leaving Monticello, due to
the lack of quality hotel options. He also mentioned that the Study further showed
that Monticello has the capacity and necessity for a new hotel location, though he
noted the economics of getting a new development could prove to be a challenge
due to the current economic conditions. The recommendation regarding the size of
a new hotel in Monticello was approximately 80 rooms with a 1,200 to 1,500 square
foot meeting space and swimming pool.
Mayor Lloyd Hilgart mentioned anecdotally that people have emphasized the lack of
hotel options in Monticello which causes people to stay elsewhere. Mr. Sherf added
that Monticello's proximity to Maple Grove plays a significant role in why people are
willing to stay elsewhere, even though they have business in Monticello.
Location wise, Mr. Sherf noted that four (4) sites in Monticello were reviewed as
part of the Study update. The Pointes at Cedar area and the vacant land directly
west of Runnings appear to have the most appeal for a new hotel location. Mr. Sherf
noted this is largely influenced by the amenities surrounding the sites that were
reviewed.
011ie Koropchak-White asked if there was any discussion on Block 34 downtown
being a potential site for a new hotel, as that location would achieve an EDA goal of
related to redevelopment of the Block. Mr. Sherf said that in 2020, there were
downtown sites reviewed, but they were not included in this update.
JON MORPHEW MOVED TO ACCEPT THE 2023 HOTEL MARKET STUDY REPORT
PREPARED BY HOSPITALITY CONSULTING GROUP, EXCELSIOR, MN. HALI SITTIG
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
B. Consideration of adopting Resolution No. 2023-09 approving Purchase Agreement
for 216 Pine Street, Monticello, MN (PID #155010034010
Mr. Thares provided an overview of the agenda item to the EDA and the public. In
August 2023 the Monticello EDA met in a closed meeting to discuss the potential
acquisition of the property. Mr. Thares emphasized that acquisition of this property
is important for the EDA's future redevelopment efforts of Block 34 in downtown
Monticello. Currently, the City and the EDA collectively own about 72 percent of the
land in Block 34, and acquisition of this property would increase that total to about
82 percent.
On the question of relocation fees, Mr. Thares noted that the proposed acquisition
cost of $465,000 is inclusive of any necessary relocation costs for the current
tenants. Other than the owner users, there are no known tenants utilizing the
property.
Mayor Hilgart asked if a closing date had been set. Mr. Thares confirmed that the
closing is scheduled for October 31, 2023.
Councilmember Tracy Hinz asked if the existing business at the location will continue
operations elsewhere. Mr. Thares said that did not know if the current property
owner and user had intentions of establishing a new store someplace.
Councilmember Hinz asked if relocation costs were necessary if the current business
was not anticipated to continue at a new location. Jon Morphew clarified that a
portion of relocation costs are to cover move out, generally.
OLLIE KOROPCHAK-WHITE MOVED TO ADOPT RESOLUTION 2023-09 AUTHORIZING A
PURCHASE AGREEMENT WITH JAMES AND CHERYL WOLFF FOR THE ACQUISITION OF
216 PINE STREET, MONTICELLO, MN (PID #155010034010, IN THE AMOUNT OF
$465,000. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY,
7-0.
C. Added Item — Consideration of Adopting Resolution No. 2023-10 Authorizing an
Interfund Loan for Advance of Certain Costs in Connection with a Tax Increment
Finance District
Mr. Thares provided an overview of the agenda item to the EDA and the public.
Adopting an interfund loan related to the property acquisition of 216 Pine Street will
allow the EDA to be reimbursed through tax increments generated by a future
Redevelopment TIF District for Block 34. The interfund loan total is $500,000.
Mayor Hilgart asked if there were interfund loans done for previous property
acquisitions on Block 34. Mr. Thares said that he was aware of at least one interfund
loan done in conjunction with the EDA previously purchasing property on Block 34.
TRACY HINZ MOVED TO ADOPT RESOLUTION 2023-10 APPROVING AN INTERFUND
LOAN FOR ADVANCE OF CERTAIN COSTS RELATED TO EDA ACQUISITION OF REAL
PROPERTY LOCATED AT 216 PINE STREET IN BLOCK 34 IN CONNECTION WITH A
FUTURE TAX INCREMENT FINANCING DISTRICT. HALI SITTIG SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
5. Other Business
A. Consideration of Economic Development Manager's Report
Mr. Thares provided an overview of the agenda item to the EDA and the public.
6. Adjournment
TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA.
HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. MEETING
ADJOURNED AT 7:20 P.M.
Recorded By: Hayden Stensgard�
Date Approved: October 11, 2023
ATTEST:
hares, Executive Director