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EDA Meeting Minutes - 2/14/2024MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 14, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 5:00 p.m. Retail Market Analysis Discussion with Jim McComb Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard, Sarah Rathlisberger 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:05 p.m. B. Roll Call 6:00 p.m. Mr. Johnson called the roll. 2. Annual Business Meeting A. Consideration of electing EDA officers Executive Director Jim Thares provided an overview of the agenda item. The EDA is asked on an annual basis to elect a president, vice president, and treasurer. Historically, City staff has served as the EDA's secretary and would continue to do so. LLOYD HILGART MOVED TO ELECT STEVE JOHNSON AS PRESIDENT, JON MORPHEW AS VICE PRESIDENT, AND HALI SITTIG AS TREASURER FOR 2024. OLLIE KOROPCHAK- WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. B. Consideration of reviewing EDA Bylaws By consensus, no amendments to the EDA Bylaws were considered. C. Consideration of reviewing EDA Enabling Resolution By consensus, no amendments to the EDA Enabling Resolution were considered. D. Consideration of EDA Financial Statements and Fund Balance Information Finance Director Sarah Rathlisberger gave a presentation to the EDA regarding their 2023 financial statements and fund balance information. HALI SITTIG MOVED TO ACCEPT THE FINANCIAL REPORT FOR 2023. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 3. Consideration of Additional Agenda Items None 4. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes —January 10, 2024 C. Consideration of Resolution No. 2024-01 conveying Outlot A, Great River Addition (4.81 acres) to the City of Monticello LLOYD HILGART MOVED TO APPROVE THE FEBRUARY 14, 2024 EDA REGULAR MEETING rnIVCGKIT ArFnlnA nl I IG VnRnDrl. AV_%A1U1TC CCrnKmCn TUC AAnTlnnl nnnTlnnl �.I V . s �v L�VVi I. v�LIL I�vl\vl %,I 1/—%I% VV 1 III I— JLt.VIV VLV 1 OIL. IVI\! 1 IVIV. IV1%✓ 1 IVIV CARRIED UNANIMOUSLY, 7-0. 5. Public Hearing A. Consideration of Resolution 2024-02 authorizing a $300,000 GMEF Loan and Business Subsidy to Block 52 Holdings, LLC, Buchholz Exchange, LLC and Norgren Exchange, LLC for the Project Simpl build out - 101 West Broadway Street Item 4A of the agenda was considered after item 4B. Mr. Thares provided an overview of the agenda item to the EDA and the public. The owners of 101 West Broadway Street submitted a Greater Monticello Enterprise Fund (GMEF) loan application in the amount of $300,000 for the build -out of a commercial tenant space. The total area that would be built out is roughly 13,000 square feet, and the applicants noted the improvements total about $150 per square foot. The program's policies set the interest rate for the loan at two percent below the prime rate. The applicants sought a GMEF loan at 3.5 percent. Staff's recommendation was for approval of the GMEF loan for $300,000 at 3.5 percent interest for a term of 10 years. Mr. Johnson opened the public hearing portion of the agenda item. Mr. Johnson closed the public hearing portion of the agenda item. RICK BARGER MOVED TO ADOPT EDA RESOLUTION 2024-02 AUTHORIZING A GMEF LOAN TO BLOCK 52 HOLDINGS, LLC IN THE AMOUNT OF $300,000 FOR THE PROJECT SIMPL OFFICE BUILD -OUT AT 101 WEST BROADWAY STREET, CONTINGENT ON COMPLETED LOAN ANALYSIS SUMMARY REPORT BY RIVERWOOD BANK WITH SATISFACTORY RECOMMENDATION. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. B. Consideration of Resolution 2024-03 authorizing a $48,422 Facade Improvement Forgivable Loan and Business Subsidy to Bliss Salon —109 Walnut Street Item 4B of the agenda was considered before item 4A. Mr. Thares provided an overview of the agenda item to the EDA and the public. The City received a completed application for the Downtown Facade Improvement Program for 109 Walnut Street. Previously, the EDA held a workshop to discuss the project prior to an application being submitted, and reviewed the owner's identified improvements to the building. Staff's recommendation was for approval of the forgivable loan. Mr. Johnson opened the public hearing portion of the agenda item. Erika Fisher, owner of 109 Walnut Street, made herself available for questions. Rick Barger asked if the awnings at the front of the building are currently on the building. Ms. Fisher said that the awnings were still on the building, but are proposed to be removed in connection with the proposed improvements. Treasurer Hali Sittig asked if all the windows on the rear building wall were going to be replaced. Ms. Fisher confirmed. Mr. Johnson questioned whether the proposed improvements address the original goals of the program. He noted that the windows would be replaced and the stucco would be improved on all four sides of the building, but did not see any proposed substantial changes to the building. Ms. Fisher noted the interest in addressing all four sides of the building was due to the visibility of the side walls from both Walnut Street and River Street, as well as the new parking area the City created that faces the rear side. Mr. Johnson said he did not see the improvements proposed as enhancements to the building's facade consistent with the program's intent. Mayor Hilgart disagreed and believed that the proposed improvements to the building facade were consistent with the program and added that the time to discuss the proposed improvements was at the workshop meeting prior to the submittal of the application. Mr. Johnson noted that in previous applications the EDA had worked with applicants to develop architectural drawings to detail proposed improvements. It was in his interest for the item to be tabled until the applicant brought back an updated proposal that included more enhancements to the building. Ms. Sittig asked if the program's original intent was to substantially change the facades of buildings in the downtown area, or whether is was to assist with improvements to those existing building's facades. Community Development Director Angela Schumann clarified that the EDA originally -I._J il- -I -��- I- -I- �- t i r .0 wor Keu wiur an architect co develop renderings from a historical perspective Tor the eligible area when it was limited to block 35. As the eligibility area expanded, more buildings were included that did not have older photos for creating renderings from that same historical perspective. Vice President Jon Morphew noted that the interest in this program has not been at the level the EDA had been hoping for at the time of implementation, but providing opportunities like this to the property owners downtown could help spur interest as the improvements are completed. Mr. Johnson reiterated the workshop meeting discussed the improvements broadly, and the EDA had not approved an application for the program that included improvements to rear building walls. Mr. Johnson closed the public hearing portion of the agenda item. TRACY HINZ MOVED TO ADOPT EDA RESOLUTION 2024-03 APPROVING A FACADE IMPROVEMENT LOAN TO BLISS SALON IN THE AMOUNT OF $48,422, CONTINGENT UPON EXECUTION OF THE REQUIRED LOAN AGREEMENT AND PROMISSORY NOTE BY THE APPLICANT AND COMPLIANCE WITH CASH MATCH REQUIREMENTS. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED 6-1, WITH STEVE JOHNSON VOTING IN OPPOSITION. 6. Regular Agenda A. Consideration of AE2S Marketing Proposal in the amount of $16,874 for preparation of housing and economic development resources Ms. Schumann provided an overview of the agenda item to the EDA and the public. In 2022, the EDA worked with AE2S to develop an Integrated Marketing and Communication Plan (ICMP) that identifies strategies to assist Monticello as they continue to slowly transition from an energy -based economy. Based on the final ICMP, AE2S provided a proposal to create communication tools for the EDA to utilize to promote their development priorities. Those communication tools include a one - page overview of Monticello, one -page overview related to commercial development, one -page summaries for the priority parcels owned by the EDA for development opportunities, and a new resident packet. Mr. Johnson asked why the EDA would fund the new resident packet for the City, and whether communication efforts by the EDA should be focused on potential investors for the community, rather than people who have already invested in the City by moving here. Ms. Schumann noted that the new resident packet would also reach current renters in Monticello, providing a connection to them could influence their decision whether to purchase property within Monticello once they are done renting. Ms. Schumann reminded the EDA they are also the City's Housing and Redevelopment Authority. OLLIE KOROPCHAK-WHITE MOVED TO APPROVE A PROPOSAL FROM AE2S IN THE AMOUNT OF $16,874 FOR PREPARATION OF HOUSING AND ECONOMIC DEVELOPMENT RESOURCES. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED 6-0, WITH STEVE JOHNSON ABSTAINING FROM THE VOTE. 7. 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. 8. Adjournment TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. MEETING ADJOURNED AT 7:24 P.M. Recorded By: Hayden Stensgard Date Approved: March 13, 2024 ATTEST: m Tharts, Executive Director