Loading...
EDA Meeting Minutes - 4/10/2024MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, April 10, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Academy Room 5:00 p.m. Review and Discussion of Retail Market Analysis Proposal Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, 011ie Koropchak- White, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: Vice President Jon Morphew, Rick Barger Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:06 p.m. B. Roll Call 6:00 p.m. President Johnson called the roll. 2. Consideration of Additional Agenda Items None 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes — October 25, 2023 C. Consideration of Approving Joint Workshop Meeting Minutes — March 13, 2024 D. Consideration of Approving Regular Meeting Minutes — March 13, 2024 LLOYD HILGART MOVED TO APPROVED THE APRIL 10, 2024, REGULAR MEETING CONSENT AGENDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 4-0. 4. Public Hearing None 5. Regular Agenda A. Consideration of Business Subsidy Pre -Application Monticello Hospitality, LLC - Fairfield by Marriott Hotel Development Proposal Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. The EDA was asked to review and make a recommendation to the City Council on a formal Tax Abatement application for a hotel and restaurant development proposal. Staff reviewed the application and companion materials, and recommended approval of the application for Tax Abatement. Commissioner Hali Sittig joined the meeting at 6:16 p.m. Mayor Lloyd Hilgart referenced the recently completed hotel study in 2023, and that it implied some sort of business subsidy would be needed to support the development of a new hotel location in Monticello. Applicant Rob Thompson addressed the EDA and the public. He noted that the development team is excited about the project, and added that without the use of Tax Abatement, the project would not be feasible. President Johnson added that the hotel study noted that many potential visitors to Monticello were choosing to stay in St. Cloud or Maple Grove, due to the lack of hotel brands such as Marriott in the area. Councilmember Tracy Hinz appreciated the development team's interest in bringing this project to the Monticello community. LLOYD HILGART MOVED TO ADOPT RESOLUTION EDA-2024-07 RECOMMENDING THAT THE CITY COUNCIL AUTHORIZE THE USE OF TAX ABATEMENT IN SUPPORT OF A 98-ROOM FAIRFIELD BY MARRIOTT HOTEL WITH A RESTAURANT DEVELOPMENT PROPOSAL BY MONTICELLO HOSPITALITY GROUP, LLC. HALT SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. B. Consideration of Greater Monticello Enterprise Fund (GMEF) Pre -Application - Excelsior Tool, Inc. in the amount of $250,000 Mr. Thares provided an overview of the agenda item to the EDA and the public. A GMEF pre -application loan request was submitted by Excelsior Tool Company, Inc. The firm has been in contact with City staff regarding a relocation from Maple Plain, MN (Hennepin County) to Monticello and identified a building and are in discussions with the owner regarding the terms of a purchase agreement. Mayor Hilgart asked why the Small Cities Development Fund is not being utilized for this loan request. Mr. Thares clarified that the Small Cities Development Fund is specifically for equipment purposes. The costs associated with equipment in the pre -application submittal indicate they are to be used for equipment relocation purposes, and not for funding new equipment. Applicants Bob Bush and Scott Thompson addressed the EDA and the public. They noted they have identified a building in town that they would plan to move into. Councilmember Hinz asked if Excelsior Tools rents or owns their current location in Maple Plain. Mr. Bush clarified that they currently rent, and they would own the new location in Monticello. HALI SITTIG MOTIONED TO AUTHORIZE STAFF TO PROCEED WITH FURTHER DUE DILIGENCE RELATED TO THE GMEF LOAN CREDIT APPLICATION REQUEST FROM EXCELSIOR TOOL AND PREPARATION OF A LOAN AGREEMENT FOR CONSIDERATION AT A FUTURE MEETING. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. C. Consideration of Authorizing a Certificate of Completion and approval of a partial disbursement of the EDA "Authority Grant" to Block 52 Holdings, LLC - Block 52 Mixed Use Development in the amount of $290,000 Mr. Thares provided an overview of the agenda item to the EDA and the public. As per the "Authority Grant" Terms in the Block 52 Purchase and Development contract executed September 16, 2022, the EDA is being asked to authorize a partial disbursement of the "Authority Grant" for various public improvement activities, as noted in the Contract that have been completed by Block 52 Holdings, LLC. Mr. Thares also reviewed the Certificate of Completion which is required to be approved by the EDA upon acceptable completion of the development. It was noted by Thares that the Temporary Certificate of Occupancy (CO) issued by the City Building Official on January 31, 2024, has a list of outstanding work activities that are yet to be completed by the developer. Fortunately, the developer is making good progress on these items including the pouring of sidewalks and installation of landscaping. Staff recommended approval of the item contingent on the developer completing the outstanding items identified in the temporary certificate of occupancy. TRACY HINZ MOVED TO EXECUTE THE CERTIFICATE OF COMPLETION FOR BLOCK 52 MIXED -USE REDEVELOPMENT PROJECT, AND AUTHORIZE DISBURSEMENT OF THE AUTHORITY GRANT FUNDING IN THE AMOUNT OF $290,000 TO BLOCK 52 HOLDINGS, LLC AS AUTHORIZED IN THE PURCHASE AND DEVELOPMENT CONTRACT, CONTINGENT ON SATISFACTION OF ITEMS LISTED ON THE TEMPORARY CERTIFICATE OF OCCUPANCY (CO) ISSUED BY CITY BUILDING OFFICIAL ON JANUARY 31, 2024, AND RESOLUTION OF REMAINING APPLICABLE CONDITIONS OF THE BLOCK 52 PLANNED UNIT DEVELOPMENT APPROVAL. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. 6. 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. No action was taken on the item. 7. Adjournment TRACY HINZ MOVED TO ADJOURN THE APRIL 10, 2024, REGULAR MEETING OF THE MONTICELLO EDA. SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 7:03 P.M. Recorded By: Hayden: Ha den Stens ard/�7 Date Approved: May 8, 2024 ATTEST: ,Thares, Executive Director