EDA Meeting Minutes - 5/22/2024MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, May22, 2024— 7:00 a.m.
Academy Room, Monticello Community Center
Commissioners Present: Vice President Jon Morphew, Treasurer Hali Sittig, 011ie
Koropchak-White, Rick Barger, Councilmember Tracy Hinz
Mayor Lloyd Hilgart joined the meeting at 7:03 a.m.
Members Absent: President Steve Johnson
Staff Present: Jim Thares, Angela Schumann
1. General Business
A. Call to Order
Vice President Jon Morphew called the regular meeting of the Monticello EDA to
order at 7:00 a.m.
B. Roll Call 7:00 a.m.
Mr. Morphew called the roll.
Lloyd Hilgart arrived at 7:06
Hali Sittig joined the meeting at 7:08
2. Consideration of Additional Agenda Items
None
3. Consent Agenda
None
4. Public Hearing
None
5. Regular Agenda
A. Consideration of Adopting Resolution 2024-10 authorizing a Purchase Agreement
with Civil Engineering Site Design, LLC for the acquisition of 118 Broadway East in
the amount of $665,000 and authorizing a Property Management and Lease
Agreement for 118 Broadway East with Civil Engineering Site Design, LLC
Jim Thares, Economic Development Manager introduced the item. The purchase
agreement of 118 Broadway East from Civil Engineering Site Design negotiated with
Mr. Dahlke is $665,000 plus closing cost estimated at $4,700. This property currently
is between two EDA owned properties in Block 34.
This item was originally reviewed by the EDA at the May 8, 2024, meeting and was
tabled with questions about the terms of the Purchase Agreement (PA) and the
lease. It is a complicated and intertwined transaction with leases referenced in the
PA.
The concerns identified in the May 8, 2024; meeting have been revised in the
updated documents. Discussion ensued regarding the terms of lease termination as
they are currently only noted under the "default" section. Staff indicated that it has
always been Mr. Dahlke's main concern to have an EDA provided location for a
duration of 10 years. The notice period in the EDA lease has been revised to 150
days. This is key for Mr. Dahlke as the changes required to remodel the DMV office
building to support his business needs are extensive. Tracy Hinz asked for
clarification of the term length of relocation. Angela Schumann, Community
Development Director, pointed out the difficulty in finding construction companies
likely supports the need for the additional time. Lloyd Hilgart agreed with this point.
Ms. Hinz said the need for the EDA to be proactive in giving Mr. Dahlke notice is
important.
Ms. Schumann discussed how the 2 lease agreements work together. The EDA
agreement is a 12 -month term renewable annually with the new clause added. The
City Lease Agreement is until June 30, 2034.
When Mr. Dahlke relocates to the DMF Office, the lease will activate or take effect.
He is responsible for the renovation to meet his needs in the building.
Mr. Morphew inquired what the upside for the EDA to keep this business in this
building. Mr. Hilgart addressed the question. The current location allows for a more
opportunities to develop Block 34. With the lease in the DMV should the EDA
terminate the lease, the EDA will be responsible to find them a similar location.
The wells are there and cannot be moved, however, a study is being done to
determine if it is possible to move them in the future.
Jim Thares noted that the proposed transaction closing date is targeted for June 26,
2024.
The approval will increase the ownership of this block by the EDA by .09 percent.
The City DMV lease will be presented to the City Council on May 28, 2024.
LLOYD HILGART MOVED TO ADOPT RESOLUTION 2024-10 AUTHORIZING A
PURCHASE AGREEMENT WITH CIVIL ENGINEERING SITE DESIGN, LLC FOR THE
ACQUISITION OF 118 BROADWAY EAST, MONTICELLO, MN (PID 155010034120), IN
THE AMOUNT OF $665,000 PLUS CLOSING COSTS AND FURTHER AUTHORIZING A
PROPERTY MANAGEMENT AND LEASE AGREEMENT WITH CIVIL ENGINEERING SITE
DESIGN, LLC., HALI SITTIG SECONDED. MOTION CARRIED UNANIMOUSLY.
B. Consideration of adopting Resolution 2024-11 Authorizing an Interfund Loan for
Advance of Certain Costs in Connection with a Tax Increment Financing District in
Block 34 related to the EDA acquisition of the 118 Broadway East
Mr. Thares introduced the item. This item is a financial step to allow the EDA to
approve an Interfund Loan for advance of certain costs related to EDA acquisition of
real property located at 118 Broadway East in connection with a future Tax
Increment Financing (TIF) District in Block 34. The EDA attorney and Staff support
this. The EDA approved this for the Finders Keepers purchase.
The total amount of the proposed interfund loan as noted in the Resolution is
$785,000. This total includes the acquisition amount of $665,000 plus closing costs
and any potential environmental studies, soil clean up expenditures or property
maintenance costs.
LLOYD HILGART MOVED TO ADOPT RESOLUTION 2024-09 APPROVING AN
INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS RELATED TO EDA ACQUISITION
OF REAL PROPERTY LOCATED AT 118 BROADWAY EAST IN CONNECTION WITH A
FUTURE TAX INCREMENT FINANCING (TIF) DISTRICT IN BLOCK 34. MOTION CARRIED
UNANIMOUSLY.
6. Other Business
A. Consideration of Economic Development Manager's Report
Mr. Thares provided an overview of the Economic Development Manager's Report.
7. Adjournment
TRACY HINZ MOVED TO ADJOURN, RICK BARGER SECONDED MOTION. MOTION
CARRIED UNANIMOUSLY. MEETING ADJOURNED AT 7:35 A.M.
Recorder: Vicki Leerhoff
Approved: ,ILIne 12, 2024
Attest:
�Msihares, Economic Development Manager