EDA Meeting Minutes - 10/9/2024 (Special)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, October 9, 2024 — 4:45 p.m.
Academy Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Hali Sittig, 011ie Koropchak-White, Rick Barger, Mayor Lloyd
Hilgart, Councilmember Tracy Hinz
Commissioners Absent:
Staff Present: Executive Director Jim Thares, Community Development Director
Angela Schumann, Community and Economic Development
Coordinator Tyler Bevier
1. Call to Order
President Steve Johnson called the workshop meeting to order at 4:49 p.m.
2. Roll Call
Mr. Johnson called the roll.
3. Twin Pines Apartment Development Proposal - Tax Abatement Pre -Application
Review and Discussion
Economic Development Manager Jim Thares opened the discussion and gave an
overview of the Tax Abatement pre -application submittal packet memo. Mr. Thares
introduced the Twin Pines Proposal representatives, Vishal Dutt and Dave Walia
Mr. Dutt spoke about their proposed 96-unit multi -family market rate apartment
development and the land entitlement approval steps which began over two and a half
years ago as well as the shift in the financial markets during that time frame. The land
was purchased at the end of 2023. The site is unique in that it is sort of landlocked with
an access through another developed parcel. The access entry and exit are to School
Boulevard. The developer representatives stated that they are fully committed to the
project and reiterated the difficulties with financing.
Mr. Walia spoke about the rising cost of the project. They feel strongly about the
Pointes at Cedar project. Vishal spoke about their belief in the local demand of housing
for the project to get the development started in 2025.
Jim Thares began with the history of the project as a four -level apartment complex over
a parking garage and described its proximity to Walmart, and its connectivity to
surrounding streets. In January 2024, the developers sought and received a plat
approval extension by the City Council (01/22/24). In April 2024, Mr. Dutt inquired
about financial assistance, indicating that the shift in the financial markets and
increasing costs has resulted in a financing gap. Staff completed some initial research
about various potential options and learned that TIF (tax -increment financing) would
not be an option due to a prior -present use of the site to support a Tax Abatement Bond
issuance for public infrastructure improvements in 2018.
Mr. Johnson asked specifically if this parcel was tied to the Fallon Avenue bonding.
Angela Schumann answered that the property was indeed tied to that funding as it was
previously considered to be a commercial parcel under the previous land use guidance
plan.
Mr. Johnson asked the developers if they were aware that these financing tools may not
be available when they purchased the property. They responded that they were
unaware at that time and had not previously thought they would need assistance for
the market rate project.
Mayor Lloyd Hilgart stated that the developers likely did not have the intention to ask
for tax abatement at time of purchase. They agreed.
Mr. Thares spoke about the tax abatement policy guidelines that need to be considered
when reviewing applications. They consist of the following factors.
o Create or retain jobs
o Enhancing the city's economic
o Transportation or public infrastructure improvements
o Providing affordable housing
o Improving quality of life of city residents
Jim Thares spoke about the policy regarding disqualifying elements. A reminder that this
is a pre -application opportunity, where the EDA should weigh in on next questions for
the applicant. It was also reiterated that there may not be the demand for multi -family
housing and that the Housing Study's demand elements may have been met for the
time frame of 2023 through 2028, or possibly longer.
Lloyd Hilgart stated that the market may be fully saturated and echoed that it is also
happening in nearby peer communities. There are complexes with resident incentives
that are still struggling for occupancy rates, and employment struggles in the region.
Jim Thares gave an overview of the Housing Study completed in 2023. The low estimate
of units completed since 2022 projected an excess of 110+. The high estimate stated
the need for 530 units. Since then there have been over 450 units completed, so a
presumed need of 80 units. The anecdotal feedback in the community indicates that
the actual demand is less than the high estimate.
Steve Johnson stated that the estimate was through 2028. Jim Thares stated that it was
supposed to be a 5-year timeframe, and the newly developed units are being built faster
and may be causing the saturation of the market.
Jim Thares spoke about the business subsidy goals, including "the big 6". Downtown
redevelopment, Pointes at Cedar, Public Projects, Affordable Housing Needs, Senior
Housing 55+. This proposal does not address these options as the applicant is a market -
rate project. The conversation was turned over to EDA members for questions.
After discussion, a consensus of the EDA members was that this Tax Abatement
proposal does not meet the Abatement Policy.
4. Monticello Family Dental — Facade Improvement Forgivable Loan Pre -Application
Review and Discussion
Mr. Thares suggested that the Monticello Family Dentistry fagade improvement
proposal discussion be moved to the end of the Workshop agenda. This item was
moved to review as time allowed. At the very end of the Workshop, it was suggested
that this item be added to the regular EDA meeting agenda.
5. Sleep Concepts Mattress Store — Facade Improvement Forgivable Loan Pre -Application
Review and Discussion
Mr. Thares updated the EDA about the recently received new rendering for the Mattress
Store facade improvement proposal. It is a simpler design and likely less costly. The wall
trellis is a wall attachment that could be added in the future. The East Wall of the store
would like to seek another EDA funding source. The Mattress Store funding would be
sourced from the already approved FaGade Improvement Forgivable Loan Program. He
pointed out the renderings included in the agenda packet. EDA members feel
comfortable with the new renderings.
TRACY HINZ MOVED TO ADJOURN. JON MORPHEW SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY, 7-0. MEETING ADJOURNED AT 5:58 P.M.
Recorder: Vicki Leerhoff V'
Approved: November 13, 2024
Attest:
J mes T ares, Economic Development Manager