EDA Meeting Minutes - 10/23/2024MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, October 23, 2024 — 7:00 a.m.
Academy Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Hali Sittig 011ie Koropchak-White, Rick Barger, Councilmember
Tracy Hinz, Mayor Lloyd Hilgart
Members Absent:
Staff Present: Executive Director Jim Thares, Angela Schumann, Tyler Bevier
1. General Business
A. Call to Order
Chair Steve Johnson called the regular meeting of the Monticello EDA to order at
7:01 a.m.
B. Roll Call 7:00 a.m.
Steve Johnson called the roll at 7:02
2. Consideration of Additional Agenda Items
None
3. Consent Agenda
A. Consideration of Letter of Suaaort in connection with Wrieht Countv Economic
Development Partnership's Childcare Grant Application to MN -DEED in the
amount of $600,000
STEVE JOHNSON MOVED TO APPROVE, MOTION CARRIED UNANIMOUSLY, 7-0.
4. Regular Agenda
A. Consideration of Resolution 2024-21 Authorizing a Facade Improvement Forgivable
Loan to AJ Properties, LLC (Monticello Family Dentistry) in the amount of $12,513
Economic Development Manager Jim Thares gave an overview of the application.
The applicant will have to contribute 5% of the cost, total of $659. The loan is
forgivable in three years, with a tiered approach. Jim Thares spoke about the
improvements to the building, including the brick staining. The EDA budget has
enough money to cover the proposed facade loan.
Steve Johnson asked if there were any comments from commissioners.
TRACY HINZ MOVED TO APPROVE, OLLIE SECONDED MOTION. MOTION CARRIED
UNANIMOUSLY, 7-0.
B. Consideration of Resolution 2024-22 Authorizing a Second Master Amendment
Agreement of the RRG Holdings, LLC and Sota Car Wash (Due North) GMEF Loan
adding Chad Melin as an additional Guarantor and amending previous Guaranty
Agreement
Jim Thares gave an overview of the amendment agreement. The applicant has
previously met their job creation goals. They have not made the October payment,
which is unusual for this loan. Jim indicated that he would address this with the
applicant when they meet to sign documents on October 29. EDA President, Steve
Johnson also plans to attend that meeting.
Jim also noted that he just learned that the car wash has filed paperwork with the
Secretary of State changing their legal name. They have additional related
documents that they are revising as well. Jim sent these to the EDA attorney and
the paperwork issues will be reviewed and resolved as appropriate.
RICK BARGER MOVED TO APPROVE, HALI SITTIG SECONDED MOTION. MOTION
CARRIED UNANIMOUSLY, 7-0.
C. Consideration of Resolution 2024-23 authorizing an Amendment of the Block 52
Purchase and Development Contract with Block 52 Holdings, LLC, Buchholz
Exchange, LLC and Norgren Exchange, LLC
Jim Thares asked that this item be tabled again, to the November 13, 2024, meeting.
Jim Thares spoke about the complicated nature of the project. The requested action
is to provide additional funding to the Block 52 developer.
Jim Thares spoke about the EDA's current policy for the Fagade Improvement
Forgivable Loan program. A new quote has come in for the Mattress Store at
approximately $105,000 for both the front and back portions of the building.
The EDA Attorney suggested that the EDA consider providing additional pooled TIF
dollars for the public improvements such as the parking lot paving, the sidewalks,
the retaining wall along MN-TH #25, the streetscape lighting and landscaping, the
corner plazas. The remaining Fagade program funding would then be sufficient to
complete the Mattress Store project.
HALI SITTIG MOVED TO TABLE, OLLIE SECONDED MOTION. MOTION CARRIED
UNANIMOUSLY, 7-0.
D. Consideration of Authorizing a Deferred Assessment Agreement between the City
and the EDA on the 14.16-acre parcel of land (PID # 155-282-000010), which the
EDA acquired from Riverwood Bank in December 2023, for 10 years or until the
property is sold for development
Jim Thares gave an overview of the item. The EDA has already paid a sizable
assessment payment totaling $127,185.66 to the City along with the May 2024
property tax payment. This is just the first year of numerous years of required
assessment payments. That was not the intent at the time of closing on the
purchase of the property in late December 2023. This amount of outlay is
approximately 25 percent of the EDA's annual budget and would have an impact in
pursuing its goal objectives the EDA may want to pursue in the coming years.
JON MORPHEW MOVED TO APPROVE, RICK BARGER SECONDED MOTION. MOTION
CARRIED UNANIMOUSLY, 7-0.
5. Other Business
A. Consideration of Economic Development Manager's Report
Mr. Thares provided a brief overview of the agenda item to the EDA and the public.
A summary of the 2024 Manufacturer's Breakfast with UMC and Monticello High
School presentations was a success. It is estimated that about 70 people attended
the event.
No action was taken on the item.
6. Adjournment
TRACY HINZ MOVED TO ADJOURN, OLLIE SECONDED MOTION. MOTION CARRIED
UNANIMOUSLY. MEETING ADJOURNED AT 7:44 a.m.
Recorder: Vicki Leerhoff —&
Approved: November 13, 2024
s Thares, Economic Development Manager