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EDA Meeting Minutes - 07/24/2024MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 24, 2024 — 7:00 a.m. Academy Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart All Present Staff: Executive Director Jim Thares, 1. General Business A. Call to Order B. Roll Call 7:00 a.m. 2. Consideration of Additional Agenda Items none 3. Consent Agenda None 4. Public Hearing A. PUBLIC HEARING Continued — PUBLIC HEARING — Consideration of Facade Improvement Forgivable Loan for Jon and Lucy Murray's Dance Studio at 155 West Broadway Street and Sleep Concepts at 149 West Broadway Street Jim Thares, Economic Development Manager, continued the Public Hearing from 7/10 meeting which was opened in June. Mr. Thares noted that the required information has not been provided and staff is recommending continuing this public hearing on August 14, 2024, the next regular Economic Development Authority meeting. HALI SITTIG MOVED TO CONTINUE THE PUBLIC HEARING TO THE AUGUST 14, 2024, REGULAR ECONOMIC DEVELOPMENT MEETING, OLLIE KOROPCHAK-WHITE SECONDED MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 5. Regular Agenda A. Consideration of GMEF Loan Pre -Application from Hair Obsession, LLC-AIC Properties, LLC in the amount of $95,000 to fill a financing gap for acquisition of a commercial building located at 213 Pine Street Mr. Thares introduced Laurie and Joel Obia, owners of LLC-AIC Properties (Hair Obsession), and Sara Kortmansky-North Star Bank Lender. Hair Obsession has been in Monticello for 10 years, 8 of which in their current location at 534 Walnut Street. Due to growth, they are looking to move to a larger space and would like to purchase 105 West 311 Street. The preapplication GMEF Loan amount is $95,000. The company is requesting funding assistance to purchase an existing commercial building located at 105 West Third Street. The total investment is estimated to be $600,000 and is the former site of the Rustech Microbrewery. Rustech is planning to relocate and restructure its business. North Star Bank is the first mortgage lender of $405,000; 67.50 percent of the total cost, to the Obias for the property purchase and renovations. The owner equity cash is $100,000 or 16.70 percent of the total funding. A $95,000 GMEF loan would fill the remaining gap; about 15.80 percent of the project. Mr. Thares referred to the breakdown of funding sources and uses in the Staff Report. Hair Obsession has in its plans to create 6 new jobs and additional rental chairs. GMF loan fund has sufficient moneys and this loan would comply with the GMEF Loan policies. Mr. Johnson inquired of the total outstanding balances of all GMEF loans. Mr. Thares explained that outstanding balances will be listed at the budget meetings. Mr. Johnson inquired if there is adequate parking. Since the business relies on appointments it will be more than sufficient. Jon Morphew inquired as to what services would be offered. Mr. and Mrs. Obia listed several. The EDA lawyers can draft the loan documents. Staff is asking direction to prepare paperwork for August 141" meeting as the LLC-AIC Properties would like to LLOYD HILGART MOVED TO AUTHORIZE STAFF TO PROCEED WITH FURTHER DUE DILIGENCE RELATED TO THE GMEF LOAN CREDIT APPLICATION REQUEST FROM HAIR OBSESSION, LLC-AIC PROPERTIES, LLC AND PREPARATION OF A LOAN AGREEMENT FOR CONSIDERATION AT A FUTURE MEETING, WITH A 10 YEAR LOAN AT 5.75 PERCENT INTEREST, HALT SITTIG SECONDED MOTION. MOTION CARRIED 5-0 WITH JON MORPHEW AND TRACY HINZ ABSTAINING. B. Consideration of Authorizing the issuance of the Block 34 Redevelopment Opportunity RFI (Request For Information) packet Mr. Thares introduced the item. Staff is asking the EDA to approve the Block 34 Redevelopment Opportunity RFI which was previously reviewed at the workshop on July 10th. Angela Schumann, Community Development Director made changes as requested at that workshop. The goal is to compile a list of developers in the area and send them RFI packets by the end of July. The RFI packet identifies the response date as September 16, 2024. RICK BARGE MOVED TO APPROVE THE BLOCK 34 REDEVELOPMENT OPPORTUNITY RFI (REQUEST FOR INFORMATION) PACKET AND FURTHER AUTHORIZE STAFF TO PROCEED WITH SOLICITATION OF RESPONSES FROM DEVELOPERS, OLLIE KOROPCHAK-WHITE SECONDED MOTION. 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, HALI SITTIG SECONDED MOTION. MOTION CARRIED UNANIMOUSLY. MEETING ADJOURNED AT 7:59 A.M. Recorder: Vicki Leerhoff V Approved: January 8, 2025 Atte Jim Th nomic Development Manager