EDA Meeting Minutes - 11/13/2024 (Workshop)MINUTES
WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, November 13, 2024 — 4:45 p.m.
Academy Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Treasurer Hali Sittig,
011ie Koropchak-White, Rick Barger and Councilmembers Lloyd Hilgart and
Tracy Hinz
Commissioners Absent: Vice President Jon Morphew
Staff: Executive Director Jim Thares, Angela Schumann, Tyler Bevier
Guest: City Council Member Kip Christianson
1. Call to order: 4:45
2. Roll Call
3. TIF District and Housing Aid Discussion
Economic Development Manager Jim Thares gave an overview of the pooled Tax -
Increment Financing districts and shared updates on Housing Aid from the State of
Minnesota. As the EDA's HRA duties, the EDA is required to determine how to spend
these monies. There is another deposit expected in December of 2024 and another
in 2025.
Mr. Thares shared a handout which lists the potential pooling available from various
TIF districts. Some pooled TIF may be available as the EDA continues with the
redevelopment processes in Block 34. Mr. Thares also noted those allocated funds
which are not available, and which can be used for the Block 52 Authority Grant.
Commissioner Barger asked if the City keeps the 10 percent administrative funds
money. Mr. Thares confirmed that is correct.
Mr. Johnson asked if the amounts that go to the City are reflected in the EDA
budget. Mr. Thares explained it is limited. Each district for that admin amount has its
own budget for these costs.
Mr. Barger asked if this amount goes into the general budget and is expensed out.
Mr. Thares said it stays in the TIF budget. When the TIF is decertified, the remaining
amount goes to the County.
Mr. Thares noted that the amount available for an Affordable Housing Project is
about $110,000. Mr. Barger asked if there is a risk of Pooled TIF being eliminated in
the future.
Mr. Thares shared in 2023 the State had extra revenue and decided to share that
revenue with cities specifically for housing. This program is called Direct Housing Aid.
Monticello's share is $60,870. The first payment was made in 2023. Another of the
same amount will come in December of 2024, and half of that amount will follow in
2025.
Ms. Hinz asked if the State based the allocation on the population. Mr. Thares said
yes. Mayor Hilgart asked if it needs to be given away or if it can be used for non -
interest loans. Mr. Thares replied that it could be used that way.
4. Economic Development Assistance Services Consulting Contract
Jim Thares updated the EDA on Jim Gromberg resignation from WSB in late
September. He has started his own consulting firm. The EDA has a retainer with
WSB until the end of 2024. The fee is currently $1,083/month. Mr. Thares asked if
the EDA would like to issue an RFP in 2025 for evaluation of services scope.
Mr. Johnson noted that part of what the EDA has been enjoying with Mr. Gromberg
is his experience and network throughout the industry. Ms. Sittig questioned
whether the EDA is best served by open issuing an RFP or retaining Mr. Gromberg.
Mayor Hilgart said this service is not a necessity, however, it is an asset. He
suggested going through the first quarter of the year to put an RFP out.
Ms. Sittig asked Mr. Thares if the city has a good relationship with Mr. Gromberg
and did, he provide favorable service. Mr. Thares said Mr. Gromberg's experience
brought a lot to the city, and he felt Mr. Gromberg provided a favorable service.
Mayor Hilgart feels the EDA should go to an RFP.
Ms. Hinz agreed and suggested the EDA reevaluate what its needs are for this type
of service, what are the tangibles which were provided to the EDA. Olive Koropchak-
White agreed. Mayor Hilgart also agreed.
Mr. Thares pointed out city staff has felt more comfortable talking to Mr. Gromberg
for guidance. He has experience with the Federal Government for programs such as
the energy tax program (PACE) as well as previous employment with MN -DEED and
as a banker for a Twin Cities bank. His assistance has been stellar in pursuing the
MN -DEED leads which are typically larger manufacturing firms.
Mr. Johnson asked the question if Mr. Thares was gone who would cover him,
suggesting it would be this service. He feels Mr. Thares is overstretched. Not having
this service would increase that workload.
Council Member Kip Christianson asked what the market rate is for that service. Mr.
Thares responded that the retainer is $1,083 and he felt the market rate is close to
this price.
The consensus is to let the WSB contract lapse at the end of 2025 and open an RFP
to provide this service in 2025 to review.
5. Adjournment
T RACY HINZ MOTIONED TO ADJOURN, SECONDED BY HALL SITTIG, CARRIED
UNAM IOUSLY AT 5:39 P.M.
Recorder: Vicki Leerhoff 4
Approved: February 12, 2025
Attest:
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Thares, Economic Development Manager