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EDA Meeting Minutes - 11/13/2024MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 13, 2024 — 6:00 p.m. Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Academy Room 4:45 p.m. Review and Discussion of Pooled TIF Funds and Direct Housing Aid 5:30 p.m. Discussion regarding Economic Development Services Assistance Consultant contract Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, 011ie Koropchak- White, Rick Barger, Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: Vice President Jon Morphew Staff Present: Executive Director Jim Thares, Community Development Director Angela Schumann, Community and Economic Development Coordinator Tyler Bevier 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:00 p.m. B. Roll Call 6:00 p.m. Mr. Johnson called the roll. 2. Consideration of Additional Agenda Items A. Mr. Johnson indicated that the EDA should add an item at the beginning of the regular agenda related to the Facade Improvement Forgivable Loan Proposal for the Sleep Concepts Mattress Store located at 149 West Broadway. 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Aaarovine Special Meeting Minutes — October 23, 2024 C. Consideration of Approving Special Meeting Minutes — October 9, 2024 D. Consideration of Approving a Certificate of Completion for the Wiha Tools Develoament Proiect: 77,000 Square foot building (TIF District 46) RICK BARGER MOVED TO APPROVE THE CONSENT AGENDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 4. Public Hearing A. Consideration of Resolution 2024-23 authorizing a $100,000 Facade Improvement Forgivable Loan and Business Subsidy to Sleep Concepts Mattress Store —149 West Broadway (John Thorud) Economic Development Director Jim Thares gave an overview. The Public Hearing is connected to a Facade Improvement Loan consideration for John Thorud, owner of 149 West Broadway, in the amount of $100,000. The quote for facade improvements is $105,063.35. The specific materials are also included for approval by the EDA. The property owner is required to contribute a minimum of 5% which is $5,063.35. This is the final property on Broadway stretch of Block 52 that would have facade improvements. Currently $137,490.07 available in the Facade Loan sub - fund. It should be noted that City staff had tried to reach out to Mr. Thorud numerous times in the past three months with minimal success. Mayor Hilgart pointed out that the facade improvement project on the East Wall has been completed. Commissioners agreed that it looks good. Ms. Sittig asked if Mr. Thorud has filled out all the paperwork and has not responded. Mr. Thares said he has not signed the application and initial the new rendering. Mayor Hilgart pointed out the EDA can find another project to use the $100,000. Commissioner Barger stated that he assumes this proposal was prepared by Block 52 property owners who are trying to get some of their money back. He does not believe the cost to make this improvement would be this amount. Mr. Thares confirmed Block 52 did the quote. Mr. Barger asked how the wall looks and It was the consensus is it looks good. He asked if this would complete the look the EDA is striving to complete. Ms. Sittig said she feels the facade could use improvement and would finish off. Ms. Hinz pointed out she is disappointed that a business downtown is showing minimal effort to work with the city to complete this goal and puts the EDA in a precarious position to complete the appearance of Downtown. She does not support giving Mr. Thorud the grant and leaving it off agendas until Mr. Thorud approaches the city. Mr. Johnson feels staff should not put in additional time and wait for Mr. Thorud to approach the city. He pointed out that $100,000 is almost the value of the building. The consensus is to direct staff not to move forward. Ms. Sittig thanked Mr. Thares and Mr. Bevier for their efforts. Ms. Hinz asked if there could be any repercussions to not move forward. Ms. Sittig suggested it be tabled. Ms. Hinz agreed. After additional questions were asked. Mr. Thares pointed out that Mr. Thorud does not appear to be anxious about making improvements. TRACEY HINZ MOTIONED TO DENY APPROVAL OF THE FACADE IMPROVEMENT LOAN FOR 149 W. BROADWAY. MOTION SECONDED BY RCIK BARGER. The consensus from the EDA members was that when or if Mr. Thorud applies it is on him to do the initial work and city staff. President Johnson stayed the motion and asked opened the Public Hearing. President Johnson closed the Public Hearing. President Johnson called to vote. MONTION CARRIED UNANIMOUSLY, 6-0. 5. Regular Agenda A. Consideration of Resolution 2024-24 authorizing an Amendment of the Block 52 Purchase and Development Contract with Block 52 Holdings, LLC, Buchholz Exchange, LLC and Norgren Exchange, LLC Economic Development Director Jim Thares gave an overview asking the EDA to consider the First Amendment to the Purchase and TIF Development Contract with Block 52 Holdings, LLC, Buchholz Exchange, LLC and Norgren Exchange, LLC increasing the Authority Grant by $50,000 to a total of $417,400. Because the developer did not provide the requested cost information, staff requested the EDA to table this item from the October 9, 2024 to the October 23, 2024 and then tabled to November 13, meeting, so the Block 52 Holdings group could submit additional information related to costs of the public improvements. At the time of the approval the Block 52 property owners were struggling with the cost. Mr. Thares pointed out this also included utility improvements. Instead of using facade funding to finish the East wall, the EDA attorney suggested use the Authority Grant of the amount of $250,000. Mr. Johnson asked for clarification that the East wall of 149 West Broadway sits on Buchholtz property. Mr. Thares confirmed it is on Block 52 property. Mr. Johnson mentioned the power pole has been removed. Mr. Thares stated that funding came from another source and the development is nearly completed. The final CO has not been issued. The city is holding a check for $290,000 Authority Grnat until the project is complete. Ms. Sittig questioned the amount they are requesting, why is it significantly more that estimated; have there been change orders the city has privy to. Mr. Thares said the East wall was not included in the original plan. Block 52 saw the need for it to be done and completed it in good faith. Mr. Johnson feels it is time to wrap up the project. Ms. Sittig did not agree the EDA should be adding funding. Mr. Barger asked if they would consider adding funding to the Authority Grant to complete those items listed in the staff report. He asked for clarification of the amount spent and requested. Mr. Thares said the original quote was $420,000 and they spent $1,100,040. LLOYD HILGART MOTIONED TO ADOPT RESOLUTION 2024-19 APPROVING A FIRST AMENDMENT TO THE PURCHASE AND TIF DEVELOPMENT CONTRACT WITH BLOCK 52 HOLDINGS, LLC, BUCHHOLZ EXCHANGE, LLC AND NORGREN EXCHANGE, LLC INCREASING THE AUTHORITY GRANT BY $50,000 TO A TOTAL OF $417,400, TRACY HINZ SECONDED THE MOTION. Mr. Barger noted this is in good faith and it made a huge improvement in Downtown. He would have liked to see more details of why the cost increased so much. Mr. Johnson noted that they provided a summary. President Johnson called for the vote. MOTION CARRIED, 5-1. COMMISSIONER SITTIG VOTED AGAINST. 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. Adjournment TRACY HINZ MOVED TO ADJOURN. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 7:29 P.M. Recorder: Vicki Leerhoff Approved: February 12, 2025 Attest: Thares, Economic Development Manager