EDA Meeting Minutes - 09/11/2024MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 11, 2024 — 6:00 p.m.
Mississippi Room, Monticello Community Center
ECONOMIC DEVELOPMENT AUTHORITY CLOSED SPECIAL MEETING
Academy Room
6:30 p.m. Consideration of Negotiations of Properties
PID: 155-500-123300
PID: 155-274-001010, 155-274-002010, 155-274-002020, 155-274-002011,
155-274-002021, 155-194-000020, 155-274-000010
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Hali Sittig 011ie Koropchak-White, Rick Barger, Councilmember
Tracy Hinz, Mayor Lloyd Hilgart
Staff Present: Angela Schumann, Jim Thares, 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
Jim Thares, Economic Development Manager, requested an item to be added; Missy
Meidinger, Executive Director, Wright County Economic Development Partnership
(WCEDP) to give an update.
Angela Schumann, Community Development Director, introduced Tyler Bevier,
Community and Economic Development Coordinator.
3. Consent Agenda
A. Consideration of Payment of Bills
B. Consideration of Approving Regular Meeting Minutes — June 12, 2024
C. Consideration of Approving Joint Workshop Meeting Minutes —June 12, 2024
D. Consideration of Approving Regular Meeting Minutes —June 26, 2024
E. Consideration of Funding for Manufacturers Appreciation Breakfast — October 111
2024
OLLIE KOROPCHAK-WHITE MOVED TO APPROVE THE CONSENT AGENDA. HALI SITTIG
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
4. Regular Agenda
A. Consideration of Resolution No. 2024-17 approving amended GMEF Loan
Agreement with Rustech Brewing Company, LLC
Mr. Thares introduced this item as referring to the Rustic Brewing Company, LLC.
The EDA approved a GMFE loan to Rustic Brewing in 2017 which opened its doors in
Spring 2018.
Over the past 2 years Rustic Brewing has experienced challenges such as COVID, and
a serious power outage, causing loss of revenue and damage to equipment. After
evaluating Rustic's business performance, they closed in May of 2024 and sold the
building to Hair Obsession, LLC in August 2024.
Mr. Thares said with the current language in the contract, an event of default occurs
at the time of relocating equipment from the business site. This has occurred.
Accordingly, Rustech Brewing Company, LLC is in default and this would be
addressed through the proposed loan amendment. Mr. Burt has stated several times
that he is hoping to reopen, leasing a space in the City of Monticello.
During the August 14, 2025 EDA Workshop, by consensus, the EDA agreed to amend
the loan agreement to allow the equipment to be relocated away from the 105 West
3rd Street and that a one-time lump sum payment of $5,000 toward the current loan
balance of $59,096.87 be included. Rustech agreed to this concept and payment by
September 30th. The brewery is current in its monthly payments. Under this
amendment, the monthly payment amount would remain the same at $428.31. A
balloon payment will be due in approximately 5 years.
Commissioner Rick Barger inquired if Rustic Brewing, LLC, has agreed to pay the legal
fees. Mr. Thares confirmed that they have.
Mr. Johnson pointed out that the new document does not list the new location of
the equipment, and it could pose a risk. Mr. Thares confirmed this.
Mayor Hilgart said that both parties are trusting in goodwill. Commissioner Jon
Morphew agreed and pointed out the borrower has also provided a personal
guarantee for the EDA loan. Commission Hali Sittig shared that they have honored
everything they have told the EDA.
Mr. Thares said this is a way to support a business in a difficult situation.
RICK BARGER MOVED TO ADOPT RESOLUTION 2024-17 APPROVING AN AMENDED
AND RESTATED GMEF LOAN AGREEMENT WITH RUSTECH BREWING COMPANY, LLC
WHICH WAS ORIGINALLY AUTHORIZED BY THE EDA ON JULY 12, 2017. HALI SITTIG
SECONDED THE MOTION. MOTION CARRIED, 5-0, JON MORPHEW AND TRACY HINZ
ABSTAINED.
B. ADDITIONAL ITEM - UPDATE OF THE WCEDP
Mr. Thares introduced Missy Meidinger, WCEDP Executive Director. Ms. Meidinger
provided an upkdate of activities of the WCEDP and entertained questions from the
EDA.
C. Consideration of Accepting the 2024 Housing Workshop Summary as an
Addendum to the 2023 Housing Needs and Market Demand Report
Mr. Thares introduced the item. Staff are asking for the EDA to consider accepting
The 2024 Housing Summary as an Addendum to the 2023 Housing Needs and
Market Demand Report. The City Council, Planning Commission and the Economic
Development Authority met in June to discuss the 2023 Housing Needs and Market
Demand Report which was accepted by the EDA in October of 2023.
Mr. Thares shared he feels the report is meaningful and clear. It includes the findings
and takeaways from the Joint meeting in June and will be added to the existing
report. The last section lays out some policies which staff may recommend.
Ms. Schumann explained if the EDA approves this report, the next step is to go to
the City Council. Once it is approved Staff will begin the process of recommending
policies.
Mr. Morphew shared his perspective on Senior Housing. Encouraging Seniors to
leave their homes would give 1st time home buyer a better chance to purchase a
house. Ms. Schumann stated her points in the report which addresses this issue.
There will be funding available in the future to provide to affordable housing
projects.
HALI SITTIG MOVED TO ACCEPT THE 2024 HOUSING STUDY AS AN ADDEMDUM TO
THE 2023 HOUSING NEEDS AND DEMAND REPORT. MOTION SECONDED BY OLLIE
KOROPCHAK-WHITE. MONTION CARRIED UNANIMOUSLY, 7-0.
5. Other Business
A. Consideration of Economic Development Manager's Report
Mr. Thares provided an overview of the agenda item.
No action was taken on the item.
6. Adjournment
TRACY HINZ MOVED TO ADJOURN, HALI SITTIG SECONDED MOTION. MOTION CARRIED
UNANIMOUSLY. MEETING ADJOURNED AT 6:37 P.M.
Recorder: Vicki Leerhoff
Approved: February 12, 2025
Attest: / /(if L 14V'- "
James T'hares, Economic Development Manager