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EDA Meeting Minutes - 03/12/25MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 12, 2025 — 6:00 p.m. Mississippi Room, Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP MEETING (Academy Room) 5:00 p.m. Discussion and Review EDA Workplan Proposed 2025-2027 Members Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Staff Present: Executive Director Jim Thares, Tyler Bevier, Sarah Rathlisberger 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:05 p.m. B. Roll Call 6:05 p.m. Mr. Johnson called the roll — all members were present with exception of Treasurer Hali Sittig joining later. 2. Consideration of Additional Agenda Items None Commissioner Hali Sittig joined the meeting at 6:07 p.m. 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving_Regular Meeting Minutes — February 12, 2025 C. Consideration of Approving Workshop Meeting Minutes — February 12, 2025 JON MORPHEW MOVED TO ACCEPT AND APPROVE THE CONCENT AGENDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 4. Public Hearing None 5. Regular Agenda A. Consideration of EDA Financial Statements and Fund Balance Information Finance Director Sarah Rathlisberger introduced herself and the 2024 Economic EDA Regular Meeting Minutes — 03/12/2025 Development Authority financial statements, noting the September 30, 2024 date should read unaudited as of December 31, 2024; the original intent was to meet at the February 2025 EDA business meeting. No further revisions will be presented this evening with anticipation for the City audit taking place week of April 7, 2025 to finalize any year-end entries for 2024. Numbers may be tweaked slightly if any further statements are received, however Ms. Rathlisberger was confident that the figures presented were as accurate as possible. Ms. Rathlisberger explained the structured layout of the presented statement, noting the EDA-controlled general funds, GMEF program, the columns for tax increment financing (TIF) districts, GAAP reconciliation or financial presentation to the EDA as one fund, and total balances for EDA funds and Small Cities Development Program (SCDP) funds and broke down each column's components. Mr. Johnson asked if a motion was required for the consideration presented or to take the presentation as such. Sarah Rathlisberger stated while the numbers were near complete, they have not yet been finalized while year-end auditing is underway. Mr. Johnson asked when a finalized report should be available and if the board may receive a copy at a future meeting. Ms. Rathlisberger said although not usually provided in the past, agreed to this request moving forward, to include along with the agenda packet. B. Consideration of Block 52 Redevelopment Certificate of Completion Executive Director Jim Thares spoke of the past consideration, last presented at the April 10, 2024 EDA meeting, staff asked the board to sign a Certificate of Completion for the Block 52 Mixed Use Redevelopment project and to disburse the authority grant for an amount of $367,400 to Block 52 Holdings, LLC, contingent on satisfactory completion of remaining contract items. Subsequently, the figure was amended to the current authorizing grant in the amount of $417,400, none of which has been disbursed to date. The Certificate of Completion has also yet been approved or signed and are asking for $40,000 be held back at this time. Mayor Hilgert asked for clarification, as figures noted in the Manager's Report state $377,400; Mr. Thares confirmed the figure was originally $367,400 and the EDA added $50,000 last April; staff is asking for $40,000 retained today. At last year's consideration, many items were yet to be completed on the "punch list" and have since made progress. A Certificate of Occupancy (CO) was issued on EDA Regular Meeting Minutes — 03/12/2025 October 10, 2024 as project complete, and revised to Temporary status as of January 311 2025 with list of items to complete. Considering the building permitting aspect, many items have been completed with exception of signage without ethos and other minor revisions related to the PUD. By suggestion of legal counsel, the City was encouraged to retain the issuance of the Certificate of Completion and funding disbursement until all requirements of the PUD are satisfied. Mr. Thares stated the applicant is almost there; the remaining items are relating to landscaping in warmer weather conditions and submittal of a full parking management plan to satisfy the partially collected. Mr. Thares was optimistically hoping to receive the plans to provide with tonight's agenda, but was unsuccessful. The wording in the motion is written with means of contingency on receiving the final items to staff's determination of completion. Escrow was also collected to suffice other requirements, parking lot lighting was an example provided, as funds are available through other contracts. Mr. Johnson asked if alternative options to consider, to pass with contingency or to postpone the decision for two weeks until the next scheduled EDA meeting with anticipation of the applicant to submit the needed items, short of retaining merely $40,000 to balance where they are. Mr. Thares said June should be considered to revisit the release of the fund is a PUD issue and stated the escrow fund was earmarked for the parking issue. To clarify subject points on this item for discussion, Angela Schumann said as part of the conditions of the planned unit development agreement, the developer must provide a parking management plan. Calculations for the parking requirements facilitate residential and commercial parking, however the developer was required to provide a management plan. An example of informational details including, for example and managing underground and ground level parking, how commercial tenants will have employees placed in the lot while providing adequate customer parking. What has been received thus far was the residential plan for the apartment management portion of the parking plan with anticipation for the developer to locate tenants to determine parking needs in how to manage parking before the commercial aspect was to be considered. The applicants wanted to be certain that the City encompassed all requirements of the management plan in order to facilitate good parking strategies in the downtown area. Councilmember Tracy Hinz asked how the monetary assignment for the parking management plan came to be implemented on lien waivers; they are not items that EDA Regular Meeting Minutes — 03/12/2025 can be purchased. Mr. Thares stated the $40,000 figure was determined by staff as a means to get their attention. The $290,000 figure originally presented last April would have built a lot more out of the $367,400 total. The EDA grant requirements are to spend the funding on items including the parking lot and its lighting, street- scaping along the sidewalk, and the retaining wall and walk on the Highway 25 side, all totaling well over the $417,000 contracted amount. The applicant has not received disbursements to date. HALI SITTIG MOVED TO APPROVE THE EXECUTION OF THE CERTIFICATE OF COMPLETION FOR BLOCK 52 MIXED -USE REDEVELOPMENT PROJECT AND AUTHORIZE PARTIAL DISBURSEMENT OF THE AUTHORITY GRANT FUNDING IN THE AMOUNT OF $377,400 TO BLOCK 52 HOLDINGS, LLC AS AUTHORIZED IN THE PURCHASE AND DEVELOPMENT CONTRACT. MOTION SECONDED BY LLOYD HILGART. AN AMENDMENT TO INCLUDE THE DISBURSEMENT OF THE FINAL $40,000 FROM STAFF WAS MADE BY LLOYD HILGART. AMENDED MOTION SECONDED BY HALI SITTIG. MOTION CARRIED UNANIMOUSLY, 6-0. C. Consideration of Adoption of EDA Workplan Proposed 2025-2027 Prior to the regular meeting, EDA members and staff met for a workshop to review the proposal to incorporate revisions to the historical document to include items from and referencing the Monticello 2040 Vision + Plan specific to EDA activities. Mr. Thares provided a red -lined 2022-2024 copy for the proposed 2025-2027 workplan with minimal revisions and removal of completed projects. An addition to include to goal 1.2, with EDA members actively pursuing the needs of businesses visited. TRACY HINZ MOVED FOR APPROVAL OF ADOPTION OF THE 2025-2027 EDA WORKPLAN AS PRESENTED. MOTION SECONDED BY RICK BARGER. MOTION CARRIED UNANIMOUSLY, 6-0. 6. Economic Development Manager's Report Executive Director Jim Thares spoke of the two individuals from the community with business experience, introduced by President Johnson, who are interested in vying for the vacancy on the EDA. Applications have not been received by the candidates yet, however, both individuals meet the criteria to apply, so intent is to schedule interviews in late March pushed into April will allow for time and consideration to be included on the May agenda. At the previous meeting, Mr. Thares spoke of EDA Attorney Gina Fiorini and several of her 4 EDA Regular Meeting Minutes — 03/12/2025 colleges who had recently left Kennedy & Graven to work at Minneapolis law firm, Kutak Rock. With EDA's direction, interviews and selection process will take place sometime at the end of April into mid -May to properly contract the City's municipal bond issuances, economic development, and TIF financing needs. Mr. Thares spoke of the Due North Car Wash GMEF loan paid off by RRG Holdings, LLC. The total payoff amount was $123,215.66, which will go back into the GMEF Loan balance, increasing the available funds to approximately $808,300.00 +/-. In addition, two invoices for attorney fees totaling $1,515.00 were also received. No action is proposed for reinstating the Economic Development Services Assistance consultant contract as of yet; staff continues to evaluate the need for this service as the year progresses. Mr. Thares reported that Rustech Brewing is liquidating their equipment by means of online auction and also intends to connect with owner Bill Burt on the progress and to collect on missed payments. The EDA has a first security interest through a Purchase Money Security Interest (PMSI) on a list of brewing equipment through a valid Universal Commercial Code (UCC) filing with the MN Secretary of States office. The anticipation is to collect from the sale of their assets to pay toward their loan. The EDA will be informed on the progress and will revisit to consider acceptance of any bids received through the online auction process, per EDA recommendation. Mr. Thares spoke of the status on the Nordic Restaurant and Taphouse GMEF Loan application submittal and the lenders approached in support of the property purchase and remodel of the new location in Block 52 at 106 Walnut Street. A joint meeting was held with the lenders, the applicant, and staff to discuss the various loan options available. Due to timing constraints, the applicant has decided to pause all loan requests from lenders to focus on other sources of funding to renovate the property; loan request process may restart in the future, potentially next year. In the interim, staff anticipates that Nordic Restaurant and Taphouse may seek to use the EDA Facade Improvement Forgivable Loan program to redo the exterior of the property and will be included on a future workshop agenda for consideration. Mr. Thares presented and spoke of the prospect and projects list, regarding the status of each candidate and applicant to date. Mr. Barger asked if an addition to the Manager's Report could be implemented to include EDA Regular Meeting Minutes — 03/12/2025 developer status or potential issues that may have come up and referenced the housing and hotel studies as a means to determine the community's needs as a similar approach for the EDA's context. Mr. Thares agreed, the information will be implemented in future reports. The EDA recessed at 7:06 p.m. and entered into a closed session to discuss the below agenda items. Following the closed session, the EDA adjourned their regular meeting. 7. Closed Session - Consideration of Recessing to Closed Session to Develop or Consider Offers or Counteroffers for the Purchase or Sale of Real or Personal Property Pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(31 PI #s 155191000010, 1551910000201, 155191001010 PID # 155171001010 8. Adiourn Following the closed session, the EDA Adjourned their regular meeting. Recorded By: Anne Mueller 1\-�P Date Approved: April 9, 2025 Jin hare EDA Executive Director