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EDA Meeting Minutes - 06/11/25 (Workshop)MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 11, 2025 — 5:00 p.m. Academy Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Rick Barger, Clint Berglof, Mayor Lloyd Hilgart, Councilmember Tracy Hinz Commissioners Absent: Treasurer Hali Sittig Staff Present: Executive Director Jim Thares, Community Development Director Angela Schumann, Tyler Bevier, Anne Mueller 1. Call to Order President Steve Johnson called the regular meeting of the Monticello Economic Development Authority to order at 5:00 p.m. 2. Roll Call 5:00 p.m. Mr. Johnson called the roll. 3. Direct Housing Aide and Housing Trust Fund Ordinance Review -Discussion Executive Director Jim Thares provided a brief overview of the Minnesota Direct Housing Aide. He noted the state funds are being distributed based on population and disbursed to cities and counties in three cycles in 2023, 2024 and 2025. The City of Monticello received $60,870 in 2023 and 2024 and will receive an additional $30,435 in 2025 for a grand total of $152,175. The legislation authorizing the funding requires that it be committed to a project or purpose within three years of receiving the funds and spent within four years of being received. Without an obvious project at this moment, staff are seeking EDA-HRA guidance as to usage or the option of creating an Affordable Housing Trust Fund which is believed to allow the preservation of the funding and remove the commitment timelines. City staff are seeking discussion and direction from the Commissioners at this time. Clint Berglof arrived at the meeting at 5:05 p.m. Community Development Director Angela Schumann suggested the decision points be based on the drafted ordinance by the City attorney establishing a housing trust fund. It defines "affordable housing" for the purposes of the fund, and indicates how the funding will become self-sustaining, and lists out the allowed uses of the funding as per state statute. Ms. Schumann reviewed the various options related to a potential housing trust fund. The EDA-HRA could act as the responsible trust fund administrator, or the City itself could EDA Workshop Meeting Minutes — 06/11/2025 administer the funds with the EDA acting as a review or advisory body for the Council. Ms. Schumann also reviewed the potential uses of the funds with a focus on "affordable housing". It can be used to benefit single-family homes or multi -family buildings and could be for rehabilitation projects or new development. First-time homebuyer assistance is also allowed for low -and moderate -income households. She further noted the matrix and percentages calculated for persons with "very low" or "moderate" income qualifications aligning with the Federal HUD program and using the Greater Twin Cities area as a model. The funds could also be used to match other federal, state or local funding sources for housing projects. Conversations with legal representation for the City indicated the availability of serving as matching funds to supplement projects the EDA wishes to fund in conjunction with use of Federal funds or other financial assistance tools. Steve Johnson noted the potential to leverage $152,000 +/- with other State programs and the flexibility in establishing a trust fund. Ms. Schumann noted another key decision, if consideration for funding may be used for multi -unit projects, the number of units needing to serve as affordable or be occupied by low- and moderate -income households are a key criteria needing EDA direction. Jim Thares pointed out the calculations in relation to the affordable housing TIF program and could serve as a basis for multi -family qualification. He noted it is a similar model. Steve Johnson, noted that single-family renovations at a lesser cost than multi -units, might be best delegated by the EDA, acting as HRA, to get the most use out of the funding dollars. It may depend on demand and where to focus activity and whether it is for new construction or rehabilitation. Jon Morphew said that smaller -scale projects may potentially not use as much in grants and subsidies as larger projects which could wipe all funds out at once. Mr. Johnson pointed out potential situations with aging generations with maintenance hardships on limited incomes where a grant or forgivable loan would help. Angela Schumann referred to the intent of the ordinance for initial funding as seed money as a measure for communities to address long-term affordable housing needs. She also suggested that pooled housing increment could be added to the trust fund dollars as well to build a program. Steve Johnson supports the concept of the EDA-HRA acting as the administrator, though ultimately acknowledged it is the City Council's decision to approve the ordinance. Angela Schumann said if the EDA is the acting entity, the EDA attorney will need to draft an ordinance adopted by the EDA where it accepts the role as the trust fund administrator. Tracy Hinz asked about trust fund limitations and if the money would expire. Jim Thares said the funds could sit idlily for a very long time. Jon Morphew added that in starting a trust EDA Workshop Meeting Minutes — 06/11/2025 fund it will be important to not let money slip away. A created and dedicated fund would encourage the EDA to consider ways to fund it and encourage growth over an unsystematic approach. Lloyd Hilgart asked if any fees might be incurred to establish a trust fund. Jim Thares said that a modest amount of legal fees will be incurred in drafting the EDA resolution and ordinance review. Ms. Schumann noted that the legacy costs would be modest and, like TIF districts, be another fund to manage which staff already do at this time. Angela Schumann suggested if consensus is to recommend the EDA-HRA serve in the role as the trust fund administrator and developer of the program, the next step is to ask the EDA attorney to review the ordinance and draft the EDA resolution consideration. Commissioners Hilgart and Hinz both agree that this is the best format of utilizing the state aide funding. Jim Thares also suggested at the end of the budget year that the EDA could review the potential to add to the trust fund through the HRA levy dollars, not used for economic development efforts. This would bolster growth of the trust fund. He also noted that for smaller rehab projects it may be worth utilizing consultants as these projects consume an immense amount of staff time with less overall community gain. Jon Morphew spoke to his perspective of obtaining the most out of a well -versed professional than to allot additional time to an already taxed staff with smaller -scale housing matters. Angela Schumann noted the ongoing relationship the city has with the Central Minnesota Housing Partnership (CMHP) and the research conducted for housing stock in the Central Core District (CCD). Ms. Schumann suggested a possible rehabilitation program, or a downpayment assistance would be where CMHP could help the city. 4. Historic Plaque Signs Review -Discussion Mr. Thares spoke of the revised quotes and visual concepts as a follow-up to earlier EDA discussions about the look and design of the historical plaque signage in the CCD. Angela Schumann noted the origins of the signage program and the intent to recognize the history and role of the buildings and the owners and the City and EDA's investment into the building. Ms. Schumann said it should be noted that the buildings are not nationally registered as historic. The Agosto Law office building signage's main purpose is to convey a story with historical images of how it came to be. Tyler Bevier noted the color palates to suit the various facade types in the CCD and provided pictorial samples of the themes used by the City in Mississippi Bronze and Monticello blues. He noted that the traditional classic bronze raised -letter plaque sample carries a EDA Workshop Meeting Minutes — 06/11/2025 substantially greater cost than the others. Tracy Hinz asked if changing the color palate format occurs, could a new sign be ordered for the Agosto Law building to match the newer ones. Jim Thares said that could be done. Jon Morphew stated he was also not in attendance at the previous sign discussion and shared that the classic bronze material sign is more appropriate for historical buildings on a registry. The Agosto sign is for information and educational purposes for community citizens. Not taking the cost into the factor, Mr. Morphew said the Agosto sign is more appropriate for the program. Lloyd Hilgart said his previous comments in bringing the item back for further discussion were aimed at addressing the potential color palette issues on the various color tones of the buildings in the CCD. He was not aware that the bronze plaques could cost three times as much as the current signage format. Lloyd Hilgart asked if the signs should share the same themed color perhaps on a by -block basis. Angela Schumann asked if the EDA might want the grantee to decide. Jon Morphew asked if a catalog of options should be made available. Angela Schumann clarified the options available are the two-color themes available — blue or bronze and suggested perhaps including a black and white option for the facades which are black or white. Rick Barger suggested the importance of achieving uniformity by being a similar color palate to make downtown look more attractive. Jon Morphew noted that the Mississippi bronze scheme matches most of the existing buildings better than the blue. Steve Johnson agreed that the bronze color would look better on the old city hospital (dental clinic) facade. Jon Morphew suggested giving the applicant the option of selecting the color of their choosing and to perhaps add this into the application process on any new proposals. Angela Schumann explained that the requirement is not currently written in the loan contract. She further noted the origin of the program, and the benefit of the sign as being paid for by the EDA as part of the loan. She also said that permission will need to be provided by the property owners before any signs are installed. Ms. Schumann asked if the EDA was ready to move forward and act on the palates as presented. Lloyd Hilgart suggested removing the classic bronze historical plaques from discussion completely and asked if the two-color palate options and a black and white option might be made available. Staff confirmed that the suggestion is valid and can be made available for the EDA to decide how to proceed in a future agenda. EDA Workshop Meeting Minutes — 06/11/2025 Lloyd Hilgart said the depictions could be printed and physically placed on the buildings to gain perspective in real time and suggested a walking tour for the next EDA discussion and decision. Angela Schumann spoke to the changes and updates since the last walking tour, including the roadway and pedestrian improvements and fagade program. Jon Morphew suggested casually contact the building owners to inform of the EDA efforts before the next meeting to gauge interest. Adiourn The workshop concluded at 5:51 p.m. Recorded By: Anne Mueller 0, Date Approved: July 9, 2025 m)TharesEDA Executive Director