Loading...
EDA Meeting Minutes - 08/13/25MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) August 13, 2025 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, Rick Barger, Clint Berglof, Mayor Lloyd Hilgart, Councilmember Tracy Hinz Commissioners Absent: Vice President Jon Morphew Staff Present: Executive Director Jim Thares, Bob Ferguson 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello Economic Development Authority to order at 6:05 p.m. B. Roll Call 6:05 p.m. Mr. Johnson called the roll. 2. Approval of Agenda None 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Workshop Meeting Minutes —July 9, 2025 C. Consideration of authorizing $1,550 in funding to support the Monticello Industrial Economic Development Committee's hosting the 2025 Manufacturers' Breakfast Event scheduled for October 10, 2025 D. Consideration of authorizing 2026 CY funding contribution to the Initiative Foundation for Community and Economic Development programs RICK BARGER MOVED TO APPROVE THE CONSENT AGENDA. CLINT BERGLOF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. 4. Public Hearing None 5. Regular Agenda A. Consideration of EDA Resolution 2025-05 awrovine Ordinance No. 854 establishine an Affordable Housing Trust Fund (AHTF) and accepting EDA (acting as the HRA) responsibility for creating and administration of the AHTF programs Mr. Thares provided background information about the Affordable Housing Trust Fund (AHTF), the recently approved AHTF City ordinance and the EDA's role, through its HRA duties in administering the programs created through the AHTF Ordinance. In summary, 1 EDA Regular Meeting Minutes —August 13, 2025 the AHTF is established with the intent to support development, rehabilitation and financing available for affordable housing. He noted that the City Council adopted Ordinance No. 854 on July 14, 2025. Mr. Thares also reminded the EDA that it is acting as the HRA as it was formed through its enabling resolution as having dual powers of an EDA and HRA as allowed in state statute. Furthermore, the establishment of an AHTF ordinance is consistent with the City's housing goals as identified in the EDA Workplan. TRACY HINZ MOVED TO ADOPT EDA RESOLUTION 2025-05 APPROVING THE AFFORDABLE HOUSING TRUST FUND ORDINANCE NO. 854, ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND FOR THE CITY OF MONTICELLO AND MORE EXPLICITLY ACCEPTING THE EDA'S (ACTING AS THE HRA) ROLE AS THE ADMINISTRATOR OF THE AFFORDABLE HOUSING TRUST FUND PROGRAMS WHICH ARE INTENDED TO SUPPORT DEVELOPMENT, REHABILITATION AND FINANCING OF AFFORDABLE HOUSING. RICK BARGER SECONDED THE MOTION. Mr. Barger asked if 2026 funding might be applied to the AHTF immediately or if there is a waiting period. Mr. Thares explained the funds will be swept into the Trust upon receipt of the funding. Mr. Johnson asked if funding might be applicable for grants toward energy updates or residential improvements, considering housing ages with its inhabitants. Mr. Thares explained that it would be an eligible use of the funding with the provision that the recipients be income qualified as low -and -moderate -income. THE MOTION CARRIED UNANIMOUSLY, 5-0. B. Consideration of EDA Resolution No. 2025-06 authorizing a Second Amendment to Lease Agreement with City of Monticello Park and Recreation Department for use of former Fred's Gas Station, 349 West Broadway, for Monti Arts activities and programs Mr. Thares said the EDA is asked to approve a Second Amendment to Lease Agreement between the City of Monticello Parks & Recreation Department and EDA for the MontiArts program to continue to use the former Fred's Gas Station space for projects, gatherings, and storage. The initial lease agreement was entered into in September 2018, extended for another two years at its end point in 2023, and is set to expire as of August 31, 2025. The terms of the lease amendments are addressed in Section 3. The extension establishes a new 2-year term and can be extended upon mutual agreement by both parties. LLOYD HILGART MOVED TO ADOPT EDA RESOLUTION 2025-06 APPROVING A SECOND AMENDMENT TO LEASE AGREEMENT BETWEEN THE EDA AND THE CITY OF MONTICELLO FOR 349 WEST BROADWAY (FRED'S AUTO) IN CONNECTION WITH AND FOR THE BENEFIT OF THE PARKS & RECREATION DEPARTMENT'S USE OF THE PROPERTY FOR MONTIARTS ACTIVITIES. HALI SITTIG SECONDED THE MOTION. 2 EDA Regular Meeting Minutes — August 13, 2025 Mr. Johnson asked if there was a termination clause within the lease agreement, in the event of a developer proposal. Mr. Thares confirmed that there is a 45-day termination notice in the lease. He noted that there is not any current developer interest in the property. He said that the former USPS building next door is vacant and that a significant portion of the block City may be a future redevelopment opportunity. He also said city staff have been in contact with the owner of the old post office building and will monitor the marketing efforts for that property and present updates to and/or seek feedback from the EDA on that parcel as appropriate in the future. MOTION CARRIED UNANIMOUSLY, 5-0. C. Consideration of Resolution 2025-07 authorizing the 2026 HRA Property Tax levy and the 2026 EDA General Fund Budget Mr. Thares provided background on the 2026 CY HRA Special Benefit property tax levy and noted that the review and approval schedule allows it to be ratified by the City Council at the same time as the City levy, late September 2025. The City will certify final property tax levies in early December 2025. He further noted that the EDA levy determination is a policy decision. He summarized the proposed 2026 EDA General Fund budget, noting the interest earnings and the minor fund transfers in the revenue side. The proposed 2026 CY HRA tax levy is $504,000 while the proposed CY 2026 EDA General Fund budget is $590,000. He pointed out that the City classification and compensation study which is being completed will have a modest impact on the EDA expenditures budget as currently there are three staff members being paid all or portions of their salaries from the budget. Mr. Thares also explained the redevelopment activities line item (which also includes land acquisition) is the largest single -budget category and may fluctuate based on the salaries and benefits final input figure. TRACY HINZ MOVED TO ADOPT EDA RESOLUTION 2025-07 APPROVING THE 2026 HRA SPECIAL BENEFIT PROPERTY TAX LEVY IN THE AMOUNT OF $504,000 AND THE EDA GENERAL FUND BUDGET IN THE AMOUNT OF $590,000. HALI SITTIG SECONDED THE MOTION. Mr. Johnson asked if EDA-owned land values have been revised to reflect the current market value. Mr. Thares said the figures are adjusted at the end of the year as per accounting and valuation practices. Mr. Barger asked Mr. Thares if he might have a figure in mind to support Block 34 redevelopment funding objectives. He responded that the ballpark goal is probably close to $2M. Mayor Hilgart added that he agreed it would be all of that or slightly more. Mr. Thares also spoke about the potential sale of the EDA-owned lots in Otter Creek Business Park in 2026. 3 EDA Regular Meeting Minutes — August 13, 2025 When asked by Mr. Barger regarding budgeting for communications, Mr. Thares said a marketing campaign outline will be presented at a future EDA meeting for review and feedback. He stated that it is derived from the IMCP, Integrated Marketing & Communications Plan which was completed in 2022. THE MOTION CARRIED UNANIMOUSLY, 5-0. 6. Economic Development Manager's Report Mr. Thares updated the EDA on the upcoming Wright and Sherburne County Enterprise Academy. It is 12 entrepreneurial training sessions which will take place at the Monticello Community Center (MCC) starting on September 11 and ending December 4. He explained background of the proposed $250 contribution to the class would be used for snacks and beverages for the students. He said if the EDA approves the funding request, he will ask the WCEDP to use placards informing the attendees that the City of Monticello EDA is providing snacks and beverages. Mr. Thares provided an overview of the Project Updates including the Headwaters Villa Townhomes, Big River Commercial Development including Les Schwab Tire Center, Fairfield by Marriott Hotel, and Wendy's. Building Official Bob Ferguson spoke on the status of the Certificate of Occupancy (CO) for the Nordic Taphouse and housekeeping items to satisfy the final building inspection. Mr. Thares shared some sentiments collected from a recent downtown Business Retention and Expansion (BR&E) visit and for other upcoming Downtown Rounds in September to be hosted at Nordic Taphouse. Mr. Thares touched on the Planning Commission agenda items, project updates, and prospect list. Mr. Johnson asked if the Board wished to address the Enterprise Academy donation. LLOYD HILGART MOVED TO APPROVE $250 IN TOWARD EXPENSES OF FOOD AND DRINK FOR THE WRIGHT AND SHERBURNE COUNTY ENTERPRISE ACADEMY SESSIONS BEING HELD AT MONTICELLO COMMUNITY CENTER. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. 7. Adjourn TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 6:56 P.M. 4 EDA Regular Meeting Minutes — August 13, 2025 Recorded By: Anne Mueller &k'1, Date Approved: October 22, 2025 - Jim har s, Executive Director of the Monticello EDA 5