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EDA Minutes 10-08-2014MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, October 8, 2014, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Tom Perrault, Brian Stumpf Absent: Matt Frie Others: Jeff O'Neill, Wayne Oberg, Angela Schumann 1. Call to Order. Bill Demeules called the meeting to order at 6:00 p.m. Demeules asked the EDA to observe a moment of silence in remembrance of EDA Member Rod Dragsten who died unexpectedly over the weekend. 2. Approval of Meeting Minutes. In reviewing the minutes, Tom Perrault noted that the word "said" in the third paragraph on the second page after "Jeff O'Neill" should be added to the September minutes. BILL TAPPER MOVED TO APPROVE THE SEPTEMBER 10, 2014 REGULAR MEETING MINUTES WITH THE CORRECTION AS NOTED. MOTION SECONDED BY BRIAN STUMPF. MOTION CARRIED UNANIMOUSLY, 5 -0. 3. Consideration of additional agenda items. None. 4. Consideration of approving payment of bills. Angela Schumann said that at the last meeting Tom Perrault asked for clarification related to the Market Matching bills. Schumann confirmed that the EDA did pay May and June for separate services totaling $4,000 and the June bill was inadvertently included in the packet twice but was not paid twice. Schumann noted that the July bill is included in the current packet. Tom Perrault inquired about a bill from Kennedy & Graven which references "researching conference call with Angela Schumann regarding ability to issue EDA bonds to finance park facilities." Schumann explained that she had discussed with Kennedy & Graven the ability to utilize tax abatement bonds to fund public infrastructure projects, including the potential to fund improvements at the Bertram Chain of Lakes. EDA Regular Meeting Minutes: 10/08/14 The attorney best suited to answer the question was Kennedy & Graven; however, that is not an EDA expense and she will ensure the invoice is re -coded appropriately. Bill Tapper asked about two different bills to the League of Minnesota Cities Insurance Trust. Schumann said that she will check with the Finance Director on that and get back to the EDA at the next meeting. BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS WITH THE CORRECTIONS AS NOTED. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 5 -0. 5. Consideration to adopt Resolution 2014 -096, a Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 1 -36, Tax Increment Financing District No. 1 -37, and Tax Increment Financing District No. 1 -38. Angela Schumann asked the EDA to consider adoption of a resolution approving modifications to the Tax increment Financing Plan for Tax Increment Financial District Nos. 1 -36, 1 -37, and 1 -38 (the "TIF Plan"). Schumann explained that the modifications to each of these districts is essentially housekeeping in nature and results in the adjustment of line items within the district budgets to reflect actual transactions within the districts, including land acquisition costs, which have occurred in the districts since the time they were originally established. Staff has been working with the EDA's fmancial consultant, Northland Securities, to complete regular management checks on the EDA's numerous TIF districts. During this process it was noted that the budget line items as approved for each of the districts did not match the expenditures. Therefore, the modifications proposed to each of the TIF Plans are needed to amend the source and use of tax increment. Schumann noted that this type of modification does not require a public hearing as the project budget expenditures in total remain unmodified. Subsequent to the EDA approval, the state auditor will be notified to update all of the records accordingly. Tom Perrault asked for clarification on whether or not this item needs to go through the City Council for approval or if the EDA is able to approve the modification. Schumann said that it most likely needs to be forwarded to the City Council for approval and she will ensure that is done if that's the next appropriate step. BILL TAPPER MOVED TO ADOPT RESOLUTION 2014 -096 APPROVING MODIFICATIONS TO TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICTS 1-36,1-37, AND 1 -38. MOTION SECONDED BY BRIAN STUMPF. MOTION CARRIED UNANIMOUSLY, 5 -0. 2 EDA Regular Meeting Minutes: 10/08/14 6. Consideration to approve contracts for service for environmental analysis and demolition management, structural analysis, and redevelopment fmding analysis for EDA and City -owned properties on Block 34, and to adopt Resolution 2014 -095, an Interfund Loan Resolution in support of funding the contract services. Angela Schumann asked the EDA to consider a multi- action request. The first request is to consider adopting a resolution authorizing an interfund loan which would advance payment for costs associated with a potential new redevelopment district. Schumann explained that in considering the contracts that are included for service there are associated costs with those contracts. The costs can be funded through Tax Increment District 1 -22 or they can potentially be funded through the General Fund. In any case an interfund loan should be created so the money can be borrowed from a legally acceptable source such as the General Fund and the resolution then gives the EDA the authority at a later date, should a redevelopment district be created, to reimburse themselves and that fund for those expenditures. Staff is proposing the EDA fund these expenses through the General Fund. Not all of the parcels are actually in District 1 -22 and eventually the EDA may decide not to create a redevelopment district. Also, by funding through this fund it provides the flexibility for the EDA to elect not to reimburse the costs. Schumann said that the second set of actions is related to contracts that the ED A may want to consider as related to the properties that it owns on Block 34. In August the EDA authorized staff to request quotes for services as related to the EDA or City owned properties on Block 34. These are located at 100, 112 and 130 East Broadway and it may also include the DW and the parking lots that the City owns on the block. These include a proposal for redevelopment TIF district qualification and looking at how those properties would qualify for redevelopment. The next is the building environmental analysis. Schumann noted that there are a couple of pieces to that proposal. The first is a hazardous materials survey; going into those buildings and determining what classified hazardous materials within the building may need to be removed in a certain manner prior to demolition. The next component of that proposal includes demolition specifications and demolition management. WSB has put together information on how they would prepare the specifications for demolition because if there are hazardous materials inside of the building they have to be dealt with in a certain way and Schumann noted that we certainly want the expertise and understanding how the specifications have to be written and how they have to be bid in order to deal with hazardous material as well as a number of other considerations on that block. The last component is the actual management of the demolition project and Schumann again noted that we want the expertise of dealing with the onsite demolition with making sure all the appropriate paperwork is filled out with the appropriate agencies. Schumann said that the next item is the structural analysis. There are some variables occurring on this block. The only building that has to be demolished relative to the improvement project on TH 25 and CSAH 75 is the building directly at the corner. The 3 EDA Regular Meeting Minutes: 10/08/14 EDA may choose once these analyses are completed to only take that building down for a variety of reasons. Schumann said it is important to understand more about the structure of these buildings and what the impact is to take down one or more of these buildings. The structural proposal looks at those variables and makes recommendations accordingly. Brian Stumpf asked for details on the cost summary. Schumann explained that $100,000 is the estimated cost for demolition assuming three buildings. The structural analysis was quoted as two components with Phase I and Phase II. The Environmental includes the Phase I Document and a Hazardous Materials Study. Schumann noted that 10% was added for contingency bringing the subtotal to just under $170,000, and then added administrative costs for legal, financial consulting, etc. for an additional $17,000. The estimated total for redevelopment preparation services for Block 34 is $187,000. Schumann indicated that the Resolution allows for financing up to $170,000 for site preparation and up to $17,000 for administrative costs associated with the TIF District. Schumann said it should be noted for public record that the quote received from WSB & Associates in the agenda packet actually has some incorrect information on demolition oversight on the addresses so the correct version has been provided to the EDA. Schumann stated that if the EDA would like the contract to further be revised to clarify that the estimate is for all three buildings that can be done. Tom Perrault asked why the Phase I Environmental Assessment includes the DMV building. Schumann indicated that when the environmental consultant is out it's more efficient for them to do the analyses while they are there with the idea that at some point you may choose to relocate to facilitate some type of redevelopment on the DMV parcel. Schumann said she did ask about expiration on those studies and said she believes the answer was that there is no expiration on the Phase I Study but she will clarify that. Schumann noted that on each of the contracts she is going to request a revision on the signature page to include both the EDA President and the EDA Executive Director. TRACY HINZ MOVED TO ADOPT RESOLUTION 2014 -095 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH PROPOSED BLOCK 34 TAX INCREMENT FINANCING DISTRICT. MOTION SECONDED BY BRIAN STUMPF. MOT ION CARRIED UNANIMOUSLY, 5 -0. BILL TAPPER MOVED TO ACCEPT DECISIONS #2, #3, AND #4 AS OUTLINED IN THE AGENDA PACKETS PROVIDED TO THE EDA FROM ANGELA SCHUMANN. MOTION SECONDED BY BILL DEMEULES. MOTION CARRIED UNANIMOUSLY, 5 -0. 4 EDA Regular Meeting Minutes: 10/08/14 7. Consideration of the Director's Report. Angela Schumann said that she wanted to add that the Industry of the Year was selected at the IEDC Meeting. The EDA is a co -host of the event that is occurring on October 22, from 7 -9 p.m. Schumann said the EDA members will all be receiving a mailed invitation. The IEDC selected Xcel Energy as the 2014 Industry of the Year and congratulations to them. Schumann also congratulated the other nominees, WSI Industries and Bondhus Corporation. Schumann said she had the opportunity to tour all of those industries with the IEDC; the IEDC will continue to promote those businesses as part of the ongoing appreciation of manufacturers. Schumann noted that October is Minnesota Manufacturers Month. Bill Demeules inquired about the Market Matching Update and Schumann said that WSB will be going to the City Council on October 27th so the EDA will receive a link to the pod cast of that meeting but may also attend as well. . Bill Tapper asked about the abbreviations on the Market Matching Report. Schumann said that the WCEDP is the Wright County Economic Development Partnership and the EDAM is the Economic Development Association of Minnesota. Schumann said that she is not sure what all of the abbreviations are and she will ask WSB in the future not to use acronyms. 9. Adiourn. BILL TAPPER MOVED TO ADJOURN THE MEETING. MOTION SECONDED BY BRIAN STUMPF. MOTION CARRIED UNANIMOUSLY, 5 -0. Recorder: Creea Administrative Assistant Date Approved: Attest:' D epresentative F