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EDA Minutes 12-10-2014MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 10, 2014, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Tom Perrault Absent: Brian Stumpf Others: Angela Schumann, Wayne Oberg, Jeff O'Neill, Shibani Bisson (WSB) 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approval of Meeting Minutes BILL TAPPER MOVED TO APPROVE THE NOVEMBER 12, 2014 REGULAR MEET iING MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 4. Consideration of additional agenda items Property Insurance Coverage (Demeules) 5. Consideration of approving payment of bills Tom Perrault asked about an expense related to spray paint on an Ace Hardware invoice. Angela Schumann agreed to review the issue to determine if it had been coded correctly. BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH NOVEMBER 2014. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 4 -0. 6. Consideration of approving a Letter of Support for Submittal of Local Road Improvement Program Grant Application for Intersection Improvements to TH 25 and 7t' Street Shibani Bisson asked that the EDA approve a letter of support as part of a grant application to be submitted to MnDOT's Local Road Improvement Program. The program provides funding assistance to cities, counties and townships for construction projects with regional significance. Bisson pointed out that the TH 25 and 7th Street intersection improvement project is a good candidate for the grant due to deficiencies related to the current operation of the EDA Minutes: 12/10/14 intersection and the vehicle crash history at the intersection. She noted that this project addresses grant criteria by benefitting the local system (and economic vitality of the city) by moving vehicles through the intersection more quickly. Bisson described improvements involving adding a right turn lane on westbound 7t' Street at TH 25 and providing left turn flashing yellow arrow traffic signal phasing for east and westbound 7' Street. She noted that these projects are identified in the 2008 Transportation Plan and the Capital Improvement Plan and are planned for construction in 2016. The total estimated project cost for these improvements is $350,000 and the estimated eligible grant funding for construction costs is approximately $230,000. Jeff O'Neill asked Bisson to comment on a recent Council request that staff consider improving the slope along the TH 25 next to Hillside Cemetery. Bisson indicated that the request isn't eligible to be included as part of the grant application because it does not address a transportation deficiency. Slope improvement could, however, be included as a City cost with the 2016 core street reconstruction project. Bisson indicated that there had also been some discussion about creating an acceleration lane turning right onto TH 25 instead of turning into the through lane. She indicated that staff would determine if an acceleration lane might be justified and review the matter with MnDOT. If so, she noted, there may be an opportunity to include the cost of a retaining wall to mitigate that slope along east side of TH 25. Bisson pointed out that the grant program is competitive and funded only every 2 years. There is no funding match required. Applications are more highly weighted if local participation is demonstrated. The grant application is due January 2nd, 2015. Grants will be awarded in March. Tom Perrault asked how much these potential changes might impact the Perkins property. Bisson said that staff would review the issue. TRACY HINZ MOVED TO APPROVE A LETTER OF SUPPORT FOR SUBMITTAL OF LOCAL ROAD IMPROVEMENT PROGRAM GRANT APPLICATION FOR INTERSECTION IMPROVEMENTS TO TH 25 AND 7TH STREET. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 4 -0. 7. Consideration to review and accept the work product reports for environmental analysis, structural analysis, and redevelopment finding analysis for properties on Block 34 and to authorize preparation of demolition specifications for 100 East Broadway Angela Schumann asked that the EDA accept the work products authorized in October 2014. These included environmental, structural, and redevelopment finding analyses prepared to provide background information and supporting data in order to facilitate future decisions related to city and EDA owned properties on Block 34. Schumann also EDA Minutes: 12/10/14 asked that the EDA authorize the preparation of demolition specifications for the property located at 100 E. Broadway. She briefly highlighted the findings of the reports presented at the Block 34 workshop held just prior to the regular EDA meeting and noted that the commissioners had an opportunity to ask questions of the consultants. Schumann summarized that WSB completed a Phase 1 Environmental Site Assessment for nine parcels owned by the City and EDA on Block 34. The Phase 1 study included recommendations related to the future completion of a Phase II Environmental Site Assessment and soil and water sampling prior to future redevelopment. She noted that WSB had also completed hazardous building material surveys for the four buildings located at 100, 112 and 130 East Broadway and 119 Yd Street East. The Hazardous Materials reports provided necessary research and recommendations for the preparation of the demolition specifications. Schumann indicated that Meyer Borgman Johnson had completed the structural analysis of the buildings located at 100, 112 and 130 East Broadway. The evaluation included recommendations pertaining to the potential future demolition of each of the buildings, tlieir impact on one another and the potential for mitigating the impact on 118 E. Broadway and any resulting impact on the two municipal wells on the property. Schumann also stated that LHB Corporation had prepared a redevelopment findings analysis of buildings located at 100, 112 and 130 East Broadway and 119 3rd Street East which determined that the three East Broadway properties noted meet qualifications should a future redevelopment tax increment financing district be created. Schumann pointed out that WSB had prepared a preliminary schedule for intersection improvements at TH 25 and CSAH 75 which requires that the 100 East Broadway building be removed by June 1, 2015. She indicated that a significant portion of the western -most parcel (of two) on which 100 East Broadway sits would become right of way for a right turn lane for the intersection. Schumann explained that the EDA would convey ownership of a certain legal description to MnDOT for use as right -of -way but would retain ownership of the remaining parcel. Bill Tapper asked about tearing down only the portion of the building necessary for the road improvement in an effort to preserve the three year window for redevelopment. Schumann noted the potential for concerns related to structural integrity and aesthetics. She also confirmed that it is the demolition activity itself would establish the start of the three year window within which the EDA would be required to create a redevelopment district. Schumann pointed out that the EDA would not be asked to formally adopt a letter of finding until proceeding with demolition for each building. She emphasized that there was no need to remove the other buildings at this time because a redevelopment project had not been proposed. EDA Minutes: 12/10/14 Decision 1: Accept Work Products BILL TAPPER MOVED TO ACCEPT THE WORK PRODUCT REPORTS FOR ENVIRONMENTAL ANALYSIS, STRUCTURAL ANALYSIS, AND REDEVELOPMENT FINDING ANALYSIS FOR PROPERTIES ON BLOCK 34. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 4 -0. Decision 2: Preparation of Demolition Specifications for 100 East Broadway BILL TAPPER MOVED TO AUTHORIZE PREPARATION OF DEMOLITION SPECIFICATIONS FOR 100 EAST BROADWAY. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 8. Consideration to review and approve the EDA General Fund budget for 2015 Finance Director Wayne Oberg explained that the $116,150 EDA budget adopted for 2015 includes a $94,900 transfer from the City General Fund to the EDA General Fund. This transfer represents a 2% increase over the 2014 transfer. Oberg noted, however, that thus far the EDA had spent only approximately $78,714 of the amount transferred for the 2014 budget. Angela Schumann pointed out that invoices related to the cost of consultant reports and workshop presentations would also be included as expenditures from the 2014 budget. Tracy Hinz asked what might have contributed to the budget surplus. Oberg suggested that proposed general operating miscellaneous expenditures often change as a result of reallocating other expenditures. He noted that miscellaneous professional services, the line item utilized to pay for Market Matching services provided by WSB, was on target but that the EDA had not spent as much as had been allocated to administrative staff support. Schumann pointed out that the EDA had reduced expenditures associated with membership in several professional economic development organizations and marketing because access to such resources has been provided as part of the Market Matching contract. She suggested that the EDA may wish to utilize existing funds budgeted within the marketing line item to ramp up additional marketing efforts as part of a future workplan, Jeff O'Neill indicated that staff had been looking into working with a firm that produces industrial and commercial oriented websites in an effort to identify a viable online option for actively marketing Monticello. He suggested that there may be some capacity within the EDA marketing budget to pay the $9,000 in subscription service cost. Oberg calculated that it had cost approximately $10,800 in TIF- related expenses to insure three EDA -owned properties (100 E. Broadway, 112 E. Broadway and the "Zoo "). He said that he didn't see the need for the EDA to carry property damage insurance on buildings planned for eventual demolition and confirmed that the properties would be covered under the City's liability policy if the EDA were to adjust its insurance coverage policy. Bill Demeules asked about GMEF loans. Schumann reported that at this time, all loans are 4 EDA Minutes: 12/10/14 paid and complete or current. Hinz confirmed that surplus in the EDA General Fund account would not be returned to the City's General Fund budget. BILL TAPPER MOVED TO ADOPT THE 2015 PROPOSED BUDGET AS PRESENTED. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 4 -0. 9. Consideration of recommendation regarding EDA Vacant Positions and 2015 EDA Appointments Schumann asked that the EDA set a date and time for interviewing candidates for the two open positions on the EDA. The position previously held by Rod Dragsten is a full six year term as it was to have expired at the end of 2014. The term for the open position previously held by Matt Frie will expire at the end of 2017. Schumann noted that the EDA had received two applications. Tom Perrault suggested conducting interviews prior to the next regular EDA meeting so that the City Council could ratify the appointments and the new commissioners would be eligible to serve on the EDA on January 14th, 2015. BILL TAPPER MOVED TO SET AN EDA SPECIAL MEETING ON JANUARY 7TH° 2015 AT SAM FOR THE PURPOSE OF INTERVIEWING AND RECOMMENDING APPOINTMENTS FOR OPEN POSITIONS ON THE EDA. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 10. Consideration of the Director's Report EDA Workplan — Schumann recommended conducting orientation and goalsetting prior to developing a 2015 EDA workplan given that two new EDA commissioners and a new Council liaison would soon be appointed. O'Neill suggested utilizing EDA input as a starting point for goalsetting with the City Council early in the year. 11. Added items Property Insurance Coverage (Demeules) - Demeules directed staff to bring forward any recommendations for changes to EDA property insurance coverage for consideration. 12. Adjourn BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:51 PM. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 4 -0. Recorder: Kerry Burri Approved: February r 2015 Attest: EDA res ntative