Loading...
EDA Minutes 05-12-2010EDA MEETING MINUTES Wednesday, May 12, 2010 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners Present: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill Fair, Tracy Hinz and Council Members Tom Perrault and Brian Stumpf Staff Present: Executive Director Megan Barnett, Finance Director Tom Kelly 1. Call to order. 2. Approve Meeting Minutes: a. February 10, 2010 b. March 10, 2010 c. April 14, 2010 Perrault pointed out a couple of typographical errors in the February 10, 2010 minutes. He also questioned a motion related to the TIF District 1 -2. Barnett noted that it was accurate as written. MOTION BY PERRAULT TO APPROVE FEBRUARY 10, 2010 MINUTES AS AMENDED, SECONDED BY TAPPER, MOTION CARRIED 6 -0 WITH STUMPF ABSTAINING. Demeules pointed out the misspelling of his last name in the March minutes. MOTION BY FAIR TO APPROVE MARCH 10, 2010 MINUTES AS AMENDED, SECONDED BY TAPPER, MOTION CARRIED 7 -0. Demeules pointed out the misspelling of his last name in the April minutes. MOTION BY FAIR TO APPROVE APRIL 14, 2010 MINUTES AS AMENDED, SECONDED BY STUMPF, MOTION CARRIED 7 -0. 3. Consideration of additional agenda items: None. 4. Approval of EDA Invoices: Tapper asked if the EDA had authorized the expenditure of funds by attorney as they relate to EDA and TIF matters. He indicated that he was confused about how these things were being reviewed. He stated that it was his understanding that the EDA had hired an expert to review the TIF Districts and that a $20,000 project had been completed. He wondered why it appeared that the EDA would be looking for a second opinion on what they did from the attorneys who are in turn consulting with the competitor who bid the first job. Barnett stated that it isn't a competitor situation because Ehlers is the EDA's approved TIF consultant. Northland only did the TIF management plan on a project basis. Ehlers provided the day -to -day TIF analysis and review with staff. Some of the expenditures involved are related to the Dahlheimcr project, some are in follow -up to 1 -22, some have been in follow -up to 2, 5, and 6 to figure out how to further expend that money as a follow -up for the TIF management plan. She noted that it is all related to, and has been accounted against, administrative costs which are allowed per law in each TIF district. Demeules noted that the Kennedy and Graven bill is from January and wondered why it has taken so long. Barnett suggested that they might be behind in their invoicing. Tapper asked if all this was necessary. Barnett stated that it is necessary if the EDA wanted to expend funds within 2, 5, and 6 and 1 -22 as follow -up to the TIF management plan recommendation. If the EDA did not ask Ehlers and Kennedy & Graven to look at that detail they would be unable to discuss the land inquiry forms received. Barnett pointed out that future fund utilization would depend on the EDA decisions tonight and in the future. She reiterated that each TIF district is allowed an allotted 20% administrative fee. These bills are not coming out of the Economic Development Fund or the EDA General Fund. Barnett indicated that the property tax statement was related to the Garden Center and included special assessments for utilities. It was determined to be an obligation that was incurred before the EDA bought the property. Perrault said that there are a few more years left on that assessment. MOTION BY FAIR TO APPROVE INVOICES, SECONDED BY PERRAULT, MOTION CARRIED. 7 -0. 5. Consideration of approving a Preliminary Development Agreement: Barnett presented the preliminary development agreement with the Rocky Mountain Group also known as Dahlheimer's Beverage. This is the first agreement that will transpire into the final development agreement and the TIF management plan. She noted that this type of agreement is standard and has been done in the past for other TIF districts. This agreement states that the EDA, the City and Dahlheimers would work together to come up with a TIF subsidy and not sell the property 6.19 acres immediately adjacent to their property to anyone else. This contract would be good for six months or until October of this year. Dahlheimers has signed the agreement and deposited the additional $5,000. Ehlers will go over the TIF subsidy with the EDA in June to finalize the exact packaging. Barnett stated that if an agreement hasn't been reached by October, the EDA will have a discussion with Dahlheimers to determine if they are still interested in the 6.19 acres. If any requests have been received for that parcel, the EDA will have an open conversation with Dahlheimers at that time. This agreement would allow the EDA to go on to next step even if the building has not been sold by October. The final document would be in place and the EDA would be able to close on a portion of the land, if not all of it, even before they close on the Anoka land. All would be in the final document prior to Dahlheimers selling the Anoka property. Tapper confirmed that this is a mechanism for holding land while completing negotiations on how it will be financed. MOTION BY TAPPER TO APPROVE A PRELIMINARY DEVELOPMENT AGREEMENT, SECONDED BY FAIR, MOTION CARRIED 7 -0. 6. Marketing Update: Barnett will be meeting with a local business to launch an economic development website which would be more specific to site selectors. The site would be easy to navigate and provide quick demographic information and industrial and commercial land listings. Barnett hoped to be starting this effort in the next month. She will check into adding links from other websites to Monticello's EDA site. The EDA will be a corporate sponsor at the real estate land conference on Friday. Barnett asked the EDA for approval to move forward with CVS Outdoor to do a couple of billboards for downtown Minneapolis to get more marketing exposure for Monticello. The tagline would be Monticello has the Pulse of Business Future Today. She pointed out that the artwork was an illustration and details about Monticello's amenities as well as contact and website information could be added later. Barnett explained that, instead of doing a billboard on the highway, this approach would involve smaller site advertising at places where business executives come and go in the downtown area. She also pointed out that it would be cheaper than freeway advertising. There was discussion about what this effort would involve, how effective it might be at marketing the city, and whether or not it was the best use of the $4750. Barnett stated that the EDA had done a freeway billboard in the past and that the idea was to branch out of the Monticello area. Stumpf wondered if getting the message out to the airwaves might be an alternate approach. Barnett summarized that it didn't seem that the EDA was comfortable with this effort so she would look at other marketing options and bring a recommendation back to the next meeting. MOTION BY STUMPF TO APPROVE ALTERNATIVE C TO TABLE THE CVS OUTDOOR, SECONDED BY PERRAULT, MOTION CARRIED. 7 -0. Barnett indicated that she didn't know the exact cost yet on the proposed economic development website but that she'd obtain that information and bring it back to the EDA for review. 7. Director Report: None. Barnett will email a flyer on the Wright County Economic Development Partnership to the EDA members. 8. Adjournment: MOTION BY TAPPER TO ADJOURN, SECONDED BY PERRAULT, MOTION CARRIED. 7 -0. The meeting adjourned at 6:26 p.m. Bill Demeules, President