EDA Minutes 08-15-2011MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Monday, August 15,2011 - 6:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Tracy Hinz, Matt Frie,
and Council Members Tom Perrault and Brian Stumpf
Staff: Executive Director Megan Barnett- Livgard, Finance Director Tom Kelly
1. Call to Order
Bill Demeules called the meeting to order at 6 p.m.
2. Approve Meeting Minutes
a) July 13, 2011
TRACY HINZ MOVED TO APPROVE THE JULY 13, 2011 EDA MINUTES.
MOTION WAS SECONDED BY BILL TAPPER. MOTION CARRIED 5 -0. (Brian
Stumpf abstained.)
3. Approval of EDA Invoices
Staff clarified expenses on both the Kennedy & Graven and the Campbell & Knutson
invoices and confirmed that all pertained to projects previously approved by the EDA.
BILL DEMEULES MOVED TO APPROVE THE EDA INVOICES. MOTION WAS
SECONDED BY BILL TAPPER. MOTION CARRIED 6 -0.
4. Consideration for adding additional agenda items
a) EDA Property Maintenance
5. Public Hearing: Consideration of adopting Resolutions #2011 -73 and #2011 -74
approving a purchase and redevelopment contract between the EDA and Suburban
Manufacturing, the Business Subsidy Agreement, the conveyance of land and an
Interfund Loan
Bill Demeules opened the public hearing.
The public hearing is associated with the modification of the Redevelopment Plan of the
Central Monticello Redevelopment Project No. 1, the establishment of TIF District No.
1 -39 as an Economic Development District to assist in the write -down of land and
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infrastructure costs to Suburban Manufacturing, and approval of the TIF Plan. A proposed
interfund loan would assist in writing down the purchase. The EDA would repay the loan
over nine years with funds from the newly established TIF District.
Staff outlined the status of the purchase and redevelopment contract and asked that the
EDA continue the public hearing to September to provide additional time for negotiations.
There were some questions and discussion about the valuation of the property as well as the
cost per square foot.
Brad Barger stated that Suburban Manufacturing would like to begin construction by
September 15th and move into their new 39,000 square foot facility in the Monticello
Business Center by the end of the year. The proposed project is expected to bring 12 -14
new full -time permanent jobs to Monticello.
BRIAN STUMPF MOVED TO CONTINUE THE PUBLIC HEARING UNTIL
SEPTEMBER. MOTION WAS SECONDED BY TRACY HINZ. MOTION CARRIED
6 -0.
Staff indicated that the issue would be brought before the city council for review next
week to keep the project moving forward.
Item #6 was moved to the end of the agenda.
6. Consideration of recommending the City Council appoint a candidate to fill the EDA
open seat
The EDA briefly discussed the interviews for the open position and candidate
qualifications.
BRIAN STUMPF MOVED TO RECOMMEND THE CITY COUNCIL APPOINT
BRUCE HAMMOND TO FILL THE OPEN SEAT ON THE EDA BOARD. MOTION
WAS SECONDED BY BILL DEMEULES. MOTION CARRIED 6 -0.
7. Consideration of requesting the City Council call for a public hearing to amend the
budget plan for TIF District 1 -5
TIF District 1 -5 is due to expire at the end of 2012. Any unspent fund balance would be
returned to the County. Staff indicated that there are no projects within that district on
which to spend the remaining balance. The City is required to go through the budget
amendment process to spend funds outside of TIF district boundary lines. Staff asked that
the City Council call for a public hearing to amend the budget plan for TIF District 1 -5.
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The EDA had intended to utilize surplus TIF District 1 -5 funds for the purchase of the
Landmark II property. There was considerable disagreement as to purchase price. The City
Council and the EDA held a special joint meeting on August 10, 2011 to discuss the value
of the Landmark II property as a component of the Embracing Downtown Plan. Staff was
directed to obtain a current appraisal of the property prior to further negotiation with the
property owner. There was some discussion about the value of obtaining an appraisal. Staff
pointed out that it would provide a baseline for further discussion about the value of the
property.
TRACY HINZ MOVED TO ADOPT RESOLUTION #2011 -75 REQUESTING THAT
THE CITY COUNCIL CALL FOR A PUBLIC HEARING ON THE PROPOSED
ADOPTION OF A MODIFICATION TO TIF DISTRICT 1 -5. MOTION WAS
SECONDED BY BILL TAPPER. MOTION CARRIED 6 -0.
BRIAN STUMPF MOVED TO RECOMMEND THAT THE EDA AUTHORIZE
SPENDING $500 FOR AN APPRAISAL OF THE LANDMARK II PROPERTY.
MOTION WAS SECONDED BY BILL DEMEULES. MOTION CARRIED 4 -2. (Bill
Tapper and Matt Frie were opposed.)
Bill Tapper recommended that the EDA meet with the McComb Group to determine
direction on downtown development priorities as well as some indication of the anticipated
cost of purchasing properties in that area.
8. Consideration of approving initiatives utilizing surplus TIF from District 1 -22
Based on discussions resulting from the special joint meeting of the EDA and City Council
on August 10, 2011, the EDA was asked to authorize negotiations with key property
owners within the downtown to assist in redevelopment opportunities and improvements to
the intersection of Highway 25 and 75. Property owners on these comers had previously
indicated an interest in selling in response to the land inquiry form.
Staff stressed the importance of engaging the services of a relocation specialist in order to
maintain compliance with state and federal regulations.
BILL TAPPER MOVED TO AUTHORIZE THAT $5,000 BE SPENT TO ENGAGE
THE SERVICES OF DAN WILSON TO ASSIST WITH AN APPRAISAL AND
INITIAL DISCUSSIONS WITH LANDOWNERS FOR PURCHASING KEY PARCELS
IN DOWNTOWN MONTICELLO. MOTION WAS SECONDED BY BRIAN STUMPF.
MOTION CARRIED 6 -0.
9. Consideration of items added to the agenda
a) EDA Property Maintenance
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Economic Development Authority Minutes 8/15/11
Tom Perrault asked about whether or not maintenance fees for EDA properties were
being paid from the EDA budget. Tom Kelly indicated that when Public Works staff or
contractors charge maintenance fees to the EDA properties they are paid through the
EDA budget.
b) Meeting with Jim McComb
TRACY HINZ MOVED THAT STAFF ARRANGE FOR CONSULTANT JIM
MCCOMB TO ATTEND A SPECIAL JOINT EDA AND CITY COUNCIL
MEETING IN SEPTEMBER. MOTION WAS SECONDED BY BILL TAPPER.
MOTION CARRIED 6 -0.
10. Director Report
The Director Report was included as part of the agenda packet submitted to the EDA.
11. Adjournment
MATT FRIE MOVED TO ADJOURN THE MEETING AT 7:04 PM. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder:
Approved:
Attest:
Kerry T. Burri
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