EDA Minutes 02-08-2012MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, February 8, 2012 - 6:00 p.m.
Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Tracy Hinz, Matt Frie,
and Council Member Tom Perrault
Commissioners Absent: Council Member Brian Stumpf
Staff: Executive Director Megan Bamett- 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) January 11, 2012 Special EDA Minutes — EDA Refresher
BILL TAPPER MOVED TO APPROVE THE JANUARY 11, 2012 SPECIAL EDA
MINUTES. MOTION WAS SECONDED BY TOM PERRAULT. MOTION
CARRIED 5 -0.
b) January 11, 2012 Regular EDA Minutes
MATT FRIE MOVED TO APPROVE THE JANUARY 11, 2012 REGULAR EDA
MINUTES. MOTION WAS SECONDED BY BILL TAPPER. MOTION CARRIED
5 -0.
3. Consideration of additional agenda items
a) Update on EDA vacancy
b) Upcoming public hearing on amending enabling resolution
4. Annual Meeting
a) Elect officers
BILL TAPPER MOVED TO NOMINATE BILL DEMEULES EDA PRESIDENT
FOR 2012. MOTION WAS SECONDED BY TOM PERRAULT. MOTION
CARRIED 5 -0.
TOM PERRAULT MOVED TO NOMINATE BILL TAPPER EDA VICE-
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PRESIDENT FOR 2012. MOTION WAS SECONDED BY BILL DEMEULES.
MOTION CARRIED 5 -0.
TOM PERRAULT MOVED TO NOMINATE TRACY HINZ EDA TREASURER
FOR 2012. MOTION WAS SECONDED BY BILL TAPPER. MOTION
CARRIED 5 -0.
C) Review fund balances
Finance Director Tom Kelly presented the annual estimated unaudited fund balance
report of all tax increment districts within the City and the balance of the EDA
General Fund. All of the TIF Districts were set up as pay -as- you -go obligations and
are cash flowing except for Districts 1 -36 (Dahlheimer), 1 -37 (Karlburger Foods),
and 1 -38 (Walker -In- Store). The report reflects the decertification of TIF District
1 -31 in 2011 and the addition of the TIF District 1 -39 (Suburban Manufacturing).
Staff will likely recommend that TIF District 1 -19 (Mississippi Shores) be
decertified at the end of 2012. TIF District 1 -5 (Construction #5) is legally required
to be decertified at the end of 2012. All GMEF loans are current. The GMEF loan
made to the Pet Hospital will begin repayment this year. One loan is ballooning this
year and one next year. An updated audit report will be prepared in August.
BILL TAPPER MOVED TO ACCEPT THE 2011 EDA FUND BALANCE
REPORT. MOTION WAS SECONDED BY TRACY HINZ. MOTION
CARRIED 5 -0.
d) Review Economic Development Annual Report
Staff presented the Economic Development Annual Report for review and input.
The report highlighted Monticello's many economic development
accomplishments of the past few years. The information will be distributed to the
IEDC and City Council and made available on the City's website, the Economic
Development website, and through the Chamber's resources. Bill Tapper
congratulated and thanked staff for all of the hard work.
5. Consideration of authorizing a continued contract with Dan Wilson to assist in
acquisition and relocation services for downtown Monticello
The previously approved $5,000 contract with Dan Wilson Development Services for
negotiations for property purchase on Block 34 downtown has been expended. Staff
recommended that the contract be extended so that the acquisition process may proceed
now that the scope of the purchase has expanded.
Tracy Hinz asked for clarification as to how Jim McComb's and Dan Wilson's roles differ
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in implementing the Embracing Downtown plan. Staff summarized that Jim McComb was
tasked with attracting businesses into the community and working out financing plans to
ensure that locating in the downtown will be a viable option for businesses. Dan Wilson is
a relocation specialist familiar with state and federal regulations involved in complex and
expensive redevelopment projects. Extending his contract will ensure a thorough and
productive negotiation process during property acquisition. The EDA and City Council
will review purchasing opportunities on a case -by -case basis.
Tracy Hinz asked if services would be itemized and which funding source would be used to
pay for the contract. Staff explained that Dan Wilson would bill the EDA on an actual time
and service basis. The contract would be front - funded with EDA General Funds and then
paid through the administrative line item once a new TIF district has been established.
Bill Demeules noted that the proposal is essentially a budget and, considering the amount
of work involved in the relocation process, he felt that the anticipated expenses would not
be out of line. Bill Tapper suggested that it would be beneficial for the process to move
forward without having to come back for EDA approval in increments.
BILL TAPPER MOVED TO APPROVE A $60,000 BUDGET TO CONTINUE
CONTRACTING WITH DAN WILSON DEVELOPMENT SERVICES FOR PHASE 1
OF THE DOWNTOWN REDEVELOPMENT PROPERTY ACQUISITION AND
RELOCATION PROCESS AND RECOMMENDED THAT THE CITY COUNCIL
RATIFY SAID MOTION. MOTION WAS SECONDED BY TRACY HINZ. MOTION
,.t. 1
6. Consideration of authorizing Northland Securities to complete an update to the 2009
TIF Management Plan
The EDA initiated a TIF Management project in 2009. The purpose of the project was to
complete an in -depth analysis of the City's TIF districts. The reference manual provided a
clear financial understanding of each individual TIF district. Staff continually references
information outlined in the TIF Management Plan. In the past three years several districts
have been decertified, surplus TIF balances have been utilized, and a new district has been
created. Staff recommended that the plan be updated every 2 -3 years depending on
changing financial circumstances.
MATT FRIE MOVED TO APPROVE ENGAGING THE SERVICES OF NORTHLAND
SECURITIES TO COMPLETE AN UPDATE TO THE 2009 TIF MANAGEMENT
PLAN AT A COST NOT TO EXCEED $5,500 INCLUDING REIMBURSABLE
EXPENSES. MOTION WAS SECONDED BY TRACY HINZ. MOTION CARRIED 5 -0.
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7. Consideration of authorizing staff to draft and publish a Monticello Branding and
Image Campaign Request Proposals (RFP) and allocating $30,000 of EDA funds
Staff recommended that Monticello initiate a City -wide branding and image campaign to
address the fragmented messages the City is giving residents, citizens, and businesses. The
branding campaign would create a unifying marketing strategy which includes all of
Monticello's amenities and enterprises. Branding is not just about a logo or tag line but
instead a way to define the community and take strategic steps to clearly communicate that
message. Statistics indicate that site selectors often choose a location for their next
business based on brand.
The cities of Lakeville, Eden Prairie and Elk River conducted a branding initiative and the
State of Minnesota is currently doing the same. Staff noted that Elk River retained its logo
but added the tag line, "Powered by Nature," which is being embraced by local businesses
as a way to market themselves in partnership with the City brand.
The RFP would solicit marketing firms to define research and implementation methods, a
tangible way to measure results, and a long -term communications strategy for the branding
campaign. Staff estimated that the survey component of this initiative could be completed
within 2 -4 months. A timeline would also be developed for realistic implementation of this
effort for this year and the next five years.
Funds are available in the EDA General Fund budget for this initiative. The City would
also apply for grants through the Initiative Foundation and the Blandin Foundation and
pursue private investment partnerships to implement this effort. Many City departments
have marketing budgets that might also be utilized as a potential funding resource.
Staff noted that the IEDC had recommended that the EDA further consider establishing a
city -wide branding campaign.
Bill Tapper spoke in support of the initiative.
Matt Frie agreed that Monticello would benefit from a new image to reflect all of the
changes in the community. He asked for clarification as to how the effort would move
forward.
Tracy Hinz suggested that the RFP include a component to get the community involved in
the effort.
Tom Perrault said that he thinks the EDA should wait and see what happens with the
economic development projects that are currently ongoing rather than spend a lot of money
on another effort at this time.
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Bill Demeules pointed out that branding goes hand in hand with attracting economic
development and suggested that developers do a web search when deciding where to locate
a business. He asked for clarification about plans to maintain the branding campaign.
TRACY HINZ MOVED TO RECOMMEND THE CITY COUNCIL AUTHORIZE CITY
STAFF TO CREATE AND PUBLISH A REQUEST FOR PROPOSAL (RFP)
INITIATING A BRANDING AND IMAGE CAMPAIGN, ALLOCATING $30,000
DOLLARS OF EDA FUNDS, AND DIRECTING STAFF TO RESEARCH GRANT
OPPORTUNITIES AND /OR PRIVATE INVESTOR PARTNERSHIPS. MOTION WAS
SECONDED BY BILL TAPPER. MOTION CARRIED 4 -1 WITH TOM PERRAULT
OPPOSED.
8. Director Report
Matt Frie asked about land inquiries. Staff stated that the City does not currently have
enough available shovel- ready, contiguous land to meet the needs of data centers looking
to locate in Minnesota and suggested that Monticello position itself to address current
economic development needs.
9. Consideration of items added to the agenda
a) Update on EDA vacancy- The previous EDA appointment was to fill the remaining
term for a member who had resigned. That appointment has expired and the
position is currently vacant. The vacancy will be advertised.
b) Upcoming public hearing on amending enabling resolution —The City Council
will hold a public hearing on February 27t1 to consider restructuring seat criteria for
EDA members. At a recent workshop, the Council decided to maintain the seven
member board but changed the criteria by which members are appointed. The
enabling resolution will be amended to state that members either be a resident,
property owner and/or business owner.
10. Adjournment
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:06 PM. MATT FRIE
SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder:
Approved:
Attest:
Kerry T. Burn
March 14, 2012