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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- Economic Development Authority Minutes 02/08/12 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 Economic Development Authority Minutes 02/08/12 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. Economic Development Authority Minutes 02/08/12 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. Economic Development Authority Minutes 02/08/12 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