EDA Minutes 08-08-2012MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, August 8, 2012 - 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy
Hinz, Matt Frie, Rod Dragsten and Council Members Tom Perrault and Brian Stumpf
Staff: Angela Schumann, Community Development Director, Executive Director Jeff O'Neill
Call to Order
Bill Demeules called the meeting to order at 6 p.m.
2. Approve Meeting Minutes
TRACY HINZ MOVED TO APPROVE THE JULY 11, 2012 EDA MINUTES AS
AMENDED. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 5 -0. (Bill
Tapper and Brian Stumpf abstained.)
3. Consideration of additional agenda items
a) Financing Options to Buy Property
4. Consideration of appointing Jeff O'Neill as the interim EDA Executive Director and
Secretary
With the resignation of Economic Development Director Megan Barnett - Livgard, the
EDA was asked to appoint City Administrator Jeff O'Neill as the interim EDA Executive
Director and as EDA Secretary. The interim appointment would allow the EDA to
continue with any required certification and signatures on agreements, invoices or other
documentation in progress. O'Neill pointed out that managing the transition would be a
team effort with Angela Schumann and new Finance Director Wayne Oberg. He said that
staff plan to inventory the workload for the Economic Development Department and has
identified a strategy for distributing high priority tasks on a short tern basis. Staff will also
review the scope of the position and duties relative to city objectives and take the analysis
to the Personnel Committee for a recommendation for hiring.
BRIAN STUMPF MOVED TO APPOINT JEFF O'NEILL AS THE INTERIM EDA
EXECUTIVE DIRECTOR AND SECRETARY. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED 7 -0.
5. Consideration of recommending adoption of Resolution #2012 -065 decertifying TIF
District 1 -19, Mississippi Shores
Staff requested that the EDA table action on this item until its September meeting in order
to allow time to provide the EDA with updated information regarding excess increment
within the district and any related options for EDA consideration. TIF District 1 -19 is due
for decertification by the end of 2012.
BILL TAPPER MOVED TO TABLE RESOLUTION #2012 -065 DECERTIFYING TIF
DISTRICT 1 -19, MISSISSIPPI SHORES, FOR FUTHER DISCUSSION AND
RESEARCH. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0.
6. Consideration of authorizing a $2,200 dollar contribution to the Initiative
Foundation
The Initiative Foundation, a Central Minnesota community foundation providing financial
assistance to the region's businesses and non - profits, requested that the Monticello EDA
contribute $2,200 to the organization in 2012. The EDA had authorized a $2,000
contribution in both 2010 and in 2011 and had realized some positive dividends for the
community as previous recipient of a $5,000 grant for the BR &E effort. The increase in the
requested contribution is based on updated per capita census data.
Brian Stumpf indicated that he had learned more about the work of the Initiative
Foundation and was impressed with its efforts. Tom Perrault noted that he would vote for
this contribution because it involved matching funds from the McKnight Foundation; not
all of the Initiative Foundation activities are Economic Development. Bill Tapper stated
that, although he supported this contribution, he would be abstaining as he had been a past
beneficiary of the Rind.
BRIAN STUMPF MOVED TO APPROVE CONTRIBUTING $2,200 OF THE 2012
EDA GENERAL FUND TO THE INITIATIVE FOUNDATION. MATT FRIE
SECONDED THE MOTION. MOTION CARRIED 6 -0. (Bill Tapper abstained.)
7. Consideration of Extending the Preliminary Development Agreement Between the
Monticello EDA and Rocky Mountain Group LLC
The EDA had approved entering into a Preliminary Development Agreement with
Dahlheimer Distribution (Rocky Mountain Group) in 2009 and had approved two
extensions to the agreement since that time. Their eventual purchase of Outlot C will allow
Dahlheimer Distribution to expand their existing facility by approximately 50,000- 60,000
square feet. In order to move forward with their expansion plans, Dahlheimer must sell an
existing building they own in the City of Ramsey. Although the applicant continues to
receive inquires from potential buyers, there is no signed purchase agreement to date.
BILL TAPPER MOVED TO APPROVE A ONE -YEAR EXTENSION TO THE
PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN ROCKY MOUNTAIN
GROUP (DAHLHEIMER) AND THE MONTICELLO EDA. BRIAN STUMPF
SECONDED THE MOTION. MOTION CARRIED 7 -0.
8. Consideration of authorizing Northland Securities to complete a TIF District 1 -22
Knockdown Analysis
The updated TIF Management Plan, adopted by the EDA in Jame of 2012, recommended a
series of actions related to TIE District 1 -22 in order to understand the limits and ability of
the EDA to utilize resources within the district. The first step recommended by the
Management Plan is the verification of the knockdown status of parcels within the District.
The EDA was asked to authorize Northland Securities to complete an analysis of TIF 1 -22.
The anticipated cost of the analysis is $4,160, which could be paid as an administrative fee
through TIF 1 -22. Completing the analysis would help articulate usable surplus funds and
allow the EDA to move toward completion of the other steps identified in the Management
Plan. City staff will meet with Northland Securities to review the scope and the pacing of
the district.
Rod Dragsten asked if this type of analysis had been done before. Bill Demeules indicated
that it had not been conducted on a specific district and pointed out that TIF 1 -22 is the
largest and most complex district.
Tracy Hinz asked how the EDA would proceed if they were to choose not do the analysis.
Jeff O'Neill suggested that conducting the analysis would provide for better planning and
likely prevent potential auditing issues.
Tom Perrault suggested that the date in the agreement should be revised and the word
"assigned" had been misspelled and should be corrected.
TRACY HINZ MOVED TO APPROVE ENGAGING THE SERVICES OF
NORTHLAND SECURITIES TO COMPLETE A KNOCKDOWN ANALYSIS OF TIF
1 -22. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0.
9. Director's Report
Economic Development Director
Jeff O'Neill and Angela Schumann have stepped in to maintain momentum on the many
tasks with which Megan Barnett - Livgard had been involved as Economic Development
Director. She had accomplished much and will be missed. Staff will inventory the scope of
the position and determine a direction for staffing by year -end.
Downtown Leadership Group
Bill Tapper asked Steve Johnson to share the Downtown Leadership Group's input for
redevelopment spending. Johnson noted that TIF District 1 -5 is due to expire in 2012 with
$460,000 in fiords available and TIF District 1 -6 is due to expire in 2013 with $690,000 in
fiends available. TIF District 1 -22 is expected to have in excess of $1.8 million in funds
available subject to knockouts. He outlined the following Guidelines for Priorities for TIF
Funds /Downtown Revitalization for EDA consideration:
Priority #1: Stimulating private investment
Priority #2: Public infrastructure beneficial to downtown revitalization
Priority #3: Land acquisition/land banking in key development areas
The Downtown Leadership Group will submit a grant application to the Initiative Fund in
an effort to also involve the private sector in the process of obtaining financial support for
downtown redevelopment.
Matt Erie agreed with the Group's recommendation to expand and improve parks in the
downtown area. Tracy Hinz stated that the EDA appreciated the input.
Montgomery Farms Building
Tracy Hinz asked about the funding source for the purchase of the Montgomery Farms
building. Jeff O'Neill indicated that staff would follow up with clarification about funding.
Hinz also asked why the special joint EDA/City Council meeting had been cancelled.
O'Neill noted that there hadn't been enough information at that time to warrant a special
meeting.
He also reported that consultant Bruce Kimmel from Ehlers would be preparing a financial
analysis on the downtown catalyst project. Staff indicated that because there is no specific
developer at this time, the EDA and the City are driving the redevelopment of Block 34.
The analysis work would be paid for out of the EDA General Fund and TIF District 1 -22
funding.
Hinz also specifically asked about the outcome of the contract with the McComb Group.
Staff agreed to provide the EDA with a bullet point list of the scope of the contract and the
deliverables.
Fred's Auto
The EDA closed on the Culp property (Fred's Auto). Staff, attorneys, and Preferred Title
are working to clarify the legal description on the property to resolve title issues.
Information regarding the environmental study will be provided to the EDA when
available.
10. Consideration of items added to the allenda
a) Financing Options to Buy Property
Tom Perrault asked specifically about issues of right of first refusal and site control as
financing options in buying property. This would involve paying a fee to a property
owner to guarantee the purchase of land at a certain price for a certain period of time so
that a purchase agreement could quickly be executed should a developer become
interested in the property. Perrault noted that the EDA would need to answer for the
dollars spent for site control and confirmed that current owners would still be
responsible for paying taxes and maintenance on the property.
11. Adiourn
MATT FRIE MOVED TO ADJOURN THE MEETING AT 6:44 PM. BILL TAPPER
SECONDED THE MOTION. MOTION CARRIED 7 -0.
Recorder: Kerry T. Burri *
Approved: September 12, 2012
Attest:
Jeff O'Neill, xecutive Director
E