EDA Minutes 08-06-2013 (Special Meeting)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, August 6, 2013 — 6 p.m.
Mississippi Room, Monticello Community Center
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault,
Brian Stumpf
Absent: None
Others: Jeff O'Neill, Angela Schumann, Wayne Oberg
1. Call to Order
Bill Demeules called the special meeting to order at 6 p.m.
2. Purpose
The purpose of the special meeting is to begin discussions related to drafting the 2014 EDA
budget to be submitted to the City Council for review and funding and to be updated as to
the status of property for sale located at 413 West 4a' Street.
3. Budget Workshop
Wayne Oberg provided a brief overview of some of the changes to the way in which the
EDA budget has been developed.
In 2013, the City Council allocated $80,000 in City General Funds to provide an ongoing
revenue stream for the EDA General sub -fund. An additional $12,000 was required later in
the year to fund unplanned operating needs.
Oberg recommended that $92,000 be allocated to the EDA General sub -fund for 2014. He
indicated that $20,000 in non -TIF interest revenue and interfund loans would be the main
sources of revenue for the fund.
The EDA and the City Council were to initially share the $48,000 cost for the one -year
Market Matching contract with WSB for Economic Development Services. Staff
suggested instead that the full cost of the one year Economic Development Services
contract ($48,000) be charged to the EDA budget. The cost of management level staff time
in support of the EDA would continue to be charged to the City.
Jeff O'Neill noted that the City Council would be asked to consider approving a part time
communications position this year with the expectation that it become a full time position
in 2014. This position would initially focus on developing a marketing strategy for
FiberNet and coordinating the City's Economic Development message. O'Neill suggested
that the EDA pay $10,000 of the cost to staff that position. Oberg recommended instead
that the EDA be charged $8,000 or ten percent of the cost of two full time positions which
EDA Special Meeting: Minutes: 08/06/13
provide EDA administrative support.
There was discussion about past staffing costs and savings resulting from not filling the
Economic Development Director position. There was also some concern that the City may
be underestimating the need for such a position. O'Neill pointed out that staff workload, as
it relates to economic development, would be reconsidered after the term of the WSB
contract.
EDA members asked questions related to the budgeting for the marketing and professional
services line items. Staff noted that, because WSB already participates in many of the
broader marketing efforts, it may not be necessary for the City to maintain certain
memberships and sponsorships in 2014.
The EDA also cited as priority an interest in budgeting $50,000 for a housing study in an
effort to have relevant data with which to make decisions related to spending excess tax
increment on housing initiatives.
There was considerable discussion about potential uses for spending the approximately
$700,000 in TIF 1 -6 increment available. The following project options were considered
and, in some cases, first steps were discussed: redeveloping the Montgomery Farms
property, land acquisition on Block 34, the 4t' Street signal, and the 7t' Street extension.
Staff suggested that it may be useful to dedicate a separate workshop to this discussion.
The EDA would likely need to modify the plan for the district and reallocate the budgeted
amount to spend from TIF 1 -6.
Staff also provided the EDA an update related to the status of property located at 413 West
4t' Street. The City is in the process of negotiating a purchase agreement to sell the
property at county market value ($20,000) with a deferred special assessment subject to
removal upon building on the site. The City would reimburse itself for closing costs and
return the funds to the EDA.
4. Adiournment
TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 7:43 P.M.
BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0.
Recorder: Kerry Burri 1445
Approved: October 9, 2013 �V
Attest: � ,%�
Jeff Oh, City Administrator