EDA Minutes 03-09-2016101, -i p
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
'Vv7ednesday9 March 9th, 2016 - Mississippi Room, Monticello Community Center
Present: Bill Tapper, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart
Absent: Bill Demeules, Tracy Hinz
Others: Angela Schumann, Jeff O'Neill, Wayne Oberg, John Uphoff (WSB), Terri Sweet
(Monticello Times), Tim Hennagir (Monticello Times), Tammy Omdahl (Northland
Securities), Barry Fluth, Lisa Hiltz, Brad Hiltz
1. Call to Order
Bill Tapper called the meeting to order at 6:00 p.m.
2. Roll Call
Tapper called the roll. Bill Demeules and Tracy Hinz were not in attendance.
3. Consideration of Election of Officers
LLOYD HILGART MOVED TO APPOINT COMMISSIONER DEMEULES AS EDA
PRESIDENT, COMMISSIONER TAPPER AS EDA VICE - PRESIDENT, COMMISSIONER
JOHNSON AS EDA TREASURER AND COMMISSIONER DAVIDSON AS EDA
ASSISTANT TREASURER. STEVE JOHNSON SECONDED THE MOTION. MOTION
CARRIED 5 -0.
4. Approval of Minutes
STEVE JOHNSON MOVED TO APPROVE THE FEBRUARY 10TH, 2016 REGULAR EDA
MEETING MINUTES. TOM PERRAULT SECONDED THE MOTION AS CORRECTED.
MOTION CARRIED 4 -0. (Bill Tapper noted that he would not vote as he was not present at the
meeting.)
�. Consideration of adding items to the agenda None
6. Consideration of approving payment of bills
LLOYD HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH FEBRUARY
2016. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 5 -0.
7. Consideration of Market Matching report
WSB's John Uphoff provided an update related to Market Matching activities since December.
8. Consideration of marketing partnership with Monticello Times for 2016 Manufacturing
Magazine
EDA Agenda: 03/09/16
Angela Schumann summarized that the EDA had requested additional information and tabled
action related to a proposal to partner with the Monticello Times to develop a publication to
market Monticello to manufacturing industry prospects. She noted that 2015 marketing
expenditure information had been included in the agenda packet for consideration as requested.
Schumann recommended that the EDA appoint a task force to develop an overall marketing plan
and consider the proposal within that framework.
Monticello Times representatives Tim Hennigar and Terri Sweet provided details related to
options and estimated costs involved in developing and distributing the proposed publication.
Commissioner discussion included comments noting concern about the limited value in utilizing
printed materials as a primary marketing strategy. There were also some comments about the need
to update information as change occurs within the community and to clearly identify the target
market for distributing materials.
Hennigar pointed to the importance of telling Monticello's story and asked for the opportunity to
revise the proposal to emphasize an online publication in response to EDA feedback.
BILL TAPPER MOVED TO TABLE ACTION ON THIS ITEM PENDING PRESENTATION
OF A REVISED PROPOSAL. LLOYD HILGART SECONDED THE MOTION. MOTION
CARRIED 5 -0.
9. Consideration to Adopt Resolution EDA- 2016 -001 Authorizing Interfund Loan for Advance
of Certain Costs in Connection with Tax Increment Financing District No. 1 -34
Angela Schumann explained that the interfund loan resolution would authorize the advance of up
to $500,000 to pay the debt service and interest payable on bonds associated with TIF District 1-
34.
Northland Securities consultant Tammy Omdahl clarified that approving the interfund loan
resolution would create an opportunity for the EDA to capture tax increment to reimburse itself in
the future.
STEVE JOHNSON MOVED TO ADOPT RESOLUTION EDA- 2016 -001 AUTHORIZING
INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX
INCREMENT FINANCING DISTRICT NO. 1 -34. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED 5 -0.
Tom Perrault left the meeting to attend to other City business at this time.
10. Consideration to reauest that Citv Council call for a public hearing for Amendment to the
Contract for Private Redevelopment between Masters 5th Avenue and the Monticello EDA
and modification of Tax Increment Financing Plan for Tax Increment Financing District 1-
35
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EDA Agenda: 03/09/16
Angela Schumann provided background infonnation related to TIF District 1 -35 and
explained the purpose of the current request. She noted that the developer has submitted land
use applications related to a proposed 23 -unit residential apartment project on a single parcel
at the corner of Locust and 3rd Street and requested an opportunity to generate additional tax
increment within the district related to increased project costs. She indicated that staff had
worked with the EDA's attorney and financial consultant to outline the process associated
with the request to amend the contract and modify the TIF Plan and described the initial steps
involved in the process.
Property owner Barry Fluth, of Masters 5th Avenue, suggested that development trends
include a mix of residential, retail and commercial uses in the downtown area. He noted that
the apartment building is proposed to serve the 55 and older housing market.
Commissioners expressed support for adding a new residential housing option for seniors in
the downtown area and a willingness to allow ground floor units. Comments also noted
concerns related to the proposed intensity and scale of use on the parcel as well as concern
that the site plan layout does not align with the EDA's vision for downtown development. It
was also suggested that the EDA consider updating the Embracing Downtown report based on
current economic realities and evolving goals.
Fluth pointed out that the project design accommodates parking in excess of requirements for
the unit density proposed. He indicated that underground parking is not an option due to the
size of the parcel.
LLOYD HILGART MOVED TO REQUEST THAT CITY COUNCIL CALL FOR A
PUBLIC HEARING FOR AMENDMENT TO THE CONTRACT FOR PRIVATE
REDEVELOPMENT BETWEEN MASTERS 5TH AVENUE AND THE MONTICELLO
EDA AND MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT 1 -35. JIM DAVIDSON SECONDED THE
MOTION. MOTION FAILED 2 -2 WITH STEVE JOHNSON AND BILL TAPPER VOTING
IN OPPOSITION.
11. Consideration to approve a Financial Planning Agreement with Northland Securities for
2016 Update of the City /EDA TIF Management Plan
LLOYD HILGART MOVED TO APPROVE A FINANCIAL SERVICES AGREEMENT
WITH NORTHLAND SECURITIES FOR 2016 UPDATE OF THE CITY /EDA TIF
MANAGEMENT PLAN. STEVE JOHNSON SECONDED THE MOTION. MOTION
CARRIED 4 -0.
Bill Tapper noted that Bill Demeules had suggested that the update include a special emphasis
on TIF Districts which are not generating necessary increment.
12. Consideration of a recommendation on a monthly stipend for non - council members of
the Economic Development Authority
EDA Minutes: 3/09/16
STEVE JOHNSON MOVED TO RECOMMEND NO MONTHLY STIPEND FOR NON -
COUNCIL MEMBERS OF THE ECONOMIC DEVELOPMENT AUTHORITY. BILL
TAPPER SECONDED THE MOTION. MOTION CARRIED 4 -0.
13. Consideration of Director's Report
Angela Schumann reported on the status of the Economic Development Manager position and
environmental study findings involving Block 34 and 349 West Broadway.
Steve Johnson and Bill Tapper volunteered to participate in a subcommittee to provide staff
direction related to developing an overall EDA marketing plan.
14. Consideration of recessing to closed session to determine the asking price for real or
personal property to be sold by the City pursuant to Minnesota Statute 13D.05,
Subdivision 3(c)(1)
Bill Tapper stated that the EDA would be recessing to a closed session pursuant to Minnesota
Statute 13D.05, Subdivision 3(c)(1) to determine the asking price for real or personal property
to be sold by the EDA. Tapper stated that the subject properties are Outlot E and Outlot H,
Otter Creek Crossing, Outlot A, Otter Creek Crossing First Addition, and Outlot C, Otter
Creek Crossing Third Addition.
15. Adjourn closed session
STEVE JOHNSON MOVED TO ADJOURN THE CLOSED SESSION. JIM DAVIDSON
SECONDED THE MOTION. MOTION CARRIED 4 -0.
16. Adjourn
STEVE JOHNSON MOVED TO ADJOURN THE REGULAR MEETING 7:35 P.M. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED 4 -0.
Recorder: Kerry Burri
Approved: June 8, 201;
Attest:
Jfm Tares, Economic Development Manager
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