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EDA Agenda Packet 05-12-2010EDA MEETING Wednesday, May 12, 2010 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill Fair, Tracy Hinz, and Council members Tom Perrault and Brian Stumpf Staff: Executive Director Megan Barnett, Finance Director Tom Kelly 1. Call to Order 2. Approve Meeting Minutes: a. February 10, 2010 b. March 10, 2010 c. April 14, 2010 3. Consideration of additional agenda items 4. Approval of EDA Invoices 5. Consideration of approving a Preliminary Development Agreement 6. Marketing Update 7. Director Report 8. Adjournment IMMEDIATELY PROCEED INTO CLOSED SESSION TO DISCUSS DOWNTOWN LAND INQUIRY FORMS EDA MEETING MINUTES Wednesday, February 10, 2010 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill Fair, and Council members Tom Perrault Commissioners Absent: Bob Viering and Brian Stumpf Staff: Executive Director Megan Barnett, Finance Director Tom Kelly, and City Administrator Jeff O'Neill 1. Call to Order: 2. Approve Minutes: MOTION BY TAPPER TO APPROVE JANUARY 13, 2010 MINUTES SECONDED BY PERRAULT WITH SPELLING AND GRAMMER CORRECTIONS. MOTION CARRIED. 5 -0 3. Consideration of additional agenda items: Economic Development Director stated Bob Viering submitted a letter of resignation. Staff will work with the HR Director to post for the EDA open seat. 4. Approval of EDA Invoices: MOTION BY TAPPER TO APPROVE INVOICES SECONDED BY FAIR, MOTION CARRIED. 5 -0. 5. Elect Officers for 2010. MOTION BY FAIR TO ELECT BILL DEMEULES AS PRESIDENT, DAN ERIE FOR VICE PRESIDENT, AND BILL TAPPER AS TREASURER SECONDED BY PERRAULT. MOTION CARRIED. 5 -0. 6. Review EDA Fund Balances. Finance Director Tom Kelly reviewed EDA fund balances including TIF and GMEF. Barnett stated the final fund balances would be reviewed by the EDA at their August meeting. MOTION BY FAIR SECONDED BY FRIE TO APPROVE PRELMINARY EDA FUND BALANCES AS PRESENTED. MOTION CARRIED. 5 -0. 7. Follow up discussion regarding TIF Districts 2, 5, 6 Director Barnett stated this agenda item is a follow up to the joint workshop held in January. Barnett stated the services of Kennedy and Graven were solicited to determine if fund balances from Districts 2, 5, and 6 could be utilized for purchasing real estate from downtown willing sellers. Barnett explained the memo included in the EDA packet reviews in detail the legal opinion regarding available funds in each district. To summarize District 2 contains about $52,000 available funds to utilize for land acquisition. Legal counsel is recommending against a budget amendment for TIF District 2 based on the upcoming required decertification date. Districts 5 and 6 have the flexibility to be amended in order to allow for additional land acquisition dollars. Barnett noted the Monticello Downtown Association submitted a letter regarding opinions on how to best utilize surplus TIF dollars. The letter states the Association would like to see dollars used for planning purposes for downtown first and then potentially look at purchasing real estate in the future. EDA members requested clarification on what would trigger a budget amendment. Finance Director clarified that if the EDA stays within the dollar amounts outlined by Kennedy and Graven in the applicable districts, budget amendments are not required. However, if the EDA wanted to purchase property that exceeded a budgeted dollar amount the EDA would be required to amend each budget accordingly. Director Barnett recommended running parallel tracks: send a letter to downtown real estate owners requesting willing sellers to submit an inquiry form, continue to move forward with a downtown RFP redevelopment and revitalization plan, and take a look at other priority projects. Dan Frie questioned if this is basically information gathering at this point. He made the statement we are not committing to anything at this time. Bill Tapper stated his opinion would be to initiate a concept plan or vision for downtown along with looking at key parcels to purchase from willing sellers. He suggested taking the budgeted land acquisition amount in District 2 for purchasing property and utilizing the remaining funds for planning. Bill Fair stated his opinion would be to see what responses the City receives from downtown real estate owners. After we have gathered this information, then possibly look at initiating a planning process. It is his opinion that if we have more control of the land upfront the planning process will be more successful at the end. Past precedent has shown the City has completed a plan and the downtown land owners have not been willing participants. City Administrator O'Neill reviewed the process and past scope of work completed as part of the 1997 redevelopment plan. The EDA discussed some of the struggles the City has faced in past efforts to redevelop the downtown. MOTION BY TAPPER TO UTILZE $52,000 OF EXISTING TIF IN DISTRICT 1 -2 FOR LAND ACQUISITION, DIRECTING STAFF TO SEND AN INQUIRY LETTER TO DOWNTOWN REAL ESTATE OWNERS, AND BEGIN WORKING ON A PLANNING, TRANSPORTATION, AND FINANCING RFP FOR DOWNTOWN SECONDED BY FAIR. MOTION CARRIED. 5 -0. Further discussion occurred regarding the budgeted amount for the planning project if the RFP's exceed the TIF budget amount. The EDA also asked staff to identify other priority projects for downtown and bring back at a future meeting. 8. Director Report Staff updated the EDA on efforts being made for the BR &E program. Perrault asked staff for a review of the recently attended Ehlers conference. 9. Marketing Update No new update at this time. 10. Adjournment MOTION BY FAIR TO ADJOURN SECONDED BY FRIE. MOTION CARRIED. 5 -0. Bill Demeules, President EDA MEETING MINUTES Wednesday, March 10, 2010 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill Fair, and Council members Tom Perrault and Brian Stumpf Staff: Executive Director Megan Barnett, City Administrator Jeff O'Neill 1. Call to Order: 2. Approve Minutes: None provided 3. Consideration of additional agenda items: None were added. 4. Approval of EDA Invoices: MOTION BY TAPPER TO APPROVE INVOICES SECONDED BY FAIR, MOTION CARRIED. 6 -0. Perrault questioned the use of Pinnacle Printing. Barnett stated at the time of biding the project they were the lowest bidder. 5. Review proposed RFP for a Downtown Redevelopment & Revitalization Guide. Barnett stated the draft RFP incorporates Transportation, Land Use /Design, and Financing components. Staff is recommending a Market Analysis component be added to the scope of work. She stated the RFP is set up a little different. Firms are being asked to submit individual RFP's for each component instead of an all inclusive proposal. This approach will ensure flexibility in choosing the best team to accomplish the desired end product. Barnett clarified that the RFP is still in draft form and that the goal of the meeting is to determine if EDA feels that the RFP meets the objectives of the project. She mentioned that the RFP does meet the objective set forth in the City's Comprehensive Plan of 1997, which called for a revision of the Downtown Plan. The Downtown Association provided comments about the draft RFP. There was concern from the EDA that the project may become more expensive and larger in scope than just a downtown study. Barnett confirmed that the study parameters ensure that it remains focused on the downtown area, which will require some broader scope review. It is important to note the scope will meet the Comprehensive Plan objective. City Administrator Jeff O'Neill stated that although there was no transportation component included in the 1997 Comprehensive Plan, there will have to be some consideration of traffic patterns in the downtown area. He pointed out that it will be necessary to spend some local money on planning in order to leverage MNDoT funds in order for the City to move forward with projects that the community has identified as important. The Downtown Business Association would prefer the selection of a proven consultant that has successfully worked with developers in the past. They feel the RFP is well drafted. Susie Wocjchouski suggested including a representative from the Downtown Business Association would help to promote buy -in for the project. Barnett stated City staff will also make a presentation to downtown real estate and business owners. MOTION BY FAIR TO APPROVE THE DRAFT RFP AND ADD A DOWNTOWN REPRESENTATIVE TO THE SELECTION COMMITTEE SECONDED BY DAN FRIE. MOTION CARRIED. 6 -0. Barnett agreed to reconsider the language used to describe the project and determined that it would be useful to add a purpose statement to the draft. Timeframe for choosing the selection committee and the steering committee will be discussed at the April meeting. 6. Recommend City Council adopt Resolution supporting City of Big Lake's proposed Rail Park The City of Big Lake will be asking for regional financing to develop a rail spur in hopes of attracting businesses in food processing and metal fabrication industries to their community. They've asked that the City support their effort with the understanding that there may be some regional economic development benefits to this project. The IEDC is in support of the proposed rail park. Councilmember Perrault had some concerns that it would promote competition for businesses between localities. MOTION BY FAIR, SECONDED BY FRIE. PERRAULT OPPOSED. MOTION CARRIED. 5 -1. 7. Director Report The vacancy on the EDA Commission has been posted with Human Resources. To date there has not been any inquiries. Barnett has been networking to recruit a new EDA member. The Business Retention Expansion Program is ready to survey 60 -80 local businesses. The team will get training to determine how to administer the survey. Five business surveys will be conducted before April 1. The task force meets on April 6`h. The business community will be surveyed from the end of April thru June. The City joined the Positively MN partnership to get more statewide visibility. Barnett will attend the upcoming meeting. Marketing Update a. Monticello Business Center There have been some inquiries about the downtown commercial and retail tenant base. b. Discuss initiating "new- look" (web & print) Barnett plans to initiate new city marketing materials over the next few months to get businesses looking in this area. She will develop a plan for using new venues and social networking to potentially draw more interest to Monticello. Marketing dollars are available to initiate a new and detailed plan underway. 9. Adjournment MOTION BY TAPPER TO ADJOURN SECONDED BY PERRAULT. MOTION CARRIED. M1 Bill Demeules, President EDA MEETING MINUTES Wednesday, April 14, 2010 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Bill Fair, and Council members Tom Perrault and Brian Stumpf Commissioners Absent: Vice President Dan Frie Staff: Executive Director Megan Barnett, Finance Director Tom Kelly, Community Development Director Angela Schumann, Brett Weiss, WSB 1. Call to Order 2. Approve Meeting Minutes None were provided 3. Consideration of additional agenda items 4. Approval of EDA Invoices Barnett noted that there was one additional invoice from Ehlers related to TIF District 1- 22 TIF. MOTION BY TAPPER TO APPROVE INVOICES, SECONDED BY FAIR, MOTION CARRIED. 5 -0. 5. Consideration of approving EDA representation on the Embracing Downtown Steering Committee Barnett asked that two EDA volunteers serve on this committee. She anticipated that the Committee will meet a few times to select a consultant in May, have a project kick -off meeting in June and begin establishing a regular meeting schedule in September. MOTION BY STUMPF TO APPOINT FAIR AND DEMEULES TO SERVE AS EDA REPRESENTATIVES ON THE EMBRACING DOWNTOWN STEERING COMMITTEE, SECONDED BY PERRAULT, MOTION CARRIED 5 -0. 6. Discuss preliminary agreement terms for the purchase of Outlot C and Outlot A, Otter Creek Barnett outlined the Dahlheimer Beverage expansion proposal which involves purchasing an adjacent 6.19 acres in the Monticello Industrial Park and a 50,000- 60,000 square foot building expansion. She highlighted the terms of the existing TIF agreement and pointed out that it would need to be amended to include the new parcel. If the subsidy terms remain the same there would be a significant anticipated shortfall. Finance Director Tom Kelly responded to EDA questions regarding ways to handle the anticipated shortfall. Barnett suggested that there would be job and tax base benefits to promoting business expansion in Monticello. Both Demeules and Fair expressed concern about accepting a significant shortfall. Barnett obtained agreement from the EDA that staff should continue to negotiate with Dahlheimer's and work with Ehlers and Finance Director Kelly to put together alternative financing scenarios and report back as to how the shortfall could be addressed. 7. Consideration of authorizing submission of a Shovel Ready Application to the State of MN and completing the required environmental and survey work The State's Shovel Ready Application process would enable the City to join a State registry of available land ready for development. This would enable priority review in site selection at the State level and allow the purchasing process to proceed quicker. It would also provide the City with State and National recognition. A number of communities have participated in the Shovel Ready program including Big Lake, Rogers (Dayton area), and Rosemount. The application process would require some minor survey and environmental work. The Industrial Park has four outlots that would qualify for certification. There would be a $2,950 fee to apply for the designation which could be paid from the EDA marketing budget. WSB would charge $9,700 to complete the survey and environmental work. They have agreed to split the payment between 2010 and 2011. This fee would be paid from the EDA fund balance and can be repaid to the EDA over time by building the cost into the subsidy package. MOTION BY FAIR TO MOVE FORWARD WITH THE SHOVEL READY APPLICATION, SECONDED BY PERRAULT, MOTION CARRIED 5 -0. 8. Review submitted downtown real estate acquisition inquiry forms The EDA received 22 inquiries related to downtown real estate acquisition. Barnett suggested that it might be useful to establish criteria about high priority parcels in order to evaluate the inquiries submitted. She pointed out that there are TIF district funds available to use for possible property purchase. Stumpf agreed that it would be helpful for staff to establish criteria, and bring alternatives and recommendations for the EDA to consider in a closed work session. Barnett agreed to schedule a meeting for next month and to send a postcard to respondents to let them know the status of their inquiry. Community Development Director, Angela Schumann presented information about two conceptual proposals from different developers representing different interests in the NE and SE quadrants of the Hwy 25 and County Road 75 intersection. Both developers have indicated that they are not interested in TIF at this time. Council was presented with a report on what it would take to examine the transportation infrastructure in the NE quadrant of 75 in recognition of the need for improvements to serve that block. hi the SE quadrant there are two City wells. Well 1 is in direct conflict with future redevelopment. Council has authorized a well siting study to determine what it would take to replace the well. WSB has reviewed what right of way impacts would be involved in fixing intersections. Weiss pointed out that whether this development goes through or not, future developers will also need these issues addressed so it may be useful to lay the groundwork and line up the funding now. Finance Director Kelly stated TIF could be used to help either project move forward. 9. Review and recommend to the City Council a candidate for the open EDA seat MOTION BY FAIR TO RECOMMEND TRACY HINZ TO FILL A VACANT EDA SEAT, SECONDED BY STUMPF. MOTION CARRIED 5 -0. 10. Marketing Update (verbal) Barnett has received quotes on revising marketing materials and would like to move forward on getting quotes to update the economic development section of the website so that it is more fresh and interactive. This will enable site selectors to see why they should come to Monticello. There are marketing dollars available to do this. Barnett agreed to bring back final costs next month. 11. Director Report None Provided. 12. Adjournment MOTION BY FAIR TO ADJOURN, SECONDED BY STUMPF, MOTION CARRIED. 5 -0. Bill Demeules, President Megan nett, xecutive Director 4. Approval of EDA Invoices. a. Ehlers and Associates 617.00 *Analysis TIF 1 -22 b. Kennedy & Graven 41315.00 *General EDA matters /TIF districts c. Wright County Auditor 917.47 *Old Garden Center property 5. CONSIDERATION OF APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE MONTICELLO EDA AND ROCKY MOUNTAIN GROUP LLC. (MB) A. REFERENCE AND BACKGROUND: As you may recall from discussions at the April EDA meeting, Dahlheimer Distribution (Rocky Mountain Group) is proposing to expand their facility by approximately 50,000 — 60,000 square feet. In order to complete the desired expansion, Dahlheimer Beverage is requesting TIF subsidy to write down the cost of land and city fees. At this point in the negotiations with the applicant, the City's past practice has been to require the applicant to sign a Preliminary Development Agreement. Steve Bubul from Kennedy and Graven drafted the attached agreement. In essence the preliminary agreement outlines the required deposit in order for the City to process a TIF subsidy request, states the City will not sell or market Outlot A and C until October of 2010, and sets the expectation that the City and Developer will work together to negotiate a fair and reasonable subsidy agreement. Dahlheimer representatives have reviewed the document and are in general agreement. They are requesting additional information regarding what the City considers "administrative costs." Staff anticipates the document will be signed by Dahlheimer ownership by the time the EDA reviews this item at their May meeting. B. STAFF RECOMMENDATION: The Preliminary Development Agreement is standard past practice and aligns with State Statute requirements. Kennedy & Graven and City Staff recommend the EDA approve the proposed agreement and direct staff to continue negotiating with the applicant. C. ALTERNATIVE ACTIONS: 1. Motion to approve a Preliminary Development Agreement between Rocky Mountain Group ( Dahlheimer) and the Monticello EDA. 2. Motion to deny entering into a Preliminary Development Agreement between Rocky Mountain Group and the Monticello EDA. 3. Motion to table item for further research. D. SUPPORTING DATA: a. Preliminary Development Agreement 6. MARKETING UPDATE. (MB) A. REFERENCE AND BACKGROUND: Staff is attending applicable conferences, seminars, and events to obtain exposure for Monticello. In addition to attending key events, staff is working on various marketing pieces and initiatives outlined below: 1. Site Selector Website: Meeting with a local website design company to discuss creating an interactive economic development /site selector focused website. Staff anticipates this project will cost between $2,500 to $3,000. 2. Real Estate Land Conference: Monticello is signed up to be a corporate sponsor at the May 14, 2010 Land Conference. We will have a booth for participants to view and distribute marketing materials. The corporate sponsorship is $1,500. 3. Twin Cities Bulletin: Staff is recommending the EDA approve entering into two 4 week contracts with CBS Outdoor to display a bulletin in strategic locations within the Twin Cities. Please see attached proposal from CBS Outdoor. Staff would recommend entering into a contract for Inventory #149 and #240. The total cost for the bulletin is estimated at $4,750. It is important to gain attention from business executives that might be looking to expand or relocate their business from the Twin Cities to an outer ring area. 4. New marketing materials: Staff is working with Michele from Majirs to create fresh looking marketing materials. It is estimated the design and printing costs will range from $2,000 - $2,500, depending on how many printed copies are requested. 5. Monticello Chamber Hole Sponsor: May 201h is the Monticello Chamber of Commerce and Industry annual golf event. The EDA will be the sponsor of Hole # 18. B. STAFF RECOMMENDATION: The EDA currently has $19,332 in the marketing budget. The above proposed projects equal approximately $12,075.00. With the above marketing projects completed, the EDA will still have approximately $7,257. This will allow for additional marketing initiatives to be completed in the summer and fall months of this year. C. ALTERNATIVE ACTIONS: a. Motion to approve entering into a contract with CBS Outdoor for two (2) bulletin ads to each run a 4 week time period. b. Motion to deny entering into a contract with CBS Outdoor. C. Motion to table item for further research. D. SUPPORTING DATA: a. CBS Outdoor proposal EDA May 12, 2010 Economic Development Director Updates: IEDC: The IEDC has been focusing on the BR &E initiative. The group will be discussing their desired focus for the next couple of years during their June meeting. It is important to keep the lines of communication open and economic goals aligned between the EDA and IEDC. City Council: See attached agenda. The City Council adopted a Business Expansion Incentive Pilot Program at their April 26, 2010 meeting. The program establishes base line criteria including: • Must be an existing business operating within the current municipal boundary of the City of Monticello at the time of application, seeking to expand at their current location or relocate within Monticello with expansion. May include home -based businesses expanding to commercial/industrial properties. Program may not be extended to institutional or semi- public uses. • The project involves a square footage expansion to an existing building. • The project involves utilization of commercial or industrial space previously unoccupied for three months or more. • The project involves modifications resulting in a building valuation increase. • The project creates new jobs or supports job retention. The City Council approved reducing or waiving the building check plan and planning application fees. Staff anticipates the final application and subsidy agreement will be approved by the City Council at their May 10' meeting. Staff will begin to promote this program in the upcoming Business Insider Newsletter, Business E -News, and through the Chamber. The City Council did already award a Business Expansion Incentive Subsidy to Marn Flicker. Marn is looking to revitalize his existing building located on Hwy 25 (recently known as the River City Cycle building). The City Council did also agree to waive the demolition permit as part of the subsidy. Once Marn submits a building permit, staff will draft an official Subsidy Agreement for City Council approval. Planning Commission: See attached agenda. Wright County Economic Development Partnership Please mark your calendars for Wednesday, June 2, 2010, from 5pm — 7pm at the Community Center for the first Wright County Wine and Beer Event. This is a GREAT way to meet local Wright County businesses and government leaders. The Partnership is an advocate for the economic growth in Wright County. Food, Prizes, and Entertainment will be provided. See attached flyer. Please sign up for this great Wright County networking event. I -94 Corridor Coalition: The Coalition will be hosting a quarterly meeting to discuss developments along I -94 on May 5, 2010 from 3 -4pm. Staff will be attending this meeting and will forward any updates. Downtown RFP: Staff received 12 proposals in response to the downtown RFP. Pricing and approaches vary greatly per proposal. Staff is in the process of setting up a steering committee meeting to select a couple consultants to interview. The goal is to have a consultant team in place by early June. BR &E: A follow up training meeting was held on Wednesday, May 5, 2010 at 7:30am at the Community Center. This was a short meeting to touch base on the interview experiences and ask if anyone would be willing to survey more business. The Leadership Team was able to recruit additional volunteers to interview businesses. The goal is still to survey 80 businesses by June 2. This is an aggressive goal at this point. The Leadership Team could really use additional volunteers in order to meet the June 2nd goal. Inquiries: Staff continues to receive a fairly steady stream of commercial /retail inquiries for existing multi- tenant facilities. Staff is also part of MNCAR and receives about 100 emails a day from realtors either listing buildings or land or requesting information for clients looking for space. Staff has yet to see an inquiry come through requesting raw land to develop. However, about a month ago staff received a call from a site selector looking at available land options in the Monticello Business Center (adjacent to Dahlheimer's) for a potential industrial user. Staff met with Merrill to discuss the historic Rand Bed and Breakfast. Merrill is looking for a buyer for the property. It is his hope along with City staff's to assist in bringing in a user that could utilize the historic nature of the property. Industrial Marketing / Venues: Staff attended a Real Estate Recovery & Capital Market's conference on Friday, April 30, 2010. The City recently joined the Positively MN Marketing Partnership. This venue will provide staff opportunities to meet great State contacts and ultimately make connections with businesses to hopefully attract to the City. Business Communications: Business Newsletter: The Spring issue will be distributed in May. Downtown RFP Meeting: The City hosted a downtown RFP informational meeting on Wednesday, April 28, 2010. While attendance was low, staff and attendees were able to have good dialogue regarding the proposed downtown planning project. Future Meeting Dates: 1. IEDC: June 1, 2010. 2. EDA: June 9, 2010 3. BR &E: EDA May 12, 2010