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EDA Minutes 10-12-2016MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, October 12th, 2016 Mississippi Room, Monticello Community Center Present: Bill Demeules, Steve Johnson, Tracy Hinz, James Davidson, Tom Perrault, and Lloyd Hilgart Absent: Bill Tapper Staff: Jim Thares and Jacob Thunander 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approve Meeting Minutes: a. Regular Meeting — September 14t", 2016 TRACY HINZ MOVED TO APPROVE THE SEPTEMBER 14TH, 2016 REGULAR MEETING MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. 4. Consideration of additional agenda items None. 5. Consideration of approving payment of bills LLOYD HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH SEPTEMBER, 2016. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 6. Consideration of Membership Dues to WCEDP Jim Thares explained the Wright County Economic Development Partnership (WCEDP) is asking for payment of the annual membership dues. The EDA has been a member of the WCEDP for several years. The 2017 membership costs are $2,529.90, which is a 3.5 percent increase from 2016. Bill Demeules asked if the contract for Economic Development Assistance with WSB could serve as the EDA membership for this entity. Thares confirmed that WSB is also a member of the WCEDP and that it could possibly cover the membership. Demeules also noted concerns of the WCEDP website being outdated and having several broken links. STEVE JOHNSON MOVED TO TABLE THE APPROVAL OF THE 2017 ANNUAL WCEDP MEMBERSHIP DUES IN THE AMOUNT OF $2,529.90 FOR FURTHER RESEARCH. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. Lloyd Hilgart questioned how active the WCEDP is at conferences and other networking functions. Thares mentioned that the WCEDP will be involved with the MNCAR Expo on November 9, 2016 and will be sponsoring a booth which features available Wright County sites, including the City of Monticello land parcels. Hilgart asked if a comprehensive list could be created that outlines the work of the WCEDP. Tom Perrault also want to further understand the benefit of membership to the EDA. 7. Consideration of 2017 Contribution to Initiative Foundation Jim Thares stated the EDA has been contributing to the Initiative Foundation annually. He stated the EDA has in the past benefited from their loan programs and a recent example of this was referenced as the We Thrive Fitness financing proposal wherein the Initiative Foundation offered to fund a portion of the project. Thares stated in 2016, the EDA contributed $2,250 to the Initiative Foundation and the proposed contribution for 2017 is $2,300. Bill Demeules commented he was supportive of the contribution, but would like to see their loan programs highlighted in future EDA proposals. Thares stated that would be something that could be included. Tom Perrault expressed concern with approving the contribution as it is not matched by the McKnight Foundation. He also mentioned that the Initiative Foundation works on many areas outside of economic development such as social service and healthcare initiatives. TRACY HINZ MOVED TO APPROVE THE 2017 ANNUAL INITIATIVE FOUNDATION ENDOWMENT CONTRIBUTION IN THE AMOUNT OF $2,300. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -1, WITH TOM PERRAULT IN OPPOSITION. 8. Consideration of revised development Plan/home for 413 — West 411' Street Jim Thares explained at the August I Ot", 2016 meeting, Tim Taylor proposed a purchase agreement for 413 West 4t' Street. This was approved by the EDA with specific plans for residential development. Taylor would like to have the house plan revised, with no other revisions to the purchase agreement. Thares stated the key differences between the past plan and this one is a smaller square footage and a split level style home instead of the rambler proposal. He stated it does meet all requirements set forth in the zoning code, except for the setback of the garage. 2 Lloyd Hilgart asked if the fagade was changed. Tim Taylor stated that it was changed somewhat however it is still a nice fit to the surrounding neighborhood. It is also now a presold home and this plan is more economical for the client. He stated the previous house plan would have be valued at $320,000. With this new plan the values come in at about $230,000. He also stated the revised plan would be more practical for the buyer's needs. The concerns from the previous EDA meeting were also taken into account in the redesign of the house by including windows on all sides. Steve Johnson asked if the footprint was similar to the previous plan. Taylor stated they were completely different plans. Lloyd Hilgart wanted Taylor to understand the concern with meeting the code for the location of the garage. He stated a variance would need to be applied for if the new plan would be kept as is. TRACY HINZ MOVED TO APPROVE REVISED HOUSE PLANS RELATED TO THE PURCHASE AND REDEVELOPMENT AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND TAYLOR HOLDINGS, LLC AND THE CONVEYANCE OF A RESIDENTIAL LOT LOCATED AT 413 WEST 4TH STREET. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 5 -1 WITH LLOYD HILGART IN OPPOSITION. 9. Presentation by Hill Capital Corporation Jim Thares introduced Austin Bogestad from Hill Capital Corporation. Bogestad spoke about the background of Hill Capital, the James J. Hill Reference Library located in St. Paul, and how the organization supports entrepreneurship throughout a three state region. He noted that currently there are 200 individuals and institutions that have joined Hill Capital as shareholders in a 10 -20 million dollar fund to invest in small businesses throughout the region. Bill Demeules asked how much capital has been raised. Bogestad indicated they have reached halfway through their public offering of 5 million dollars. Demueles asked where Hill Capital would fit in with other programs such as MN Vest. Bogestad noted Hill Capital is an investment where individuals and organizations are shareholders in a fund that then will be deployed by Hill Capital to make numerous investments in entrepreneurial firms. He also mentioned the liquidity benefit through Hill Capital and that if individuals or organizations invest in the public offering, shares could be sold as soon as the funds are launched. Lloyd Hilgart asked for clarity regarding the funds and to explain the benefit of buying into the organization. Bogestad explained an active fund has yet to be established and that they cannot deploy capital and make investments until the fund is setup. He stated there is no at -risk capital at this fundraising stage, until launching the funds. Shares start at a 3 minimum of one share for $1,000. The share purchase is risk free in the event that the required offering amount is never reached. Investor's dollars would be completely returned if the Fund is not able to be launched. Bogestad also noted this investment would help Monticello become a representative of the region and the opportunity to become a member of advisory committee would be available. He also stated all businesses that are invested in by Hill Capital must have significant ties to the region. 10. Consideration of quotes for Phase II Limited Site Investigation (LSI) in Block 34 Jim Thares explained at the August 2016 EDA Meeting, he was directed to seek a minimum of three bids for the Limited Site Investigation in Block 34. This would ensure a 90 percent reimbursement of the study. Thares noted a range of bids were provided, with similar but not identical work plans. The Minnesota Department of Commerce — Petrofund recommended authorization by the EDA to complete further vetting of the bids and to give feedback on the most qualified and economical bid. There is no additional charge to the EDA for the Petrofund Administrator to review the bids. Tracy Hinz asked about the timeframe of the LSI and if it would be able to be completed in time. Thares stated it must be finished by May 20"', 2017 and that adequate time exists to complete the work. STEVE JOHNSON MOVED TO AUTHORIZE THE SELECTION PROCESS INVOLVING THE MN DEPARTMENT OF COMMERCE VETTING OF BIDS TO IDENTIFY THE MOST QUALIFIED AND ECONOMICAL BIDDER TO PERFORM A STANDARD SCOPE LIMITED SITE INVESTIGATION (LSI) RELATED TO LEAK #20142 ON EDA OWNED PROPERTY IN BLOCK 34. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 6 -0. 11. Consideration of Review of industriai Land Inventory in City of Monticello Jim Thares noted this item was placed on the agenda as a review following the September EDA Meeting regarding outdoor storage for industrial use. Thares noted the following districts with the amounts of acres remaining for development: Industrial Business Campus - 15.93 acres, the Light Industrial sites (Shovel Ready) - 29.80 acres, the Light Industrial sites (Un- Platted /need infrastructure extensions) - 40.93 acres remaining, and the Heavy Industrial sites - 24.07 acres remaining. Bill Demeules noted the I -2 Heavy Industrial has one parcel that is over 5 acres and the rest are under that size. Since large lot sizes for this district are limited for businesses like Groebner Inc., Demueles asked if there are other areas that businesses like Groebner could locate. Thares stated with Groebner Inc. they were looking for a minimum of 5.5 acres and that City Staff is continuing to work to identify a site in the City that could accommodate them. Demueles asked if outdoor storage was permitted under transmission lines. Thares 4 confirmed and stated outdoor storage or parking would be best suited under transmission lines. Steve Johnson asked if the City is still working on calculating the acreage of industrial in the Orderly Annexation Agreement. Thares stated those results have not been summarized. 12. Consideration of Director's Report Jim Thares mentioned a large international firm is seeking 35 -60 acres, which would provide 700 jobs and a $265 million dollar investment in the community. The City's proposal made it through the first round of cuts and remains 1 of 30 eligible Minnesota sites. Lloyd Hilgart asked if the City is still considering going through a realtor for all City owned parcels. Thares stated that the process for commercial sites was in the works. Thares also reminded the EDA of the special benefit property tax levy that was approved by the City Council and noted it is essential to communicate to the City Council. There are numerous ways of communicating to the Council including: filing of the annual budget (required), joint meetings for purchase or sale of property, end -of -year economic development activities report, work plan ratification (required), and annual consideration for adoption of levy (required). Steve Johnson asked if the RFP for the downtown study would be reviewed by the EDA before being sent. Thares stated changes would be made to the RFP following the walking tour that occurred. The RFP would then be sent out to firms and due back on November P. The submitted proposals and evaluation form /materials would be brought to a special workshop meeting prior to the regular scheduled November EDA meeting. 13. Closed session — Consideration of recessing to closed session to develop or consider offers or counter - offers for the purchase or sale of real or personal property pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3). 14. Adiourn STEVE JOHNSON MOVED TO ADJOURN THE MEETING AT 7:40 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Jacob Thunander Approved: November 9th, 20(1'6 Attest: xl�� Economic Development Director 5