EDA Minutes 01-30-2008 (Special Meeting)MINUTES - SPECIAL MEETING
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, January 30, 2008 - 4:45 p.m.
Academy Room - 505 Walnut Street, Monticello, MN
Commissioners: President Bill Demeules, Vice President Dan Frie, Treasurer Bill Tapper, Bill
Fair, Bob Viering, and Council members Clint Herbst and Wayne Mayer.
Officers: EDA Executive Director 011ie Koropchak, Secretary Angela Schumann, and Assistant
Treasurer Tom Kelly.
1. Call to Order.
President Demeules called the IDC meeting to order at 4:45 p.m.
2. Roll Call.
President Demeules asked for a roll call of commissioners: Tapper, Fair, Viering, Herbst,
Mayer and Demeules responded as present.
Reading and approval of the January 16, 2008 City of Monticello EDA Minutes.
(Not Available)
4. Approval of the EDA bills and communication.
The commissioners were asked to approve one invoice for recording services and to pre -
approve future EDA recording services by a community center employee. Commissioners
inquired to the availability or source of revenue for operational expenses of the EDA. Because
the individual hired for future recording is a community center employee, the pre -approval
would eliminate delayed payment for services rendered by coinciding with the payroll cycle of
the city finance department. Requesting additional information from the Community Center
Board and its Director on the request for pre -approval, WAYNE MAYER MADE A
MOTION TO APPROVE THE INVOICE OF $70 FOR EDA SERVICES ASSOCIATED
WITH RECORDING OF THE EDA JANUARY 16, 2008 MEETING AND TO BRING
BACK THE REQUEST FOR PRE -APPROVAL FOR RECORDING SERVICE BY A
COMMUNITY CENTER EMPLOYEE AT THE FEBRUARY 13, 2008 EDA MEETING.
BILL TAPPER SECONDED THE MOTION AND WITH NO FURTHER DISCUSSION,
THE MOTION CARRIED. YEAS: MAYER, TAPPER, HERBST, VEIRING, FAIR, AND
DEMEULES. NAYS: NONE.
EDA Minutes - 01/30/08
5. Report of the Executive Director.
Koropchak expanded on the follow-up telephone conversation with Brian Walker upon his
receiving the letter relating to the Certificate of Completion and Administrative Costs Shortfall.
He inquired as to the services associated with the $8,000 flat fee by Ehlers & Associates and
recalled conversations and the request for accountability of administrative costs. He stated the
$8,000 which was 50% over -the -amount of the deposit was clearly unacceptable and felt the
administrative costs were strongly mishandled and not the intent of the Contract of which he
may challenge. Koropchak acknowledged that the $8,000 fee was not acknowledged to the
developer; however, the developer was informed that typical administrative costs run between
$15,000 - $17,000. Koropchak requested Mr. Walker attend the EDA meeting of February
13 to express his viewpoints to the commissioners; however, Mr. Walker prefers Koropchak
advise the commissioners of his viewpoint and respond to him on February 14, 2008.
Koropchak noted the 15 days after receipt of the written notice dated January 25, 2008, was
waived. Fair noted the HRA worked a long time on this project and felt Mr. Walker received
a good deal with a purchase price of $43,560 for 5.77 acres of land of which 1.5 acres was
developable and the remaining 4.27 acres consist of power lines and storm water ponding.
Koropchak noted the developer will be taxed on the 5.77 acres; however, she had talked to
the County Assessor on the necessity to reduce the assessed land value on the 4.27 acres,
accordingly. Koropchak agreed with Fair and noted the extra legal time associated with
amending the Preliminary Agreement and to quantify the nature or operation of the business for
an Economic TIF District. However, Koropchak also acknowledged that small projects are
the most difficult to cash flow. The cost by Ehlers for preparation and certification of an
Economic TIF District is the same for a small or large project as it entails the same amount of
work. Clint felt the business got a good deal on the land price. Tapper noted the developer
has no control over legal fees and empathized with Walker. Koropchak repeated Mr. Walker
was not objected to the legal fees but the lack of notification of the $8,000 of which
Koropchak accounts as an over -sight. This item will appear on the February 13 agenda with
additional information and potential alternatives. Additionally, the EDA will further discuss as a
policy the deposit amount associated with creation of TIF Districts.
6. New Business:
A. Consideration to adopt a resolution awarding the Sale of Public Project Revenue
Refunding Bonds, Series 2008A (City of Monticello, Minnesota Lease Obligation)
Koropchak informed the commissioners that a revised resolution was e-mailed this morning, the
30th of January. The final revisions to the resolution were made upon the suggestion of counsel
representing Banc of America. The very minor changes ensured that not more the $10 million
of Bonds would be issued by the EDA in 2008.
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EDA Minutes - 01/30/08
The $6,180,00 Public Project Revenue Refunding Bonds, Series 2008A award remains
consistent with the information provided by Todd Hagen, Ehlers & Associates, at the January
16, 2008. The award to the low bidder, Blanc of America Public Capital Corp, Troy,
Michigan, at a true interest rate of 3.2003%. All Financing Documents were revised as
necessitated by the commitment letter received from the low bidder requesting a private
placement of the EDA refunding bonds.
BILL FAIR MADE A MOTION TO ADOPT A RESOLUTION AWARDING THE SALE
OF PUBLIC PROJECT REVENUE REFUNDING BONDS, SERIES 2008A (CITY OF
MONTICELLO, MINNESOTA LEASE OBLIGATION). BOB VIERING SECONDED
THE MOTION AND WITH NO FURTHER DISCUSSION, THE MOTION CARRIED.
YEAS: FAIR, VIERING, DEMEULES, TAPPER, MAYER, AND HERBST. NAYS:
NONE.
7. Adjournment.
BILL FAIR MADE A MOTION TO ADJOURN THE EDA SPECIAL MEETING. BOB
VIERING SECONDED THE MOTION AND WITH NO FURTHER BUSINESS, THE
EDA MEETING ADJOURNED AT 5:25 P.M. MOTION CARRIED. YEAS: FAIR,
VIERING, DEMEULES, TAPPER, MAYER, AND HERBST. NAYS: NONE.
011ie Koropchak, Recorder Bill Demeules, President
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