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EDA Minutes 03-08-2017MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 811, 2017 — 6:00 p.m. Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jon Morphew, Jim Davidson, and Lloyd Hilgart Absent: Steve Johnson Staff. Jim Thares, Angela Schumann, and Jacob Thunander 1. Call to Order Bill Demeules called the regular meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Administer Oath to new Commissioner, Jon Morphew Jim Thares administered the Oath of Office to Jon Morphew. 4. Approve Meeting Minutes: a. Regular Meeting — February 8, 2017 BILL TAPPER MOVED TO APPROVE THE REGULAR MEETING MINUTES FROM FEBRUARY 8TH, 2017. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 6-0. b. Special Meeting — February 8, 2017 BILL TAPPER MOVED TO APPROVE THE SPECIAL MEETING MINUTES FROM FEBRUARY 8TH, 2017. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. 5. Consideration of additional agenda items None. 6. Consideration of approving payment of bills Bill Tapper asked why the EDA was still paying for `market matching' with WSB. Jim Thares commented that the invoice title is misleading and that it was to pay for WSB's monthly programing costs, which include assistance with lead generation, technical assistance, and attendance at regional meetings. TRACY HINZ MOVED TO APPROVE PAYMENT OF BILLS THROUGH FEBRUARY 2017. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 6-0. 7. Consideration of entering into a contract with CMDC to Underwrite GMEF Loan Applications Jim Thares explained that City Staff had drafted an agreement that would govern a relationship with CMDC regarding loan underwriting. CMDC would charge a 1.5 percent fee or a minimum of $4,000 per loan, but the EDA would have the discretion of who would complete the underwriting service. Typically, any loan amount over $265,000 would be underwritten by CMDC. Thares also stated that if the borrower was seeking a an SBA 504 loan, the 1.5 percent fee would remain. Bill Demueles asked where in the contract it discussed the EDA completing underwriting services on their own. Thares stated it was not included in the contract, but could be amended. Demeules noted that the way the contract read, it seemed like all loan requests would be covered by CMDC. Thares stated that the EDA would be covered in the agreement under `Services', where the second line reads: "The services will be provided on an as needed basis as directed by the Monticello EDA". Thares also explained that the EDA's attorney reviewed the agreement prior to the meeting and recommended adding a section about `Termination'. Demueles asked that after a year of provided services that the termination be set at a 30 day notice. Thares confirmed that could be added to the agreement. Jon Morphew asked if the EDA could have the CMDC underwrite loans of less than $265,000. Thares confirmed, stating that the amount was a general guideline. TRACY HINZ MOVED TO AUTHORIZE ENTERING INTO A LOAN UNDERWRITING AGREEMENT WITH CMDC IN SUBSTANTIALLY THE FORM OF THE PRESENTED AGREEMENT WITH THE ADDITION OF THE (TERMINATION) VERBIAGE PRESENTED BY PRESIDENT DEMUELES. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 6-0. 8. Consideration of contributing $5,000 in funding to downtown (Block 34) art proiect Angela Schumann noted at the August, 2016 meeting; the EDA approved the costs of landscaping Block 34 near the intersection of Highway 25 and 75. The landscaping included boulevard trees and plantings. There have since been discussions with the Parks Department to also include art at this corner and the EDA was asked to consider spending $5,000 for a metal sculpture. Schumann added that the Parks Department also intended to paint the side of the building facing Highway 25. Schumann discussed the benefits of public art related to Economic Development. She cited a study completed by the John S. and James L. Knight Foundation and the Gallup of what contributes to community attachment. The study surveyed 43,000 individuals from across 26 American cities. The organizations found three commonalities that relate to attachment of the community which included aesthetics, social gatherings, and openness. The study found that community attachment led to increased GDP and growth in a community where a resident wants to spend money. Schumann encouraged the use of art in the revitalization and economic growth goals for downtown Monticello. 2 Schumann stated that the art would be completed by Sue Seeger, who recently completed the metal deer sculpture at Monti -View Park and is partnering with the City on a local art place grant. Schumann explained that Seeger has proposed two metal swans for the corner location. The $5,000 cost would cover shop fees and additional materials/supplies. Schumann also mentioned that the art would be movable in case of future development at that location. Bill Demueles asked how the Finance Department would put a value on the sculpture for the financial report. Schumann stated she would consult with the Finance Department. Tracy Hinz noted that the Small Area Study focus on revitalization is bringing in new development, but also working with what is existing. Hinz stated that this would be a way the EDA could support and encourage investment in the downtown. Jon Morphew asked if the EDA approved the $5,000 for the artwork and the art place grant wasn't approved, what would happen. Schumann stated that the EDA could make their approval contingent on the approval of the art place grant. TRACY HINZ MOVED TO AUTHORIZE A CONTRIBUTION OF $5,000 TOWARD THE DEVELOPMENT OF AN ART SCULPTURE IMPROVEMENT AT THE SOUTHEAST INTERSECTION OF TH25/CSAH 75 AND TO ACCEPT THE DONATION OF THE ARTWORK CONTINGENT UPON GRANT APPROVAL FOR THE REMAINING FUNDING NECESSARY. Bill Tapper asked if there were images of the proposed project. He also asked for the types of materials that would be used for the sculpture and mentioned concerns with rust. Jon Mophew noted that the Staff Report stated that the swans would be made with stainless steel. Schumann added that she would ask the artist for more information on the appearance of the sculpture and would verify the materials. Tracy Hinz asked if the artist could keep the EDA informed on her plans and progress on the sculpture. Schumann confirmed that she would invite Seeger to a future meeting and also send the artist's website blog to the EDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. 9. Consideration of Director's Report Jim Thares noted that he attended the CEDS meeting on February 23rd, which discussed `Economic Competitiveness'. There would be two more meetings in the upcoming months to discuss `Community Resources' and `Foundational Assets'. He encouraged the EDA to also attend these meetings, if possible. Thares also stated the housing study is in its second draft. He anticipates that the plan will be completed and presented to the EDA in April. Thares mentioned that the Small Area Study Steering Committee had met twice. The next Steering Committee meeting would be held on March 23rd, with a public, open house on March 30d'. Thares also stated that the Ms. April Studer informed staff that she would be unable to 3 complete the project at the 349 West Broadway due to the high costs of redeveloping the site. A cancellation agreement had been executed. Thares noted that he has been receiving interest from others in developing the site. Lloyd Hilgart asked if Ms. Studer had shared the costs of redeveloping the site. He stated the financials could be useful for future interested prospects so that they know the upfront costs involved in the redevelopment. Thares confirmed he would ask Ms. Studer if she would be willing to provide this information. Bill Tapper asked if the EDA incurred any expenses from this project. Thares noted that the City would maintain the $1,000 earnest money from Ms. Studer to cover some of the costs incurred in attorney fees, but additional fees would be absorbed by the EDA. Tracy Hinz echoed the importance of knowing the costs for redeveloping the site to better understand if the EDA should take additional actions to sell the property. Hinz asked what the main issue with the property was. Bill Demueles noted that it depends on the use of the building. With Ms. Studer's proposal, costly renovations to the floor and restrooms would have needed to occur. Bill Tapper asked if the post office was relocating. Schumann noted that the City received official correspondence that indicated the Post Office would relocate to the carrier annex facility. Hinz asked if it would be beneficial to contact the post office to indicate that the Fred's Auto parcel would now be available. Jim Davidson indicated that he was not in favor of seeing additional postal service vehicles parked in the downtown. Tapper noted that the post office parcel would be more viable with the additional Fred's Auto property and suggested reaching out to the owner of the building. Demueles wanted the EDA to consider any current proposals for the parcel before considering the consolidation with the post office parcel. Thares explained that Groebner, Inc. had decided to seek a purchase agreement for a site in Rogers. He followed up with Groebner, Inc. to determine any interest in staying in Monticello if the purchase agreement was not fulfilled. Tapper voiced disappointment of having the business leave the city and the current outdoor storage covenants. Schumann acknowledged the risks associated with deviating from the outdoor storage requirements set forth in the Otter Creek Business Park and stated that industrial land availability is also a concern. Tapper asked if the parcel to the south of the cement business in Otter Creek Business Park was an option for the relocation of Groebner, Inc. Thares stated that Groebner was asked to consider that site, but they were concerned with the cost of required utility and road extensions and extensive grading. Tapper noted that the EDA should look at how to accommodate industrial development with outdoor storage. Schumann noted that staff would defer to the EDA for direction to work on securing options of additional land opportunities. Demueles also explained that the MPCA is working to eliminate all outdoor storage and to keep that in mind moving forward. Lloyd Hilgart expressed interest in developing additional industrial land, but to do so in a cost effective way. Schumann stated that staff would work on gathering additional information regarding industrial land availability and would schedule a future special or 4 closed meeting. Lastly, Thares commented about the request to research into a consent agenda for the EDA meetings. He had discussed the request with the EDA's Attorney and there are not any prohibitions in using a consent agenda. Thares noted he would add a consent agenda for the April meeting, pending further review by the EDA Attorney. 10. Adiourn BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:45 P.M. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander Approved: April 12, 2017 /101- Attest: �" Jim ares, Economic Development Director