EDA Minutes 01-10-2018. MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, January 10th, 2018 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, Jim
Davidson, and Lloyd Hilgart
Staff Present: Jim Thares and Angela Schumann
1. Call to Order
Bill Tapper called the regular meeting of the EDA to order at 6:00 p.m.
2. Roll gall
3. Consideration of presiding officer
Bill Tapper recommended postponing elections for officers until the annual meeting in
February. The EDA members were in consensus.
4. Consideration of additional agenda items
Bill Tapper requested adding Item 8, 9, and 12 to the Consent Agenda.
5. Consent Agenda
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH
NOTED ADDITIONS AND REMOVAL OF ITEM D. TRACY HINZ SECONDED
THE MOTION. MOTION CARRIED, 6-0.
a. Consideration of approving Regular Meeting Minutes — December 13th, 2017
Recommendation: Approve Regular Meeting Minutes — December 13,', 2017.
b. Consideration of approving Special Workshop Meeting Minutes — December
13th, 2017
Recommendation: Approve Special Workshop Meeting Minutes — December 13th,
2017.
c. Consideration of approving payment of bills
Recommendation: Approve payment of bills through December, 2017.
d. Consideration of Acquisition and Relocation Services Retainer Agreement
with Wilson Development
Recommendation: ITEM REMOVED FROM THE CONSENT AGENDA.
e. Consideration of revised MIF (Minnesota Investment Fund) Loan Guidelines
Recommendation: Modify the MIF Loan Guidelines regarding repayment term
and equity and interest rate language.
f. Consideration of revised SCDP (Small Cities Development Program) Loan
Guidelines
Recommendation: Modify the SCDP Loan Guidelines regarding repayment term
and equity and interest rate language.
g. Consideration of Purchase Agreement for 255 East Broadway Street,
Monticello, MN
Recommendation: Approve Resolution 2018-2 authorizing the purchase of the
vacant parcel of land located at 255 East Broadway.
5A. Consideration of Acquisition and Relocation Services Retainer Agreement
with Wilson Development
Lloyd Hilgart questioned being limited with only one option for service. Jim
Thares explained that it is a professional service and not required to have more
than one bid. Thares noted the amount of experience that Wilson Development
has especially with the City of Monticello.
Steve Johnson asked if there was a threshold to use these types of services.
Morphew commented that Wilson Development and WSB's services would likely
charge about the same, but recommended Wilson Development due to past
relationships.
Angela Schumann stated that these services would only be utilized on an as -
needed basis.
JON MORPHEW MOVED TO AUTHORIZE ENTERING INTO A
RELOCATION SERVICES RETAINER AGREEMENT WITH WILSON
DEVELOPMENT. STEVE JOHNSON SECONDED. MOTION CARRIED, 5-1
WITH LLOYD HILGART VOTING IN OPPOSITION.
Regu➢ar Agenda
6. Consideration of 2018 EIDA Work Plan
Jim Thares stated at the last meeting, he received feedback from one commissioner and
accounted for it in the proposed 2018 EDA Work Plan. Staff also made other additions to
the plan. Thares reviewed the new items, but stated a primary focus would be on
implementation of the Small Area Study strategies.
TRACY HINZ MOVED TO ADOPT THE 2018 EDA WORK PLAN AS PRESENTED.
JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0.
7. Consideration of revised Policy Statement for Available TIF Funds
Jim Thares stated the Master's Fifth Avenue project was identified in the adopted policy
as a "housing" project, but should be identified as a "redevelopment" project.
Adjustments were also made to the policy to make the document more professional.
STEVE JOHNSON MOVED TO APPROVE THE PROPOSED REVISED POLICY
STATEMENTS FOR AVAILABLE TIF FUNDS. JIM DAVIDSON SECONDED THE
MOTION. MOTION CARRIED, 7-0.
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8. Consideration of revised MIF (Minnesota Investment Fund) Loan Guidelines
Added to the Consent Agenda -
9. Consideration of revised SCDP (Small Cities Development Program) Loan
Guidelines
Added to the Consent Agenda -
10. Consideration of Downtown Business Improvement Program Loan Guidelines
Angela Schumann explained that staff were looking for feedback to better direct staff and
CMHP. She stated that staff put together a proposed program that would accommodate
fagade improvements for business vitality in the downtown. Schumann stated the
importance of making an attractive and useful program for property owners in the
downtown.
Schumann explained the basics of the program and noted that the EDA could make
changes. Under the proposal, the loan term would be five years. The loan would be
forgivable based on the term set and pro -rated by years that they remained in the
building. Property owners would need to have other financing as a primary source.
Schumann stated it was written to require sixty percent private sector commitment and
does not include equity in the building. The minimum borrower commitment is five
percent with a loan cap of forty percent. There was not a minimum loan amount
established and a loan interest rate is two percent. Loan participants would not be able to
pair with other EDA loan programs.
Loan fund uses include lease hold improvement items, renovations, and modernization of
buildings. A criteria is also proposed to help the EDA in selecting loan participants.
The geographic boundary for the program would include all properties within the CCD
District.
Bill Tapper commented that he'd like to see the EDA hire an architect to evaluate the
downtown and provide a vision for what would be appropriate to modify the fagades.
Tapper also suggested putting together a very simple program to carry out the design. He
also suggested renovations to buildings be placed in a different category where it could
be determined if a building was worth being invested in. Tapper didn't want the EDA to
rush into a program without fulling understanding the big picture.
Steve Johnson explained his concern for small business owners being able to utilize the
fund. Schumann stated that if a property owner was interested in making changes to their
building they would likely hire an architect to help develop plans. Schumann also stated
that a workshop may be an option to further walk through design guidelines and to
provide a clearer scope for the program.
Tracy Hinz echoed that she would like to see a workshop meeting set up and to also
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include downtown property and business owners in on this meeting. Steve Johnson
explained the importance of talking with business and/or property owners prior to the
workshop to showcase what the City would like to do in the downtown, but also asking
these people what they wanted to do and the assistance they would need to make
improvements.
11. Consideration of Purchase Agreement for 224 East 0' Street, Monticello, MN
Jim Thares stated an email from the property owner was received on January 8th asking
the EDA to be open to assuming the special assessments of $3,604.59
Thares explained that a purchase agreement has not been signed.
LLOYD HILGART MOVED TO LEAVE THE OFFER AS STANDS (AT $71,950).
JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0.
12. Consideration of Purchase Agreement for 255 East Broadway Street, Monticello,
MN
Added to the Consent Agenda -
13. Director's Report
Jim Thares provided the Director's Report and noted the attached prospect list and
Northland Securities services and charge rate update.. Thares also added that the large
marketing sign in Otter Creek is currently being designed as a mock up by WSB.
Thares also explained that he would be attending the annual Wright County Economic
Development Partnership Meeting on Friday, January 19th and the Economic
Development Association of Minnesota conference from January 18th to the 19th
14. 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). PID # 155010052131,
155010052110,155010052120,155010052102,155010066010 _
15. Adiourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:54 P.M. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0.
Recorder: Jacob Thunander
Approved: February 14th, 2018
Attest: �,—
iin T ares, Economic Development Director
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