EDA Minutes 02-14-20181RTRN'iUTES
REGULAR MIEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, February Roth, 2018 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Bill Tapper, Steve Johnson, Tracy Hinz, Jon Morphew, 011ie
Koropchak-White, and Jim Davidson
Commissioners Absent: Lloyd Hilgart
Staff Present: Angela Schumann, Jim Thares, and Wayne Oberg
1. Call to Order
Bill Tapper called the regular meeting of the EDA to order at 6 PM.
2. Roll Call 6:00 p.m.
3. Annual Business Meeting
a. Consideration to elect EDA Officers
TRACY HINZ MOVED TO ELECT 2018 OFFICERS: STEVE JOHNSON AS
PRESIDENT, BILL TAPPER AS VICE PRESIDENT, AND JON MORPHEW
AS TREASURER. JIM DAVIDSON SECONDED THE MOTION. MOTION
CARRIED, 6-0.
b. Consideration to review EDA Bylaws and Enabling Resolution
There was questions about Article IV —Executive Director, of the Bylaws. Jim
Thares noted that the change was accepted at the previous year's meeting. He
would work with the City Clerk to ensure the final version would be correct.
c. Consideration of EDA fund balance information
Wayne Oberg provided an overview of the EDA fund balance.
Bill Tapper commented on the amount of expenditures for consulting services.
It was noted that the least restrictive amount of money the EDA could spend is
$2,051,000.
4. Consideration of additional agenda items
Bill Tapper asked to add 7.5 and 7.6 of the agenda were added by staff.
JIM DAVIDSON MOVED TO ACCEPT THE ADDITION OF ITEM 7.5 AND 7.6.
OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-
0.
5. Consent Agenda
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. JIM DAVIDSON
SECONDED THE MOTION. MOTION CARRIED, 6-0.
a. Consideration of approving Regular Meeting Minutes — January 10111, 2018
Recommendation: Approve regular meeting minutes — January 10th, 2018.
b. Consideration of approving Special Workshop Meeting Minutes — January
10th, 2018
Recommendation: Approve special workshop meeting minutes — January 10',
2018.
c. Consideration of approving payment of bills
Recommendation: Approve payment of bills through January, 2018.
d. Consideration of 2018 Farm Lease with Tom and/or Matt Spike at $1,100 for
13.6 acres
Recommendation: Authorize the EDA Executive Director and President to
execute the Farm Lease agreement for Outlot F, Otter Creek Crossing as drafted.
Regular Agenda
6. Consideration of Purchase Agreement for 103 Pine Street
Jim Thares explained that the address covers three parcels (approximately totally 22,687
square feet) and is a core block located in the Small Area Study. Thares stated the market
value of the property per Wright County is $430,800. The seller has the property listed
with KW Commercial Midwest for $685,000 and the EDA put forward an offer $517,200
global offer to also include relocation costs for residential and commercial tenants in
addition.
The site is intended for mixed use development. There is no development proposed at this
point. The property would be held for future development proposals.
Thares mentioned in March the Planning Commission would consider consistency of the
purchase with the Monticello Comprehensive Plan.
Bill Tapper asked about the closing. Thares stated the closing would be proposed for
March 15th with a simultaneous closing of the home the seller is purchasing. Thares also
added that the seller is not asking for earnest money. The sellers and the tenants would be
allowed to occupy the space until June 30th
Tracy Hinz asked if the EDA would be landlords after the signed purchase agreement.
Thares confirmed, but added that no rent would be collected. At closing, a property
management agreement executed with the seller to take care of the property as they have
been. The escrow amount the City requested would be used to cover legal fees if tenants
are not out of the building by June 30th or to pay for any unexpected costs (e.g. unpaid
utility bills). The seller will also grant the buyer access to the property to conduct
environmental tests prior to the closing date. There is a lot of personal property on the
site and would need to be removed prior to June 30th.
PA
Steve Johnson asked if relocation activities have been initiated with tenants in the
building. Thares stated that the consultant — WSB — has asked for a list of tenants. A
discussion regarding eligibility would be set up.
BILL TAPPER MOVED TO APPROVE RESOLUTION 2018-03 AUTHORIZING THE
PURCHASE OF THE COMMERCIAL PROPERTY LOCATED AT 103 PINE
STREET. JIM DAVIDSON SECONDED THE MOTION.
Tracy Hinz asked what would happen if a developer was interested in developing the land
prior to June 30th. Angela Schumann responded that even if a developer expressed
interest immediately that they would need to complete environmental review and apply
for land use applications.
MOTION CARRIED, 5-0-1 WITH STEVE JOHNSON ABSTAINING.
7. Consideration of CMHP Redevelopment and Rehab Feasibility Analysis Proposal
Jim Thares reminded the EDA of a special meeting with CMHP that was held in January.
Thares stated the CMHP outlined a possible scope of work (attached to the staff report).
City staff would work with CMHP to provide data and conduct surveys. The total cost of
the services would be $1,000.
Steve Johnson asked what the specific goal of the service. Thares stated it was to look at
the core grid of Monticello. The goal would be to address building code issues and
improve the quality of the homes. This service would be a rehabilitation program only
and would not include affordable housing.
BILL TAPPER MOVED TO AUTHORIZE ENTERING INTO A FEASIBILITY
ANALYSIS SERVICES CONTRACT WITH CMHP TO CONDUCT AN ANALYSIS
OF THE MERITS OF ESTABLISHING A HOUSING AND COMMERCIAL
REDEVELOPMENT -REHABILITATION PROGRAM IN TARGETED AREAS OF
THE CITY. JON MORPHEW SECONDED THE MOTION.
Steve Johnson asked if staff could also research CMHP's services for affordable housing,
while entering the proposed contract. Angela Schumann stated deep in the scope that
CMHP provide evaluation of redevelopment potential over rehabilitation. In building a
relationship with CMHP, it will help the EDA to understand their strength as a partner for
a redevelopment project.
Motion carried, 6-0.
7.5 Consideration of Authorizing Letter of Intent (LOI) to acquire 112 West River
Street
Jim Thares explained that the latest draft of the Letter of Intent was provided in the staff
report.
He explained that the parcel is located in the redevelopment area of Block 52. It is a small
lot, with access to River Street.
Thares said that the seller authorized an appraisal of their property, which the EDA
completed and paid for. The seller acquired the property in 2006 for $250,000. The
current offer by the EDA is $370,000 with a global settlement with all relocation
expenses included.
The goal of the property is to redevelop the area with entertainment, restaurant, or mixed
uses.
Tracy Hinz stated that the seller has a year to vacate the property. Thares confirmed that
they would have until March 31 St, 2019. The closing would occur on April 1St, 2018.
Hinz also asked what would happen if a developer was ready to develop the site prior to
the end of March, 2019. Thares stated the purchase agreement states the seller's need to
vacate by March 31 St, 2019, but that environmental review and land use application
process would need to occur prior. Angela Schumann stated that if properties would be
combined, they parcels would need to platted. Schumann also added that if the EDA felt
strongly they could request a notification timeline. Hinz recommended adding language
that if a developer was ready to develop, that the timeline for the seller to vacate would
be sooner.
TRACY HINZ MOVED TO APPROVE RESOLUTION 2018-04 AUTHORIZING
ENTERING INTO THE LOI FOR THE PURCHASE OF COMMERCIAL PROPERTY
LOCATED AT 112 WEST RIVER STREET. JIM DAVIDSON SECONDED THE
MOTION. MOTION CARRIED, 5-0-1 WITH STEVE JOHNSON ABSTAINING.
7.6 Consideration of Authorizing Ouotes for Phase I Environmental Studies at 103 Pine
Street and 112 West River Street
Jim Thares stated that it was important for the EDA to understand environmental issues.
There is money in the EDA general fund budget in the redevelopment activities line item.
Bill Tapper moved to authorize solicitation of quotes and further authorize staff to enter
into a contract for service with the entity that provides the lowest, most economical quote
for service in completing a Phase I for property located at 103 Pine Street and 112 West
River Street. 011ie Koropchak-White seconded the motion.
Jon Morphew asked how many quotes would be anticipated. Thares responded three
quotes.
Steve Johnson stated that the EDA would give authorization to staff to complete the
review if the cost was between $2,600-$4,200. The final quote would not need to be
approved by the EDA at an upcoming meeting.
M
8. Director's Report
Jim Thares provided the Economic Development Director's Report.
Angela Schumann stated that the EDA would be sent via email the final version of the
sign with land for sale in Otter Creek Business Park.
Thares also explained that staff met with downtown business and property owners. A lot
of feedback was received regarding grant or loan fund programs to renovate their
buildings. Another meeting would be held on February 261H
Thares reviewed the prospect list with the EDA.
9. Adiourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:07 P.M. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0.
Recorder: Jacob Thunander
Approved: March 14th, 2018
Attest: L'1�
Ji T res, Economic Development Director
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