EDA Minutes 02-13-2019MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, February 13th, 2019 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie
Koropchak-White, Lloyd Hilgart, and Jim Davidson
Staff Present: Jim Thares, Angela Schumann, and Wayne Oberg
1. Call to Order
Steve Johnson called the Regular Meeting to order at 6:00 p.m.
2. Roll Call
3. Annual Business Meeting
a. Consideration to elect EDA Officers
BILL TAPPER MOVED TO ELECT STEVE JOHNSON AS THE EDA'S
PRESIDENT FOR 2019. TRACY HINZ SECONDED THE MOTION.
OLLIE KOROPCHAK-WHITE MOVED TO ELECT BILL TAPPER AS THE
EDA'S VICE PRESIDENT FOR 2019. LLOYD HILGART SECONDED THE
MOTION.
OLLIE KOROPCHAK-WHITE MOVED TO ELECT JON MORPHEW AS THE
EDA'S TREASURER FOR 2019. BILL TAPPER SECONDED THE MOTION.
MOTION CARRIED, 7-0.
Steve Johnson also read his disclosure statement for conflict of interest.
b. Consideration to review EDA Bylaws
Staff noted no proposed changes to the EDA Bylaws.
c. Consideration to review EnablinE Resolution
Staff noted no proposed changes to the Enabling Resolution.
d. Consideration of EDA Financial Statements and Fund Balance information
Wayne Oberg provided a detailed report on the EDA financial statements and
fund balance as noted in the staff report.
Lloyd Hilgart asked if the GMEF fund could only be used as loan program. Oberg
confirmed that as long as prospective borrowers meet all the requirements of the
loan.
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011ie Koropchak-White asked for clarification if TIF 20 Prairie West was
decertified. Oberg confirmed and stated that the City met all of their requirements.
The money that is in the fund will sit there and can be used for redevelopment or
a qualified housing.
BILL TAPPER MOVED TO APPROVE THE FINANCE REPORT. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0.
4. Consideration of additional agenda items
Steve Johnson noted a change to the schedule for the workshop meetings.
Consent Agenda
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. JON MORPHEW
SECONDED THE MOTION. MOTION CARRIED, 7-0.
a. Consideration of approving Regular Meeting Minutes — January 9th, 2019
Recommendation: Approve Regular Meeting Minutes — January 9th, 2019.
b. Consideration of approving Special Workshop Meeting Minutes — January
9th, 2019
Recommendation: Approve Special Workshop Meeting Minutes — January 9th,
2019.
c. Consideration of approving payment of bills
Recommendation: Approve payment of bills through January, 2019.
Regular Agenda
6. Consideration of Resolution #2019-01 Consenting to Assignment and Subordination
of Contract for Private Redevelopment and TIF Note between Rivertown
Residential Suites, LLC (Briggs Apartment) and Bell Bank for financing and
collateral purposes
Jim Thares stated this was the typical process when financing is being obtained related to
the use of a TIF District. Thares indicated that the EDA's Attorney has reviewed and
approved the document.
BILL TAPPER MOVED TO ADOPT EDA RESOLUTION #2019-01 CONSENTING
TO A COLLATERAL ASSIGNMENT AND SUBORDINATION OF THE
CONTRACT FOR PRIVATE REDEVELOPMENT AND TIF NOTE BETWEEN
RIVERTOWN RESIDENTIAL SUITES, LLC AND BELL BANK (A NORTH
DAKOTA CORPORATION) AS RELATED TO LENDER FINANCING FOR THE
BRIGGS APARTMENT PROJECT. LLOYD HILGART SECONDED THE MOTION.
MOTION CARRIED, 7-0.
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7. Consideration of Authorizing TIF Grant progress payment to Rivertown
Residential Suites, LLC (Briggs Apartment) for underground parking expenses
(materials)
Jim Thares introduced the item and summarized the request as identified in the staff
report. Briggs Companies requested $170,865.35 be reimbursed to cover a portion of the
costs associated with the underground parking structure.
Pat Briggs, developer of the project, explained that it was his understanding that he could
submit reimbursement invoices at any time rather than for the lump sum of $400,000.
Briggs also gave an update on the project and noted that it would be delayed until April
Is'. He noted that when excavating the site, they ran into unexpected ground water. He
also provided the EDA Members with the final determined elevations of the building.
Tracy Hinz asked for further details on the staff report recommendation. Thares noted
that there was risk to reimbursing costs prior to completion of the development. He
further explained that the project could have costs paid out and the project gets
significantly delayed. Thares stated that it appears that he is on a clear path as he working
out getting financing. Thares also indicated that he has worked with Briggs on various
projects in Big Lake, all of which were successfully completed.
Bill Tapper asked who the reimbursement would be wrote out to. Briggs stated that in an
effort to remain transparent, he recommended that the check be wrote out to the vendor.
Hinz expressed concerns with the contract that was originally approved by the EDA. She
asked if the contract would need to be revised to reflect that payments could be
reimbursements at any time.
Briggs indicated if ground water would not have been hit, he would have submitted the
full reimbursement for $400,000 at one time.
Steve Johnson asked Briggs if there would be any problems with getting full financing
from their lender. Briggs confirmed and noted that they expected that the $400,000 would
be covered.
TRACY HINZ MOVED TO AUTHORIZE A TIF GRANT PROGRESS PAYMENT TO
WELLS CONCRETE, ALBANY, MN IN THE AMOUNT OF $170,865.35 AS
DETAILED INVOICE #1 AND #2 FOR UNDERGROUND PARKING MATERIALS
EXPENSES PENDING A WRITTEN AGREEMENT TO AMEND THE SECTION IOB
OF THE CONTRACT STATING THE NATURE OF THIS ADJUSTMENT. JIM
DAVIDSON SECONDED THE MOTION.
Tracy Hinz asked if the underground parking was still estimated at $400,000. Briggs
confirmed.
Economic Development Authority Minutes — February 13", 2019 Page 3 14
MOTION CARRIED, 7-0.
8. Consideration of Adopting 2019 Economic Development Authority Workplan
Jim Thares indicated that the EDA held a previous workshop meeting to discuss the 2019
EDA workplan. He noted changes to the draft as provided in the staff report.
BILL TAPPER MOVED TO ADOPT THE 2019 EDA WORKPLAN AS PRESENTED.
OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7-
0.
9. Director's Report
Jim Thares gave the Economic Development Director's Report.
The EDA asked for more information on the I-94 project especially if there is the chance
of the expansion happening in Monticello.
10. 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)
A. Property Address: 101 West Broadway Street - PID #155010052090
B. Property Address: 107 West Broadway Street — PID #155010052070
C. Property Address: 121 Broadway Street — PID #155010052031
11. Adiourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:02 P.M. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7-0.
Recorder: Jacob Thunander
Approved: March 13, 2019
Attest: &imhares,
Economic Development Director
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