EDA Minutes 03-13-2019MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, March 13th, 2019 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, Lloyd
Hilgart, and Jim Davidson
Commissioners Absent: 011ie Koropchak-White
Staff Present: Jim Thares and Angela Schumann
1. Call to Order
Steve Johnson called the Regular Meeting of the EDA to order at 6 p.m.
2. Roll Call
3. Consideration of additional agenda items
None.
4. Consent Agenda
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED, 6-0.
a. Consideration of approving Regular Meeting Minutes — February 13. 2019
Recommendation: Approve Regular Meeting Minutes — February 13, 2019.
b. Consideration of approving Special Workshop Meeting Minutes (1) —
February 13, 2019
Recommendation: Approve Special Workshop Meeting Minutes (1) — February
13, 2019
c. Consideration of approving Special Workshop Meeting Minutes (2) —
February 13, 2019
Recommendation: Approve Special Workshop Meeting Minutes (2) — February
13, 2019.
d. Consideration of approving payment of bills
Recommendation: Approve payment of bills through February, 2019.
Regular Agenda
5. Consideration of GMEF Loan Request Preview — Lake Region RVs
Jim Thares introduced the staff report for a request by Monticello RV for GMEF loan
funds in the amount of $109,000. Thares noted that Monticello RV is working on
relocating their business from Elm Street to Chelsea Road (across from Camping World).
He noted that the applicants have a $218,000 funding gap and have requested half of the
funds be covered through the Monticello GMEF loan program and half be covered by the
Initiative Foundation.
Economic Development Authority Minutes — March 13`h, 2019 Page 114
Thares introduced the Monticello RV team including: Scott Kunz, Nicole Borstad, and
Dale Borstad. Kunz gave a short overview of Monticello RV and their plans for opening
a new location in the community. He estimated that the number of employees and the
amount of sales would double with the new location. He also emphasized that the
business would like to give back to the Monticello community by participating in
different events throughout the City and also holding their own celebration. Kunz stated
that the amount of money they would apply for through the Initiative Foundation would
be under $99,500 due to financial guidelines.
Bill Tapper asked if the EDA was being asked to consider a larger loan amount. Kunz
confirmed the request would be for $118,500 if that is acceptable.
Jon Morphew asked if the existing site would be still utilized following the construction
of the new facility. Kunz confirmed stating that the facility along Elm Street would be
utilized for service and rentals.
Steve Johnson asked for clarification on the GMEF. Thares stated that the proposed
equity contribution would be 5 percent. Johnson asked Kunz to explain the difference
between their business and Camping World.
BILL TAPPER MOVED TO AUTHORIZE PREPARATION OF A GMEF LOAN
AGREEMENT AND RELATED DOCUMENTS IN THE AMOUNT OF $118,500
BETWEEN THE EDA AND MONTICELLO RV FOR CONSIDERATION AT THE
APRIL OR MAY 2019 EDA MEETING. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED, 6-0.
6. Consideration of First Amendment to Property Management and Lease Agreement
— BIFF'S Garage, LLC (112 West River Street)
Jim Thares indicated that he received notice that Union Speed and Style (USS) would
like to seek an extension to their lease agreement. Under the current agreement, the tenant
should vacate the premises by April 1, 2019, though there are provisions for an extension
until June 30, 2019 if it is mutually acceptable and agreed to by both parties. Jordan
Dickenson, USS confirmed the desire to remain in the premises until June 30, 2019.
Thares stated an extension would not be problematic as to potential redevelopment
planning efforts.
Mr. Dickenson explained that they are in the process of remodeling their new building in
Osseo, Minnesota and waiting for their Certificate of Occupancy.
Lloyd Hilgart asked if there were any needs for the building by the City. Angela
Schumann noted that the City originally anticipated placing the bikes in the facility for
the Walk `N' Roll. It could find a different site for that event if needed.
The EDA discussed the terms of extending the lease. Concerns regarding having the
tenant vacating the premise before June 30th, 2019 was discussed at length especially as it
relates to property taxes being due after June 30th, 2019.
TRACY HINZ MOVED TO APPROVE RESOLUTION 2019-02 APPROVING THE
FIRST AMENDMENT TO THE PROPERTY MANAGEMENT AND LEASE
Economic Development Authority Minutes — March 13th, 2019 Page 2 14
AGREEMENT WITH BIFF'S GARAGE, LLC ALLOWING THE CONTINUED USE
OF THE PROPERTY FOR AN ADDITIONAL 75 DAYS UNTIL JUNE 15, 2019 AND
THAT BIFF'S GARAGE LLC WILL INCUR ANY COSTS ASSOCIATED WITH THE
FIRST AMENDMENT OF THE LEASE AGREEMENT. JON MORPHEW
SECONDED THE MOTION.
Discussion regarding rent to be paid by the tenant occurred.
MOTION FAILED, 3-3 WITH LLOYD HILGART, BILL TAPPER, AND JIM
DAVIDSON OPPOSING.
BILL TAPPER MOVED TO MOVED TO APPROVE RESOLUTION 2019-02
APPROVING THE FIRST AMENDMENT TO THE PROPERTY MANAGEMENT
AND LEASE AGREEMENT WITH BIFF'S GARAGE, LLC BEING ALLOWED THE
CONTINUED USE OF THE PROPERTY FOR AN ADDITIONAL 75 DAYS UNTIL
JUNE 15, 2019 WITH THE RENT TO BE $1,500 PER MONTH. LLOYD HILGART
SECONDED THE MOTION. MOTION CARRIED, 4-2 WITH TRACY HINZ AND
JON MORPHEW OPPOSING.
7. Consideration of Comprehensive Plan Review Committee
Angela Schumann introduced the item and stated that she was looking for an EDA
member to sit on review committee (to meet up to three times) for the comprehensive
plan update. The recommendation of the subcommittee would be subject to the City
Council review and action.
JIM DAVIDSON MOVED TO NOMINATE COMMISSIONER TRACY HINZ AS
THE EDA REPRESENTATIVE TO 2040 MONTICELLO COMMUNITY VISION &
COMPREHENSIVE PLAN PROPOSAL REVIEW SUB -COMMITTEE, PENDING
COUNCIL APPROVAL OF A SUB -COMMITTEE. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED, 6-0.
It was noted that Hinz could only make meetings that are scheduled early in the morning.
8. Director's Report
Jim Thares provided the Economic Development Director's Report as noted in the
agenda.
It was noted that no amendment to the TIF Contract for Redevelopment for the Briggs
Companies' project is necessary relative to the early partial reimbursement of funds for
construction of the underground parking lot. The EDA effectively waived that particular
language in the agreement when it approved the partial reimbursement to the materials
vendor at the February meeting.
Thares also explained that he attended the Economic Development Day at the Capitol.
He reported on the top priority funding programs that discussed with the legislators.
They were in general open and receptive to supporting the funding levels for the MIF and
Economic Development Authority Minutes — March 13th, 2019 Page 3 14
JCF programs, the two primary economic development tools offered by MN -DEED.
9. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:02 P.M. BILL TAPPER
SECONDED THE MOTION. MOTION CARRIED, 6-0.
Recorder: Jacob Thunander -VF
Approved: April 10, 2019
Attest:
Thares, Economic Development Director
Economic Development Authority Minutes — March 13th, 2019 Page 4 14