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EDA Minutes 05-13-2020MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 1311, 2020 — 6:00 p.m. Mississippi Room, Monticello Community Center Due to recommendations related to the COVID-19 virus, the EDA meeting was conducted as a remote/virtual meeting. Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, 011ie Koropchak- White, Lloyd Hilgart, and Jim Davidson Commissioners Absent: Tracy Hinz Staff Present: Jim Thares, Jeff O'Neill, and Angela Schumann 1. Call to Order Steve Johnson called the Regular Meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items Steve Johnson suggested adding a closed meeting item at the end of the regular meeting to discuss pending legal matters. 4. Consent Agenda JIM DAVIDSON MOVED TO APPROVE THE CONSENT AGENDA. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 6-0. a. Consideration of approving Regular Meeting Minutes — April 8, 2020 Recommendation: Approve Regular Meeting Minutes — April 8, 2020. b. Consideration of approving payment of bills Recommendation: Approve payment of bills through April, 2020. c. Consideration of Mortgage Subordination Agreement between the EDA and Minnesota Business Finance Corporation (MBFC), SBA -504 Program Lender, St. Cloud, related to GMEF Loan to DSN Investments, LLC dba Monticello RV Center in the amount of $118,500 Recommendation: Approve the Mortgage Subordination Agreement between the EDA and Minnesota Business Finance Corporation (MBFC) related to the EDA's GMEF Loan in the amount of $118,500. d. Consideration of Hazardous Material Removal Quotes and Authorization to Enter into Contract for Services with the lowest qualified submittal — 300 - 4th Street East Recommendation: Select Bergo Environmental, Inc. in the amount of $1,658 to remove and dispose of asbestos. Economic Development Authority Minutes — May 131h, 2020 Page 1 1 6 Regular Agenda 5. Consideration of Housing Study RFO-RFP submittals and Authorization to enter into negotiations for a Contract for Services with most qualified preferred Vendor Steve Johnson noted that the EDA discussed the housing study RFQ-RFP in a prior workshop meeting. BILL TAPPER MOVED TO TABLE ACTION. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 5-0. 6. Consideration of Creating an Emergency Small Business (COVID-19 Impacts) Financial Assistance Program Steve Johnson also mentioned that the EDA discussed creating an emergency small business financial assistance program at a prior workshop meeting. Jim Thares noted that the staff recommendation was to award up to $5,000 in assistance per business that applies for the assistance. Thares explained that the funds would be drawn from the Greater Monticello Enterprise Fund (GMEF). Typically, that loan fund is available for businesses to use in projects that result in new job creation and new tax base. Thares recommended utilizing up to $100,000 for the assistance program. Based on feedback received during the workshop meeting, the EDA recommended waiting to see how federal and state programs are working out. Johnson stated that the GMEF program had slightly above one million dollars set aside. Thares confirmed that it had $1,030,000 available. Johnson asked if the EDA was legally allowed to do this by State Statute. Thares confirmed as the origin of the GMEF dollars is excess local liquor store revenue. Thares stated that there are still some development prospects who have made inquiries regarding the use of GMEF for their proposals. He further described the situation of one prospect that has delayed their development proposal until next year due to COVID-19. He believes they would like to apply for a $300,000 loan from the GMEF program. Thares recommended saving an estimated $880,000 in GMEF for future projects. Thares confirmed that $100,000 for the assistance program would not jeopardize other prospective developments. Johnson asked the EDA to table action for two weeks to understand the new announcements by the Governor. 011ie Koropchak-White added that the City and Chamber were also meeting for more discussion. OLLIE KOROPCHAK-WHITE MOVED TO TABLE ACTION TO THE MAY 27, 2020 EDA MEETING. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. Economic Development Authority Minutes — May 13th, 2020 Page 2 16 7. Consideration of WSB Industrial Land Development Feasibility Study RFP and Authorization to enter into Contract for Services iointly with the City of Monticello Jim Thares introduced the item of entering into an industrial land development feasibility study with WSB. Thares reviewed the development assistance worksheet scoring system that evaluated past prospective projects and the new prospect. Thares noted that this project fit in well with the other projects. Staff recommended moving ahead with the contract with WSB & Associates because speed and time are of the essence. The cost of the study would be split between the EDA and City Council in the amount of $20,000. Thares provided the two prospective sites staff were researching for the development proposal. Site 1 was shown near the previous Silver Springs Golf Course. The area contains about 260 acres and is identified in the Comprehensive Plan as an employment center or light industrial land use. Site 2 would be along Highway 25 in the Monticello Orderly Annexation Area and is identified in the Comprehensive Plan as transitional study area. Thares noted that the area is an undeveloped, open area. Thares added that the study would look at the cost of extending utilities to the search areas as well as road connections and generally efficient lot layout and development. Steve Johnson noted that the feasibility study would be germane to the 2040 Comprehensive Plan. He also noted that there is no industrial land available for businesses besides Otter Creek. Thares indicated that the prospect needs between 20 to 22 acres due to the 300,000 square feet facility that is proposed to constructed in two phases. Thares added that there is approximately 35 to 40 acres of light industrial and additional IBC land near Mills Fleet Farm. Johnson asked if the City Council is supportive of the study and prospect. Thares responded that the WSB proposal was just received today. He said that the City Council has been provided information regarding the prospect related to a site acquisition discussion in a closed meeting on April 13, 2020. The City Council directed staff to continue to look for acceptable sites and complete due diligence regarding the proposal. Jeff O'Neill concurred with the Thares analysis from the City Council's direction and believes they would support the cost of the feasibility study. Jim Davidson expressed concern regarding limiting the study to the two sites alone if the proposal includes the current industrial park. Davidson was cautious on moving too quickly, especially if the sites will include more than the prospective business. Lloyd Hilgart explained that the study is necessary as adequate industrial land in Economic Development Authority Minutes — May 13tt', 2020 Page 3 16 unavailable. Hilgart noted that even if the prospect was not interested in Monticello, that they should still complete the study to understand the costs of developing a future industrial park. Jeff O'Neill indicated that a lot of data already exists with the two sites from previous planning efforts. He stated that the study would help to inform decision making in the future and also identify industrial available land. Davidson continued to express concern with only looking at the two sites, especially two sites that have not been in front of the current City Council or EDA lately. O'Neill responded that the two sites are large areas and any number of locations could allow the prospect to locate inside those areas. O'Neill stated that there is a third option that staff could evaluate. This area would be located south of Kjellberg's Mobile Home Park on the east side of NINTH #25. It was noted prospect has indicated that the site should have a buffer area due to the industrial nature of the facility. Davidson stated that he wants an industrial park that fits Monticello's future and accommodates the prospective business. He expressed concerns with moving too fast on the unknown if the prospect would end up developing here. 011ie Koropchak-White asked if it would be beneficial to look at the land south of Otter Creek Business Park for additional industrial development that excluded the prospect. Hilgart responded that staff have approached the property owners (Spike family), but in the past have wanted to only sell the entire large parcel, rather than in pieces. He also added that the area may be encroaching Bertram Chain of Lakes Regional Park. O'Neill confirmed the concerns of development impacts of the prospective project. Hilgart asked if the prospect could be located in Otter Creek, where the City has been looking into constructing a new Public Work's facility. O'Neill explained that the site would be tight and there may be overhead powerlines hindering the development. He noted it would be worth looking into. Hilgart expressed the importance of having a backup plan if federal money was not available for the project and land that could easily become shovel ready. Angela Schumann provided a summary of the revisions to the WSB proposal. She noted that the study would evaluate sites for prospect and not rule out any areas previously discussed. She added that it would site the prospect within desired buffers and the ability to site additional industrial uses in the area and serve additional industrial areas. Lastly, it would make sure to have shovel ready sites and effectively provide cost benefit analysis for larger potential industrial areas. Hilgart reiterated the importance of having options available. O'Neill asked staff if the Chadwick/Bowers sites were reviewed. Schumann confirmed and said that the width is challenging especially with future expansion of the project and Economic Development Authority Minutes — May 13th, 2020 Page 4 16 the location along I-94. She noted that it was a logical expansion of the Otter Creek Business Park though and staff could further research this area for the prospect. Hilgart acknowledged that staff could ask the Spike family if they would be willing to sell portions of their property for an expansion of OCBP. Thares confirmed staff would look into this. Koropchak-White suggested that this area be included in the study. Schumann added that the current and proposed Comprehensive Plan for land use for land near Bertram, including the Spike property should be held for residential purposes. It was important to be thoughtful of the type of industrial uses that go in that area and any breakpoints. She noted that further evaluation would be required. Hilgart explained that the difference with the prospective development was that there would be no outdoor storage, heavy traffic, and other impacts. Outside of possible minimal odors, most neighbors won't even know what's going on inside of the building. Bill Tapper asked if the developer was shown the land adjacent to the NSP Transmission System and if the parcel identified along 90th Street was near residential. Schumann confirmed. O'Neill stated that the concern for residential is when it is located to the north of the facility as the prevailing winds are from the south in the season when people spend more time outside. Schumann stated that the feasibility study would determine constraints. BILL TAPPER MOVED TO APPROVE THE WSB & ASSOCIATES RFP SUBMITTAL FOR THE INDUSTRIAL LAND DEVELOPMENT FEASIBILITY STUDY AND AUTHORIZE ENTERING INTO A CONTRACT FOR PROFESSIONAL SERVICES. LLOYD HILGART SECONDED THE MOTION. Discussion continued. Hilgart asked staff to sketch out how and if the potential building would work on the sites discussed at the meeting. Koropchak-White had concerns with approving a feasibility study focused on only the prospect. Schumann explained that the recently approved Industrial Absorption and Demand Study defines potential growth and expansion areas for industrial uses and recognized that the Otter Creek area includes the Chadwick and Spike parcels. She added that it also recognizes the northwest area and land south of Featherstone as potential industrial locations. She noted that one addition should be made to the scope to not overlook the Otter Creek area for potential development of the prospect. O'Neill stated that the Featherstone site should be a fallback if the other two sites are too expensive. Johnson added that looking at large industrial areas would be good to include in the proposed Comprehensive Plan. MOTION CARRIED, 6-0. Economic Development Authority Minutes — May 13th, 2020 Page 5 1 6 8. Director's Report Jim Thares provided the Director's Report. He explained the Briggs Rivertown Residential Suites in detail and noted that they needed to complete required landscaping and a second lift to their parking lot to receive the Certificate of Completion and receive TIF reimbursements. Thares added that it should be completed in a relatively timely manner. Thares also explained that UMC has decided to finish a mezzanine space identified in their development plans. There is the possibility that this improvement could increase the value of the building. Thares also noted that UMC has not submitted their building plans yet for building permit. They have mentioned that they want to make some minor tweaks to the development site and staff will review this as to whether it should go back to the Planning Commission and/or City Council. Thares and Schumann discussed the Central Mississippi River Regional Partnership together and explained that the EDA would be receiving an email to a survey regarding Framework 2030. They were encouraged to complete that survey and spread the word throughout the community to also participate in the survey. Schumann also provided information for the EDA to find more information about the CMRRP and Framework 2030 initiative. Thares provided the prospect list and noted that significant time has been spent on Project Gia -Saurus. He also added that Project Boat was looking for land in the County and Project #6580 was on hold due to COVID-19. 9. Added Item — Closed Meeting Jim Thares explained that the special closed meeting should be held off until the next EDA Meeting on May 27, 2020 to ensure the EDA is following proper meeting notice procedures per State Statute. 10. Adiourn BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:18 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander Approved* June 10th, 2020 Attest: Ji Thares, Economic Development Director Economic Development Authority Minutes — May 13th, 2020 Page 6 16