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EDA Minutes 07-08-2020MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 8th, 2020 — 6:00 p.m. Mississippi Room, Monticello Community Center The EDA meeting was held both remotely and in-person. Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, and Jim Davidson Commissioners Absent: Lloyd Hilgart Staff Present: Jim Thares 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 None. 4. 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 — June 10, 2020 Recommendation: Approve Regular Meeting Minutes — June 1.0, 2020. b. Consideration of approving Workshop Meeting Minutes — June 10, 2020 Recommendation: Approve Workshop Meeting Minutes — June 10, 2020. c. Consideration of approving Regular Meeting Minutes — June 24, 2020 Recommendation: Approve Regular Meeting Minutes — June 24, 2020. d. Consideration of approving Special Meeting Minutes — June 29, 2020 Recommendation: Approve Special Meeting Minutes — June 29, 2020. e. Consideration of approving payment of bills Recommendation: Approve payment of bills through June, 2020. Regular Agenda 5. Consideration of Emergency Small Business Assistance Grants to: Ewings Going In Style, Inc.; The Nordic Brewing, LLC; and West River Restaurant, Inc. dba Chatters Restaurant Jim Thares mentioned continued interest has been received for the emergency assistance grant program. There were three new applications received: Ewings Going In Style, The Economic Development Authority Minutes — July 8th, 2020 Page 1 1 4 Nordic Brewing, and West River Restaurant (Chatter's Restaurant & Bar). Thares reminded the EDA that they recently approved a total of 10 grants in June totaling $50,000. Thares mentioned that each of the three businesses that applied for the grant are eligible and impacted by the pandemic and executive orders by the Governor. Thares noted that the EDA approved guidelines mentions that businesses must have between 2 and 25 employees. West River Restaurant has 31 employees and had more employees prior to COVID and have had a significant decrease in revenue. Each of the businesses have applied for additional funding through state or federal programs. The funds, if approved, would be used for rent or utility payments. If the EDA approves the additional $15,000 in grants, there would be remaining allocation of $35,000. One grant application has already received for consideration at the next upcoming EDA meeting on July 22, 2020. Staff continue to receive interest in the program. Tracy Hinz asked if staff have received any applications from businesses and excluded them if they did not meet the criteria. Angela Schumann stated that they had one inquiry that was likely ineligible for the program. Thares reiterated that West River Restaurant was above the guidelines for the employee count. He also noted that for the current year they are under the requirement for revenue, but in previous years had higher income than the grant guidelines. Thares questioned whether the guidelines for revenue were for the current year or a cumulative average of previous years. Angela Schumann asked if the 31 employees were full-time equivalent. Thares did not believe so. TRACY HINZ MOVED TO APPROVE SMALL BUSINESS EMERGENCY GRANT AGREEMENTS BETWEEN THE EDA AND: EWINGS GOING IN STYLE, INC.; THE NORDIC BREWING CO, LLC; AND WEST RIVER RESTAURANT, INC. DBA CHATTERS RESTAURANT IN THE AMOUNT OF $5,000 EACH TO MITIGATE COVID-19 ECONOMIC IMPACTS. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0. 6. Consideration of Discussion of 2021 HRA Property Tax Lew Jim Thares noted that the item was an annual consideration for the HRA Property Tax Levy. He added that the City is just beginning the budget cycle for 2021. Thares mentioned that years ago, the levy was set up using the HRA Levy and it was not unusual for the EDA to use a HRA levy. Thares noted that discussion would occur on the future levy at the August meeting and a resolution recommending the levy for 2021 would be brought forward for consideration at that time. Thares noted that the EDA levied $355,000 for CY 2020, which was the highest value that could be levied. The EDA is allowed to levy up to .0 18 5 percent of the total taxable market value for the levy. Thares added that the taxable market value for 2021 has increased by $56,333,100 to a new total of $1,980,148,000. This is an estimated 2.93 Economic Development Authority Minutes — July 8t'', 2020 Page 2 14 percent increase from the previous year. The maximum amount the EDA could levy for 2021 is $366,300. Thares mentioned that the levy is used for all operating costs of the EDA. Thares explained that the biggest line item for the budget is for redevelopment activities. He added that the EDA could spend more in certain line items, but that they needed to overall stay within their levy. He also stated that the 2021 General Fund interest earnings are projected to be $5,000. Thares also explained that any unused funds can be rolled over and add up over time. EDA members suggested the maximum amount be levied. Davidson provided an example of why he supported the maximum amount levied. He stated that Block 52 wouldn't be complete to the fullest intent because of the cost of the project and that a lot of progress related to economic development in the City has occurred and this has a bigger return in the long run. To keep these efforts moving forward requires resources. Steve Johnson reminded the EDA that the dollars they spend this year and last year equate to things happening in the future. He stated that he would like to efforts to be fully supported and adequately funded. Staff indicated that a resolution will be presented to the EDA for consideration at the August 12, 2020 with final budget and levy information and reflect the EDA's comments. 7. Director's Report Jim Thares provided the Economic Development Director's Report. He reviewed the status Project Gia -Saurus. Staff are spending a considerable amount of time on this project. The four task areas were summarized. Work efforts continue on all of the four areas. It was also noted that the second draft of the Industrial Land Feasibility Study was completed and staff would review that draft and plan to schedule a joint EDA and City Council meeting for Monday, July 13th at 7:30 p.m. to further discuss Project Gia -Saurus, including the land feasibility study, action items, and next steps. Thares discussed the UMC item in detail and noted that a delay in the construction schedule has occurred due to the pandemic. He reminded the EDA that they are protected by the executed development agreement, including a right -of -reverter clause, and a minimum assessment agreement, which is scheduled for full property valuation beginning January 2, 2022. Tracy Hinz asked if the timeline for the minimum assessment agreement could be adjusted. Thares indicated that it was unlikely. Thares provided an update regarding EDA owned property at 300 4th Street East. He noted that the Fire Department has selected September 12, 2020 to complete the training burn exercise. Carlson Construction has signed the demolition contract and is expected to clean up the site after the training until the end of the month. Thares noted that the cost of demolition was $6,500 and that the EDA would likely have to pay an additional $2,500 for the Fire Department to utilize the building for the training. Economic Development Authority Minutes — July 8''', 2020 Page 3 14 Thares also reviewed the prospect list with the EDA. No new projects were added for June, but several contacts were made, primarily related to the Small Business Emergency Grant fund. Thares noted an update regarding the CARES Act. The State is allocating funds, based on population, to communities across Minnesota. Monticello is expected to receive up to one million dollars for pandemic related costs. The EDA can reimburse itself for the GMEF Loan utilized for the Small Emergency Grant in the amount of $100,000, plus other grant requests past this amount. Jim Davidson asked if you have to prove to the State how the funds would be utilized. Thares responded that the applications submitted for the grant prove the impacts encountered because of the pandemic. The City has until late -November to incur the costs to be reimbursed. Thares also noted telecommuting equipment, masks, and sanitization supplies would also be reimbursable. Direct expenditures to businesses and individuals can also be provided. Johnson asked if extra police protection because of COVID could be contributed to by the fund. Staff noted the County has its own allocation that they would receive. It was believed if the City incurred extra expenses for police enforcement, the cost could be reimbursed by the fund. After November, any unused City funds would be provided to the County or returned to State if unusable. Safety precautions (such as the installation of Plexiglas) could be utilized to pay for the safety upgrades at the public buildings such as the library and DMV. Angela Schumann added that she had a discussion with the County and they are looking closely at the turn back dollars and double dipping that would allow a business to apply for this funding through the City and then the County. The City wants to be sure that if it provides assistance that it has the correct process in place. Johnson asked if the local Food Shelf could be helped out with this type of assistance. Schumann noted that these were all good questions and would be brought back to the Finance Department for evaluation. 8. Adjourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 6.54 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander _Oi7 Approved: August 12th, 2020 1 Attest: Jim Th res, Economic Development Director Economic Development Authority Minutes — July 81h, 2020 Page 4 14