EDA Minutes 05-12-2021MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, May 12th, 2021— 6:00 p.m.
Mississippi Room, Monticello Community Center
Participants attended in -person or remotely.
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie
Koropchak-White, Lloyd Hilgart, and Jim Davidson
Staff Present: Jim Thares and Rachel Leonard
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
N/A.
4. Consent Agenda
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. LLOYD HILGART SECONDED
THE MOTION. MOTION CARRIED, 7-0.
a. Consideration of Approving Regular Meeting Minutes — April 14, 2021
Recommendation: Approve Regular Meeting Minutes — April 14, 2021.
b. Consideration of Approving Payment of Bills
Recommendation: Approve Payment of Bills through April 2021.
c. Consideration of Authorizing Staff to proceed with documentation to extend
Lease Agreement between the Citv of Monticello Parks Department and the
City of Monticello EDA for 349 West Broadway
Recommendation: Authorize staff to prepare the Lease Extension Agreement
addendum between the Parks Department and the EDA for property located at
349 West Broadway extending the term for 16 months and/or a resolution for
same and presenting to the EDA for consideration at a future meeting.
Regular Agenda
5. Consideration of Duffv Development's TIF Pre -Application and Development Concept
Review of 59-unit Low Income Housing Tax Credit Affordable Housing Proposal
Jim Thares introduced the item and the applicant Jeff Von Feldt, Duffy Development.
Von Feldt provided an overview of the company, past projects, and their affordable
housing proposal in Monticello (4.18 acres at the corner of Elm Street/7th Street West)
The proposal included a 53-unit apartment building and 3 duplexes (6 units total). Von
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Feldt also reviewed their timeline with the EDA. Von Feldt noted that they were seeking
approval of the City's support to provide TIF financing to the development. The project
cost is estimated at 15 million dollars, with a project gap of $512,000 that the developer
is asking for assistance on.
Thares explained that in the staff report, it identified the need for this type of housing as
per the housing study. Thares also pointed out the potential sourcing of assistance, such
as a new TIF district or the pooled districts. It was estimated that there is currently
$518,000 of funding in the pooled funds that must be used for affordable housing.
Thares explained that there are other projects that may also want to use and qualify for
this funding. The pooled TIF funds are expected to increase over the next five years to
over 1.20 million dollars. Thares explained that the EDA has the opportunity to provide
meaningful assistance to one or two affordable housing projects.
The EDA had consensus of supporting the idea of establishing a new TIF district. They
also noted that the pooled funds could be considered later and dependent on other
projects need that may have a need for those funds. Von Feldt noted that he would
likely need to come back to the EDA for adoption of a resolution of support for TIF, with
a projection model showing the amount of income the district would produce and the
amount that would go towards the development. Thares explained that Northland
Securities had completed a TIF run for 53-units on March 16, 2021. It shows a 26-year
district generates over $750,000. It was noted that the TIF run would need to be
completed again as with more units there would be more value and more increment
generated from the project.
OLLIE KOROPCHAK-WHITE MOVED TO SUPPORT THE TIF DISTRICT FOR THIS PROJECT
AND A LETTER OF SUPPORT TO DUFFY DEVELOPMENT FOR THEIR APPLICATION TO THE
STATE. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0.
6. Consideration of EDA Recommendation to City Council regarding participating in
Wright County Economic Development Authority (EDA)
Jim Thares noted that Wright County sent a letter and flyer to the City of Monticello
asking the City Council to approve a resolution noting that we would participate in the
Wright County EDA. Staff felt it was important for the EDA to weigh in and offer a
recommendation. Thares noted that it would be beneficial to have the Wright County
EDA and who could partner with the City of Monticello EDA on certain initiatives and/or
projects. The main purpose of the Wright County EDA is to complete redevelopment
and repositioning of County owned land/assets.
BILL TAPPER MOVED TO RECOMMEND OPTING INTO (PARTICIPATING IN) THE WRIGHT
COUNTY EDA FOR A PERIOD OF FIVE YEARS WITH SUBSEQUENT REVIEW AT THE
CONCLUSION OF THAT TIME FRAME. OLLIE KOROPCHAK-WHITE SECONDED THE
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MOTION. MOTION CARRIED, 7-0.
7. Consideration of Expanding Facade Improvement Program Target Area
Jim Thares explained that staff received an inquiry from a property owner in Block 36
stating an interest in utilizing the Facade Improvement Grant Program. They requested
an expansion of the current program target area to allow them to apply for the grant.
Thares noted their current building is not very conducive to retail.
There was consensus by members that there was limited funding in the program and it
would compete with the properties in Block 35 that may seek the funding. For the
present time the EDA would prefer to focus on Block 35.
BILL TAPPER MOVED TO NOT EXPAND THE FACADE IMPROVEMENT PROGRAM. TRACY
HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0.
8. Consideration of Update regarding Otter Creek Business Park Stormwater Drainage
Flows and Ponds
Jim Thares explained that this item was only informational. Thares noted that there are
several potential projects that may be moving forward in Otter Creek Business Park.
Thares noted that if land was sold in OCBP that the EDA may have additional costs for
drainage and ponding. There is no cost estimate at this time and is depended on the
time of development.
Steve Johnson asked if TIF could be used to finance the cost of these improvements.
Thares confirmed that a developer may request it for their financing.
9. Consideration of Update regarding EDA Meeting Stipend for Non -Council Members
Jim Thares explained that the EDA reviewed the bylaws and enabling resolutions. No
changes were required for meeting stipends. The EDA would be receiving stipends for
attendance and participation in meetings starting with this meeting (May 12, 2021).
10. Economic Development Director's Report
Jim Thares provided the Economic Development Director's Report. He noted one new
project to the prospect list — Project Emma. This proposal would be for development in
Otter Creek Business Park.
11. 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).
Property Parcel Identification Number:
A. PID: #155223000010
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B. PID: #155191000020
C. PID: #155194000010
12. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:54 P.M. JON MORHEW
SECONDED THE MOTION. MOTION CARRIED, 5-0.
Recorder: Jacob Thunander
Approved• June 9th, 2021
Attest:
Jim TJhares, Economic Development Director
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