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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 Economic Development Authority Minutes — May 12th, 2021 Page 1 14 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 Economic Development Authority Minutes — May 121h, 2021 Page 2 14 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 Economic Development Authority Minutes — May 12th, 2021 Page 3 14 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 Economic Development Authority Minutes — May 12t", 2021 Page 4 14