EDA Minutes 07-14-2021MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, July 14th, 2021— 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie
Koropchak-White, Lloyd Hilgart and Jim Davidson
Staff Present: Jim Thares, 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
a. Consideration of Approving Regular Meeting Minutes —June 9, 2021
Recommendation: Approve Regular Meeting Minutes—June 9, 2021.
b. Consideration of Approving Payment of Bills
Recommendation: Approve Payment of Bills through June.
c. Consideration of Resolution #2021-09 Modifying TIF District #1-22 — Parcel
Ramnunk
Recommendation: Adopt Resolution #2021-09 expressing support for the
modification of TIF District #1-22 — Parcel Removals.
d. Consideration of Modifying Bill Tapper's effective EDA Resignation date to
August 31, 2021
Moved to Regular Agenda.
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA WITH THE REMOVAL OF
ITEM D. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED, 7-0.
Economic Development Authority Minutes —July 14th, 2021 Page 1 1 3
Regular Agenda
4. Consent Agenda Item Removed
Item d. Consideration of Modifying Bill Tapper's effective EDA Resignation date to
August 31, 2021
Jim Thares explained at the end of the June meeting Bill Tapper gave his resignation and
there was some confusion about his effective end date. Thares clarified that it is the
intention to keep a full EDA through the end of the summer and Tapper has agreed to do
so until the position is filled. The city is currently accepting new Commissioner
applications and with council approval it could take until September to seat a new
member.
OLLIE KOROPCHAK-WHITE MOVED TO ACCEPT THE MODIFIED RESIGNATION DATE FOR
BILL TAPPER TO AUGUST 31, 2021, OR UNTIL HIS SEAT IS FILLED. MOTION SECONDED BY
TRACY HINZ. MOTION CARRIED, 7-0.
5. Consideration of Pre -Application for GMEF Loan Modification in the amount of
$62,555.22 for Rustech Brewing and Authorizing Loan document preparation
Jim Thares explained that a pre -application for GMEF loan was received from Rustech
Brewing. The applicant is seeking a loan in the amount of $62,555.
Rustech is seeking funding to pursue an expansion of its microbrewery located at 105
West 3rd Street in Monticello. Bill and Penny Burt, owners of Rustech introduced
themselves and provided background information regarding how Rustech started. They
faced challenges in 2020 due to multiple mandated shutdowns and reduced capacity
regulations. Now that operations are returning to normal, pre -pandemic levels, they are
continuing to grow and having difficulty keeping up with the demand. They believe the
growth over the next 36 -months will create an additional 4 FTE jobs.
When they first opened for business, they were renting a 2,000 square foot space. The
key element in the capacity expansion is the opportunity to purchase their space plus the
adjacent suite to expand to a total of 4,000 square feet. Included in the packet is an
illustration showing how they will use the additional space.
The EDA supported Rustech's startup initially with a $75,000 GMEF loan for equipment
purchases. The remaining loan balance is $67,554.24. The EDA is asked to review the
GMEF pre -application submittal and indicate whether it has interest in accepting a full
application from Rustech Brewing for the loan request of $62,555.22.
Economic Development Authority Minutes —July 14th, 2021 Page 2 1 3
There was consensus by the EDA to accept a full application for a GMEF Loan from Rustech
Brewing.
6. Consideration of the Draft 2022 EDA Budget Proposal and Property Tax Lew Amount;
Review and Approval Process
Jim Thares noted that this was the EDA's annual consideration for the HRA Special Benefit
Levy for the EDA budget and consideration for the 2022 budget. The property tax levy for
2022 is proposed at $388,000. Thares also noted the proposed 2022 EDA General Fund
budget is proposed to be $460,000. Staff encourages the EDA to consider its 2021 Work
Plan goals and overall mission to facilitate economic development and redevelopment and
housing activities that expand the tax base, increase employment opportunities, and create
a vibrant economy as part of its decision process.
The consensus of the EDA is to support the maximum amount of the levy.
7. Economic Development Director's Report
Jim Thares provided the Economic Development Director's Report as provided in the
agenda.
8. Closed Session - Consider Offers or Counteroffers for the purchase or sale of Real or
Personal Property Pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3)
Property Address:
1. PID #155171000060
2. PID #155171000050
9. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:19 P.M. LLOYD HILGART
SECONDED THE MOTION. MOTION CARRIED, 7-0.
Recorder: Beth Green
Nor
Approved: August 11, 2021
Attest:
res, Economic Development Director
Economic Development Authority Minutes —July 14th, 2021 Page 3 1 3