EDA Minutes 08-25-2021MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, August 25, 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, 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 Authorizing WSB Professional Services Quote in the Amount
of $15,000 for Surveying and Plat Preparation related to Karlsburger Foods
Expansion Proposal
Recommendation: Accept quote from WSB for surveying and plat preparation in
OCBP related to the Karlsburger Foods' expansion proposal in the amount of
$11,600 plus related passthrough service fees not to exceed $3,400.
b. Consideration of Authorizing Northland Securities, Inc. (NSI) Professional
Services Quote in the Amount of $8,600 related to TIF District 1-42 for
Karlsburger Foods Expansion Proposal
Recommendation: Authorize NSI Financial Planning Agreement for services
related to creation of economic development TIF District 1-42 for the Karlsburger
Foods' expansion proposal.
TRACY HINZ MOVED TO APPROVE THE CONSENT AGENDA. MOTION SECONDED BY OLLIE
KOROPCHAK-WHITE. MOTION CARRIED, 7-0.
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Regular Agenda
5. Consideration of Resolution #2021-11 Approving a GMEF Loan Agreement between
the EDA ad co -borrowers RRG Holdings, LLC and Sota Car Wash, LLC in the amount of
$140,000
Jim Thares explained that RRG Holdings LLC and Sota Car Wash LLC, co -borrowers,
recently submitted a GMEF Loan application seeking $140,000 to fill a funding gap for a
proposed car wash facility. The cost of the development proposal is expected to total
$4,619,000. The proposed development site is the former Danner semi -truck terminal and
repair shop located at 1301 Cedar Street. Under the City zoning ordinance, a car wash, as
proposed, is a permitted use in the B-3 Zoning District.
The applicant has indicated that the facility would be a new generation style operation
and will use enhanced technology and design features ensuring fast, high -quality car
washes in a customer -centric and friendly environment. Besides offering differentiated
service levels and prices, Sota Car Wash's business model includes a membership
rate/month which allows numerous washes every 30 days. The business plan includes
market research with current and projected demographics and relies on the visibility of
the site to enable it to capture a percentage of the nearly 25,000 to 30,000 vehicles
traveling past the facility via MNTH 25 daily.
Sota Car Wash is proposing to create 4 new FTE jobs and 4 new part-time jobs over the
next two years. In addition to job creation, a community benefit is the redevelopment of
a visible 1.16-acre site. Currently, the site has older non -conforming metal buildings. It
has a property value of $450,100 and generates approximately $11,000 in property taxes.
Under the proposed redevelopment, the value may increase substantially and generate
more than twice as much in annual property taxes. The loan term details are highlighted
in the staff report included in the agenda packet.
Thares explained that the GMEF loan request is recommended because the financial
projections indicate a high expectation of repayment. The loan proposal is a critical
component of the funding for a new business in the community. It also merits approval
due to the overall context of the proposed gap financing structure. The community's
economic benefits include new job creation, an increase in the tax base and
redevelopment of a visible site that is currently occupied by an older metal building
structure.
TRACY HINZ MOVED TO ADOPT RESOLUTION #2021-11 AUTHORIZING GMEF LOAN
AGREEMENT AND RELATED MORTGAGE BETWEEN THE EDA AND RRG HOLDINGS, LLC
AND SOTA CAR WASH, LLC, COBORROWERS, IN THE AMOUNT OF $140,000. MOTION
SECONDED BY JON MORPHEW. MOTION CARRIED, 7-0.
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6. Consideration of Accepting TIF Business Subsidy Application and Authorizing Call for a
Public Hearing by the Monticello City Council related to establishing TIF District 1-42 for
Karlsburger Foods' Expansion Proposal.
Jim Thares reported that he had received an email from Karlsburger Foods at mid -day on
Tuesday asking that this item be removed from the agenda. He further stated that
Karlsburger is still working on cost estimates with the contractor(s) and wants to get that
information clarified before taking any next steps regarding the TIF District formation
process. They apologize for the late notice of the request.
Staff felt that it would be best to simply table the item rather than redoing the agenda.
EDA members concurred that they are fine with that approach.
LLOYD HILGART MOVED TO TABLE CONSIDERATION OF THE KARLSBURGER TIF —
BUSINESS SUBSIDY APPLICATION TO A FUTURE MEETING. MOTION SECONDED BY JIM
DAVIDSON. MOTION CARRIED, 7-0.
7. Economic Development Director's Report
Jim Thares reviewed the Economic Development Director's Report included in the
agenda packet.
8. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:52 P.M. MOTION SECONDED BY
JIM DAVIDSON. MOTION CARRIED, 7-0.
Recorder: Beth Green
,§
Approved: n September 8, 2021
Attest: cAA--
res, Economic Development Director
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