EDA Minutes 09-08-2021MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 8th, 2021— 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Treasurer Jon Morphew, Tracy
Hinz, 011ie Koropchak-White, and Hali Sittig
Council Representatives Present: Jim Davidson
Council Representatives Absent: Lloyd Hilgart
Staff Present: Executive Director Jim Thares
1. Call to Order
Chairperson Steve Johnson called the Regular Meeting of the Monticello EDA to order at
6:00 p.m.
2. Roll Call
3. Swearing in of Hali Sittig as new EDA Commissioner
Economic Development Manager Jim Thares swore in Hali Sittig as new Commissioner of
the EDA
4. Consideration of additional agenda items
N/A
5. Consent Agenda
a. Consideration of Approving Regular Meeting Minutes —August 11, 2021
b. Consideration of Approving Special Meeting Minutes — August 11, 2021
c. Consideration of Approving Regular Meeting Minutes —August 25, 2021
d. Consideration of Payment of Bills
JIM DAVIDSON MOVED TO ACCEPT THE CONSENT AGENDA; TRACY HINZ SECONDED THE
MOTION. MOTION CARRIED 6-0
Regular Agenda
6. Consideration of Resolution #2021-12 Authorizing Interfund Loan for advance of
certain costs in connection with establishing TIF District #1-42 related to Karlsburger
Foods' expansion proposal
Jim Thares explained that the Interfund Resolution is something the EDA has the
opportunity to utilize and is being asked to consider. Karlsburger Foods has been
discussing potential expansion plans with City staff since early July and further indicate
that they are moving forward with process. Thares noted that the EDA incurred minor
costs back mid -July due to their attorney looking at original submittals by Karlsburger.
In order to get these costs covered by the tax increment, the interfund resolution must
be completed within 60 days of those bills. The 60-day mark is around September 12,
2021. Tabling this item was not recommended by Thares. Platting the lot Karlsburger
will use is also expected to cost about $15,000. These costs may also be supported
through the interfund loan resolution. Thares continued to explain the resolution
includes a $65,000 cost estimate which should sufficient to cover any other
expenditures. Karlsbuger will also be asked to submit the required fee for the TIF
application that will help cover some costs that are directly related to tasks initiated
once the submittal is received.
TRACY HINZ MOVED TO ADOPT RESOLUTION 2021-12 AUTHORIZING INTERFUND LOAN
FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH ESTABLISHING TIF DISTRICT
#1-42 RELATED TO KARLSBURGER FOODS' EXPANSION PROPOSAL; OLLIE KOROPCHAK-
WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
Jon Morphew asked Jim Thares if any costs have been incurred already. Jim Thares
explained that the attorney has sent a bill for a small fee, which has not been paid yet.
Jon Morphew asked how the EDA is impacted if Karlsburger decides not to go through
with the expansion. Jim Thares explained staff are monitoring Karlsburger's intentions
and aligning the tasks related to the Karlsburger proposal with receipt of an actual TIF
Business Subsidy application. The TIF Business Subsidy guidelines require a $10,000 fee
to be submitted along with the application. The consultants are being directed to not
begin work on various tasks until an application from Karlsburger Foods has been
received.
Steve Johnson asked Jim Thares if all the costs up to $65,000 will be covered by the TIF
increment. Jim Thares said yes but it would not be until the tax increment begins to
flow, which is about 18 to 24 months after the date of project completion.
MOTION CARRIED UNANIMOUSLY 6-0.
7. Economic Development Manager's Report
Economic Development Manager Jim Thares gave the Economic Development
Manager's Report. Thares gave an update on the Deephaven project, the first building
of the apartment complex has been completed and fully leased in July. The second
building began near the end of July. The third Phase is also expected to begin in the next
month.
TEDI and TED grant applications have been submitted for the Block 52 redevelopment.
Thares explained that these grant programs are extremely competitive. The City should
know by mid -November if either application is approved. If the funds are awarded, the
City has up to three years to complete the work activities.
Jensen Precision Machining is undergoing an expansion. Nuss Truck and Equipment is
also progressing on their new facility along Chelsea Road and 1-9. Neither sought EDA
assistance. Thares provided an overview of the WSB Economic Development Assistance
report. He also noted that MN -DEED received the City's proposal for Project Ecosystem.
WSB was recently asked to complete a concept site layout on a parcel in OCBP for the
Project Integrity proposal. This site is about 10 to 11 acres and is Shovel Ready.
Thares also noted that he is registered for the 2021 EDAM conference and will bring
back any information worth sharing to the Commission. Steve Johnson noted that this
conference is very important and worth the time and money.
John Morphew asked for an update on the facade applications. Thares said that they
are working with the architect on the Hammer's initial improvement proposal. Al Loch
has also submitted a pre -application for property he owns on Broadway. Both of these
proposals look like the actual work will be completed in 2022.
8. Adjourn
TRACY HINZ MOVED TO ADJOURN THE MEETING; SECONDED BY JIM DAVIDSON.
MOTION CARRIED UNANIMOUSLY 6-0. MEETING ADJOURNED AT 6:28
Recorder: Hayden Stensgar
Approved• June 9th, 2021
Attest: l
hares, Economic Development Director