EDA Minutes 12-13-2005
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, December 13, 2005 - 4:00 p.m.
City Hall - Academy Room
MEMBERS PRESENT:
President Bill Demeules, Vice President Barb Schwientek, Council
Members Wayne Mayer and Tom Perrault, Ron Hoglund, and Darrin
Lahr.
MEMBER ABSENT: Susie Wojchouski.
STAFF PRESENT:
Treasurer Rick Wolfsteller and Executive Director Ollie Koropchak.
1. Call to Order.
President Demeules called the EDA meeting to order at 4:05 p.m.
2. Consideration to aoorove the November 29.2005 EDA minutes.
Unavailable, no action.
3.
Consideration of adding or removing agenda items.
Tom Perrault asked about the application of 1.(b) on page 4 of the GMEF Guidelines and stated
the federal minimum wage of$5.15 at 160% is $8.24 ph and the state minimum wage of$6.15 at
160% is $9.84 ph. If was noted the GMEF wage level criteria includes the word or. At least
90% of the jobs created must pay a wage of the higher of$9.00 per hour, or at least 160% of the
federal minimum wage, exclusive of benefits, for individuals over the age of 20 during the term of
the assistance. Koropchak recalled the federal minimum wage level was included to meet the
requirements of the Green Acres Clause. The Federal HOD - low to moderate income levels are
noted within Section V. page 7.
4.
Public Hearing on the orooosed amendments to the Monticello EDA Business Subsidv Criteria
and consideration to aoorove.
Koropchak informed the EDA commissioners that the City Council adopted the resolution
requesting the EDA be designated as the local development organization and approved the
proposed amendments to the GMEF Guidelines on Monday, December 12, 2005. Mayor Herbst
did ask if designation of the EDA as a LDO would limit the City's chances of being awarded
another grant in the future. Koropchak responded "no", as Carol Pressley-Olson was excited to
hear of the potential re-use of the federal dollars. The State likes to see the re-use of dollars and
the first re-use is accountable to the State via a report. The State enjoys working with the City of
Monticello as they know the dollars are circulated.
Koropchak noted the public hearing notice appeared in the local newspaper on December I and
8,2005, satisfying the notice requirement for a public hearing. A public hearing is required to
amend the EDA Business Subsidy Criteria.
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EDA Minutes - 12/13/05
Perrault asked: At the proposed interest rates of 0% or up to 3 % below prime rate, would the
EDA lose money? The EDA requires a minimum $200 application fee and the applicant is
responsible to reimburse the EDA for costs associated with preparation of the loan documents
prepared by the EDA attorney. The reimbursement is collected at time of closing. Therefore,
Koropchak did not foresee the EDA would lose money other then an inflation factor.
President Demeules opened the public hearing. With no one present to offer public comments or
questions, the public hearing was closed.
Barb Schwientek made a motion to approve the proposed amendments to the Monticello
EDA Business Subsidy Criteria as presented: 0% interest rate with balloon payment in three
years or up to 3% below prime rate with balloon payment in five years. Applicant subject
to Federal requirements including 51% of jobs must be made available to or held by LMI
persons. Also requested submission of the Designated WO Council Resolution and
amended Criteria to DEED for approval. Darrin Lahr seconded the motion and with no
fUrther discussion, the motion carried. Koropchak indicated a cover letter would be drafted to
accompany the resolution and criteria which will be mailed to the State tomorrow requesting
approval. Schwientek asked when the EDA could expect a response from the DEED.
Koropchak said she did not know but would follow-up.
5.
Other Business.
Koropchak reiterated the written Director's report.
Demeules indicated his willingness to serve another term on the EDA and Lahr indicated his
willingness to serve another term on the HRA. These names will be recommended to the City
Council at the fust meeting in January 2006 for appointment on the respective commission.
6. Adiournment.
Tom Perrault made a motion to adjourn the EDA meeting. Darrin Lahr seconded the
motion and with no further business, the meeting adjourned at 4:20 p.m.
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Ollie Koropchak, Recorder
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