EDA Meeting Minutes - 02/23/2022MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, February 23, 2022 — 7:00 a.m.
Mississippi Room, Monticello Community Center
Members Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Tracy Hinz, 011ie Koropchak-White, and Councilmembers Lloyd
Hilgart and Jim Davidson
Members Absent: Hali Sittig
Staff Present: Executive Director Jim Thares, Angela Schumann, and Hayden
Stensgard
1. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order at
7:00 a.m.
2. Roll Call
Mr. Johnson called the roll.
3. Consideration of Additional Agenda Items
None
4. Consent Agenda
a. Consideration of Adopting 2022-2024 EDA Workplan
LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA. TRACY HINZ SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
Regular Agenda
5. Consideration of Adoatine Resolution #2022-03 Authorizing Establishment of
Affordable Housing Tax Increment Financing (TIF) District 1-42 to sum)ort Headwaters
Development's 108-unit Apartment proposal
Economic Development Manager Jim Thares provided an overview of the agenda item.
Mr. Thares noted that both Item #'s 5 and 6 on the agenda are connected and a part of
the same proposed development project.
Michael Hoagberg of Headwaters Development said that TIF is a new tool for
Headwaters and staff has been helpful in the process in preparing the provided
information and plan.
Mr. Johnson asked if the schedule for development is a realistic timeline. Mr. Hoagberg
said there has been a lot of planning to this point and though the timeline is aggressive,
it will be relatively close to the expected dates.
Mr. Thares mentioned the EDA is still waiting on the vacant land appraisal and staff will
be expecting that information to come in within the next week.
OLLIE KOROPCHAK-WHITE MOVED TO ADOPT RESOLUTION #2022-03, AUTHORIZING
ESTABLISHMENT OF AFFORDABLE HOUSING TAX INCREMENT FINANCING DISTRICT 1-42
AND ADOPTING A TAX INCREMENT FINANCING PLAN RELATED TO THE HEADWATERS
DEVELOPMENT 108-UNIT APARTMENT PROPOSAL. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
6. Consideration of Adopting Resolution #2022-04 Authorizing Establishment of
Affordable Housing Tax Increment Financing (TIF) District 1-43 supporting Headwaters
Development's 60-unit Twin Home proposal
Mr. Thares provided an overview of the agenda item to the EDA and noted that this
item is in direct connection with item #5 on the agenda.
TRACY HINZ MOVED TO ADOPT RESOLUTION #2022-041 AUTHORIZING ESTABLISHMENT
OF AFFORDABLE HOUSING TAX INCREMENT FINANCING DISTRICT 1-43 AND ADOPTING
A TAX INCREMENT FINANCING PLAN RELATED TO THE HEADWATERS DEVELOPMENT 60-
UNIT TWIN HOME PROPOSAL. JON MORPHEW SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY, 6-0.
7. Consideration of Adopting Resolution #2022-05 Requesting the City Council Call for a
Public Hearing regarding the Establishment of a Redevelopment Tax Increment
Financing (TIF) District 1-45 related to the Deephaven-Buchholz Block 52
Redevelopment Proposal
Mr. Thares provided an overview. The developers of Block 52 submitted a TIF
application for review and consideration. Mr. Thares invited the developers to speak.
Mark Buchholz, of Deephaven Development LLC, explained to the EDA why Block 52 was
chosen for their redevelopment efforts. He anticipates strong coordination between
the developer team and the EDA-City moving forward with the redevelopment project.
Mr. Buchholz ensured the group that the surface parking proposed on the site is not
intended only to be for the private tenants of the building but rather the whole
community who come to visit the downtown area in Monticello.
Mr. Johnson asked why the proposed project had retail stores located along TH 25 and
office space along Broadway Street and not vice versa. Brendan Muldoon, of Property
Resources Group, said traffic counts were a large factor in the location of commercial
uses on the site. MN#TH 25 is a busy highway and offers significant visibility to the
future tenants who occupy the retail spaces as shown in the proposal concept elevation.
Community Development Director Angela Schumann noted that public improvements
near Block 52 are also a priority by the City Council for the upcoming years and they will
be important factors in proceeding with this redevelopment project.
OLLIE KORPCHAK-WHITE MOVED ADOPT RESOLUTION #2022-05, REQUESTIING THE CITY
COUNCIL CALL FOR A PUBLIC HEARING REGARDING THE ESTABLISHMENT OF A
REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT 1-45 RELATED TO THE
DEEPHAVEN-BUCHHOLZ BLOCK 52 REDEVELOPMENT PROPOSAL. JIM DAVIDSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
Jim Davidson left the meeting at 7:56 a.m., leaving five (5) voting members to continue
with the meeting.
S. Consideration of Authorizing entering into a Financial Planning Agreement with
Northland Securities, Inc. (NSI) related to proposed Redevelopment TIF District 1-45 in
connection with Block 52 Redevelopment efforts
Mr. Thares provided an overview of the agenda item to the EDA.
LLOYD HILGART MOVED TO APPROVE ENTERING INTO A FINANCIAL PLANNING
AGREEMENT WITH NORTHLAND SECURITIES, INC. FOR SERVICES RELATED TO THE
CREATION OF THE PROPOSED REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT
1-45. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
9. Consideration of Adopting Resolution #2022-06 Calling for a Public Hearing related to
a proposed land sale of EDA owned property to Suburban Manufacturing, Inc.
Mr. Thares provided an overview of the item. The public hearing is required step for the
EDA in order to move forward with selling property.
TRACYY HINZ MOVED TO ADOPT RESOLUTION #2022-06, CALLING FFOR A PUBLIC
HEARING ON APRIL 13, 2022 REGARDING TO A PROPOSED LAND SALE TO M&B ON
CHELSEA RELATED TO AN EXPANSION PROPOSAL BY SUBURBAN MANUFACTURING.
LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0.
10. Consideration of Amending Resolution #2022-01 Authorizing submittal of a
Redevelopment Grant Application to MN -DEED in the amount of $517,500 related to
Block 52 Redevelopment efforts
Mr. Thares provided an overview. The clarification in the resolution is related to the
designated title of applicant and legal sponsors of the application. The Minnesota
Department of Employment and Economic Development reached out to City staff and
ask for an amendment to the resolution to clarify.
JON MORPHEW MOVED TO ADOPT AMENDED RESOLUTION #2022-01, AUTHORIZING
SUBMITTAL OF A REDEVELOPMENT GRANT APPLICATION TO MN -DEED IN THE AMOUNT
OF $517,500. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 5-0.
11. Economic Development Director's Report
Mr. Thares provided an overview of the agenda item to the EDA. A noted piece of
information was the lease agreement between the City and Preferred Title, Inc. for
storage space for documents. Quotes were received for storage space, and it was
determined that the storage of the materials in the former DMV Building was a more
affordable option for both the City and Preferred Title, Inc. during the relocation
process.
Tracy Hinz asked about the level of security in that building and if it was adequate to
store items for the Preferred Title, Inc. Mr. Thares noted that this information will be
verified. He is coordinating with Jerry Hanson, City of Monticello Facilities Director to
who also offices in the building. b
011ie Koropchak-White asked if this was a long-term solution. Mr. Thares said this was
not a long-term solution but could be a two-year solution to a longer term fix.
12. Adjourn
TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA.
JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0.
MEETING ADJOURNED AT 8:10 A.M.
Recorded By: Hayden Stensgard_�
Attest:
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Jim Thar s, Executive Director