EDA Meeting Minutes - 07/27/2022MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, July 27th, 2022 — 7:00 a.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Tracy Hinz, 011ie Koropchak-White, Hali Sittig and
Councilmembers Lloyd Hilgart and Jim Davidson
Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden
Stensgard
1. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order at
7:01 a.m.
2. Roll Call 7:00 a.m.
Mr. Johnson called the roll.
3. Consideration of Additional Agenda Items
Executive Director Jim Thares noted that agenda item 6.5 had been added to the regular
agenda following original disbursement of the agenda.
4. Consent Agenda
N/A
Regular Agenda
5. Consideration of Resolution No. 2022-23 authorizing Amended, and Restated Purchase
and Development Contract for Headwaters Development's apartment (TIF 1-42)
development, Lot 1, Block 5 Country Club Manor, First Addition, related to inclusion of
Supplemental Phase II Environmental Study document preparation, MPCA filings and
Site Contamination Remediation costs in an amount not to exceed $80,000 in a pro-
rata division for the Apts-Villas sites and a revised development schedule
Agenda items 5 and 6 were considered companion items as part of this agenda. Mr.
Thares provided an overview of the agenda item to the EDA and the public. Following
the completion of a Phase I ESA, it was found that contaminants in the soil on site were
likely, triggering the need for a Phase II ESA to be conducted. This item was brought
forth to the EDA to consider sharing the costs of the supplemental Phase II with the
developers of the proposed Country Club Manor First Addition.
Treasurer Tracy Hinz asked if there was an understanding of where the contamination
came from. Mr. Thares explained that it was almost certain that the contamination
came from the dumping of street sweepings on site by public works.
Brian Nicholson of Headwaters Development addressed the EDA and the public. Mr.
Nicholson note that this step is a precautionary step to mitigate the contamination on
site, so that the MPCA is comfortable with this proposal to move forward on the site.
JON MORPHEW MOVED TO ADOPT RESOLUTION NO. 2022-23 AUTHORIZING AN
AMENDED AND RESTATED PURCHASE AND DEVELOPMENT AGREEMENT FOR
HEADWATERS DEVELOPMENT'S APARTMENT DEVELOPMENT PROPOSAL AT LOT 11,
BLOCK 5, COUNTRY CLUB MANOR, FIRST ADDITION RELATED TO INCLUSION OF
SUPPLEMENTAL PHASE II ENVIRONMENTAL STUDY DOCUMENT PREPARATION, MPCA
FILINGS AND SITE CONTAMINATION REMEDIATION COSTS IN AN AMOUNT NOT TO
EXCEED $80,000 IN A PRO-RATA DIVISION FOR THE APTS-VILLAS SITED AND A REVISED
DEVELOPMENT SCHEDULE IN CONNECTION WITH TIF DISTRICT NO. 1-42. LLOYD
HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
6. Consideration of Resolution No. 2022-24 authorizing Amended, and Restated Purchase
and Development Contract for Headwaters Development's Twin homes (TIF 1-43)
proposal at Country Club Manor parcel (16.71 acres — 7th Street West) related to
inclusion of Supplemental Phase II Environmental Study document preparation, MPCA
filings and Site Contamination Remediation costs in an amount not to exceed $80,000
in a pro-rata division of $80,000 for the Apts-Villas sites and a revised development
schedule
Agenda items 5 and 6 were considered companion items as part of this agenda.
JON MORPHEW MOVED TO ADOPT RESOLUTION NO. 2022-24 AUTHORIZING AN
AMENDED AND RESTATED PURCHASE AND DEVELOPMENT AGREEMENT FOR
HEADWATERS DEVELOPMENT'S TWIN HOME VILLAS DEVELOPMENT PROPOSAL AT THE
COUNTRY CLUB MANOR SITE RELATED TO INCLUSION OF SUPPLEMENTAL PHASE II
ENVIRONMENTAL STUDY DOCUMENT PREPARATION, MPCA FILINGS AND SITE
CONTAMINATION REMEDIATION COSTS IN AN AMOUNT NOT TO EXCEED $80,000 IN A
PRO-RATA DIVISION FOR THE APTS-VILLAS SITES AND A REVISED DEVELOPMENT
SCHEDULE IN CONNECTION WITH TIF DISTRICT NO. 1-43. JIM DAVIDSON SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
6.5. Consideration of authorizing a Right of Entry with Headwaters Development, LLC for
Outlot A, Country Club Manor (16.71-acre EDA owned parcel) related to a
Supplemental
Phase II Study and follow up Response Action Pan (RAP) and Construction
Contingency
Plan CCP
Mr. Thares provided an overview of the agenda item to the EDA and the public. This
item is related to items 5 and 6 on the agenda and is needed for the approved work to
be completed.
TRACY HINZ MOVED TO AUTHORIZE A RIGHT OF ENTRY WITH HEADWATERS
DEVELOPMENT FOR OUTLOT A, COUNTRY CLUB MANOR FOR THE PURPOSE OF
PERFORMING SUPPLEMENTAL PHASE II ENVIRONMENTAL STUDY TASKS. HALI SITTIG
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
7. Consideration of authorizing a Short -Term Rental Agreement or a Right of Entry with
Deephaven Development for Block 52 development site related to Phase II
Environmental Study and Asbestos -Regulated (Hazardous) Materials Removal -
Mitigation and Structure Demolition preparation activities
Mr. Thares provided an overview of the agenda item to the EDA and the public. This
right of entry would allow the developer's consulting team to begin Phase II ESA work
on the Block 52 redevelopment site.
Mr. Johnson asked if the costs of the study and/or the work to be done is attributable
towards the EDA. Mr. Thares clarified that the cost of the services will be included in the
final agreement language for the EDA to support.
Mark Buchholz of Deephaven Development addressed the EDA and the public. It was
noted that Braun Intertec provided the lowest bid with the quickest turnaround time to
maintain the same timeline that the EDA and the developer had been working towards.
HALI SITTIG MOVED TO AUTHORIZE A RIGHT OF ENTRY AND/OR A SHORT-TERM RENTAL
AGREEMENT WITH DEEPHAVEN DEVELOPMENT FOR THE EDA OWNED PROPERTIES AND
BUILDINGS IN BLOCK 52 FOR THE PURPOSE OF PERFORMING A PHASE II
ENVIRONMENTAL STUDY AND/OR HAZARDOUS REGULATED MATERIAL ABATEMENT
WORK TASKS. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 7-0.
8. Economic Development Director's Report
Mr. Thares provided an overview of the agenda item to the EDA and the public.
OLLIE KORPCHAK-WHITE MOVED TO RECESS THE REGULAR MEETING OF THE
MONTICELLO EDA AND ENTER INTO A CLOSED MEETING TO DISCUSS NUMBER 9 OF THE
AGENDA. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY,
7-0.
9. Closed Meeting — Consideration of Offers or Counteroffers for the Purchase or Sale of
Real Property Pursuant to Minnesota Statute 13D.05, Subdivision
3c 3
Properties PI #: 155194000010, 155249001010
10. Adjourn
The regular meeting of the Monticello EDA was adjourned following their closed
meeting discussion.
Recorded By: Hayden Stensgard
Date Approved: October 12, 2022
ATTEST:
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Jim Th, res, ecutive Director