EDA Meeting Minutes - 09/14/2022MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 14th, 2022 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Steve Johnson, 011ie Koropchak-White, Hali Sittig and
Councilmembers Lloyd Hilgart and Jim Davidson
Commissioners Absent: Vice President Jon Morphew, Treasurer Tracy Hinz
Staff Present: Executive Director Jim Thares, Hayden Stensgard
1. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order at
6:00 p.m.
2. Roll Call
Mr. Johnson called the roll.
3. Consideration of additional agenda items
None
4. Consent Agenda
a. Consideration of Arwroving Regular Meeting Minutes — June 22, 2022
b. Consideration of Approving Workshop Meeting Minutes —July 13, 2022
c. Consideration of Approving Regular Meeting Minutes — July 13, 2022
d. Consideration of Approving Payment of Bills
OLLIE KOROPCHAK-WHITE MOVED TO APPROVE THE SEPTEMBER 14, 2022 REGULAR
MEETING CONSENT AGENDA. JIM DAVIDSON SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY, 5-0.
Regular Agenda
5. Consideration of Authorizing a Budget Amendment to WSB Relocation Services
Contract in the amount of $2,816
Executive Director Jim Thares provided an overview of the agenda item to the EDA and
the public. The original contract was approved roughly two and a half years ago. The
need for the updated budget request is partly due to an unexpected number of claims
filed for relocation.
HALI SITTIG MOVED TO AUTHORIZE AN AMENDMENT TO THE WSB PROFESSIONAL
SERVICE RELOCATION ASSISTANCE CONTRACT INCREASING THE BUDGET AMOUNT BY
$2,816. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 5-0.
6. Consideration of Sota Car Wash, LLC dba Due North GMEF Loan Subordination
($140,000) to Cor Trust Bank (CTB) for additional mortgage loan financing for Car
Wash development located at 1301 Cedar Street
Mr. Thares provided an overview of the agenda item to the EDA and the public. Due
North Car Wash requested additional funding from Cor Trust Bank. The EDA is asked to
act on the subordination, due to their connection with Due North through the Greater
Monticello Enterprise Fund (GMEF). It was noted that the additional funding would be
for the addition of a pylon sign along Highway 25, as well as additional vacuums on site.
Mr. Thares suggested that the EDA approve the subordination contingent upon Due
North agreeing to an automatic payment method with the EDA for their GMEF Loan
payments.
011ie Koropchak-White asked if the Planning Commission has already approved plans for
a pylon sign at the Due North Location. Community & Economic Development
Coordinator Hayden Stensgard clarified that the sign permit process does not require
Planning Commission review and approval. Sign permit applications are reviewed and
approved/denied at the administrative level, and the Community Development
Department has not received an application yet.
Hali Sittig asked what the status of Due North's loan payments are with the City. Mr.
Thares clarified that as of July 25, 2022, they were caught up on the June and July
payments. As of September 14, 2022, neither the August nor September payments had
been received.
LLOYD HILGART MOVED TO APPROVE A LOAN SUBORDINATION AGREEMENT BETWEEN
THE EDA AND CTB RELATED TO THE EDA'S $140,00 GMEF LOAN TO DUE NORTH In
CONNECTION WITH AN ADDITIONAL $500,000 MORTGAGE LOAN FROM CTB TO DUE
NORTH CONTINGENT ON EDA ATTORNEY REVIEW AND TO FURTHER REQUIRE NEW DUE
NORTH PARTNER, NATE PIERSON, TO COMPLETE A PERSONAL GUARANTEE FORM
SECURING THE EDA LOAN, AND REUQIRING DUE NORTH TO SET UP AN AUTOMATIC
PAYMENT PROCESS FOR THEIR MONTHLY GMEF LOAN PAYMENTS. JIM DAVIDSON
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0.
6.5 Consideration of Authorizing Party Wall Agreement between the EDA, Block 52
Holdings, LLC, Buchholz Exchange, LLC and Norgren Exchange, LLC and John Thorud
related to common shared wall between 121 and 149 West Broadway
Mr. Thares provided an overview of the agenda item to the EDA and the public. This
item was brought forth to the EDA due the Block 52 Redevelopment Project exposing a
connection wall during the demolition process. The end building to be removed is
connected to a building that will remain on the block. The party wall agreement will help
ensure the exposed wall will be brought to the standards needed to become an exterior
wall.
LLOYD HILGART MOVED TO AUTHORIZE ENTERING INTO THE PARTY WALL AGREEMENT
RELATED TO THE SHARED COMMON WALL BETWEEN 121 AND 149 WEST BROADWAY
WITH BLOCK 52 HOLDINGS, LLC, BUCHHOLZ EXCHANGE, LLC, NORGREN EXCHANGE, LLC
AND JOHN THORUD. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 5-0.
6.75 Consideration of Resolution No. 2022-28 Approving Restated Purchase and
Development Contract containing a Grant and Business Subsidy Agreement with Block
52 Holdings, LLC, Buchholz Exchange, LLC and Norgren Exchange, LLC (fka Deephaven
Development) for Lot 2, Block 1, Block 52 First Addition, in the amount of $1,351,617
related to a proposed Mixed -Use Commercial -Residential Development in connection
with and supported by Redevelopment TIF District No. 1-45
Mr. Thares provided an overview of the agenda item to the EDA and the Public. The
need for the restated Purchase and Development Contract related to the EDA land on
Block 52 in Monticello, is due to the addition of two developer equity partners being
added to the overall development project. Originally, it was understood that the
developer would purchase the property for $1, and subsequently pay the EDA back
through the TIF District. The restated purchase and development contract will include
the upfront cost of the land. This is a request made by the developer to satisfy IRS
(Internal Revenue Service) 1031 Exchange rules.
Mr. Johnson asked if payment for the land up front will include similar limitations
towards how those funds can be used in the future when collected over time through
the TIF District. Mr. Thares clarified that there are no restrictions on what the EDA can
do with the money received from the land sale. The funds will go into the EDA General
Fund.
JIM DAVIDSON MOVED TO ADOPT RESOLUTION NO. 2022-28 AUTHORIZING A RESTATED
PURCHASE AND REDEVELOPMENT CONTRACT CONTAINING A GRANT AND BUSINESS
SUBSIDY AGREEMENT WITH BLOCK 52 HOLDINGS, LLC, BUCHHOLZ EXCHANGE, LLC AND
NORGREN EXCHANGE, LLC FOR THE CONVEYANCE OF LOT 2, BLOCK 1, BLOCK 52 FIRST
ADDITION, IN THE AMOUNT OF $1,351,617 RELATED TO A PROPOSED MIXED -USE
COMMERCIAL -RESIDENTIAL DEVELOPMENT IN CONNECTION WITH AND SUPPORTED BY
REDEVELOPMENT TIF DISTRICT NO. 1-45. OLLIE KOROPCHAK-WHITE SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY, 5-0.
Further discussion ensued related to the need for a potential special meeting on Friday,
September 16, 2022. The EDA unanimously decided that instead of holding a special
meeting on Friday to review and consider, they would agree to the revised documents
at issue contingent upon review and advice from the Monticello EDA Attorney.
7. Economic Development Manager's Report
Mr. Thares provided an overview of the agenda item to the EDA and the public.
8. Adjourn
OLLIE KOROPCHAK-WHITE MOVED TO ADJOURN THE REGULAR MEETING OF THE
MONTICELLO EDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 7:01 P.M.
Recorded By: Hayden Stensgard /0
Date Approved: November 9, 2022
m Thar�s, Executive Director