EDA Minutes 02-11-1997
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MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, February 11,1997 -7:00 p.m.
City Hall
MEMBERS PRESENT:
President Ron Hoglund, Assistant Treasurer Ken Maus, Clint
Herbst, and Roger Carlson.
MEMBERS ABSENT:
Vice President Barb Schwientek, Bill Demeules, and At Larson.
STAFF PRESENT:
Executive Director Ollie Koropchak.
STAFF ABSENT:
Treasurer Rick Wolfsteller.
1. CALL TO ORDER.
President Hoglund called the EDA meeting to order at 7:00 p.m.
2. CONSIDERATION TO APPROVE THE OCTOBER 24, 1996 EDA MINUTES.
Ken Maus made a motion to approve the October 24, 1996 EOA minutes. Seconded by
Clint Herbst and with no corrections or additions, the minutes were approved as written.
3.
CONSIDERATION TO ELECT 1997 EDA OFFICERS.
Ken Maus made a motion accepting the letter of resignation from EDA Commissioner AI
Larson. Clint Herbst seconded the motion and with no further discussion, the motion was
passed unanimously.
Ken Maus made a motion to elect Ron Hoglund, President; Barb Schwientek, Vice
President; Rick Wolfsteller, Treasurer; Ken Maus, Assistant Treasurer; and Ollie
Koropchak, Secretary of the EDA for 1997. Clint Herbst seconded the motion. Further
discussion requested the Housing and Redevelopment Authority (HRA) recommend a
commissioner ofthe HRA to the City Council for appointment to the EDA. This as a
replacement for the EDA seat vacated by At Larson. With no further discussion, the
motion passed unanimously.
4. CONSIDERATION TO REVIEW AND ACCEPT THE YEAR-END EDA FINANCIAL
STATEMENTS. ACTIVITY REPORT. AND PROPOSED 1997 BUDGET.
With Wolfsteller being absent, Koropchak reviewed the year-end EOA financial
statements with commissioners. The December 31, 1996 Fund Balance ofthe Statement
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EDAMINUTES
FEBRUARY 11, 1997
of Revenues, Expenditures, and Changes was $942,170.58. The increase in revenue was
predominantly due to disbursements from the Liquor Fund Appropriation and the UDAG
Cash Balance Funds for the approved $70,000 SELUEMED loan and $100,000 Tapper
loan, respectively. The December 31, 1996 GMEF Balance Sheet recorded a Cash-In-
Bank balance of$275,328.17.
The 1997 Cash Flow Projections were based on historical EDA data and projected an
expected cash balance of$331,289.01 on December 31, 1997. Koropchak noted under
Expenditures, the Notes Payable - Liquor Fund Reimbursement of$25,000. This
projected reimbursement was based on the August 6, 1996 EDA minutes: The
commissioners approved a motion for the EDA to pay back the City the amount disbursed
from the Liquor Fund ($383,000). This the original intent of the EDA and as an act of
good faith. The annual payback in an amount not-to-exceed $50,000, provided the year-
end GMEF non-committed balance is greater than $250,000. Payback subject to annual
review and approval by the EOA. EOA members discussed authorizing the proposed
$25,000 payback for year-end 1996 as per the 1997 Cash Flow Projections.
Commissioners felt perhaps a better use ofthe $25,000 would be to raise the maximum
GMEF loan amount from $100,000 to $125,000 or perhaps create an independent loan
fund for commercial/retail businesses to support the implementation of the Monticello
Downtown/Riverfront Plan under study. EDA members recommended the description of
the line item for Notes Payable - Liquor Fund Reimbursement be changed to read Notes
Payable - Liquor Fund with an asterisk. The asterisk noting the EDA will review for
authorization to reimburse the $25,000 at the October 1997 EDA meeting.
The EDA members reviewed the year-end activity report. Ken Maus made a motion to
accept the Statement of Revenue, Expenditures, and Changes in the Fund Balance, the
Balance Sheet, and the Activity Report for year-end December 31, 1996, and the 1997
Cash Flow Projection. Acceptance of the 1997 Cash Flow Projection was subject to the
recommended changes stated above. Roger Carlson seconded the motion and with no
further discussion, the motion passed unanimously. The end-year reports to be submitted
to the City Council on February 24, 1997, for compliance of the EDA Ordinance.
5.
CONSIDERATION TO REVIEW YEAR-END FUND BALANCES OF THE GMEF.
UDAG. AND ERG FUNDS.
Koropchak reported all paybacks of local and state loans are current. The year-end cash
balance for the three sources of funds available to the EDA are GMEF, $275, 328.17;
UDAG, $68,896.12; and SCERG-Aroplax, $129,483.04 for a total of$473,707.33.
Additionally, Koropchak noted the last date of payback to the city from the SCERG is
January, 1997. The annual UDAG payback is $27,971.40 and ends January 2000. This
being an informational item, no action was taken by the EDA.
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EDA MINUTES
FEBRUARY 11,1997
6. CONSIDERATION TO REVIEW THE GMEF GUIDELINES FOR POTENTIAL
AMENDING.
Commissioners briefly discussed the GMEF fee criteria of not- to-exceed 1.5% ofthe loan
or minimum fee of$200. According to local banks, the lender's fee is running about 1.0%
ofthe loan. Commissioners agreed the GMEF fee criteria did allow flexibility since the
EDA retains the right to reduce or waive the loan fee or portion of the loan fee.
Previously, the EDA has maximized the 1.5% fee. Ken Maus made a motion to review
the loan size criteria at a future meeting. Clint Herbst seconded the motion and with no
further discussion, the motion passed unanimously.
7. CONSIDERATION TO REVIEW THE DRAFT COpy OF THE 1997 ECONOMIC
DEVELOPMENT PRIORITIZATION WORKSHEET FOR INPUT.
EDA members received a copy ofthe prioritization worksheet and a copy ofthe City of
Big Lake Revolving Loan Fund Guidelines.
Commissioners recognized the higher failure rate of retai)jcommercial businesses which
therefore poses a greater risk for payback ofloans. The EDA agreed to explore for
establishment a commercia)jretail revolving loan program for real property rehabilitation
and the potential to develop policy guidelines which would encourage owners to meet
Standard Building Codes and the American Disability Act Codes and increase the City's
tax base. The EDA did not mention an interest to develop a loan program for facade
improvements.
The second interest ofthe EDA was to explore for establishment a Redevelopment
Loan/Grant. Example: $100,000 improvement costs, $25,000 grant. To encourage
commercia)jretail redevelopment.
8. OTHER BUSINESS.
None.
9. ADJOURNMENT.
The EDA meeting adjourned at 8 :'30 p.m.
O~ '<'^~S--,_
Ollie Koropchak, Executive Director
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