EDA Minutes 08-29-2000
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EDA Minutes - 08/29/00
MINUTES
MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Tuesday, August 29, 2000 - 7:00 p.m.
City Hall - Academy Room
Mem bel's Present:
Viee Chair Barb Schwientek, Assistant Treasurer Ken Maus, Clint Herbst,
Roger Carlson, and Ron Hoglund.
Bill Demeules and Darrin Lahr
Executive Director Ollie Koropchak and Recorder Lori Kraemer.
Members Absent:
S talT:
Guests:
Kevin Heaton, Preferred Title property
Bruce Hamond, The Sweetest Things property
Susie Wojchouski, DAT representative
1.
Call to Order.
Vice Chair Barb Schwientek called the meeting to order at 7 PM.
2.
Consideration to approve the April 25, 2000 EDA minutes.
A MOTION WAS MADE BY RON HOGLUND AND SECONDED BY CLINT
HERBST TO APPROVE 'rHE MINUTES OF THE APRIL 25, 2000 EDA MEETING.
Motion carried with Roger Carlson abstaining.
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Consideration of adding agenda items.
None
4.
Consideration to review for approval/disapproval the DMRF application for 113 West
Broadway.
Ollie Koropchak, Executive Director, provided a brief review of the DMRF application
from Kevin and Cindy Heaton, property owners of the building occupied by Preferred
Title and Mountain Top Christian Books and Gifts. Mr. Heaton informed the EDA of his
revitalization improvement plans and asked for the EDA's direction. DAT minutes of the
August 2,2000 meeting stating the design approval and review were provided. On
August 16,2000, DAT approved one written cost estimates for this proposed
revitalization improvement as well. Koropchak noted that DA I' approved three design
options and recommended the EDA to consider amending the DMRF Guidelines to
accommodate their Plan C. Koropchak stated that if Plan C is the desired plan of the
EDA and property owner, the EDA should consider agenda item #5 first so DMRF No.
110 is approved in compliance of the guidelines.
Mr. Heaton noted a concern with stripping oil the old paint on the building and the
possibility of running into problems at that point. His concern was if the FDA and DAT
would have a problem with them re-painting if necessary. Putting in new brick was
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EDA Agenda - 8/29/00
suggested by Mike Cyr, local contractor, as well as DAT, but timing for the work is
another concern.
The EDA members discussed increasing the amount of matching funds due to the size of
this building and its prime location. It was stated that the language would have to be
worded very carefully so as not to set a precedence with other potential businesses.
Koropchak also statcd the remaining costs of this project could be financed through the
EDA loan at approximately 2% below the prime interest rate along with a lendcr.
It was also discussed that the EDA could possibly change the guidelines stating that the
amount of matching funds could not exceed a determined amount of dollars per foot. It
was also discussed that if an owner was to replace brick it, which is much more
cxpensive, the amount of matching funds would be higher, with a stipulation that it not
exceed a detcrmined amount. The members discussed amounts based on square footage
of buildings.
A MOTION WAS MADE BY KEN MAUS TO APPROVE DMRr NO. 110 FOR UP
TO 50 PERCENT OF THE REHABILITATION COSTS, NOT TO EXCEED $11,000,
FOR FRONT FACADE AND SIGNAGE AT 113 WEST BROADWAY. RON
HOGLUND SECONDED TilE MOTION. Motion carried unanimously.
This is a one time exception due to unus1..1al circumstances; Icngth of linear front footage,
prominent location (heart of town), and extreme per square footage rehabilitation costs.
There was further discussion by Koropchak who explained that if the project were to
excccd the $11,000 limit, the EDA could go up to $25,000 with the building owner
getting a loan through the bank with EDA backing at 2% below primc interest rate.
5.
Consideration to discuss and adopt a resolution amending the DMRF Guidclines,
FACADE GRANTS and REHABILITATION LOAN.
This item was not necessary.
6. Consideration to review for approval/disapproval the DMRF application for 216 West
Broadwav.
It was stated that this building has two addresses, 212 W Hroadway is for the lower unit
and 2 16 W. Broadway is the upper unit.
Ollie Koropchak, Executive Director, provided the statTreport regarding the DMRF
application from Bruce and Cynthia IIamond, property owners of the building to be
occupied by The Sweetest Things on Broadway. Mr. Hamond informed the EDA of his
revitalization improvement plans. Also provided were the August 2, 2000 DA T minutes
stating the design approval and the DA T review. On August 16,2000, DAT approved one
written cost estimate for this proposed revitalization improvement.
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EDA Agenda - 8/29/00
b)
direction of the FDA on April 25, 2000.
'('win City Die Castings - Attached copy of invoice from EDA Attorney for drafting
closing documents for the EDA loan. Copy of check Ii-om TCDC for EDA
expenditures. Copy of the FDA check of $100,000. Closing for the EDA and
City/State LOEm actually took place June 8, 2000, at the headquarters ofTCDC.
Our attorney attended the EDA and State/City loan closing at no cost because of the
attitude toward TCDC by State's attorney due to the discrepancy between the State
Bond and State Loan agreements. Also attached is a summary of the EDA and
State/City Loan disbursement and list of equipment. All loan funds have been
disbursed to TCDC. Loan paybacks are on schedule. $500,000 was paid to TCDC.
FDA Business Subsidy Criteria - The lIRA has clccted to increase the wage level
for TIF funding. The HRA decision came as the State of Minnesota increased the
wage threshold from $8.00 per hour to $9.00 per hour for non-metro. Additionally,
the HRA attorney is reviewing the business subsidy criteria for other possible
changes for compliance with the latest Legislature changes. Koropchak suggested
the EDA authorize amending the EDA Business Subsidy Criteria and increase for
the wage levels for funding consistent with the HRA and other necessary changes if
so necessary. Wright County Pminership's threshold is $10.00 per hour.
c)
A MOTION WAS MADE BY RON HOGLUND TO AUTHORIZE AMENDING THE
EDA BUSINESS SUBSIDY CRITERIA AND INCREASE FOR THE WAGE LEVELS
FOR FUNDING CONSISTENT WITH THE HRA. ROGER CARLSON SECONDED
THE MOTION. Motion carried unanimously.
d) Profile Powder Coating Company - Copies ofletter relative to this project were
provided. The EDA did not f()fmally approve the request for dollars so no costs
were incurred by the EDA. It is the hope the project wi II move forward 2001.
e) IDC Banquet - Tuesday, September 26, Vintage Grill, Wine Tasting/Speaker: Norm
Coleman. Invitation and tickets going out week of August 28.
There was further discussion on the status of the former senior center but there was nothing
further at this point. Koropchak also advised of the HRA agreement with Barry Fluth/Brad
Johnson regarding the Amoco site.
8. Other Business.
None
9. Adjournment.
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