EDA Meeting Minutes - 11/09/2022MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, November 9th, 2022 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Treasurer Tracy Hinz, 011ie Koropchak-
White, Hali Sittig and Councilmembers Lloyd Hilgart and Charlotte
Gabler
Commissioners Absent: Vice -President Jon Morphew
Staff Present: Executive Director Jim Thares, Angela Schumann
1. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order at
6:07 p.m.
2. Roll Call
Mr. Johnson called the roll.
3. Consideration of additional agenda items
None
4. Consent Aeenda
a. Consideration of Approving Regular Meeting Minutes — August 29, 2022
b. Consideration of Approving Regular Meeting Minutes — September 14, 2022
c. Consideration of Approving Payment of Bills
LLOYD HILGART MOVED TO APPROVE THE NOVEMBER 9, 2022 REGULAR MEETING
CONSENT AGENDA. OLLIE KORPCHAK-WHITE SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY, 6-0.
Regular Agenda
5. Consideration of Resolution No. 2022-33 Approving an Option Agreement Granting
Washburn Computer Group, Inc. the Option to Purchase a Vacant 1.46 -acre Parcel
Located at 9699 Fallon Avenue
Executive Director Jim Thares provided an overview of the agenda item to the EDA and
the public. A previously approved option agreement (October 12, 2022) with Washburn
Computer Group is being presented for consideration of modifying the pricing format.
With the approval of the option agreement, Washburn Computer Group would pay the
EDA $55,000 for year one and then $15,000 for years two and three. Washburn is
seeking the property to allow it to pursue a warehouse facility expansion in 2025 or
2026.
Mayor Lloyd Hilgart noted that given the discussion at the workshop prior to the regular
meeting, he would proceed to make a motion with the option price of $50,000 and not
$55,000.
STEVE JOHNSON MOVED TO APPROVE RESOLUTION NO. 2022-33 AUTHORIZING A
RESTATED LAND PURCHASE OPTION AGREEMENT WITH WASHBURN COMPUTER
GROUP, LLC. FOR A 1.46 -ACRE INDUSTRIAL PARCEL LOCATED AT 9699 FALLON AVENUE
IN THE AMOUNT OF $50,000 OPTION PREMIUM (YEAR ONE) AND A PURCHASE PRICE OF
$300,000. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY,
6-0.
6. Consideration of Resolution No. 2022-34 Revising the Downtown Facade Improvement
Program's Policies and Procedures
This item was presented after item #7 on the agenda. Mr. Thares provided an overview
of the agenda item to the EDA and the public. The change is related to the title of the
program. It will no longer be considered a grant, but rather a forgivable loan. The
guidelines would also need to be adjusted to reflect the practice of a forgivable loan.
The proposed change would establish a loan for 5 -years with 20% forgiven each year.
Changes to the grants already given out are not expected to change with these
revisions.
The EDA members stated a willingness to approve the resolution with noted revisions
adjusting the term of the loan and the process of forgiveness. The preferred terms are a
three-year term with annual forgiven percentages of 50% after the first year, 25% after
the second year, and 25% after the third year.
HALI SITTIG MOVED TO ADOPT A RESOLUTION NO. 2022-34, APPROVING AMENDED
FACADE IMPROVEMENT PROGRAM GUIDELINES CONTAINING LANGUAGE
REFORMATTING IT FROM A GRANT TO A FORGIVABLE LOAN. TRACY HINZ SECONDED
THE MOTION. MOTION APPROVED UNANIMOUSLY, 6-0.
7. Consideration of Resolution No. 2022-35 Approving an Assignment and Assumption of
Purchase and Development Contract and Assignment of Tax Increment Financing Note
by Headwaters Development LLC to CHC Monticello Townhomes LLC related to
proposed residential development at the Country Club Manor, Second Addition site
This item was presented before item #6 on the agenda. Mr. Thares provided an
overview of the agenda item to the EDA and the public. The assignment is related to a
request by Headwaters to convey the townhome portion of the land to Community
Housing Corporation (CHC), a non-profit out of St. Paul, MN. CHC will manage the
development property following completion of the project.
Wes Butler, Executive Director of CHC, addressed the EDA and the public. CHC plans to
take ownership of the townhome portion of the property and is committed to the
affordability factor of the approved project.
Councilmember Charlotte Gabler asked whether CHC was interested in the apartments
portion of the project. Mr. Butler clarified that at the moment, the intention currently is
that CHC will be involved in the townhomes, with potential in the future to become
involved in the apartment building.
Ms. Gabler asked if this project was still slated for residents 55+. Community
Development Director Angel Schumann clarified that the entirety of the project was
approved as a 55+ residential development. Mr. Butler clarified that this feature was
understood early in their involvement of the project.
Mr. Johnson asked if two development agreements will be necessary for the project
with the addition of CHC. Mr. Thares confirmed that two development agreements will
be necessary.
Brian Nicholson, Headwaters Development, clarified that these are two separate
projects, TIF -wise and development wise. Headwaters also plans to close on the two
portions of the same property separately.
TRACY HINZ MOVED TO ADOPT RESOLUTION NO. 2022-35 APPROVING THE
ASSIGNMENT AND ASSUMPTION AGREEMENT, ASSIGNING, AND TRANSFERRING THE
PURCHASE AND DEVELOPMENT CONTRACT FOR TIF DISTRICT 1-43 AND ASSIGNMENT OF
TAX INCREMENT FINANCING NOTE BY HEADWATERS DEVELOPMENT, LLC. TO
MONTICELLO TOWNHOMES CHC, LLC. AS RELATED TO THE RENTAL TWINHOME
DEVELOPMENT OF COUNTRY CLUB MANOR SECOND ADDITION. OLLIE KORPCHAK-
WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
8. Consideration of Update of Draft Region 7W 2022 Comprehensive Economic
Development Strategy (CEDS) Report
Mr. Thares provided an overview of the agenda item to the EDA and the public. Region
7W consists of Wright, Sherburne, Stearns, and Benton County. Region 7W is currently
in the process of updating its Comprehensive Economic Development Strategy (CEDS).
The public comment portion of the update process is underway. Mr. Thares encouraged
the EDA to review the draft document and send any relevant comments to him for
submittal to region 7W. The Industrial and Economic Development Committee (IEDC)
had the opportunity to review and provide comment to Mr. Thares, following their
regular meeting on November 1, 2022.
No action was taken on the item.
9. Economic Development Manager's Report
Mr. Thares provided an overview of the agenda item to the EDA and the public.
10. Adjourn
Tracy Hinz Moved to adjourn the regular meeting of the Monticello EDA. Hali Sittig
Seconded the motion. Motion carried unanimously, 6-0. Meeting adjourned at 7:18 p.m.
Recorded By: Hayden Stensgard
-�/i
Date Approved: December 14, 2022
ATTEST:
ecutive Director