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EDA Minutes 08-20-2002 . . . MIN UTES MONTICELLO ECONOMIC DEVELOPMENT AUTIIORITY Tuesday, August 20,2002 - 4:00 p.m. City Hall - Academy Room Members Present: Chair Bill Demeules, Vice Chair Barb Schwientck, Clint Herbst, Darrin Lahr. Assistant Treasurer Ken Maus, Ron Hoglund, and Roger Carlson Staff: Executive Director Ollie Koropchak, Rick Wolfstcller, and Recorder Lori Kraemer Guests: Pam Campbell, DAT Chair I. Call to order. Chair Oemeules called the meeting to order at 4 p.m. declaring a quorum. 2. Consideration to approve the June 18,2002 FDA minutes. A MOTION WAS MADE BY BARB SCHWIENTEK TO APPROVE THE JUNE 18, 2002 EDA MINUTES AS WRITTEN. RON I IOGLlJND SECONDED THE MOTION. MOTION CARRIED WITI I CLINT HERBST ABSTAINING. -. -) . Consideration of adding or removing agenda items. None 4. Consideration to review f(Jr discussion the preliminary GMEF loan application for Ultra Machining Company (UMC). Ollie Koropchak, Executive Director. gave a brief summary of the request by UMC for a loan for $200,000, adding that they were an excellent company with great jobs. It was clarified that at least 90% of the news johs must pay a wage of the higher of $9.00 per hour versus 4.5 of the new johs as was stated in the stalTreport. Koropchak is waiting for a letter on the credit worthiness which she stated is in process. Koropchak stated she had not called for the current prime rate but would do so on Wednesday. Ron I loglund stated that the prime rate was 4.7YYo. They discussed that the loan should not exceed 30 years, and the loan would become null and void on February 20,2003. Koropchak provided drawings of the proposed building. The EDA discussed as part of the marketing strategy to otTer free bus tours to UMC employees. free passes fCJr their families to the community center. as well as other amenities in the City, which they stated could be given out atthe ground breaking scheduled tl)r September 20,2002. There was no further discussion. . . . EDA Minutes - OS/20/02 5. Public hearinl! and consideration to approve or deny GMEF No. 022, a business subsidy for UMC. Koropchak advised that when the EDA grants a loan over $100,000 they must hold a public hearing. Chair Demeules opened the public hearing. Ron Hoglund asked ifUMC preferred a 30 year amortization and Koropchak stated that the motion should state consistent with lender not to exceed a 30 year, a bal100n in 5 years. A MOTION WAS MADE BY DARRIN LAHR TO APPROVE GMEF LOAN NO. 022 FOR lIMC IN TilE AMOUNT OF $200,000 AT 2(% BELOW PRIME RATE, (2.7YYrI) AMORTIZATION NOT TO EXCEED 30 YEARS, CONSISTENT wrnl LENDER, BALLOON PAYMENT IN 5 YEARS, AND LOAN FEE OF $200.00. GMEF LOAN APPROV AI, SUBJECT TO LENDER COMMITMENT. CREDIT WORTI "NESS LETTER AND COUNCIL RATIFICATION. RON 1-IOGLlJND SECONDED THE MOTION. MOTION CARRIED UNANIMOUSI,Y. T'here was no further discussion. Chair Demeules then closed the public hearing. 6. mock 35 improvements - EDA Preliminary sketches and cost estimates and Citv Council action of AUQust 12. 2002. Koropchak advised that she was expecting a Llxed sketch of proposed improvements to Block 35 from Steve Grittman, but she had not yet received anything. She did provide a previous concept plan. She stated she included this agenda item since the City was recently asked to look into possible improvements to parking lot of Block 35 and it was the consensus of the Council and property owners that they did not want the parking lot torn up at the same time as Broadway. They would prefer to repair the parking lot by patching it up at this time. Koropchak also recapped some estimates that were received last year, approximately $50,000 to $75,000 for plaza improvements and $50,000 for alley improvements. Clint Ilcrbst stated before making a decision they should find out where the property lines are. He felt they should dig up the alley and put in the catch basins. He also stated that last year was not a good year to see if there was sti II a drainage problem. They also discussed Taylor surveying a portion ofthe alley as this would probably tell thelll where the property line runs. They felt most likely the property line runs down the center of the alley. Sehwientek stated she felt they should spend the money to have it surveyed and get it done right. 2 EDA Minutes - 08/20/02 . Ken Maus asked about going back to what was first intended regarding improving the looks of the backs ofthc buildings. He did not fcel that this would help improve the looks by fixing drainage, garbage collcction, parking, etc. Maus statcd he felt the EDA should ask the owners if they were interested in improving the backs of their buildings and if not, the EDA should move on to anothcr block. He felt that the building owners were morc interested in fixing the drainage and garbage collection, not facade improvenlents. Darrin Lahr added that maybe they could entice the owners to fix up their buildings if thc EDA could show them sketch plans of possible options. Pam Campbell, OAT Chair, added that initially they had lookcd into fIxing up the backs of the buildings hoping that the design would entice the owners to proceed. It then went to fixing drainage problems and ice buildup. Darrin Lahr was excused at 4:40 pm. . Herbst stated that possibly the EDA should let the owners know that the EDA is reluctant to proceed any further, state their objective, and see what the building owners would be willing to do. Koropchak added that the EDA should have cost estimates avai lable to the owners. Ken Maus added that possibly the EDA should get some more ideas of how to work with the different building types and elevations. Ron I [oglund stated maybe the EDA could go to the owners and offcr to fix the drainage problem off the roors, and in turn ask the building owners what they would be willing to do to address the facades. Koropchak added that they had not directed Grittman to work on building design, only plaza/parking lot design. Barb Sehwientek stated that possibly the City Council would want to direct the EDA to have a survey done to find out who the property owner is, and in doing so casements would also be detennined. It was stated that there are no sewer/water lines behind the buildings. Maus asked if the City Council would be interested in asking the owners to deed the alley property to the City so the City can maintain. Maus also asked if the City could require a developers agreement from the property owners for maintaining the alleys and Rick Wolfsteller stated they could do that, but didn't feel the owners would agree. Pam Campbell stated that in the revitalization plan it states to take advantage of the in and out profiles, layering roof lines, etc., to create a nice looking building. Campbell felt the best the 1.:DA could expect from the building owners would be cosmetic fixes such as paint, window trim, tlower pots, new doors and possibly garbage enclosures. [t was again noted that sketches should be drawn up to show ideas of what could be done. It was also asked if Griuman could provide a cost estimate as weB and Koropchak stated she would ask. MaLIS stated that possibly the DAT should review this as well to come up with ideas. . 3 EDA Minutes - 08/20/02 . Schwicntck stated that theEDA would probably have to bear the cost of the planning as it is too hard to get all the owners together to do this, and also suggested that they ask Grittman first, and if he states that is not his area of expertise, then perhaps find an architect, possibly through DAl', for estimates and concepts to present to the owners. Maus also stated that if the DAT has ideas they should share these with Grittman, or whoever is going to provide the concepts, so that it is known what the EDA/DAI' is looking f()f. Koropchak also stated the revitalization plan has guidelines. It was the consensus that possibly fixing the parking lot would be a City project. Herbst stated that perhaps the City would choose to fix the parking lot and drainage issues and assess the owners. 7. Executive Director's Report. . Koropchak summarized her report adding that she is still working with the "wet" industry and WAC/SAC fees were reduced. She is also working on a request f(x proposal for the wind generating l11amIt~lCturer who is looking at 3 separate buildings. Koropchak felt that with the size of the building versus the amount of" land, the manufacturer may have a great deal of outdoor storage and that may not be the best use of industrial land. She also marketed several vacant sites and buildings in town. Koropchak also talked to Huot Mfg Co. yesterday who stated no interest in looking at sites here at this time. She will check back with him periodically. Koropchak also provided sorne sketches of the Block 52 development that is proposed by Steve Johnson and noted that the HRA is working with them on this project. 8. Adjourn. A MOTION WAS MADE BY ROGER CARLSON TO ADJOURN THE MEETING AT 5:20 PM. RON HOGLUND SECONDED THE MOTION. MOTION CARRIED. (]fA~ co ocr . 4