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EDA Minutes 10-08-2002 . . . MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Tucsday, October 8, 2002 - 4:00 p.m. City Hall - Acadcmy Room Members Present: Chair Bill Demeules, Clint Herbst, Roger Carlson and Darrin Lahr Staff Present: Executive Director Ollie Koropchak and Recorder Lori Kraemer Guests: Pam Campbell, DAT Chair; Susie Wojchouski. Chamber Director; Shanon Odegaard and Sara Watters, Little Mountain Quilt Shop; Sheri Mano, Monticello Mercantile; Jane and Howard Maass, A Prairie's Edge Gallery; Karen Schneider, Karen's Kustom Draperies; and Jamie Paulson, A Stitch in Time 1. Call to Order. I L. . " .). 4. Chair Demeu!cs called the meeting to order at 4: 1 0 p.m. and declared a quorum. Consideration to approve the August 20, 2002 EDA minutes. A MOTION WAS MADE BY ROGER CARLSON TO APPROVE THE MINUTES OF TIlE AUGUST 20, 2002 EDA MEETING. DARRIN LAHR SECONDED TilE MOTION. MOTION CARRIED UNANIMOUSL Y. Consideration of adding or removing agenda items. None Consideration of Council Referral to Research Assistance or Other Options for Broadway Business Owners. Ollie Koropchak advised the EDA memhers that at the direction of the City Council, the EDA was to review researched assistance or other options for the Broadway business owners affected by the County Road 75 improvement project. The research completed by Koropchak outlined several ways to compensate husiness owners, either through City tax ahatement or the EDA-DMRf. Tax abatement is not an option in Monticello because the West Broadway parcels are located within the Downtown TIF District. Koropchak also advised that the FDA Attorney had cautioned ahout setting a precedence. Koropchak added that she had spoken to the City Administrator of Cokato as to any assistance they had provided to the husiness owners located along Highway 12 during the recent Highway 12 improvement project, She was advised that working with MnDOT, the City or Cokato had contri huted less than $10,000 from their general fund for additional signage and advertisement in the local newspaper, but no compensation to the business owners. Koropchak stated that the Public Works Director and City Engineer had inflJrmed her that ELM M in utes - ] 0/08/02 . additional money was spent f(H extra crews in order to speed up the CSAII 75 projcct. Also provided to the members was in/(lrmation received from the Chambcr with the outcome of a recent poll they conducted regarding whether to continue with the project this fall or delay until next spring, as well as an estimated percentage of business revenue lost during construction. Koropehak summarized the input of the three EDA members who were absent from the mceting. They did not support compensating the busincss owners to avoid setting a precedence and noted the ditTieulty of determining justifiable compensation. Koropchak provided several alternatives for the EDA to consider. With several business owners present and Chamber President Wojchouski, the EDA asked the business owners for their input. They noted better signage earlier would have been helpful, not today. They gave an example of no left turn on Broadway at Pine Strcct. Customers preceded to take a left at River Street' however, the customer beeamc confuscd as where to access the parking lot with Walnut Street not being a through street. They also advised that the contractor's cmployces at the Amoco site are parking in the Pump-N-Munch lot which had bccn arrangcd as tcmporary busincss parking for their customers. . Koropchak advised of the anticipated completion datcs f()r both East and West Broadway, barring no rain. This could possibly be finished up by October 16th. Demeules advised that the I.:DA members can not determine whethcr the County Road 75 project continues or not and as f~lr as compensation, he stated he did not want to sct a precedence. Carlson agreed with Herbst to work on signage and advertising, and possibly the EOA and/or City could pay for that Jane Maass added that she would like a recommendation from the EDA tonight. There was also discussion whether any funding should be bctween the EDA, the City, and the Chamber of Commerce. There was significant discussion regarding options for the EDA to assist the business owners. The consensus was to hold a Broadway grand opening celebration this fall to bring customers back. Suggestions were for the EDA to fund advertisement in the Monticcllo Shopper in the form of a front page ad and possible supplemcnt listing all of the downtown businesses and promoting the "celebration". The FDA members recognized thc damage was already done and noted for future projects, the City communicate with the business owners prior to construction for input. Herbst advised that this matter would come before the City Council on October 14. . A MOTION WAS MADE BY DARRIN LAHR TO AUTIIORIZE THE EDA TO PROVIDE FUNDS IN AN AMOUNT NOT TO EXCEED $5,000 FROM TIlE DMRF AS A ONE TIME CONTRIBUTION FOR TIIE PURPOSE OF AN EVENT OR ADVERTISING WHICH WOULD BENEFIT ALL TilE BUSINESSES IN THE DMRf TARGET AREA. TilE CIIAMBER PRESIDENT TO WORK Willi THE BUSINESS OWNERS ON THE EVENT. 2 . . . FDA Minutes - 10/08/02 There was further discussion by Demeules to make note of this for future construction in regard to adequate signage so that this matter will not come back to them again in the spring with the next phase, and that this is a one time offer. There being no further discussion, CLINT HERBST SECONDED THE MOTION. MOTION CARRlI':D lJNANIMOUSL Y. 5. Status of GMEF Loan No. 014 and consideration to authorize pursuing recovery of funds. Koropchak had provided the information in the agenda packet stating the recommendation is f(x authorization, stating by doing this it puts the EDA in a position to work with the husiness and the lender to pursue other matters. She added also that she does not know if they would have enough revenues to retire the EDA loan. They asked how the company could sell their equipment when they had a UCC filed and Koropchak stated she did not know and also until the EDA authorizes pursuing recovery, the company can do whatever they want. A MOTION WAS MADE BY DARRIN LAHR TO AUTIIORIZl~ PURSUING RECOVl.:RY OF FUNDS FOR GMEF LOAN NO. 014, T.J. MARTIN, INC. ROGER CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 6. Consideration to approve the First Amendment to the Loan Ae:reement for GMI':F Loan No.017. Koropchak advised the members that this is to be concurrent with the Loan between the City and Twin City Die Castings based on job creation. This was federal money fronl state to city and the criteria is a bit tougher, adding she wanted to be consistent. She did state that the City Council could, in July 01'2003, hold a public hearing and extend it again. She also stated that the state only accepted 40 of the 65 jobs due to that these were not all full time permanent jobs, some were full time temporary. They must meet the 51 % requirement. Koropehak added that they arc only moving the compliance date. A MOTION WAS MADE BY ROGER CARLSON TO APPROVE THE FIRST AMENDMENT TO 'THE LOAN AGREEMENT BETWEl,:N THE EDA AND TWIN CITY DIE CASTINGS. MOTION WAS SECONDED BY CLINT IIERBST. MCHION CARRIED UNANIMOUSLY. 7. Continued - Cost estimates and ideas for drafting cosmetic rear facade improvements for Block 35 and input from business owners. Koropchak provided a sketch concept from City Planner Steve Grittman with ideas for parking improvements and a cost estimate for rear design sketch options. She advised that she did not think they were looking at redesigning the parking behind Country Travel, but Bill Demeules stated that was where the businesses were piling the snow. Pam Campbell, 3 . . . ED^ M il1utes - IO/OS/02 DA T Chair, advised that Grittman had sketched this in f(Jr a possible new building, showing how to get to the parking lot without going all the way around the block, Camphell also previously advised Karen Schneider that this was only a suggestion, adding that Schneider was not in 1~lvor of the concept plan, Herbst stated he docs not see this moving forward until it is determined who owns the alley property, which he thought the EDA had asked City Administrator Wolfsteller to do, Koropchak added that she had previously asked the property owners to determine ownership, There was discussion by Lahr that assuming ownership is 50/50, and assuming there is an easement, what does the FDA want to do, Demeules stated that until ownership is determined, the EDA cannot set a dollar amount in regard to how much they arc willing to contribute for these proposed improvements, It was also noted that they did not want to proceed with any parking lot improvements until after the South side of Broadway, West of Highway 25, was completed, Chair Demeules was excused at 5:30 p.m, There was discussion on possibly putting together a package to present to the businesses advising them of options for facade and parking lot improvements, Call1pbell advised that she had spoken with Michele Hertwig to see if she was interested in putting together some options, and Wojchouski stated that Parker MacDonald may also be interested in working with Hcrtwig on this package. Campbell advised that lIertwig charges $50/hour and that they estinlated the cost to be approximately $900.00, Again they discussed the potential prohlem if only a small number of businesses were willing to participate, Lahr felt the businesses should come up with their own ideas to present to the EOA and leave the snow issue alone. Ilerhst suggested coming up with a cost for potential improvements to the buildings, the EDA to foot all but a suggested dollar amount, to see if the husinesses are willing to participate prior to spending more money on drawings, They also added that they could not f()rmal1y act on this matter at this time as they did not have a quorum present. Koropchak advised the members of their balance stating it was just under $150,000, not including assistance to the downtown businesses for an event/advertising, The consensus was to direct Pam Campbell to get a f()nl1al cost and provide that to Koropchak for her to conduct a vote or the EDA members, either via mail or phone, to determine whether or not to proceed, Carlson also asked Koropchak to discuss with Rick Wolfsteller getting a survey determining the ownership of the alley and she stated she would. 8. Exec uti ve Director's Report. *' Koropchak provided the report. There were no additions. 4 EDA Minutcs ~ 10/08/02 9. Othcr Business. None . 10. Adjournment. TIlE MEFflNG WAS ADJOURNED AT 6:00 P.M. il~' Ill. tr?i/J . n~~?JJ!- ec . -del' . . 5