Loading...
EDA Minutes 04-24-2007MEETING MINUTES ECONOMIC DEVELOPMENT AUTHORITY Tuesday, Aprril 24, 2007 City Hall -Academy Roam Present: Wayne Mayer, Tom Perrault, Ron Hoglund, Barb Schwientek, Bill DeMeules Absent: Darnin Lahr 1. Call to Order. Chairman Demeules called the meeting to order and noted that a quorum of the Authority was present. 2. Roll Call. Chairman Demeules called the roll and noted the absence of Commissioner Lahr. 3. Consideration to a rove the S tember 19 2006 EDA minutes. MOTION BY COMMISSIONER SCHWIENTEK TO APPROVE THE MINUTES OF THE SEPTEMBER 19, 2006 EDA MEETING. MOTION SECONDED BY COMMISSIONER HOGLUND. MOTION CARRIED, S-0. 4. Consideratian of addin or removin a enda items. Wayne Mayer and Tom Perrault requested that the replacement of Commissioner Wojchouski be added as item for discussion. 5. Bills and Communications. a. Koropchak stated that unlike the HRA, the EDA doesn't need to approve the bills. However, they are provided review. Koropchak pointed out that one of the loan application criteria is that there is a loan fee set at a minimum of $200, or a percentage of loan amount. With some of the previous loan agreements, the fee was set at the minimum. However, Koropchak stated that because of business subsidy law, notification of the loan needs to be published in the paper and the total cost for publication may exceed the application fee. Hoglund noted that in that case, the EDA is then paying for the balance of the cost. 6. Executive Director's Re ort. a. Open EDA position Koropchak explained that the Council was going to begin examining the potential for the HRA and EDA to merge. The City Administrator had proposed this and may have called individual EDA members to discuss the passibility. He had asked Koropchak to put a Council agenda item together on the topic. Karopchak had explained that a discussion had happened a couple of years ago an this same idea. However, because of desire for more people in local government, it was dropped at that time. Koropchak stated that she had talked with HRA and EDA attorney Steve Bubul about the process. Karopchak stated that the issue isn't so much wha the Commissioners are, but rather the functioning of the organization. The Council needs to authorize proceeding in merging and hiring a legal firm to complete the process and then make decisions about the end result organization. The end result would be a transfer of powers. Subsequently, there are needed resolutions. Koropchak said that Bubul had estimated the legal costs between $2000 - $3000. Due to these discussions, Wojchouski's position went unfilled. Perrault asked how long the merger would take. Koropchak replied that once put into process, probably 2-3 months. Koropchak noted that the HRA has more assets than the EDA. Perrault asked if perhaps having different missions may keep them separate. Karopchak stated that the HRA was established in 1972. The EDA has greater powers. The HRA cannot buy land outside the City limits. Koropchak stated that as she understood it, all of the HRA's power and assets would be transferred to the new organization. Hoglund stated that the IDC pushed for the EDA and revolving loan program. Mayer asked which organization makes more sense. Koropchak stated her recommendation would be that the HRA transfer their power and assets to the EDA. That would give the City the maximum number of powers. Demeules stated that there maybe some move to disband the EDA because of the limited agenda. Koropchak noted that the EDA currently has members from outside City limits, HRA members cannot come from outside. Koropchak stated her opinion that the new organization members should be City residents. Mayer agreed. Koropchak explained that the HRA commissioners had also been involved for sometime and they aze very knowledgeable about TIF and HRA programs. Schwientek asked if the HRA had discussed this. Koropchak stated that O'Neill had also called them. Koropchak explained that the Council could choose to go out and interview a whole new group far the new organization. . Derneules asked about whether the residency restriction applied to restrict membership to residents only, of if property owners could serve. Koropchak stated that she would check. Koropchak reminded the group that only the HRA. has the authority to spend TIF. Mayer asked Koropchak to confirm what powers would stay, or whether the transfer could result in the loss of some powers. Koropchak explained that the powers are transferred; the EDA has greater powers under state statutes. Mayer asked for the information to go forward to the City Council. Koropchak stated that the marketing group had been working with students fram SCSU on a feasibility study far a bioscience park. The marketing group and City representatives would be going to hear a presentation by the students. Mayer commented about manufacturing leads being slow, and asked if this is common within the industry. Koropchak stated that she has calls and inquiries. Many aze looking for outdoor storage, or are put off by the restrictive covenants. She stated that the industry has been quiet. Mayer reparted that the fiber optics task force has been elevated to a point where the task force does not have the proper set-up to keep proposals and data privacy. There will always be a place for the task force for marketing, etc. Mayer stated that the effort is at the juncture now where a fiber committee is needed so that it can take on some of these functions and take on more power to accomplish more. 7. Committee Reports. 8. Unfinished Business a. Update on GMEF Loan No. 025 (Kazlsburger) Koropchak reported that the loan had closed and that she had provided the EDA with a list of the equipment under the loan. 9. New Business a. Cansideration to elect 2007 EDA officers. Koropchak stated that pending the merger of the HRA and EDA, this action would be required to be redone. MOTION BY COMMISSIONER SCHWEINTEK TO NOMINATE BILL DEMEULES AS CHAIR, BARB SCHWIENTEK AS VICE CHAIR, RICK WOLFSTELLER AS TREASURER, RON HOGLUND AS ASSISTANT TREASURER AND OLLIE KOROPCHAK AS 2007 EDA OFFICERS. Halgund stated that he plans to resign at year-end 2007 and would like to be removed from the officers list. Schwientek asked if the slate could be left as is until the merger is complete. Hoglund agreed. MOTION SECONDED BY COMMISSION DEMEULES. MOTION CARRIED, 5-0. b. Consideration to review and accept the year-end EDA Financial Statements, Activity, Report, and proposed 2007 budget. Koropchak presented the review and noted that the report is required by the by-laws. Schwientek indicated that the reports improve each year. Koropchak stated that she, Wolfsteller and Paula Mastey had worked through the information to make sure EDA reports and audit reports were consistent. Koropchak reviewed revenues and expenses as well as interest and income. Hoglund asked if the EDA forgave an amount on the TJ Martin loan. Koropchak confirmed that a couple of years of payments had been forgiven. Demeules asked if the payback to the liquor store funds should be shown as a liability on the balance sheet. Hoglund stated that funding was originally "seed money". Koropchak responded that it was given as an appropriation and was not required to be paid back, although the EDA has chosen to do so. Demeules noted that on some of the reports it is called a line of credit. Koropchak stated that is what it was termed in the ordinance. Koropchak explained that in summary, the EDA has a projected cash balance of $453,213.06 for year-end 2007. MOTION BY COMMISSIONER HOGLUND TO ACCEPT THE 2006 YEAR-END FINANCIAL STATEMENT AND ACTIVITY REPORT FOR SUBMISSION TO THE CITY COUNCIL ON MAY 14 OR 29Tx, 2007. MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED, 5-0. c. Consideration to review the summary year-end balances of other sources of revenue. Koropchak stated that this report summarizes that the EDA has two other sources of funds to draw for loans, which are the paybacks from the Twin City Die Castings and UMC loans. Koropchak stated that given this information, she and Wolfsteller recommended that the EDA payback $100,000 to the liquor stare funds for 2008. MOTION BY COMMISSIONER SCHWIENTEK TO AUTHORIZE THE EDA TO MAKE A PAYMENT OF $100,000 TO THE LIQUOR STORE FUNDS IN BUDGET YEAR 2008. MOTION SECONDED BY COMMISSONER FERRAULT. MOTION CARRIED, 5-0. d. Consideration to review for amendment the Business Subsidy Criteria and Bylaws of the EDA. Koropchak stated that she didn't see any need for amendment to either the bylaws or subsidy criteria at this paint. Mayer inquired about terms and conditions of the UMC original loan. Koropchak confirmed that both UMC and Tapper have balloon payments, so that in 2008, there would be more cash available to the EDA. Perrault inquired why section 4.05 of the subsidy criteria is in parentheses. Koropchak stated that she would find out and clarify. Perrault asked about wage levels if federal minimum wage changes. Koropchak confirmed that they would change in the EDA criteria also. In relationship to the GMEF loan criteria, Ferrault asked when the loan amount per job was last evaluated. Koropchak stated that perhaps they should be review the programs and criteria. Hoglund stated that the ratio would still be the factor to look at. Demeules stated that it should be reviewed as part of whether Monticello is competitive in the marketplace. Koropchak noted that the majority of the time, it is the $10,000 per job created that is used. Many times, that is more than what would be recommended. Koropchak confirmed that she can check with some other communities to see if the numbers are relevant. Mayer stated that page 10 stated of the EDA Business Subsidy Criteria states that the liquor store money doesn't have to be paid back. Koropchak stated that EDA members' goal was to be self-sufficient, and was accountable by paying back the funds. Mayer suggested that the $100,000 would be better offused as a loan. Demeules stated that one of the EDA's goals was to be self-sufficient. MOTION BY COMMISSIONER HOGLUND TO ACCEPT THE BUSIENSS SUBSIDY CRITERIA OF THE EDA AND THE BYLAWS OF THE EDA AS WRITTEN. MOTION SECONDED BY COMMISSIONER SCHWIENTEK. MOTION CARRIED, 5-0. Perrault asked if in Section 3-3-6 of the Bylaws relating to officers a report was being submitted as required. Koropchak stated that she thought that had been amended so that the report would be given after the EDA's annual meeting. MOTION BY COMMISSIONER SCHWIENTEK TO AMEND SECTION 3-3-6 OF THE BYLAWS OF THE EDA TO REFLECT THAT THE ANNUAL REFORT SHALL BE PROVIDED TO THE CITY OF MONTICELLO AFTER THE EDA ANNUAL MEEETING. MOTION SECONDED BY PERRAULT. MOTION CARRIED, 5-0. e. Other Business. None. 10. Adjournment MOTION BY COMMISSIONER HOGLUND TO ADJOURN. MOTION SECONDED BY COMMISSIONER MAYER. MOTION CARRIED, 5-0. ~ ~ ,rte ~~ ~ Secretary `;