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EDA Meeting Minutes - 1/10/2024MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 10, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: Treasurer Hali Sittig Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:05 p.m. B. Roll Call 6:00 p.m. President Johnson called the roll. C. Consideration of Additional Agenda Items None 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes — December 13, 2023 C. Consideration of Approving Workshop Meeting Minutes — December 13, 2023 LLOYD HILGART MOVED TO APPROVE THE JANUARY 10, 2024 REGULAR MEETING CONSENT AGENDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 3. Public Hearing N/A 4. Regular Agenda A. Consideration of Greater Monticello Enterprise Fund (GMEF) Loan Pre -Application in the amount of $300,000 from Deephaven Development for commercial property improvements at 101 West Broadway Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. The EDA was asked to consider a GMEF loan pre -application request for $300,000 to assist with a tenant space build out within the commercial area of the Block 52 Redevelopment project. The total buildout space on the first floor of the new building is roughly 13,300 square feet and will consist of approximately $2,000,000 in improvements. Block 52 Holdings noted they have a 10-year lease for the space with new tenant, Simplicity Financial Group, that is anticipated to bring 102 full-time equivalent jobs to the building. Mayor Hilgart referenced the current GMEF fund balance of around $1,055,000 and if there was a process for replenishing the fund, if necessary, in the future. Mr. Thares noted that any given GMEF application is only eligible for half of the fund balance at the time of application. The EDA has the authority to waive this guideline, as well as allocating more funds as necessary. 011ie Koropchak-White noted that the limitation for requests to be maxed out at half fund balance is a guideline adopted at the time the program was created, to ensure there would be funds available at all times. As the program continues to progress, +k-%+ Reei#4n1ir ^ e-e%id I+n rn n�i-�lu,-tnd 1„id wmri1ALA - - rnrrarc�ry President Johnson asked what the anticipated interest rate would be for the subject GMEF loan. Mr. Thares noted that it would be two percent below prime, which is 6.5%. Mr. Thares noted the applicants are requesting this GMEF loan to be at 3% interest for the $300,000. Brendan Muldoon, of the applicant team, addressed the EDA and the public. Mr. Muldoon gave background on the future tenant of the subject space. He said that Simplicity Group is a large nationwide financial firm based in New Jersey. Mayor Hilgart believed the results from this commercial space being filled up and built out for use will benefit all businesses within the downtown area. Vice President Jon Morphew appreciated the efforts from the Block 52 development team attracting prospective tenants to these available spaces. Ms. Koropchak-White also appreciated the work done to fill up the commercial spaces of the building. President Johnson asked how parking will be managed in the area with the addition of 100 +/- employees, and more to come as more commercial and residential tenants move in. Mr. Muldoon noted that the City has conducted studies that indicate that there is sufficient parking within the vicinity of the block. He further stated that this will need to be monitored to proactively make any necessary adjustments. Angela Schumann, Community Development Director, echoed Mr. Muldoon's statements on parking and noted the City has prepared short-term and long-term parking solutions to be utilized as necessary. Vice President Morphew asked if the loan is contingent on a signed lease. Mr. Thares said the tenant has already signed the lease. Per Business Subsidy statutes, the applicants are required to meet certain job creation goals which will be fulfilled by the tenant. Councilmember Tracy Hinz also expressed gratitude towards the development team for their efforts throughout the redevelopment project. OLLIE KOROPCHAK-WHITE MOVED TO AUTHORIZE STAFF TO PROCEED WITH FURTHER DUE DILIGENCE RELATED TO THE LOAN CREDIT REQUEST AND PREPARATION OF A LOAN AGREEMENT FOR CONSIDERATION AT A FUTURE MEETING. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. B. Consideration of Authorizing entering into Professional Services Contract with WSB & Associates in the amount of $8,400 for completion of Phase I Environmental Site Assessment (ESA) and ARM (Asbestos and Regulated Materials) Survey of 216 Pine Street Mr. Thares provided an overview of the agenda item to the EDA and the public. Recently purchased property by the EDA, 216 Pine Street requires a Phase I ESA and ARM Survey prior to any redevelopment efforts on the block. The specific request is only for 216 Pine Street, and any other property on the block to be redeveloped will have these same steps completed as necessary. Rick Barger asked if these two environmental steps were only on the building or for the land as well. Mr. Thares clarified that the Phase I ESA will cover both the land and the building, and the ARM Survey is specific to the building. JON MORPHEW MOVED TO AUTHORIZE A PROFESSIONAL SERVICES CONTRACT WITH WSB & ASSOCIATES FOR COMPLETION OF A PHASE I ESA (ENVIRONMENTAL SITE ASSESSMENT) AND AN ARM SURVEY (ASBESTOS REGULATED MATERIALS) SURVEY AT 216 PINE STREET IN THE AMOUNT OF $8,400. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. C. Consideration of Authorizing entering into a Professional Services Contract with WSB & Associates in the amount of $4,800 for completion of a Phase I Environmental Site Assessment (ESA) of 118 East Broadway Mr. Thares provided an overview of the agenda item to the EDA and the public. A companion item to the prior one of this agenda. The proposed Phase I work at 118 Broadway East would take place as necessary steps prior to any redevelopment efforts on Block 34. President Johnson noted that these environmental steps being completed proactively by the EDA will benefit their efforts in advertising the block for redevelopment. MAYOR LLOYD HILGART MOVED TO AUTHORIZE A PROFESSIONAL SERVICES CONTRACT WITH WSB & ASSOCIATES FOR COMPLETION OF A PHASE I ESA (ENVIRONMENTAL SITE ASSESSMENT) AT 118 BROADWAY EAST IN THE AMOUNT OF $4,800. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. D. Consideration of Authorizing an Amendment to the Downtown Facade Improvement Forgivable Loan Program Guidelines and Eligibility Area Community & Economic Development Coordinator Hayden Stensgard provided an overview of the agenda item to the FDA and the nuhlir-- President Johnson asked if renderings completed through the applicant for proposed improvements could be included in the funding for the work to be done. Mr. Stensgard said that the current guidelines do not specifically call out the renderings as an eligible item for loan funds, but the EDA has the latitude and discretion to decide whether they are eligible on a case -by -case basis. Ms. Schumann clarified that the typical process for the loan program would consist of the EDA deciding to authorize completion of renderings for a building, or have the applicants provide prior to a formal application submittal. President Johnson asked if the guidelines define what the eligible facades are for a given building. Mr. Stensgard clarified that the eligible facades for improvement as mentioned in the guidelines are those adjacent to public streets. The EDA has the discretion as well to authorize funds for additional facades if requested by the applicant, on a case -by -case basis. Vice President Morphew asked if the 109 Walnut Street property is planning to move forward with their application if the eligibility area is amended to include that property. Mr. Stensgard confirmed. Ms. Schumann further clarified that the specific language only alludes to front and interior side facades as eligible portions of buildings for the program. If the EDA wishes to include language allowing applicants to request facades beyond what is acknowledged, they should direct staff to make that addition. Mayor Hilgart noted he did not have an issue with potential applicants applying for multiple sides, as long as the front fagade is included in the proposed improvements. Vice President Morphew concurred and stated that his thoughts on that would have been different, had there been more initial interest from property owners for the program. Councilmember Hinz appreciated the added flexibility in the policy language for both EDA and the potential applicants but wants to ensure that EDA maintains integrity in approving projects within this program. RICK BARGER MOVED TO ADOPT THE PROPOSED AMENDMENTS TO THE DOWNTOWN FACADE IMPROVEMENT FORGIVABLE LOAN PROGRAM POLICY AND ELIGIBILITY AREA, INCLUDING ADDED LANGUAGE TO ALLOW EDA DISCRETION FOR APPROVAL OF BUILDING SIDE IMPROVEMENTS BEYOND FRONT AND INTERIOR SIDE FACADES. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 5. Other Business A. Consideration of Economic Development Manager's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. No action was taken on the item. 6. Adjournment TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 7:11 P.M. Recorded B : Hayden Stens and * y y g Date Approved: February 14, 2024 ATTEST: Jim Thar , Executive Director