EDA Minutes 01-14-2009MINUTES
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Wednesday, January 14, 2009
6:00pm
1. Call to Order:
Chairman Demeules called the meeting to order and declared a quorum at 6:00pm.
Roll Call:
The following Commissioners were present:
Chair Bill Demeules
Vice President Dan Frie
Treasurer Bill Tapper
Commissioner Bill Fair
Council Member Brian Stumpf
Council Member Tom Perrault
Absent:
Commissioner Bob Viering
Also present Executive Director Megan Barnett and Finance Director Tom Kelly
2. Approve minutes:
MOTION BY COMMISSIONER TAPPER SECONDED BY FAIR TO APPROVE THE
JANUARY 14, 2009 MINUTES. ABSTAINED: PERRAULT AND STUMPF. MOTION
CARRIED. 4 -0
3. Consideration of additional agenda items: none
4. Approval of the EDA Invoices:
Director Barnett added a Lamar invoice related to the final billboard payment.
Commissioner Tapper questioned the $370 Lamar invoice. Director Barnett stated it was for
the final few days in December for the billboard.
Commissioner Tapper questioned a WSB invoice. Director Barnett stated the City Engineer
provided a brief description as to what work the invoice covered.
5.
Commissioner Tapper questioned Ehler's invoice. Barnett stated Ehlers completed their
portion of their project and the remaining balance will come to the EDA at a future meeting.
Commissioner Tapper questioned a $413.00 Ehlers invoice. Barnett stated the invoice was
related to meeting with a developer looking for TIF assistance.
Commissioner Tapper questioned the payment to Chadwick. Barnett clarified the payment is
for the contract for deed piece located south of the city owned industrial park.
MOTION BY COMMISSIONER FRIE SECONDED BY TAPPER TO APPROVE EDA
INVOICES. MOTION CARRIED. 6 -0
Request to utilize funds from the Transformation Loan Program:
Director Barnett reviewed a request staff received from a citizen to utilize the Transformation
Loan to fix up a house she owns in Monticello but does not personally occupy the home. The
residence was purchased for the propose of renting the home.
Commissioner Fair stated that the Transformation Loan clearly stated that in order to utilize
the Transformation Loan funds the applicant had to own the residence and a minimum
$30,000 improvement cost was required. These are hard and fast rules not guidelines.
Commissioner Frie stated that the loan also established that an owner had to live in the
residence for at least five years.
Commissioners Frie and
Fair provided additional
history on
the inception of the
Transformation Loan. The
Transformation Loan was
established
specifically for owner
occupied residents.
Commissioner Frie stated that due to the change in the economy it might be timely to look at
modifying the criteria to include rental under certain circumstances.
Commissioner Fair stated he would want to discuss adding rental as an option in detail in
order to ensure the criteria is complete.
MOTION BY FAIR DIRECTING STAFF TO PLACE THE TRANSFORMATION LOAN
PROGRAM DISCUSSION ON THE FEBRUARY AGENDA TO CONSIDER OTHER
OPTIONS FOR UTILIZING THE FUNDS SECONDED BY FRIE. MOTION CARRIED. 6-
0.
Councilmember Stumpf questioned if the EDA's intention is to allow for rental properties to
apply for Transformation Loan funds. Commission Fair stated he wanted the EDA to review
the option at a future meeting.
6. Neighborhood Stabilization Program:
MOTION BY FAIR TO ENTER INTO AN AGREEMENT WITH CENTRAL MN
HOUSING PARTNERSHIP TO COMPLETE THE APPLICATION AND ADMINISTER
THE NSP GRANT PROGRAM SECONDED BY FRIE. MOTION CARRIED 5 -0
(Commissioner Frie left the meeting)
7. Redevelopment ideas for the recently purchased property located at 413 4th Street:
Director Barnett stated the EDA recently purchased an underutilized residential property
located at 413 4th Street. Staff is requesting the EDA provide direction regarding the desired
ultimate use for the property.
Commissioner Fair suggested making the lot available for Habitat for Humanity. The house
is not in good condition and should be demolished.
Councilmember Stumpf stated he did not want the City or the EDA to make money on the
property. He desired to see the City demolish the existing house and put it back on the market
for private.
Stumpf questioned if staff is proposing to utilize NSP funds to demolish the house. Director
Barnett stated demolishing the subject home was included in the action plan in the NSP
application. Mr. Stumpf questioned if this was a good idea. Barnett stated that NSP funds are
intended to be utilized for homes that were foreclosed upon, which this house was clearly
qualifies.
The consensus of the EDA is the house needs to be demolished. They stated staff will need to
complete additional research on funding sources to complete the necessary work. Habitat for
Humanity and private market options will also need to be further reviewed as options for end
projects on the subject property.
8. Sub - Committee Policy:
Director Barnett reviewed the proposed sub - committee policy. Barnett stated she is
recommending the housing committee be dissolved at this point. Currently local lenders and
realtors are meeting with staff to collaboratively discuss innovative ideas to deal with the
housing issues. These initiatives can be brought directly to the EDA.
MOTION BY FAIR TO ADOPT SUB- COMMITTEE POLICY SECONDED BY
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The EDA directed staff to place appointment of EDA members on sub - committees at the
next regular meeting.
9. Establish preliminary 2009 Objectives:
Director Barnett went through the proposed 2009 Objectives. The proposed objects are
directly related to the Economic Development section in the Comprehensive Plan, including:
Attracting Jobs
Attracting New Businesses
Job Retention
Expanding Tax Base
Business Retention
Enhancing Downtown
Facilitating Redevelopment
Housing & Redevelopment Authority
Commissioner Fair suggested that additional coordination occur between the local schools
and the private businesses.
The EDA directed Staff to continue to research different measures businesses are taking to
try to retain jobs and how the City can assist.
Commissioner Fair stated we should continue to form a relationship with the local Workforce
Development Center.
Commissioner Fair stated the City should look at what the potential is to develop the City
owned parking lot property within downtown.
10. Presentation by Rusty Fifield
Director Barnett reviewed the TIF Records Retention and TIF Analysis question.
Councilmember Stumpf questioned the work and hours spent on the TIF Retention project.
Barnett and Kelly reviewed the reason and importance of initiating and completing the TIF
Records Retention program.
Mr. Fifield reviewed the work he has completed thus far on the TIF Analysis project. He
stated he has gone through all documentation for the 38 districts, cross referenced data with
the County and State auditor's office. He will begin creating profiles for each district and
determining a set of management suggestions for each district. The broad goal is to create a
clear understanding of what is happening with each TIF district and what this means to the
City.
Commissioner Fair asked if the information and format being put together is compliant with
State Auditor requirements.
Mr. Fifield stated he will provide the City with a document that is in compliant with all state
and county documentation and it is his hope the results will be a reference material for the
City. TIF is a complicated and rules have changed over time. Northland Security's goal is to
help everyone understand what is going on with each district, what can be done within each
district, in order to provide a tool that can aid in better financial decisions.
Barnett stated that a TIF Analysis should be completed by a City on a regular basis.
Barnett quickly reviewed the Director Report. She stated that the City via the IEDC and EDA
has been asked to discuss purchasing a 13 acre piece owned by Chadwick for future
industrial land.
The EDA stated they concurred with IEDC's general consensus to initiate conversations with
Mr. Chadwick, however not to be aggressive with a purchase. Further discussions on price
and funding sources need to be researched.
MOTION BY TAPPER SECONDED BY PERAULT TO ADJORN THE MEETING.
MOTION CARRIED. 5 -0
Meeting adjourned at 7:45pm.
President