EDA Minutes 03-12-2014MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
Wednesday, March 12t', 2014 - 6:00 p.m., Mississippi Room
Present: Bill Demeules, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault, Brian Stumpf
Absent: Bill Tapper
Others: Jeff O'Neill, Wayne Oberg, Angela Schumann, Tammy Omdahl
1. Call to Order
2.
3.
4.
5.
Bill Demeules called the meeting to order at 6:00 p.m.
Acceptance of Minutes
TRACY HINZ MOVED TO ACCEPT THE FEBRUARY 12TH, 2014 REGULAR
MEETING MINUTES AS PRESENTED. MATT FRIE SECONDED THE MOTION.
MOTION CARRIED 6 -0.
MATT FRIE MOVED TO ACCEPT THE FEBRUARY 12TH, 2014 SPECIAL
MEETING MINUTES AS PRESENTED. TOM PERRAULT SECONDED THE
MOTION. MOTION CARRIED 6 -0.
Consideration of additional agenda items None
Consideration of approving payment of bills
Staff will report back with information related to a question about an invoice.
ROD DRAGSTEN MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH
rEB RUARY 20114 I1VT THE AMGun l ur $11,532.86. MATT FRIE SECONDED THE
_Consideration to adopt Resolution 2014 -024, adoptinp- amendments to the bylaws of
the Economic Development Authority
Angela Schumann reported that the EDA attorney had advised that the language which
references the HRA within Section 6.03 of the Enabling Resolution remain unchanged as
it provides rights and responsibilities of the HRA for any contracts moving forward. The
attorney also advised that the EDA amend Section 5(3) of the bylaws to be consistent
with the way in which business is currently conducted. The language has been changed to
allow for funds to also be disbursed by wire transfer or credit card.
Tom Perrault suggested also replacing the phrase in Section 6 of the bylaws "if the
Treasurer is absent or disabled" with "if the Treasurer is absent or incapacitated" so that
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it is consistent with phrasing in Section 3 of the bylaws. That change had been conveyed
to the EDA Attorney and as such the EDA had received a version of the bylaws reflecting
that proposed amendment.
BRIAN STUMPF MOVED TO ADOPT RESOLUTION 2014 -024, ADOPTING
AMENDMENTS TO THE BYLAWS OF THE ECONOMIC DEVELOPMENT
AUTHORITY. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0.
6. Consideration to approve Resolution 2014 -025 Approving the Terms of an $800,000
Tax Increment Interfund Loan in Connection with Tax Increment Financing
District No. 1 -22 within Central Monticello Redevelopment Proiect No. 1.
Tammy Omdahl, of Northland Securities, reported that the EDA has an estimated
$800,000 in available pooled increment available to spend on new projects in TIF 1 -22.
She explained that the EDA could choose to access those funds annually on a pay go
basis as increment is available or make an interfund loan to TIF 1 -22 from the EDA
General Fund and pay it back on an annual basis as increment is available. She suggested
that the interfund loan option would maximize those dollars and confirmed that the EDA
could choose to assign an interest rate of 0 %.
Based on preliminary estimates, the ending balance for TIF 1 -22 is $625,000. The EDA
is required to return $600,000 in excess increment to the County for redistribution. The
County will return a portion of the funds to the City to be used in the City's General
Fund.
Tracy Hinz asked several questions about excess tax increment in an effort to understand
the requirements and ensure that the EDA had been proactive in its financial planning.
Omdahl explained that, although previous reports had calculated repayment at the end of
the district, TIF law requires that excess increment be returned annually. She also pointed
out that the EDA had chosen to keep all existing parcels in the district in order to
maximize funds available for pooling.
Tom Perrault asked if there was a reason not to make an interfund loan. Omdahl
suggested that it would not be reasonable to do so if future projections made it seem
unlikely that the loan could be paid back.
Hinz also asked about the excess increment listed as available for housing. Omdahl noted
that increment would only be available if EDA takes action to spend the extra 10% on
housing.
TRACY HINZ MOVED TO ADOPT RESOLUTION 2014 -025, APPROVING THE
TERMS OF AN $800,000 TAX INCREMENT INTERFUND LOAN IN CONNECTION
WITH TAX INCREMENT FINANCING DISTRICT NO. 1 -22 WITHIN CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO. 1. ROD DRAGSTEN
SECONDED THE MOTION. MOTION CARRIED 6 -0.
EDA Minutes: 3/12/14
7. Consideration to Adopt Resolution 2014 -023 Approving Purchase Agreement for
Property at 130 East Broadway, PID #155010034102
Wayne Oberg reported that the City had signed an agreement to purchase Monticello
Liquors for $275,000 and $4,400 in associated costs. The property purchase will be
funded through the recently approved interfund loan. The City will also purchase all of
the unopened liquor stock.
The sellers will have 60 days to retrieve personal property. Staff at the DMV will provide
access to the property (during DMV hours) with the seller's permission and a signed
waiver. The EDA is not responsible for damage after the April 15th closing date.
Tom Perrault pointed out that both the buyer's and the seller's address were listed as
avenues on the purchase agreement but should instead be listed as streets.
BRIAN STUMPF MOVED TO ADOPT RESOLUTION 2014 -023 APPROVING A
PURCHASE AGREEMENT FOR PROPERTY AT 130 EAST BROADWAY, PID 155-
010- 034102. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6-
0.
8. Consideration to Adopt Resolution 2014 -022 Adopting a Modification of the Tax
Increment Financing Plan for Tax Increment Financing District No. 1 -39
Tammy Omdahl summarized that the modification to the TIF Plan for TIF District 1 -39 is
necessary to reflect transactions approved by the EDA and the City Council that occurred
since the district was originally established. These transactions are related to an increase
in the amount of bonded indebtedness and an increase in the estimated cost of the project.
The City Council will hold a public hearing on March 24 to consider the modification.
BRIAN STUMPF MOVED TO ADOPT RESOLUTION 2014 -022, APPROVING
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1 -39. MATT FRIE SECONDED THE
MOTION. MOTION CARRIED 6 -0.
9. Consideration of the Director's Report
Workplan - Staff will synthesize recent EDA workplan discussions and craft a statement
to be further refined at an EDA worksession to be scheduled within the next few months.
Negotiations Team — Staff will ask City Council to take formal action to establish a regular
meeting time for the Negotiations Team.
Montgomery Farms Tenant Relocation Status — A building permit has been issued and
EDA Minutes: 3/12/14
inspections underway at the relocation site. April 1' may be an optimistic occupancy date.
Staff have taken action to address the issue of unpaid 2014 rent.
TIF 1 -22 — Preliminary inquiries are in progress.
10. Adiournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 6:46 PM. ROD
DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder: Kerry Burri
Approved: April 91h, 2014
Attest: oe�zz (Vxt,.,j
E 6 epresentative
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