EDA Minutes 08-13-2014MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, August 13, 2014, Mississippi Room, Monticello Community Center
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Rod Dragsten, Tom Perrault, Brian
Stumpf
Absent: Matt Frie
Others: Jeff O'Neill, Wayne Oberg, Angela Schumann
1. Call to Order
Bill Demeules called the meeting to order at 6:00 p.m.
2. Approval of Minutes
a. July 9`h, 2014 Regular Meeting Minutes
BRIAN STUMPF MOVED TO APPROVE THE JULY 9TH, 2014 REGULAR
MEETING MINUTES AS PRESENTED. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED 6 -0.
b. July 14a', 2014 Special Meeting Minutes
BILL TAPPER MOVED TO APPROVE THE JULY 14TH, 2014 SPECIAL
MEETING MINUTES AS PRESENTED. ROD DRAGSTEN SECONDED THE
MOTION. MOTION CARRIED 5 -0. (Tracy Hinz did not vote as she was not present
at that meeting.)
3. Consideration of adding items to the agenda
• Preliminary Development Agreement, Rocky Mountain Group LLC
• TIF Information
4. Consideration of approving payment of bills
Tom Perrault pointed out that it appears that the EDA should not have been charged a
meeting recording cost for July 14, 2014 as the special EDA meeting scheduled for that
evening had not been recorded on camera. Angela Schumann agreed to check into and
resolve the matter as appropriate.
BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS THROUGH AUGUST
8TH, 2014 WITH THE MEETING RECORDING EXPENSE OF JULY 14TH SUBJECT
TO STAFF CLARIFICATION. BRIAN STUMPF SECONDED THE MOTION.
MOTION CARRIED 6 -0.
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5. Consideration to approve funding for 2014 Industry of Year/MN Manufacturer's
Week activities
Angela Schumann requested that the EDA consider funding the $1,000 expense
associated with providing breakfast for those in attendance at the 2014 Industry of the
Year event. The event is a business retention and expansion effort coordinated in
partnership with the Industrial and Economic Development Committee (IEDC) and the
EDA. This year's event is scheduled for Wednesday, October 22nd at the MCC in
conjunction with MN Manufacturer's Week. The event is Monticello's opportunity to
thank the manufacturing and industrial community for its efforts and contributions.
BILL TAPPER MOVED TO APPROVE FUNDING FOR THE 2014 INDUSTRY OF
THE YEAR EVENT. TRACY HINZ SECONDED THE MOTION. MOTION
CARRIED 6 -0.
6. Consideration to authorize a Request for Ouote for Environmental, Structural and
Demolition Services and for Redevelopment Qualification for City and EDA -owned
Properties on Block 34 and to appoint EDA members to a Development RFP team
for Block 34
Angela Schumann reported that City and EDA -owned properties on Block 34 must be
removed prior to the start of construction of the phased Highway 25 /CSAH 75
intersection improvements scheduled to begin in 2015. The EDA was asked to extend its
prior authorization for quotes for redevelopment district qualification, environmental and
structural analysis and demolition of buildings located at 100 and 112 Broadway East and
to include the property that the City recently acquired at 130 Broadway East. Staff would
then request quotes and bring forward various funding options for EDA consideration.
Schumann pointed out that it would be most efficient and cost beneficial to direct WSB
& Associates (WSB) to prepare a quote for handling the environmental and structural
analysis as they have been managing the overall intersection improvement project. The
EDA attorney recommended that LHB & Associates (LHB) submit a quote for
redevelopment qualification as this firm is widely recognized and accepted for this type
of work. Staff would rely on LHB and Kennedy and Graven to recommend the timing
related to building removal. The EDA has up to three years to establish a redevelopment
district after declaring the properties sub - standard. The overall project timeline is
dependent upon the availability of funding.
Staff had recommended obtaining a quote solely from WSB because, due to staff
limitations, WSB would prepare the RFQ as the City's in -house engineering firm and
then submit an RFQ in response. Although the commissioners seemed to agree, in
general, to the importance of obtaining multiple quotes, most acknowledged the
complexity and timing of this particular RFQ process. Schumann also pointed out that
multiple quotes are not required because the City contracts with WSB for such
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professional services. The RFQ must be prepared by September. l st to meet the
September 30''target date.
TOM PERRAULT MOVED TO AUTHORIZE STAFF TO REQUEST QUOTES FOR
ENVIRONMENTAL, STRUCTURAL AND DEMOLITION SERVICES FROM WSB
AND OTHER SOURCES AND REQUEST QUOTES FOR REDEVELOPMENT
QUALIFICATION FOR CITY AND EDA -OWNED PROPERTIES ON BLOCK 34
FROM LHB AND OTHER SOURCES. MOTION FAILED DUE TO LACK OF A
SECOND.
BRIAN STUMPF MOVED TO AUTHORIZE STAFF TO REQUEST A QUOTE FOR
ENVIRONMENTAL, STRUCTURAL AND DEMOLITION SERVICES FROM WSB
AND REQUEST A QUOTE FROM LHB FOR REDEVELOPMENT QUALIFICATION
FOR CITY AND EDA -OWNED PROPERTIES ON BLOCK 34. BILL TAPPER
SECONDED THE MOTION. MOTION CARRIED 5 -1 WITH TOM PERRAULT
VOTING IN DISSENT.
Staff also asked that the EDA appoint two members as liaisons to a team responsible for
developing a Request for Proposal (RFP) for the redevelopment of Block 34. A draft RFP
will be presented to the EDA and City Council for consideration.
ROD DRAGSTEN MOVED TO APPOINT EDA MEMBERS TRACY HINZ AND
TOM PERRAULT TO A DEVELOPMENT RFP TEAM FOR BLOCK 34. BILL
TAPPER SECONDED THE MOTION. MOTION CARRIED 6- 0.
7. Consideration of a recommendation for 2015 EDA Budget Request to the Monticello
City Council
Finance Director Wayne Oberg reviewed proposed revenue and expenditure sheets
related to the 2015 EDA budget and recommended that the EDA request a City Council
allocation of $94,900 to the EDA General Fund for 2015. This is a 2.1% or $1,900
increase in the operating budget over the 2014 allocation approved by the Council last
year. Oberg noted that the budget includes $250 in additional revenue resulting from of a
proposed increase in the fee for land rental to offset the amount of property tax the City
pays on the parcel. The proposed allocation amount was included in the recent budget
presentation to the City Council.
Oberg highlighted the financial status of the TIF districts and pointed to a few
transactions that need be handled differently in order to comply with state reporting
requirements. He indicated that staff were working with Tammy Omdahl of Northland
Securities to prepare budget modifications on some TIF projects in order to comply with
the TIF Plan.
Oberg clarified that the $220,000 shortfall in TIF 1 -22 is the result of borrowing against
future increment in that district to pay for downtown redevelopment activities including
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the recent Monticello Liquors acquisition.
Oberg noted that more money had been transferred out of TIF 1 -34 over the life of the
district than the district had been collecting. Angela Schumann pointed out that, in
addition to changes in valuation, less increment had been generated in that district
because not all of the district had developed as anticipated. Staff have proposed an
interfund loan resolution to address the $235,708 shortfall. That will be the subject of
another discussion. Future transfers will reflect the amount actually collected.
Oberg pointed out that almost all the GMEF loans had been paid off and there is a $1
million dollar balance in that account. He clarified that the $3.4 million reflected in the
EDA General Fund balance includes $1.1 million in cash and $2.3 million in land held
for resale.
He also noted that, in future, staff would report the status of TIF districts beyond the date
of decertification until funding has been utilized.
BILL TAPPER MOVED TO RECOMMEND THAT THE CITY COUNCIL
ALLOCATE $94,900 TO THE 2015 EDA GENERAL FUND BUDGET. TRACY HINZ
SECONDED THE MOTION. MOTION CARRIED 6 -0.
8. Consideration of the D'irector's Report
Market Matching Update — On August 11th, staff hosted a site selector luncheon to
showcase Monticello. The site selector was very impressed with the 1 gig speed of
FiberNet and the tour of Suburban Manufacturing. The Market Matching team will
provide an update during the City Council meeting on August 25th.
City/EDA Land Tour — The tour of EDA/City owned properties is scheduled for 4 p.m.
Wednesday, September 10th. Tom Perrault pointed out that city -owned parcels numbered
1 -9 should be extracted from the listing as these are not for sale.
Building Business in Monticello Website — The $150 web hosting services contract will
be extended for one year in order to maintain an economic development site presence
while evaluating options for best use and opportunities to update the site more frequently.
The EDA was asked to review the site and provide input.
Business Subsidy Compliance - Northland Securities continues to update TIF District
and loan program compliance records. Business subsidies are in good shape in regard to
wage and job goals.
TAC /Transportation Update - Staff will continue to discuss options with the Wright
County Transportation Committee for maintaining on street parking on west CSAH as
part of intersection improvements to TH25 /CSAH 75 and bring forward a
recommendation for TAC consideration by mid - August.
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Regional Transportation Planning — Clint Herbst and Tom Perrault continue to
represent Monticello in regional transportation planning meetings in an effort to enable a
collaborative area -wide process.
9. Consideration of items added to the agenda
Preliminary Development Agreement - The EDA had received a letter of request
from Dahlheimer Beverage (Rocky Mountain Group, LLC) to extend their
Preliminary Development Agreement which expires August 15, 2014. This would
allow for a continued option to purchase two outlots adjacent to the company's
existing facility and the inclusion of these parcels within the existing TIF District.
Staff has learned, however, that the existing TIF District is scheduled to decertify in
2015, and, due to changes in TIF law, it is no longer eligible for expansion because it
has been more than 5 years since the 2005 district certification. Staff will work with
Dahlheimer Beverages to discuss options for establishing an agreement which allows
for the option of future TIF district expansion under a business subsidy arrangement.
• TIF Information — The EDA received copies of a document which provides an
overview about tax increment financing for reference purposes.
10. Adjournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 7:08 PM. BILL
TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder: Kerry Burri _J4T;
Approved: September 10d' e2qM
Attest:
EDA Redet#ve