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EDA Minutes 01-14-2015MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 14, 2015, Mississippi Room, Monticello Community Center Present: Bill Demeules, Tracy Hinz, Tom Perrault, Lloyd Hilgart, Jim Davidson, Steve Johnson Absent: Bill Tapper Others: Jeff O'Neill, Wayne Oberg, Angela Schumann, Tammy Omdahl (Northland Securities) 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approval of Minutes TOM PERRAULT MOVED TO TABLE THE DECEMBER 10, 2014 SPECIAL MEETING MINUTES AND REGULAR EDA MEETING MINUTES. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. 4. Consideration of adding items to the agenda Property Insurance 2015 WCEDP Membership 5. Consideration of approving payment of bills Bill Demeules invited EDA members to contact staff in advance with any questions related to invoices. Tom Perrault asked about PayGo. Wayne Oberg explained that PayGo loans are a way that the EDA can spur development by reimbursing redevelopment expenses. Tammy Omdahl, of Northland Securities, added that a PayGo agreement requires that the EDA pay only 90% of the tax increment over the life of the TIF District to the extent that tax increment generated is sufficient to do so. There is no obligation to satisfy the par amount of the note. TRACY HINZ MOVED TO APPROVE PAYMENT OF BILLS THROUGH DECEMBER 2014. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 6 -0. EDA Minutes: 1/14/15 6. Consideration to adopt Resolution EDA- 2015 -001. a Resolution Approving the Elimination of Parcels from Tax Increment Financing District No. 1 -22 Within Central Monticello Redevelopment Proiect No. 1 Tammy Omdahl explained that the EDA must remove all 13 parcels from Block 34 of TIF District 1 -22 before authorizing any demolition or construction work for which the EDA plans to be reimbursed from future tax increment from a new TIF district. This modification to the TIF Plan does not require notice or public hearing and the EDA is not required to request City Council approval. Omdahl explained that only three of the parcels to be removed from the District generate tax increment. The EDA is only able to retain some $3,000 of the $13,000 generated from these parcels due to pooling limitations. Approximately $10,000 is returned annually as excess tax increment to the County for redistribution and the County returns a portion of those funds to the City's General Fund. Omdahl noted that modification of the TIF Plan is a necessary step in preparation for establishing a new redevelopment TIF District (TIF 1 -40) which would include the parcels located within Block 34 at a future date. Tom Perrault asked about the potential configuration of a new TIF District. Omdahl indicated that the potential configuration is still to be determined. She noted that the letters of findings related to the properties scheduled for future demolition preserve the EDA's right to establish a TIF District in the future. LLOYD HILGART MOVED TO ADOPT RESOLUTION EDA- 2015 -001, A RESOLUTION APPROVING THE ELIMINATION OF PARCELS FROM TAX INCREMENT FINANCING DISTRICT NO. 1 -22 WITHIN CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 7. Consideration to approve specifications and authorize advertisement of bids for demolition of EDA -owned building at 100 East Broadway Angela Schumann asked that the EDA approve specifications prepared by WSB and authorize advertisement of bids for demolition of the building located at 100 East Broadway. Bids for the project are due February 13, 2015. The EDA will be asked to consider approving a contract at its March meeting. Schumann stated that the ERA's attorney advised that the EDA must adopt findings and a resolution declaring the building substandard prior to demolition. It is the actual demolition itself that triggers the 3 year window within which a new redevelopment TIF district must be established. Staff have established a timeline which will allow the EDA to take advantage of the opportunity to create a new district. EDA Minutes: 1/14/15 Tom Perrault asked if there would be lane closures as a result of the demolition work. Schumann noted that the City Engineer indicated that the contractor is required to provide traffic control. Staff will revise sections A8, B6 and B9 of the contract to indicate that the contractor is responsible for all traffic control including lane closures, required permits and coordination with MnDOT and Wright County. Staff will strengthen the permit language in the contract beyond the already noted flagmen for sidewalk closures to make sure all issues are addressed. Schumann reminded the EDA that there are hazardous materials that must be removed before the building can be demolished. WSB will provide on -sight demolition project management and oversight. Further action of the EDA may be required should evidence of contamination be found. Hilgart asked if WSB had provided an estimate of demolition costs. Schumann said that WSB had estimated it would cost $100,000 to demolish all three buildings. She noted, however, that the estimate may have increased based on information included within the Phase 1 and environmental studies. TRACY HINZ MOVED TO APPROVE SPECIFICATIONS AND AUTHORIZE ADVERTISEMENT FOR BIDS FOR DEMOLITION OF EDA -OWNED BUILDING AT 100 EAST BROADWAY. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. 8. Consideration to appoint Northland Securities as EDA Financial Advisor for 2015 The City Council appointed Northland Securities as the City's Financial Advisor for 2015. Staff recommended that the EDA also appoint Northland Securities Financial Advisor for 2015. LLOYD HILGART MOVED TO APPOINT NORTHLAND SECURITIES AS THE EDA FINANCIAL ADVISOR FOR 2015. STEVE JOHNSON SECONDED THE MOTION. Iace1 exiE 1399t O :ffla 9. Added items Property Insurance - Wayne Oberg explained that he had confirmed with the insurance agent and the League of MN Cities Insurance Trust that terminating property insurance coverage on EDA owned properties located at 100, 112 and 130 East Broadway, which are planned for eventual demolition on Block 34, would not affect the City's liability coverage on these properties. He noted that the EDA would receive a refund for the coverage period which ends in July 2015. LLOYD HILGART MOVED TO CANCEL PROPERTY INSURANCE COVERAGE FOR THE BUILDINGS LOCATED AT 100, 112 AND 130 EAST BROADWAY IN EDA Minutes: 1/14/15 MONTICELLO. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. Consideration to approve 2015 Wright County Economic Development Partnership annual membership dues Staff asked that the EDA approve the 2015 annual membership contribution for Wright County Economic Development Partnership ( WCEDP). WCEDP is membership -based economic development agency acting on behalf of cities within Wright County. The organization is a valuable partner in the continued marketing of the community to a broader base of prospects. Jeff O'Neill pointed out that Monticello had been a founding member of the partnership. Schumann stated that the WCEDP provides both networking opportunities and programming in support of economic development initiatives. O'Neill volunteered to invite Executive Director Duane Northagen to provide an overview of the role of the WCEDP at an upcoming EDA meeting. TRACY HINZ MOVED TO APPROVE AUTHORIZING PAYMENT IN THE AMOUNT OF $2,445.90 FOR 2015 MEMBERSHIP DUES TO WRIGHT COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 6 -0. 10. Economic Development Director's Report • TAC — Bill Tapper will continue as the EDA representative to the TAC for 2015. Fallon Avenue - The TAC will meet with property owners to review the Fallon Avenue crossing and alignment connection to 7d' Street on January 22nd. St. Henry's Church representatives have shown interest in related land negotiation. I -94 Expansion — The I -94 Coalition is expected to report that the legislature will present a bill calling for further freeway expansion and overpass improvements. Ili hhwway 25 Corridor — Officials from Becker, Big Lake and Monticello and Sherburne and Wright Counties have been meeting to discuss a common vision and goals related to enhancing transportation between Highway 10 and 94. I -94 Interchange — The TAC will review a timeline for locating a new freeway interchange within parameters ranging from County Road 39 to Orchard Road. For Sale Signs — EDA Property — Staff is obtaining quotes for "for sale" signs for Cedar Street garden site, the former Fred's Auto site and the 4d' Street site. The zoning ordinance allows for signs up to 96 square feet in area. There was some discussion about the need for the maximum allowable size signage and options for reducing cost. Staff will clarify City /EDA ownership of the 4d' Street property. ® Market Matching Report — WSB's John Uphoff provided the following update for the months of November and December. 2014 Industrial and Economic Development Annual Summit — Uphoff pointed to an emerging, heightened demand for commercial industrial space along the I -94 EDA Minutes: 1/14/15 corridor northwest of the Twin Cities. Economic Development Day at the Ca ip tol — Uphoff will meet with legislators to market Monticello during Economic Development Day at the Capitol in early February. EDA members are welcome to attend as well through membership with the Economic Development Association of Minnesota (EDAM). Urban Land Institute — Presenter Michael Langley from Greater MSP advised Urban Land Institute attendees to have a community profile to present to developers. Uphoff noted that most communities do not. Monticello's community profile was held up as an example. Tracy Hinz asked how the meeting with Kevin Sorenson and Kevin Green came about. Uphoff said that Sorenson had invited WSB to attend. They'd recently retained Land Vista (Kevin Green) to broker the site north of I -94 along 7th Street. Green was interested in obtaining market data learning more about marketing the City to make sure that efforts are aligned. Lloyd Hilgart asked for an update related to a previously noted potential manufacturing interest in the industrial park and along Chelsea Road. Uphoff indicated that he continues to be in touch with the lead and believes that the project is still on the table. EDA 2015 Work Plan & Annual Meeting — Schumann recommended that the EDA schedule a workshop to conduct annual business and develop a work plan. TRACY HINZ MOVED TO CALL FOR A WORKSHOP AT 4:00 PM ON WEDNESDAY, FEBRUARY 11TH,2015 FOR THE PURPOSE OF 2015 WORK PLAN DEVELOPMENT. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. In an effort to orient the new EDA Commissioners, Schumann pointed to links to agendas, minutes and recorded meetings on the EDA page of the City's website. Staff will provide additional resources related to statutes and TIF principles. 11. Adjournment TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:08 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Approved: Attest: