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EDA Minutes 02-11-2015 (Special Meeting)MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, February 1111, 2015 - 4 PM Academy Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Lloyd Hilgart, Steve Johnson, Tom Perrault Absent: None Others: Jeff O'Neill, Angela Schumann 1. Call to order Bill Demeules called the special meeting to order at 4:00 p.m. 2. Purpose The purpose of the workshop is to develop the 2015 EDA Workplan. 3. Consideration of Workplan Goals and Objectives Angela Schumann noted that the EDA had participated in a workshop to discuss ideas and priorities for 2014 but had not formally adopted a work plan for last year. She suggested that the EDA reflect on its 2013 workplan and other related resource documents as a framework for developing the 2015 workplan. She noted that the City's Economic Development chapter of the Comprehensive Plan outlines broad goal categories and related goal statements previously established by the EDA. She suggested reviewing these goals as well as those included as part of EDA's policies related to business retention and expansion and redevelopment. Schumann asked the EDA to consider if they intend to be proactive or reactive as a body and that they prioritize the goals included in the workplan. Bill Demeules suggested that the EDA must be both proactive and reactive depending upon circumstances. Lloyd Hilgart suggested that the EDA can be as proactive as there are funds available. Schumann suggested that staffing availability is a key consideration as well. Bill Demeules noted that a housing component had not been included as part of the 2013 workplan and that there is TIF money available that can only be used for housing. Jeff O'Neill summarized that staff had done a great job of reacting to immediate needs to keep development processes moving along. He pointed out however that, due to limits to staff time, it has been extremely difficult to also be proactive in addressing development goals. He asked that the EDA to review the benefit of the Market Matching services contract which expires in June. Special EDA Minutes: 02/11/15 Bill Tapper suggested that the EDA should decide if Market Matching is working and to what degree it is working. He also wondered what a new contract would cost and if WSB would still be interested in contracting. There was significant discussion related to the difficulty of measuring the success of the outreach and prospecting component of the contract especially as the economic climate has only recently begun to improve. Johnson suggested that the EDA was getting its money's worth in terms of WSB handling updating marketing materials and paying for the cost of dues and memberships. He pointed out that John Uphoff was still learning how to sell Monticello and that this networking lays the foundation for selling Monticello in the future. Schumann noted that it takes staff time to manage the contract. There was some discussion related to perhaps finetuning expectations, especially as related to deliverables within a revised contract. Jim Davidson suggested the option of paying on a commission basis for the lead generation component of any future contract. Johnson suggested that additional staff assistance might come in the form of an ombudsman position to interface between the city hall and businesses to help solve issues. Lloyd Hilgart indicated that he felt the EDA should discuss the EDA Director position because it doesn't make sense to set goals if there isn't the manpower to achieve them. Tracy Hinz asked if there was money in the budget for a position. She indicated that she'd lean toward hiring a full time EDA Director. Demeules suggested that the position may need only be part-time. O'Neill suggested that it would have to be budgeted for 2016. Schumann noted that the Admin Assistant position has now evolved to more of a technician for Community Development. She said that the position would assist with handling some of the administrative tasks related to economic development in future as well. Schumann pointed out that the IEDC is a supporting organization with similar goals. There was some discussion related to efforts to more visibly connect staff with existing businesses. Tapper acknowledged that the EDA had been underfunding the process for the last couple of years and that they are not real satisfied with the results. Hilgart made the distinction that the EDA would not be asking for additional staff but rather asking to replace the staff they had lost. 2 Special EDA Minutes: 02/11/15 Tom Perrault said that he'd considered possibly going month to month with Market Matching after this contract ends. He wondered if Market Matching had produced anything that increased the City's tax base. There was some discussion about the role of property owners themselves in bringing retail businesses. O'Neill pointed out that the City had set the stage for future retail development by planning for it by in specific locations. There was significant discussion related to the unrealistic expectations as to how much it would cost to redevelop downtown and how to pay for it. O'Neill suggested that the City has a huge opportunity to do some housekeeping and prepare to better the future. He suggested exploring all of the possibilities related to accessing funds to shape the community. O'Neill pointed out there is a return on the investment in terms of improving the tax base. Schumann asked what kind of resources staff might provide to help the EDA make a case LO the City Council. Demeules suggested the EDA look at the various alternatives available to finance redevelopment projects. There was some discussion related to options to bond, to levy or use tax abatement strategies. Jim Davidson pointed to the need for citizen buy in as to what may be planned for Block 34, why the property may sit empty for some tune, and how redevelopment may be funded. Tracy Hinz asked about process. O'Neill said that the EDA would have to pass a resolution identifying a funding strategy for moving forward with downtown redevelopment by June in order for it to affect taxes next year. Schumann summarized that the EDA seems to be in general agreement that, though all of its redevelopment goals are important, funding does not currently exist to do the work. She suggested that the EDA may wish to direct staff to report back with research related to financing strategies including, but not limited to bonding, levying authority, tax abatement, and existing resources. Schumann also indicated that the EDA may find it useful to review examples of how comparable communities have utilized such tools for redevelopment and to consider real cost analyses on a block by block basis. Schumann also encouraged the EDA to obtain City Council input in a workshop format. Hinz suggested that the EDA identify those 2013 workplan goals that had been addressed. As related to EDA's goal of attracting & retaining jobs, Hinz pointed out that the EDA chose to contract for Market Matching services rather than hire an Economic Development Sales (and Marketing) position. There were questions as to whether or not the contract successfully acts as primary outreach in developing and fostering lead opportunities outside of Monticello. Schumann noted that the EDA frequently refers to 3 Special EDA Minutes: 02/11/15 the McCombs study and analysis for benefit of redevelopment opportunities as had been identified in the workplan. Hinz pointed out that there had been an effort made to address the EDA's goal to develop the needed and necessary marketing materials for City and EDA properties. There was some discussion about the process for posting property for sale for development signs at 413 4th Street, the Cedar Street Garden Center and the Fred's Auto site. O'Neill will check with City Council about also obtaining signage for the vacant lot across River Street. O'Neill asked for input related to the EDA's goal related to existing City development staff continuing to implement efforts to recognize and support existing Monticello businesses. Johnson emphasized that communication is key to improving perception. Schumann pointed out that the IEDC's roundtable discussions provide an opportunity for staff to share development information and get a read on topics of relevance in the business community. Staff also look to the IEDC for input and assistance in reaching out to the broader community. Schumann pointed out that the EDA had not yet addressed its goal of expanding the tax base by developing a spending plan for the $700,000 in increment remaining in TIF 1 -6. She noted that as an unrestricted, decertified district with no timeframe for utilizing the increment, TIF 1 -6 is a tool in the EDA's toolkit. Tapper also suggested that the EDA could borrow against funds remaining in TIF 1 -5 after the completion of the 7th Street extension project. Schumann pointed out that the EDA's Redevelopment policy had established focus areas in support of the Enhancing Downtown goal included in the workplan. Tapper noted that the EDA had acted on spending increment from TIF 1 -22. Schumann pointed out that the EDA also has the ability to borrow against future increment in 1 -22. Hinz asked if any TIF districts were due to decertify in 2015 -2016. Schumann said that the Dahlheimer and Walker districts would be coming off the books. She noted that Omdahl is also preparing a memo related to the status of the Landmark Square district. O'Neill suggested that the EDA may want to explore an option to earmark a portion of a decertifying district for a levy to be used for economic development. Schumann also explained that the 2012 TIF management plan is due for revision and that this cost should be included in the 2016 EDA budget. Steve Johnson noted that staff continues to work to address the goal of supporting the efforts of ReSTOREing Downtown by meeting monthly to coordinate activities and address issues. Davidson asked if there is a mechanism for reporting progress. Schumann suggested that updates could be included in the Director's report. Schumann noted that the EDA continues to be mindful of its facilitating redevelopment goal as it considers redevelopment options on properties such as 413 4th Street. 4 Special EDA Minutes: 02/11/15 Hinz noted that the 2013 Housing goal statements were still valid and require attention. Several commissioners expressed interest in making it a priority to develop a spending plan to use available excess increment in existing housing TIF districts and in completing a housing study to determine the need for affordable /senior housing within the community. Hinz suggested inviting Tammy Omdahl from Northland to lead a workshop to explore these issues. O'Neill suggested also reviewing the bottom 2% of the housing stock to determine its potential for redevelopment. Schumann suggested that the EDA schedule an additional workshop to further consider its 2015 workplan. 4. Adjournment BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 5:48 P.M. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Bum Approved: April 8' Attest: ,r y A�gela Sah , Community Development Director