Loading...
City Council Minutes 08-10-2011 SpecialMINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL AND MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Wednesday, August 10, 2011- 5:00 p.m. Boom Island Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None EDA: William Tapper, William Demeules, Matt Frie Absent: Tracy Hinz Staff: Megan Barnett - Livgard, Tom Kelly, Bruce Westby, Ron Hackenmueller, Angela Schumann, Jeff O'Neill, and Bret Weiss of WSB 1. Call to Order Mayor Herbst called the special meeting to order at 5 p.m. 2. Purpose of Meeting: Overview of Embrace Downtown Study, review of action items and discussion of TIF District 1 -22 Megan Barnett Livgard highlighted the topics to be discussed in the special meeting and encouraged participants to provide feedback. 3. Update on progress of Embracing Downtown Study & implementation strategies Megan Barnett Livgard led the discussion with a powerpoint presentation. As part of the Embracing Downtown Study, the group has introduced several concept plans and held a number of meetings. Philosophy of the concept plans is to use them as a guide for the comprehensive land use plan. The overall plan would be subject to change as redevelopment occurs. Transportation plans are also being incorporated as discussions take place regarding Walnut Street, Highway 25 and a second river crossing. The land use design calls for turning downtown by 90 degrees and highlighting the riverfront areas. Part of the implementation strategies are to address leadership in downtown, focus on being a sub regional center between Maple Grove and St Cloud, marketing/branding, and combination of private and public financing. Some stakeholders have raised concerns about potential rent structures, feeling they won't be able to afford higher rents. Megan Barnett Livgard explained that there will probably be variable rent structures that would be gradually implemented. Glen Posusta commented that this is a legitimate concern if old buildings are replaced, which is likely to create higher market rents. Another concern is the timing of the redevelopment and how that will occur. An Embrace Downtown Steering Committee meeting will be held at the end of August to Minutes of Joint City Council /EDA Special Meeting— August 10, 2011 Page 1 review final plans, ideas and strategies. Continued meetings will take place with downtown business owners. 4. Discuss priority projects to utilize surplus TIF in District 1 -22 Megan Barnett Livgard reviewed implementation strategies initiated by the Monticello EDA: Recent legislation could allow utilization of surplus TIF as a jump start to attract catalyst projects. Authorize purchase of Landmark II for future development. Megan Barnett Livgard talked about the process of negotiations and purchase. It is intended to use funds from TIF 1 -5 for the purchase. In order to do that, the Council would need to hold a Public Hearing to amend the finance plan for TIF 1 -5. Clint Herbst stated that Council would probably not be in favor of the purchase of this property at the current negotiated price. In that case, it is possible Council would not approve adjusting the plan which would not allow the funds to be used for the purchase. Brian Stumpf and Tom Perrault, Council liaisons to EDA, do not favor the purchase because they think the price is too high. Bret Weiss commented that it would probably be worthwhile for the City to try to spend the funds rather than turn them back to the County and only realize 40 percent. New legislation allows TIF surplus to be used for a greater variety of projects, including retail, as long as they create jobs. Opportunities and Priorities — completion of Hwy 25/75 intersection improvements could benefit from purchases of property in the intersection area and eventually be able to redevelop the downtown area. Bret Weiss talked about the advantages to gaining the needed rights -of -way at this time to complete the improvements for the full intersection. The property on the southeast quadrant would be priority for moving forward with the intersection improvements. Bruce Westby has been working on defining some revenue sources that could be used for the intersection improvements. Megan Barnett Livgard noted that the EDA owns the Garden Center property and would like to see if it would be possible to get that property developed. Glen Posusta asked if the EDA has ever been proactive in redeveloping property that they have purchased. Jeff O'Neill gave the example of the Crostini Restaurant and Barry Fluth's apartments, which previously was the site of a gas station. Megan Barnett Livgard explained that McCombs Group has talked to Welsh Companies and they may have some interest in helping develop the Garden Center land. Minutes of Joint City Council /EDA Special Meeting— August 10, 2011 Page 2 Megan Barnett Livgard noted that the EDA would like to engage Dan Wilson for assistance with developing a plan for funding the purchase of the dental building with the redevelopment project running through TIF 1 -22 as a funding source. Part of the process would include using the services of a relocation. Clint Herbst mentioned that the best way to handle this would probably be to negotiate with Clay Montgomery, owner of the property. Bret Weiss noted that WSB has worked on relocation properties for redevelopment and would suggest that the City engage authorities that can guide the City in this process, considering that federal funds will probably be part of the intersection improvements. Jeff O'Neill asked if the City would look at purchasing all three of the Montgomery properties. Clint Herbst felt that it would be more prudent to just purchase what would be needed for the street and intersection. Tom Kelly commented that staff had discussed negotiating for all three properties but to focus particularly on the dental building. • Megan Barnett Livgard also mentioned that she has had some discussions with ACE Hardware; they are looking for a new location and need a larger building with a different layout. They may be interested in the southeast quadrant block. Prior to adopting the Embracing Downtown Plan, the EDA recommends taking some actions including: approve design guidelines and initiate Embrace Downtown Overlay District, and amend CCD ordinance for transition areas. Megan Barnett Livgard pointed out the list of Top Priorities and noted these would qualify as expendable funds with surplus TIF. 1. Initiate negotiations for purchasing dental building (for intersection improvements to Hwy 25/75) and authorize engaging services of a relocation specialist. 2. Negotiate for purchase of Barry Fluth property. 3. Work with developer for Garden Center property. 4. Continue discussions with ACE Hardware for relocation in downtown. 5. Continue looking at opportunities to purchase key parcels for redevelopment as they become available and encourage private development. Brian Stumpf commented that some of the members on the EDA are relatively inexperienced. He recommended that there be an effort to coordinate discussions between the EDA and City Council so that they arrive at a consensus rather than working against each other. He noted that the learning curve related to TIF takes a while and he doesn't want to keep losing EDA members. Brian Stumpf suggested that the EDA and Council need to be in agreement on property purchases in order to move forward. Glen Posusta thinks it is well worth the money to come to the table with a current appraisal when discussing property purchases. Lloyd Hilgart thinks it makes sense to purchase corners to improve roads and intersection. He also thinks it makes sense to purchase land Minutes of Joint City Council /EDA Special Meeting— August 10, 2011 Page 3 for parking lots. Lloyd Hilgart said that it is a fine line and to be careful not to give an advantage to certain businesses at the expense of others. Clint Herbst pointed out that the purchase of the dental center is key to the intersection improvements. It would be required for the City to assist with relocating those businesses, and it may benefit the City in the long run to keep those businesses. Bret Weiss pointed out that for those downtown businesses that may have to relocate, the City would have to pay a relocation fee whether those businesses stay in Monticello or leave. The plan that Megan Barnett Livgard is bringing forward would help keep those businesses in town. Megan Barnett Livgard asked for comments on starting negotiations with Jim Peterson, representative for Montgomery Farms. Bill Demeules stated that he would like to see if there were some federal funds from the Small Cities grant monies that could be used toward this project. He feels that it might be worth exploring to see if that would be a permitted use for recycling those funds. Matt Frie asked if staff was looking at ways to utilize opportunities under the job creation legislation. Megan Barnett Livgard explained that those funds have to be tied into a project where there would be an end product such as a new building; it has to spur economic development and create new jobs. TIF funds could be used to purchase buildings that would be torn down for redevelopment. The jobs bill could be used to toward the intersection improvements as long as there is a new business developed. Jeff O'Neill stated that this is rather urgent to get moving forward, if there were interest in using the jobs money. It would be important to really get the word out to the development community in order to take advantage of that money. In summary, the EDA will consider authorizing an appraisal of the Landmark II property before continuing on negotiating a purchase. Staff will also begin the process of looking into potential redevelopment in the southeast quadrant to aid in future intersection improvements. 5. Adjourn As there was no further business, Mayor Herbst adjourned the special meeting at 6:05 p.m. Recorder: Catherine M. Shuman UYµd., Approved: September 12, 2011 Attest: 01 istrator Minutes of Joint City Council /EDA Special Meeting — August 10, 2011 Page 4