City Council Minutes 05-09-2012 SpecialMINUTES
SPECIAL JOINT MEETING — MONTICELLO EDA AND
MONTICELLO CITY COUNCIL
Wednesday, May 9, 2012 — 6:30 p.m.
Mississippi Room, Monticello Community Center
Present - EDA: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt
Frie, Rod Dragsten, Tom Perrault, Brian Stumpf
Present - Council: Mayor Clint Herbst, Glen Posusta
Absent - Council: Lloyd Hilgart
Others: Megan Barnett Livgard, Jeff O'Neill, Tom Kelly, Angela Schumann, Dan
Wilson (Wilson Development), Martha Ingram (Kennedy & Graven)
1. Call to Order
EDA President Bill Demeules called the meeting to order at 6:26 p.m.
2. Purpose of Meeting: Update on Montgomery Farms & Downtown Redevelopment
Megan Barnett Livgard introduced Martha Ingrain and noted she will be discussing the
closing of the Montgomery Farms property. Dan Wilson will be reviewing the relocation
process and what to expect. Megan also has some items to review on the Downtown
Redevelopment.
3. Montgomery Farms - Closing Status & Tenant Relocation Status
Martha Ingram explained that there always seem to be some things that hold up a closing.
Due to the fact that the opposing attorney has not provided the requested documents
needed for closing, two closing dates have been cancelled. At this time, no closing date
has been rescheduled. Martha Ingram is looking for direction regarding several items.
Tenant issues -- residential units: tenants previously paid damage deposits and
question is whether Montgomery Farms can keep damage deposits in lieu of
unpaid rent. Martha Ingram noted that normally it is expected that those damage
deposits would transfer to the buyer (City) as a continued damage deposit. Brian
Stumpf asked about the back rent and what impact that might have. Martha
Ingram noted that unpaid rent would be adjusted in relation to relocation costs.
Dan Wilson noted that the City cannot count unpaid rent against the tenant in
consideration of terminating their lease until they have established a record of
non - payment with the City. Clint Herbst asked what impact continued non-
payment of rent would have on the City. Dan Wilson explained that the City
would be trying to find a comparable site for the renters and provide them with a
90 -day notice) to vacate the premises. Clint Herbst asked what happens if the
renters do not get accepted at another site due to non - payment of rent. Dan
Wilson explained how that process would work with the City possibly negotiating
prepayment of rent by the City to the new landlord in lieu of relocation costs.
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Martha Ingram noted that Barbara Lee Dance Studio has given notice that they
will be ending their lease as of the end of June. The renter stated to Martha that
they paid their first and last month's rent when they signed the lease.
Montgomery Farms indicated that they never received a payment for last month's
rent at the time they made an agreement with the Dance Studio for the lease.
Martha Ingram has informed Montgomery Farms that discussion is between them
and the Dance Studio. However, the City could agree to negotiate that and ask for
proof from the tenant showing that they paid the last month's rent. Dan Wilson
has held discussions with the Dance Studio and the renter indicated that she is
interested in moving as soon as possible. He noted that she has not been able to
provide evidence that she paid the last month's rent, which she wants to apply to
her May rent payment.
Brian Stumpf stated that he does not feel it is worth the money to hold up the
closing on the properties for these small amounts. Bill Tapper indicated that he is
concerned about the length of time this could drag out and increase the costs of
attorney fees. Martha Ingrain indicated that the closing and subsequent
relocations will be a long process. Dan Wilson noted that Montgomery Fauns is
anxious to close on the sale and would like to get these small issues resolved.
Martha Ingram stated that she would like to have a clean closing with as few
issues as possible outstanding. Tracy Hinz asked how Martha Ingrain views this
delay in the closing; Martha Ingram feels these issues are small and it would be
best to get past them. If Montgomery Farms would call and want to close this
week, she feels it would be in the best interest of the City to get the closing done.
• Clint Herbst feels it is wise to take some time with the business relocations to
make sure the tenants are satisfied. Tracy Hinz asked if those renters will
receive a letter explaining the process of what will happen. Dan Wilson explained
that everyone has already received basic information about the process. Glen
Posusta asked about the relocation costs related to residential units. Dan Wilson
noted that current rates and costs for locating residential tenants into another site
that meets satisfactory requirements have to be taken into consideration and they
also have to look at their income. Dan Wilson noted it just takes a while to work
through all the issues. Bill Demeules asked if the City has any eviction rights and
Dan Wilson noted that would be under the same rules as any other landlord, with
the City having the right to serve notice for eviction. Dan Wilson explained that
if the City must find the residents another place to live; it is usually best to do this
in a positive manner.
• Glen Posusta asked about the other business tenants in the building. Martha
Ingram noted that the other businesses in the strip mall building have signed lease
holdover agreements.
• Megan Barnett Livgard noted that Dan Wilson will continue to work with the
business tenants and there will be invoices coming through for the City /EDA to
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pay for relocation costs. Dan Wilson explained that each invoice is reviewed for
eligibility before submitting for reimbursement. Dan Wilson noted there are five
criteria for eligibility and they make sure there is no duplication of costs and the
invoices are necessary and reasonable. Dan Wilson noted that there may be
instances when advance payments are made, as long as the review process shows
that the money would be part of the total relocation costs.
Brian Stumpf asked if Martha Ingram was looking for some direction from the
EDA regarding the closing process. Bill Demeules asked for a consensus from
the EDA and all agreed to have Martha Ingram move forward as quickly as
possible.
4. Downtown Redevelopment
Ace Hardware — provided copy of the letter to EDA members from Shawn Grady of Ace
Hardware. Mr. Grady's letter outlines an understanding of each parties responsibilities as
redevelopment occurs.
Old Napa Building — Megan Barnett Livgard and Bill Demeules sat down recently and
talked to Julie Reh about her intentions for the property. She is supportive of the
Embracing Downtown plan. At such time that a developer would come forward, it would
be a good opportunity to work with Julie Reh on the redevelopment of the fitture anchor
block. Clint Herbst noted it is important to work towards soliciting interest from the
development community.
Residential property on East 4ti' Street — Megan Barnett Livgard has been contacted by
the property owner to find out whether the City would be interested in purchasing this
property for $180,000. Consensus is that there is no interest at this time.
Tracy Hinz asked if there are plans to bring back Jim McComb in the near future to talk about
Embracing Downtown. Megan Barnett Livgard noted that she has that on the agenda for the
June EDA meeting.
Bill Tapper stated that he is very pleased with the work of Dan Wilson in regard to the
Montgomery Farm property purchase and relocations.
5. Adjournment
EDA President Bill Demeules adjourned the meeting at 7:20 p.m.
Recorder: Catherine M. Shuman &WLA,
Approved: May 29, 2012
Attest:
049y,ffgninistrator
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