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EDA Minutes 06-10-2015MINUTES REGULAR MEETING — ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 10, 2015, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Others: Angela Schumann 1. Call to Order. Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call. 3. Approval of Minutes. BILL TAPPER MOVED TO TABLE APPROVAL OF THE MINUTES OF THE EDA MEETING. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7 -0. 4. Consideration of additional agenda items. None. 5. Consideration of approving payment of bills. Invoices included in the agenda packet for review and consideration. Bill Tapper inquired as to the bills for Advanced Disposal and Xcel Energy. Angela Schumann said that she will check into the dates for both of those to make sure that we aren't paying for services on buildings that are no longer there. BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH MAY 2015. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 7 -0. 6. Consideration to approve 90% Payment to Veit & Company, Inc. for abatement and demolition services at 100 East Broadway. Angela Schumann stated that on March 11, 2015, *lie EDA approved the contract with Veit & Company for the abatement and demolition of 100 East Broadway. Veit's original bid was $26,253 with an additional expense of $2,957 for the required trench box and sewer investigation which was approved by the EDA on May 13, 2015. The total approved project expensc is $29,209.71. WSB & Associates has reviewed the contracted and completed work and is recommending payment of 90% of the total original bid, or $23,627.70, with final payment to be authorized by the EDA upon resolution of a parking lot issue which arose on the adjacent property during site restoration. Schumann noted there was some damage to the adjacent property by a piece of Veit's equipment that had backed up onto the property. Veit will be meeting with the property owner on site next week to determine how to resolve the issue. TRACY HINZ MOVED TO APPROVE 90% PAYMENT OF THE ORIGINAL BID OF $26,253 OR $23,627.70 TO VEIT & COMPANY, INC. FOR ABATEMENT AND DEMOLTION SERVICES AT 100 EAST BROADWAY. MOTION SECONDED BY JIM DAVIDSON. MOTION CARRIED UNANIMOUSLY, 7 -0. 7. Consideration of an update and approval of expenses related to environmental study costs for the EDA owned Property at 100 East Broadway. Angela Schumann said the EDA is asked to consider approving $760 to support WSB's coordination for the Petrofund reimbursement application required to address the contaminant release discovered with the demolition of the EDA- o-,vned property at 100 East Broadway. While an expense was approved for the required environmental study and additional demolition services at the May 13, 2015 EDA meeting, this amount being requested was not included in the approval as it was unknown at that time if there was indeed a contaminant release. With the contaminant release now known, the required report is a Limited Site Investigation (LSI) document as required by the MPCA and not a Phase II Environmental (which was originally approved) in order to be eligible for Petrofund reimbursement. Testing results at the site were received on May 15, and indicated that the diesel range organics (DRO) of the sample taken was above the MPCA threshold, therefore constituting a contaminant release. The release was reported to the State and a Leak ID number has been assigned, which is a mandatory requirement. Tom Perrault noted that that in the letter from the MPCA it is indicated that a minimum of two written proposals are required to be considered for reimbursement of up to 90% of the cost of the LSI. However, at the time when the Phase II Environmental was authorized the EDA made the option to not go out for proposals due to the timeline of the project. WSB has been in contact with the PCA and they have indicated that the EDA can still apply for reimbursement for up to 80% of the eligible cost of the LSJ with application submittal and reimbursement may or may not be approved. The estimated eligible costs are $8,000 and with an 80% reimbursement, the estimated Petrofund reimbursable amount that could be received is $6,400. The LSI includes additional testing MnDOT is requiring above what the MPCA would consider Petrofund reimbursable expenses. BILL TAPPER MOVED TO APPROVE AN EXPENSE OF $7601OR COORDINATION OF LSI REIMBURSEMENT DOCUMENTS TO PETROFUND AS RELATED TO THE EDA -OWNED PROPERTY AT 100 EAST BROADWAY MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED UNANIMOUSLY, 7 -0. 8. Consideration to approve a license agreement for parlkin2 aw Cedar Street. Angela Schumann said that a temporary license to the City of Monticello for public parking purposes at the former Cedar Street Garden Center site, 201 East Broadway (EDA -owned property), is being requested. The adjacent property owners are experiencing a shortage of parking for customers and employees and, therefore, have been working with City staff to address the parking needs. A license agreement between the EDA and the City is sought in order to create a public parking option. Schumann explained that parking as a private principal use of property is not allowable under the zoning ordinance; however, public uses are allowed as principal uses of property and this would include public parking lots. Concerns were brought up by commissioners that this may be a one -sided benefit to businesses with the City incurring all of the expenses of maintaining the lot. Schumann explained that this parking lot being open to the public will also aid in the parking demand for the sliding hill at East Bridge Park as well as overflow parking during summer events in the parks along River Street. If approved, the City will be asked to authorize staff time and equipment for maintenance (snow removal, etc.) No repairs to the existing paved surface are planned under this agreement. Schumann said this license agreement is proposed as a temporary condition to allow the City Council and property owners to develop a long -term parking solution for this corridor. Staff is suggesting a termination date of the agreement on December 31, 2016. Bill Demueles asked about the potential for future developers to develop the property prior to the 2016 date. Schumann noted that language could be added to the agreement which would allow this. This will allow the time to develop alternatives and construct improvements associated with any approved option. LLOYD HILGART MOVED TO APPROVE A TEMPORARY LICENSE AGREEMENT FOR PUBLIC PARKING AS DESCRIBED FOR EDA -OWNED PROPERTY AT 201 EAST BROADWAY, WITH DIRECTION TO STAFF TO PREPARE A LICENSE AGREEMENT FOR EXECUTION BY THE EDA EXECUTIVE DIRECTOR AND PRESIDENT, WITH A TERMINATION DATE OF DECEMBER 31, 2016, OR WHEN DEVELOPMENT OCCURS, WHICHEVER IS SOONER. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED 6 -1 WITH BILL TAPPER OPPOSED. 9. Consideration to approve an update to the March 2014 Hospitauty Hospitality Study as related to Embracin2 Downtown Plan. Angela Schumann noted that in December of 2013, the EDA authorized funding for a hospitality study at the request of the reSTOREing Downtown organization. The 2014 study evaluated the City's position in the marketplace relative to the ability to support new hotel development. In particular, tike EDA was interested in lcar ing whether the downtown area might be a viable location for hotel development. Since the time of the study's completion, the report document has been distributed by Market Matching, City staff, and a number of local realtors. Staff has been contacted by various parties interested in hotel development in the community and, as a result, staff believes the study has been successful in generating preliminary interest in the Monticello market for hotel development. It has been indicated to City staff that in some cases, hotel developers may not be able to complete their own market studies, but rather require independent market analysis for investor purposes. The EDA's study may help remove that barrier. Therefore, staff contacted Hospitality Consulting Group (HCG) about updating their original study. The scope of the proposed 2015 update would provide information for gauging feasibility and financing for a new hotel development. Hospitality Consulting Group completed the 2014 study and has prepared a scope of work for an updated study which will look deeper in to the actual market feasibility for a hotel in Monticello as requested by City staff. Staff will work with HCG and hotel developers to provide the hotel schematic data for the report. Schumann said that she was careful to inform HCG that the City is not focused on any particular site or any particular developer but rather what the next step is for the downtown are, and if we wani io attract it, what does it look like and what is its market feasibility. HCG has provided an estimate of $4,000 for the updated study. This expense is proposed to come from EDA's General Sub -Fund which has a current balance in its Marketing line item of $16,350 as of the close of November 2013. Staff supports the completion of the update to the 2014 hospitality market analysis for the purpose of supporting further redevelopment activity consistent with the Embracing Downtown plan. BILL TAPPER MOVED TO RECOMMEND THE EDA CONTRACT WITH HOSPITALITY CONSULTING GROUP TO FUND AN UPDATED MARKET STUDY ANALYSIS FOR HOSPITALITY USES AS RELATED TO EMBRACING DOWNTOWN PLAN IN THE AMOUNT OF $4,000. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED UNANIMOUSLY, 6 -0; ABSTAINED 1, STEVE JOHNSON VOTED TO ABSTAIN DUE TO A POTENTIAL CONFLICT OF INTEREST AS REFERENCED IN THE STATEMENT OF CONFLICT OF INTEREST CERTIFICATION AND DISCLOSURE FORM DATED FEBRUARY 23, 2015 AS ENTERED IN TO THE RECORD OF THE EDA ON MARCH 11TH, 2015 AND AS DOCUMENTED IN THE APPROVED EDA MINUTES OF THE SAME. 10. Consideration of an update regarding 2015 -2015 Market Matching Services. Angela Schumann said that the current contract for services with WSB Market Matching expires in July 2015. City staff has met with the Market Matching representative to provide notice that further discussions will need to occur with the EDA and City as related to a 2015 -2016 contract. It was noted that if an economic development staff position were created, the contract would likely be modified accordingly. Schumann said that the EDA subcommittee met on May 21St to begin their discussion on an economic development staffing recommendation. If the EDA would prefer that staff request a contract for the 2015 -2016 Market Matching services, staff will work with the Market Matching team to prepare the documentation for a July review. Should the EDA wish to work through the staff evaluation prior to a new Market Matching contract, the EDA will discontinue payment of $4,000 per month for services beginning in July 2015. Information on costs for a modified contract for services will be provided with a future recommendation on staffing and marketing services. Staff recommends proceeding with continued evaluation of economic development staffing prior to proceeding with a Market Matching contract extension. The City's budgeting process will begin shortly, and as such, the EDA will need to prepare its staffing recommendation for Council review. The outcomes of Council's decisions will also impact the EDA's direction. Tracy Hinz asked about what tangiblc duties may not get done if the contract is not renewed for Market Matching services in July. Schumann noted that WSB puts together a monthly a -news for the economic development community and that would not be going out. Also, on a quarterly basis there are maps posted on the Building Business in Monticello website (industrial, commercial, and downtown maps) which illustrate all of the available properties and provides baseline information on those properties and a link to the realtor's page or the property owner's page. WSB reaches out to each one of those realtors or property owners to ensure their information is current; so that would not occur. If the City needs to update any of the sale sheets or any of the community profile documents that we've gotten, that would end unless we want to contract with WSB on an hourly basis until some type of contract could be developed. The content of the documents is the City's; however, that information would have to be transferred and the City does not have the software to update those documents in their current form. Brian Bourassa from WSB & Associates thanked the EDA and the City for the opportunity and noted that it has been a very good working relationship between City staff, the EDA and WSB. Bourassa answered questions from the EDA Commissioners. Bill Tapper asked about the option of extending the contract on a month to month basis at the current contracted rate. Bourassa said that WSB would be willing to do that. Hinz said that she thinks that updating the documents is a vital piece of information that's needed and noted that there may be specific tasks that the EDA .nay waist to retain with WSB on an hourly basis. Bourassa said that Schumann has the hourly rate data for WSB and could go through that. Tom Perrault said i]e would like to see evidence of businesses coming to town because of these Market Matching services by WSB. Hinz asked to see a monthly invoice going forward that breaks down the deliverables. Staff will also request that the WSB staff member attend the EDA meeting monthly to provide updates. BILL TAPPER MOVED TO EXTEND THE MARKET MATCHING CONTRACT WITH WSB & ASSOCIATES ON A MONTH TO MONTH'BASIS AT THE CURRENT CONTRACT RATE UNTIL SUCH TIME A STAFF MEMBER IS HIRED AND SUFFICIENTLY TRAINED; AT WHICH TIME IT WILL BE DETERMINED WHAT SERVICES MAY BE RETAINED WITH WSB. MOTION SECONDED BY STEVE JOHNSON. MOTION CARRIED UNANIMOUSLY, 7 -0. Schumann noted that staff will work with Market Matching to create the document that has been discussed and then forward to the EDA for review and comment at the July meeting. 11. Consideration of Director's Report. The complete Director's Report was included in the EDA agenda packet for review. Angela Schumann provided background information on the following topics of discussion with no action being taken at this time: • EDA Annual Work Plan • Economic Development Position • EDA/HRA Levy • Monarch Development Housing Proposal • Solar Energy Update • TAC Update 12. Adjourn. BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:45 P.M. MOTION SECONDED BY TOM PERRAULT. MOTION CARRIED UNANIMOUSLY, 7 -0. Recorded By: Beth Green Date Approved: Jyly 8, 2Q� /�, Attest: �I—MUMMY-1,