EDA Minutes 04-08-2015MINUTES
REGULAR MEETING — ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 8, 2015, Mississippi Room, Monticello Community Center
Present: Bill Demeules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom
Perrault, Lloyd Hilgart
Absent: None
Others: Jeff O'Neill, Angela Schumann, Wayne Oberg
1. Call to Order
Bill Demeules called the meeting to order at 6:00 p.m.
2. Roll Call
All commissioners were present at the meeting.
3. Approve Meeting Minutes
BILL TAPPER MOVED TO APPROVE THE MINUTES OF THE SPECIAL EDA
MEETING ON FEBRUARY 11, 2015. MOTION WAS SECONDED BY TOM
PERRAULT. MOTION CARRIED 7 -0.
TRACY HIND, MOVED TO APPROVE THE MINUTES OF THE SPECIAL EDA
MEETING ON MARCH 11, 2015 AS CORRECTED. MOTION WAS SECONDED
BY TOM PERRAULT. MOTION CARRIED 7 -0.
BILL TAPPER MOVED TO APPROVE THE MINUTES OF THE REGULAR EDA
MEETING ON MARCH 11, 2015 AS CORRECTED. MOTION WAS SECONDED
BY TOM PERRAULT. MOTION CARRIED 7 -0.
4. Consideration of additional agenda items
• Market Matching - WSB's John Uphoff provided a Market Matching update and
responded to commissioner questions. He referenced the report included in the
agenda packet. He briefly summarized contact and follow -up activities within the
industrial /commercial sectors, attendance at meetings at which he represented City
interests, and market data provided in response to prospect inquiries.
5. Consideration of approving payment of bills
LLOYD HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH
MARCH 2015. MOTION WAS SECONDED BY BILL TAPPER. MOTION
CARRIED 7 -0.
EDA Minutes: 4/08/15
6. Consideration to elect officers
• Bill Tapper nominated Bill Demeules as EDA President. Steve Johnson seconded
the nomination.
• Steve Johnson nominated Bill Tapper as EDA Vice - President. Lloyd Hilgart
seconded the nomination.
• Bill Demeules nominated Tracy Hinz as EDA Treasurer. Bill Tapper seconded the
nomination.
• Bill Tapper nominated Steve Johnson as EDA Vice - Treasurer. Tracy Hinz seconded
the nomination.
• Bill Demeules nominated Staff as EDA Secretary. Bill Tapper seconded the
nomination.
BILL TAPPER MOVED TO APPOINT 2015 EDA OFFICER POSITIONS AS
NOMINATED; INCLUDING BILL DEMEULES AS EDA PRESIDENT, BILL
TAPPER AS EDA VICE - PRESIDENT, TRACY HINZ AS EDA TREASURER,
STEVE JOHNSON AS EDA VICE - TREASURER, AND STAFF AS EDA
SECRETARY. MOTION WAS SECONDED BY TRACY HINZ. MOTION
CARRIED 7 -0.
7. Consideration to review EDA Bylaws and Enabling Resolution
Angela Schumann noted that the EDA's attorney had reviewed both the bylaws and the
enabling resolution and recommended striking references to the ordinance in the
bylaws. She also pointed out that a resolution had been added to this agenda item to
formalize the EDA approval of amendments to its bylaws.
TRACY HINZ MOVED TO ADOPT RESOLUTION EDA- 2015 -005 APPROVING
THE EDA BYLAWS AS PRESENTED ON APRIL 8, 2015. MOTION WAS
SECONDED BY BILL TAPPER. MOTION CARRIED 7 -0.
8. Consideration to review EDA fund balances
Finance Director Wayne Oberg reviewed the Fund Balance report that he distributed at
the meeting. He noted the status of each Tax Increment Financing (TIF) District, the
Greater Monticello Enterprise Fund (GMEF) and the EDA General Fund account and
responded to commissioner questions.
Steve Johnson asked why excess increment generated within expired TIF Districts are
not directed to the EDA General Fund after reapportionment and redistribution by
Wright County. Oberg stated that the use of unrestricted funds is a policy issue
EDA Minutes: 4/08/15
determined by Council. Angela Schumann added that the redistributed funds are
directed to the City's capital account rather than its General Fund.
Johnson also pointed to a deficit related to the Union Square development noted on the
Fund Balance spreadsheet and asked if a minimum valuation had been established and
who is liable for the shortfall. Staff agreed to look into the matter.
TRACY HINZ MOVED TO APPROVE THE 2015 EDA FUND BALANCE REPORT
AS PRESENTED BY THE CITY FINANCE DIRECTOR. MOTION WAS
SECONDED BY BILL TAPPER. MOTION CARRIED 7 -0.
9. Consideration to adopt Resolution for Decertification of Tax Increment Financing
District No. 1 -37
Angela Schumann explained that the EDA is required to decertify TIF 1 -37
(Karlsburger Foods) now that the obligations of both the district and the budget have
been met. She noted that staff had revised the resolution in the agenda packet so that the
language pertained to the EDA's recommendation to the City Council.
BILL TAPPER MOVED TO ADOPT RESOLUTION NO. EDA - 2015 -004
DECERTIFYING TAX INCREMENT FINANCING DISTRICT NO. 1 -37. MOTION
WAS SECONDED BY LLOYD HILGART. MOTION CARRIED 7 -0.
10. Consideration of approving a 2015 Farm Lease Agreement for Outlot F, Otter
Creek Crossing
Angela Schumann noted several minor corrections in the 2015 Farm Lease Agreement.
She indicated that, with the exception of the dates and the payment amount, the terms
of the agreement were substantially the same as in 2014. She explained that the tenants
had renegotiated the rental fee and agreed to pay $1,300 for the six month lease.
There was some discussion about the rationale for leasing the land for farming. Wayne
Oberg indicated that tax and property maintenance costs make it reasonable to do so.
BILL TAPPER MOVED TO AUTHORIZE THE EDA EXECUTIVE DIRECTOR
AND PRESIDENT TO EXECUTE THE 2015 FARM LEASE AGREEMENT FOR
OUTLOT F, OTTER CREEK CROSSING AS PRESENTED. MOTION WAS
SECONDED BY STEVE JOHNSON.
TOM PERRAULT MOVED TO AMEND THE PRIOR MOTION TO INCLUDE
AMENDING THE LEASE AGREEMENT TO PROVIDE THE TENANT
FLEXIBILITY IN ACCESSING THE PROPERTY. MOTION WAS SECONDED BY
TRACY HINZ. MOTION CARRIED 7 -0.
EDA Minutes: 4/08/15
11. Consideration of an update regarding the Administrative Lot Combination and
Simple Subdivision of EDA -owned property
Angela Schumann explained that the Planning Commission had recently recommended
approval of the administrative lot combination and simple subdivision of property
owned by the EDA (Lots 14 and 15, Block 34, Original Plat of Monticello). She
indicated that this item would be considered by the City Council at its April 13th
meeting. Schumann pointed out that the EDA attorney would prepared a deed for
conveyance of the property to MnDOT for EDA consideration at its May meeting.
12. Consideration of Director's Report
• Business Subsidy Policies - Bill Demeules asked about evaluating the subsidy
programs to verify compliance. Angela Schumann pointed to the need to clarify
guidelines related to the MN Investment Fund (Small Cities Fund). She noted that
the EDA attorney had not found problems related to TIF guidelines.
• CSAH 75 /TH 25 Improvements - Schumann pointed out that staff had sent a letter
to notify property owners about planned demolition activity on Block 34.
• City Industrial Park - Schumann stated that she has been reviewing Finance
Department records to determine ownership of the industrial_ park. She indicated
that she would summarize and report findings to the EDA upon clarification.
• Xcel Energy Substation - Schumann reported that the Planning Commission had
approved the land use application related to the development of the Xcel Energy
substation and briefly summarized project status.
• Joint EDA /CC Workshop - Schumann noted that staff would schedule a joint
EDA /CC workshop to discuss abatement and levy issues at the end of May.
• Newsletter - Schumann volunteered to post a correction on the City's Facebook
page in response to an error in the Snapshot of a Growing Community newsletter.
13. Adiourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:10 P.M. MOTION
WAS SECONDED BY STEVE JOHNSON. MOTION CARRIED 7 -0.
Recorded: Beth Green
Revised: Kerry Burri
Date Approved: October 14, 20
Attest:
Angela Sch a', Community Development Director