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EDA Minutes 11-14-2012MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 14, 2012 - 6:00 p.m. Commissioners Present: Vice President Bill Tapper, Treasurer Tracy Hinz, Rod Dragsten, Matt Frie and Council Members Torn Perrault and Brian Stumpf Commissioners Absent: President Bill Demeules Staff: Executive Director Jeff O'Neill, Community Development Director Angela Schumann, City Engineer, Bruce Westby 1. Call to Order Bill Tapper called the meeting to order at 6 p.m. 2. Approve Meeting Minutes a) September 12r", 2012 Regular Meeting Minutes ROD DRAGSTEN MOVED TO APPROVE THE SEPTEMBER 12, 2012 EDA MINUTES AS CORRECTED. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. (Brian Sturnpf did not vote.) b) October l Ors', 2012 Regular Meeting Minutes The October 10, 2012 minutes were not provided. 3. Consideration of approving payment of bills Rod Dragsten confirmed that most relocation benefits have already been paid to those tenants that have relocated. Tom Perrault had some questions about the eligibility of an invoice submitted by the dance studio. Staff noted that tenants are eligible to submit costs related to promoting their relocation. Dan Wilson had approved payment of the invoices. BRIAN STUMPF MOVED TO APPROVE PAYMENT OF BILLS FOR OCTOBER 2012. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 5 -0. (Matt Frie arrived just after the vote.) 4. Consideration of additional agenda items a) Resolution supporting expansion of the Interstate 94 West Corridor City Engineer Bruce Westby summarized that MNSHIP, the Minnesota State Economic Development Authority Minutes: 11/14/12 Highway Investment Plan, revised its approach to investing in transportation funding over a twenty year period. The plan is to be updated every four years utilizing risk management planning rather than performance based planning as had previously been the approach. MNSHIP has identified three options for State transportation funding: A) Allocates all funding to pavement preservation B) Allocates some funding for expansion within the metro beltway C) Allocates 6 -8% of funding for expansion outside the metro beltway Westby asked that the EDA approve a resolution supporting Option C which allows for expansion of the Interstate 94 West Corridor from Maple Grove to St. Cloud in response to MNSHIP's proposed approach. Bill Tapper pointed out that the City's Industrial & Economic Development Committee (IEDC) also supported Option C as it would promote inter - regional mobility. BRIAN STUMPF MOVED TO APPROVE A RESOLUTION SUPPORTING EXPANSION OF THE INTERSTATE 94 WEST CORRIDOR FROM MAPLE GROVE TO SAINT CLOUD. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. b) Sponsorship of Frostbite Challenge 5. Consideration to accept the Limited Scope Investigation for 349 W. Broadway (Fred's Auto) and Recommendation for Site Closure The Phase II environmental analysis completed at 349 W. Broadway (Fred's Auto) revealed a fuel oil release on the site most likely resulting from a storage tank located on the rear or north side of the building. Braun Intertec completed the Limited Scope Investigation (LSI) and submitted a report to the Minnesota Pollution Control Agency (MPCA) for review. The MPCA determined that the investigation and/or cleanup adequately addressed the contamination at the site and recommended site closure. MATT FRIE MOVED TO ACCEPT THE LIMITED SCOPE INVESTIGATION FOR 349 W. BROADWAY (FRED'S AUTO) AND RECOMMENDATION FOR SITE CLOSURE. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0. 6. Consideration to request proposals for identification of front yard underground storage tanks and authorize expenditure for removal of rear yard underground storage tank for 349 W. Broadway (Fred's Auto) The EDA considered follow -up steps to facilitate the future sale and /or redevelopment of the property at 349 W. Broadway. Staff determined that the underground storage tank (UST) located on the north (rear) side of the building was used after 1987 and is therefore not eligible for the Minnesota Economic Development Authority Minutes: 11/14/12 Department of Commerce's Abandoned Tank Removal Program. The EDA could choose to pay for tank removal costs through its General fund or require tank removal by a future user or buyer. It has been the traditional role of the City, EDA or HRA to move forward contamination and clean-up in order to facilitate redevelopment. Staff recommended approval of the Minnesota Petroleum SVC quote as it includes all necessary services including sludge testing and tank excavation oversight. Neither the Phase II analysis nor the LSI identified the presence of USTs on the south (front) of the property. Research indicated, however, that the property was previously used as a gas station and it is likely that underground storage tanks used prior to 1987 exist in that location. The Petrofund would pay to remove older tanks at no cost to the EDA. Staff recommended approval of a Request for Proposal process to identify the location, size and contents of any south (front) yard USTs. Tom Perrault asked if removing tanks might jeopardize the opportunity to use TIF funds for later redevelopment at this location. Staff replied that it would be an issue if removal of tanks required tearing down the building. Rod Dragsten wondered if it might save costs to use the same contractor for the front and rear property tank removal and suggested that the EDA wait to remove the tank in the rear yard until it was determined that Petrofunds would be available for the front yard. Brian Stumpf noted that the EDA had not in the past been refused Petrofunds if property had met the criteria. He asked if there was any urgency in moving forward with tank removal. Bill Tapper suggested that it would be useful to make the property suitable for purchase or lease because there is some current interest in the site. Staff plan to check with Braun Intertec to clarify the results of any analysis conducted during Phase II on the inside of the building. TRACY HINZ MOVED TO ACCEPT THE PROPOSAL BY MINNESOTA PETROLEUM SVC TO REMOVE THE NORTH (REAR) UST AND AUTHORIZE AN EXPENDITURE OF UP TO $2,500 FOR TANK REMOVAL AND FLUID DISPOSAL. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 5 -1 WITH ROD DRAGSTEN VOTING IN OPPOSITION. MATT FRIE MOVED TO APPROVE A REQUEST FOR PROPOSAL PROCESS TO IDENTIFY THE LOCATION, SIZE AND CONTENTS OF THE SOUTH (FRONT) UST. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 6 -0. 7. Consideration of an update on the reSTOREing Downtown project and contract with Economic Development Services As the contract with Economic Development Services is winding down, staff requested Economic Development Authority Minutes: 11/14/12 that Janna King provide the EDA an update as to her work, the progress of downtown planning efforts, the direction that reSTOREing Downtown will take after her contract ends, and her evaluation of the EDA's role in supporting reSTOREing downtown. Janna King indicated that she had contracted with the City in early February to provide guidance and support to a leadership organization focused on revitalizing the downtown. She was specifically tasked with developing a marketing strategy and providing direction on print and electronic communication. She also assisted city staff with the downtown segment of the developer tour, facilitated website migration, worked with leadership teams and provided limited steering committee support. She summarized that ReSTOREing Downtown Monticello is a seven member private sector steering committee focused on advocacy. The committee developed a vision, a mission, guiding principles, budget, and fundraising, marketing, and communication strategies. They have created a database to keep in contact with and act as ambassadors to area stakeholders. They've also developed various flyers to provide information, encourage buy -in and solicit contributions related to the downtown effort. The Chamber of Commerce has taken on role of fiscal agent and provides administrative support and a web presence for the committee. She said that the foundations are in place and proposed a number of recommendations for moving forward with redevelopment. • Do real projects to revitalize the downtown placing priority on developing businesses that generate new tax base. Utilize expiring TIF as seed corn for generating additional tax increment revenue rather than spending TIF on infrastructure. • Market the downtown. The market study provides targets; flyers and websites provide facts; and the strategy lays out approach. Execute the strategy now that the tools are in place. • Coordinate efforts between reSTOREing Downtown and Park board. Plan the interface between the commercial area and the parks /river unique asset with river. • Seek funding for park related improvements (MN Legacy funds, foundations, etc.) • Step up outreach with developers and brokers (MN Shopping Center Association) • Determine role of city staff, consultants, volunteers • Expand volunteer base • Hire a part-time local coordinator • Focus on targeted professional consulting support • Create partnership opportunities: City funding match to stimulate private fundraising Steve Johnson, representing ReSTOREing Downtown, thanked the EDA and the City Council for their support. Bill Tapper thanked Janna King for her work in guiding the project to this point. Janna King said that she had greatly enjoyed her role and was excited about the fantastic opportunities ahead for downtown Monticello. Economic Development Authority Minutes: 11/14/12 8. Consideration to approve 2013 Wright County Economic Development Partnership annual membership dues The EDA had tabled consideration of membership in the Wright County Economic Development Partnership in September pending the final adoption of the 2013 EDA budget. Staff pointed out that membership in this organization provides a net benefit in terms of staff resources in that it acts as a marketing and lead - generating arm on behalf of the City. TRACY HINZ MOVED TO APPROVE AUTHORIZING PAYMENT IN THE AMOUNT OF $2,300.90 FOR 2013 MEMBERSHIP DUES TO WRIGHT COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. 9. Consideration to review and accept the Monticello Business Center Industrial Park Wetland Delineation The EDA had authorized WSB to prepare a wetland delineation for Monticello Business Center in order to clarify the developable area at the industrial park and development limits for potential users. The Wetland Delineation Report was prepared and submitted to the Technical Evaluation Panel and the delineation boundary was altered slightly as a result. It was determined that the EDA has over 50 developable acres available at the Monticello Business Park. Bill Tapper pointed out that the delineation had exceeded budgeted cost. Staff will ask that WSB itemize the budget overrun and speculated that the additional cost may be partially due to the boundary adjustment required. Brian Stumpf suggested that the EDA should have been made aware of the full potential cost. Matt Frie agreed. ROD DRAGSTEN MOVED TO ACCEPT THE MONTICELLO BUSINESS CENTER INDUSTRIAL PARK WETLAND DELINEATION REPORT. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. 10. Director Report Fred's Auto - Two users are potentially interested in the 349 W. Broadway property. Staff recommended the EDA delay such discussions until interior and exterior contamination analysis and actions have been completed. The property title objection has cleared. Ace Hardware Relocation - After detailed discussions and financial analysis regarding the possible relocation of Ace Hardware to either Block 34 or the former Walgreen's site, store owner Shawn Grady determined that expansion at the current store location is the best alternative for his business. He will work with Community Development to determine appropriate land use applications for expansion. Embracing Downtown Activity - Relocations for Montgomery Farms are proceeding. Economic Development Authority Minutes: 11/14/12 TIF District 1 -5 - The City Council ratified the use of TIF 1 -5 excess increment for the West 7t' Street Extension project. Economic Development Chapter — Comp Plan - The small group of EDA, IEDC and Planning Commission members had some specific recommendations for updating the baseline data of Chapter 4 of the Comp Plan. The next step will be to consolidate data and focus on amending goals and policies. Update on Economic Development Position - Staff has recommended that the Personnel Committee approve hiring an Economic Development Director. Staff will prepare a job description for consideration. MYSA Project — The MYSA membership recently decided not to move forward with plans for a new soccer facility in the area on a vote of 60 -40. Staff are hopeful that discussions will continue to evolve. Broadband Conference — Jeff O'Neill attended a recent conference in Danville, Virginia to learn about broadband opportunities. TIF 1 -22 Analysis - Staff will bring forward a series of decisions to the EDA related to TIF 1 -22 Knockdown in December. 2013 Worliplan - Staff suggested scheduling an informal work session for the purpose of preparing an EDA workplan for 2013. BRIAN STUMPF MOVED TO SCHEDULE A SPECIAL MEETING TO DISCUSS THE 2013 EDA WORKPLAN FOR WEDNESDAY, DECEMBER 19, 2012 AT 6:00 PM. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. 11. Consideration of items added to the aeenda a) Sponsorship of Frostbite Challenge The EDA had, in the past two years, sponsored the Frostbite Challenge with a funding commitment. Sandy Suchy from the Monticello Chamber of Commerce asked that the EDA provide funding to also sponsor the 2013 event. Bill Tapper pointed out that, because the event is no longer nationally sponsored, the potential economic development benefit to the City would be limited. Sandy Suchy indicated that the event would be advertised but would now be expected to draw participants within a 30 -35 mile radius. Economic Development Authority Minutes: 11/14/12 Staff noted that this sponsorship is not specifically a budgeted expense but that it could be funded through the EDA marketing budget. Tom Perrault stated that he'd rather that the event be supported by businesses that would directly benefit from it. Bill Tapper pointed out that the EDA does not sponsor other local events. TOM PERRAULT MOVED TO NOT PROVIDE FUNDING FOR SPONSORSHIP OF THE FROSTBITE CHALLENGE. BILL TAPPER SECONDED THE MOTION. MOTION FAILED 3 -3 DUE TO A LACK OF A MAJORITY WITH TRACY HINZ, BRIAN STUMPF AND MATT FRIE VOTING IN OPPOSITION. Tracy Hinz asked about sponsorship level options available and how funding might be used to support the event. Suchy indicated that sponsorships could be funded at any amount and designated as requested. TRACY HINZ MOVED TO APPROVE PROVIDING $1,000 IN FUNDING FROM THE 2013 EDA MARKETING BUDGET FOR SPONSORSHIP OF THE FROSTBITE CHALLENGE. BRIAN STUMPF SECONDED THE MOTION. MOTION FAILED 3 -3 DUE TO THE LACK OF A MAJORITY WITH MATT FRIE, TOM PERRAULT AND BILL TAPPER VOTING IN OPPOSITION. 12. Adjourn TOM PERRAULT MOVED TO ADJOURN THE MEETING AT 7:41 P.M. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Kerry T. Burri / .iR Approved: December 12, 2012 �� Attest: 6ALI --r- i Jeff wRopxccutive Director