EDA Minutes 03-13-2013MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
Wednesday, March 13, 2013 - 6:00 p.m. Mississippi Room
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Erie, Rod Dragsten, Tom Perrault
Absent: Brian Stumpf
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. Approve Meeting Minutes
a. February 13th, 2013 Regular Meeting Minutes
ROD DRAGSTEN MOVED TO APPROVE THE FEBRUARY 13, 2013
REGULAR EDA MEETING MINUTES. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED 5 -0. (Tom Perrault did not vote.)
b. February 13`x', 2013 Special Workshop Minutes
BILL TAPPER MOVED TO APPROVE THE FEBRUARY 13, 2013 SPECIAL
EDA WORKSHOP MINUTES. MATT ERIE SECONDED THE MOTION.
MOTION CARRIED 5 -0. (Tom Perrault did not vote.)
3. Consideration of additional agenda items
a. Fred's Auto
4. Consideration of approving payment of bills
BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS THROUGH MARCH
12, 2013. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0.
5. Consideration to Recommend Adoption of Resolution 2013 -010, the Amended and
Restated Resolution Enabling the Creation of the City of Monticello Economic
Development Authority
The EDA had asked that some issues be clarified. Staff confirmed that the resolution
would retain the tern "Commissioner(s)" throughout the document and that the language
referring to the enabling resolution superseding the previous is unnecessary due to other
language within the document and does not need to be carried forward.
Tom Perrault asked why some language is included in the bylaws but not in the enabling
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resolution. Angela Schumann pointed out that the enabling resolution creates the
authority under which the EDA operates and the bylaws define how the EDA operates.
BILL TAPPER MOVED TO RECOMMEND TO THE CITY COUNCIL THE
ADOPTION OF RESOLUTION 2013 -010, THE AMENDED AND RESTATED
RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY. ROD DRAGSTEN SECONDED THE
MOTION. MOTION CARRIED 6 -0.
The resolution will come before City Council for public hearing on March 25t', 2013.
6. Consideration of adopting modifications to the Bylaws of the Monticello Economic
Develol2ment Authority
The bylaws were amended to reflect the change in Executive Director from Economic
Development Director to City Administrator or designee. Bill Tapper suggested that the
EDA adopt the amended bylaws after the City Council had held the public hearing and
approved the enabling resolution.
BILL TAPPER MOVED TO TABLE ADOPTION OF THE BYLAWS OF THE
ECONOMIC DEVELOPMENT AUTHORITY AS AMENDED, DATED MARCH
13TH, 2013. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0.
Tom Perrault questioned the language in Article 3, Section 2 of the bylaws which states
that, "The Assistant Treasurer, in the Executive Director's absence or incapacity, shall
sign all contracts, deeds or other instruments." The role of Assistant Treasurer had, in the
past been filled by the City Finance Director. Article 4 states however that, "No
Commissioner of the authority shall be eligible to serve as the Executive Director."
Angela Schumann agreed to consult the EDA Attorney for an opinion.
7. Consideration to adopt Resolution 2013 -012 a Resolution AR]Uroving the Retention of
All Current Parcels Within Tax Increment Financing District No. 1 -22
The EDA approved "Scenario A" as identified by the TIF 1 -22 Management Plan at its
February meeting. The resolution to adopt formal findings is a housekeeping item.
TRACY HINZ MOVED TO ADOPT RESOLUTION 2013 -012, APPROVING THE
RETENTION OF ALL CURRENT PARCELS WITHIN TAX INCREMENT
FINANCING DISTRICT NO. 1 -22.. BILL TAPPER SECONDED THE MOTION.
MOTION CARRIED 6 -0.
8. Consideration of modifications to the GMEF Loan 2uidelines of the Monticello
Economic Development Authority
The EDA considered reducing the required interest rate "floor" for future GMEF loans in an
effort to make them a more attractive gap financing option. Current terms specify a fixed
rate not less than 2% below prime rate as published in the Wall Street Journal on date of
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EDA loan approval, with a minimum interest rate of 3.0 %. The Wall Street Journal
recently published a prime rate of 3.25 %.
BILL TAPPER MOVED TO DIRECT STAFF TO PREPARE A RESOLUTION OF
FINDINGS FOR THE FOLLOWING AMENDMENTS TO THE GMEF LOAN
GUIDELINES: INTEREST RATE: FIXED RATE NOT LESS THAN 2% BELOW
PRIME RATE AS PUBLISHED IN THE WALL STREET JOURNAL ON DATE OF
EDA LOAN APPROVAL, WITH A MINIMUM INTEREST RATE OF 1 %. ROD
DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0.
Tom Perrault pointed out that GMEF guidelines also require that at least 90% of the jobs
created must be at 160% of the federal minimum wage. He wondered where that language
had originated and what kind of impact it would have if the state increased the minimwn
wage. Angela Schumann suggested that, since one of the EDA goals is to create living wage
job opportunities, wage goal requirements may been transferred from federal Community
Development Block Grant project language. This issue will be included on a fature EDA
agenda for reconsideration should there be an increase in the minimum wage.
There was some discussion about the need to include terms for repaying a GMEF loan upon
relocation. Schumann will ask that the EDA Attorney review the issue and prepare a
resolution with findings for those changes.
9. Consideration to adopt the 2013 EDA Workplan
Tom Perrault shared concerns about including affordable housing as an EDA priority.
Angela Schumann pointed out that four housing districts are expected to generate excess
tax increment which must be used for housing.
Matt Frio asked why 413 4th Street continued to be on the workplan. Schumann indicated
that it had been included because it remains the only residential property owned by the
EDA. There was some discussion about what to do about the property.
Schumann suggested that the commissioners might find it helpful to take a field trip to
get a street level view of the status of affordable housing stock in Monticello. The EDA
agreed to include this event as part of an upcoming agenda.
BILL TAPPER MOVED TO ADOPT THE 2013 EDA WORKPLAN. MATT FRIE
SECONDED THE MOTION. MOTION CARRIED 6 -0.
10. Consideration of Director's Report
EDA Members in the News — Bill Tapper of Genereux Fine Wood Products and Bill Demeules of
Standard Iron were both recently honored for high achievement in their fields.
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Comprehensive Plan — Economic Development Chapter - The EDA will review the
revised Economic Development chapter of the Comp Plan at its April meeting. Staff
thanked Rod Dragsten for his participation in the small group.
ReSTOREing Downtown/Embracing Downtown - The ReSTOREing Downtown
Leadership Team will arrange a second meeting to reengage downtown business and
property owners in the redevelopment process.
11. Added items
a. Economic Development Position - Jeff O'Neill reported that WSB had proposed
that the City consider hiring a consultant tasked with representing and marketing
Monticello, as well as other communities, to a broader audience of prospects. The
Personnel Committee had asked that the EDA also be consulted prior to exploring
it further. There was some discussion about the role of the consultant as
matchmaker and what kind of opportunities that might present. There were also
questions about the potential for competition between cities represented by a
consultant. The EDA indicated an interest in exploring the proposal further. Staff
plan to clarify expectations and costs for this option at a joint EDA and City
Council meeting.
b. Fred's Auto - Angela Schranann and Bill Tapper met with a prospective retail
business owner interested in purchasing Fred's Auto site (349 West Broadway) to
learn about its business plan and financing requirements. Staff requested the same
information from another recent inquiry about the site. Information will be
considered by the negotiations team. Staff had received one proposal for tank
location.
BILL TAPPER MOVED TO AUTHORIZE AN EXPENDITURE OF UP TO
$2,000 FOR UNDERGROUND STORAGE TANK LOCATION AND
IDENTIFICATION OF INFORMATION REQUIRED BY THE STATE TO
QUALIFY FOR TANK REMOVAL AT FRED'S AUTO (349 WEST
BROADWAY.) MATT FRIE SECONDED THE MOTION. MOTION
CARRIED 6 -0.
12. Adiourn
ROD DRAGSTEN MOVED TO ADJOURN THE MEETING AT 7:11 P.M. BILL
TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder: Kerry Burri 1q'
Approved: April 10, 2013
Attest:
Jeff O'Neill, City 49qVtrator