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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 EDA Minutes 3113113 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 Economic Development Authority Minutes 3/13/13 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. Economic Development Authority Minutes 3/13/13 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