EDA Minutes 06-12-2013MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
Wednesday, June 12, 2013 - 6:00 p.m. Mississippi Room
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault,
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) May 8h, 2013 — Special Meeting Minutes
The special meeting minutes were tabled.
b) May 8�", 2013 — Regular Meeting Minutes
BILL TAPPER MOVED TO APPROVE THE MAY 8TH REGULAR EDA
MEETING MINUTES. BRIAN STUMPF SECONDED THE MOTION.
MOTION CARRIED 6 -0. (Matt Frie did not vote.)
3. Consideration of additional a ends items None
4. Consideration of approving a ment of bills
Bill Demeules noted that the I -94 Coalition bill had been removed. He also pointed out that
$16,301 in expenses was related to the payment of property taxes for buildings purchased
by the EDA.
TRACY HINZ MOVED TO APPROVE PAYMENT OF BILLS IN THE AMOUNT OF
$24,819.60 THROUGH JUNE 2013. BILL TAPPER SECONDED THE MOTION.
MOTION CARRIED 7 -0.
5. Consideration to review a Greater Monticello Enterprise Fund loan avl2lication for
Culver's Monticello and to direct preparation of loan documents
Applicant Eric Knott requested a $149,500 GMEF loan to assist in ownership financing of
Culver's restaurant. The funds would fill the gap between his current debt and the amount
needed to refinance the loan. The applicant suggested that gap funding would place the
business in a better financial position to retain existing jobs and create opportunity for
future internal improvements and equipment purchases.
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The EDA was asked to determine if the request met the intent of public purpose and if it
demonstrated compliance with GMEF - outlined use of loan proceeds. GMEF loans had
primarily been used for gap financing for capital improvements such as land acquisition or
construction costs for new or expanding industrial or manufacturing projects or as
companion financing for new equipment for industrial or manufacturing businesses. The
EDA had most recently approved GMEF loans for the pet hospital and the Napa.
GMEF guidelines specify that credit - worthy businesses must demonstrate public purpose
by either creating new jobs, increasing the community tax base, allowing the ability to
improve or expand operations, or providing for job retention. The guidelines also limit the
use of loan proceeds to real property acquisition, development, & rehabilitation
improvement costs and machinery and equipment.
EDA's attorney had indicated that additional information related to credit - worthiness,
personal guarantee, and firm job creation and wage goals with compliance dates would be
required as part of preparing loan documentation should this request move forward. A loan
agreement would also include a security agreement with UCC filing, acting as a security on
the restaurant's equipment.
Matt Frie said that he would not deny the applicant the opportunity to provide additional
information and suggested that GMEF loan guidelines may not be specific enough.
There was some discussion about the ramifications of allowing the applicant the
opportunity to move forward with loan document preparation. Tom Perrault noted his
concern that moving forward with the request would set a precedent. He asked about legal
preparation costs and if the Initiative Foundation or any other sources of funding might be
available to the applicant.
BRIAN STUMPF MOVED TO DENY PREPARATION OF LOAN DOCUMENTS FOR
MONTICELLO VENTURES, LLC. TRACY HINZ SECONDED THE MOTION.
MOTION CARRIED 5 -1 WITH MATT FRIE VOTING IN OPPOSITION. (Bill Tapper
did not vote as he is a past recipient of a GMEF loan.)
O'Neill said he'd talk with the applicant about other refinancing options. He also suggested
that, in future, the EDA may wish to consider developing an option for providing
assistance to existing local businesses looking to refinance.
6. Consideration to approve a contract with WSB & Associates for Market Matchin
Economic Development Services
Jeff O'Neill provided a brief update about the status of the Market Matching contract
proposed by WSB for the provision of economic development services. The City Council
had approved funding 50% of the contract amount contingent upon EDA's commitment to
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funding the other 50% of the contract. In addition to outlining actual marketing and sales
activities, the contract provides detail on the operational terms of the partnership, including
term of contract and contract extension rights, termination rights and costs for services
outside the scope of the contract.
John Uphoff pointed out that WSB has a vested interest in identifying and facilitating
successful prospects for Monticello, not only it is written into the contract, but because
doing so will help to establish credibility for WSB as it provides economic development as
a contracted service.
Rod Dragsten expressed concern that the City had not considered other options for
obtaining economic development services. Jeff O'Neill pointed out that this type of
contract for services would enable the City become part of a larger network at a very
reasonable cost. The contract also provides for data collection and assembly services for
which the City would need to contract to obtain regardless.
John Uphoff explained that the City would maintain full access to the data compiled on
InfoTracker should the contract be terminated. He agreed to include language to that effect
in the contract.
Bill Tapper expressed concern that the contract would be more about collecting data than
putting someone on the street to sell the City.
Dragsten asked how prospecting progress would be gauged. Staff indicated that
bi- monthly reports and opportunities for feedback would be key to measuring success.
BRIAN STUMPF MOVED TO APPROVE THE PROPOSED CONTRACT FOR
SERVICES BETWEEN THE CITY OF MONTICELLO AND WSB & ASSOCIATES
FOR MARKET MATCHING, INCLUDING FUNDING 50% OF (THE ANNUAL
EXPENSE $48,000) BY THE EDA, SUBJECT TO CONTRACT REVISIONS AS
SUGGESTED BY THE EDA. TRACY HINZ SECONDED THE MOTION. MOTION
CARRIED 5 -2 WITH ROD DRAGSTEN AND BILL TAPPER VOTING IN
OPPOSITION.
7. Consideration of TIF 1 -22 investment planning and appointment of an EDA
sub- committee for the PuriDose of developine a strategy for acquisitions as related to
Embracing Downtown
The EDA toured TIF 1 -22 just prior to its June 12th meeting in preparation for drafting a
spending plan for the district and a strategy for acquisition and sale of property within the
downtown.
Bill Tapper suggested that a small sub - committee of the EDA develop a more pro - active,
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EDA Minutes - 6/12/13
partnership approach to working with property owners to move the Embracing Downtown
Plan forward. The approach involves EDA involvement in securing purchase options on
downtown parcels. These agreements would include clauses which would trigger increases in
the sale price of a given property under certain circumstances. This would enable property
owners to continue to own, operate and lease their buildings until they seek to sell. It also
would provide flexibility in the event of developer interest and provide incentives for
cooperation to get maximum property value. Tapper suggested appointing Rod Dragsten and
Matt Frie to the sub - committee due to their expertise in land and Iegal matters. Staff
recommended that a representative from the Restoreing Downtown group also be included.
Decision: Acquisition Strategy Development
BILL TAPPER MOVED TO APPOINT EDA COMMISSIONERS ROD DRAGSTEN
AND MATT FRIE TO AN EDA SUB - COMMITTEE ON PROPERTY ACQUISITION
STRATEGY. BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 7 -0.
Decision: TIF Investment Planning
BILL DEMEULES MOVED TO DIRECT STAFF TO PREPARE A DRAFT OF
ALTERNATIVES FOR DEVELOPING AN OUTLINE FOR TIF 1 -6 AND TIF 1 -22
INVESTMENT PLANS ( "SPENDING PLANS "), BASED ON COMMENTS AND
FINDINGS OF THE EDA IN THE MEETING OF JUNE 12TH, 2013. MATT FRIE
SECONDED THE MOTION. MOTION CARRIED 6 -0. (Tom Perrault did not vote as he
had left the meeting.)
8. Consideration of Director's Repo
Fallon Avenue Overpass - City Council authorized spending $5,000 on an appraisal of the
Fallon Avenue overpass bridge landing property. Construction is expected to begin in
2015.
9. Admourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:43 P.M. MATT FRIE
SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder: Kerry Burn "'
Approved: July 10, 2013
Attest:
Jeff7JWill, City Administrator
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