EDA Minutes 08-14-2013MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
Wednesday, August 14, 2013 - 6:00 p.m., Mississippi Room
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault,
Brian Stumpf
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. Acceptance of Minutes — July 10th, 2013 Meeting
ROD DRAGSTEN MOVED TO ACCEPT THE JULY 10, 2013 MEETING MINUTES
AS PRESENTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED
6 -0. (Bill Demeules did not vote.)
3. Consideration of additional agenda items None
4. Consideration of approving payment of bills
Dan Wilson did not authorize payment for the total request submitted by the tenant of the
dental office based on his review of eligible relocation and reestablishment expenses.
Tracy Hinz suggested that Wilson respond to specific questions related to relocation costs
at an upcoming EDA meeting.
BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS IN THE AMOUNT OF
$220,131.86 THROUGH AUGUST 2013. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED 7 -0.
5. Consideration of request to Extend the Preliminary Development Agreement
Between the Monticello EDA and Rocky MTN Group, LLC
Dahlheimer Beverage (Rocky MTN Group, LLC) requested a one -year extension to the
Preliminary Development Agreement established in 2009. Dahlheimer's had previously
paid a $10,000 deposit to ensure that the EDA would hold the property legally described
as Outlots A and C of Otter Creek Crossing under contract so that they could. purchase
the lots and expand their facility. Although preliminary site plans and construction
timelines had been prepared, moving forward on the project has been subject to the sale
of their existing site in Ramsey. The EDA has extended the agreement annually for the
past three years.
EDA Meeting Minutes: 08/14/13
BILL TAPPER MOVED TO APPROVE A ONE -YEAR EXTENSION TO THE
PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE ROCKY MTN
GROUP, LLC (DAHLHEIMER) AND THE MONTICELLO EDA. MATT FRIE
SECONDED THE MOTION. MOTION CARRIED 7 -0.
6. Consideration of authorizing a 2014 contribution to the Initiative Foundation
The EDA had authorized a $2,200 contribution to the Initiative Foundation in 2013 in
support of its mission of promoting economic growth throughout the region.
Contributions are matched by the McKnight Foundation, thereby doubling the reach and
capacity of committed resources. The Foundation requested that the EDA contribute
$2,250 for 2014. Staff recommended that continued support be coupled with renewed
efforts to utilize Initiative Foundation services within Monticello specifically pertaining
to redevelopment and housing.
Tom Perrault pointed out that he would vote for the contribution because it included a
funding match.
TRACY HINZ MOVED TO APPROVE CONTRIBUTING $2,250 OF THE 2014 EDA
GENERAL FUND TO THE INITIATIVE FOUNDATION. MATT FRIE SECONDED
THE MOTION. MOTION CARRIED 6 -0. (Bill Tapper did not vote as he had been a
previous beneficiary of the Initiative Foundation.)
7. Consideration to authorize a request for quotes /proposals for redevelopment district
qualification and demolition of buildings at EDA -owned property located at 100 and
112 Broadway East
In order to be included in a redevelopment district, the Montgomery Farms buildings
located at 100 and 112 Broadway East must meet a coverage test and qualify as
substandard. The EDA has up to three years from the time it adopts a resolution declaring
properties substandard to establish a redevelopment district.
As a public entity, the EDA is required to complete an environmental analysis of the
building prior to demolition in order to report and address any hazardous findings. Staff
also recommended looking at any structural impact that demolition may have on the
adjoining property.
Staff asked that the EDA authorize preparation of a proposal and request quotes for
qualification and structural and environmental analysis services. Ehlers & Associates will
provide sample RFP documents, contact information to use as a resource, and assist with
developing a timeline for this process.
Staff indicated that Martha Ingram, of Kennedy and Graven, had suggested that the EDA
could choose to pay the cost of qualifying and demolishing the property through TIF 1 -6
funds by modifying the TIF plan and approving a broad reimbursement resolution.
Assuming the EDA has sufficient budgetary authority, TIF 1 -6 funds would be
EDA Meeting Minutes: 08/14/13
reallocated to a more appropriate line item within the budget from which to pay these
costs. The funds would be reimbursed when increment is generated by the new
redevelopment district. Consultant costs would also be reimbursable through the new TIF
district.
Tom Perrault asked about adding other buildings on the block to the scope of the contract
for services. Staff indicated that broadening the scope of the contract would be possible
but would affect the timeline for moving forward with the project.
BRIAN STUMPF MOVED TO AUTHORIZE STAFF TO PREPARE AND POST
REQUESTS FOR QUOTES/PROPOSALS FOR REDEVELOPMENT DISTRICT
QUALIFICATION, BUILDING ENVIRONMENTAL AND STRUCTURAL
ANALYSIS, AND DEMOLITION OF BUILDINGS AT EDA -OWNED PROPERTY
LOCATED AT 100 AND 112 BROADWAY EAST. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED 7 -0.
8. Consideration to approve funding for Industry of Year/MN Manufacturer's Week
activities
The EDA has typically funded the estimated $800 cost of the Industry of the Year event,
a local business retention effort coordinated by the Industrial and Economic Development
Committee (IEDC), held during MN Manufacturer's Week (October 20th - 26th.)
Funding includes breakfast for 50 -100 attendees and an award trophy, and is available
within the EDA marketing budget. The estimated eight hours of staff time involved in
coordinating and promoting the event has not been charged to the EDA in the past.
BILL TAPPER MOVED TO APPROVE FUNDING FOR THE 2013 INDUSTRY OF
THE YEAR EVENT. MATT FRIE SECONDED THE MOTION. MOTION CARRIED
7 -0.
9. Consideration of review and follow -up action related to the 2014 EDA Budget
Workshop Session, including budgeting for TIF 1 -6 increment
Jeff O'Neill briefly outlined the issues discussed during the August 6t' EDA budget
workshop. The EDA had asked that the City Council consider the following needs in
preparing the 2014 EDA General Fund budget allocation:
• Review of administrative /coordinator staff support needs for economic
development upon evaluation of the Market Matching services contract
• Study community housing needs and plan for use of available housing increment
to address identified needs
• Identify use of TIF 1 -6 increment by year end (Options include Block 34
redevelopment, communications tower, downtown property acquisition,
transportation improvements)
• Detailing the expense history for the Marketing and Miscellaneous Expense line
items and enabling EDA input and direction
EDA Meeting Minutes: 8/14/13
These recommendations will be presented to City Council as part included in the EDA
slide presentation for the City Council's budget workshop on August 26ffi.
The 2014 EDA budget allocation is $112,000. The EDA will fund the full $48,000 cost of
the Market Matching contract and 10% ($7,900) of administrative staff support costs.
BRIAN STUMPF MOVED TO PROVIDE THE 2014 EDA BUDGET
RECOMMENDATIONS AS PRESENTED FOR CITY COUNCIL CONSIDERATION.
BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0.
10. Consideration of Director's Report
Options Agreement Task Force Progress Summary - The options small group will meet
again soon to consider alternative options. Updates will be provided as information is
available.
11. Adiournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 6:43 P.M. BILL
TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0.
Recorder: Kerry Burri La2
Approved: October 9, 2013
Attest: 162 s-L,4e1"2
Jeff O ,City Administrator
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