EDA Minutes 11-13-2013MINUTES
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
Wednesday, November 13, 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: Angela Schumann, Wayne Oberg, Tammy Omdahl
1. Call to Order
Bill Demeules called the meeting to order at 6:00 p.m.
2. Acceptance of October 9, 2013 Minutes
MATT FRIE MOVED TO ACCEPT THE OCTOBER 9, 2013 MEETING MINUTES
AS PRESENTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED
7 -0.
3. Consideration of additional agenda items
• WSB Update Schedule (Rod Dragsten)
4. Consideration of approving payment of bills
BRIAN STUMPF MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH
OCTOBER 2013 IN THE AMOUNT OF $7,678.53. BILL TAPPER SECONDED THE
MOTION. MOTION CARRIED 7 -0.
Bill Tapper noted that the EDA continues to incur substantial costs in keeping the
building at Broadway and Highway 25 open.
5. Consideration to adopt Resolution 2013 -095 Adopting a Modification of the
Redevelopment Program for Central Monticello Redevelopment Proiect No. 1 and
Adopting a Modification to the Tax Increment Financing Plan for Tax Increment
Financing District No. 1-6
Angela Schumann briefly summarized the proposal to formally modify both the Project
Area and the budget allocation in the tax increment financing plan for TIF District 1 -6.
Although tax increment may be spent after the district is decertified at the end of 2013,
modifications to the TIF Plan must be completed prior to decertification.
The first modification proposed authorizes the use of TIF 1 -6 tax increment for land
acquisition and site improvements on any parcel within the Central Monticello
EDA Minutes — 11/13/13
Redevelopment Project No. 1. This action supports the EDA's 2013 workplan which
places a priority on redevelopment consistent with the Embracing Downtown Plan.
At the present time, land acquisition may only occur in the TIF -16 District. The
Planning Commission found that the proposed modifications conform to the 2008
Comprehensive Plan.
The second modification proposed reallocates budgeted costs without increasing the total
overall budget authorized within the plan. This modification allows an additional
$600,000 in increment to be spent for acquisition of land and buildings. It also estimates
that an additional $101,944 in increment would be collected and available for site
improvements within the Project Area.
The proposed modifications retain the maximum amount of flexibility in future
expenditures for land/building acquisitions and the site improvements which may be
associated with those acquisitions.
Tammy Omdahl clarified that state statute does not specify by what date funds must be spent.
She noted, however, that there is a possibility that future legislation may limit the ability to
spend from pre -1990 balances.
BILL TAPPER MOVED TO ADOPT RESOLUTION 2013 -095, ADOPTING A
MODIFICATION OF THE REDEVELOPMENT PROGRAM FOR CENTRAL
MONTICELLO REDEVELOPMENT PROJECT NO. 1 AND ADOPTING A
MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 1 -6. BRIAN STUMPF SECONDED THE
MOTION. MOTION CARRIED 7 -0.
The City Council will conduct a public hearing on these proposed modifications and
consider adopting these modifications on November 25th, 2013. Adoption of the EDA
resolution is contingent on Council decision.
Decertification of the district is scheduled for Council consideration on December 91h
,
2013.
6. Consideration to proceed with unlawful detainer action for 100 Broadway East
Angela Schumann provided a brief timeline related to unlawful detainer action at 100
Broadway East and summarized the next step in the process.
The EDA had voted to proceed to unlawful detainer as a result of tenant failure to enter
into an alternate lease agreement by the September 30t' deadline. Unlawful detainer
action was to take place after a one -month period to allow the tenant time to resolve
issues related to a current relocation opportunity. Filing action, which based on the
EDA's motion, would have occurred on November 8th (30 days) was delayed, asthe
tenant verbally indicated to relocation consultant Dan Wilson that a source had become
EDA Minutes- 11/13/13
available to address the funding gap for the relocation space. Wilson Development
Services will arrange a meeting of the tenant, his representative and contractor and City
representatives in an effort to continue to move forward with relocation.
Staff recommended that the EDA file unlawful detainer action if the tenant fails to sign a
lease for an alternate space by December 1, 2013. If a lease were to come about after that
date, the EDA would work with the tenant to remain in the current space until final -build
out of the new space has been completed.
BRIAN STUMPF MOVED TO PROCEED WITH ACTION OF UNLAWFUL
DETAINER AGAINST GARRY EKEGREN/DBA PIZZA FACTORY, TENANT AT
100 BROADWAY EAST, AS A RESULT OF FAILURE BY THE TENANT TO
ENTER INTO AN ALTERNATE LEASE AGREEMENT BY THE REQUIRED
DEADLINE OF DECEMBER 1, 2013. BILL TAPPER SECONDED THE MOTION.
MOTION CARRIED 6 -0. (Matt Frie did not vote due to a stated conflict of interest.)
Tom Perrault indicated that he had voted in favor this time because he had been
expecting that more progress would have been made within the last month.
6. Items added to the ap_enda
• Market Matching Update - (Rod Dragsten) - Schumann will review the contract
with WSB to clarify the schedule for quarterly Market Matching updates and
include updates as part of an upcoming agenda.
7. Consideration of the Director's Report
There were no comments related to the Director's Report.
8. Adiournment
BRIAN STUMPF MOVED TO ADJOURN THE MEETING AT 6:16 P.M. TOM
PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0.
P"
Recorder: Kerry Burri
Approved: December 11, 2013
Attest:
Jeff O'Neill, City Administrator