EDA Minutes 12-11-2013 (Special Meeting)MINUTES
SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Monday, December 11, 2013 — 4:30 p.m.
Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault
Absent: Brian Stumpf
Others: Angela Schumann, Jeff O'Neill, Wayne Oberg, Steve Johnson, Koran Sorenson
1. Call to Order
Bill Demeules called the special meeting to order at 4:30 p.m.
2. Purpose
The purpose of the special meeting is to provide an opportunity for the EDA Options
Sub - Committee to update the full EDA as to progress as it relates to property acquisition
strategies in support of the Embracing Downtown Plan.
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Angela Schumann summarized that the EDA had appointed Matt Frie and Rod Dragsten
to an EDA Options Sub - Committee in response to Bill Tapper's suggestion that a small
group be directed to provide the EDA with a framework for making decisions related to
downtown property acquisition. Tapper and reSTOREing Downtown's Steve Johnson
acted as resources for the sub - committee.
Matt Frie spoke of how the sub - committee looked to the Land Use and Economic
Development chapters of the Comprehensive Plan and the Embracing Downtown Plan to
identify guiding principles and viable strategies. Downtown has a unique identity which
consists of interrelated and mutually supportive high density mixed uses. As such, certain
redevelopment needs cannot be achieved without public intervention.
The Embracing Downtown Plan identifies the importance of diversifying land use,
encouraging redevelopment of old and obsolete structures, consolidating smaller parcels
with multiple ownerships to increase marketability, expanding facilities and parking,
encouraging mixed use, discouraging stand alone residential use in the core, establishing
physical connections between the downtown and riverfront, and including evening and
weekend attractions. The EDA financially supported these priorities by adopting a
management plan and amending spending plans for TIF Districts 1 -22 and 1 -6 in 2013.
Bill Tapper indicated that guiding principles were needed to:
EDA Special Meeting Minutes: 12/11/13
• Optimize the value of the land for the landowner
• Gain site control of property large enough to entice developers
• Enable the EDA to be the catalyst but only in limited circumstances the developer
for redevelopment
• Enable the EDA to signal to developers the type of development desired and
willingness to work together to completion
• Partner with land and property owners to actively participate in further investing
in Monticello
• Keep properties on tax rolls
• Encourage businesses to stay until property redevelops
• Ensure that the EDA only owns property under certain circumstances (such as a
willing seller and an affordable price, property is distressed and requires
intervention, land is needed for public purpose, or obtained through tax
foreclosure)
• Require EDA participation through TIF funding and/or the provision of land, deed
grants, GMEF, or environmental cleanup
After some discussion about the process and costs involved in acquiring property and
relocating tenants in the Montgomery Farms buildings, the sub - committee decided to
investigate other strategies for gaining site control in the downtown area. They suggested
that the EDA would be most effective in the role of preparing sites for development and
removing physical or economic barriers to achieving community objectives.
Rod Dragsten summarized that the sub - committee had considered numerous acquisition
strategies such as trades, options agreements and outright purchases in an attempt to
maximize EDA resources. Although an options agreement would address many of the
guiding principles of the Embracing Downtown Plan, it was determined to be too costly a
strategy. The sub - committee contacted Janna King of Economic Development Services to
learn how property acquisition had been successfully handled in other localities. King
said that it had proven useful for an EDA to limit its role to providing concept
development and financial seed money. The work of property assembly and negotiations
would then be handled by a corporation established specifically for that purpose. The
property owner and others interested in redevelopment would be directly involved in
handling the property sale or acquisition.
Bill Tapper reiterated that the EDA would be responsible for the vision and for proving
the vision to be viable. Once proven viable, the EDA would fund costs involved in site
concept and development plans. The reSTOREing Downtown group would be
responsible for funding their organization and the corporation they help to establish as
well as any landowner coordination costs and private investment analysis.
Steve Johnson said that the reSTOREing Downtown group had formed a non -profit
corporation as a sub - committee of the Monticello Chamber so that it could act as a group
EDA Special Meeting Minutes: 12/11/13
with legal standing. The group is well positioned to take on the role of assisting property
owners in forming and functioning as an LLC to establish site control and move
redevelopment forward. He indicated that an experienced developer had proposed
reimbursing the cost of a market study which verified that a mixed use concept would be
viable in the downtown.
Bill Tapper said that the Embracing Downtown Plan concept had included a hospitality
use but that a market study for that specific use had not been conducted. He noted that the
regular EDA agenda includes a request to fund a hospitality study.
Tracy Hinz asked for clarification about funding approval protocol. Angela Schumann
stated that funding for market studies are included as a general sub -fund expense in the
EDA annual budget allocation approved by City Council. She pointed out that Council
must consider redevelopment action so that it is consistent with overall city plans.
4. Adjournment
TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 5:42 PM.
TRACE' HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0.
Recorder: Kerry Burri
Approved: February 12t', 2014
Attest: gAze__
Je Oe ll, City Administrator