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EDA Minutes 12-11-2013MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING Wednesday, December 11, 2013 - 6:00 p.m., Mississippi Room Present: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault Absent: Brian Stumpf Others: Angela Schumann, Jeff O'Neill, Wayne Oberg, Janna King, Steve Johnson, Koran Sorenson, John Uphoff 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Acceptance of Minutes - November 13, 2013 BILL TAPPER MOVED TO ACCEPT THE NOVEMBER 13, 2013 MEETING MINUTES AS PRESENTED. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. 3. Consideration of additional agenda items None 4. Consideration of approving payment of bills BILL TAPPER MOVED TO APPROVE THE PAYMENT OF BILLS THROUGH NOVEMBER 2013 IN THE AMOUNT OF $ $6,229.25. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -0. The final invoices related to relocation costs at the Montgomery Farms buildings will be available for consideration at the January EDA meeting. 5. Consideration of an update on Embracing Downtown Implementation Strategies; Sub - Committee on Property Acquisitions Angela Schumann summarized the EDA Options Group update which had been presented to the full EDA at a special EDA workshop just prior to this regular meeting. The Land Use and Economic Development chapters of the Comprehensive Plan emphasize that downtown is a unique commercial district which requires public intervention to achieve development goals and community objectives. Intervention may include service improvements, provision of parking, land acquisition, site preparation and removal of physical or economic barriers. The Embracing Downtown Plan helped to define these guiding principles by identifying priorities such as diversifying land use, emphasizing redevelopment, balancing parking needs, establishing physical connections to the core, riverfront and parks, expanding facilities to create an anchor attraction and focusing on attracting evening and weekend activity. EDA Minutes: 12/11/13 The EDA adopted a management plan to maximize the use of pooled tax increment in TIF 1 -22 and modified the TIF 1 -6 plan to provide additional support to achieving comprehensive plan and Embracing Downtown plan objectives. In further recognition of the need to be strategic in managing limited assets, the EDA appointed Matt Frie and Rod Dragsten to a sub - committee to explore property acquisition options. Bill Tapper and reSTOREing Downtown Steering Committee member Steve Johnson acted as resources to the sub - committee. The sub - committee objectives were to gain site control of blocks of land in the downtown district to entice development, optimize the value of landowner holdings and maximize resources to accomplish redevelopment. These objectives are based on the following principles: • to be a catalyst for redevelopment • to signal to developers an interest in particular types of development • to engage land owners in actively participating in identifying a developer • to recognize the need to potentially partner to bring development • to keep properties on the tax rolls as long as possible • to encourage businesses to operate until redevelopment occurs • to only own property only under certain circumstances (willing seller, intervention, public improvement, tax foreclosure) It was noted by the sub - committee that the EDA should expect to financially participate in redevelopment projects as appropriate. Some of the economic development funding strategies available include establishing a new TIF district for redevelopment, combining adjacent land or parking areas that are publicly owned, utilizing GMEF, facilitating DEED grants/loans, seeking grants to initiate environmental analysis and providing planning/engineering support. The sub - committee had initially researched and discussed option agreements as an acquisition strategy but found that, although viable in some circumstances, limited financial resources could become an issue. The sub - committee also consulted with Janna King from Economic Development Services to learn how redevelopment had been accomplished through public /private partnerships in other communities. King pointed to the value of establishing a networking group to identify opportunities and gaps. The EDA may be initially involved in concept and project development and eventually in financing assistance. In other communities, the private sector partners formed a corporation to facilitate redevelopment in terms of assembling land and negotiating a sale price. Schumann noted that the reSTOREing Downtown group was established to provide an organizational structure which would encourage and facilitate the goals of the Embracing Downtown Plan. She suggested that the group may provide the networking opportunity for partnership development and a resource framework for the private sector. Schumann summarized that the process of determining appropriate options for property EDA Minutes: 12/11/13 acquisition includes many variables and is site specific. The Embracing Downtown Plan will require sustained community interest and investment over a 20 year horizon. She suggested that the Options group may continue to meet as needed to refine ideas. Matt Frie suggested that the EDA act as a bridge between landowners and developers to make projects feasible. He noted the importance of Chapter 4 of the Comprehensive Plan in guiding the process. He also said that the EDA must be committed to providing economic assistance to prepare sites for development and remove impediments. 6. Consideration of a request for funding of a market study analysis for hospitality uses as related to the Embracing Downtown plan Angela Schumann summarized that, although a detailed market study had been completed as a component of the Embracing Downtown plan, it had not focused specifically on the potential development of a hospitality project. The Plan's Design Guidelines indicate that "Landmark" designated areas adjacent to the river can and should support hospitality, boutique shopping and river - oriented recreation. The Economic Development chapter of the Comprehensive Plan also points to the importance of understanding realistic market potential. The reSTOREing Downtown Group recommended that a hospitality market report be prepared as a priority. Schumann agreed that funding such a report would be an important factor in understanding the feasibility and future marketability of a downtown hospitality use. It would also signal the EDA's continued commitment and support for the accomplishment of the Embracing Downtown plan. Janna King, who had been extensively involved in the Embracing Downtown planning process, provided additional detail and responded to questions. She stated that the purpose of the analysis would be to determine if there is a market for a hotel and what it would look like in terms of size and character. Rod Dragsten asked how the analysis would be conducted. King indicated that it would involve summarizing data and conducting interviews with large businesses within the community to determine the potential for use and a range of price points. Tracy Hinz asked how this market study differed from the McComb study. King said that the previous study analytics had focused on the retail consumer. She noted that a hospitality study would be oriented toward a number of rooms. Hinz asked if the study would identify a potential location for a hotel. King said that the analysis could be used on a variety of sites but that there may be some site specific information. Economic Development Services would coordinate the scope and day -to -day management of the project to maintain cohesion with the Embracing Downtown Plan. The analysis is expected to be completed by March. EDA Minutes: 12/11/13 TRACY HINZ MOVED TO RECOMMEND THE EDA CONTRACT WITH ECONOMIC DEVELOPMENT SERVICES TO FUND A MARKET STUDY ANALYSIS FOR. HOSPITALITY USES AS RELATED TO THE EMBRACING DOWNTOWN PLAN AT A COST NOT TO EXCEED $10,000. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. 7. Consideration to review and approve the EDA General Fund budget for 2014 Wayne Oberg noted that the City Council had adopted the 2014 City budget on December 9th. The budget includes a $93,000 transfer to the EDA General Fund. The amount is $1,000 more than previously discussed and somewhat offsets the allocation of expenditures for IT services and insurances. Oberg indicated that copy costs would be reallocated throughout the City budget. He also reallocated the cost of liability coverage, which is based on expenditures, to the EDA. In addition, Oberg pointed out that the $1,000 in revenue received from farm rental property does not cover the cost of the property tax paid. He recommended that it be handled in a more cost - effective manner in the future. The miscellaneous expenditure line item was adjusted to keep the overall 2014 budget proposal for EDA general operations at $114,000. The prior amount was $112,000. BILL TAPPER MOVED TO ADOPT THE 2014 PROPOSED BUDGET AS PRESENTED. ROD DRAGSTEN SECONDED THE MOTION. MOTION CARRIED 6 -0. 8. Economic Development Director's Report TIF 1 -6 Update — The City Council approved the decertification of TIF District 1 -6 effective December 31 '. 2014 EDA Workplan — The EDA will prepare the 2014 workplan at its January meeting. 100 Broadway East Tenant Relocation Update - Active relocation to a new site is moving forward for the remaining tenant at 100 Broadway East. A month to month lease for the current space and a lease for the new space have been signed. Progress has also been made on the construction build out. Unlawful detainer action has been halted. Dan Wilson will monitor the relocation. The projected completion date is the end of March. Market Matching Report — WSB's John Uphoff provided an update on the approach underway to market Monticello locally, statewide and regionally. He highlighted recent activities involved in targeted prospect outreach, customer resource management, featured property campaign, local broker and landowner contacts, data collection, and efforts to launch an incubator and accelerator space downtown. He noted that a builder for large retail stores has been exploring local sites and that a qualified lead has indicated interest in moving a growing business to Monticello. Uphoff had also met to review a site plan involving the Rand House property in an effort to encourage such private sector EDA Minutes: 12/11/13 development initiatives. He will work to coordinate his role with that of the reSTOREing Downtown group and the economic development services to be provided by Janna King. He pointed out that Market Matching efforts are going well in terms of establishing contacts, engaging leads, and facilitating a growing recognition of Monticello at the state level. He suggested that the City apply for a 2014 Progress Minnesota innovation award in the municipal fmance and commerce category for investing in municipal fiber. Hinz inquired about the reach of marketing efforts in terms of local versus national or regional. Uphoff responded that it is critical that Monticello stay engaged at all levels. 9. Adiournment BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:54 P.M. MATT FRIE SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Kerry Burri 1 Approved: February 1261, 2014 Attest: Je 11, City Administrator