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