Loading...
EDA Minutes 07-13-2016MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 13th, 2016, Mississippi Room, Monticello Community Center EDA Members Present: Bill Demeules, Bill Tapper, Steve Johnson, Tracy Hinz, James Davidson, Tom Perrault, Lloyd Hilgart Others: Jeff O'Neill, Angela Schumann, Jim Thares, Wayne Oberg, Ryan Spencer (WSB), Brett Weiss (WSB) 1. Call to Order President Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approve Meeting Minutes: a. Special Meeting — April 13th, 2016 (To Be Provided at Meeting) b. Special Meeting — April 18th, 2016 (To Be Provided at Meeting) c. Workshop Meeting — June 2, 2016 d. Regular Meeting - June 8, 2016 HINZ MOVED TO APPROVE THE APRIL 13TH, 2016 SPECIAL MEETING MINUTES WITH CORRECTIONS. PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. HILGART MOVED TO APPROVE THE APRIL 18TH, 2016 SPECIAL MEETING MINUTES. JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. TAPPER MOVED TO APPROVE THE JUNE 2ND, 2016 WORKSHOP MEETING MINUTES WITH CORRECTIONS. PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. PERRAULT MOVED TO APPROVE THE JUNE 8, 2016 REGULAR MEETING MINUTES WITH SUBMITTED CHANGES. HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. 4. Consideration of additional agenda items NONE. 5. Consideration of approving payment of bills HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH JUNE, 2016. DAVIDSON SECONDED THE MOTION. MOTION CARRIED 7 -0. 6. Consideration of Acceptance of Phase II Env. Report for Block 34, Ryan Spencer, WSB Jim Thares provided a brief overview of two phases of environmental reports for Block 34 (city- owned) completed by WSB. During the summer of 2015, a concern of problematic soils from an underground tank leak was identified at 100 East Broadway. The EDA gained additional site control over additional properties on Block 34 throughout building demolition. Phase I was completed by WSB in November 2014 to better understand the area of concern. An update was then completed in February 2016, which identified three Recognized Environmental Conditions (RECs) and one historic REC. In April, 2016 the EDA discussed action to complete Phase II for Block 34. The fieldwork was completed by WSB in mid -May 2016. Thares introduced Ryan Spencer (WSB) to further explain the Phase II. Spencer stated WSB targeted 130 East Broadway for coal gasification noted in Phase I. From the soil borings taken from the site, no large scale contamination issues were discovered. There was some contamination that surpassed MPCA thresholds which mandates reporting. The City is waiting for the MPCA to determine any follow -up that needs to occur on the site. Another recommendation from Phase II, was prior to redevelopment, prior environmental oversight should be completed to assess subsurface conditions. Spencer also mentioned WSB is providing oversight for a utility being excavated on Block 34. There has been no evidence of soil contamination at this area as of this date. Johnson questioned whether these results would preclude development to the site depending on MPCAs remediation requirements. Spencer reassured members that the data indicates there is no large scale issue with the site. However, the report is currently under review by MPCA and could be a deterrent to development in the near term future. This review should be completed within 30 to 45 days. Spencer also mentioned that the Zoo Bar building historically contained a tank on site. Petro funds, a program through the Department of Commerce, would reimburse petroleum related releases from tank systems could be available for the Zoo Bar building if noted in the MPCA report as an issue. TAPPER MOVED TO ACCEPT PHASE II ENVIRONMENT REPORT FOR BLOCK 34. HILGART SECONDED THE MOTION. MOTION CARRIED 7 -0. 7. Consideration of Update of Storm Water Management System Proposal for Otter Creek Business Park, Brett Weiss, WSB Jim Thares provided an update of the storm water management system proposal for Otter Creek Business Park. Thares stated there was no action required by the EDA, but wanted to mention there are several changes to measuring storm water. Thares introduced Brett Weiss to provide further details. Weiss explained the National Oceanic and Atmospheric Administration Atlas 14 criteria being used to develop pond systems. This new measurement system changes the way ponds are calculated and encourages cities to use higher amounts of rainfall when determining ponds. This new system could have implications for the Otter Creek Business Park, but Weiss stated that it should not impede future development. WSB will be presenting at a future City Council meeting to request updating current ponds to fit the Atlas 14 criteria. Weiss opened the discussion up to EDA members. Angela Schumann asked Weiss to explain how the trunk fee system works for stormwater management. Weiss explained those that provide ponds on their property receive a credit, while those that don't provide ponds pay a fee to have the City create a pond elsewhere. A base fee is also assessed to pay for the piping and discharge. 8. Consideration to direct preparation of an Amendment to the Contract for Private Development between Masters 5t' Avenue and the Monticello EDA and modification of Tax Increment Financing Plan for Tax Increment Financing District 1 -35 Jim Thares explained to the EDA a request to modify tax increment financing for District 1 -35 for the developer to consider retail and mixed used (commercial and residential). If approved, Thares stated that there are several steps to go through including final approval by City Council. In this request, no change in financing would be made. Angela Schumann specified if the EDA takes no action, the contract stands and the developer can continue with commercial development. If desired and the developer receives all land use approvals, they could move through the project without tax increment financing. HILGART MOVED TO MOTION TO DIRECT PREPARATION OF AN AMENDMENT TO THE CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN MASTERS 5TH AVENUE AND THE MONTICELLO EDA AND MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT I -35. DEMEULES SECONDED THE MOTION. MOTION CARRIED 4 -3 WITH TAPPER, DAVIDSON, AND JOHNSON VOTING AGAINST. 9. Consideration of discussion regarding protective covenants for Outlots E and F, Otter Creek Crossing as related to outdoor storage Jim Thares mentioned that City Staff talked to the prospective business interested in Otter Creek Business Park. City staff presented the covenant amendment information to the business and they had the opportunity to review with their staff and builder. The business was concerned about the amount of building area that could be dedicated for outdoor storage. They felt it infringed on their ability to operate and requested 50 percent of the building be used for indoor storage to be used mainly to store PVC pipe. President Demeules questioned what type of enforcement the City could provide for outdoor storage as it relates to storm water runoff. Angela Schumann stated that a site plan review is typically required for industrial areas and the business has to meet the standards identified in the zoning ordinance. HINZ MOVED TO AUTHORIZE STAFF TO WORK ON ADDITIONAL "NEXT STEPS" RESEARCH OF OUTDOOR STORAGE STANDARDS RELATED TO A POSSIBLE AMENDMENT OF THE PROTECTIVE COVENANTS IN OTTER CREEK CROSSING AND REVIEW WITH ALL PROPERTY OWNERS IN OTTER CREEK BUSINESS PARK. TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. 10. Consideration of discussion regarding Small Area Study in Downtown Jim Thares introduced the possibility of a small area study for downtown as determined by the EDA as a priority. City staff is concerned that the previous downtown plan should be revisited for updates. This project is estimated at $45,000 - $55,000. Wayne Oberg mentioned that on Block 34 there are two wells that are central to the water supply system and pump 1,300 gallons per minute. If those wells were lost, there would be significant costs to residents. Oberg asked the study to dissuade removing those wells and clearly articulate the need in the request for proposal. Jeff O'Neill noted several benefits that resulted from the 1997 and 2012 downtown plans and encouraged the EDA to provide clear direction on their intent for the downtown. Angela Schumann also encouraged the EDA to set a vision for what they would like to see for Downtown Monticello. Schumann stated the goal would be to blend the developer's bias towards practical or viable and the EDA's vision of the community and downtown. Schumann mentioned the importance of having a plan in place to continue momentum and developing the downtown. TAPPER MADE A MOTION TO DIRECT STAFF TO PREPARE RFPS FOR EDA REVIEW AND COMMENT. HINZ SECONDED. AN AMENDMENT TO THE MOTION WAS MADE BY TAPPER TO TAKE INTO CONSIDERATION THE WELLS AND INFRASTRUCTURE LOCATED AT BLOCK 34. MOTION CARRIED 6 -1 WITH PERRAULT VOTING AGAINST. 11. Consideration of 2017 EDA Budget Jim Thares presented a draft EDA Budget for 2017. Thares asked members of the EDA to review and snake comments at the next EDA meeting in August. He stated that the budget is similar to last year. The largest change to the budget is proposed for the Small Area Study for $50,000. Wayne Oberg stated that he will soon be reviewing the budget more closely. President Demeules asked if an updated TIF plan would tie into the budget. Thares noted that a TIF plan update will be presented in August. Oberg offered clarification that the budget does not go by line item, but fund level. TAPPER MADE A MOTION TO TABLE ACTION UNTIL THE AUGUST REGULAR MEETING OF THE EDA. JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -1 WITH PERRAULT VOTING AGAINST. 12. Consideration of Director's Report Jim Thares stated he learned of a 200,000 square foot warehouse distribution center and requested direction from the EDA for a site proposal. Angela Schumann stated that based on previous strategic planning sessions and Industrial and Economic Development Committee meetings have been geared towards manufacturing and the uses of the manufacturing park to include job creation, high/livable wages, and precision manufacturers. Jeff O'Neill encouraged the EDA to consider a vision for the amount of land available and the momentum for precision machining. The general comments of the EDA were to pursue the warehouse distribution center. 13. Consideration of recessing to closed session to develop or consider offers or counteroffers for the purchase or sale of real oR personal property pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3) TAPPER MOTIONED TO MOVE TO RECESS TO CLOSED SESSION TO DEVELOP OR CONSIDER COUNTEROFFERS FOR THE PURCHASE OR SALE OF REAL OF PERSONAL PROPERTY PURSUANT TO MINNESOTA STATUTE 13D.05, SUBDIVISION 2(C)(3). PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. 14. Adjourn closed session 15. Adiourn AFTER RETURNING TO THE REGULAR MEETING FROM THE CLOSED SESSION, JOHNSON MOTIONED TO ADJOURN THE REGULAR MEETING AT 8:18. TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Jacob Thunander� Appr d: August 10th 2016 Attest: )hares, Economic Development Director