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EDA Agenda 03-09-2016AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 911, 2016 — 6:00 p.m. Mississippi Room, Monticello Community Center SPECIAL MEETING 4:30 p.m. Academy Room Keller Williams Commercial Presentation Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, James Davidson, Steve Johnson and Council members Tom Perrault and Lloyd Hilgart Staff: Executive Director Jeff O'Neill, Angela Schumann, Wayne Oberg Guest: John Uphoff — WSB & Associates 1. Call to Order 2. Roll Call 3. Consideration of Election of Officers 4. Approve Meeting Minutes: a. Regular Meeting — February 10th, 2016 5. Consideration of additional agenda items 6. Consideration of approving payment of bills 7. Consideration of Market Matching report 8. Consideration of marketing partnership with Monticello Times for 2016 Manufacturing Magazine 9. Consideration to Adopt Resolution EDA- 2016 -001 Authorizing Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 1 -34 10. Consideration to request that City Council call for a public hearing for Amendment to the Contract for Private Redevelopment between Masters 5th Avenue and the Monticello EDA and modification of Tax Increment Financing Plan for Tax Increment Financing District 1 -35 11. Consideration to approve a Financial Planning Agreement with Northland Securities for 2016 Update of the City /EDA TIF Management Plan 12. Consideration of a recommendation on a monthly stipend for non - council members of the Economic Development Authority 13. Consideration of Director's Report 14. Consideration of recessing to closed session to determine the asking price for real or personal property to be sold by the City pursuant to Minnesota Statute 1313.05, Subdivision 3(c)(1) 15. Adjourn closed session 16. Adj ourn 3 A. B. EDA Agenda: 03/09/16 Consideration of Election of Officers (AS) REFERENCE AND BACKGROUND: This item was tabled from the February meeting. The EDA makes one -year appointments for the officer positions of President, Vice - President, Secretary and Treasurer at its annual meeting in February, per EDA bylaws. The election of officers is an internal function of the EDA and does not require ratification by the City Council. Currently, the officer positions are held as follows: President: Bill Demeules Vice President: Bill Tapper Secretary: Staff as Executive Director of EDA Treasurer: Tracy Hinz Assistant Treasurer: Steve Johnson EDA Commissioners Demeules and Tapper are willing to continue service in their respective roles if nominated. Commissioner Hinz has indicated a willingness for another to serve in the role of EDA treasurer for the coming year. See below for reference on current member terms. Economic Development Authority (6 -year staggered terms) ALTERNATIVE ACTIONS: 1. and Bill Tapper 6 yr 12/2021 Tracy Hinz 6 yr 12/2016 Bill Demeules 6 yr 12/2018 Steve Johnson 6 yr 12/2017 Jim Davidson 6 yr 12/2020 Tom Perrault (voting) Council rep Lloyd Hilgart (voting) Council rep Motion to appoint Commissioner as EDA President, as EDA Vice - President, as EDA Treasurer as EDA Assistant Treasurer. C. STAFF RECOMMENDATION: None D. SUPPORTING DATA: None MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 10th, 2016 — Mississippi Room, Monticello Community Center Present: Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault Absent: Bill Demeules, Bill Tapper, Lloyd Hilgart Staff: Angela Schumann, Jeff O'Neill, Wayne Oberg Others: Terri Sweet (Monticello Times) 1. Call to Order Tracy Hinz called the meeting to order at 6:00 p.m. 2. Roll Call Hinz called the roll. Hinz, Davidson, Johnson and Perrault were in attendance. 3. Approve meeting minutes STEVE JOHNSON MOVED TO APPROVE THE DECEMBER 9TH, 2015 SPECIAL MEETING MINUTES. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 4 -0. TOM PERRAULT MOVED TO APPROVE THE DECEMBER 9'H, 2015 REGULAR MEETING MINUTES AS CORRECTED. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 4 -0. STEVE JOHNSON MOVED TO APPROVE THE JANUARY 13TH, 2016 SPECIAL MEETING MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. JIM DAVIDSON MOVED TO APPROVE THE JANUARY 13TH, 2016 REGULAR MEETING MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. 4. Consideration of adding items to the agenda EDA Stipend (Schumann) Land Use Application (Schumann) 5. Consideration of approving payment of bills TOM PERRAULT MOVED TO APPROVE PAYMENT OF BILLS THROUGH JANUARY 2016. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 4 -0. 6. Annual Business Meeting a. Consideration to elect EDA officers Tracy Hinz proposed tabling this item due to the absence of several Commissioners. EDA Minutes: 02/10/16 TOM PERRAULT MOVED TO TABLE ELECTION OF OFFICERS UNTIL THE MARCH 9TH EDA MEETING. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 4 -0. b. Consideration to review EDA Bylaws and Enabling Resolution Schumann noted that City staff and the EDA's attorney had reviewed the Bylaws and Enabling Resolution and proposed no amendments at this time. c. Consideration of 2016 consulting legal and financial appointments Schumann reported that the City Council had approved staff s recommendation to designate Northland Securities as the City's financial consultant and Kennedy & Graven as the EDA's general counsel for 2016. She noted that, in the future, staff would ask that the EDA take action to annually recommend consulting legal and financial appointments for City Council consideration. d. Consideration of EDA fund balance information Wayne Oberg presented the 2015 EDA Balance Sheet. He explained that about a third of the $3,875,237 listed as a total cash and investments is available for EDA use. Oberg also reviewed the 2015 Statement of Revenues, Expenditures and Changes in Fund Balance. He pointed out that adjustments to land held for resale are made as appropriate to reflect the County value. He also pointed out that $44,497 had been transferred from the EDA General Fund to a TIF Future Fund to be used for a Block 34 TIF District yet to be created. Oberg provided an overview of the 2016 Budget. He noted that most of the TIF activity can be attributed to TIF 1 -22. Oberg also distributed a worksheet detailing investment market values, investment income, and investment returns. He reported that the EDA had received $52,000 from City -wide investments. Oberg noted that final numbers will not be available until July. 7. Consideration of Market Matching report Angela Schumann indicated that WSB consultant John Uphoff was not available to provide a Market Matching report. She noted that she would be meeting with the Market Matching team to discuss the month -to -month contract moving forward and would report back to the EDA in March. She noted that the intent was to scale back the contract significantly once an Economic Development Manager position has been hired. Schumann explained that Market Matching staff continue to assist with responding to day -to- day inquiries on behalf of Monticello. She pointed out that she would be speaking with Uphoff about a prospect later in the week. Schumann also noted that the collateral material EDA Minutes: 02/10/16 would be updated in the near future. 8. Consideration of 2016 Manufacturer's Week publication participation Terri Sweet indicated that the Monticello Times would like to take a more active role in promoting Monticello. Sweet proposed partnering with the EDA and City staff to develop a publication which could be used as a marketing tool to encourage industrial development. Sweet pointed out that the EDA and City staff would be asked to direct the content of the publication and provide $3,000 in seed money which would enable staff at the Monticello Times to assist with writing, formatting, printing and distributing the publication. She provided examples of the type of content such a publication might include and pointed to some preliminary publication and cost estimates. Commissioners asked questions related to how the publication would differ from other marketing materials, its intended target audience, how it would be distributed, how it would fit into the broader EDA marketing plan, and the impact of the proposed expense on the EDA's marketing budget. Schumann pointed out some of the gaps in information currently available for distribution. Jeff O'Neill noted that this publication may be useful as a recruitment tool for employers within the manufacturing community. Schumann also suggested it would be of use to brokers, bankers, realtors and the Wright County Economic Development Partnership. Schumann suggested that staff would continue to work with the Monticello Times to further outline the parameters of such a publication and address the questions noted. JIM DAVIDSON MOVED TO TABLE ACTION FOR FURTHER RESEARCH AND DISCUSSION. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 4 -0. Hinz noted that Tom Perrault left the meeting at 7:07 p.m. 9. Consideration of Director's Report Market Matching Services — Schumann indicated that she would provide a revised scope of services related to the Market Matching contract and an update as to the status of the Economic Development Manager position at the next regular EDA meeting. She noted that funding would be redirected from other sources within the EDA budget to cover the cost of continuing the month -to -month Market Matching Services beyond the amount budgeted which will be depleted by the end of March. Wilson Development Services — Schumann indicated that she had also asked that Wilson Development Services provide a proposal for a new scope of services for acquisition and relocation assistance related to achieving EDA objectives. EDA Minutes: 02/10/16 10. Consideration of adding items to the agenda EDA Stipend (Schumann) — The Personnel Committee plans to bring forward a recommendation that the City Council establish a $50 per meeting attendance stipend for EDA members. EDA members have the option of choosing not to accept the stipend. • Land Use Application (Schumann) — Schumann noted that the EDA would be asked to consider action to amend the TIF 1 -35 Management Plan to allow ground floor residential housing at the corner of Locust and Yd Street (Landmark II) at an upcoming meeting in response to pending Planning Commission action related to a rezoning to CCD Residential Overlay District on this site. 11. Adiourn STEVE JOHNSON MOVED TO ADJOURN THE MEETING AT 7:13 PM. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 3 -0. Recorder: Kerry Burri Approved: Attest: W IL _\ OK Angela Schumann, Community Development Director 4 EDA Agenda: 3/09/16 6. Consideration of approving payment of bills (WO) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through February 2016. 2. Motion to approve payment of bills through February 2016 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends Alternative 91. D. SUPPORTING DATA: Accounts Payable Summary Statements Accounts Payable Transactions by Account User: Julie.Cheney Printed: 02/03/2016- 1:11PM Batch: 00203.02.2016 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] General EDA Matters through 12/31/1 12/31/2015 115361 446.45 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] BLK034 - TIF District 34 through 12/ 12/31/2015 115361 294.75 Vendor Subtotal for Dept:46301 741.20 213-46301-431990 HARRY LANTTO EDA Meeting Recording 1/13/16 02/09/2016 0 60.00 Vendor Subtotal for Dept:46301 60.00 Subtotal for Fund: 213 801.20 Report Total: 801.20 The preceding list of bills payable was reviewed and approved for payment. Date 3/9/16 Approved by Tracy Hinz - Treasurer AP- Transactions by Account (02/03/2016 - 1:11 PM) Page 1 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 02/17/2016 - 2:17PM Batch: 00205.02.2016 Account Number Vendor Description Monticello GL Date Check No 213-46301-431990 NORTHLAND SECURITIES INC January 2016 - TIF District 35 02/23/2016 Vendor Subtotal for Dept:46301 The preceeding list of bills payable was reviewed and approved for payment. Date 3/9/16 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 Report Total: 115438 Amount PO No 340.00 340.00 340.00 340.00 AP- Transactions by Account (02/17/2016 - 2:17 PM) Page 1 Accounts Payable Transactions by Account User: Julie.Cheney Printed: 02/17/2016 - 4:17PM Batch: 00202.02.2016 Account Number Vendor Description Monticello GL Date Check No 213-46301-431990 US BANK CORPORATE PMT SYS Trusted Employees - Background Che( 02/23/2016 Vendor Subtotal for Dept:46301 The preceding list of bills payable was reviewed and approved for payment. Date: 3/9/16 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 Report Total: 0 Amount PO No 37.00 37.00 37.00 37.00 AP- Transactions by Account (02/17/2016 - 4:17 PM) Page 1 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 03/01/2016 - 1:06PM Batch: 00215.02.2016 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213 - 46522 - 438100 XCEL ENERGY ZCULPS - 510623082 -8 EDA 02/29/2016 0 13.97 Vendor Subtotal for Dept:46522 13.97 The preceding list of bills payable was reviewed and approved for payment. Date: 3/9/16 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 13.97 Report Total: 13.97 AP- Transactions by Account (03/01/2016 - 1:06 PM) Page 1 EDA Agenda: 03/09/16 7. Consideration of Market Matching report A. REFERENCE AND BACKGROUND: A verbal report will be provided by WSB Market Matching consultant John Uphoff. EDA Agenda: 03/09/16 8. Consideration of marketing partnership with Monticello Times for 2016 Manufacturing Magazine (AS) A. REFERENCE AND BACKGROUND: In February, the EDA heard from the Monticello Times regarding a proposed publication focusing on Monticello's manufacturing sector. The Times presented an initial outline on the piece. The item was tabled for additional review and information. The Times intends the publication to provide community information pertinent to attracting and retaining manufacturing and to highlight numerous industries within the community. Staff have had the opportunity to meet with representatives from the Times regarding cost, distribution and the ability to use the piece as a cross - purpose marketing tool for the city. The Monticello Times has provided a revised outline for the proposed publication based on EDA feedback, and a representative will be present at the meeting to provide additional information and answer questions. For decision - making support, at the February meeting the EDA also requested that staff provide information on where the piece would fit within an overall marketing plan. In that regard, staff would propose appointment of an EDA task force to develop an EDA marketing plan, to be refined with full EDA input and as new staff come on board. The group can then consider the Times piece, as well as measurement of its results, as a component of the overall marketing plan. The consideration for this piece relative to a larger marketing plan is timing; for distribution with 2016 MN Manufacturer's Week, the Times needs to understand EDA commitment prior to mid -April. The EDA also requested information on past marketing expenditures. Included is a report of 2015 marketing expenditures. Last year's expenditures were limited to signage on properties for sale, Industry of the Year event activities, and the hospitality market study update. Al. Budget Impact: The Times has requested the commitment of $3,000 from the EDA for a run of 10,000 pieces. The EDA's 2016 marketing budget is $5,000. A2. Staff Impact: If the EDA elects to move forward, staff will work with the Monticello Times, as well as local brokers and manufacturers to develop content and focus. B. STAFF RECOMMENDATION: After discussing the product further with the Times, staff believes a piece can be developed, distributed and utilized in a manner supportive of the cost investment. However, if the EDA would rather a formal marketing outline be developed first (illustrating where such a marketing tool would fit) staff would recommend the EDA appoint a task force to develop a formal marketing plan for the EDA. C. ALTERNATIVE ACTIONS: 1. Motion to approve continued work with the Monticello Times on development of a 2016 Monticello Times manufacturing publication and to authorize an expenditure of $3,000 toward the publication. EDA Agenda: 03/09/16 2. Motion to appoint EDA members to a task force to develop a formal marketing plan for the EDA. Motion to table action for further research and discussion. D. SUPPORTING DATA: Monticello Times Proposal 2015 Marketing Expenditures OA Monticello Manufacturing Magazine The Monticello Times would like to partner with the City of Monticello and the EDA to publish a manufacturing magazine that would be used to help the City recruit new industry and skilled workers to the area. This would not be a traditional Monticello Times publication in the sense that we would assist in the writing of the piece but we would not determine the content. We would like to stress that this is YOUR piece and details of content and distribution are your call. The Monticello Times is asking for monetary assistance ($3000) in the production of this piece. Format Full color glossy 8 "W x 10 "H magazine. How this magazine is bound and what type of paper weight for the cover and inside pages is yet to be determined. After meeting with Angela she has requested a quote to have a heavier stock cover that on the inside of the front and back covers would have pockets to fit sheets of paper in and have 4 slits in the front pocket in order to fit in a business card. I am currently getting quotes for 5,000 and 10,000 copies. I am estimating that this could run anywhere from $5000 -$8000 (without pockets) to potentially $10,000 - $15,000 (with the pockets). We are currently waiting for quotes from the printer. I am hoping by meeting time I can give you solid numbers. Content Reach This would be two fold. 1. The City /EDA would determine what resource information they want included that would be geared towards recruiting new manufacturing. 2. The Monticello Times sales staff would work with local manufactures to do stories on their company that would be geared towards what they do and workforce development. Manufacturers would pay for these stories. Also we could call on businesses who work directly with industries such as bankers, real estate brokers, trade labor companies, etc. and that money would be used to help defer the cost of the piece and pay the Monticello Times staff for their time and effort. This will be determined by the City /EDA. It was discussed that a manufacturer's list could be purchased, we could check with metro chambers, the Wright Co. Economic & Development Association and DEED, to see if we can get a list of manufacturers from them. We are certainly open to any suggestions you may have as well. Layout /Printing The Monticello Times will produce a layout under the watchful eye of the City. The City will have final approval. Once approved the Monticello Times will have the piece printed. We need a 3 week lead time once layout is approved. Our goal is to have this printed and ready to hand out by Oct. 3. Copy and ad deadlines would be Friday, Sept. 2. We believe we need a solid 3 months minimum to sell and do editorial research. We also need time before that to prepare a sales piece. So we are hoping a decision can be made at the March 9 EDA meeting Distribution The distribution of the piece would not go out as traditionally done with other Times publications meaning we would not be inserting this into our publications to reach out to potential business prospects. Instead we would work with the City /EDA to determine who they want to reach and where they want it distributed. The Monticello Times is merely offering its print services, writing and sales staff and will help facilitate distribution where reasonably possible. Possible distribution means would be direct mail for some, give extra copies to area commercial RE brokers and bankers, DEED, WCECA, chamber, etc. Again, we are open for suggestions. Online Distribution. The Monticello Times can provide the City with an electronic (pdf) version of the magazine that they can put online. If someone wants to print a page, they can simply click on that page and their info will print out without printing out the entire magazine. This piece could be handed out by your new Economic Development Manager at manufacturing tradeshows as well. Shelf Life This will be determined by the resource content inside and if we are able to afford a pocketed piece. With no pockets I am guessing a shelf life a year, possibly two. With pockets, we could extend the shelf life by putting any updated information inside the pocket. Final Thought The Monticello Times simply saw a need for the City and has agreed to partner with the City in this unconventional way. We understand that some things are in flux at city hall. You are in the process of hiring a new Economic Development Manager, your communication director has her hands full with FiberNet, your staff is very busy and we just want to help. We feel this piece could also be a great learning tool for the new EDM and would give that person the ability to hit the ground running instead of spending months of their time trying to put something similar together by themselves and at a much greater cost to the City. If you have any questions or concerns, please feel free to contact Tim Hennagir at 763.271.6468 or tim.hennagir @ecm - inc.com OR Terri Sweet at 763.271.6465 or terri.sweet @ecm - inc.com in advance of the March 9 meeting and we will do our best to have a response for you at the meeting. General Ledger Detailed Trial Balance User: Julie.Cheney Printed: 03/02/2016 - 8:38AM Period: 01 to 12, 2015 Account Number Description Monti cello Budget Beginning Balance Debit This Period Credit This Period Ending Balance 213 5,850.00 0.00 Economic Development 0.00 5,850.00 EXPENSE 0.00 200.00 5,650.00 213-46301 5,650.00 Housing and Redev Authority 200.00 5,650.00 213 - 46301 - 434600 Marketing 17,000.00 2/6/2015 AP 2 35 Void 2243 Ck# 0 2/24/2015 AP 2 136 2243 - BULLFROG SWEATSHOP LLC Ck# 113687 4/14/2015 AP 4 51 1110 - MICHAEL D CHOUINARD Ck# 113884 9/15/2015 AP 9 44 4219 - HOSPITALITY CONSULTING GROUP IN, Ck# 114631 11/15/2015 AP 11 85 2811 - US BANK CORPORATE PMT SYSTEM Ck# 0 213 - 46301 - 434600 Totals: Var: 11,350.00 17,000.00 213-46301 EXPENSE Totals: 17,000.00 EXPENSE Totals: 17,000.00 213 Totals: - 17,000.00 Report Totals: - 17,000.00 0.00 200.00 650.00 4,000.00 1,000.00 0.00 5,850.00 0.00 5,850.00 0.00 5,850.00 0.00 5,850.00 0.00 5,850.00 200.00 0.00 0.00 0.00 0.00 200.00 5,650.00 200.00 5,650.00 200.00 5,650.00 200.00 5,650.00 200.00 5,650.00 GL - Detailed Trial Balance (03/02/2016 - 8:38 AM) Page 1 EDA Agenda: 03/09/16 9. Consideration to Adopt Resolution EDA- 2016 -001 Authorizing Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 1 -34 (WO /AS) A. REFERENCE AND BACKGROUND: The EDA is asked to approve an interfund loan TIF District 1 -34. TIF 1 -34 is a Renovation and Renewal District established in 2005 to support the renewal of the CSAH 18/I -94 interchange area, and included funding to support the construction of the interchange itself. The tax increment generated in the district is utilized to pay debt service on the 2005 G.O. Improvement Bonds (the "Bonds ") associated with the interchange improvement project. Tax increment generated in the district has not been sufficient to cover the portion of debt service on the Bonds that was to be paid from tax increment, estimated to be approximately $287,000 annually. The City /EDA has provided other revenue to pay debt service on the Bonds. The interfund loan will provide the opportunity for the City /EDA to be reimbursed from tax increment in the future for payment of debt service that was planned to be paid from tax increment if there is an increase in tax increment in TIF District 1 -34 from new development. The interfund loan resolution authorizes the advance of up to $500,000 in legally available City /EDA funds to pay debt service on the Bonds, together with interest at the rate of 4 %. The interfund loan would be repaid to the extent tax increment is available. Al. Budget Impact: The interfund loan will allow the City /EDA to borrow funds to TIF District 1 -34 to cover any future shortfalls associated with the transfer out of the District to fund debt service payments. The estimated impact to the City /EDA over the life of the district is $500,000. Without approval of the interfund loan resolution, the City /EDA will not be able to use potential future tax increment to repay the City /EDA for the use of other revenue to pay debt service. A2. Staff Workload Impact: The Finance Director and Northland Securities have assisted in developing an understanding of the management of the district as related to the interfund loan. B. STAFF RECOMN[ENDATION: Staff recommends adoption of the resolution. The interfund loan resolution is necessary to meet the financial requirements associated with the construction of the interchange and renewal of the TIF District 1 -34 area. C. ALTERNATIVE ACTIONS: Motion to adopt Resolution EDA- 2016 -001 Authorizing Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 1 -34. 2. Motion to table action for further research and discussion. D. SUPPORTING DATA: Interfund Loan Resolution EDA- 2016 -001 2012 TIF Management Plan, Excerpt CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2016 -001 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1 -34 BE IT RESOLVED By the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority ") as follows: Section 1. Background. 1.01. The Housing and Redevelopment Authority in and for the City of Monticello (the "HRA ") previously established Tax Increment Financing District No. 1- 34 (the "TIF District ") within its Redevelopment Project No. 1 (the "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act "), and later transferred the control and administration of such TIF District to the Authority. In connection with establishment of the TIF District, the HRA approved a Tax Increment Financing Plan for the TIF District. 1.02. The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from legally available Authority or City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority has determined that it may be necessary to finance up to $500,000 in infrastructure costs associated with the construction of a highway interchange within the TIF District (the "Infrastructure Costs ") using Authority or City funds legally authorized for such purpose, and to reimburse such funds from tax increments from the TIF District when received. 1.05. The Authority intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $500,000 in legally available Authority or City funds to pay the Infrastructure Costs, together with interest at the rate of 4% per annum (the "Interfund Loan"). Interest shall accrue on the principal amount of each advance from the date of such advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270C.40 and Section 549.09, both in effect for calendar year 2016, and will not be adjusted. 475692v2 MNI MN190 -119 1 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2016 -001 2.02. Principal and interest ( "Payments ") on the Interfund Loan shall be paid semi - annually on each August 1 and February 1 (each a "Payment Date "), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as tax increment from the TIF District received by the Authority from Wright County in the six -month period before any Payment Date. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on a parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this resolution is pre - payable in whole or in part at any time by the Authority without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan to the extent permissible under law. 2.07. The Authority may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. 475692v2 MNI MN190 -119 2 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2016 -001 Section 3. Effective Date. This resolution is effective upon approval. Adopted this 9th day of March, 2016. President ATTEST: Executive Director 475692v2 MNI MN190 -119 3 District 1 -34 is the only renewal and renovation TIF district. This District was established to provide a por- tion of the funding to construct the east interchange with Interstate 94. The tax increments from this Dis- trict are pledged to pay a portion of debt service on the $10,735,000 G.O. Refunding Bonds, Series 2011A (the original issuance was Series 2005A). Bond records contain a specific flow of funds for the "TIF Portion" of the debt service plan. This portion of the bond issue consists of $5,325,000 in principal. The flow of funds assumes $280,697 of annual tax incre- ment revenues for the years 2013 through 2022. Other revenues needed to pay debt service on this portion of the bond issue include special assessments, general tax levy and County revenues. District 1 -34 is scheduled to be decertified no later than December 31, 2022. Actions Taken Since 2009 The City has transferred funds from this District for payment of the Bonds which has been in excess of available tax increment. This District is in a negative fund balance position. Administrative Steps The TIF plan estimates on file with the Office of the State Auditor (OSA) for this district needs review to confirm the OSA has the correct authorized expendi- tures amounts. Management Strategy Option 1- Discharge Obligations The focus of this District will be the repayment and management of the outstanding 2011A Bonds. It is anticipated that all of the tax increment revenue from CityNumber ...................................................................... ...........................1 -34 CountyNumber ................................ ............................... ............................634 Name ..................... ............................... .....................Monticello Interchange Type................. ............................... ........................Renewal and Renovation Established .............................................................. ............................... 9/12/05 Certification Requested .................................... .............................12 /29/05 Certified........................................................................ ............................8/1 /06 Year of First Increment ................... ............................... ...........................2007 4 -Year Knockdown .................................................. ..............................8 /1/12 5-Year Rule ................................................................ ............................... 8/1/16 Decertification .................................................... ............................... 12/31/22 Original Tax Rate .......................... ............................... .....................110.297% Original Tax Capacity Value ........ ............................... .........................47,897 Current Base Tax Capacity Value ....................... ............................... 32,548 Current (Pay 2012) Tax Capacity ............................. ........................285,662 Parcels.................................................................................... .............................13 155 - 011 - 000151 155 - 011 - 000152 155 - 011 - 000161 155 - 011 - 000162 155- 011- 000165 155- 178- 000040 155 - 205 - 001010 155 - 205 - 001020 155 -205- 001030 155 - 500 - 182300 155 - 500 - 182302 155 - 500 - 182303 155 - 178 - 001010 this District will be used to pay debt service for the entire life of the District. The finance plan for the 2011A Bonds calls for $280,697 per year in tax increment revenues. This is greater than the estimated annual revenue from current values and rates. Additional development in this District may increase tax increment revenues beyond the planned amount. However, the increase may not be sufficient District Summary District 1-34 (Monticello Interchange) Renewal & Renovation 40 District Summary to cover the planned transfer of funds for payment on the outstanding Bonds and to eliminate the cumula- tive negative cash balance for this District. Additional funds will likely be needed from the City for future cash flow management of this complex bond issue. This District benefits from extended knock -down and five -year rule periods approved by the Legislature in 2009. 41 District Summary District 1-34 Revenues and Other Financing Sources Tax increment revenue OriginalTIF Cumulative Accounted Plan Budget ModifiedTIF for in Prior Amount Plan Budget Year 5,500,000 5,500,000 584,406 2010 301,517 2011 269,290 2012 279,177 2013 279,177 2014 279,177 2015 279,177 2016 279,177 2017 279,177 2018 279;177 2019 279,177 2020 279,177 2021 279,177 2022 279,177 Estimated Total Life of District 4,226,162 Market Value Homestead Credit 0 Investment earnings 100,000 100,000 612 4,159 7,642 (2,667) (2,753) (2,840) (2,929) (3,020) (3,113) (3,208) (3,304) (3,403) (3,503) (3,606) (21,934) Bond proceeds 5,400,000 5,400,000 0 Loan proceeds 500,000 500,000 0 Special assessments 0 SalesAease proceeds 0 Loan /advance repayments 0 Developer payment 0 Interfund loan /transfer 0 Other 0 Transfers (in) 0 0 Total Revenues /OFS Expenditures and Other Financing Uses Land /building acquisition 11,500,000 3,000,000 11,500,000 3,000,000 585,018 305,676 276,932 276,510 276,424 276,337 276,248 276,157 276,064 275,969 275,873 275,774 275,674 275,571 4,204,228 0 Site improvement /preparation costs 500,000 500,000 0 Utilities 100,000 100,000 0 Public parking facilities 0 Streets and sidewalks 1,000,000 1,000,000 3,983 3983 Public park facilities 0 Social, recreation, or conference facilities 0 Interest reduction payments 0 Bond principal payments 5,400,000 5,400,000 0 Bond interest payments 750,000 750,000 0 Loan principal payments 500,000 500,000 0 Loan /note interest payments 0 Administrative expenses 550,000 550,000 25,704 91 100 100 100 100 100 100 100 100 100 100 100 100 26995 Paying agent fees 0 Other 0 Interest PAYGO 0 Transfers (out) for debt service Total Expenditures /OFU Revenues /OFSOver(Under) Expenditures /OFU Fund Balance -Begin 11,800,000 (300,000) 11,800,000 (300,000) 637,546 667,233 (82,215) 317,277 317,368 (11,692) (82,215) 316,279 316,379 (39,447) (93,907) 280,696 280,796 (4,286) (133,354) 280,696 280,796 (4,372) (137,640) 280,696 280,796 (4,459'1 (142,012) 280,696 280,796 (4,548) (146,471) 280,696 280,796 (4,639) (151,019) 280,696 280,796 (4,732) (155,658) 280,696 280,796 (4,827) (160,390) 280,696 280,796 (4,923) (165,217) 280,696 280,796 (5,022) (170,140) 280,696 280,796 (5,122) (175,162) 280,696 280,796 (5,225) (180,284) 4,358,758 4,389,736 (185,508) 0 Fund Balance -End Bond Outstanding (93,907) 3,403,935 (133,354) 3,087,656 (137,640) 2,806,960 (142,012) 2,526,264 (146,471) 2,245,568 (151,019) 1,964,872 (155,658) 1,684,176 (160,390) 1,403,480 (165,217) 1,122,784 (170,140) 842,088 (175,162) 561,392 (180,284) (185,508) 280,696 0 42 (185,508) EDA Agenda: 03/09/16 10. Consideration to request that City Council call for a public hearing for Amendment to the Contract for Private Redevelopment between Masters 5tb Avenue and the Monticello EDA and modification of Tax Increment Financing Plan for Tax Increment Financing District 1 -35 (AS) A. REFERENCE AND BACKGROUND: The EDA is asked to consider requesting that the City Council call for a public hearing related to the request for amendment to contract for private redevelopment for TIF 1 -35. The developer, Masters Stn Avenue, has formally requested that the EDA consider amendment of the Contract for Private Redevelopment between Masters Stn Avenue and the Monticello EDA, and modification of the Tan Increment Financing Plan for TIF District 1 -35. TIF District 1 -35 was certified in 2006, and was created to fund $170,000 in costs associated with the development of an 11,000 square foot retail commercial project known as "Landmark Square II ". The project area is a single parcel located at the northeast corner of Yd and Locust Streets. The tax increment generated in the district was intended to reimburse the developer for land acquisition and demolition through "pay -as- you -go" TIF assistance. The EDA approved an extension of the contract between the EDA and the developer in October of 2015 as related to TIF District 1 -35. At that time, the developer indicated there was the potential for an exclusively residential project on the TIF district parcel. At this time, the developer has submitted a land use application (CCD Residential Overlay rezoning request), as well as a Concept Planned Unit Development Submittal request through the City's Community Development Department. The applications submitted illustrate a 23 -unit residential project on the parcel. As a companion component to the project, the developer is also seeking to amend the contract for redevelopment and to modify the TIF plan to capture additional increment which may be generated with the proposed project. There is the potential for the project to exceed original costs, creating a larger financing gap, and an opportunity for additional TIF assistance as a result. Staff has worked with Kennedy & Graven and Northland Securities to understand the process involved with the amendment and modification contemplated. A memo regarding both is attached for the EDA's reference. A tentative timeline has been included in the memo. The first step in the process is to request that the City Council call for the public hearing on the TIF plan modification. The public hearing is held by the City Council. The EDA will note the memo describes time constraints for any modification and amendment of this district due to "5 -Year Rule" requirements. Given the time and detail needed to support consideration of the modification and amendment process, it is required that the developer submit a new application for tax 1 EDA Agenda: 03/09/16 increment assistance, including all required documentation and the $10,000 required deposit. With the new information, an estimate of the amount of tan increment generation can be calculated, the "but -for" qualification analysis can be prepared, and other project documents will be developed for EDA consideration. The EDA will note that calling for a public hearing is not an approval of or commitment of additional assistance beyond that which has already been approved. Rather, if the EDA is willing to enter into the process for the consideration of amendment and modification of the district, the developer will enter into the formal process for application for the modification and amendment. The decision on the modification and amendments occurs at a later date. Actions related to the request for amendment of the contract and modification are a policy consideration for the EDA. When the TIF district was created, it was intended to spur and support private commercial redevelopment. If the EDA believes that the TIF District as originally established should stand as intended, then the EDA can elect not to request that Council call for the hearing. Al. Budget Impact: As noted, given the time and additional information needed for the modification and amendment process, it is required that the developer submit a new application for tax increment assistance, including all required documentation and the $10,000 required deposit. At that time, an understanding of the amount of increment and other project details will be developed. A2. Staff Workload Impact: An estimated 8 hours of staff and consulting time has been spent to -date in research and communication on this district. To date, consulting time has been coded to the 10% administrative line item in the district. B. STAFF RECOMMENDATION: As noted, the amendment of the contract is a policy question for the EDA. If the EDA is supportive of the concept proposed by the developer, requesting that Council call for the hearing is the first step. If the EDA wishes to proceed under the original TIF Plan and contract as recently amended, no hearing is necessary. C. ALTERNATIVE ACTIONS: 1. Motion to request that City Council call for a public hearing for Amendment to the Contract for Private Redevelopment between Masters 5t' Avenue and the Monticello EDA and modification of Tax Increment Financing Plan for Tax Increment Financing District 1 -35. 2. Motion not to request that City Council call for a public hearing for Amendment to the Contract for Private Redevelopment between Masters 5t' Avenue and the Monticello EDA and modification of Tax Increment Financing Plan for Tax Increment Financing District 1 -35. PJ EDA Agenda: 03/09/16 3. Motion to table this item for additional information. D. SUPPORTING DATA: A. Developer Request, February 26th, 2016 B. January 29, 2016 Memo, Kennedy & Graven C. TIF Plan 1 -35, excerpt D. TIF Management Plan, excerpt for TIF 1 -35 E. Developer Concept Proposal /CCD Overlay Application Documents F. Contract for Private Redevelopment Master's Fifth Avenue, Inc. 19 577 180th Ave NW Big Lake, MN 55309 763 - 390 -0393 February 26, 2016 TO: Monticello Economic Development Authority 505 Walnut Street Monticello, MN 55362 Attention: Angela Schumann We request consideration at your meeting of March 9th to consider modification of TIF District 1 -35 and amending the contract for private redevelopment to comply with the proposed project on this site. Thank you for your attention to this matter. Master's Fifth Avenue, Inc. Barry D. Fluth, president Kennedy Graven CHARTERED 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis MN 55402 (612) 337 -9300 telephone (612) 337 -9310 fax http: / /www.kennedy- graven.com MEMORANDUM To: Angela Schumann, City of Monticello Economic Development Authority From: Martha Ingram Re: TIF District No. 1 -35 Date: January 29, 2016 In 2005, the Housing and Redevelopment Authority in and for the City of Monticello ( "HRA ") and the City of Monticello (the "City ") created Tax Increment Financing District No. 1- 35 (the "TIF District "), a redevelopment tax increment financing district, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"). The HRA entered into a Contract for Private Development with Masters Fifth Avenue, Inc. (the "Developer "), dated as of September 7, 2005, to provide for the construction of a commercial retail center on the parcel making up the TIF District (the "Development Property "). In 2007, in conjunction with the consolidation of HRA activities and those of the City of Monticello Economic Development Authority ( "EDA "), the Contract was assigned by the HRA to the EDA. The Contract has been amended three times to allow the Developer more time to commence construction of the retail center, most recently in December 2015. The Development Property has been vacant since creation of the TIF District and has not generated any increment. The Developer has now approached EDA staff with a proposal to construct 23 units of housing in the TIF District (the "Proposed Project"), rather than the originally proposed retail center. The Developer has also requested an increased amount of tax increment assistance due to the comparatively high cost of developing housing. You have requested an analysis of whether it would be possible to accommodate the Developer's request, and if so, what legal and procedural steps would be required. I have consulted with Tammy Omdal of Northland Securities ( "Northland ") to obtain a portion of the information in the following memo, and the sections of this memo regarding the required legal and procedural steps involved in accommodating the Developer's request for the Proposed Project incorporate Northland information. A. Legal Feasibility of Amended Project Under TIF Act —Applicable Rules 1. Five -Year Rule There are several interrelated rules governing the use of tax increment from a tax increment financing district and the timing of this use. The first rule introduces the concept of in- district expenditures and outside - district expenditures. This rule generally provides that an authority must spend at least 75% of the tax increment generated by a redevelopment TIF district on qualified activities within the district. It may spend up to 25% of the tax increment on activities outside the TIF district but within its designated Redevelopment Project area, subject to various other restrictions. Layered over this general rule is a timing test known as the "five -year rule." This rule provides that tax increment revenues are only considered to be expended on activities within a TIF district if they meet one of the following requirements within five years after the county auditor certifies the district: (1) increment is paid to a third party for a TIF - eligible activity; (2) bonds, the proceeds of which are used to finance an activity, are sold to a third party and proceeds are reasonably expected to be spent within the five -year period (with certain limited exceptions); (3) binding contracts are entered with a third party for performance of an activity, and increment is spent under the contract; or (4) costs are incurred by a party and revenues are spent to reimburse a party. The term "third party" excludes the party receiving TIF assistance and the "municipality or the development authority or other person substantially under the control of the municipality." However, clause (4) permits the typical "pay as you go" reimbursement where the initial costs are incurred by the developer within the five -year period. After expiration of the five -year period, increment from any parcel in the district may be used to pay on bonds or contracts that were issued or entered into within the five -year period. In addition, the entire in- district percentage of tax increment received must be used to pay existing in- district obligations. For redevelopment tax increment financing districts certified between 2003 and 2009, the five -year rule is extended to ten years. The TIF District in question is a redevelopment district and was certified by Wright County on August 1, 2006, which means that it qualifies for this extension. The five -year rule is important because it governs the amount of increment that may be available to assist private development. Starting in the sixth year after certification (or 11' year if the extension is applicable), if an authority enters into a contract or issues bonds to assist private development, all the increment spent on those obligations will be considered spent outside the district, which effectively limits the amount available for this new development to a 364132v2 MNI MN190 -101 2 maximum of 25% of the increment generated. Administrative costs are considered outside - district expenditures, so if the authority retains any portion of its permitted 10% for administrative purposes, this reduces the amount available for private redevelopment purposes even further. 2. Additional Rules: Section 469.176, Subdivision 4j Section 469.176, subd. 4j of the TIF Act ( "Subdivision 4j ") adds a further limitation to the use of tax increment. Subdivision 4j requires that "90 percent of the revenues derived from tax increment from a redevelopment or renewal and renovation district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under [this Act]." These uses include: • acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution or contaminants; • acquiring adjacent parcels necessary to provide a site of sufficient size to permit development • demolition and rehabilitation of structures • clearing of the land • the removal of hazardous substances or remediation necessary to development of the land • installation of utilities, roads, sidewalks and parking facilities for the site In addition, under Subdivision 4j, the "allocated administrative costs of the authority" are part of the qualifying costs that satisfy Subdivision 4j. That is, administrative costs related to activities meeting the Subdivision 4j requirements are considered part of those Subdivision 4j activities and as such are part of the 90 %. 3. Additional Rules: the Knock -Down Rule Within four years after certification of a TIF district, one of the following activities must have been commenced by the authority or the owner of the parcel in accordance with the tax increment financing plan: • Demolition • Rehabilitation • Renovation of property • Site preparation • "qualified improvements" of a street adjacent to a parcel A "qualified improvement" of a street means (1) construction or opening of a new street; (2) relocation of a street, or (3) substantial reconstruction or rebuilding of an existing street. Installation of utility service is not a qualified improvement. If one of the listed activities does not occur within the four -year period, collection of increment from that parcel is suspended. The parcel is often referred to as "knocked down." The parcel is not removed from the district for all 364132v2 MNI MN190 -101 purposes, however. Increment from other parcels may still be spent on this parcel, which is still within the district. Similar to the five -year rule, the knock -down rule was amended by the legislature to extend the deadline for qualifying activities to December 31, 2016 for TIF districts certified between 2005 and 2009. B. Application of Legal Rules to TIF District and Contract 1. Status of Existing Contract The TIF District in question is a redevelopment district and was certified on August 1, 2006, so the five -year rule will come into effect after August 1, 2016. The Contract currently provides that the EDA will reimburse the Developer for up to $170,000 in Land Acquisition Costs for the Development Property from Available Tax Increment (as defined in the Contract), by issuing a pay -as- you -go tax increment revenue note ( "PAYG Note ") to the Developer upon receipt of evidence that the Developer has incurred the Land Acquisition Costs. Under the Contract, interest will accrue on the PAYG Note at a rate of 6.5 %. While the Developer has not provided the EDA with any certification of having incurred the Land Acquisition Costs, the Development Property is currently owned by the Developer, so it is clear the Developer has already incurred some level of qualified costs pursuant to the Contract. Therefore, the five -year rule has been satisfied as to those costs, because they meet requirement 94 above (costs have been incurred by a party within the 5 -year period). The Land Acquisition Costs are costs related to a qualified Subdivision 4j activity, so they meet the requirement that at least 90% of tax increment from the District must be expended on such activities. And because the TIF District was created during the window extending the deadline for the knock -down rule, the parcel making up the TIF District has not been knocked down. 2. Application of Legal Rules to Possible Contract Amendment The Developer has requested additional tax increment assistance in the form of an increased PAYG Note to reimburse additional qualified expenditures. Based on a preliminary analysis of projected increment resulting from the Developer's Proposed Project, Northland has determined that the Proposed Project could potentially generate up to $550,000 in gross tax increment over the full life of the TIF District. After adjusting for administrative fees and the required state auditor's deduction, a total of approximately $490,000 in net tax increment remains. This is enough to support a PAYG Note of approximately $337,000 at 3% interest, an increase of $167,000 in principal amount (please note, however, that if the interest rate on the additional assistance were to remain at 6.5 %, the increased amount of principal available to the Developer would be significantly less — this would be a potential point of negotiation). Applying the legal rules outlined above, and based on the projected increase in tax increment generated by the Proposed Project, the Contract could be amended to provide for increased assistance to the Developer, as long as certain conditions are met. First, any additional qualifying activities would be subject to the five -year rule. This means that the Developer would have to actually incur these costs prior to August 1, 2016, or would have to enter into a binding 364132v2 MNI MN190 -101 4 contract with a third party to perform qualified activities by that date in order to benefit fully from the increased increment generated by the Proposed Project. If this deadline is not met, any assistance to the Developer would be considered an outside - district expenditure and would be limited to a maximum of 25% of the increment generated, as described above. Furthermore, the additional assistance would be payable only for as long as the initial PAYG Note for Land Acquisition Costs is outstanding; once that initial PAYG Note is fully paid from the 75% in increment allocated to in- district expenditures, the City would be required to decertify the TIF District. Second, EDA staff would need to make the Developer aware of the requirement that any additional tax increment assistance must be used to reimburse Subdivision 4j activities described in Section A2 above, i.e., activities intended to correct the conditions that allowed the designation of the TIF District as a redevelopment district. If the Developer has already incurred costs to demolish existing structures or otherwise prepared the Development Property for construction, and can show evidence of those costs to the EDA, those activities would be eligible for reimbursement as Subdivision 4j activities and would also meet the five -year rule. Otherwise, the Developer would need to incur additional Subdivision 4j costs or enter into contracts to do so. Finally, the parties would need to verify the knock -down status of the parcel in the TIF District. In correspondence with the Wright County Auditor, Tammy Omdal of Northland was able to confirm that the parcel making up the TIF District has not been knocked down, since it qualifies for the temporary extended deadline. Based on this correspondence, it appears that the EDA and City would not be required to take any steps related to the knock -down rule at this time, but either the Developer or the EDA would need to perform some type of qualified activity on the Development Property by December 31, 2016 to prevent the knock -down rule from taking effect. C. Required Procedure for Approval of Amended Contract If the EDA determines that the Developer's Proposed Project is in the best interest of the City, that the Proposed Project would not be constructed but for the additional tax increment assistance requested by the Developer, and that EDA staff and consultants are authorized to move forward with an amendment of the Contract, several procedural steps will be required: - The EDA will work with Northland to more definitively determine how much tax increment may reasonably be expected to be generated by the Proposed Project, and will need to analyze the Developer's pro forma to determine the Developer's financing gap and the appropriate amount of increased tax increment assistance to offer. - Northland and K &G will create a modification to the tax increment financing plan for the TIF District to increase the authorized budget for the tax increment revenues expected to be generated. A public hearing will be required to approve the modification. - The EDA and Developer will need to negotiate an amended and restated Contract that outlines the Developer's new obligations, as well as the agreed amount of tan 364132v2 MNI MN190 -101 increment assistance available for qualified costs related to construction of the Proposed Project. Concurrently with modification of the TIF plan and negotiation of the Contract, the City will need to work with the Developer on appropriate zoning and land use approvals to allow for timely t of construction. The EDA and City should plan on allowing 60 -90 days to complete the process of amending the TIF plan and negotiating and drafting the Contract. Because the five -year rule will take effect after August 1, 2016, the parties should plan to work as quickly as possible to accomplish these procedural steps, to allow the Developer time to begin construction and to incur sufficient qualified costs by August 1. Northland prepared a model calendar for purposes of illustration in connection with the drafting of this memo, as follows: 3/9/201 EDA requests the City Council to call public hearing 4/2 City Council calls for public hearing 4/19/2016 Last day for written notice to county commissioner 5/1/2016 Proposed (draft) modified TIF Plan completed for distribution to city staff 5/14/2016 Last day modified plan and fiscal implications to County and School District 5/14/2016 First day to publish hearing notice 5/16/2 M Notice to newspaper 5/19/20163 Actual publication date 6/3/2016 Last day to publish hearing notice 6/8/20 EDA approves modification, subject to adoption by City Council 6/13/2016 Public hearing on modification; City Council adopts modification Amended Contract for Private Development approved by EDA 6/15/2016 Submit modified plan to County 7/6/2016 Submit modified plan to State 8/1/20161 Five year rule date = dates need to be reviewed and confirmed, these dates impact the other dates shown Many of these dates are based on statutory requirements in the TIF Act, and it is important to note that the overall time period between calling for the public hearing and the hearing itself is not changeable. In summary, upon review of the current status of the TIF District and Contract, and upon preliminary analysis of the projected increase in increment resulting from the Proposed Project, we conclude that the EDA and City could modify the tax increment financing plan for the TIF District and amend the Contract to allow the Developer to construct the Proposed Project and receive increased assistance. In order to meet the requirements of the five -year rule and maximize the level of increased assistance, the EDA, City, and Developer would need to finalize the procedural steps outline above and the Developer would need to incur additional qualified costs (or show evidence of sufficient qualified costs already incurred) prior to August 1, 2016. If this deadline was not met, some level of increased assistance would still be possible, but would be subject to the 25% outside - district spending limitation. 364132v2 MNI MN190 -101 Either Tammy Omdal of Northland or I would be happy to answer any questions about this memo. Tammy can be reached at (612) 851 -4964, and my direct line is (612) 337 -9231. 364132v2 MNI MN190 -101 Ehlers & Associates, Inc. Talc Increment Financing District Overview City of Monticello Tax Increment Financing District No, 1 -35 The following summary contains an overview of the basic elements of the Tax increment Financing PIan for TIF District No. 1 -35. More detailed information on each of these topics can be found in the complete TIF Plan. Proposed action: Establishment of Tax Increment Financing District No. 1 -35 (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Adoption of a Redevelopment Plan Modification for the Central Monticello Redevelopment Project No. 1. (The Modification is to include the project activities anticipated in the District.) Type of TIF District: A redevelopment district Parcel Numbers *: 155- 010 - 036011 ** 155- 010 -036010 ** 155 -010- 036030 ** *These parcels will be combined via an administrative lot combination by the City of Monticello **These parcels are "Knocked Down" parcels that are being removed from Tax Increment Financing District No. 1 -22 to be included in Tax Increment Financing District No. 1 -35. Proposed Development: The District is being created to facilitate construction of 11,000 s.£ of commercial space consisting of a restaurant, office and other uses in the City of Monticello. This project is being proposed by a local developer. The value of the new development is estimated to be $70 per s.f. plus land costs of approximately $230,000 for an esimated value of $1,000,000. The building will be completed in 2006 and the assistance of land acquisition, public improvements, site preparation, streets and sidewalks and utility costs will be funded on a pay- as -you- go basis at a rate of 6.5% TIF District Overview Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The date of receipt of the first tax increment will be approximately 2008. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2033, or when the TIF Plan is satisfied. Estimated annual tax Up to $17,014 increment: Proposed uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ............................................... $ 100,000 Site Improvements /Preparation ................... $35,000 ....................... Public Utilities .................................... ............................... $35,000 Parking Facilities ........... :................................................... $35,000 Streets and Sidewalks ......................... ............................... $10,000 Interest.............................................. ............................... $190,000 Administrative Costs (up to 10 %) .............. ........................ $45,000 TOTAL PROJECT COSTS ............... .............................45 See Subsection 2 -10, page 2 -6 of the TIF Plan for the full budget authorization. Additional uses of funds are authorized which include inter -fund loans and transfers and bonded indebtedness. Form of financing: Financing will be primarily by a pay -as- you -go (PAYG) note. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan Requirement: If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund must be passed PRIOR to the issuance of the check. 4 Year Activity Rule After four years from the date of certification of the District one of the (§ 469.176 Subd b) following activities must have been commenced on each parcel in the District: • Demolition Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) • If the activity has not been started by the approximately September, 2009, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. Page 2 TIF District Overview 5 Year Rule Within 5 years of certification revenues derived from tax increments ff 469.1763 Sub 3) must be expended or obligated to be expended. Tax increments are considered to have been expended on an activity within the District if one of the following occurs: • The revenues are actually paid to a third party with respect to the activity • Bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party, the revenues are spent to repay the bonds, and the proceeds of the bonds either are reasonably expected to be spent before the end of the later of (i) the five year period, or (ii) a reasonable temporary period within the meaning of the use of that term under §. 148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve or replacement fund • Binding contracts with a third party are entered into for performance of the activity and the revenues are spent under the contractual obligation • Costs with respect to the activity are paid and the revenues are spent to reimburse for payment of the costs, including interest on unreimbursed costs. Any obligations in the Tax Increment District made after approximately September, 2010, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd 3, are included in Exhibit A of the City Council Adopting Resolution. Page 3 TiF District Overview MAPS OF CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. I AND TAX INCREMENT FINANCING DISTRICT NO. 1-35 Page 4 .Mt-M A. Proposed Tax Incren...c Financing District No Central Monticello Redevelopment Project N City of Monticello Wright County, Minnesota Proposed Tax Increment Financing District No. 1 -35 District 1 -35 is a redevelopment TIF district. The Dis- trict was established to assist with the construction of 11,000 square foot commercial building. The District was created from parcels removed from District 1 -22. This approach established new time limits that con- strain use of increments in District 1 -22. The tax incre- ment from District 1 -35 is obligated to repay a $170,000 developer note at an interest rate of 6 %. The note will end at a date no later than 2/1/2023. Ninety percent (90 %) of annual tax increment is used to make pay- ment on the note. The District will be decertified no later than December 31, 2033. The development planned for District 1 -35 has not happened. Actions Taken Since 2009 Funds have been transferred into TIF District 1 -35 from TIF District 1 -22 to cover administrative expenses incurred for TIF 1 -35. Administrative Steps There are no outstanding administrative items Management Strategy The strategy for District 1 -35 focuses on using the ex- isting district to undertake redevelopment on this par- cel. The factors that allow the creation of a new re- development district have been removed. A new TIF district is not an option. Clearance of the site satisfied the criteria of the 4 -year knock down requirements. Management of this District benefits from 2009 amend- ments to the TTF Act. The limitations of the five -year rule are extended to ten years for the District. Obli- gations for the use of tax increments must now be in CityNumber .......... ............................... ............ ........................................... 1 -35 CountyNumber ............................................... ............... ........................... 635 Name ........................... ............................... .......................Landmark Square 11 Type.......................................................... ............................... Redevelopment Established...................................... ............................... ........................9 /12/05 Certification Requested .................................... .............................12 /29/05 Certified..................................................................... ............................... 8/1/06 Year of First Increment ................... ............................... ...........................2008 4-Year Knockdown 8/1/12 5-Year Rule ................................................................. ..............................8 /1/16 Decertification .......................... ............................... ..........................12 /31 /33 Original Tax Rate ....................... ............................... ........................110.297% Original Tax Capacity Value .......... ............................... ..........................3,409 Current Base Tax Capacity Value ............................... ..........................6,068 Current (Pay 2012) Tax Capacity . ............................... ..........................2,962 Parcels.................................................................................... ............................... l 155- 010 - 036030 place by August 1, 2016. The financial implications and options for this District cannot be fully analyzed until development occurs. District Summary District 1 -35 (Landmark Square II) Redevelopment 43 Lots 1 -3, Block 36, Original Plat Monticello, 155 - 010 - 036030 Created by: City of Monticello I 4kb O 0 ! "a } ! 4p ! 7� / i Aof 4 4 go VIP #+! Concept: Master's Fifth Avenue, Inc. is applying for a Conditional Use Permit for a change of use at the property at 213 3RD ST W. This will change the zoning from CCD District to a residential overlay in the CCD District to accommodate plans for Landmark II, a 23 unit apartment building that will lease to residents who are in the 55 year old and older category. This is in compliance with Chapter 3 of the Zoning code, Section 3.7 Overlay Zoning Districts, Subsection (j) CCD Residential Overlay District. Background for Landmark II: According to the stated policy of Monticello, a mix of uses in the Downtown is desirable. Currently there is big box retail, small space retail, office, single family housing, multi - family housing, and commercial entities. These functions all work together to support a healthy interactive economic system. Landmark II is a 23 unit apartment three story building with 16 garages and adequate parking that is designed for 55 year old and older residents. These are residents who want to live within walking distance of shopping, restaurants, parks, employment, and community activities. Adding this group of people to the Downtown increases the diversity of our city, increases the number of civic contributors, and provides instant consumers for businesses. Landmark II contributes to an atmosphere that encourages people to move, work and stay in Monticello. Action by the City to support this project will send a clear signal that the market in Downtown Monticello is thriving and that it is a great place to live, work, and play. This project will comply with the conditions established by the city comprehensive plan. It is anticipated that it will increase property values, add to the safety of the area, create positive traffic, encourage other development, and be an aesthetically pleasing addition to this area. �� ODD BUILDING UNIT MIX UNIT BY TYPE TOTAL S.F. %YPE "All (1 BED, 3 4as/l. SF 'AJ" lfl BED,) 1 438 5F 3y, M BATH "111 I BED BATH) 4 1,12 BF (2 BED 926 5F 2 BATH) 22 BRED, 2 1,044 sr "D" (2 BED, 2 BATH) 3 894 SF 517 "E" 12 BED 2 BAT. a 1,040 sp "F" (2 BEE) 2 BATH) 2 1.124 SP TOTAL 23 ALLEY r-F -o 0 *_; TYR PARKING STALL 14 GARAGE 8 PARKING STALLS 34 TOTAL DRIVE LANE PARKING SPACES ------------ cp DS CA DS A Lu . . . . . . . . . . . . . . . . . . 0— A Z — — --------- JIL- PROPOSED: W 3 STORY 23 UNIT (APARTMENT BUILDIN 0 -M -lpmmlw� - r It G -78409 SF. 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AND gOfTOX OE WALL AB { — AS AT ALL —.B • CORNERS Ax0 AROUND ALL A. o00RB "Y" 1' POURED VAP M6. OR BARR .IE, !� CPS. 10 REINPORGIXG ' GRANULAR PEL STRUCT PLANS COMPACTED BABE FY ISOLATION lONT O/ -q MM. RIGID M6UL. GYP -CRETE I ... RLATMEXT ;/1' 08g BUBPLOOR � PROVIDE PLABWNG, AS REQUIRED --0 FLOOR TRUSSES - BEE STRUCT. P -AN9 EiYEP N ® A NBN.AT ON RIM 1-T SPACE T� i. E DOUBLE 70P PLATE � Y — P TYPICAL T- -OUT 6/e GYP— SHEATHING R]IPBATTUiNS— A 04, -- -- PACE STONE CAP _L _ al r�i��%E PACED PROVIDE EP HOLE.S E A A. S REG'0. 5' oRWp PILL AS TT M! �nl ORB', BOND eEAn L� -1 i]- CONC. BLOCK qq A R -R mu. INSUL. g I I I d Y -O' I I I I I I I GG I III °g I NORTH ELEVATION -1.1 ve- • I -a SOUTH ELEVATION THIRD AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT This agreement is made as of December _9, 2015, by and between the CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY, a public body politic and corporate (the "EDA ") and MASTERS FIFTH AVENUE, INC., a Minnesota corporation (the "Developer "). WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello ( "HRA ") and Developer entered into that certain Contract for Private Development dated September 7, 2005, as amended by an Amendment thereto dated as of June 7, 2006 and a Second Amendment thereto dated as of December 18, 2007 (as so amended, the "Contract ") providing, among other things, for the construction of an approximately 11,000 square foot retail center, with associated parking, known as Landmark Square II (the "Minimum Improvements ") on the property legally described within the Contract (the "Development Property ") within the City of Monticello (the "City "); and WHEREAS, the City Council of the City has taken the necessary steps to allocate all powers and projects of the HRA to the EDA, and the HRA, by its Resolution No. 2007 -085, dated October 22nd, 2008, has transferred and assigned to the EDA all outstanding contracts to which the HRA_ is a party, including the Contract; and WHEREAS, the Developer has requested and the EDA has determined to extend the dates of commencement and completion of construction of the Minimum Improvements described in the Contract. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Section 3.4(a) of the Contract is amended as follows: (a) Subject to the terms and conditions of this agreement, the Land Acquisition Costs will be reimbursed to the Developer with simple interest thereon 6.50% per annum, interest commencing to accrue on the date that the Developer complies with the cost certification requirement described in paragraph (f) of this Section. The Land Acquisition Costs will be reimbursed by the Authority to the Developer in semi - annual installments payable on each February 1 and August 1 ( "Payment Dates ") commencing August 1, 2022 and concluding no later than the Termination Date. These payments will be made from Available Tax Increment as defined in this Section 3.4 and from no other source. 2. Section 4.3 of the Contract is amended as follows: (c) Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Minimum Improvements by November 1, 2020. Subject to Unavoidable Delays, the Developer shall complete the construction of the Minimum Improvements by December 31, 2021. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans as submitted by the Developer and approved by the Authority. 471894A MNIMN190 -115 3. Miscellaneous. Except as amended by this Amendment, the Contract shall remain in full force and effect. Upon execution, the Developer shall reimburse the EDA for all out -of pocket - costs incurred by the EDA in connection with negotiating, drafting and approval of this Amendment. (The remainder of this page is intentionally left blank.) 4718941 MNI MN 190 -115 Dated this 9th day of December, 2015. Masters Fifth Avenue, Inc. City of Monticello Economic Development Authority By: B. 3 0 . Its Its President By: Its E Director 4718940 MNI MN 190-115 EDA Agenda: 03/09/16 11. Consideration to approve a Financial Planning Agreement with Northland Securities for 2016 Update of the City /EDA TIF Management Plan (AS) A. REFERENCE AND BACKGROUND: The EDA is asked to approve an update to the 2012 TIF Management Plan for the City and EDA. The TIF Management Plan is used by the City, EDA and staff to understand the structure, financial status, and recommended actions or management strategies associated with each district. Since 2012, a number of actions and activities have occurred which necessitate the update, including decertifications, modifications, and interfund loan actions. An updated management plan will provide an update on these actions, as well as provide financial projections and strategy suggestions for each district, and tax increment use overall. Al. Budget Impact: Northland's scope indicates a cost of $7,000. The update to the TIF Management Plan was identified in budget planning for 2016 and is included in the budgeted amount of $10,000 allocated to Miscellaneous Professional Services. A2. Staff Workload Impact: Staff communication and support to Northland Securities will occur throughout the plan update process. A. STAFF RECOMMENDATION: Staff recommends Alternative 91 above. The TIF Management Plan is an important resource document for understanding the City's use and management of its TIF Districts. B. ALTERNATIVE ACTIONS: Motion to approve a Financial Services Agreement with Northland Securities for 2016 Update of the City /EDA TIF Management Plan. 2. Motion to deny approval of a Financial Services Agreement with Northland Securities for 2016 Update of the City /EDA TIF Management Plan. 3. Motion to table this item for additional information. C. SUPPORTING DATA: Project Scope, Northland Securities FINANCIAL PLANNING AGREEMENT BY AND BETWEEN MONTICELLO (MN) ECONOMIC DEVELOPMENT AUTHORITY AND NORTHLAND SECURITIES, INC. TIF MANAGEMENT PLAN UPDATE This Agreement made and entered into by and between the Economic Development Authority for the City of Monticello, Minnesota (hereinafter "EDA ") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI "). WITNESSETH WHEREAS, the EDA desires to use the services of NSI for financial planning assistance related to updating the 2012 Tax Increment Financing (TIF) Management Plan for the City of Monticello and preparing a 2016 TIF Management Plan (the "Project "). WHEREAS, the Project is intended solely for financial planning and NSI is not providing advice on the timing, terms, structure or similar matters related to a specific bond issue. WHEREAS, NSI desires to furnish services to the EDA as hereinafter described, NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NSI Our proposed approach is based on the following objectives for the Project: 1. Update the Plan to account for changes in the use of each TIF district and the addition of any new or modified TIF districts. 2. Prepare new projections using current financial information. 3. Explore ways to use tax increments to meet local objectives, including implementation of initiatives from the EDA's downtown plan. 4. Update out -dated sections of the 2012 plan document, including legislative changes and interpretations from the Office of the State Auditor. 5. Determine if other changes in the document are needed to make it more useful for city staff and the EDA. To achieve these objectives, Northland will perform the following tasks: NSI Agreement for 2016 TIF Management Plan—Monticello Page 1 1. Conduct "kick off" meeting with city staff to review objectives, set key dates and collect data. An important discussion item for this meeting will be details of new TIF initiatives to consider through this process. The preliminary data needs include: a. Cash balances and fund balances for each district as of December 31, 2015 b. Pay 2016 parcel data (EDA may direct NSI to obtain from Wright County) c. Pay 2016 tax rates d. Fiscal Year End 2014 Annual Reporting Forms submitted to the Office of the State Auditor 2. Review data and collect additional data as needed to complete update objectives. 3. Update the financial projections, including expense /revenue and balance sheet for each TIF district. 4. Explore ways to accomplish initiatives identified by the EDA. 5. Prepare updated management strategies for each district. 6. Prepare matrix of key items for each district for City to use after project is completed for on -going TIF management. 7. Meet with city staff to present and discuss findings and recommendations. 8. Conduct additional analysis and investigations (as needed) to follow up on items from city staff review. 9. Prepare draft of 2016 TIF Management Plan (the "Plan'). 10. Submit draft for city staff review and comment. 11. Prepare draft Plan for EDA review. 12. Meet with EDA to present and discuss proposed update of Plan. 13. Address feedback from EDA and prepare final Plan document. COMPENSATION NSI will perform all services necessary to complete the work described in this letter at a cost not to exceed $7,000. Northland will bill on a monthly basis for services performed and actual reimbursable expenses (travel, publication, printing and mailing). Staff time will be billed at a rate of $170 per hour. ASSIGINED NORTHLAND EMPLOYEE The NSI employee directly responsible for providing services pursuant to this agreement and for the services performed is Tammy Omdal. NSI Agreement for 2016 TIF Management Plan—Monticello Page 2 SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the EDA and NSI and their successors or assigns. DISCLAIMER In performing service under this agreement, NSI is relying on the accuracy of information provided by the developer and the EDA and the services provided by Northland are based on current State Law. The parties agree that the Minnesota property tax system and other laws may change and may affect the accuracy and validity of services provided by NSI. NSI will perform its work using the best available information. The EDA recognizes and accepts that future property values, tax levies and tax rates may vary from the assumptions used by NSI and such changes may affect the work product produced and provided by NSI. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the EDA or NSI. In the event of early termination by the EDA, NSI shall provide the EDA with an itemized hourly statement of services already provided. All billable hours by NSI shall be billed at the stated hourly rates should early termination occur. Dated this _ day of 2016. Northland Securities, Inc. Los John R. Fifield, Jr. - Sr. Vice President Monticello EDA In Title NSI Agreement for 2016 TIF Management Plan—Monticello Page 3 EDA Agenda: 03/09/2016 12. Consideration of a recommendation on a monthly stipend for non - council members of the Economic Development Authority (AS) A. REFERENCE AND BACKGROUND: The EDA is asked to consider a recommendation regarding a $50 monthly stipend for non - council members of the Economic Development Authority (EDA). At a recent council meeting, Councilmember Posusta requested the Personal Committee review the compensation for both the Planning Commission and EDA. The Personnel Committee recently reviewed the compensation for both the Planning Commission and EDA and based on the information provided recommends compensating non - council EDA members $50 per month. The EDA's attorney has indicated that a stipend does not conflict with the provisions of the EDA Act. Al. Budget Impact: The estimated cost is $3000 per year. Funds are available within the EDA budget to support the stipend. B. ALTERNATIVE ACTIONS: 1. Motion to recommend to the Council a $50 monthly stipend for non - council members of the Economic Development Authority. 2. Motion to recommend no monthly stipend for non - council members of the Economic Development Authority. C. STAFF RECOMMENDATION: Staff defers to the EDA on this matter. D. SUPPORTING DATA: None EDA Agenda: 03/09/16 13. Consideration of Director's Report (JO /AS) Economic Development Manager Position City staff will be interviewing the first round of candidates for the Economic Development Manager position. A notice for second interviews will be sent to the EDA for attendance. 349 West Broadway Update WSB & Associates has completed the Asbestos and Limited Regulated Materials Survey for this site. WSB Environmental Scientist will be attending the EDA meeting on April 13th to answer any questions associated with this report. Environmental — Block 34 Ryan Spencer of WSB & Associates will be in attendance at the EDA meeting on April 13th to provide an overview of the environmental study completed on Block 34 and an update on the status of remaining environmental considerations and /or clean-up. Interchange Land Use Study The draft Interchange Land Use Study was presented to the IEDC and Planning Commission the week of February 29th. Comments were requested from both bodies for purposes of finalizing the document for acceptance. A link to the draft document can be found by visiting the City's website and clicking on the Planning Commission page. The EDA is more than welcome to comment on the study, as well. Comments are requested no later than March 15th, 2016. Market Matching Services Market Matching will be presenting the EDA will a revised scope of services at the April EDA meeting. The EDA should note that budgeted funds are only available in the amount of $12,000 for Market Matching services in 2016. This amount anticipated the hire of an economic development staff person and the re- evaluation of Market Matching services. EDA Agenda: 03/09/16 14. Consideration of recessing to closed session to determine the asking price for real or personal property to be sold by the City pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(1)