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EDA Agenda 11-18-2015EDA MEETING Wednesday, November 18th, 2015 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN 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 & Assoc. 1. Call to Order. 2. Roll Call. 3. Approve Meeting Minutes: a. Regular Meeting — July 8th, 2015 (to be provided) b. Special Meeting — July 22nd, 2015 (to be provided) c. Regular Meeting — August 12th, 2015 (included in packet) d. Special Meeting — August 12th, 2015 (included in packet) e. Regular Meeting — October 14th, 2015 (included in packet) 4. Consideration of additional agenda items. 5. Consideration of approving payment of bills. 6. Consideration of Market Matching report. 7. Consideration of an update on properties for sale. 8. Consideration to approve a License Agreement between the EDA and the City of Monticello for use of 201 and 249 East Broadway and a portion of 100 East Broadway for City Project 100009 /Intersection of CSAH 75 /TH 25. 9. Consideration of an update on the status and job description for the Economic Development staff position. 10. Consideration of Director's Report. 11. 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(3)(c)(3). 12. Adjourn closed session 13. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 8, 2015, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault Absent: Lloyd Hilgart Others: Angela Schumann, Jeff O'Neill, Wayne Oberg Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call Demeules called the roll. Lloyd Hilgart was absent. 3. Approval Meeting Minutes a. Regular Meeting —June 10th, 2015 BILL TAPPER MOVED TO APPROVE THE JUNE 10TH, 2015 REGULAR EDA MEETING MINUTES AS CORRECTED. TRACY HINZ SECONDED THE b. Special Meeting — May 26thth, 2015 TOM PERRAULT MOVED TO APPROVE THE MAY 26TH, 2015 SPECIAL EDA MEETING MINUTES. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. Regular Meeting — May 13th, 2015 TRACY HINZ MOVED TO APPROVE THE MAY 13TH, 2015 REGULAR EDA MEETING MINUTES AS CORRECTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. d. Regular Meeting — April 8th, 2015 Steve Johnson commented on several administrative procedures. He requested that information be provided in advance of meetings, that documents added during a meeting be posted to the City's website and that meeting minutes reference documents added to the agenda and issues which require follow -up. EDA Minutes: 07/08/15 Wayne Oberg indicated that he does his best to get information to stakeholders as soon as it is available. He noted that he generally produces data the same day that it is presented. He explained that he has been ironing out past reporting issues in some of the TIF districts. Schumann explained that documents distributed at a meeting are included in the official record maintained by the City Clerk but are not posted on the website at this time. Jeff O'Neill suggested that staff update the online agenda packet in future. Johnson asked about follow up related to the request tabled by the EDA in April that some $200,000 in TIF 1 -22 excess increment be redirected to the EDA. Schumann explained that the request was to be brought forward as part of budget discussions. She suggested that the EDA may wish to discuss the policy questions involved and make a formal recommendation. Oberg distributed a worksheet detailing TIF 1 -37 and provided an overview of the report. He described the review process involved in his analysis. He said that there would be no excess increment within this district. Johnson also asked if staff had followed up on his question about whether a minimum tax valuation had been established for a particular TIF district, and if the information had been passed along to the County assessor. Oberg summarized that that Ryan Companies had challenged the tax valuation on TIF 1 -34 and had it reduced. He suggested that it is unlikely that the EDA would generate increment to pay off the negative fund balance in the district. Oberg indicated that the City would absorb the deficit once the district expires. Schumann added that TIF 1 -34 is a renovation and renewal district established to fund I -94 interchange improvements. The EDA's attorney had determined that no minimum valuation had been established by contract or assessment agreement with private developers in the district. STEVE JOHNSON MOVED TO TABLE ACTION ON THE APRIL 8TH REGULAR MEETING MINUTES; AND DIRECT STAFF TO REVISE THE MINUTES TO INCLUDE ADDITIONAL INFORMATION FOR EDA CONSIDERATION. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. Special Meeting — April 8th, 2015 BILL TAPPER MOVED TO APPROVE THE APRIL 8TU, 2015 SPECIAL REGULAR EDA MEETING MINUTES. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 6 -0. EDA Minutes: 07/08/15 4. Consideration of adding items to the agenda None 5. Consideration of approving payment of bills TRACY HINZ MOVED TO APPROVE PAYMENT OF BILLS THROUGH JUNE 2015. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6 -0. 6. Consideration of Market Matching Report WSB's John Uphoff reported that he'd distributed Monticello's Community Profile and market information about available properties at several recent meetings and events. The Community Profile was exhibited at the Economic Development Association of Minnesota conference and was recognized by MN DEED representatives as one of the best in the upper Midwest. Uphoff indicated that this places Monticello in the center of the state's direct marketing efforts with site selectors in specialized sectors. Uphoff said that he has been presenting information related to Block 34 as part of networking activities with commercial developers. He indicated a willingness to assist in preparing an RFP for Block 34 if so directed. He noted that he has also been networking with several fairly large scale residential developers hoping to generate interest in pre - platted areas and address the lot absorption rate. 7. Consideration of an update and approval of expenses related to environmental study costs for the EDA -owned property at 100 East Broadway Schumann summarized that the EDA is asked to fund costs associated with additional soil boring(s), environmental testing, and coordination services related to contamination found during property demolition at 100 East Broadway. This action would address the Minnesota Pollution Control Agency (MPCA) recommendation to determine the parameters of the contamination and enable MnDOT to accept property for right of way conveyance related to the construction of the TH 25 /CSAH 75 intersection project. The location of the additional soil boring(s) has not yet been determined. The MPCA had recommended that a soil boring be taken on the property to the south (Finder's Keepers). The owner of that property, however, has not consented to allow a soil boring. Schumann indicated that it may be acceptable to conduct soil boring(s) south of the original borings on public property to the east and west. Schumann agreed to find out if a similar contaminant had been found during the environmental cleanup at the TDS site. BILL TAPPER MOVED TO APPROVE AN EXPENSE OF UP TO $5,000 RELATED TO ADDITIONAL INVESTIGATION AS REQUIRED BY THE MPCA FOR COMPLETION OF THE LSI AS RELATED TO THE EDA -OWNED PROPERTY AT EDA Minutes: 07/08/15 100 EAST BROADWAY. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 8. Consideration to approve contract for July 2015 — June 2016 month -to -month Market Matching Services Schumann summarized that the EDA had voted to continue Market Matching services on a month -to -month basis. The revised contract presented includes the current core services and adds provisions for a monthly economic development e -news and Market Matching activity updates at monthly EDA meetings. WSB also added a 30 day notice of termination clause. The contract will continue at the current $4,000 monthly rate. This expense is included through 2015 within the EDA's General Fund budget. BILL TAPPER MOVED TO APPROVE THE MONTH -TO -MONTH CONTRACT FOR MARKET MATCHING SERVICES WITH WSB & ASSOCIATES AS PREPARED. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6- 0. 9. Consideration to set a ioint EDA /City Council work session for purposes of EDA/HRA Lew discussions STEVE JOHNSON MOVED TO CALL FOR A SPECIAL MEETING OF THE EDA ON JULY 22ND, 2015 AT 4:30 PM FOR PURPOSES OF EDA AND HRA LEVY DISCUSSIONS. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 6- 0. 10. Economic Development Director's Report Schumann provided updates related to the economic development position, property for sale, the Hospitality Study and TIF training. Jeff O'Neill reported on the MN Public Utilities Commission's decision to cap the solar garden project size at 5 megawatts. 11. Adjournment BILL TAPPER MOVED TO ADJOURN THE MEETING AT 7:20 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 6 -0. Recorder: Kerry Burri Approved: Attest: EDA Representative 4 MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, July 22, 2015 — 4:30 PM, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault Absent: Lloyd Hilgart Others: Angela Schumann, Jeff O'Neill, Wayne Oberg Call to Order Bill Demeules called the meeting to order at 4:30 p.m. 2. Roll Call Demeules called the roll. Lloyd Hilgart was not present. 3. EDA \HRA Lew Demeules noted that the purpose of the meeting is to discuss the EDA/HRA levy. Angela Schumann added that this discussion would enable the EDA to begin to formulate a levy recommendation for City Council consideration by the September 15th levy filing deadline. Schumann provided a brief overview of each type of levy and responded to questions and comments. She recommended that the commissioners refer to the Kennedy & Graven memo included in the agenda packet for more detailed information about how the levies function and the process involved in establishing a levy. Schumann explained that a HRA levy is to be used for housing and redevelopment activities. She pointed out that most cities that have established a HRA levy, however, use it to fund all of their economic development needs. Schumann said that Wayne Oberg prefers that the EDA establish a HRA levy and recommends that the levy be used to fund the EDA's annual operating expenses. Schumann also mentioned that Oberg had suggested that a HRA levy would have a relatively small impact on individual homes. There was considerable discussion about the extent to which the EDA should intervene to enable downtown redevelopment. There were comments related to the need to level the playing field to prompt development when the market does not seem to be driving development. There was also much discussion about how to frame the recommendation to levy so that Special EDA Minutes: 07/22/15 it establishes the need for funding as well as the benefit of funding. Schumann pointed out that the EDA could opt to levy for the cost of annual operating expenses only or opt to levy for operating expenses and the estimated cost of economic development priorities identified in the workplan. She noted that the EDA also has the option of recommending both an EDA and an HRA levy to address funding needs. Schumann agreed to provide additional information in an effort to help the EDA determine and prepare its levy recommendation. The information requested includes budget estimates pertaining to redevelopment project priorities, existing and anticipated resources, expected shortfall, and options to address the funding gap. STEVE JOHNSON MOVED TO DIRECT STAFF TO PREPARE ITEMS 1 -5 FOR REVIEW AT A 4:30 PM SPECIAL MEETING (WORKSHOP) PRIOR TO THE AUGUST 12TH 2015 EDA MEETING. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 5 -0. (Bill Tapper was not present to vote.) 4. Adiourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 6:07 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. (Bill Tapper was not present to vote.) Recorder: Kerry Burri Approved: Attest: Angela Schumann, Community Development Director 2 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, August 12, 2015, Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: None Others: Angela Schumann, Jeff O'Neill, Wayne Oberg 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll CaII Demeules called the roll. All commissioners were present. 3. Approval of Minutes Bill Demeules indicated that the following meeting minutes would be included with the September agenda. a. Regular Meeting - April Sth, 2015 b. Regular Meeting - July 8th, 2015 c. Special Meeting - July 22nd, 2015 4. Consideration of adding items to the agenda None 5. Consideration of approving payment of bills Tracy Hinz asked for information related to the $12,000 expenditure for return of excess TIF payment. Angela Schumann agreed to report back with a response. BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS THROUGH JULY 2015. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7-0. 6. Consideration of Market Matching report WSB's John Uphoff reported the following Market Matching activities: • Met with industrial developer Grady Kinghom • Met with prospect regarding leasing space for light industrial business expansion • Responding to Greater MSP's RFI related to a 10-20 acre site for a bio -tech firm EDA Minutes: 08/12/15 • Reached out to Director of Operations at David Weekly Homes • Marketing industrial properties and certified shovel ready sites through magazine • Followed up with prospects for Cedar Street Garden and Fred's Auto properties • Preparing MN DEED Familiarization Tour • Attended Midwest Chapter of CoreNet Global annual meeting • Provided commercial and industrial data for local broker 7. Consideration to adopt Resolution #EDA -2015-007 approve final payment to Veit & Company, Inc. for abatement and demolition services at 100 East Broadway Angela Schumann reported that WSB reviewed the contract and completed work for the abatement and demolition of 100 East Broadway and recommended final payment to Veit & Company, Inc. in the amount of $2,635.30. Veit & Company provided final project paperwork and completed the repair of the parking lot on the adjacent property to the satisfaction of the property owner. BILL TAPPER MOVED TO ADOPT RESOLUTION #EDA -2015-007 APPROVING A 10% PAYMENT OF $2,625.30 TO VEIT & COMPANY, INC. FOR ABATEMENT AND DEMOLITION SERVICES AT 100 EAST BROADWAY. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7-0. S. Consideration of approving funding for 2015 Industry of Year/MN Manufacturer's Week activities TRACY HINZ MOVED TO APPROVE FUNDING FOR THE 2015 INDUSTRY OF THE YEAR EVENT. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7-0. 9. Consideration to set a ioint EDA/City Council work session for purposes of EDA/HRA Levy and budget discussions TRACY HINZ MOVED TO CALL FOR A SPECIAL MEETING OF THE EDA ON AUGUST 24TH, 2015 AT 5:30 PM FOR PURPOSES OF EDA AND HRA LEVY DISCUSSIONS, AND TO REQUEST ATTENDANCE OF THE CITY COUNCIL. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7-0. 10. Consideration of a recommendation regarding a proposed EDA staff position for 2016 Schumann presented rationale for re-establishing the economic development staff position eliminated in August of 2012. She explained that activities have been delayed and response times increased as a result of limited staff time and resources available to address economic development. She pointed out that hiring a dedicated economic development professional would result in improved management of the day to day operational workload and proactive efforts toward addressing the strategic initiatives identified in the EDA workplan. Schumann indicated that EDA small group appointees Lloyd Hilgart and Jim Davidson support re-establishing an economic development position based on an in- depth review of the proposal. The $48,000 budgeted for Market Matching would be reallocated to cover a portion of the cost of funding the staff position. Tom Perrault indicated that he would vote against the proposal because he thought that, if the City hires a Business Manager for FiberNet, Communications Coordinator Rachel Leonard would have time to fill some of the voids related to communication, once she has transitioned from her current role at FiberNet. Schumann suggested that there is ample workload to justify both positions. BILL TAPPER MOVED TO RECOMMEND TO THE CITY COUNCIL THAT THE CITY PROCEED WITH ESTABLISHMENT AND HIRING OF A FULL-TIME EDA STAFF POSITION FOR 2016. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 6-1 WITH TOM PERRAULT VOTING IN OPPOSITION. 11. Consideration of an update on amendments to the Small Cities Economic Development Set -Aside Revolving Loan Fund Guidelines Schumann summarized a series of amendments to the Small Cities Economic Development Set -Aside Revolving Loan Fund guidelines based on discussion with MN DEED. The amendments include a clarification to compliance requirements, revised language related to public-private financing and a reference to federal guidelines. Schumann pointed out that the guidelines for application do not require EDA approval. Final amendments will be considered by the City Council. Schumann said that she would look into redirecting legal fees to Council as it administers the funding for this program. 12. Consideration of direction regarding available pooled housing increment, Monticello Tax Increment Financing District 1-22 Schumann summarized that the EDA has the option of pooling an additional 10% of tax increment within TIF 1-22 to fund a qualified housing project within the redevelopment area. She noted that this would generate $345,000 over the life of the district. Schumann indicated that she would confirm that the EDA would be able to capitalize the annual revenue through an interfund TIF loan. She also said that she would confirm that the pooled funds would be available to use for this purpose after the district decertifies. BILL TAPPER MOVED TO DIRECT EDA STAFF AND FINANCIAL CONSULTANTS TO BEGIN THE MODIFICATION OF TIF DISTRICT 1-22 AS RELATED TO THE ESTABLISHMENT OF A 10% POOLING ALLOWANCE FOR HOUSING. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7-0. 13. Economic Development Report Schumann responded to questions and provided further details related to updates involving Landmark Square II/TIF 1-35 and the TH 25/CSAH 75 preliminary schedule. 14. Adiournment BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:55 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7-0. Recorder: Kerry Burri Approved: Attest: EDA Representative 4 MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, August 12, 2015, 4:30 PM - Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: None Others: Angela Schumann, Jeff O'Neill, Wayne Oberg Call to Order Bill Demeules called the special meeting to order at 4:30 p.m. 2. Roll Call Bill Demeules called the roll. All EDA commissioners were present. 3. Purpose The purpose of the special meeting is to discuss the option of recommending an EDA/HRA Levy. Angela Schumann pointed out that the Wright County deadline to file a levy is September 15th. She proposed that the EDA invite City Council input at a joint meeting on August 24th and plan to recommend action at the September 9th EDA meeting. This schedule would enable Council to make a levy decision at its September 14th meeting. Schumann explained that the EDA had requested additional information related to various financial considerations to help frame the levy discussion in preparation for the workshop with the City Council. She provided some level of detail related to each area and responded to questions. Schumann reported that Block 34 has cost $1,713,000 to -date. Schumann estimated that it would cost $1,793,000 to acquire and control four additional parcels. The total Block 34 cost is estimated to be $3,400,000. Schumann also estimated $2,306,600 for Block 35, $1,565,500 for Block 52, and $757,600 for Block 53, based on CMV acquisition costs. Schumann outlined the proposed 2016 EDA operating budget. She explained that the $140,000 budget would fund the EDA Director position, additional staff training, limited funding for Market Matching, and the TIF Management Plan. Schumann provided an overview of existing financial resources. She noted increment generated in TIF Districts 1 -30 and 1 -39 and interest earnings on the GMEF balance. She mentioned that revenue generated through the farm lease is offset by the taxes paid on the Special EDA Minutes: 08/12/15 land farmed. Schumann explained that the EDA has a total of $2,500,000 available including the General Fund balance, increment from TIF 1 -6, and cash flow from TIF 1 -22. She pointed out that this revenue will fund operations through 2022. There was much discussion related to how to summarize funding limitations. Schumann pointed out that the cash flow analysis presented includes $3,224,000 in land held for resale and TIF funding subject to housing expenditure restrictions. She proposed listing these resources separately so that the cash flow projection more clearly identifies funding actually available. She also suggested listing land that the EDA wants to sell separately. There was some discussion about the various benefits of establishing a levy. There seemed to be general agreement that a levy would enable the EDA to achieve its goals. Schumann explained that the City Council would retain oversight and approvals related to the EDA budget, modifying TIF districts, and EDA workplan ratification. She suggested that the EDA may wish to provide further accountability by formalizing joint meetings related to the purchase or sale of property and providing a year -end EDA activities report subject to Council approval. 4. Adiournment BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 5:52 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Burn Approved: Attest: Angela Schumann, Community & Economic Development Director 2 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, October 141, 2015 - Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: None Others: Angela Schumann, Jeff O'Neill, Wayne Oberg (Fall to Order Bill Demeules called the meeting to order at 6 p.m. 2. Roll Call Bill Demeules called the roll. All commissioners were present. 3. Approval of Minutes BILL TAPPER MOVED TO APPROVE THE APRIL 8TH, 2015 REGULAR MEETING MINUTES AS CORRECTED. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. TOM PERRAULT MOVED TO TABLE ACTION ON THE JULY 8TH, 2015 REGULAR MEETING MINUTES, THE JULY 22ND, 2015 SPECIAL MEETING MINUTES, THE AUGUST 12TH, 2015 REGULAR MEETING MINUTES AND THE AUGUST 12TH, 2015 SPECIAL MEETING MINUTES AS THESE WERE NOT YET AVAILABLE FOR CONSIDERATION. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. BILL TAPPER MOVED TO APPROVE THE AUGUST 24TH, 2015, SPECIAL MEETING MINUTES. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. BILL TAPPER MOVED TO APPROVE THE SEPTEMBER 9TH, 2015 REGULAR MEETING MINUTES AS CORRECTED. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. 4. Consideration of adding items to the agenda • Reschedule EDA Meeting • City Use of EDA Property EDA Minutes: 10/14/15 5. Consideration of approving payment of bills BILL TAPPER MOVED TO APPROVE PAYMENT OF BILLS THROUGH SEPTEMBER 2015. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 7 -0. 6. Consideration of Market Matching report WSB consultant John Uphoff reported on the following Market Matching activities: • Wright County Economic Development Partnership (WCEDP) State of the Cities Meeting — Monticello is experiencing moderate growth in the residential and commercial sectors. Industrial sector growth has lagged throughout the county. • MN DEED Familiarization Tour — Monticello`s profile and market data reports were distributed to site selectors, including those working with Fortune 500 clients. • Hotel Market Study Response — Three hotel developers engaged in early discussions. WSB organized a pre - development meeting with a developer. The developer has since discussed project parameters with investors. 7. Consideration to adopt Resolution EDA- 2015 -010 for the modification of Tax Increment Financing District No. 1 -22 as related to tax increment pooling for housing Angela Schumann recommended that the EDA modify the TIF 1 -22 Plan in order to capture the additional 10% of pooled housing increment allowable. She explained that doing so would enable the EDA to borrow against an estimated $345,000 in future increment if it has committed to funding a qualified housing project before decertification of the district in 2024. TRACY HINZ MOVED TO ADOPT RESOLUTION EDA -2015 -010 APPROVING MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 1 -22. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. 8. Consideration of authorizing a 2016 contribution to the Initiative Foundation BILL TAPPER MOVED TO APPROVE CONTRIBUTING $2,300 OF THE 2016 EDA GENERAL FUND TO THE INITIATIVE FOUNDATION. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 6 -1 WITH TOM PERRAULT VOTING IN OPPOSITION. Tom Perrault voted in opposition because there was no fund matching commitment. 9. Consideration of review and action as related to TIF 1 -35 Angela Schumann explained that TIF 1 -35 involves a parcel located at 3rd and Locust which was to be developed as a retail commercial project. The district was created to generate increment to reimburse the developer for land acquisition costs. The contract for private EDA Minutes: 10/14/15 redevelopment had been amended twice to delay the start of the project and minimum improvement dates. The knock down requirement and five -year rule have been met. The tax increment has been obligated but has not yet been generated. Schumann said that she would verify that a change to the scope or nature of the development would not impact the obligation created to satisfy the three -year window requirement. Barry Fluth introduced himself as President of Masters 5th Avenue, Inc. and owner of the property. He explained that he had explored retail\housing, daycare and office options over the years in an effort to develop the property. Fluth indicated that he is open to ideas. BILL TAPPER MOVED TO TABLE THIS ITEM AND TO DIRECT STAFF TO RESEARCH ADDITIONAL OPTIONS WITH THE DEVELOPER AND THE EDA ATTORNEY. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. 10. Consideration to set dates for 2016 goal- setting workshop(s) of the EDA BILL TAPPER MOVED TO SET A SPECIAL MEETING DATE OF WEDNESDAY, NOVEMBER 18TH AT 4:30 PM FOR A 2016 EDA GOAL - SETTING WORKSHOP TO BE FOLLOWED BY THE RESCHEDULED REGULAR EDA MEETING AT 6 PM. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. 11. Consideration of adding items to the agenda • Reschedule EDA Meeting — This item is addressed as part of item 10. • City Use of EDA Property - Schumann explained that the City had requested use of the Cedar Street Garden Center site and the Block 34 site for storage and mobilization during the Highway 25 /CSAH 75 Intersection Improvement project. She agreed to confirm that this would not impact the Cedar Street parking agreement. Schumann also said that she'd prepare a license agreement, to include a termination provision should the sites be sold, for EDA consideration. 12. Consideration of Director's Report • Industry of the Year Update — Schumann encouraged EDA members to attend the 2015 Industry of the Year event scheduled for October 21 st • Property for Sale Update — No formal offers had been received for EDA properties (Fred's Auto, 4th Street, Cedar Street garden center). 13. Adiournme BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:44 PM. TOM PERRAULT AND JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Burri Approved: Attest: EDA Representative EDA Agenda: 11/18/15 5. 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 October 2015. 2. Motion to approve payment of bills through October 2015 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. D. SUPPORTING DATA: Accounts Payable Summary Statements Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 10/07/2015 - 3:16PM Batch: 00202.10.2015 Account Number _ I OF Vendor Description GL Date Check No Amount PO No 213 - 46301 - 430400 KENNEDY AND GRAVEN CHAR] General EDA Matters through 8/31/15 10/13/2015 114783 1,350.50 Vendor Subtotal for Dept:46301 1,350.50 213-46301-431990 WSB & ASSOCIATES INC BLK034 - Environmental Does - July! 10/13/2015 0 3,538.25 213 - 46301- 431990 WSB & ASSOCIATES INC BLK034 - Environmental Does 2015 10/13/2015 0 1,427.40 213 - 46301 - 431990 WSB & ASSOCIATES INC Economic Development & Market Ma 10/13/2015 0 4,000.00 Vendor Subtotal for Dept:46301 8,965.65 213 - 46301 - 431990 WILSON DEVELOPMENT SERVE Acquisition & Relocation Services -1\ 10/13/2015 0 303.00 213-46301-431990 WILSON DEVELOPMENT SERVII Acquisition & Relocation Services - I 10/13/2015 0 595.00 Vendor Subtotal for Dept:46301 898.00 213 - 46301 - 443300 INITIATIVE FOUNDATION 2015 Endowment Contribution 10/13/2015 114777 2,250.00 Vendor Subtotal for Dept:46301 2,250.00 213 - 46529 - 430400 KENNEDY AND GRAVEN CHAR] TIF 1 -29 - Services through 8/31/15 10/13/2015 114783 462.50 Vendor Subtotal for Dept:46529 462.50 Subtotal for Fund: 213 13,926.65 AP- Transactions by Account (10/07/2015 - 3:16 PM) Page 1 Account Number Vendor Description The preceding list of bills payable was reviewed and approved for payment. Date: 11/18/2015 Approved by Tracy Hinz - Treasurer GL Date Check No Report Total: Amount PO No 13,926.65 AP- Transactions by Account (10/07/2015 - 3:16 PM) Page 2 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 10/21/2015 - 1:19PM Batch: 00203.10.2015 Account Number Vendor Description CITY *0 F M-o-iif i(eRo GL Date Check No 213-46301-431990 NORTHLAND SECURITIES INC EDA -Special Tax Levy Authority - Si 10/27/2015 Vendor Subtotal for Dept:46301 The preceding list of bills payable was reviewed and approved for payment. Date: 11/18/2015 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 Report Total: 114854 Amount PO No 165.00 165.00 165.00 165.00 AP- Transactions by Account (10/21/2015 - 1:19 PM) Page 1 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 11/02/2015 - 10:18AM Batch: 00215.10.2015 Account Number Vendor Description Moiiifcello GL Date Check No Amount PO No 213 - 46522- 438100 XCEL ENERGY ZCULPS - 51- 0623082 -8 - FDA 10/31/2015 0 17.09 Vendor Subtotal for Dept:46522 17.09 The preceding list of bills payable was reviewed and approved for payment. Date: 11/18/2015 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 17.09 Report Total: 17.09 AP- Transactions by Account (11/02/2015 - 10:18 AM) Page 1 EDA Agenda: 11/18/15 6. Consideration of Market Matching report. A. REFERENCE AND BACKGROUND: A verbal report will be provided by WSB Market Matching consultant John Uphoff. EDA Agenda: 11/18/15 7. Consideration of properties for sale update A. REFERENCE AND BACKGROUND: Staff will provide a verbal report updating the status of properties for sale. EDA Agenda: 11/18/15 8. Consideration to approve a License Agreement between the EDA and the City of Monticello for use of 201 and 249 East Broadway and a portion of 100 East Broadway for City Proiect 100009 /Intersection of CSAH 75 /TH 25. (AS) A. REFERENCE AND BACKGROUND: The EDA is asked to consider granting a temporary license to the City of Monticello for public infrastructure purposes. The subject property for the license agreement is 201/249 East Broadway (the western -most parcel of the former Cedar Street Garden Center site) and 100 East Broadway. A license agreement between the EDA and City is sought in order to allow for storage of equipment and materials by the City's awarded contractor during the construction of intersection improvements at CSAH 75 /TH 25. The City Engineer has indicated that due to the relatively confined area for the project, these publicly -owned properties can provide the necessary space for staging and storage during construction, including machinery, vehicles and materials. The contractors and subcontractors will be required to restore both sites to existing condition. This requirement is included in the language for the license. In addition, this license does not impact the license agreement in place for use of the paved area for parking at 201 Cedar Street. If the EDA is amenable to such a license agreement, the City will be asked to consider the same. Staff has suggested a sunset date of August 1 st, 2016 to coincide with the end of construction for the intersection project. Al. Budget Impact: No impact to EDA is anticipated. Finance Director will verify insurance requirements as needed. A2. Staff Impact: None. B. ALTERNATIVE ACTIONS: 1. Motion to approve a license agreement as described for 201 and 249 East Broadway and a portion of 100 East Broadway for City Project 100009 /Intersection of CSAH 75 /TH 25. 2. Motion of other. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The license agreement is a temporary condition to allow the City areas for staging and storage associated with a public improvement project. EDA Agenda: 11/18/15 D. SUPPORTING DATA: Aerial Site Image Draft License Agreement — 1:�l - '. -, - 1 0 l*PY I qMk7 OAF, 114 4 C� r%l . . . . . . . . . . df AL a lit lip, dw —Mom 04'' ly Od j� %6 fit RAL t -6. FA lit 411- jp ft 6r 7in 4ki ft JIM M if 4f If. F,l zo I ILI I,L-J I., ILI b 11 ."j .r 4114i A 40 L�V&Ao� LICENSE AGREEMENT AGREEMENT made this 18th day of November, 2015, by and between the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota ( "EDA ") and the City of Monticello, a Minnesota municipal corporation ( "City"). WITNESSETH WHEREAS, the EDA is the owner of the properties located at 201 East Broadway Street, PID 155010067010, 249 East Broadway Street, PID 155010067060, and 100 Broadway East, PID 155010034150, in the City, as described and hereto attached as Exhibit A (the "Subject Property "). WHEREAS, the City desires to obtain a license over and across a portion of the Subject Property for staging, storage, and mobilization operations associated with City Improvement Project 100009 for improvements to the intersection of CSAH 75 /TH 25 (the "Permitted Uses "). WHEREAS, the EDA has agreed to allow the City to enter onto the Subject Property for the Permitted Uses in accordance with the terms and conditions of this Agreement. NOW THEREFORE, the parties agree as follows: 1. The EDA does hereby grant to the City, its employees, agents and contractors (the "Authorized Parties "), a non - exclusive, non - transferable license to use the Subject Property for the Permitted Uses. The Authorized Parties shall have access to the Property seven (7) days a week between the hours of 5:00 a.m. and 10:00 p.m. 2. Nothing in this Agreement shall prohibit the EDA from the use of the Subject Property for public purposes. 3. The City shall be responsible for all costs relating to construction, reconstruction, maintenance, signage, and repair and restoration, including snow removal, with respect to the Subject Property during the license period (the "Maintenance "). The Maintenance is a personal obligation of the City and shall be binding upon the executors, administrators, successors, heirs and assigns of the City. 4. The City agrees to indemnify, save harmless, and defend the EDA, its officers, and employees, from and against any and all claims, actions, damages, liability and expense in connection with personal injury and/or damage to the Subject Property arising from or out of any occurrence in, 470614v2 MNI MN190 -101 upon or at the Subject Property caused by the act or omission of the Authorized Parties in conducting the Permitted Uses on the Subject Property, and will, at the City's own cost and expense, defend any and all suits or actions (just or unjust) which may be brought against the EDA or in which the EDA may be impleaded with others upon any such above - mentioned matter, claim, or claims. This indemnity and hold harmless provision will include indemnity against all costs, expenses, and liabilities incurred in or in connection with any such claims or proceedings brought thereon and the defense thereof. The City shall not permit any mechanics', materialmens' or other liens to stand against the Subject Property or any part thereof for work or materials furnished to the City in connection with the Permitted Uses granted pursuant to this Agreement and the City agrees to indemnify, defend and hold harmless the EDA from and against the same. 6. The EDA, at its sole option, may terminate this Agreement upon 30 days' written notice to the City. 7. This Agreement shall expire on August l st, 2016 unless sooner terminated pursuant to paragraph 6. IN WITNESS WHEREOF, the undersigned have executed this Agreement the day and year first above written. CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY I: RIM STATE OF MINNESOTA ) ) ss COUNTY OF WRIGHT ) Bill Demeules, President Jeff O 'Neill, Executive Director The foregoing instrument was acknowledged before me this _ day of , 2015, by Bill Demeules, President of the City of Monticello Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota, on behalf of the political subdivision. NOTARY PUBLIC 470614v2 MNI MN190 -101 STATE OF MINNESOTA) ( ss COUNTY OF WRIGHT) CITY OF MONTICELLO Brian Stumpf, Mayor Jeff ONeill, City Administrator The foregoing instrument was acknowledged before me this _ day of , 2015, by Brian Stumpf and by Jeff ONeill, the Mayor and City Administrator of the City of Monticello, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC 470614v2 MNI MN190 -101 EXHIBIT A Lots 1, 2, 3, 4 and 5, Block B, Original Plat of Monticello, County of Wright, Minnesota and Lots 14 and 15, Block 34, Original Plat of Monticello, County of Wright, Minnesota 470614v2 MNI MN190 -101 EDA Agenda: 11/18/15 9. Consideration of an update on the status and iob description for the Economic Development staff position. (AS) A. REFERENCE AND BACKGROUND: The City Council approved the hiring of a full -time economic development staff person for 2016 on November 9th. The position was posted the week of November 9th, following Council approval. The position posting will be open for three weeks. The EDA and Council will both be involved in the interview and selection process. The goal is to have a staff person on board in early January. The job description for the position is substantially similar to that reviewed by the ad -hoc EDA sub - committee of Lloyd Hilgart and Jim Davidson and recommended by the EDA in August. In finalizing the job description for hiring, a few minor updates were made. First, the "Executive Director" function of the EDA, which was been held by the City Administrator since 2012, is proposed to be shifted back to the economic development position. Second, the position title has been changed to "Manager" rather than "Coordinator ". These two changes are made in recognition of the responsibilities and work tasks associated with the position. The role is one which includes a good deal of discretion and professional accountability. Lastly, the position will continue to report to the Community Development Director, as was the case with the previous position and staff. In December, the EDA will be asked to take action relating to the termination or phase -out of Market Matching services. Al. Budget Impact: The annual salary range for this exempt position based on 2015 wage benefit costs is $51,730 - $67,327, plus an additional $22,883 ($19,083 insurance and PERA, and $3,800 taxes). The salary for the economic development position will be paid from the HRA levy. A2. Staff Impact: Hire of an economic development staff position will create a re- alignment of workload for the City Administrator, Finance Director and Community Development Director. B. ALTERNATIVE ACTIONS: Comments and feedback requested at this time; no formal action required. C. STAFF RECOMMENDATION: Staff continues to support the hiring of an economic development staff position to facilitate a more proactive approach to economic development for the community and a better use of time and monetary resources for economic development efforts. D. SUPPORTING DATA: Draft Job Description Economic Development Manager City of Monticello Exempt Title of Class: Economic Development Manager Effective Date: November 15, 1991 Revised Date: October 13, 2008 February 11, 2011 October 27th, 2015 DESCRIPTION OF DUTIES General Statement of Duties: Performs responsible professional work, planning, promoting, developing and implementing economic development and redevelopment goals for the City; performs related duties as required. Generates business leads, promotes business retention and expansion, creates a positive attitude for development and raises supportive public awareness for strategic economic planning and development. Supervision Received: Works under the general supervision of the Community Development Director with additional work direction provided by the City Administrator. Supervision Exercised: None. TYPICAL DUTIES PERFORMED The listed examples may not include all duties performed by all positions in this class. Duties may vary somewhat from position to position within a class. ADMINISTRATION *Provides administrative and professional support to the EDA as the EDA Executive Director, managing business affairs, agenda and minutes, and acting as the staff liaison for the City. In conjunction with the Finance Director, oversees the Authority's budget, financial and fund reports. *Plans, develops, presents for approval, and implements long range goals and strategies which support the City Council and EDA goals as reflected in the Monticello Comprehensive Plan and Monticello Redevelopment Project No. 1 Plan. *Oversees, develops, markets, administers, and evaluates financial funding strategies and business subsidy and incentive programs which support the City's goals *Ensures compliance and performs required reporting in accordance with the MN Business Subsidy Act, State Auditor's requirements and applicable federal regulations. *Provides city staff with reports and recommendations on development proposals and assists in identifying site development issues for economic development projects. Maintains all business records and reporting requirements for the Economic Development Department and EDA. *Primary staff liaison to the Industrial and Economic Development Committee, Chamber of Commerce, Wright County Economic Development Partnership, Economic Development Association of MN and MN Department of Employment & Economic Development. Prepares annual business report for the EDA, completes required forms and publishes notices. Assists in preparing and updating economic development and redevelopment portions of the City's comprehensive plan in cooperation with Community Development Department and provides input on other aspects of the plan. Economic Development Manager City of Monticello Exempt *Facilitates and prepares the annual Economic Development Work Plan in conjunction with the Community Development Director and assists in the development and monitoring of the annual budget. Monitors legislative initiatives related to economic development and redevelopment which may impact the EDA and City. Coordinates the work of City consultants as related to economic development initiatives, including legal and financial services. May assist in preparation of grant applications. Performs other duties as needed or assigned. BUSINESS & DEVELOPMENT RELATIONS *Maintains regular contact with business and property owners, developers, real estate agents, lending institutions, and related organizations to facilitate achievement of economic development goals and business retention and expansion efforts. *Assists developers with preliminary and formal business subsidy applications, analyzes formal application and financial information and prepares written recommendation for EDA and Council approval. *Negotiates terms and conditions for TIF Districts, purchase agreements, development contracts, loan agreements, land acquisitions and sales, assessment agreements, and other related documents with assistance from the EDA's attorney and as directed by the EDA. MARKETING & SALES *Prepares, organizes and implements a coordinated marketing program to generate business and industry leads which are consistent with the City's economic development goals. *Serves as primary City liaison at prospect stage, assisting in developing, preparing and presenting individualized project financing proposals in cooperation with City consultants to meet prospects' financing requirements. *Participates in the citywide marketing/branding effort. *Maintains and distributes updated marketing and sales information pertaining to economic development including: community profile, demographic and employment data, building and land inventories and contacts, City /EDA property information and sales sheets, and prospect databases. *Plans and oversees marketing for City -owned business center and other EDA /City properties. Participates in exhibitions, seminars, media events, trade shows and conferences to attract businesses to the City. Organizes events, meetings and activities supporting economic development initiatives, including trainings, industry recognitions, and familiarization tours. KNOWLEDGE, SHILLS AND ABILITIES *Considerable knowledge of government processes and services, economic research and marketing related to economic development and redevelopment. *Considerable knowledge of city planning, project development, financing, land acquisition and related areas. *Working knowledge of laws, rules and regulations related to development and related financing and ability to communicate such to industrial project developers. *Considerable skill to operate office equipment including personal computer with Internet, word processing, spreadsheet, Power Point and database management applications. Economic Development Manager City of Monticello Exempt *Considerable ability to communicate effectively both orally and in writing and maintain effective working relationships with state and federal agencies, property and businesses owners, elected and appointed officials, committee members, potential developers and the general public. *Considerable ability to develop alternatives and determine costs, advantages and disadvantages of various alternatives. *Considerable ability to analyze financial statements including balance sheets, profit and loss sheets and cash flow statements. Working ability to read and interpret building plans, site plans and city service maps. MINIMUM QUALIFICATIONS Bachelor's degree with major course work in economic development, local and urban affairs, planning or a related field and five years of experience in economic or community development. Certification from the National Development Council preferred. Must possess and maintain a valid MN Class D Driver's license. *Asterisked items are essential to the job EDA Agenda: 11/18/15 10. Economic Development Report (JO /AS) TIF 1 -22, Pooling for Housing On October 26th, 2015, the City Council approved a resolution in support of the modification to TIF 1 -22 to allow additional pooling in TIF 1 -22 for housing purposes. With this action, the EDA will now begin to pool separate increment, 10% of increment collected, for housing activities in TIF 1 -22. The annual calculation for return of excess tax increment will be adjusted accordingly. Update on Block 34 The additional boring was taken on the property known as Finders Keepers, as requested by the MPCA. The EDA will recall that the MPCA had requested an additional boring south of those taken on the EDA property on Block 34 in order to determine the limits of contamination found at the 100 East Broadway site. The boring test results from Finders Keepers indicated that petroleum -based compound levels were below MPCA thresholds. As such, WSB will be preparing the final LSI documentation and requesting site closure to the MPCA. Removal of contaminated soils on 100 East Broadway in the turn lane area will occur with the CSAH 73 /TH 25 project, anticipated to occur April — June 2016. Funding for remediation will be included within the project costs. WSB is preparing a scope of work for determining potential coal gasification- related contamination on "The Zoo" property. The scope will be brought forward at a future EDA meeting for consideration. Update on TIF 1 -35 Staff has consulted with the developer and EDA attorney regarding options for TIF 1 -35. It appears that the developer does retain all 26 years of increment collection under the TIF plan. In addition, the attorney has indicated that the EDA, at its discretion, may consider a minor modification of the TIF plan to allow for a variation to the type of project developed in the TIF district. In addition, the EDA's financial consultant has recommended a modification to the TIF plan to more accurately reflect actual expenses within budget line items. The attorney had recommended that the TIF modification occur at the time a project is ready to move forward within the district in order to address any and all modifications necessary at that time. However, if the EDA's desire is to allow the developer additional time in which to move a project forward, the EDA can move forward with an amendment to the contract for private redevelopment to adjust the commencement and completion dates at this time. This is in alternative to declaration of default. The above information was conveyed to the developer, who will be sending correspondence to the EDA detailing a request for extension on commencement and completion dates for the contract amendment. EDA Agenda: 11/18/15 TIF District 1 -36 This district will decertify at the end of 2015 automatically. TIF District 1 -36 is the Rocky Mountain LLC (Dahlheimers) TIF District. Located in Otter Creek, the primary goal of the district, as an economic development district, was to allow for the relocation and expansion of an existing business, with the increment repaying the land write -down and development expenses associated with Otter Creek. Fred's Auto Storage The City has requested that the Fred's Auto building be used for the temporary storage of some of the City's vehicle fleet. During the winter months, a vehicle for the Community Center and Building Dept. are infrequently used. Storage indoors is a better long -term option for maintenance of the vehicles. It is understood that the storage is temporary and would be required to be removed if a sale were to occur. Marketing of the site will not be impacted. 2 EDA Agenda: 11/18/15 11. 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(3)(C)(3)