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EDA Agenda 12-09-2015REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 91h, 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. Special Meeting — November 18th, 2015 b. Regular Meeting — November 18th, 2015 4. Consideration of additional agenda items. 5. Consideration of approving payment of bills. 6. Consideration of Market Matching report. 7. Consideration to adopt Resolution EDA- 2015 -012 approving an amendment to the Contract for Private Redevelopment between Masters 5th Avenue and the Monticello EDA as related to TIF 1 -35, and to adopt Resolution EDA- 2015 -013 approving an Interfund Loan. 8. Consideration to adopt Resolution EDA- 2015 -011 authorizing conveyance of property and approve a Quit Claim deed for the conveyance of property to the Minnesota Department of Transportation for Right of Way purposes. 9. Consideration of 2016 EDA appointments. 10. Consideration of Director's Report. 11. Adjourn MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Wednesday, November 18t1, 2015 4:30 p.m., Monticello Community Center Present: Bill Demeules, Bill Tapper, Tracy Hinz, Jim Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart Absent: None Others: Angela Schumann 1. Call to Order Bill Demeules called the special meeting to order at 4:30 p.m. 2. Purpose Angela Schumann explained that the purpose of the workshop is to begin developing the 2016 EDA work plan. She suggested that the work plan would be used to explain to the City Council how the EDA intends to use HRA levy funding. 3. Consideration of EDA Work Plan for 2016 Schumann pointed out that the EDA had accomplished some of the more immediate objectives identified in its 2015 work plan. She noted that many of the long -term objectives would require ongoing effort to accomplish. The commissioners discussed priorities related to the following workplan objectives and action statements related to each objective: o Continue to support redevelopment efforts for publicly -owned properties on Block 34 o Engage as a partner in other redevelopment opportunities as they arise, actively encouraging redevelopment within the TH25 /CSAH 75 area o Market industrial development at the Monticello Business Center (Otter Creek Business Park), targeting businesses which will be a supplier, customer or collaborative partner to existing businesses within the community o Encourage more proactive lead development and response in all market segments to support a diversified tax base o Market EDA incentive programs in a more proactive manner, both within the community and beyond, beginning with the education on these resources at the EDA level o Actively market for sale for development the EDA -owned properties at Cedar Street, 349 West Broadway and 413 W. 4th Street o Examine housing stock for aging or blighted properties and research development of programs for redevelopment and /or revitalization Special EDA Minutes: 11/18/15 O o Support the development of the Destination for Innovation brand and implement in economic development activities O Consider housing increment resource in terms of strategic goals o Re- engage in business retention and expansion efforts There was considerable discussion related to how best to support downtown redevelopment on Block 34 as a top priority. Commissioners pointed to the importance of identifying viable options for moving forward those efforts already underway. The EDA reflected on its role in guiding development as it considered various action steps proposed. There was much discussion about the need to establish criteria for making development decisions and the need to be prepared, in terms of market analysis, site control, design scenarios, and financial tools, to take action as opportunities arise. Commissioners also commented on the value of networking, marketing and building relationships. Schumann suggested that the EDA may want to consider the option of contracting for development facilitation services. Schumann indicated that she would revise the 2016 workplan to incorporate the specific action statements proposed based on the workshop discussion for further consideration at a December EDA workshop. 4. Adiourn BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 5:53 PM. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Burri Approved: Attest: Angela Schumann, Community Development Director 2 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 18t1, 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 1. Call to Order Bill Demeules called the meeting to order at 6 p.m. 2. Roll Call Demeules called the roll. All commissioners were present. 3. Approve Meeting Minutes TRACY HINZ MOVED TO APPROVE THE JULY 8TH, 2015 REGULAR MEETING MINUTES AS CORRECTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. BILL TAPPER MOVED TO APPROVE THE JULY 22ND, 2015 SPECIAL MEETING MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. BILL TAPPER MOVED TO APPROVE THE AUGUST 12TU, 2015 REGULAR MEETING MINUTES. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. TRACY HINZ MOVED TO APPROVE THE AUGUST 12TH, 2015 SPECIAL MEETING MINUTES AS CORRECTED. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. TRACY HINZ MOVED TO APPROVE THE OCTOBER 14TH, 2015 REGULAR MEETING MINUTES. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7 -0. 4. Consideration of adding items to the agenda None 5. Consideration of approving pavment of bills LLOYD HILGART MOVED TO APPROVE PAYMENT OF BILLS THROUGH OCTOBER 2015. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED 7- 0. EDA Minutes: 11/18/15 6. Consideration of Market Matching report WSB consultant John Uphoff provided an update related to recent Market Matching activities. He indicated that he had represented Monticello's interests while networking with the broader development community at the Greater St. Cloud Development Corporation Annual Meeting, the Greater MSP Annual Meeting, 9th Annual Minnesota Commercial Real Estate (MnCAR) Expo, the MN Med Tech Conference and the Sensible Land Use Coalition's monthly meeting. Uphoff also summarized market analysis based on discussions with Rick Packer, Land Development Manager, at Mattamy Homes and area Commercial Real Estate Services broker Wayne Elam. 7. Consideration of an update on properties for sale Schumann pointed out that this item had been added to the agenda in error. 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 BILL TAPPER MOVED 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. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. 9. Consideration of an update on the status and iob description for the Economic Development staff position Schumann reported that the City Council had approved adding a full -time economic development position for 2016 to be funded by the HRA levy. She highlighted a few minor changes to the job description. Those noted were shifting the function of the Executive Director from the City Administrator to the new position, revising the job title of the position from Coordinator to Manager, and reassigning the position to report to the Community Development Director rather than the City Administrator. Schumann noted that both the EDA and the City Council would be involved in the interview and selection process. 10. Consideration of Director's Report There was no discussion related to the written report included in the agenda packet. 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) BILL TAPPER MOVED TO RECOMMEND THAT THE EDA RECESS TO A CLOSED SESSION AT 6:20 PM. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 7 -0. EDA Minutes: 11/18/15 Bill Demeules noted for the record that the closed session would involve discussion related to properties located at 118 East Broadway, 315 Front Street and 224 4th Street East. 12. Closed session Bill Demeules called the closed session to order and called the roll. All commissioners were present. Angela Schumann and Dan Wilson were also in attendance. Demeules restated that the purpose of the closed session was 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) as related to properties located at 118 East Broadway, 315 Front Street, and 224 4th Street East. BILL TAPPER MOVED TO ADJOURN THE CLOSED SESSION AT 7:10 PM. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED 7 -0. 13. Adiourn BILL TAPPER MOVED TO ADJOURN THE REGULAR EDA MEETING AT 7:10 PM. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Kerry Burri Approved: Attest: Angela Schumann, Community Development Director 3 EDA Agenda: 12/09/15 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 November 2015. 2. Motion to approve payment of bills through November 2015 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: Debbie.Davidson Printed: 11/04/2015 - 2:11PM Batch: 00202.11.2015 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431990 WSB & ASSOCIATES INC Economic Development & Market Ma 11/10/2015 0 4,000.00 213-46301-431990 WSB & ASSOCIATES INC BLK034 - Environmental Does - Sept 11/10/2015 0 684.75 Vendor Subtotal for Dept:46301 4,684.75 The preceding list of bills payable was reviewed and approved for payment. Date: 12/09/2015 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 4,684.75 Report Total: 4,684.75 AP- Transactions by Account (11/04/2015 - 2:11 PM) Page 1 Accounts Payable C1ii OF Transactions by Account � User: Debbie.Davidson eRo Printed: 11/18/2015 - 4:24PM MO Batch: 00203.11.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 46301 - 435100 KENNEDY AND GRAVEN CHAR] FiberNet Management Contract throng 11/24/2015 114976 74.00 213 - 46301 - 435100 KENNEDY AND GRAVEN CHAR] Modification TIE 22 through 9/30/15 11/24/2015 114976 740.00 213 - 46301 - 435100 KENNEDY AND GRAVEN CHAR] General EDA Matters through 9/30/15 11/24/2015 114976 618.14 Vendor Subtotal for Dept:46301 1,432.14 213 - 46301 - 444900 LOCH JEWELERS Glass Trophies Engraved for IEDC Bn 11/24/2015 114979 38.00 Vendor Subtotal for Dept:46301 38.00 Subtotal for Fund: 213 1,470.14 Report Total: 1,470.14 The preceding list of bills payable was reviewed and approved for payment. Date: 12/09/2015 Approved by Tracy Hinz - Treasurer AP- Transactions by Account (11/18/2015 - 4:24 PM) Page 1 Accounts Payable CJTY Or Transactions by Account User: Debbie.Davidson Monti eRo Printed: 11/17/2015 - 10:11AM Mo Batch: 00201.11.2015 Account Number Vendor Description GL Date Check No Amount PO No 213 - 46301 - 434600 US BANK CORPORATE PMT SYS Russells on the Lake - Industry of the 11/15/2015 0 1,000.00 Vendor Subtotal for Dept:46301 1,000.00 213 - 46301 - 444900 US BANK CORPORATE PMT SYS Russells on the Lake -Industry of the 11/15/2015 0 229.59 213 - 46301 - 444900 US BANK CORPORATE PMT SYS Live Laugh Bloom - Floral Centerpiece 11/15/2015 0 155.00 Vendor Subtotal for Dept:46301 384.59 213 - 46500 - 443990 US BANK CORPORATE PMT SYS Domino's Pizza - EDA Special Meetin; 11/15/2015 0 70.75 213 - 46500 - 443990 US BANK CORPORATE PMT SYS Domino's Pizza - Meal for Special CC 11/15/2015 0 54.80 Vendor Subtotal for Dept:46500 125.55 Subtotal for Fund: 213 1,510.14 The preceding list of bills payable was reviewed and approved for payment. Report Total: 1,510.14 Date: 12/09/2015 Approved by Tracy Hinz - Treasurer AP- Transactions by Account (11/17/2015 - 10:11 AM) Page 1 Accounts Payable Transactions by Account User: Debbie.Davidson Printed: 12/01/2015 - 2:12PM Batch: 00215.11.2015 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213 - 46522 - 438100 XCEL ENERGY ZCULPS - 51- 0623082 -8 11/30/2015 0 17.09 Vendor Subtotal for Dept:46522 17.09 The preceding list of bills payable was reviewed and approved for payment. Date: 12/09/2015 Approved by Tracy Hinz - Treasurer Subtotal for Fund: 213 17.09 Report Total: 17.09 AP- Transactions by Account (12/01/2015 - 2:12 PM) Page 1 EDA Agenda: 12/09/15 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: 12/09/15 7. Consideration to adopt Resolution EDA- 2015 -012 approving an amendment to the Contract for Private Redevelopment between Masters 511 Avenue and the Monticello EDA as related to TIF 1 -35, and to adopt Resolution EDA- 2015 -013 approving an Interfund Loan (AS) A. REFERENCE AND BACKGROUND The EDA is asked to consider action related to the request for an extension of a Contract for Private Redevelopment for TIF 1 -35. The developer, Masters 5th Avenue, has formally requested a five -year extension for the dates of commencement and completion, with the five -year extension requested from today's date. TIF 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 includes what is now a single parcel located at the northwest corner of Yd and Locust Streets. The tax increment generated in the district was intended to reimburse the developer for land acquisition through "pay -as- you -go" TIF assistance. The original contract for private redevelopment required a date for commencement of development of October 1, 2005 and completion of minimum improvements, including the 11,000 retail center and associated parking, by December 31, 2006. In 2006, due to "unavoidable delays ", the contract was amended to reference a later required commencement date and a minimum improvements completion date of December 31, 2008. Then, in 2007, the contract was again amended, to delay the commencement date and provide for a completion date for minimum improvements by December 31, 2009. Accordingly, the contract amendments also included language amending the commencement of TIF installment payments to later dates. The contract has not been amended since 2007. TIF District 1 -35 has met the four year knock -down requirement, as the three residential homes originally located on the parcel were either demolished or relocated. An obligation for the district has also been created, given the contract for development. As such, the five -year rule has also been met. No increment has been paid to the developer, given that no increment has been generated in the district. At this time, the EDA is asked only to consider an amendment to the contract for private redevelopment governing the TIF district. While a modification to the TIF plan to more accurately reflect actual expenses within budget line items is needed, that action is recommended to occur at the time a development project is ready to move forward within the district. Modification at that time can then address any additional modifications necessary related to the specified development project. 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 at that time. It should be noted that while the TIF Plan indicates that as no increment has yet been collected, the developer retains all 26 years of increment collection from the date TIF is first collected. However, upon further review, the EDA's attorney has noted that the contract for private redevelopment specifies a termination date which impacts the 26 years. "Termination Date" is a defined term in the Contract, and currently means the earliest of (i) the date of reimbursement in full of Land Acquisition Costs, (ii) February 1, 2033, or (iii) the date the Contract has been otherwise terminated (i.e. in the event of an uncured default). As such, the Developer will only receive increment through 2033 at the latest as the contract is currently written. If the Developer doesn't complete a project until 2021, this provision would allow for a maximum of 11 years of increment. The EDA's attorney has indicted that if the EDA was inclined to amend that provision, it could do so through another contract amendment at such time as the developer is ready to proceed with a development. The action related to the request for amendment of the contract is a policy consideration for the EDA. When the TIF district was created, it was intended to spur and support private redevelopment within a specific timeframe given funding analysis at the time the district was created. The development has not occurred and those funding factors may have shifted since that time. In addition, as the EDA considers other future modifications or amendments for the district, it may find the developer does not need all 26 years in which to recover the $170,000 in tax increment. 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. In a related action, the EDA is also asked to approve a resolution approving an interfund loan resolution. This resolution will allow the EDA to borrow against future increment from the district for the payment of administrative expenses associated with this district. This includes attorney and financial consultant time associated with the current review. Al. Budget Impact: Pending the approval of Resolution EDA- 2015 -013, the consulting expenses associated with this action will be coded to the 10% of increment collected in the district. Up to 10% may be used to cover administrative expenses. As such, consulting time spent to explore other options would be recovered through future increment. A2. Staff Workload Impact: An estimated 8 hours of staff time has been spent to -date in research and communication on this district. B. STAFF RECOMMENDATION As noted, the amendment of the contract is a policy question for the EDA. The EDA will need to consider the implications of continued extensions relative to their original intended timing and goals for the development of the property as outlined in the TIF plan and contract. 2 C. ALTERNATIVE ACTIONS 1. Motion to adopt Resolution EDA- 2015 -012 approving an amendment to the Contract for Private Redevelopment between Masters 5th Avenue and the Monticello EDA as related to TIF 1 -35, and to adopt Resolution EDA- 2015 -013 approving an Interfund Loan as related to TIF 1 -35. 2. Motion to send a formal notice of default to the developer and to proceed with the remedies as described in the Contract for Private Redevelopment. 3. Motion to table this item for additional information. D. SUPPORTING DATA A. Developer Request B. Resolution EDA- 2015 -12 C. Third Amendment to the Contract for Private Redevelopment, Masters 5th Avenue D. Resolution EDA- 2015 -13 E. See also: Staff Report and Exhibits to EDA on TIF 1 -35, November, 2015 3 Master's Fifth Avenue, Inc. 19577 180th Ave. Big Lake, MN 55309 763- 390 -0393 December 1,2015 TO: Monticello Economic Development Authority City of Monticello 505 Walnut Street Monticello, MN 55362 Attention: Angela Schumann Based on our phone conversation, I request to be put on the agenda for the EDA meeting of December 9th, 2015. 1 will be requesting a 5 year extension to the 1 -35 TIF district agreement. Thank you for your consideration. e5(11 -- Barry Fluth, president Master's Fifth Avenue, Inc. CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2015 -012 RESOLUTION APPROVING A THIRD AMENDMENT OF A CONTRACT FOR PRIVATE DEVELOPMENT BY AND BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND MASTERS FIFTH AVENUE, INC. BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the City of Monticello Economic Development Authority, Monticello, Minnesota (the "Authority ") as follows: Section 1. Recitals. 1.01. The Authority currently administers Redevelopment Project No. 1 (the "Project "), pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act ") within an area located in the City, and administers Tax Increment Financing District No. 1 -35 (the "TIF District ") within the Project pursuant to Minnesota Statutes, Sections 469.174 to 469.1794. 1.02. The Authority and Masters Fifth Avenue, Inc. (the "Developer ") executed a certain Contract for Private Development, dated as of September 7, 2005, as amended by a First Amendment thereto dated as of June 7, 2006, and by a Second Amendment thereto dated as of December 18, 2007 (as so amended, the "Agreement"), whereunder the Authority pledged Available Tan Increment (as defined in the Contract) to pay or reimburse certain land acquisition costs incurred by the Developer in connection with the development of an approximately 11,000 square foot retail center, with associated parking, known as Landmark Square II (the "Minimum Improvements ") on certain property in the TIF District. 1.03. Due to delays in construction of the Minimum Improvements, the parties propose to execute a Third Amendment to the Agreement (the "Third Amendment ") to modify the construction commencement and completion dates for the Minimum Improvements. Section 2. Third Amendment Approved. 2.01. The Third Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. The President and Executive Director are hereby authorized to execute, on behalf of the Authority, the Third Amendment. 471960v 1 MNI MN 190 -115 Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 9t' day of December, 2015. President ATTEST: Executive Director 471960v 1 MNI MN 190 -115 THIRD AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT This agreement is made as of December , 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 11 (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: 1. 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 MNI MN190 -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.) 471894A MNI MN190 -115 Dated this 9th day of December, 2015. Masters Fifth Avenue, Inc. City of Monticello Economic Development Authority By: Its 471894A MNI MN190 -115 By: Its President By: Its Executive Director CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA RESOLUTION NO. EDA- 2015 -013 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1 -35 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- 35 (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 $45,000 in administrative costs associated with the TIF District (the "Administrative 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 $45,000 in legally available Authority or City funds to pay the Administrative Costs, together with interest at the rate of 4% per annum (the " Interfund Loan "). Interest shall accrue on the principal 471962v1 MNI MN190 -115 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 2015, and will not be adjusted. 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 Tan 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. Section 3. Effective Date. This resolution is effective upon approval. 471962v1 MNI MN190 -115 2 Adopted this 9th day of December, 2015. President ATTEST: Executive Director 471962v1 MNI MN190 -115 EDA Agenda: 12/09/15 8. Consideration to adopt Resolution EDA- 2015 -011 authorizing conveyance of property and approve a Quit Claim deed for the conveyance of property to the Minnesota Department of Transportation for Right of Way purposes. (AS) The EDA is asked to approve the conveyance of property on Block 34 for right of way purposes to the Minnesota Department of Transportation. The conveyance is proposed to occur by Quit Claim deed. The EDA's attorney has prepared the Quit Claim deed based on the legal description for the property prepared by WSB & Associates. The property to be conveyed is a portion of Lots 14 and 15, Block 34 and will be conveyed for right of way purposes to support construction of a right turn lane from northbound TH 25 to eastbound CSAH 75. The EDA approved submission of an application for the combination of Lots 14 and 15 and subsequent subdivision of this property to create the turn lane parcel in March of 2015. The City Council approved the combination and subdivision on April 13th, 2015, following Planning Commission review. The EDA's attorney, Kennedy & Graven, has indicated that pursuant to MN Statute 465.035, the EDA is not required to hold a hearing for the conveyance, as the conveyance is for a public purpose to another political subdivision. No closing is necessary; the property conveyance will occur via deed transfer and recording. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution EDA- 2015 -011 authorizing conveyance of property and to approve a Quit Claim deed for the conveyance of property to the Minnesota Department of Transportation for right of way purposes, contingent on MnDOT's acceptance of the deed and Wright County's acceptance of the simple subdivision for conveyance. 2. Motion of other. C. STAFF RECOMMENDATION: Staff has recommended approval of the conveyance as consistent with previous EDA action. D. SUPPORTING DATA: A. Resolution EDA- 2015 -011 B. Quit Claim Deed C. Certificate of Survey D. Exhibit of Area CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA- 2015 -011 RESOLUTION AUTHORIZING CONVEYANCE OF PROPERTY TO THE STATE OF MINNESOTA BE IT RESOLVED by the Board of Commissioners ('Board ") of the City of Monticello Economic Development Authority (the "Authority ") as follows: Section 1. Recitals. 1.01. The City of Monticello (the "City ") has previously established the Central Monticello Redevelopment Project No. 1 (the "Project "), which is currently administered by the Authority. 1.02. The Authority currently owns certain property within the Project described in Exhibit A (the "Property"). 1.03. The Authority is authorized to convey real property pursuant to Minnesota Statutes, Section 471.64 to the United States of America, to any state agency, or to any other political subdivision of the State of Minnesota (the "State "). 1.04. The City intends to construct certain improvements to the intersection of State Highway 25 and Broadway Street, and has determined that conveyance of the Property from the Authority to the State for State Highway 25 right -of -way purposes will advance the construction of such improvements. 1.05. The Authority finds and determines that conveyance of the Property to the State is for a public purpose and is in the public interest because it will further the objectives of the Project. Section 2. Authorization. 2.01. The Board approves the conveyance of the Property to the State by quit claim deed for consideration of $1.00, and authorizes and directs Authority staff and officials to execute the deed and related documents necessary to facilitate the transaction referenced herein and contemplated herein, with all such actions to be in accordance with the terms and conditions set forth in this Resolution. 2.02. Authority staff and officials are authorized and directed to take any and all additional steps and actions necessary or convenient in order to accomplish the intent of this Resolution. 460751v1 MNI MN190 -147 Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 9th day of December, 2015. President ATTEST: Executive Director 460751v1 MNI MN190 -147 EXHIBIT A Legal Description of Property Deed to MnDOT That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. 460751v1 MNI MN190 -147 Quit Claim Deed Deed Tax Due: $1.65 Consideration for this transfer is less than $500.00. ECRV: Not required. Date: December , 2015 FOR VALUABLE CONSIDERATION, City of Monticello Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quitclaims to the State of Minnesota, Grantee, real property in Wright County, Minnesota, described as follows: That part of Lots 14, and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2176.28 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 800.96 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 52 degrees 20 minutes 02 seconds East, 40.14 feet; thence North 44 degrees 54 minutes 41 seconds East, 55.24 feet; thence North 25 degrees 44 minutes 05 seconds East, 39.68 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.14 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 3.31 feet to the northeasterly corner of said Lot 14 and there terminating. Check here if part or all of the land is Registered (Torrens) 0 459292v1 CBRMN190 -147 together with all hereditaments and appurtenances. ❑x The Seller certifies that the Seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: ). ❑ I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. STATE OF MINNESOTA } SS.: COUNTY OF City of Monticello Economic Development Authority By Bill Demeules Its President By Jeff O'Neill Its Executive Director The foregoing was acknowledged before me this day of , 2015, by Bill Demeules and Jeff O'Neill, the President and Executive Director, respectively, of City of Monticello Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the public body corporate and politic, Grantor. NOTARY STAMP SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT The subdivision created by this instrument has been approved by the governing body of the City of Monticello. City Clerk/Administrator This instrument was drafted by: Kennedy & Graven, Charted 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337 -9300 459292v CBRMN190 -147 Tax Statements should be sent to: State of Minnesota CERTIFICATE OF SUR VEY CITY OF MONTICELLO THAT PART OF LOTS 14 AND 15, BLOCK 34, ORIGINAL PLAT OF MONTICELLO 60 40 SOUTHEAST CORNER OF THE NORTHEAST QUARTER �rPOINT OF COMMENCEMENT FF PARCEL A LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. ill PARCEL B LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies southeasterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. SURVEYOR'S CERTIFICATE I hereby certify that this survey, plan, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Dated this 5th day of May, 2015. 2c&.1 Kyle L. Kasen PLS, Minnesota License No. 44606 NOTES: 1. The property corners will be set after the removal of the onsite building and after the completion of the planned 2015 road A 711 .e construction. wSB "�•���^ S NORTHEASTERLY CORNER LOT 14 \ 14 POINT OF TERMINATION Lo co N25 040'43 "E z 5.5566 NORTHEAST QUARTER PARCEL B S00'44 "W 89 ° - -- -- -- 2175.15 5,275 SQFT SOUTHEf STERLY LINE LOT 14 00O\0 SOUTHEAST CORNER OF THE NORTHEAST QUARTER �rPOINT OF COMMENCEMENT FF PARCEL A LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. ill PARCEL B LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies southeasterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. SURVEYOR'S CERTIFICATE I hereby certify that this survey, plan, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Dated this 5th day of May, 2015. 2c&.1 Kyle L. Kasen PLS, Minnesota License No. 44606 NOTES: 1. The property corners will be set after the removal of the onsite building and after the completion of the planned 2015 road A 711 .e construction. wSB "�•���^ S 14 Lo co / z SOUTH LINE OF THE NORTHEAST QUARTER PARCEL B S00'44 "W 89 ° - -- -- -- 2175.15 5,275 SQFT 1N OF OG�gA / SINrLOT 15TERLY POINT OF BEGINNING SOUTHEAST CORNER OF THE NORTHEAST QUARTER �rPOINT OF COMMENCEMENT FF PARCEL A LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. ill PARCEL B LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies southeasterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. SURVEYOR'S CERTIFICATE I hereby certify that this survey, plan, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Dated this 5th day of May, 2015. 2c&.1 Kyle L. Kasen PLS, Minnesota License No. 44606 NOTES: 1. The property corners will be set after the removal of the onsite building and after the completion of the planned 2015 road A 711 .e construction. wSB "�•���^ S �cR Lo co z SOUTH LINE OF THE NORTHEAST QUARTER 4 S00'44 "W 89 ° - -- -- -- 2175.15 SOUTHEAST CORNER OF THE NORTHEAST QUARTER �rPOINT OF COMMENCEMENT FF PARCEL A LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies northwesterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. ill PARCEL B LEGAL DESCRIPTION That part of Lots 14 and 15, Block 34, Original Plat of Monticello, as is on file and of record in the Office of the County Recorder, Wright County, Minnesota which lies southeasterly of the following described line: Commencing at the Southeast Corner of the Northeast Quarter of Section 11, Township 121, Range 25, Wright County, Minnesota; thence South 89 degrees 00 minutes 44 seconds West, assumed bearing along the south line thereof, 2175.15 feet; thence North 00 degrees 59 minutes 16 seconds West, perpendicular to said south line, 801.81 feet to the southwesterly line of said Lot 15 and the point of beginning of said line to be hereinafter described; thence North 58 degrees 10 minutes 53 seconds East, 66.14 feet; thence North 25 degrees 44 minutes 05 seconds East, 70.67 feet; thence North 66 degrees 57 minutes 49 seconds East, 45.19 feet to the southeasterly line of said Lot 14; thence North 25 degrees 40 minutes 43 seconds East, along said southeasterly line, 5.56 feet to the Northeasterly corner of said Lot 14 and there terminating. SURVEYOR'S CERTIFICATE I hereby certify that this survey, plan, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. Dated this 5th day of May, 2015. 2c&.1 Kyle L. Kasen PLS, Minnesota License No. 44606 NOTES: 1. The property corners will be set after the removal of the onsite building and after the completion of the planned 2015 road A 711 .e construction. wSB "�•���^ S w rV I B Ro�o�q yST RMT NORTHEASTERLY Fgsj CORNER LOT 14 POINT OF TERMINATION N25°40'43"E 5.56 66 5�,Q90E N X519 SOUTHEASTERLY p\G\NP\ LINE L T 14 14 13 P\�P� 12 /r�E pFUTHWESTERLY ooGE LOT 15 10 MpN�\G 00 Cq an � 0 Z • � 5,776 SQ FT \ / � �7 / S89°00'44"W V 2175.15 SE CORNER 0 20 40 NE1/4 SEC. 11 City Project No. 1494-80 Date: November 12, 2015 \ CITY OF 701 Xenia Avenue South, Suite 300 -» WSB Minneapolis, 55Ci6 _'-- Montice DEED TO MNDOT 1 el: 17631541-48080 0 - Fay: 176315911700 wabeng,cam .....�, PART OF LOTS 14 AND 15, BLOCK 34 ORIGINAL PLAT OF MONTICELLO K:\01494-800\Survey\Easement\SE EXHIBIT.dgn 9. A. B. C. EDA Agenda: 12/09/15 Consideration of recommendation regarding 2016 EDA Appointments. (AS) REFERENCE AND BACKGROUND The EDA is asked to consider a recommendation for 2016 EDA Commissioner appointments. Commissioner Tapper's term expires at the end of 2015. Commission Tapper has indicated his willingness to serve another six -year term. The EDA Enabling Resolution does not include a term limit. The appointment calendar as provided by the City Clerk is below. Economic Development Authority Bill Tapper 6 yr 12/2015 (6 -year staggered terms) Tracy Hinz 6 yr 12/2016 Jim Davidson 6 yr 12/2020 Appointed 1112115 Bill Demeules 6 yr 12/2018 Steve Johnson 6 yr 12/2017 Appointed 1112115 Council Tom Perrault (voting) rep Council Lloyd Hilgart (voting) rep ALTERNATIVE ACTIONS 1. Motion to recommend to the City Council the appointment of Bill Tapper to a six -year term on the Economic Development Authority. 2. Motion of other. STAFF RECOMMENDATION Not applicable. D. SUPPORTING DATA A. EDA Enabling Resolution, 2013 -010 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2013-010 AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the City Council of the City of Monticello, Minnesota ( "City ") as follows: Section 1. Background and Findings 1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act ") to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs for the City. 1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as Title II, Chapter 3 (the "Enabling Ordinance "), the City established the City of Monticello Economic Development Authority ( "EDA"), for the purpose of coordinating and administering economic development activities in and for the City. 1.03. By resolutions approved on October 22, 2007 and January 14, 2008, the City transferred to the EDA the control, authority and operation of all projects administered by the Housing and Redevelopment Authority in and for the City of Monticello and adopted an Amended and Restated Enabling Resolution (the "Enabling Resolution "), which superceded the Enabling Ordinance in all respects. 1.04. The City Council further amended the Enabling Resolution after a duly noticed public hearing on February 27, 2012. 1.05. The City Council has now determined to revise and clarify certain provisions of the Enabling Resolution by the adoption of this resolution. 1.06. The City Council has, in accordance with Minnesota Statutes Section 469.093, provided public notice and conducted a public hearing on the date hereof, at which all persons wishing to be heard were given an opportunity to express their views, concerning the proposed modifications to the Enabling Resolution. 1.07. This resolution constitutes an amendment and restatement of the Enabling Resolution of February 27, 2012, and supercedes such Enabling Resolution in all respects. Section 2. Enabling Authority. 2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated by this resolution. 2.02. The EDA shall be composed of 7 commissioners to be appointed by the Mayor and confirmed by the City Council. 2.03. Two of the commissioners shall be members of the City Council. The terms of office of the two members of the City Council shall coincide with their terms of office as members of the City Council. The remaining five (5) commissioners shall be initially appointed for terms of one, two, three, four, and five years respectively. Thereafter, all non - Council commissioners shall be appointed for six -year terms. 2.04. A vacancy is created in the membership of the EDA when a City Council member of the board of commissioners ends Council membership, when any commissioner ends EDA membership prior to expiration of his or her term of office, on the day following the expiration of a commissioner's term of office, or when a commissioner is removed by the City Council subject to the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new term or the balance of the unexpired term, as applicable, in the manner in which the original appointment was made. 2.05. All of the commissioners who are not members of the City Council must be either residents of the City, business - owners in the City, or property- owners in the City. 2.06. All commissioners shall serve at the pleasure of the City Council, subject to the terms of Section 2.07 hereof. Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. 2.07. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2.08. The City Council shall make available to the FDA such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. Section 3. Officers and Meetings. 3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The other offices of the secretary and assistant treasurer need not be held by a commissioner. 3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the vote of each commissioner on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the EDA shall be a public record, except for those items classified by law as nonpublic data. 3.03. The EDA shall meet at least quarterly. Special meetings may be called by the president as needed. 3.04. All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA. Section 4. Staff. 4.01. The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the EDA commissioners, shall be designated as Executive Director of the EDA. 4.02. Subject to limits set by the appropriations or other funds made available, the EDA may employ such staff, technicians, and experts as may be deemed proper, and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 5. Functions, Powers, and Duties. 5.01. Except as specifically limited by the provisions of Section 6 of this Enabling Resolution, the EDA shall have the authority granted it pursuant to the EDA Act, 5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the "Fund ") the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. 5.03. The EDA may be a limited partner in a partnership whose purpose is consistent with the FDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 5.05. The EDA may cooperate with or act as agent for the federal or state government or a state public body, or an agency or instrumentality of a government or other public body to carry out the powers granted it by the EDA Act or any other related federal, state, or local law in the area of economic development district improvement. 5.06. The EDA may annually develop and present an economic development strategy and present it to the City Council for consideration and approval. 5.07. The EDA may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. 5.08. The EDA may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and within a reasonable time, furnish the EDA or its employees or agents such available records or information as may be required in its work. The EDA or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. Section 6. Limitations of Power. 6.01. The following limits apply to the EDA and its operation: (a) The sale of bonds or other obligations of the EDA must be approved by the City Council. (b) The EDA must follow the budget process for City departments in accordance with City policies, ordinances, and resolutions and the City charter. (c) Development and redevelopment actions of the EDA must be in conformity to the City comprehensive plan and official controls implementing the comprehensive plan. (d) The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and laws. (e) Except when previously pledged by the EDA, the City Council may, by resolution, require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines are not necessary for the successful operation of the EDA to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. (f) The administrative structure and management practices and policies of the EDA must be approved by the City Council. (g) The EDA shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 6.02. The EDA may exercise all the powers under the EDA Act, including, but not limited to, the following: (a) all powers under the HRA Act. (b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134. (c) all powers and duties of a redevelopment agency under Minnesota Statutes, Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections 469.152 to 469.165. (d) the authority to acquire property, exercise the right of eminent domain; make contracts for the purpose of redevelopment and economic development; serve as a limited partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies and materials needed to carry out development within the EDA Act; and operate and maintain public parking facilities. (e) the authority to issue bonds in accordance with the EDA Act and the HRA Act. (f) the authority to levy special benefit taxes in accordance with Section 469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment costs (as defined in the HRA Act), subject to approval by the City Council in accordance with Section 469.033, subdivision 6. (g) all powers under Minnesota Statutes, Sections 469.474 to 469.179. 6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this resolution nor any activities of the EDA are to be construed to impair the obligations of the City or HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA. Section 7. Implementation. 7.01. The City Council will from time to time and at the appropriate time adopt such ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this resolution. 7.02. The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this resolution. 7.03. Nothing in this resolution is intended to prevent the City from modifying this Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA Act. ADOPTED BY the City Council of the City of Monticello on this 25th day of March, 2013. CITY OF MONTICELLO Clint Herbst, Mayor ATTEST: J46XVII, City Administrator EDA Agenda: 12/09/15 10. Economic Development Report (JO /AS) Economic Development Manager The City has received 7 applications for the Economic Development Manager position. Staff would recommend proceeding to arrange interviews based on the applications received. Previously, the EDA has attended the second interview of candidates. However, depending on the final number selected for interview, the EDA may wish to attend the first round of interviews in whole. EDA Budget As a reminder, the EDA's budget was approved on August 24th, 2015, with authorization of the HRA levy. A copy of the EDA minutes and budget are included for reference. Fred's Auto An existing business in Monticello has inquired whether the EDA would be interested in completing improvements to the Fred's Auto site, with the idea of recovering the costs for such improvements through a lease agreement. Staff indicated that the idea would be brought forward to the EDA for discussion. 2016 Budget Draft 1 - EXPENDITURES EDA FUND 2011 2012 2013 2014 2015 2015 2016 EDA General EDA/HRA ACTUAL ACTUAL ACTUAL ACTUAL BUDGET PROJECTED BUDGET CHANGE 21346301410100 SALARIES, FULL TIME - REG $ 18,214 $ 9,883 $ 2,209 $ 4,255 $ 8,727 $ 8,727 $ 65,898 655.10% 21346301410200 SALARIES, FULL TIME - OT - - - 66 - - 213-46301-410400 SALARIES, TEMPORARY - REG - 213-46301-410900 SALARIES, OTHER 21346301- 411100 SEVERANCE PAY - - - - - - 213-46301- 412100 PERA CONTRIBUTIONS 1,320 716 160 314 655 655 4,942 654.500/6 21346301- 412200 FICA CONTRIBUTIONS 1,091 590 124 242 541 541 4,086 65527% 21346301- 412300 MEDICARE CONTRIBUTIONS 255 138 29 56 127 127 956 652.76% 21346301- 413100 HEALTH /DENTAL/LIFE INSURAN 4,984 2,579 594 999 2,754 2,754 17,745 544.34% 21346301- 413500 FLEX BENEFITS - - - 213-46301- 421990 GENL OPERATING SUPPLIES - 1,170 - 36 - 213-46301- 422990 MISC REPAIR & MTC SUPPLIES - - 213-46301- 424100 SMALL TOOLS & EQUIPMENT - - 213-46301- 430260 PROF SRV - CONSTRUCTION CO - - - 213-46301- 430300 PROF SRV - ENGINEERING FEE 4,533 4,461 - 5,379 1,000 1,000 1,000 0.00% 21346301430400 PROF SRV - LEGAL FEES 10,931 10,487 6,306 17,724 10,000 10,000 10,000 0.00 21346301430910 PROF SRV - Market Matching - - 24,000 48,000 48,000 48,000 12,000 -75.00 21346301431990 MISC PROFESSIONAL SERVICES 6,003 32,936 997 30,874 10,000 10,000 10,000 0.00 21346301432150 IT Services 691 1,400 1,416 1,416 1,416 21346301432400 DELIVERY MAIL SERVICE (UPS 1,331 109 46 24 - 213-46301- 433100 TRAVEL EXPENSE - 290 3 - - 500 21346301- 433200 CONFERENCE & SCHOOLS 154 148 95 76 - 1,000 - -- 213-46301- 434600 MARKETING 17,338 13,047 723 1,144 17,000 17,000 5,000 - 70.590/6 21346301- 435100 LEGAL NOTICE PUBLICATION 1,114 274 260 77 500 500 500 0.00% 21346301- 435200 GENERAL PUBLIC INFORMATION 4,998 399 - - 213-46301- 436100 Insurance - Liability /PropertyNehicle 2,073 8,026 486 486 486 21346301- 437100 PROPERTYTAXES 374 - 1,628 1,512 1,700 1,700 1,600 -5.88% 21346301- 438200 WATER & SEWER - - 213-46301- 438300 GAS - - - 213-46301- 443300 DUES, MEMBERSHIP & SUBSCRI 10,769 4,309 2,373 3,041 10,000 10,000 10,000 0.00 21346301 - 443500 BOOKS & PAMPHLETS - - - - - - 213-46301- 443800 Redevelopment (account placeholder) - 260 - - - - 155,000 21346301443990 MISC OTHER EXPENSE 2,823 658 2,323 2,901 3,244 3,244 2,871 - 11.50% 213 46301 451010 LAND (or value adjusted) - 55,800 71,000 - - 213-46301-453010 IMPROVEMENTS - - 213-46301-458010 Other Equipment 21346301460300 Interfund Loan - Principal - 213-46301-461300 Interfund Loan - Interest 21346301461500 SA INT PYBL -LAND FOR RESAL 21346301- 472030 TRANSFER TO GENERAL FUND 21346301- 472030 ITRANSFER TO DEBT SERVICE F 21346301- 472030 TRANSFER OUT - TRUNK FEES TOTAL EXPENDITURES $ 86,232 1 $ 82,454 $ 100,434 $ 197,146 $ 116,150 1 $ 116,150 $ 305,000 162.59% MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY Monday, August 24, 2015 — 5:45 p.m., Monticello Community Center Commissioners: Bill Demeules, Bill Tapper, Tracy Hinz, James Davidson, Steve Johnson, Tom Perrault, Lloyd Hilgart City Council: Brian Stumpf, Charlotte Gabler, Lloyd Hilgart, Tom Perrault, Glen Posusta Staff: Jeff O'Neill, Angela Schumann, Wayne Oberg, Tammy Omdahl (Northland Securities) 1. Call to Order Bill Demeules called the meeting to order at 5:45 p.m. 2. Purpose Angela Schumann stated that the purpose of the special meeting is to invite City Council feedback related to levy options and budget considerations and to provide an opportunity for the EDA to further discuss issues or take action. Schumann summarized that the EDA had reviewed its financial resources through a series of workshops and determined that it is limited in its capacity to address the broad economic development initiatives identified in its annual workplan. She specified that the three primary sources of revenue available to the EDA include pooled increment in TIF 1 -22, excess increment in TIF 1 -6 and the annual budget request allotment from the City's General Fund. Schumann noted that the EDA had included researching the concept of a levy as a workplan goal in response to the need to identify an alternative recurring revenue source to fund ongoing operational needs and accomplish strategic objectives related to redevelopment, revitalization and housing. Schumann pointed out that establishing a levy at the maximum allowable amount under statute could provide an additional $155,000 year to year. Schumann explained that an EDA levy is established by the City for the benefit of the EDA and within the City's overall levy and an HRA levy is a separate special benefit levy that would exist outside of the City's levy limits. She said each type of levy has a maximum amount per statute, each is listed as a separate line item on tax statements and each requires annual EDA and Council approval. Tammy Omberg, of Northland Securities, noted that it is a policy decision to establish a Special EDA Minutes: 8/24/15 levy and recommended that the Council focus on whether or not it supports creating additional tax revenue for economic development. She confirmed that the level of City Council control would be the same for either type of levy. Schumann pointed out that the Council would have oversight over the EDA's workplan, levy and budget. In addition, Schumann suggested that the EDA could formalize its current practice of inviting Council input as it considers the purchase or sale of property and provide an annual year end economic development report. Schumann noted that staff recommend that the EDA approve an HRA levy and budget. She clarified that an HRA levy, adopted at the full allowable statutory limit, would generate approximately $280,000. This would fund the day -to -day operations of the EDA, estimated at $150,000, and the balance would be available to fund housing and redevelopment activities. The proposed 2016 EDA budget would total $305,000 with this addition through the levy. Wayne Oberg pointed out that the current EDA allocation 1.1% of the City's general levy. An HRA levy would equate to an additional 2.2% commitment. He indicated, however, that the impact to taxpayers could be significantly less than 3.3 %. There was considerable discussion about the cost of development, the value of leveling the playing field on some properties to initiative development, the need to establish a mechanism for replenishing the EDA General Fund, the emphasis on hiring an economic director, and the importance of making a commitment to investing in the community through economic development. BILL TAPPER MOVED TO ADOPT EDA RESOLUTION EDA- 2015 -008 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2016. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED 6 -1 WITH TOM PERRAULT VOTING IN DISSENT. Schumann pointed out that this item would be presented for Council consideration on September 14th. The levy must be filed with Wright County by September 15th. 4. Adjournment BILL TAPPER MOVED TO ADJOURN THE SPECIAL MEETING AT 6:19 PM. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 7 -0. Recorder: Derry Burri j Approved: Octo 14, 2 r 11 Attest: � ".l �' l Angela 2 Director