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EDA Minutes 12-14-2016MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (IEDA) Wednesday, December 14th, 2016 — 6:00 p.m. Mississippi Room, Monticello Community Center Present: Bill Demeules, Bill Tapper, Steve Johnson, Tracy Hinz, James Davidson, Tom Perrault, and Lloyd Hilgart Staff- Angela Schumann, Jim Thares, Jacob Thunander, Sarah Rathlisberger 1. Call to Order Bill Demeules called the meeting to order at 6:00 p.m. 2. Roll Call 3. Approve Meeting Minutes a. Special Meeting — November 9a`, 2016 TOM PERRAULT MOVED TO APPROVE THE SPECIAL MEETING MINUTES FROM NOVEMBER 9TH, 2016. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7 -0. b. Regular Meeting — November 9h, 2016 TOM PERRAULT MOVED TO APPROVE THE REGULAR MEETING MINUTES FROM NOVEMBER 9TH, 2016. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7 -0. c. Special Meeting — November 29a', 2016 TOM PERRAULT MOVED TO APPROVE THE SPECIAL MEETING MINUTES FROM NOVEMBER 29TH, 2016. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7 -0. 4. Consideration of additional agenda items Bill Demeules added the resignation of Commissioner Jim Davidson to the agenda. 5. Consideration of approving payment of bills TRACY HINZ MOVED TO APPROVE THE NOVEMBER PAYMENT OF BILLS. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 7 -0. 7a Connsideimtnonn of approving payments to Kennedy and Graven BILL TAPPER MOVED TO APPROVE THE PAYMENT OF SERVICES BY KENNEDY AND GRAVEN IN THE AMOUNT OF $3,520. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 7 -0. 7b Consideration of approving payments to Monticello Chamber of Commerce STEVE JOHNSON MOVED TO APPROVE THE PAYMENT OF EVENT FEES TO THE MONTICELLO CHAMBER OF COMMERCE IN THE AMOUNT OF $45.00. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED, 7 -0. Sarah Rathlisberger, Finance Manager explained the process for how bills are processed. Rathlisberger stated the City's AP Clerks are sent invoices through email or traditional mail. Invoices are then emailed to Jim Thares or Angela Schumann to approve for payment. Once approved by staff, it then goes before the City Council for final approval and payment. The morning following a City Council meeting, checks are mailed out. Due to state statute, invoices are to be paid within 35 days of receipt. Steve Johnson asked for clarification of the "GL Date" listed on the Accounts Payable exhibits. Rathlisberger noted that was the date the check was written. Typically checks are written five to six days prior to the City Council meeting. 6. PUBLIC HEARING — Consideration of Sale of 349 West Broadway to April Studer Bill Demeules introduced the agenda item and opened the public hearing. Steve Ehlen, Cinco Corporation — St. Cloud, stated they are the owners of the building where the downtown Post Office is located (331 West Broadway Street). Ehlen mentioned that the Post Office held a public hearing to discuss the possible relocation of this post office to the Carrier Annex building, located at 206 East 7t' Street. He requested the EDA to table any action with the sale of the property at 349 West Broadway until the conclusion of the Post Office's 30 day comment period (January 6, 2017). Ehlen expressed interest in also placing an offer on the lot for an expansion of the post office, if it was decided that the Post Office would remain in the downtown location. He stated the site would need to retrofit to include an additional 50 parking stalls, if the post office remained in the downtown. Steve Johnson asked if there would be enough space on the 349 West Broadway site to include additional parking. Ehlen confirmed, stating the building would be removed for additional parking. Bill Demeules noted the lot was 8,310 square feet and could only hold approximately 40 parking stalls with no drive lanes. April Studer, Studer Chiropractic, stated her intent to own the property, but was understanding of the desire to keep the Post Office downtown. Studer commented that 2 she has made preliminary investments into the project and asked the EDA to consider that when making a decision. Hearing no further comments, Bill Demueles closed the public hearing. Bill Tapper asked staff for the legal obligations to Ms. Studer. Jim Thares stated that the EDA was not tied to Ms. Studer's offer as no closing documents have been signed because it's contingent on approval by the EDA. Steve Johnson asked staff about traffic and proposed improvements along 7th Street. Angela Schumann stated that 7th Street is a collector road and was designed to carry current traffic loads. Schumann confirmed that reconstruction of the intersection of Highway 25 and 7th Street would improve current functionality and turning movements. Johnson also asked if right turn lanes or sidewalk could be placed near the Carrier Annex Building. Schumann stated that it would be difficult to construct right hand turn lanes given the access points for Burger King and the Carrier Annex and their close proximity to one another. Schumann also added with the intersection improvements, the sidewalk is being extended along the south side of 7th Street to the Cedar Street intersection. There is a potential for a change order to bring the sidewalk to the Post Office and assessments to occur. Tracy Hinz asked if there were any other sites that the EDA could offer as an alternative to Ms. Studer. Thares said staff could look into alternative sites, if directed by the EDA. Bill Demueles commented that he believed this was the only site with a current building located on it. Hinz asked if the Post Office had a date following the 30 day comment period for a decision of relocation. Schumann said that she didn't believe it has been stated yet. Demueles reminded the EDA that the 349 West Broadway parcel has been held vacant since 2012 and the decision of the Post Office could be months away. Tom Perrault asked if Ms. Studer was on a lease at her current location. Studer stated she was on a month to month lease and not on a specific timeline for opening at the new location. Perrault asked if Cinco Corporation could buy Ms. Studer out of her contract. Demeules stated the intent of the EDA was for redevelopment of the site and not to make a profit off of the sale. Demeules also added concerns for increased interest rates and the effects of delaying the process for Ms. Studer. Schumann also stated that if the EDA wished to have further discussions with the City Council, City Staff would help to facilitate that. Lloyd Hilgart asked Ms. Studer if she was okay with the EDA tabling the action. Studer stated she has a finance meeting soon and paperwork for the survey. She said she wasn't set on a deadline, but was still interested in pursuing the site. Demueles asked if there were any concerns with increasing interest rates and the feasibility of the project with any delays. Studer confirmed. Bill Tapper asked if the offer was contingent on getting the necessary financing. Studer confirmed it was contingent on the financing package and the purchase agreement. Lloyd Hilgart asked for clarification by Cinco Corporation on the consolidation of the Post Office. Ehlen stated that the relocation would either be to the downtown location or the Carrier Annex Building and that one of the sites would close. BILL TAPPER MOVED TO ADOPT RESOLUTION NO. EDA- 2016 -012 APPROVING A PURCHASE AND DEVELOPMENT CONTRACT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND APRIL STUDER AND CONVEYANCE OF THE LOT IN CONNECTION WITH THE CONTRACT. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 6 -1 WITH STEVE JOHNSON VOTING IN OPPOSITION. Due to prior obligations, Lloyd Hilgart was not present for the remainder of the meeting. 7. Consideration of 2017 Membership in the Wright Co. Econ. Dev. Partnership, Duane N. Duane Northagen, Wright County Economic Development Partnership, explained about his organization and stated the partnership is a complimentary service to the communities and businesses in Wright County to help them with their economic development needs. Northagen discussed partners for the WCEDP and economic development goals and objectives of the organization and Wright County. Steve Johnson asked for specific deliverables that WCEDP has provided to communities. Northagen stated he has had discussions with small and large businesses about financing resources in the past few months. Thares also said that he has utilized the WCEDP as another set of eyes and ears and to ask questions to. Northagen also mentioned they are continually promoting and telling the story of Wright County. BILL TAPPER MOVED TO APPROVE THE 2017 ANNUAL WCEDP MEMBERSHIP DUES IN THE AMOUNT OF $2,445.90. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED, 6 -0. 8. Consideration of authorizing staff to solicit quotes for a housing market demand study Jim Thares stated the City received a draft, housing study from WSB yesterday per a previous contract. WSB would also be including additional information and feedback from real estate developer interviews to this document. Thares stated staff would need time to review the study to see if the proposal was still necessary. BILL TAPPER MOVED TO TABLE CONSIDERATION OF A LIMITED HOUSING STUDY. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 5 -1 WITH TOM PERRAULT VOTING IN OPPOSITION. F1 9. Consideration of appointing a prospect response team/subcommittee Jim Thares stated this item was a discussion for best practices and would eliminate some of the need for special /closed meetings. Bill Demueles asked for clarification on the role of the subcommittee. Thares confirmed that the subcommittee would only help to craft proposals as they came in. He also noted formal approvals would need to come through to the EDA. TRACY HINZ MOVED TO APPOINT A PROSPECT RESPONSE TEAM COMPRISED OF STAFF, A CITY COUNCIL EDA REPRESENTATIVE AND THE PRESIDENT. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 6 -0. 10. Consideration of approving letter of support for Fallon Avenue Grant Application BILL TAPPER MOVED TO APPROVE A LETTER OF SUPPORT FOR THE FALLON AVENUE OVERPASS FEDERAL FUNDING APPLICATION TO MN- DOT. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED, 6 -0. 11. Resisnation of Commissioner Jim Davidson BILL DEMUELES MOVED TO APPROVE THE RESIGNATION OF COMMISSIONER JIM DAVIDSON TO ASSUME HIS ROLE ON THE CITY COUNCIL. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 6 -0. Bill Demueles also thanked Tom Perrault for his service to the City Council and EDA. He stated there would be an opening on the EDA for a Monticello citizen to fill the vacancy. Steve Johnson asked Bill Demeules if the EDA should direct staff to post for the vacancy. Demueles agreed that staff should begin the process. 12. Consideration of Director's Report Jim Thares stated the Limited Site Investigation (LSI) was completed for Block 34 on December 6th, 2016. A report of findings is expected and follow up steps would be pursued based on the report. Thares reminded the EDA that there was a 90 percent reimbursement from the Minnesota Petrofund to cover the expenses associated with the LSI. Thares also mentioned there were four active prospects interested in locating in Monticello. Thares stated Wilson Development Services was contacted for service quotes. They 5 would primarily help with relocation services. Thares stated he would bring these quotes for consideration at the January EDA meeting if it was a needed assistance item. Thares also went over an update regarding the development of 413 West 4"' Street residential development and the Dahlheimer expansion project. Bill Demueles asked when the industrial land inventory workshop would be set up in January. The EDA agreed on a special meeting set up on January 11th, 2017 at 4:30 P.M. 13. Closed session — Consideration of recessing to closed session to develop or consider offers or counter - offers for the purchase or sale of real or personal property pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3), BILL TAPPER MOVED TO ADJOURN THE CLOSED SESSION. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED, 6 -0. 14. Adiourn BILL TAPPER MOVED TO ADJOURN THE REGULAR MEETING AT 7:55 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6 -0. Recorder: Jacob Thunander Approved: January 11 th, 201 Attest: /i ,, Economic Development Director on