EDA Minutes 01-11-2017MINUTES
REGULAR MEETING - ECONOM1C DEVELOPMENT AUTHORITY (EDA)
Wednesday, Janauau•`T 11th, 2®17 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Present: Bill Demeules, Steve Johnson, Tracy Hinz, James Davidson, and Lloyd Hilgart
Absent: Bill Tapper
Staff. Angela Schumann, Jim Thares, Jacob Thunander
1. Call to Order
Bill Demeules called the regular meeting of the Monticello EDA to order at 6:00 p.m.
2. Roll Ca11
3. Approve Meeting Minutes:
a. Special Meeting — December 14th, 2016
LLOYD HILGART MOVED TO APPROVE THE SPECIAL MEETING
MINUTES FROM DECEMBER 14TH, 2016. STEVE JOHNSON SECONDED
THE MOTION. MOTION CARRIED, 4-0-1 WITH TRACY HINZ
ABSTAINING DUE TO HER ABSENCE AT THE MEETING.
b. Regular Meeting — December 14"', 2016
TRACY HINZ MOVED TO APPROVE THE REGULAR MEETING MINUTES
FROM DECEMBER 14TH, 2016. STEVE JOHNSON SECONDED THE
MOTION. MOTION CARRIED, 5-0.
4. Consideration of additional agenda items
None.
5. Consideration of approving payment of bills
LLOYD HILGART MOVED TO APPROVE THE DECEMBER PAYMENT OF
BILLS. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 5-0.
6. Consideration of Loan Underwriting Proposal from Central Minnesota
Development Company (CMDC)
Jim Thares explained the potential for several loan applications in the next twelve
months. Thares mentioned concerns with the amount of time it takes to underwrite loans
and requested entering into an agreement with Central Minnesota Development Company
(CMDC) to help facilitate the process. A list of cities that have contracted with CMDC
for similar services was provided. It was noted that these communities had positive
working experiences with the organization. The price for underwriting would cost 1.5%
or $4,000, whichever is greater. This cost could potentially be transferred to the
borrower.
Kevin Weeres, Vice President of CMDC, introduced himself to the EDA.
Bill Demeules asked how long CMDC has been helping underwrite loans. Weeres replied
that the business has been established since 1978 as a private non-profit, certified
development company. The primarily responsibility of CMDC is to originate Small
Business Administration (SBA) 504 loans which is an economic development and job
creation program. Weeres noted that CMDC has been working with cities for similar
services for the past seven years. In addition to underwriting services, CMDC can assist
with loan servicing.
Bill Demeules asked if CMDC provides loan compliance services for job and wage
requirements and reporting through the life of the loan. Weeres replied they do not
provide those types of services, but they could assist with the collection of payments and
servicing.
Steve Johnson asked if there were differences between the SBA loan underwriting
services. Weeres commented that the CMDC uses the same guidelines as the SBA. If
applying for a SBA loan; CMDC, SBA, and the banks could provide underwriting.
Bill Demeules suggested that a certain loan amount be set by the EDA to participate in
loan underwriting for cost effectiveness.
Lloyd Hilgart asked about the GMEF loan fund. Thares replied there was 1.3 million
dollars set aside. Demeueles commented that the original loan fund was established from
a $300,000 liquor fund. The EDA, before merging with the HRA, used the interest from
the liquor fund combined with interest from county and state loan funds, to establish the
current fund balance.
Steve Johnson asked if the City Council has been using underwriting services. Thares
noted that if the EDA authorized a loan underwriting service with CMDC, he would also
propose the City Council have a similar service.
Tracy Hinz asked what the EDA's actions could be. Weeres stated that if the EDA
approved the CMDC to enter into an underwriting agreement, they would craft a contract
with the specific services they would provide.
Lloyd Hilgart asked when the last GMEF loan was approved. Angela Schumann stated
the loan fund was utilized in a commercial project in the mid -2000s, but there are
currently no funds being used. Schumann noted that only one loan has defaulted in the
history of the fund.
TRACY HINZ MOVED TO AUTHORIZE THE EDA TO REVIEW A DRAFT
AGREEMENT FROM CMDC TO ENTER INTO LOAN UNDERWRITING
SERVICES WITH FINAL APPROVAL AT A FUTURE MEETING. STEVE
JOHNSON SECONDED. MOTION CARRIED, 5-0.
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7. Consideration of approving ratification of Steering Committee for Small Area Study
and appointment of EDA representatives to Steering Committee
Jim Thares mentioned the Steering Committee for the Small Area study has begun
forming with representation from the City Council, EDA, Planning Commission, Parks
Commission, IEDC, Chamber of Commerce, and at -large members. Thares asked that
two members from the EDA be selected to sit on the Steering Committee.
Concerns with a quorum of the EDA were discussed.
Bill Demeules asked how the at -large members would be selected. Angela Schumann
recommended that two members that have either property or business ownership in the
downtown be selected for the committee.
JIM DAVIDSON MOVED TO APPROVE THE RATIFICATION OF THE STEERING
COMMITTEE STRUCTURE TO SUPPORT THE SMALL AREA STUDY PROCESS
WITH THE ADDITION OF ONE CHAMBER OF COMMERCE MEMBER. TRACY
HINZ SECONDED THE MOTION. MOTION CARRIED, 5-0.
BILL DEMEULES MOVED TO APPOINT TRACY HINZ AND STEVE JOHNSON
AS REPRESENTATIVES FOR THE DOWNTOWN SMALL AREA STUDY
STEERING COMMITTEE. LLOYD HILGART SECONDED THE MOTION.
MOTION CARRIED, 5-0.
8. Consideration of appointing EDA member to Prospect Committee
Jim Thares explained that at the last EDA meeting, President Demueles was selected for
the Prospect Committee to help facilitate and consolidate the process. Thares requested
the appointment of an additional EDA member, preferably a City Council member.
TRACY HINZ MOVED TO APPOINT JIM DAVIDSON TO THE PROSPECT TEAM -
LAND SUBSIDY DISCUSSION COMMITTEE. STEVE JOHNSON SECONDED THE
MOTION. MOTION CARRIED, 5-0.
9. Director's Report
Jim Thares explained that Wright County, Sherburne, Benton and Stearns Counties, the
Central Minnesota Jobs and Training Services Center, the Federal EDA and the Initiative
Foundation will be creating a Comprehensive Economic Development Strategy (CEDS)
for the 7W District. A community conversation will occur on January 26th to discuss
Human Capital. This is an 15 month process with regular meetings, which are open to the
public to attend.
Thares also mentioned a second draft Housing Study is being prepared by WSB. The
EDA will be considering adoption of the completed Housing Study at a future meeting.
Thares noted the City has four active prospects including: a large international firm,
Groebner Inc., Shred -N -Go, and a precision machining firm.
Lastly, Thares stated that April Studer has signed the purchase agreement for the sale of
349 West Broadway. The EDA will also sign the agreement for finalization. The closing
date is April 5th, with an expected remodel completion of July.
10. Adiourn
STEVE JOHNSON MOVED TO ADJOURN THE REGULAR MEETING AT 6:48
P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 5-0.
Recorder: Jacob Thunander
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Approved: February 8th, 201
Attest:
Economic Development Director
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