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EDA Minutes 06-14-2017MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, June 14th, 2017 — 6:00 p.m. Mississippi Room, Monticello Community Center Present: Bill Demeules, Jon Morphew, Jim Davidson, Lloyd Hilgart Absent: Bill Tapper, Steve Johnson, Tracy Hinz Staff Present: Jim Thares, Angela Schumann 1. Call to Order Bill Demueles called the regular meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items Jim Thares requested the addition of the Shred -N -Go site regarding a proposed financing concept. 4. Consent Agenda JIM DAVIDSON MOVED TO APPROVE THE CONSENT AGENDA. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0. a. consideration of approving Regular Meeting Minutes — May 10"', 2017 Recommendation: Approved the Regular Meeting Minutes — May 10"', 2017. b. Consideration of approving Special Workshop Meeting Minutes — May 311t, 2017 Recommendation: Approved the Special Workshop Meeting Minutes — May 31St, 2017. c. Consideration of approving payment of bills Recommendation: Approve the payment of bills through May, 2017. Regular Agenda 5. Consideration of Adopting 2017 Housing Study Jim Thares stated a workshop meeting was held prior to the meeting to discuss the housing study. Jon Morphew asked what the impact would be to accepting the study. Bill Demueles stated that the EDA would approve the general concept of the plan and would not bind anyone to anything particular. JIM DAVIDSON MOVED TO APPROVE THE 2017 HOUSING STUDY. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0. 6. Consideration of Preliminary Comment/Feedback of Downtown Small Area Study 1 Draft Jim Thares explained that the consultant took feedback from the joint meeting with the Planning Commission, EDA, Parks Commission, and City Council on May 31St and melded it into an updated plan. Thares requested that no action take place until a formal presentation by the consultant at the June 21 st special meeting. Bill Demueles mentioned that the Planning Commission would review the plan at their July 11"' meeting and the City Council would review the plan at their July 26th meeting. Jim Davidson added that as a member of the Small Area Study Steering Committee he was impressed with process and development of the overall plan. Jon Morphew stated that he was concerned with the City's ability to implement the plan, but appreciated that the consultant broke down the goals into short, medium, and long term strategies and investments. Lloyd Hilgart commented that the plan was more realistic and appropriate than the previous plan. 7. Consideration of Appointing EDA Member to Ellison Property Evaluation Sub - Committee BILL DEMUELES MOVED TO TABLE ACTION OF APPOINTING A MEMBER OF THE EDA TO THE ELLISON PROPERTY DUE TO A LACK OF EDA MEMBERS PRESENT AT THE MEETING. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 4-0. 7.5. Additional Agenda Items — Shred -N -Go Jim Thares reminded the EDA that Shred -N -Go presented at the April meeting. Following that meeting, a workshop meeting occurred to discuss land pricing overall in Otter Creek Business Park and a closed meeting was held to discuss a land offer to Shred - N -Go. Shred -N -Go has since been working with their bank to put together a finance plan. The development would be about a two million dollar project. They have applied for a thirty percent loan through GMEF, however there is a requirement of ten percent owner equity. Shred -N -Go has proposed waiving the ten percent requirement. Thares mentioned a possible compromise. In addition, he stated that Shred -N -Go would like to apply for TIF assistance, which would be possible after the EDA reimburses themselves for the cost of the land. There would be an excess increment of $113,000 above the reimbursements for the land cost. Under this compromise, Thares stated that the bank loan would be fifty percent, the SBA would be forty percent, the GMEF loan would be five percent, and the owner equity would be five percent. Demueles stated that at a five percent compromise, the applicant would request a GMEF loan for $100,000. Thares stated that if the EDA wants to consider modifying the owner equity guidelines for all applicants moving forward, an item would be brought forward at 2 a future EDA meeting. Demueles questioned whether a public hearing would be required prior to voting on this proposal. Thares stated the last time the GMEF guidelines were amended, no public hearing was held. Lloyd Hilgart asked for clarification on the land offer to Shred -N -Go. Thares stated no subsidy was a part of the offer. Hilgart asked if the EDA would have to pay the five percent ahead of time. Thares declined and said that it would be set up as a "pay as you go" system and that the owner would still need to come up with the up -front costs. Jim Davidson asked if under the ten percent GMEF equity requirement, if they would still be under the "pay as you go" system. Thares confirmed. Lloyd Hilgart asked if this has been done before. Demueles declined and added that a GMEF loan has not been issued in over 10 years. Jon Morphew asked if City Attorney stated that the guidelines for the loan fund could be waived. Thares stated that she did not mention either way. Demueles commented that in 2005 the guidelines were last amended. Angela Schumann confirmed that in 2005 the EDA looked at all of the business subsidy programs and guidelines and adjusted some of the business subsidy rules so that a public hearing would not always be required. Schumann stated staff would verify with the City Attorney the reason for the change to guidelines and if approval of guidelines could occur on a case by case basis. Hilgart expressed opposition to having no money down on a loan fund request. All EDA members were in consensus. 8. Director's Report Jim Thares stated he had a BRE meeting with Production Stamping and hoped to schedule one with Aeroplax soon. He also provided an update on current prospects including: Shred -N -Go, a DEED Prospect, and Project Novus. A loan application was expected to be received for a possible brewery and taproom. This would be an item considered at the July meeting if received in time. Thares added that the artist of the downtown artwork project — Sue Seeger has created a blog and that her progress can be seen using the link on the staff report. Thares stated that he would be attending an inforinational session regarding the Transportation Economic Development Infrastructure (TEDI) Program and would share the information at a future EDA meeting. A volunteer picnic would be held June 22nd from 6-7 pm at Ellison Park. Thares encouraged each of the EDA members to attend. Thares also informed the EDA that businesses have contacted him to promote economic development in Monticello by having annual publications. He stated that many cities do some sort of publication and that a small budget is set aside for the EDA to complete this. Hilgart asked if there was a specific roadway or intersection that the TEDI program could fund. Schumann stated that a staff meeting would occur to discuss capital improvement projects and that a number of projects could fit the parameters for the grant program. 9. 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). PID # 155010067100 & #155010036090 10. Adiourn Jim Davidson moved to adjourn the meeting at 7:00 pm. Lloyd Hilgart seconded the motion. Motion carried, 4-0. Recorder: Jacob Thunander� Approved: July 11, 2017 Attest: TTl res, Economic Development Director 11