Loading...
EDA Minutes 09-13-2017MINUTES REGULAR M1ElETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, September 131h, 2017 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Steve Johnson, Tracy Hinz, Jon Morphew, and Jim Davidson Commissioners Absent: Bill Demeules, Bill Tapper, Lloyd Hilgart Staff Present: Jim Thares and Angela Schumann 1. Call to Order Steve Johnson called the meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items Jim Thares added Item 4.5 to the agenda. 4. Consent Agenda JIM DAVIDSON MOVED TO APPROVE THE CONSENT AGENDA. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 4-0. a. Consideration of approving Regular Meeting Minutes — August 9th, 2017 Recommendation: Approved the Regular Meeting Minutes — August 9th, 2017. b. Consideration of Workshop Meeting Minutes — August 9th, 2017 Recommendation: Approved the Workshop Meeting Minutes — August 9th, 2017. c. Consideration of approving pavment of bills Recommendation: Approved the payment of bills through August 2017. Regular Agenda 4.5. Consideration of adopting agreement between the Economic Development Authority, Citv of Monticello, Swan River School, Swan River Building Company, and Sherburne State Bank Jim Thares stated that the item was a housing keeping item and that the City Council already acted on the item in August, 2017. It is an agreement to complete refinancing for the school. The EDA is involved with this item because many years ago, the HRA was involved with the financing of the Monticello Community Center complex and there was a lease agreement between the HRA and users of the facilities and the grounds. The City Attorney is now asking that the EDA be involved with the new agreement because it is in the chain of title. A representative from Sherburne State Bank spoke stating that the bank was providing direct purchase tax exempt financing to utilize the lower cost tax-exempt interest rates. There is no recourse to the City in any capacity, as it the finance transaction is a private relationship between the Bank and the school. Tracy Hinz asked if the City Attorney has been involved. Jim Thares confirmed and stated that he has reviewed the agreements. Steve Johnson asked if this agreement put the City or EDA in a subordinate position to the bank in terms of a mortgage. Sarah Barthel, Sherburne State Bank, stated that there is no debt owed to the City/EDA, thus there is no recourse to the City/EDA either. Jon Morphew asked if it was transferring the Right of First Refusal from the School to the Bank. Morphew clarified that the City/EDA would purchase the building from the Bank instead of the School, if necessary. Ms. Barthel confirmed that was correct. Steve Johnson asked if a price was set. Sarah Barthel stated that it would be determined at fair market value. Morphew stated that the document indicates an appraisal process with appointment of a third appraiser if needed to bridge the differences in the first two appraisals. TRACY HINZ MOVED TO ADOPT AN AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY, CITY OF MONTICELLO, SWAN RIVER SCHOOL, SWAN RIVER BUILDING COMPANY AND SHERBURNE STATE BANK PERTAINING TO A PREVIOUS AGREEMENT TERMINATION (WITH EXCEPTION), AND ESTABLISHING A REVISED FIRST OPTION AND RIGHT OF FIRST REFUSAL TERMS. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 4-0. Consideration of First Amendment to Purchase Agreement for 220 West Broadway Jim Thares stated that the first amendment to the purchase agreement for 220 West Broadway was sought to extend the deadline of the closing to October 27"', 2017 because of the complexities involved with completing the easement research. Another reason is to add the request that the current property owner, Tom Holthaus, pay the 2017 annual easement maintenance fees before the EDA purchases the property — into the purchase agreement language. Steve Johnson asked for confirmation that the estimated costs of the association fees to take care of the easement is $700 to $800 per year. Thares confirmed and stated that Holthaus owns two properties in this area and it was a combined total of $1,500 for the year or $750 per parcel. Johnson asked if the assessment was a typical amount per year. Thares confirmed and added that in 2017 there was more maintenance of the parking lot and that it could be more for the current year. Tom Holthaus stated that a fair amount of patching occurred this year and did not expect that this would happen annually. 2 Johnson asked if he would anticipate a larger than normal amount for upkeep of the parking stalls in the future. Holthaus said he did not expect anything major to occur. JIM DAVIDSON MOVED TO APPROVE RESOLUTION 2017-04 AUTHORIZING THE FIRST AMENDMENT TO THE PURCHASE AGREEMENT FOR THE VACANT LAND LOCATED AT 220 WEST BROADWAY STREET. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0. 6. Consideration of Building Inspection Proposal from LHB, Inc. Jim Thares stated that this item was to enter into a TIF analysis of the former Fred's building at 349 West Broadway. To be conservative with the site and preserve the EDA's options for future TIF possibilities, Thares asked that LHB, Inc. be hired to qualify the building and property as blighted and substandard. Steve Johnson clarified that the consultant would identify that the property is blighted and subject it to redevelopment. Thares confirmed and added that it would preserve the opportunity to set up a TIF district over the next three years. Steve Johnson stated that at the time the building is removed, the three year clock would start. Thares confirmed and added that when a building permit is pulled to remove the building, the time period would begin. Tracy Hinz asked if the EDA didn't hire LHB, Inc., that the project wouldn't be eligible for redevelopment. Thares confirmed. Jon Morphew asked if the Pioneer Village was still an option for the existing building. Thares confirmed and stated that the township where it is proposed to be located has to issue a permit, which requires a separate inspection of the building by the township official. Hinz asked if the study by LHB, Inc. would still be valid and could qualify for a future project if Pioneer Village decided to not purchase the building. Thares confirmed. Morphew asked if hiring LHB, Inc. was necessary if Pioneer Village wanted the building. Thares confirmed. Johnson asked if the timeframe to complete the study works with the interested Pioneer Village owners. Thares confirmed that he spoke with the owner and that he was okay with relocating the building until around Thanksgiving time. Morphew asked for clarification. Thares stated that the study needed to occur regardless of the Pioneer Village proposal or a future proposal. TRACY HINZ MOVED TO AUTHORIZE ENTERING INTO A TIF QUALIFICATION INSPECTION SERVICES CONTRACT WITH LHB, INC. TO 3 COMPLETE A REVIEW OF FRED'S GAS STATION BUILDING LOCATED AT 349 WEST BROADWAY STREET. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 4-0. 7. Consideration of Adopting 2018 Mtarketins Plan Jim Thares stated that $20,000 to $22,000 was set aside in the EDA budget for marketing. Thares stated that the subcommittee (Bill Demeules and Bill Tapper) and City Staff met to discuss options. Thares stated that $21,830 was allocated for marketing in the budget for four areas: industrial, downtown (commercial and residential), housing, and general. He provided a detailed summary of what would be included under each category. Tracy Hinz asked if there would be flexibility. Thares confirmed and added that if any single expenditure was for more $1,000, the item would be subject to the EDA's approval. JIM DAVIDSON MOVED TO APPROVE THE 2018 EDA MARKETING PLAN. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0. 8. Director's Report Jim Thares stated that the Industry of the Year would be held on October 4th at 7:00 a.m. at the Monticello Community Center. A "save -the -date" information message would be sent out by City staff in the coming days. Thares also stated that the CEDS draft document was available for review and any comments that the EDA had could be sent to Jenn Russell, Central Minnesota Jobs & Training Services (CMJTS), or himself. Thares stated that City staff has already provided input to the plan. Thares also stated some discrepancies were found in the housing study. An updated copy was provided to the EDA. Steve Johnson asked Thares to provide the changes that were made to the plan. Thares agreed saying that the revised copy with highlights would be provided to the EDA. Thares explained that the Planning Commission unanimously approved the Small Area Study at their meeting on September 5th. The City Council would consider approving the plan on September 25th. If the plan is approved, City Staff and boards would meet in the near future to discuss implementation of the plan. Angela Schumann stated that full committees would be involved in the implementation of the plan. Thares said that the Wright County Broker Event would be held on September 19th from 8:30 a.m. until 12:30 p.m. Johnson asked if public and private owned commercial and industrial properties would be highlighted. Thares confirmed that was the plan and added that available sites for multi -family developments would also be displayed at the event. Thares provided a list of prospects and noted that follow up will be occurring with 4 Project #6580 to discuss possible financing options. Staff will also be providing a letter to Bondhus, Inc. regarding a financing package for an expansion at their current site. Thares played a video from the Wright County Broker Event that would be presented at the upcoming event on September 19th Tracy Hinz noted appreciation for the thoroughness of the Economic Development Director's reports. Jim Davidson asked if attention could be made to the Otter Creek Business Park sign. Thares confirmed that City Staff would look into it. 9. Adjourn JIM DAVIDSON MOVED TO ADJOURN THE REGULAR MEETING AT 6:38 PM. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0. Recorder: Jacob Thunander IqT Approved: October l 11h 2017 Attest: Thares, Economic Development Director