EDA Minutes 07-11-2018MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, July 11th, 2018 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, and Jim
Davidson
Commissioners Absent: 011ie Koropchak-White and Lloyd Hilgart
Staff Present: Jim Thares and Angela Schumann
1. Call to Order
Steve Johnson called the regular meeting of the EDA to order at 6:00 p.m.
2. Roll Call
3. Consideration of additional agenda items
None.
4. Consent Agenda - Item 4a through 4g
BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA WITH THE
REMOVAL OF ITEM G. JON MORPHEW SECONDED THE MOTION. MOTION
CARRIED, 5-0.
a. Consideration of approving Joint Cit_v Council -EDA Meeting Minutes — June
4, 2018
Recommendation: Approve the Joint City Council -EDA Meeting Minutes — June
452018
b. Consideration of approving Regular Meeting Minutes — June 13, 2018
Recommendation: Approve the Regular Meeting Minutes — June 13, 2018.
c. Consideration of approving Special Workshop Meeting Minutes — June 13,
2018
Recommendation: Approve Special Workshop Meeting Minutes — June 13, 2018.
d. Consideration of approving payment of bills
Recommendation: Approve payment of bills through June 2018.
It was noted that the Cuningham Group invoice ($7,000) would be recoded to the
City Council and the Chamber lunches would be reviewed for correct coding.
e. Consideration of Hazardous Materials Abatement and Demolition quotes —
255 East Broadway
Decision 1: Asbestos Abatement
Recommendation: Select Bergo Environmental, Inc. in the amount of $6,223 to
remove and dispose of asbestos.
Decision 2: Demolition Quote and/or Ash Removal
Recommendation: Select Carlson Construction in the amount of $5,250 to remove
burned buildings and foundation or select Schluender Construction Company in
Economic Development Authority Minutes — July 11, 2018 Page 1 1 4
the amount of $7,500 for removal of complete buildings and foundation (if the
Fire Department is unable to complete the fire training).
C Consideration of Administrative Modification of Affordable Housing TIF
District #1-40
Recommendation: Adopt EDA Resolution #2018-15 approving an Administrative
Modification to the TIF Plan for Affordable Housing TIF District #1-40.
g. Consideration of Contract for Private Redevelopment with Rivertown
Residential Suites, LLC
ITEM WAS REMOVED FROM THE CONSENT AGENDA.
4g. Consideration of Contract for Private Redevelopment with Rivertown
Residential Suites, LLC
Jim Thares indicated that the contract for private redevelopment was the final
item for the affordable housing TIF district. The EDA and City Council approved
the TIF district at the previous June meeting.
Thares indicated that the project calls for a $785,000 worth of TIF assistance to
Briggs Properties and $400,000 upfront financing assistance for underground
parking. Briggs is required to provide 10 affordable units with tenants making less
than 50 percent of the County median income ($47,150).
Tammy Omdal noted the modification to the TIF plan and the agreement. Under
the modified TIF Plan - and reflected in the Agreement — the amount of
developer's cost subject to reimbursement was reduced from $862,000 to
$785,000 because of reductions in project costs and the interest rate increasing to
5.5% over the term of the note. Omdal stated that the rate was reasonable because
of market conditions.
TRACY HINZ MOVED TO ADOPT EDA RESOLUTION #201.8-16
APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN
RIVERTOWN RESIDENTIAL SUITES, LLC AND THE CITY OF
MONTICELLO EDA AS RELATED TO AFFORDABLE HOUSING TIF
DISTRICT #1-40. BILL TAPPER SECONDED THE MOTION. MOTION
CARRIED, 5-0.
5. Consideration of Downtown Facade Improvement Grant Program and Downtown
Frontage and Signage Grant Program Guidelines
Steve Johnson noted that a workshop meeting was held prior to the regular meeting to
discuss the Downtown Fagade Improvement Grant Program and Downtown Frontage
and Signage Grant Program. It was discussed with minor adjustments and would likely
be approved at the next regular EDA meeting in August.
BILL TAPPER MOVED TO TABLE ACTION FOR ADDITIONAL DISCUSSION.
MOTION CARRIED, 5-0. JIM DAVIDSON SECONDED THE MOTION CARRIED,
5-0.
Economic Development Authority Minutes — July 11, 2018 Page 2 14
6. Consideration of Preliminary 2019 EDA Budget and HRA Lew
Jim Thares asked for feedback of the proposed 2019 Special Benefit (HRA) Levy. In
2018, the EDA voted to set the levy at the maximum level of $323,000. The maximum
levy for 2019 is $348,000 which is an increase of $25,000. Thares suggested that the
EDA consider the maximum levy again in 2019 because of new efforts and programs
such as the Downtown Fagade Improvement Grant Program, Downtown Frontage and
Signage Grant Program, the proposed housing rehabilitation program, and potential
acquisition of property in the downtown area.
It was asked how the $348,000 value was determined. Thares confirmed that it was a
percentage of the overall market value of property in the city. It was noted that in order
for the EDA to receive the full projected levy in 2019, there would have to be zero
delinquent property tax payments. A small amount of interest and a land lease are also
minor revenue sources for the EDA.
BILL TAPPER MOVED TO RECOMMEND TO CITY COUNCIL $348,000 FOR
THE 2019 SPECIAL BENEFIT (HRA) LEVY. JIM DAVIDSON SECONDED THE
MOTION. MOTION CARRIED, 5-0.
7. Director's Report
Angela Schumann explained that staff is leading a new initiative in the downtown called
"Downtown Rounds". The purpose of the meetings is to be an open forum with business
and property owners in the downtown to talk about what's happening in the downtown.
The first meeting would occur in August at Lucy Murray's Studio of Dance.
Jim Thares provided the Economic Development Report. Thares followed up with detail
about the MIF One -Time Exclusion Opt Out Program. The figures that MN -DEED
approved as accurate were a total MIF FUND of $291,183. The 20% amount that is
being returned to the State General Fund is $58,237. The balance being split 50-50 with
the City is $232,946. Bill Tapper asked why the City Council would be given half of the
money. Thares indicated it was a recommendation to the City Council that the City's 50
percent of the remaining funding, be dedicated to downtown improvement projects by the
City Council, so in effect it is additional funds directed to the EDA's downtown
redevelopment goals.
Thares stated that an updated prospect list would be emailed to the EDA. One additional
prospect was recently added to the list.
Thares explained that the City's Arts Initiative was ramping up. The consultant is looking
for a space to complete projects and would like to use the EDA property at 349 West
Broadway. The consultant would like to begin using the building in August and the
Park's Department would be responsible for the utilities and maintenance.
Steve Johnson asked if the electric utilities were turned off. Thares confirmed that staff
Economic Development Authority Minutes — July 11, 2018 Page 3 14
shut the services off in late May.
Jon Morphew asked if a lease would be executed. Thares questioned if it was needed but
would defer to the EDA if that is the desire. Davidson asked about the hazardous
materials found in the building.
Schumann stated that staff would talk to the EDA's Attorney about the lease and
indemnification of the hazardous materials. Schumann recalled that most of the
hazardous materials found in the building were non -friable and are safe if left
undisturbed.
Steve Johnson stated that if the Park's Department could bring the building up to a safe
and sound condition, they could occupy the building. He further stated that it is important
that if a lease is created that it includes a 30 -day notice of vacation of the property in case
redevelopment opportunities came along.
JIM DAVIDSON MOVED TO ALLOW THE USE WITH THE CONDITION THAT
THE PARKS DEPARTMENT WOULD BE RESPONSIBLE FOR ANY INCREASED
COSTS, THE CONTRACT WOULD SITPULATE THE BUILDING AS SAFE AND
USEABLE AND AN ACCEPTABLE FIT FOR THE LAND USE. BILL TAPPER
SECONDED THE MOTION. MOTION CARRIED, 5-0.
8. Adiourn
BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:31 P.M. JIM
DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 5-0.
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 #155011000010,
155010031031,155010031010
Recorder:
Jacob Thunander pzr
Approved:
August 8, 2018
Attest.
Ji hares, Economic Development Director
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