07-22-2009 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, July 22nd, 2009
Meeting Minutes
Members present in bold.
Members
Tim Ulrich Diane Gordon Steve Jansick
Chad Czmowski Jim Haugen Mike McGraw
Staff
Miles Seppelt, EDA Director
Ryan Miller, EDA Assistant
Jeremy Carter, Finance Director
Liaison
Bill Corby, Chamber President
Call to Order
Mr. Ulrich called the meeting to order at 11:33 AM.
Approve Agenda
No action.
III. Review Meeting Minutes
A. June 24th Board of Directors
Marc Vaillancourt
M /S /P: Vaillancourt, McGraw to approve June 24th Board of Directors' Minutes as written.
Passed unanimously.
B. June 17th Finance Team
M /S /P: Jansick, Ulrich to approve June 17th Finance Team Minutes as written. Passed
unanimously.
IV. Review of June Financial Statements — Finance Director
• In operations the EDA has $106,900 in cash available, $22,736 is reserved
(proceeds of Warrior land sale)
• First half taxes have come in, a total of $72,909. In addition we've had $500 in rental
revenue for the month.
• In the Economic Development Loan Fund we have $78,445 in cash available.
• In addition we have a receivable of $32,461 for work done of the Stritesky Property.
• Notes receivable total $92,225 and all loans are performing as required.
• For the month we've had $2,258 in loan prepayments.
• In the Downtown Revolving Loan Fund we have $366,193 in cash, $732,901 in loans
receivable and $149,999 as a capital asset — that being the four Cenex lots on 3 d
Avenue.
• Loan repayments for the month totaled $9,104.
• In the MIF Loan Fund we have $118,321 in cash available and outstanding loans
totaling $590,993.
• For the month we have received $8,553 in loan repayments.
M /S /P: Vaillancourt, Haugen to approve the June Financial statements as presented.
Passed unanimously.
V. Director's Report
A. Cenex Redevelopment update
■ Staff is aiming for a final closing on the properties by July 31St
B. Industrial Park Grant
• Still awaiting word from the Federal Government on the status of our $950,000
grant application.
• The apparent low bid contractor has agreed to hold their bid price until
September 15th
C. Atomic Crane Corp.
• The project has a new name: "NuCrane Manufacturing"
• Looks like the project is moving ahead, with site work commencing shortly.
D. County EDA
■ The next step will be a workshop with the EDA Exploratory Committee and the
McLeod County Board on Tuesday, August 4th
E. BR & E Project
■ EDA staff will be working with Chamber staff to complete the last few business
visits in the manufacturer's census project. Once done all survey results will be
compiled and a final report put together.
F. Customer Elation Claim (update)
■ Braun Intertec has agreed to drop the final invoice to Customer Elation.
G. Wetherell Property (update)
■ EDA Staff has obtained three quotes to have the Wetherell house hooked up to
the city sewer system. It will be up to the Wetherell's to decide if they want to
have the work done at their own expense and continue renting the property.
VI. EDA Budget 2010
Staff presented a draft EDA Budget for 2010. Key points included:
■ Assumed zero rent
■ Levy kept at 1.525% $165,024
■ City wage freeze
■ Line Item cuts in:
➢ Wages, Temporary employees (intern)
➢ Office supplies
➢ Professional Services
➢ Postage
➢ Travel /school /conference
➢ Printing & publishing
➢ Improvements to land (Gateway)
➢ Machinery & Equipment
The budget for Taxes & Assessments was increased slightly to account for actual
expenditures in that area.
Staff noted that by keeping the levy amount at 1.525% of the city's tax capacity the EDA
would receive $165,024 for 2010.
M /S /P: McGraw, Vaillancourt to approve the budget as presented and request a levy amount
of $165,024. Passed unanimously.
VII. Cenex Property / Railroad Right -of -Way
Discussion was held on the 3 d Avenue ( Cenex) redevelopment project. Staff updated the
Board on the progress of the Wright - Property clean -up and upcoming steps.
Staff also reviewed the status of the other properties in the area. The four lots of the Cenex
site total 47,521 square feet and the two Wright lots total 8,243 square feet — giving an overall
total between the six lots of 55,764 square feet.
The key to successfully redeveloping the site might be the addition of the former railroad
right -of -way located between the six lots acquired and the Crow River — this would add
another 76,307 square feet.
If combined, the entire site would total 132,071 square feet, approximately 3.03 acres.
The former railroad right -of -way has a gravel portion of Les Kouba Parkway running over it at
present. There is no dedicated street right -of -way, and that portion of road serves no
purpose.
Another factor to consider is that the area is in a "shore land district" so only 25% of the site
can be covered with impervious surfaces (building & parking lot). More than anything, this
makes the addition of the railroad right -of -way a critical piece of the redevelopment effort.
M /S /P: McGraw, Czmowski to ratify the recommendation of the Finance Team (Requesting
City Council permission to add the railroad right -of -way to the redevelopment site and
permission to incorporate gravel removal, site filling & grading and planting of grass into the
neighboring Les Kouba Parkway project ). The motion passed unanimously.
Further discussion was held on the closing date for the four Cenex Lots and how the taxes
should be pro- rated.
M /S /P: Jansick, Haugen to pro -rate the taxes as of May 1 st. Passed unanimously.
VIII. Industrial Park Financing
Discussion was held on the status and structure of funding for the industrial park
infrastructure project.
The Finance Team has reviewed this and recommended that regardless of the funding
structure, there should be no special assessments on the industrial park lots.
After further discussion it was decided that until we know the outcome of the Federal grant
application no decisions can be made.
No action was taken.
IX. Grant & Loan Applications
Sign & Awning Grants
CORE Exercise Studio
101 Park Place
$2,000
M /S /P: Vaillancourt, Haugen to approve the grant request. Passed unanimously.
Venus Salon & Spa — Pulkerbek (2006)
47 Main Street North
$675
The applicants had received a Sign & Awning grant of $1,325 back in 2006. Their sign
suffered wind damage however and they are now requesting the balance of the allowable
grant to assist them with repairs.
M /S /P: Haugen, Jansick to approve the grant request. Passed unanimously.
X. Other Business — Customer Elation Request to exit the JOBZ Program.
Customer Elation has requested permission to exit from the JOBZ program due to the
administrative burden it places on the company. All of their job and wage requirements
would remain in place and the property will go back onto the property tax rolls.
M /S /P: Vaillancourt, Haugen to approve the request of Customer Elation to leave the JOBZ
program. Passed unanimously.
XI. Chamber Update
• RiverSong was successful.
• The "Hometown Golf Challenge" is scheduled for July 27tH
• There will be two Business After Hours events in August: "Best Buy" and "My Inspiration."
• The Arts & Crafts festival is scheduled for September 18th & 19tH
XII. Set Next Meeting — August 26th
XIII. Adjourn
The meeting was adjourned at 12:50 PM.
Respectfully Submitted,
Miles R. Seppelt
EDA Director