01-02-2013 EDAM (Dec Mtg)EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, January 2, 2013 (December meeting)
Members present in bold.
MEETING MINUTES
NAemhers
Tim Ulrich Steve Jansick Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Andy Reid, City Controller
Liaison
Mary Hodson, Chamber President
Call to order
EDA President Tim Ulrich called the meeting to order at 11:38 AM
II. Approve Agenda — No Action
III. Review meeting minutes:
A. November 28, 2012 Board of Directors
M/S/P: Vanderheiden, Christensen to approve the minutes as written; passed
unanimously.
B. November 21, 2012 Finance Team
M/S/P: Jansick, Czmowski to approve the Finance Team minutes as written; passed
unanimously.
IV. Review October EDA Financial Statements — Andy Reid
• Cash available in operations is $93,390
• $56,736 is reserved (proceeds from Warrior land sale) and $33,346 is unreserved.
• The Economic Development Loan fund has $605,974 in cash available.
• Loan payments for the month were $5,953.
• Downtown revolving loan fund has $188,943 in cash available, loans totaling $793,361
and $201,329 in capital assets (Cenex & Wright property).
• Loan repayments totaled $9,850 for the month.
• MIF Loan fund has $169,940 in cash available and loans receivable of $357,292
(NuCrane).
• Loan payments for the month were $5,640.
M/S/P: McGraw, Vanderheiden to approve the financials as presented; passed unanimously.
V. Director's Report
A. Depot Marketplace Redevelopment — grant decision should be the week of January 8th
B. NuCrane MIF grant de -federalization — paperwork complete, awaiting DEED action
C. EDAM Marketing Award presentation — 12:15 to 1:15 PM, Thursday, January 24th @
Minneapolis Marriot Southwest
D. Marketing Plan Update: — Continuing bulk mailings. Thus far:
a. Brochures 625/1130
b. Postcards 570/1000
VI. Jump -Start Downtown Business Plan Contest — consider final authorization, set dates
(Cost: $16,000 plus Sign & Awning Grant, to be funded from Downtown Revolving Loan Fund)
Staff provided a final review of the proposed business plan contest. Discussion followed.
M/S/P: McGraw, Czmowski to approve the Jump -Start Downtown Business Plan Contest as
presented. Passed unanimously.
The contest will be formally announced at the Chamber Banquet on January 25tH
VII. Incubator Building Project
A. Project Update
Staff updated the Board on the status of the project. Currently we are still waiting to get
the final version of the grant agreement back from the State of Minnesota. Should be any
day now.
B. Sale of Stritesky Property
1. Authorization to proceed
M/S/P: Czmowski, Christensen to proceed with the immediate sale of the Stritesky
Property at auction, with Fahey Sales to handle the transaction. Passed unanimously.
2. Petition for detachment (to return parcel to the township)
Staff reported that the realtor, Jim Fahey, strongly recommended that the property be
detached from the City and returned to the Township, as this would result in a better price
for the property. Consensus was to proceed immediately with the detachment process.
C. Use of Stritesky sale proceeds
Discussion on the use of proceeds from the Stritesky Property sale. Consensus was that
we would reimburse the Economic Development Loan Fund $32,461 for costs incurred
when the parcel was being considered for the new industrial park, with all remaining
proceeds being used to help fund the incubator building.
D. Consideration of EDA Resolution 2013-1 — Contribution for Incubator Project
Staff presented a proposed Source & Use statement for the Incubator Building project.
One of the grant requirements is that we provide documentation for "total project
funding." Discussion followed.
M/S/P: Vanderheiden, McGraw to approve EDA Resolution 2013-1, appropriating
$850,000 from the economic development loan fund for the Incubator Building Project.
Passed unanimously.
E. Authorization for establishment of TIF District for project
Staff noted that the business incubator will be on the property tax rolls, as it will be rented
to "for profit" companies. As a result, an Economic Development TIF District could be
established — allowing for the capture of a portion of the property taxes to help fund the
project.
M/S/P: Jansick, Czmowski to authorize use of an Economic Development TIF District to
help finance construction of the Incubator building. Passed unanimously.
F. Consideration of EDA Resolution 2013-2 — Advancing TIF dollars for Incubator project
Because the Economic Development TIF District would be a "pay-as-you-go" district, it would be
necessary for the EDA to advance dollars for the project up front, and then be reimbursed, plus
interest, over the life of the TIF District.
M/S/P: McGraw, Christensen to adopt EDA Resolution 2013-2, advancing $100,000 from
the economic development loan fund for the construction of the business incubator
building, to be reimbursed from tax increment proceeds, plus interest. Passed
unanimously.
VIII. Request for $100,000 in support of the Luce Line Trail paving project
The EDA Board reviewed a letter from Mayor Steve Cook requesting $100,000 for Luce Line
Trail paving initiative. Discussion followed. Consensus was that completion of the Trail
would provide an economic boost for the City.
M/S/P: McGraw, Vanderheiden to authorize $100,000 from the economic development loan
fund as part of the City's contribution of $750,000 for the Luce Line Trail project. Passed
unanimously. Czmowski abstained.
IX. EDA Board of Directors — Recommendation for new EDA Board member (filling Mike
Retterath vacancy)
Various candidates were discussed and the list narrowed to three. Staff was asked to email
ballots to each of the Board members. The candidate receiving the most votes would be
forwarded to the Mayor as the EDA's recommendation for the position.
X. Grant & Loan Applications — None.
Staff updated the Board about the possibility of a grant application from the new owner of
Thimbleberries.
XI. Chamber Update
Mary Hodson gave an update on Chamber activities.
XII. Other Business — EDA pay of $1 per board member was distributed.
XIII. Set Next Meeting — January 23rd, 2013
XIV. Adjourn — 12:49 PM.
Respectfully Submitted,
Miles R. Seppelt, EDA Director