Loading...
HomeMy WebLinkAbout08-25-16 MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting August 25, 2016 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Bonar, Cordes,Jolley Members Absent: Corraro,Wilson Also Present: Adam Kienberger, Community Development Director Audience: Patrick Connery,Gina King, Leon Orr 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Jolley, second by Cordes to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS Patrick Connery,20991 Chippendale Avenue,he would like the rocks cleaned up along the sides of the roads for the bikes. 6. CONSENT AGENDA MOTION by Cordes, second by Jolley to approve the Consent Agenda as follows: a) Approved Meeting Minutes (7/28/16 Regular Meeting) b) Received Monthly Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Commercial Rehab Grant Amendment and Extension—Farmington Bakery The EDA previously approved a rehabilitation grant for the Farmington Bakery to do some rehabilitation to their business. The grant included matching funds of $13,250. Because of the improvements,there have been additional issues identified with the building. Therefore,they are requesting an extension to the grant timeline and additional funds of$10,225 to complete the work. Ms. Gina King explained the additional improvements that are needed. The total grant would be$23,475,which is still below the maximum allowed amount of$35,000. MOTION by Jolley,second by Bonar to approve the grant amendment for the Farmington Bakery in the amount of$10,225 making a total of$23,475. APIF, MOTION CARRIED. EDA Minutes(Regular) August 25,2016 Page 2 b) Riste Lot Discussion Update The Riste lot is owned by the EDA. Several years ago,the city used CDBG dollars along with other funds to demolish a building on this lot. Mr. Leon Orr is interested in purchasing this lot. Because CDBG dollars were used, 76.9%of the sale price needs to go back to the CDBG program. The lot has been appraised for $25,000. Which means$19,225 would need to go back to the CDBG program. The EDA agreed to a selling price of$25,000 for the Riste lot. Mr. Leon Orr stated this will be for the Last Hope office he and his wife run in Farmington. He felt the price was reasonable. Mr. On has some issues with the business to work out and will be in contact with the EDA. c) Approve Quit Claim Deed—AK Performance Graphics Inc. The city sold the building at 308 Elm Street to AK Performance Graphics in 2010. The required improvements to the building have been completed. Therefore,the city needs to be removed from the mortgage. MOTION by Bonar, second by Cordes to approve the Quit Claim Deed between the EDA and AK Performance Graphics Inc. APIF,MOTION CARRIED. d) VRC Hy-Vee Deferred Assessments Business Subsidy Agreement Hy-Vee has proposed to build a store in Vermillion River Crossings. When the VRC development was started,assessments were levied against the parcels to fund the infrastructure including the bridge and streets that serve this development. The city was to enter into a tax abatement agreement to reimburse the developer for the assessments once improvements were made to the property. Since then,VRC reverted to the banks. In order to make a market rate sale of the property with Hy-Vee,the$2 million in assessments would be removed from the property. The City Council would need to approve a Business Subsidy Agreement for assessments assigned to outlots A and C of Vermillion River Crossing. Hy-Vee would need to create at least 20 jobs paying a wage of at least$13/hour. The EDA would need to recommend this approval to the City Council. A public hearing is scheduled for the September 19, 2016, City Council meeting to approve this agreement. Staff has recently been informed there is a party interested in purchasing another outlot in VRC for a professional business. The lot has an outstanding assessment balance of$57,000. The brokers are asking if the city would be willing to participate in the outstanding assessments for that lot as well. They are requesting a 25%to 30%reduction in the assessments, or about$15,000. The remaining assessments would be paid by the purchaser at closing. A few years ago,the EDA had budgeted as part of some local government aid funds of$50,000 to pay off the assessments to facilitate the development of a hotel. The assessments on the outlots are deferred,which means they stay at an amount and accrue interest until the properties are sold. The hotel lot assessments EDA Minutes(Regular) August 25,2016 Page 3 are active,where they are paid down every year as part of the assessment payments. Today the hotel lot has an assessment balance of$35,000. The EDA has$50,000 in the budget for assessments which could be used for the $35,000 in assessments for the hotel lot and the$15,000 for the outlot for the professional business. The EDA was receptive to this proposal. MOTION by Cordes, second by Larson to recommend approval to the City Council of a business subsidy agreement with Hy-Vee Inc. related to the deferred assessments on outlots A and C of the Vermillion River Crossings development provided they create at least 20 jobs paying a wage of at least$13/hour. APIF, MOTION CARRIED. 9. DIRECTOR'S REPORT There is a vacancy on the EDA and interviews will be conducted August 29,2016. Staff plans to have the seat filled in time for the September EDA meeting. The Trident development is under construction. One item in the Downtown Redevelopment Plan is developing a green space next to the Rambling River Center. The Rambling River Center Advisory Commission and the Parks and Recreation Commission have reviewed the concepts. There will be a public meeting to include surrounding business owners to receive their input. EDA members asked about gauging the interest of the business owners in updating the rear of their buildings. Staff could offer them to apply for CDBG grant dollars. 10. ADJOURN MOTION by Cordes, second by Bonar to adjourn at 7:34 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Administrative Assistant