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HomeMy WebLinkAbout12-20-18 MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting December 20, 2018 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. Members Present: Larson, Craig, Cordes, Jolley, Simmons, Wilson Members Absent: Corraro Also Present: Adam Kienberger, Community Development Director; Jeff and Kristie Kerr, Homestead Community Church; Kara Hildreth 2. PLEDGE OFALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Jolley, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Cordes, second by Simmons to approve the Consent Agenda as follows: a) Approved Meeting Minutes (October 25, 2018, Regular Meeting) b) Approved Meeting Minutes (November 29, 2018, Special Meeting) c) Received Monthly Financial Statements APIF,MOTION CARRIED. 8. DIRECTOR'S REPORT a) December Director's Report Riste Lot- In the past the EDA has discussed the Riste lot on Oak Street next to the Exchange Bank building and whether to sell it or what to do with it. Jeff and Kristie Kerr with Homestead Community Church have a purchase agreement to purchase the Exchange Bank building. They have expressed an interest in the Riste lot. Mr. Kerr stated their church has been using the Faith United Methodist Church. They have been working with Mr. Hosmer Brown for the last few years to purchase the Exchange Bank building. Regarding the Riste lot, there is no intent right now to build on the lot. They would keep it green space and use it for an outdoor church gathering space. For church services they would use on-street parking and the Second Street parking lot. The downtown is quiet on Sunday mornings so parking should not be an issue. They have 150 members. Member Wilson asked if they would be looking to the city for help in restoring the historical characteristics of the building. Ms. Kerr stated the building has been inspected and they have obtained the costs for what they would need. They EDA Minutes(Regular) December 20,2018 Page 2 are currently obtaining financing. They do not want to change the character of the building. The grant money will help to get it back to what it should be. In its current state, the building does not have a certificate of occupancy due to a number of deficiencies inside the building. Children classrooms would be downstairs and the upstairs would be great for the main meeting space. Their church enjoys throwing parties and inviting the community. The outdoor space would also be used for church events. Regarding the purchase of the Riste lot, it is owned by the EDA. In 2012 or 2013 Community Development Block Grant(CDBG) dollars were used to fund part of the acquisition and demolition of the Riste building. There are some repayment provisions upon the sale of the lot to a private entity. The price is determined by an appraisal which came to $25,000. The EDA is obligated to repay to the CDBG program 76.9%of the sale price. The funds go back into Farmington's block grant dollars. Community Development Director Kienberger stated first we need to determine if the EDA is interested in what the Kerr's have proposed for the lot. The appraisal will need to be refreshed. Member Jolley stated the EDA needs to know if it will be attractive and fit into the neighborhood as it is the heart of downtown. Mr. Kerr stated their desire is to add aesthetic value and bring new life to the downtown. Ms. Kerr stated they have been given a six to nine month renovation timeline, so they hope to be done by the fall. If they acquire the Riste lot as well, any work there would be done at the same time. Member Craig asked about the property to the back of the lot and whether it needs to be fenced off. There are large boulders there now to keep vehicles off the lot. Staff stated about four years ago the Planning Commission approved a conditional use permit to operate a church within the downtown business district for the Exchange Bank building. That piece remains in place. What has not been explored is this as a stand alone use and whether the Riste lot would be an accessory use. An agreement needs to be drawn up with any provisions and to have things done within a certain amount of time. The EDA can accept less than the appraised amount, however, the 76.9% is assessed against the appraised market value. The EDA should receive an offer on the lot first, and then the appraisal would be refreshed. Staff asked if the EDA had any contingencies they would like included in the agreement. Chair Larson suggested having the lot work completed by October 1, 2019. Member Wilson would like to see a sketch plan for the outside area. The steps would be to have this discussion first, get a general consensus of the concept, move to the next formality of offering a price, negotiate any improvements to be made by a specific date and then any applications for grant programs. Ms. Kerr asked if the grant program is per person or per property. Staff stated we have the Facade Improvement Grant Program which is for exterior EDA Minutes(Regular) December 20,2018 Page 3 façade improvements and dollars are controlled solely by the EDA. So there is some discretion that can take place. The grant range is from $1,500 to $10,000. The Block Grant Program is dollars received through HUD via the CDA and has a maximum grant amount of$35,000. Our current balance in that program is $21,038.50. The grant programs are focused on one per property. They can both be applied for and could both be accepted at the EDA's discretion. The Façade Improvement Grant Program is for building façade improvements and the CDBG program is for code improvements, so the Riste lot would not be eligible. Staff will continue to work with the Kerr's on procedural issues. Highway 3 Corridor Plan—There was a joint work session with the city council on December 10, 2018, to review public comments and provide direction to the consultant. Staff is scheduling the next set of meetings for public input and additional collaboration with the city council, EDA and planning commission. The plan should be completed in April 2019. Façade Grant Update—The improvements at 306 Oak Street are complete and a grant payment of$10,000 has been authorized. 2019—2021 Strategic Plan for Economic Development—This will be discussed at the January 2019 EDA meeting. Member Simmons asked about the status of the sponsorship packages for the Rambling River Center Plaza because we are going into another spring and people are hoping to see some progress. She asked if that can be a standing item on EDA agendas. Staff spoke with the city council at a recent work session to discuss funding strategy and cost and how it relates to the 2019 budget. We will be using 2019 to raise the funds. Member Simmons stated so construction wouldn't start until 2020 or 2021 and the plan was approved two years ago. Staff explained they have been communicating between the city council and different agencies on funding. Member Jolley noted the plaza is not an EDA project, but we were asked to contribute dollars. Staff explained the project lives within community development, parks and engineering. 7. DISCUSSION ITEMS a) Community Development Block Grant Funds 2019 CDBG funds are received each year from the CDA. We are scheduled to receive an estimated $39,703.50 in CDBG funds for program year 2019 (July 1, 2019— June 30, 2020). Our task is to tell the CDA how we plan to spend those funds. Staff proposed three activities: $5,000 to Senior Services—Financial Support Program to support seniors in attending programs and activities. $13,961.50 to the Commercial Rehabilitation Grant Program—right now we have $21,038.50 left and this addition would equal $35,000 which is the maximum grant amount. EDA Minutes(Regular) December 20,2018 Page 4 $20,742 to the Residential Rehabilitation/Home Improvement Loan Program— this is administered by the CDA for income qualified households within Farmington to make eligible improvements to their properties. There is usually a wait list for this program. We are allowed the flexibility through CDA administrative approval to reallocate funds within these three programs as long as it is within the same year. MOTION by Wilson, second by Craig to recommend the city council approve a resolution to allocate a total of$39,703.50 in CDBG funds for PY2019 as outlined above. APIF,MOTION CARRIED. 9. ADJOURN MOTION by Wilson, second by Cordes to adjourn at 7:23 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Administrative Assistant