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HomeMy WebLinkAbout04-23-20 MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting April 23, 2020 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:00 p.m. Members Present: Simmons,Bernhjelm, Butterfield, Cordes, Craig, Hudlemeyer, Wilson Members Absent: None Also Present: Adam Kienberger, Community Development Director; Teah Malecha, Finance Director; Kalley Swift, Community Development Specialist 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA MOTION by Craig, second by Bernhjelm to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Bernhjelm, second by Wilson to approve the Consent Agenda as follows: a) Approved Meeting Minutes (February 27,2020, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) 345 Third Street Fletcher Building FaVade Improvement Grant Application Ms. Pam Heikkila, owner of the Fletcher Building located at 345 Third Street, applied for a fagade improvement grant in an amount of$10,000. The proposed project includes: Placing stucco on the north and east exterior walls $30,000 Install sheet metal flashing at the roof base $1,720 Electrical work$500 Total project cost is over$32,000 This building has been designated a Heritage Landmark. At their meeting on January 14,2020,the Planning Commission denied the request for a Certificate of Appropriateness because stucco did not meet the Secretary of Interior Standards EDA Minutes(Regular) April 23,2020 Page 2 for a historic building. The applicant appealed this decision to the City Council. On February 18, 2020,the City Council granted the Certificate of Appropriateness. Member Bernhjelm explained the Certificate of Appropriateness was approved because the north and east sides of the building do not face a public street. Chair Simmons asked if because these two sides of the building don't face the street, are there any concerns that the application does not apply to the intent of the fa9ade program. Member Bernhjelm stated no. This is a prominent building in the downtown and the structural integrity is important. Member Craig agreed, adding that it does meet the spirit of keeping the downtown looking presentable. Staff stated with this approval,there will be $10,000 remaining in the fagade improvement grant program for 2020. MOTION by Bernhjelm, second by Cordes to approve the fagade improvement grant application for 345 Third Street. APIF,MOTION CARRIED. b) Short-Term Recovery Program Ideas COVID-19 has resulted in struggles for businesses. There are government programs thru the Coronavirus Aid,Relief and Economic Security (CARES)Act available to businesses. The EDA was looking for a way to fill in the gaps. Staff asked if the EDA was interested in using unallocated funds or redirecting allocated funds for a business recovery program. At the last meeting,the EDA approved funding a redevelopment and property reinvestment program. Those funds could be pivoted into a business recovery program. Staff proposed two recovery programs: Utility fee program—This would be for businesses under 500 employees or those impacted by the Governor's executive orders. Funds would apply to the utility bill. Businesses would receive a one-time up to $500 grant for utility fees since March 17,2020, when businesses were directed to close. Funds would transfer from the EDA to the city's utility billing. Businesses would still be encouraged to utilize state and federal programs. Member Butterfield asked about the number of businesses this would impact. Staff explained a budgeted amount would be set aside. Restaurant recovery program—This program pertains to liquor license fees. The City Council waived liquor license fees for the month of April. Staff proposed a one-time $500 grant be paid from the EDA to the city to cover a portion of the fee. Member Wilson stated the utility billing program is intriguing, but we have to be mindful of city finances. The last thing we want is city goodwill and then run out of money. He asked if$50 or$100 to more businesses is better than$500 to a few businesses. If this isn't provided to all,then we should not do it. Member Bernhjelm agreed we would not want to prioritize businesses. She leaned more toward the utility program rather than restaurants. The City Council can decide if EDA Minutes(Regular) April 23,2020 Page 3 we want to waive fees again for May if this situation continues. She asked what other utility companies are doing. Finance Director Malecha stated the city does not shut off water. Delinquent accounts are certified to the property taxes. The City Council has waived late fees for the March utility bills. We are asking businesses to pay what they can. Other utility companies redirect them to government programs. This program pertains to just the city's utilities. Chair Simmons noted restaurants can now sell liquor and beer to go and asked if that will impact the City Council's decision. She did like the fact that these programs are a touchpoint to remind businesses of state and federal programs. Member Bernhjelm stated the amount to waive for the April liquor fees was minimal so it's not an issue that they can sell now. We don't know how long this will go on. She suggested tabling the restaurant recovery program for now and revisit it if this goes beyond May. Regarding the utility bill program,Member Bernhjelm agreed with $50 or$100 rather than $500. Staff noted for restaurants, one bill was $5,000 this quarter. That was when they were open, so the second quarter should be less now that they are closed. Member Bernhjelm stated basically this is a budget transfer. Staff noted$50 or $100 will probably not break a business, but over time it will impact the city funds. This could be done with City Council action and the EDA not be involved. Member Butterfield stated it aligns with our business retention and what better time to do this. He liked the utility billing program better than the restaurant recovery. Member Craig stated there are small businesses struggling because they are new and getting established and the landlord will not give a break on the rent. What can we do to help a business keep going to pay the rent? There is a need for a few businesses to use this. Member Wilson noted it is an investment in businesses. Chair Simmons suggested businesses less than 100 employees and keep it at$500. Staff noted if we get too complex we get trapped in our own bureaucracy. What message do we want to send locally? Many cities direct businesses to state and federal programs. It sounds like there is more appetite for the utility billing program. The applicant would provide their utility bill along with the application and we pay it. Member Butterfield agreed with doing something short term now rather than research for a month. Tailor it to small brick and mortar businesses and that is goodwill that could go far. MOTION by Butterfield to fund $10,000 to the utility billing program for up to $500 for businesses less than 200 employees. Member Wilson amended and seconded the motion to businesses with 100 employees. APIF,MOTION CARRIED. Redevelopment and Property Reinvestment Program—Not every business is able to get state and federal funds. This program expands grants outside of the downtown to make minor or significant repairs needed for their property. This program was approved at the last meeting, but staff asked if we should still move forward with it. Staff suggested putting a pause on the public improvement EDA Minutes(Regular) April 23,2020 Page 4 program. Member Craig felt we should keep this open and not commit funds to one program. Member Hudlemeyer agreed to pause the redevelopment program. Member Bernhjelm stated then we should consider the program to get public improvement projects done. Chair Simmons agreed if a business is not going to revitalize a building, we should use the funds elsewhere. Member Bernhjelm asked staff to come back with public improvement project examples and cost for the May or June meeting. Member Butterfield noted the site readiness program has not been utilized. It would be very low risk to reallocate funds elsewhere from that program. Member Hudlemeyer agreed public improvements show we are moving forward. Member Cordes noted it would give someone a job. Staff summarized we will bring examples and costs for public improvement projects and pause the redevelopment program. 9. DIRECTOR'S REPORT a) April Director's Report The Open to Business first quarter report was provided. The city has resources for recovery programs on the website. Business visits are paused for now. Member Butterfield suggested using Zoom for training those who will be doing business visits. 10. ADJOURN MOTION by Wilson, second by Cordes to adjourn at 6:55 p.m. APIF,MOTION CARRIED. Respectfully submitted, C&wtKcl MRLLer Cynthia Muller Administrative Assistant