Minutes of EDA Board Meeting
Thursday, December 13, 2012 7:00 a.m.
I. Chair Rosenau called the meeting to order at 7:00 AM in Council Chambers of City
Hall.
II. Members present:
Bill Rosenau, Denny Zitnak, Rob Hammond, Jr., Allen Aukes, Bill Eckles, Kara Drake, and Chad Phillips
Members absent: None.
Staff present: Kathy Bailey, City Administrator.
Staff absent: Curt LaMaack, Blue Earth Light and Water.
City Attorney absent: David Frundt.
Executive Official present: Cindy Lyon, Chamber of Commerce.
Also present: Linsey Warmka and Ann Hanna, Faribault County Development Corporation.
III. A quorum was present.
IV. New Business:
A. Appointment of Officer – Chad Phillips
Mr. Phillips was in attendance at the meeting. The board introduced themselves. Mr. Phillips is the Plant Manager with Seneca Foods. Hammond commented that Mr. Phillips will be an asset to the board. He has prior EDA experience and Seneca Foods is one of the larger employers in the City of Blue Earth. Upon this board approval, appointment will be received at the next city council meeting (12-17-12).
HAMMOND MADE THE MOTION, SECOND BY ZITNAK, TO APPROVE THE RECOMMENDATION OF CHAD PHILLIPS TO THE EDA BOARD. THE MOTION WAS APPROVED UNANIMOUSLY.
V. Approval of Minutes:
· The minutes of the November 8, 2012 meeting were provided in the EDA packet for the board to review. HAMMOND MADE THE MOTION, SECOND BY DRAKE, TO APPROVE THE MINUTES OF THE NOVEMBER 8, 2012 BOARD MEETING AS PRESENTED. THE MOTION WAS APPROVED UNANIMOUSLY.
VI. Approval of Bills:
· The bills were provided in the EDA packet for the board to review. ECKLES MADE THE MOTION, SECOND BY DRAKE, TO APPROVE THE REGULAR BILLS AS PRESENTED. THE MOTION WAS APPROVED UNANIMOUSLY.
· Discussion was held regarding the Avalon Building. The building is owned by the City of Blue Earth. Asbestos testing has been completed. Results are yet to be received. Bob Gunther visited with Administrator Bailey regarding a Gunther Grant for demolition through DEED. The taxes paid for this building will come from the EDA budget.
VII.Correspondence, Budget Update and Staff Updates:
A. Correspondence:
· None.
B. Loan Update:
· Deibel Labs payment has been received.
· Coxworth payment is expected this week.
· All other loans as reported.
C. Budget Update:
· Nothing to report.
D. Chamber of Commerce Update:
· Chamber report was included in the packet for board review. Director Lyon reviewed the report. The Wonderland lights are looking for a new location for storage. The Chamber would need a 20 x 60 storage area. Mr. Phillips offered a large storage building located in Bricelyn. The Chamber feels the need to stay in Blue Earth as they work on the items throughout the year and transportation could be a problem.
In order to accommodate members that will need to leave the meeting early, the agenda was altered with New Business and Old Business presented at this time.
VIII.New Business:
A. Commercial Building Façade Grant:
· Winnebago Manufacturing, Co has submitted an application for a Façade Grant. They are completing a remodeling project at their facility in the amount of $63,500. The only portion of the remodel that qualifies for the Façade Grant is the removal and replacement of the window in the reception area. This amount is $1,100, therefore the amount of grant dollars is $550. ZITNAK MADE THE MOTION, SECOND BY ECKLES, TO APPROVE THE FAÇADE GRANT REQUEST FROM WINNEBAGO MANUFACTURING IN THE AMOUNT OF $550. DOLLARS. THE MOTION WAS APPROVED UNANIMOUSLY. Zitnak commended Winnebago Manufacturing for updating their facility in such a manner that shows their commitment to their business and the City of Blue Earth.
B. Loan Request – Dan Blaalid:
· Mr. Blaalid is wishing to purchase the Southern Jack’s Restaurant Business. This would be a contract for deed of $75,000 to give a 90% guarantee to the bank. The loan committee would recommend to deny this request. There is no experience in the restaurant business or collateral (financial stake) from Mr. Blaalid. HAMMOND MADE THE MOTION, SECOND BY DRAKE, TO DENY THE REQUEST FROM MR. BLAALID FOR A REVOLVING LOAN TO PURCHASE THE SOUTHERN JACK’S RESTAURANT. THE MOTION WAS APPROVED UNANIMOUSLY. Mr. Zitnak commented that at this time the loan request was denied based on the lack of experience in running a restaurant prior. Mr. Hammond commented that there was a Business Plan but needed a Balance Sheet and Income Tax Statements.
IX. Old Business:
A. Industrial Park:
· FCDC applied for and was granted a grant for $5,000 from AgStar to help pay for the Feasibility and Environmental Study for the new Industrial Park. Bolton & Menk will be creating this study. It is scheduled to be completed for the first council meeting in January. This study is not allowed as part of the Federal grant.
· FCDC and Region 9 are working on the Federal EDA Grant towards this project. Warmka will be traveling to Mankato to discuss the grant application. The application is due in March. Warmka and Region 9 will send the application to the Federal EDA in January. The Federal EDA will review and send back comments so that a final application, due in March, will be complete. Results of the application should be known in June so construction could start in late season 2013.
· The front part of the Industrial Park property is zoned Industrial, whereas the western portion is zoned agricultural. Annexing and zoning this property will still need to be computed.
· At this time Jean Dikken, Rural AgStar was present to award the City of Blue Earth with a check for $5,000 from the Fund for Rural America toward the cost of the Feasibility Study being performed for the Industrial Park north of the Interstate. AgStar sees this as a great opportunity for the City of Blue Earth to expand development north of the city. It is felt this venture will increase employment and opportunities in Blue Earth and Faribault County. Receiving the check was Bill Rosenau, Chair of the EDA; Mayor Hammond; and Mayor-Elect Scholtes.
XII. Correspondence, Budget Update and Staff Update – Continued
E. FCDC Update from Linsey Warmka: Highlighted items from the Administrative Report for November.
· The Tour of Manufacturing was held in October. Faribault County had two manufacturers participate: EDI, Blue Earth and Wells Concrete, Wells. Warmka attended a review session for the group that informed her all participants had 80 to 350 persons through the facilities. Warmka wanted to thank all who attended. There will be another tour in 2013. She hopes to get more participation in this area. Mr. Zitnak shared that the public was impressed with the EDI manufacturing facility. He attended only the tour in Blue Earth but wanted to share that the employees were very accommodating and he was impressed with the tour. He would like a letter sent to EDI from the BE-EDA thanking them for participating in the 2012 Tour of Manufacturing.
· Region 9 Development Commission’s Community and Economic Development Committee. Discussed the CEDS Document and the importance of a response from community members to the survey.
· She attended a Peer to Peer Incubator Meeting in Faribault. A tour of the Faribault Woolen Mills was included in the meeting. Discussion occurred on issues and opportunities of incubator buildings.
· Obtained City Council approval to move forward with the grant application process.
· Hanna reported that the Housing Rehabilitation will continue in 2013. Kick off in January. Bailey reported there is approximately $400,000 remaining in the funding for this program.
F. City Administrator Update:
· Administrator Bailey reported the final levy for 2013 was set at a 3.6% increase from 2012, which is down from the preliminary levy set at a 6.7% increase. Debt level has been reduced by paying off bonds and refunding bonds to lower interest rates. Seneca Foods TIF is completed. The Century Building has been paid off. The City has taken advantage of low interest rates. Capital improvement – five years of expenditures / equipment. Consolidation of 2013 with equipment bond. The plan will allow the city savings by the refunding of bond for the Public Safety Building with a $10 - $15,000 savings in the remaining years.
· The final Charter Commission meeting will be held December 27, 2012. This will review the Charter changes due to the election.
The agenda was now returned to as presented.
XIII.Other Business:
· Warmka wanted to take this opportunity to thank Allen Aukes and Rob Hammond for their years of service on the BE-EDA. Their input has been appreciated and they will be missed.
· Warmka asked that meeting time be adjusted to a 7:15 AM start time. The board was in agreement. Effective with the January 2013 the meetings will have a start time of 7:15 AM.
XIX.Adjournment:
· CHAIR ROSENAU ACCEPTED A MOTION FROM HAMMOND, SECOND BY DRAKE TO ADJOURN THE MEETING. THE MOTION WAS APPROVED UNANIMOUSLY.
Next meeting will be scheduled for January 10, 2013 at 7:15 AM
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