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HomeMy WebLinkAbout3.A. EDA Minutes from April 15, 2014Action Sought Move to approve the EDA minutes from April 15, 2014. Attachments: 04 -15 -14 EDA Minutes 3. A. Consent Business SM. K0PEE TO: Economic Development Authority FROM: Julie Linnihan, Finance Director /City Clerk DATE: 05/20/2014 SUBJECT: EDA Minutes Action Sought Move to approve the EDA minutes from April 15, 2014. Attachments: 04 -15 -14 EDA Minutes 3. A. OFFICIAL PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY SHAKOPEE, MINNESOTA Regular Session - April 15, 2014 Members Present: President Matt Lehman, Commissioners Brad Tabke, Kathi Mocol, Mike Luce and Jay Whiting. Staff Members Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; R. Michael Leek, Community Development Director; Bruce Loney, Engineer/Public Works Director; Julie A. Linnihan, Finance Director /City Clerk; Jim Thomson, City Attorney. Roll Call President Lehman called the meeting to order and roll was noted as above. 2. Approval of the Agenda Tabke /Whiting moved to approve the agenda. Motion carried 5 -0. 3. Consent Business Whiting/Mocol moved to approve the Consent Agenda. Discussion followed. Tabke /Whiting moved to add to the Consent Agenda, 4.A, Request for Reimbursement of Fagade Improvement Loan for Eagles Club, 4.B. Consideration of a Commercial Exterior Improvement Program Loan for Choice 100, LLC 405 1 st Avenue W., Shakopee, and 4.C., Consideration of a Commercial Exterior Improvement Program Loan for Bill's Toggery, Inc., 138 Lewis Street South, Shakopee. President Lehman asked for a vote on the motion. Motion carried 5 -0. 3.A Whiting/Mocol moved to approve the minutes from March 18, 2014. (Motion carried under the Consent Agenda.) 3.13 Move to approve bills in the amount of $351,253.83 for the EDA Fund. (Motion carried under the Consent Agenda.) 4.A Offer and pass a motion directing staff to reimburse the Eagle's Club, 220 2nd Avenue West, an amount of $2,040.00, consistent with the loan agreement for this fagade improvement. (Motion carried under the Consent Agenda) 4.13 Moved to approve a Commercial Exterior Improvement Loan in the amount of $13,759 and authorize the appropriate officials to enter into Repayment Agreement with Choice 100, LLC. (Motion carried under the Consent Agenda) 4.0 Moved to approve a Commercial Exterior Improvement Loan in the amount of $11,325 and authorize the appropriate officials to enter into Repayment Agreement with Bill's Toggery, Inc.. (Motion carried under the Consent Agenda. Official Proceedings of the Economic Development Authority 4. General Business April 15, 2014 Page 2 4. D. Consideration of a Commercial Exterior Improvement Program Loan for Journey Holdings, LLC, 2301st Avenue East, Shakopee Samantha DiMaggio, Economic Development Coordinator, said Journey Holdings, LLC, 230 1 st Avenue East, Shakopee, has requested assistance in the form of a deferred loan from the City's Commercial Exterior Improvement Program Ms. DiMaggio summarized the work that that will need to be done to the exterior of the building. The first estimate received was for $85,548 and the second was for $73,910. The program covers 50% of the total costs up to $15,000. Due to the extensive repairs required for this property, Journey Holdings, LLC. is requesting that Council consider a deferred/forgivable loan in the amount of $36,955. The Commercial Exterior Improvement Committee met on Monday, April 7, 2014 and recommended that this loan be approved in the amount of $36,955. Commissioner Luce opposes the amount requested but would consider $25,000 with an extension of the payback from five years to seven years. President Lehman and Commissioner Mocol want to follow the policy of $15,000 loan and a payback time of five years. Commissioners Whiting and Tabke would like to proceed with the request from Journey Holdings, LLC. Tabke /Whiting moved to approve a Commercial Exterior Improvement Loan in the amount $25,000 and authorize the appropriate officials to enter into a Repayment Agreement with Journey Holdings, LLC. Discussion followed. Mr. Thomson, City Attorney said the owner would be willing to do a Repayment Agreement for seven years and asks the EDA specify the length of the payout as part of the motion. Tabke/Whiting amended the motion to approve a Commercial Exterior Improvement Loan in the amount $36,955 and authorize the appropriate officials to enter into a Repayment Agreement of seven years with Journey Holdings, LLC. Discussion followed. President Lehman would like to see two separate applications of $15,000 each to follow the policy and not set precedence. Commissioner Luce agreed with President Lehman's proposal but would like to see a longer repayment period. President Lehman asked for a vote on the motion. Motion carried 4 -1 with President Lehman in dissent. Official Proceedings of the April 15, 2014 Economic Development Authority Page 3 4.E Authorization to Enter into a Service Agreement with the Shakopee Area Chamber of Commerce for the Mainstreet Program Ms. DiMaggio said In late 2013, meetings were held with the businesses located along the 101 Corridor and in the Downtown Business District. The purpose of the meetings was to find a way to focus attention upon, and provide for revitalization efforts of this portion of Shakopee. An option discussed to assist was to create a joint application between the City of Shakopee and the Shakopee Area Chamber of Commerce to participate in the Preservation Alliance of Minnesota's Mainstreet Minnesota Program. As a result, the City Council and EDA agreed to place $25,000 in the 2014 City budget for this membership. That amount would be the City's share of hiring a full time staff person to operate the Shakopee Mainstreet Program. The person hired to be the Mainstreet Coordinator would be an employee of the Shakopee Chamber. The program would be governed by a nine - person committee; membership is proposed to include one member of the City Council/EDA. Mocol /Tabke authorized the appropriate officials to enter into a service contract with the Shakopee Area Chamber of Commerce, for the Mainstreet Program. Discussion followed. Laura Peco, Mainstreet Coordinator, introduced herself and provided the EDA with her background. President Lehman asked for a vote on the motion. Motion carried 5 -0. 5. Adiourn Whiting/Mocol moved to adjourn to Tuesday, May 20, 2014 at 7:00 p.m. Motion carried 3 -0. 1 Julie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary