Minutes of EDA Board Meeting s1

Minutes of EDA Board Meeting Thursday, December 22, 2011 7:00 a.m.

I. In absence of Chair Eckles, Past Chair Zitnak called the meeting to order at 7:00 a.m. in council Chambers of City Hall.

II. Members present: Allen Aukes, Kara Drake, Denny Zitnak, Rob Hammond, Jr.

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 Kluenenberg, Faribault County Development Corporation. Travis Kiester, FCDC Board of Directors Chair.

III. A quorum was present.

IV. DRAKE MADE THE MOTION, SECOND BY HAMMOND, TO APPROVE THE MINUTES OF THE NOVEMBER 16, 2011 BOARD MEETING AND THE NOVEMBER 16, 2011 WORK SESSION BOARD MEETING. THE MOTION WAS APPROVED UNANIMOUSLY.

V. The bills were provided in the EDA packet for the board to review. HAMMOND MADE THE MOTION, DRAKE SECOND, TO APPROVE THE REGULAR BILLS AS PRESENTED. THE MOTION WAS APPROVED UNANIMOUSLY.

The agenda was altered and direction was moved to VIII New Business: A & B, while a quorum was present:

VIII. New Business: A. FCDC Contract. Warmka explained the contract was the same as prior year with the only change relating to the length of the contract. Warmka explained she was asking for a 3-year contract. Discussion being held with concerns raised by Bailey that the levy was approved for 2012 and not committed for 2013 & 2014. Chair Keister stated that FCDC would accept a clause to the ability to receive funds based on levy. Zitnak stated he had no objection to a 3-year contract based on council approval. Drake concurred. Hammond would say yes to a 3-year with a possible 120-day out clause. The contract will be presented to the council at the first meeting in January. HAMMOND MADE THE MOTION, AUKES SECOND, TO A 3-YEAR CONTRACT, 120 DAY OUT, WITH A YEAR-TO-YEAR CLAUSE SUBJECT TO COUNCIL APPROVAL FOR EDA FUNDS. THE MOTION WAS APPROVED UNANIMOUSLY. B. Façade Grant. Warmka presented the grant from Mary Jo Tungland regarding improvements to her business located at 107 North Main Street. The improvements are within the guidelines of the grant. $1,000 would be awarded upon the completion of the $4,050.86 bid job. DRAKE MADE THE MOTION, HAMMOND SECOND, TO APPROVE THE FAÇADE GRANT FOR THE TUNGLAND PROPERTY. THE MOTION WAS APPROVED UNANIMOUSLY. With all voting items completed, the board returned to the next order of business on the agenda:

VI. Correspondence, Budget Update and Staff Updates.

A. Correspondence. There was no correspondence.

B. Loan update. Bailey reported the bond on the Century Building has been paid. Monies will go back to the revolving loan fund. Pay off for the bond was from the EDA. There will end up saving more because of the interest.

C. Budget update. Nothing to report.

D. Chamber of Commerce update. Cindy Lyon, Chamber of Commerce Director reviewed the hand-out presented.

E. Administrator’s update. Bailey discussed the Year-End TIF report she supplied to the board.

F. Faribault County Development Corporation update.  Warmka informed the board that she will be looking for officers for the BE- EDA Board as Zitnak and Malecha would like to step down.

Acting Chair Zitnak left the meeting.

 Warmka continued her report with the Region 9 Survey. This survey will be used as part of the CEDS document which can have an impact on federal EDA dollars supplied to our city, based on needs listed.  Industrial development has been progressing. Manske has given Warmka a price on the property north of I-90. Warmka attended the BEISCO meeting this week. Hammond expanded on the BEISCO organization. He stated that it was organized in 1956 as EDA development. BEISCO currently owns the property west of Aerospace, approximately 48 acres. The group has a desire to move to the area north of I-90 and not develop west of the city. Leave that as farmland. The group would like to explore the possibility of a trade with the owners. Basically, they would like to have the industrial to the north of I- 90 and sell west of Aerospace for funding of the industrial project.  Region 9 may have some funding for an incubator building. The federal EDA has funded that type of project in the past.  Warmka discussed the Administrative Report noting that Arron Kalis of Innate Wellness Center has been approved as a new board member of the FCDC.  Warmka reported on the meeting held with local manufacturing, the Workforce, Minnesota West, and BEA High School. It is hoped the class can start in February. Advertising will start in January in an attempt to obtain up to 12 good prospective students. The cost is $1,800/student. There is some funding for particular groups. Others may have to fund the course themselves. The classes will run for 5 weeks, 6 hours/day. The manufacturers attending the planning meeting stated they could each hire 2-3 graduates. Warmka is researching foundations for funding but there are none at this time. She will approach the county EDA to possibly help fund some of the students. The classes are being held at the BEA High School.  Kluenenberg reported on the 2011 housing rehabilitation/demolition program. There have been three change orders received that increased the dollar amount spent. The house located at 303 East 9th Street has been demolished. A portion of the house located at 523 4th Street East has also been demolished.

VII. Old Business. None.

VIII. New Business. Was previously discussed.

IX. Other Business. Bailey reviewed the year-end TIF report under Administrator’s Report.

X. Adjournment. With no other business to discuss, Hammond adjourned the meeting.

Next meeting will be scheduled for January 12, 2012 at 7:00 AM.