HomeMy WebLinkAbout2020-10-21 EDA Meeting Minutes - Approved
APPROVED
CITY OF CENTERVILLE
ECONOMIC DEVELOPMENT AUTHORITY
MEETING MINUTES
Wednesday October 21, 2020
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centerville held a regularly scheduled Economic
Development Authority meeting on October 21, 2020 via videoconference.
I. CALL TO ORDER
President Hanzal called the meeting to order at approximately 6:32 p.m.
II. ROLL CALL*
PRESENT: President Jeff Hanzal
Commissioner Michael Giovinazzo
Commissioner D. Love
Commissioner Jim Weatherhead
STAFF: City Administrator, EDA Executive Director, Mark Statz
ABSENT: Commissioner Tom Wilharber
*Note that “present” is construed to mean that the noted individuals were visibly and audibly
present on the videoconference call
I. APPROVAL OF AGENDA
1. Call for Changes to the Agenda
Executive Director Statz stated that he had documents to add to the packet, but all were related to
existing agenda items.
Motion by Commissioner Love, seconded by Commissioner Weatherhead to approve the
agenda with the addition of the documents as noted by Executive Director Statz. A roll call
vote was taken. All in favor. Motion carried.
II. APPROVAL OF MINUTES
1. September 16, 2020 Meeting Minutes
Motion by President Hanzal, seconded by Commissioner Weatherhead, to approve the
September 16, 2020 Meeting Minutes. A roll call vote was taken. All in favor. Motion carried.
City of Centerville
EDA Minutes
October 21, 2020
III. BILLS AND COMMUNICATIONS
1. Bills
a. Claims through 9/11/2020
Executive Director Statz explained the bills that were listed in the packet materials; $150.00 for a
Chamber of Commerce membership, and $3,000.00 to Connexus Energy for the Excipio Data
Center Study. He also stated that the EDA now had their own checking account and the first check
written was in the amount of $175.00 to Main Street Marketers.
Motion by Commissioner Weatherhead, seconded by Commissioner Giovinazzo, to approve
the bills as presented. A roll call vote was taken. All in favor. Motion carried.
2. Communications
a. None
IV. REPORTS
1. Administrator’s Report
Executive Director Statz explained that the Excipio study has begun on the Rehbein property on
Fairview Avenue, and felt that the site would be very competitive in the market. He said that he
recently took a tour of a data center in Chaska and got a general feel for some of the costs that
would be expected, along with property values and the overall operation.
Atlas Villas has cleared trees from their lot and recently received their SAC determination from
Met Council. The permit is now ready to be issued.
The downtown street reconstruction is paved and was in the process of being back-filled when a
snowstorm came through on October 20, 2020.
Old Mill Estates still plans on paving the base course during the week of October 25-31, 2020.
Executive Director Statz stated that he has received a lot of calls from developers that would like
to build on the vacant land in the city. He attended an in-person land development summit at the
Radisson Blue at the Mall of America that was sponsored by Anoka County and the Minnesota
Real Estate Journal. He received inquiries about senior housing developments and a couple of
inquiries regarding a possible grocery store.
City Hall is nearing completion on construction in the office area. When it is finished, staff will
move back into the office and then construction will begin on the Council Chambers.
Commissioner Love asked Executive Director Statz to speak about the meeting with Mr. Rehbein
and his developer. Mr. Statz said that he met with two different developers when he met with Mr.
Rehbein. He said that Mr. Rehbein believes he has three tenants lined up; a gas station, a 100-unit
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EDA Minutes
October 21, 2020
apartment building, and a possible memory-care facility. He also stated that a developer wanted to
build a truck wash and facility to store truck trailers.
2. Year to Date Financials
Executive Director Statz explained that the money in the EDA account was spent with the
expenditures that were just approved. The City Council released the remaining funds in the annual
budget to cover expenditures that have been laid out.
3. Ongoing Programs
a. Blue Logo Sign Program
Executive Director Statz stated that he had been speaking with Vicky Byrne, the owner of Kelly’s
Bar and Grill. Ms. Byrne had learned that in order to put her logo on the blue highway sign, she
couldn’t use the word “bar”, however she was allowed to use a drawing of a beer mug. She had
also been told that she had to purchase the logo sign that is placed on the blue sign. Mr. Statz stated
that the sign was a one-time purchase of approximately $1,000.00, and he felt that since the EDA
had committed to paying 75%, they should extend it to the sign as well.
Commissioner Love asked if the money could come from CARES Act money. Executive Director
Statz stated that it depended on whether or not the council would look at it as “CARES funded”,
but was certainly an eligible expense.
Executive Director Statz stated that he had reached out to CenterMart, Corner Express and Wise
Guys to ask them to fill out their applications for the Blue Logo Sign Program before November
15, 2020, so that it could be paid for under the CARES Act, but he was not sure their paperwork
would be completed before the deadline.
b. CenterStage
Executive Director Statz introduced a flier promoting the programs offered by the EDA; the
CenterStage Program, the Highway Blue Sign program and loan and grant programs. . He stated
that developers call weekly to ask about available property, fees and incentives and he wanted
something he could give them. He asked for input from the commission. Discussion took place
regarding the flier, and it was decided to modify the document to reflect the fact that the Blue Sign
Program was limited to gas stations and restaurants.
c. Business Assistance Grant Program (CARES Act Funds)
Executive Director Statz stated that Anoka County had five million dollars to use for grants and
the initial grant was $10,000. They only received 273 applications and decided to give $20,000 to
those that qualified. Centerville had a good participation rate compared to other nearby cities, and
12 of our businesses had applied.
V. OLD BUSINESS
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1. Revolving Loan and Grant Program –7087 Centerville Road
Executive Director Statz summarized that the applicant submitted an invoice that appeared to show
costs for a driveway to the south of the building that was not a grant eligible expense. Mr. Statz
asked for a new invoice that showed the itemized costs, and reported that there was a discrepancy
between the old invoice and the new one. Mr. Statz asked for a copy of a canceled check to prove
that the applicant paid his contractor the amount on the invoice, and is now asking the EDA
Commission if they want to award the grant, even though the concrete was only colored and not
stamped as promised. There was discussion on adding language to the grant application stating
that any changes to the work applied for must be approved.
Discussion took place with the general consensus being that the property was improved, but the
applicant did not make all the upgrades that were promised. Some members stated that they don’t
want to make it difficult for businesses to use the grant program, but they also don’t want to set
precedence by awarding grants for work that was not done as promised.
There was also discussion regarding a high corner on the property and there was general concern
that it was a safety issue and needed to be repaired. The amount of money to award the applicant
was considered.
Motion by President Hanzal, seconded by Commissioner Weatherhead, to release payment
of the full grant amount of $5000.00, contingent upon the high corner safety issue being
addressed, reviewed and approved by city staff and the applicant showing canceled checks
for the work that was performed. A roll call vote was taken. All in favor. Motion carried.
VI. NEW BUSINESS
1. Business Coaching Program
Executive Director Statz stated that he had been approached by an individual at the Chamber of
Commerce regarding providing business coaching for businesses in the city. Mr. Statz asked him
to assemble packages to offer to Centerville businesses. Mr. Statz asked for input from the
commission regarding offering a potential 50% cost share, and a budget of approximately $2000-
$3,000 annually.
Discussion was had regarding the Open to Business program which is free of charge. Executive
Director Statz stated that he felt Open to Business was project and capital based, where business
coaching focused more on businesses that wanted to reinvent themselves. The general consensus
was that the grant program hadn’t generated a lot of interest, and the commission members would
like to send an email to the businesses on the email list asking if there is any interest in such a
program before dedicating money to it.
2. Accept the Resignation of Mr. Michael Giovinazzo and Declare a Vacancy on
the EDA Board.
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Executive Director Statz stated that he had been approached by Commissioner Giovinazzo earlier
in the year regarding stepping down from the EDA Board.
Commissioner Giovinazzo spoke briefly about how much he enjoyed his time on the Board and
stated that he had been looking for someone to replace him. Mr. Giovinazzo has also agreed to
stay on until a replacement can be found.
Motion by President Hanzal, seconded by Commissioner Weatherhead to accept the
resignation of Commissioner Giovinazzo, contingent upon the board finding a viable
replacement, and declare a vacancy on the EDA Board.
VII. ADJOURNMENT
Motion by, President Hanzal seconded by Commissioner Weatherhead to adjourn the
October 21, 2020 EDA meeting at 8:36 p.m. A roll call vote was taken. All in favor. Motion
carried.
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