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HomeMy WebLinkAbout2019-09-16 EDA Minutes (signed) City of k#,SEVILLE Minnesota,USA Minutes Roseville Economic Development Authority (REDA) City Council Chambers, 2660 Civic Center Drive Monday, September 16, 2019—6:50 p.m. 1. Roll Call President Dan Roe called to order a meeting of the Roseville Economic Development Authority (REDA) in and for the City of Roseville at approximately 6:50 p.m. Voting and Seating Order: Willmus, Laliberte, Groff, Etten, and Roe. Present: President Dan Roe and Board Members Robert Willmus, Jason Etten, Wayne Groff, and Lisa Laliberte. Others Present: Attorney Martha Ingram, Executive Director Pat Trudgeon, Community Development Director Janice Gundlach, and Housing & Economic Development Program Manager Jeanne Kelsey 2. Pledge of Allegiance 3. Approve Agenda Willmus moved, Etten seconded, approval of September 16, 2019 Economic Development Authority Meeting Agenda. Ayes: 5 Nays: 0 Motion carried. 4. Public Comment Mayor Roe called for public comment by members of the audience on any non-agenda items. No one appeared to speak. 5. Business Items 6. Business Items a. Consider Approval For Authorization To Enter Into Private Redevelopment Contracts And Providing The Form, Terms, Covenants, And Directions For The Issuance Of The Tax Increment Revenue Note with Walton Holdings, LLC And 2720 Fairview MKT, LLC For Redevelopment Of 2720 Fairview Avenue Housing and Economic Development Program Manager Jeanne Kelsey provided a brief summary of this request as detailed in the staff report and attachments dated September 16, 2019. Ms. Kelsey noted city staff has been contacted by and met with the Carpenters Union who has raised concerns over wage theft and general worker REDA Meeting Minutes—Monday,September 16,2019 Page 2 exploitation by this developer. The developer has not been charged or convicted of a crime and stands by their reputation for constructing high quality multi-family and office development. She explained staff has worked with EDA Attorney Ingram to address those concerns by incorporating language that is in section 4.4 of the contract. In addition to that language, other language has been added to section 9.1 regarding the developer and if it is found guilty of any crime it would be an understanding of default under the contractual agreement with them. That means the EDA would have the right to withhold any TIF payments at that time. She noted there is no financial assistance upfront and is a pay as you go note TIF. Attorney Ingram explained EDA staff has been extremely responsive to the concerns that have been raised and has been very proactive about approaching her with requests for language that can safeguard that the EDA is protected in case there is any evidence of wage theft on this project. President Roe asked for clarification on the assistance using TIF. He asked if it was correct to describe the source of the funding for the TIF assistance provided as coming only from taxes paid by properties within the TIF district, and no other city taxpayers, and that the assistance was only provided on a 'pay-as-you go' basis using the collected increment each year to reimburse allowable development expenses Ms. Kelsey explained that was correct. She noted every year when property taxes are paid twice a year there is a portion that comes back to the city and that is the TIF assistance. Member Groff thought if there were any issues during construction or because of wage theft or other abuses, because the TIF is not paid up front, that would come up before that money is paid out. Ms. Kelsey indicated that was right and would be a reason for default and for the city to withhold any payment. Mr. Nick Walton, part owner of Reuter Walton Construction, Inc., made a short presentation of the history of the company and the current proposed project. Mr. Walton explained regarding TIF, it is not only taxes generated within the District, it is taxes, literally, that are generated by the project's specific building. The project has to create the tax before any TIF is received. He indicated since the project is fully approved, tonight would typically be more of a formality in the TIF process, especially since the due diligence process to approve TIF has already occurred. His company was told that the Carpenter Union was at the city and trying to enter this conversation at the eleventh hour and, in their words "kill the deal", which is why he was at the meeting speaking. Walton noted that until now, the city has been interacting with Kyle REDA Meeting Minutes—Monday,September 16,2019 Page 3 and Paul from the Reuter Walton team but he wanted to speak tonight to address why North Central States Regional Council of Carpenters (Carpenters Union), is present tonight and why the Union has been reaching out to as many of the Council as possible. He explained the Carpenter's Union wants more of their work and that is it. But, instead of meeting with Reuter Walton to talk about it, the Union's approach has been to meet with neighborhood groups, planning commissioners, Council members in every city that Reuter Walton is trying to work in and use false information, some of which he would briefly touch on for clarity, to bully their way into getting more contracts from Reuter Walton. Mr. Walton wanted the Council to think about all of their time and others in similar roles that the Carpenter's Union is wasting, and all of the drama being stirred up, which is really nothing more than a contract negotiation with Reuter Walton, whom the Carpenter's Union never even met with. He noted Reuter Walton has asked the Carpenter's Union six times this summer to meet with them. The Carpenter's Union tries to kill Reuter Walton's deals in hopes this tactic will scare Reuter Walton into hiring the Union more than it already is. He noted that Reuter Walton is already hiring Union subs including the carpenters, all of the time. Mr. Walton indicated on average, Reuter Walton jobs typically have eighty percent union subs, which comes down to four-fifths of every job. This year to date, Reuter Walton is at eighty-five percent, which was checked this morning. In the last eighteen months, Reuter Walton has awarded $10.5 million in work to Union carpenter subs and today, Reuter Walton has three large projects being actively framed by Union carpenters, totaling 533 units and over the next few months it is contracted to start another 465 units with Union framers compared to this project which is only 127 units. Mr. Walton explained even with all of that work, the group likes to point to two times when the Department of Labor technically gave Reuter Walton violation letters. The Department of Labor has never clarified what those letters were for and Reuter Walton has been told this Union implies the violations were for large-scale wage issues, which is incorrect. The violations had nothing to do with the development or commercial GC divisions. The letters were related to the single-family home division, which has eight employees and does residential remodels in a couple of new homes per year. He explained most importantly, those violations were due to a half dozen mom and pop sub-contractors not having their paperwork current with the Department of Labor. The only thing Reuter Walton was guilty of was not catching that the sub-contractors were behind in their paperwork and that is all. He noted that is not okay, but it is nothing like what this group implies the letters might have referenced. Reuter Walton's total fine was one thousand dollars. That is the full extent of Reuter Walton issues related to the Department of Labor. REDA Meeting Minutes—Monday,September 16,2019 Page 4 Mr. Walton provided a few clarifications on misinformation, noting this group has tried to use in their bullying strategy against Reuter Walton. Today he saw a post on Facebook that a gentleman by the name of Eric was exploited by someone named Jose Marino. Reuter Walton immediately searched its server and so far, there is no record of knowing this person though his staff asked their Director of Operations to do a further investigation and what was written looks absolutely horrible. He explained this has nothing to do with Reuter Walton and his company does not engage in human trafficking, wage theft, or otherwise break any other laws. These are words that have never even come up in his office until this year, until this contract negotiation, and the one time that Reuter Walton's name was associated with a bad act and in the paper, it was Reuter Walton and Lennar that were referenced. After that investigation, the report found that Reuter Walton engaged in no wrong doing. Mr. Walton indicated he had a packet, and thought the Council had one too, of the compilation of what the Carpenter's Union has said Reuter Walton has done wrong. He noted the only two actual references to Reuter Walton in the entire packet are those two letters to the Department of Labor and the one occurrence that was in the paper. In spite of having no connection or fault, because Reuter Walton is so opposed to actions like this, his company has taken proactive steps in the organization and projects. Mr. Walton noted his company met with CTUL, a local non-profit focused on worker's rights, over seven months this year to try to help influence positive change in the construction industry. Reuter Walton learned it was the only developer and contractor to even attempt this process with them. His company also created a sub-contractor certification and now requires all of their subs to sign it, which addresses topics like wage enforcement, workers compensation, labor trafficking, and they are in the process of creating a compliance officer role within the organization to further these efforts. At a recent project in St. Paul, his company has proved that the neighborhood group could inspect the sites to verify Reuter Walton is doing what they sat they are doing. Reuter Walton remains open to other proactive ideas like the ones created. He noted that even while Reuter Walton takes all of these measures on its own initiative, this group has not been willing to engage in any constructive dialogue over the issues the Union claims to be so concerned about. He stated hopefully, this helps everyone in the room understand that Reuter Walton is not a bad actor. Mr. Walton stated people are glad to have Reuter Walton in their communities working. He noted his company is in unchartered water with this smear campaign by the Carpenter's Union. Mr. Walton explained each year Reuter Walton donates tens of thousands of dollars to local non-profits, like Lutheran Social Services, and even larger than that Reuter Walton not only volunteer at Habitat for Humanity as a company REDA Meeting Minutes—Monday,September 16,2019 Page 5 but are on their third year in a row sponsoring an entire new home for a well- deserving family when being the lead sponsor for Raise The Roof event. Walton indicated he expects some of the people in the room to get up and continue their smear campaign against Reuter Walton. Based on their actions to date, he anticipated many of their statements to be so egregious that he will not be getting back up to respond. Rather, he will sit and take notes and forward them to Reuter Walton's attorney so the attorney can use any incorrect statements in the cease and desist action against them. Member Willmus verified that the additional contractual language that has been developed by EDA Attorney Ingram was seen by Mr. Walton and he was willing to follow and abide by that additional language. Mr. Walton explained he was absolutely agreeing to abide by that and to clarify, the entire project needs to be built and only then it will create the tax base that creates the TIF that gives his company the credit to offset the project. He indicated that was understood and his company was comfortable with that. Member Laliberte assumed the positive steps that Mr. Walton listed out where CTUL is involved, subcontractor expectations, and inspections by others would be amenable to his company. Mr. Walton agreed. President Roe offered an opportunity for public comment. Public Comment Kim Nelson, 700 Olive Street, St. Paul Ms. Kim Nelson, North Central States Regional Counsel of Carpenters, 700 Olive Street, St. Paul, explained she was at the meeting to do the right thing and represent the workers that need protection, whether members or not. The group stands against authorization of this redevelopment and asked that no public subsidy go to this project at all. She indicated with her were two people who worked for subcontractors that Reuter Walton has continually hired and are at the meeting speak, give a little more insight, and shed some light on what the construction industry considers to be a seedy underbelly. She noted the group was at the meeting to do the right thing and asked the EDA to hear the two men out who are at the meeting with great risk to themselves and their families. Eric Mr. Eric, (speaking in Spanish with an interpreter), was at the meeting to speak to the EDA about what happened to him at Reuter Walton job sites as he was REDA Meeting Minutes—Monday,September 16,2019 Page 6 working for Caliper. He explained when he started to work for Jose Marino as an employee for Caliper on Reuter Walton job sites, Mr. Marino promised him somewhere to work, somewhere good to live, and a means to support his family. He stated once he started working for them, a set price was offered but once he was working with them the company started lowering the price of his wages and he would stop paying them telling them that he did not have the money to pay them. He stated they would ask Caliper if Reuter Walton would pay him and Caliper would say that yes, Reuter Walton had paid him. Ask Reuter Walton. They would also go to Reuter Walton and ask if Caliper had gotten paid and Reuter Walton would tell him that Caliper has been paid. That is how things kept on going for a while. Everyone would say things are going well and no one wanted to pay him. He noted he stopped working for Jose Marino after that because Mr. Marino had his family living in poor conditions. He went to the Department of Labor to open a case so he could try to recoup some of his money, but he started receiving calls from Jose Marino intimidating him and stating he would kill him and his family. After that, he was not feeling safe. He asked himself why he was being threatened if he was just making an honest living. He tried talking to his wife and telling her that everything was going to get better. He explained he was with his wife, at home eating and he received a telephone call from Jose Marino telling him that the Department of Labor had contacted him and that if he did not drop the case he had against Jose Marino, he would kill him and his family. He needed to drop this case because he did not know what he was getting himself into. After that he did not know what to do and felt intimidated. He did not know who to talk to and simply felt that it would happen any day. He just wanted to say one thing, he wanted to point out that Reuter Walton is the company that hire subcontractors like Jose Marino and that company needs to realize the type of companies that are being hired by them because the type of workers are honest workers. He indicated that just because the company is at the top of the food chain and the workers are at the bottom and the workers are screaming at the company to do change. But, the company is never going to hear them, that is Reuter Walton. He wanted the community to realize the conditions his family lives in and the threats he receives on a daily basis. He wants the community to realize that every time a project goes up and it is considered beautiful, he wants the community to start thinking about the workers who built those buildings and ask themselves if those workers have gotten paid because to work for $16.00 an hour, working six to seven days a week, ten to twelve hours a day, he did not think this was just for them to be going through this. He wanted the community to realize what is going on today and now. He wanted to say sincerely that this is still continually going on as an exploitation. To the workers and not to him, to benefit him financially for all of the money that he has not gotten paid but to make Minnesota what it is. Samuel Samuel (speaking in Spanish with an interpreter), explained he also worked for Jose Marino and Caliper. He also went through the same things that Eric went REDA Meeting Minutes—Monday,September 16,2019 Page 7 through. He was working in North Dakota and was offered a job to come to Minnesota to start working. His family came to get a better life but unfortunately, it was one of the lowest points his family has ever been in. He worked for Jose Marino last year on a big project on Xenia Avenue that he thought would be ongoing for three to four years. Jose Marino provided his family with a place to stay and offered great pay but that never happened. Once Joe Marino stopped paying him, he went to Caliper to confront them, was not able to get anything, and also spoke to the superintendent of the job site and no one wanted to help them. He was going around in circles. He explained he also went to the Department of Labor and out of ten-twelve workers, only five of them wanted to go through and talk to the Department of Labor. Jose Marino went to the Department of Labor who had the case and was telling them he was waiting on the payment from Caliper who was waiting on the payment from Reuter Walton and promised him that he was trying to pay them. He never kept with his promise and then his son started to receive phone calls from Jose Marino telling them to drop the case. Jose Marino never called him, but he kept calling his sons. His sons did not want to continue doing that, so his family left for North Dakota to go work again. In October 2018, Jose Marino called him back and asked him to work for Caliper again and Jose Marino was going to pay everything owed to him. The same thing happened again when he came back in October 2018 and nothing was every received. It got to a point where Jose Marino would pay him but would not pay all of the other workers, so he left Caliper again. When he went back to Jose Marino to get his last two weeks of pay, Jose Marino confronted him and got physical. Jose Marino told him he was not going to get paid and that is where it was going to end. He left Jose Marino and found work otherwise. He was still trying to recoup the money, but nothing has happened so far. He stated 22 workers of Jose Marino stopped working because those workers have not been getting paid for several weeks. It has been over three weeks where the workers have not been paid. He does not know who it is that has not been paying their bills but if it is from the GC, it is a subcontractor or Jose Marino, but the workers keep getting the same answer. A lot of the workers are afraid to speak up and this needs to stop. If Reuter Walton says it is paying the subcontractors, then Reuter Walton needs to make sure and enforce that the workers are actually getting paid. Pastor Dana Nelson, Galilea Lutheran Church in Roseville Ms. Dana Nelson, Pastor from Galilea Lutheran Church in Roseville, explained she learned about this from the pastors of the Lutheran Churches in Roseville. She thanked Eric and Samuel for coming forward. She is speaking on behalf of people of faith in Roseville. She thanked Mr. Walton for being at the meeting and for giving to Lutheran Social Service. She noted she has lived in Central America and Peru for most of her adult life so when she hears about these people being in danger, she hears them. Dr. Mohiba Tareen, 1835 West County Road C REDA Meeting Minutes—Monday,September 16,2019 Page 8 Dr. Mohiba Tareen, Dermatologist at Trained Dermatology, 1835 West County Road C, explained the main goal of the office building is to expand Tareen Dermatology. Tareen Dermatology is busting at the seams and there are patients in Roseville that want to come in who cannot because there is no space. There are currently seventy employees and jobs could be given to many more people and keep the business in Roseville. With the potential office building there would be room for other medical tenants with medical specialties that are not represented in Roseville. This would be overall good for the tax base and for jobs. There are many employees of hers that are young and want to live in Roseville but cannot find new, nice, high quality housing and have to go to other cities. It would be great for her employees who want to live in Roseville in the potential new apartment building. She wanted the union workers to know that she is the union dermatologist for the Pipe Fitters Union. She knows Mr. Walton personally and he is very ethical. She knows he will do right by people and is excited to support Mr. Walton in this potential project. Sherry Sanders, South East Roseville Resident Ms. Sherry Sanders, resident of South East Roseville and was at the meeting to share her concerns that the Council has moved to fast on the approval of this without due diligence on this project. There are many references in the press and media about labor violations associated with this private developer. Even if there is even a remote chance that labor abuses can occur on this site, she did not want public funding supporting it. As a citizen of Roseville, she wanted to be one hundred percent certain that the tax dollars are not contributing to a system that profits from human indignity and misery. She urged the Council to take steps now to ensure that this will not happen with their money and not in the community. She explained her friends and neighbors hold core values that everyone would like to see reflected in City Hall and how it spends their hard- earned money. Ms. Sanders noted the Council claims a mission to provide ethical, efficient, responsive government, and aspires to be safe and law abiding. Moving forward, she asked the Council to create standards of business within Roseville that respects an honest day's work for all who live or labor in the city based on the following five principals: integrity with ethics and transparency to do the descent and fair thing; accountability with taking responsibility for their actions; diligence to address weakness and make the city's strengths stronger; and, perseverance to discern and stay the right course that builds trust with residents and discipline in solving problems sensibly to avoid residents from paying for future mistakes. Ms. Sanders stated these ethics provide safe working conditions and fair wages. She asked the Council to do the right thing. Dannah Thompson, 2425 County Road C2 West Ms. Dannah Thompson, 2425 County Road C2 West, explained as local governing officials the City of Roseville Council as well as the EDA have an obligation to uphold the rule of law regardless of political affiliation or REDA Meeting Minutes—Monday,September 16,2019 Page 9 leanings. Recently, as of July 2019, wage theft law has been modified and it is absolutely illegal and pursuant to Minnesota Statutes 181.101 and 181.103. Furthermore, Statute 177.3 explicitly states "Responsible contractors should keep records dating back three years to verify they have remained compliant to State Labor Laws." She knew that it was first stated that the company has stats and data stating that the employees are treated well and happy but it is easy to "fluff' the numbers when talking about a group of people that might not be on the books, who are under the table so are those people included in the stats and data. She hoped the Council was also seeking that out. While not named in the lawsuit specifically, Reuter Walton has utilized subcontractors in breach of the state labor laws. Ms. Thompson believed it was irresponsible for the Council to pursue any funding for their project without first confirming Reuter Walton has committed no violations within itself or the subcontractors that it uses. Supporting this company while it potentially breaks federal and state laws, is something she finds alarming and hoped the Council will agree with her on this. She would like to know if Reuter Walton has provided any documentation to the Council referenced above to confirm that the company nor the subcontractors have violated any labor laws. If documentation has not been provided, she asked whether the city will do its due diligence to ensure employment violations such as wage theft and exploitation in the form of human trafficking have not continued since the original claim was filed. She also asked if the city will take these concerns seriously and withhold any taxpayer funded financing if Reuter Walton has been in violation or if documentation cannot be provided. Ms. Thompson asked what proactive measures are being taken or will be taken by the city to ensure these human rights violations will not be committed in Roseville whether by the city Council or the EDA. She asked whether Reuter Walton currently has the OSHA signs that should be designated at either the headquarter office or the work sites where they are so that all employees, whether documented or undocumented know what their rights are in Minnesota. These allegations are atrocious, and she hoped the Council would value people over profit. Emmitt Doyle, carpenter with Local 68 Mr. Emmitt Doyle, carpenter with Local 68, stated he was not at the meeting to bully Reuter Walton to give him a job. He explained he has a good job and he wants every carpenter to have the same rights and same protections that he has. He knows that people can treat workers the way that these workers have been treated and the companies can use that exploitation to erode the standards for construction workers on every project. His interests, as a worker, are bound up in the rights of all workers being respected. Reuter Walton has pointed out that many of their projects hire union workers. He did not think there is any amount of union jobs that erases one worker being threatened for demanding his wages. Mr. Doyle found it is not surprising that some of these workers are not in their records. If an employee is working for a subcontractor that is trafficking labor, generally speaking people who treat other human beings like a commodity do not take the best care in keeping records of their crimes and he REDA Meeting Minutes—Monday,September 16,2019 Page 10 did not see how that is a defense. The reason that trafficking continues is because even when traffickers are caught, those people are only getting a slap on the wrist. Mr. Doyle stated workers come to America looking for a better life and are thrown in cages. Only a handful of traffickers are ever prosecuted and the developers who build with the traffic labor enjoy a high profit from the low bids built on sweatshop conditions. Traffickers take workers and steal away their dignity, their youth, their health, the safety of their families, and even their lives. He noted contractors walk away with the profits and think the blood and shame can be washed away with charity. To hold developers accountable, we need to no longer allow them to hide their trafficking behind the plausible deniability of a subcontractor or wipe the stink of human trafficking with a few acts of philanthropy. Mr. Doyle believed the consequences need to stick, and the Council has a morale duty to hold builders accountable for their role in trafficking and to not reward them with public money. Roseville should not be a city built on human suffering. State Representative Jamie Becker-Finn, Roseville resident Ms. Jamie Becker-Finn, Roseville resident and State Representative for part of Roseville, explained she would be at the meeting even if she was not an elected official. She indicated her bosses are the people of her District and she has heard from a lot of them who are concerned about this issue and specifically about this project. She was not planning to speak but after hearing from Mr. Walton, she was compelled to say something. She stated workers have been exploited in this region and when she heard those stories tonight, she was horrified. She was not angry at them for coming forward, she was grateful to them for being brave enough to come forward. She thought it was on all of them to stand up for those with the least amount of power. She did not think this was just about tax dollars but also about what kind of city Roseville wants to be. She does not know Mr. Walton so all she knows is what she witnessed at the meeting and what she heard was a lot of anger at all of them in the room for being at the meeting and not a lot of compassion. Ms. Becker-Finn urged all of the Council to look into this in order to know what is being approved does not have the kind of consequences that have been talked about at the meeting. She thought the devil will be in the details and wondered if wage theft was what was addressed at the meeting tonight or by a conviction. She thought this was one of those issues that really does matter. Rick Sanders, South McCarrons Boulevard Mr. Rick Sanders, South McCarrons Boulevard, explained he is a concerned citizen of Roseville and what concerns him is that this project has gotten this far. The city should have something in the Bylaws or somewhere that the contractors who come into the city to do work are held to the same standards that the workers in the city are held to. He noted he was not blaming Mr. Walton himself but he is the head of that level, the level that controls all of the subcontractors below him. He does not condone having to listen to a story where someone was threatened. REDA Meeting Minutes—Monday,September 16,2019 Page 11 Vince Trovato,Victoria Street Mr. Vince Trovato, Victoria Street, explained the primary reason he was interested in the meeting was the idea of financing in a city that is not only a first ring suburb of a major metropolitan area with very good access to major transportation facilities, but also a city that is nearly fully developed where undeveloped land is at a very high level of scarcity. He viewed the city's responsibility is not to the developer or wanting to maximize the development of the city but what is best for the citizens of the city. He did not see this in this proposal, not because of what it would bring to the city but because of the contributions of taxpayer dollars. These taxes are not coming from the development, the development is benefitting from the infrastructure that the city's residents have invested in for many years. Mr. Trovato indicated he was offended by the idea that this project is creating all of this new money. To him, that is not accurate, it is taking away from the general fund of the city to be able to hire police officers needed to help stem the dramatic increase in crime that has been seen in the last few years. He did not know why this is even being discussed. It is not benefiting anyone but the developer. TIF financing has been proven to be uneconomic for cities. The only projects that have been found to be beneficial to taxpayers are those that have been done in a depressed economic area during an economic depression or recession. Those conditions do not exist in Roseville or in 2019. Troy Wenck, Reuter Walton Mr. Troy Wenck, President of the commercial construction division for Reuter Walton, wanted to correct a brief fact. He indicated the stories heard from Eric and Samuel were heartbreaking tonight and Eric did not tell anyone where or when the abuses happened to him, but Samuel went to great lengths to tell the audience it happened on a project on Xenia Avenue and happened in the very recent past. Mr. Wenck wanted to put it on the record that Reuter Walton does not have and never has had a project on Xenia Avenue and the subcontractor, Caliper Construction that was talked about where the abuses happened, was a subcontractor with Reuter Walton in the distant past, about eighteen months ago, and were found guilty of abuse. But Reuter Walton was not found guilt and Caliper Construction has not worked with Reuter Walton in eighteen months. The day Mr. Walton found out about the abuses Caliper Construction had done, the first question was if Caliper was on any of their jobs at that moment. The answer was no and Mr. Walton's second statement was that he did not want Caliper Construction on any of their jobs ever again if that is the character of that company. Mayor closed the public comment. REDA Meeting Minutes—Monday,September 16,2019 Page 12 Member Willmus asked, with respect to the additional language added and will have going forward in the contracts, for explanation on how that came to be and who staff met with and raised some of the concerns. Community Development Director Gundlach indicated Ms. Kim Nelson, representing the union, came to staff with concerns. She met with Ms. Nelson on September 4, 2019 and brought a lot of these issues to her attention. She asked Ms. Nelson to share some of her evidence to support some of the things she was saying about the developer in this case. Staff received that information this morning but before the information was received, staff immediately connected with Ms. Kelsey and Ms. Ingram to explore development contract language that could prevent that from happening on Roseville sites. Ms. Ingram was very helpful in drafting a language highlighted in the packet. Ms. Gundlach reviewed the language with the EDA that helps protect the city now and in the future. Member Laliberte appreciated the work done by staff and no one wanted anything like what was brought up to happen in Roseville. She wondered if there was any other manner where someone could report something that is being suspected on a project. Ms. Gundlach explained this type of issue is fairly new and she has not worked with something like this at her past employment. When she did meet with Ms. Nelson, one item that was discussed, in the interest of trying to protect workers and recognize problems and report them in a timely fashion, was to offer to meet with the city Building Official and Building Inspection staff to give them tools and tips on how to recognize things that are happening on job sites and when those things are recognized, who staff should report those problems to. That offer remains open and Ms. Nelson has not asked to meet with those staff members since that meeting. Member Etten noted one of the questions that was brought forward was asking about law the city has in protecting labor situations. He asked EDA Attorney Ingram if the city held the statutory ability to do that or is that held by the State. EDA Attorney Ingram indicated when federal labor law is involved, there are actually steps that a city or an EDA has to take to comply with those. In state labor law situations such as what is before them, there are not similar procedures. There are certainly procedures that are more voluntary, in the state labor law context. She noted this is not her area of law and is speaking a little beyond her depth. The trade off of having the city or the EDA do enforcement of its own, is that it is staff and time and money intensive on the part of the city REDA Meeting Minutes—Monday,September 16,2019 Page 13 and EDA and certainly a policy decision. She suspected there could be city staff or EDA staff that could be hired to take this position on. Member Etten asked if the language EDA Attorney Ingram helped create would address those concerns. EDA Attorney Ingram explained it would, short of actually hiring someone. She believed this is the most proactive that the city can be. It is suggesting that although the EDA and city are not taking on the responsibility for active enforcement and ensuring themselves the developer is complying, staff is reviewing evidence that is submitted and making a determination based on that. Staff has the ability to declare an event of default under the contract and to terminate the contract and the tax increment should such an incident be present. Member Groff asked what the process would be for an issue, if it occurred, such as was the case with Eric. EDA Attorney Ingram indicated it sounded like Eric did exactly what he should have done and report that violation to the Department of Labor. Willmus moved, Etten seconded, adoption of REDA Resolution No. 52 entitled, "Resolution Approve Contract For Private Redevelopment With And Awarding The Sale Of, And Providing The Form, Terms, Covenants And Directions For The Issuance Of Its Tax Increment Revenue Note To Walton Holdings, LLC." EDA Discussion Member Willmus explained when the city enters into development contracts with the development community, it is something that the city is obligated to make sure it is dealing with organizations that are of the highest integrity. The city does attach its name in partnership with these developments. He thought early on as these projects come forward, there were some articles in the newspaper, etc. In knowing that and in having staff look into this and having staff come forward and work with the Carpenters Union to help facilitate and show some short comings that the city perhaps has in its development contract language where the city can improve and afford some greater protections than what would ordinarily be there, he thought is a positive. He did think that as a developer, as a contractor, in a general contracting role, there is an obligation to know and understand what the subs are doing and how the subs are treating people. That is something the developer owes themselves and owes the community in which it works. He thought this has been a good, eye opening conversation and it will help provide a path forward to make sure the city is doing what it can to afford greater protections for those that might not ordinarily have them. REDA Meeting Minutes—Monday,September 16,2019 Page 14 Member Etten concurred with those comments. He noted unions have been one of the strongest forces in ensuring labor laws and worker safety, for example through how much a person works in a week, and he thought sometimes that is forgotten. He appreciated the unions bringing forward concerns that do not necessarily involve union members but as someone noted, the rights of all are connected in this game. He noted he spent a lot of time speaking with representative of the union, Reuter Walton, and city staff working through all of these things and reading a lot of the Department of Labor findings. He thought the stories brought forward by the two men were horrible stories and the city needed to make sure it is working toward better conditions. He appreciated city staff in making changes to the TIF contract. Member Groff thanked the two gentlemen who spoke because it is a hard subject and not only in Roseville, but something that has gone on around the country for years. He thought the city needed to look at where it is now, and needs to make sure things are in place in the future to make sure everyone is protected. He thought staff has added in language, which is a start, but he thought the city needed to look at this more carefully down the road to make sure the city is protecting everyone in Roseville. Member Laliberte concurred and appreciated all of the comments made at the meeting. She was pleased staff has worked so hard with the union representatives to make sure that this is not going to happen in the city and an opportunity for the city to develop an agreement that holds the city to a higher standard but also for the surrounding communities in this State. She hoped other cities start to look at the language that is being used. If there are things that the city can do to work with the State Representative and other State Representatives to identify other shortcomings, she would be happy to testify at a state level on things that have to be changed. President Roe noted a couple things that come to his mind in relation to this are that it is very difficult to address past allegations or issues that people have had in terms of a going forward agreement between the city and another entity. He thought the city needed to put the language in place that give the city the ability to respond to issues that come up in this particular development. He noted based on a lot of where the city is at now, the best that can be done. He thought if there was a greater amount of evidence as to real issues in the past and concerns with this developer, he would be in a different place in terms of approving this agreement for TIF. But he cannot go to the place of not approving the agreement on the basis of what has been talked about, as bad as it is and should not happen. He thought there needed to be a better way to help people who are in the process with the Department of Labor. He stated there was a role for the city for advocating for those types of things, but he did not know if the city can go much beyond that. He thought the city could look in the future at qualifications of contractor licenses in the city that are issued, and REDA Meeting Minutes—Monday,September 16,2019 Page 15 staff might want to look at policies and due diligence in relation to that. He stated in terms of this contract, the city has done some things that are pretty forward looking and advanced, and he appreciated everyone's input and work on this and was supportive of the motion before the EDA. Ayes: 5 Nays: 0 Motion carried. Willmus moved, Etten seconded, adoption of REDA Resolution No. 53 entitled, "Resolution Approve Contract For Private Redevelopment With And Awarding The Sale Of, And Providing The Form, Terms, Covenants And Directions For The Issuance Of Its Tax Increment Revenue Note To 2720 Fairview MKT LLC." Ayes: 5 Nays: 0 Motion carried. President Roe recessed the meeting at approximately 8:15 p.m., and reconvened at approximately 8:24 p.m. Recess b. Presentation By Metropolitan Consortium Of Community Developers Regarding Their Open To Business Program Community Development Director Janice Gundlach provided a brief summary of this request as detailed in the staff report and attachments dated September 16, 2019. Mr. Lee Hall, COO of Open to Business and Mr. Noah Her, representative of Ramsey County made a presentation to the EDA. Member Etten asked if there is a bank of money available for the loan program and how can the city contribute to that. Mr. Hall explained there is a capital pool that is made up of a number of sources including their own organizational equity, a significant amount of investment from banking partners who place capital with Open to Business as a part of their qualifications for CRA credit. There are investments from foundations and Open to Business participates in a couple of State lending programs. He indicated Open To Business does partner with the communities it works in and there are a number of municipalities in which Open To Business is offered who have asked them to manage or participate with them in local economic development programs including some loan programs. The REDA Meeting Minutes—Monday,September 16,2019 Page 16 exact nature of that is up to the community and how it wants to structure the program. Member Willmus asked how the EDA dollars that play into this would be administered. He also asked if there was a possibility that the dollars given by Roseville could flow outside of the city. Mr. Hall indicated there is about a ten-million-dollar loan pool that is made up of a diverse group of capital sources right now. Some of those are pretty open to where the money goes but a number of the funding sources do come with lending restrictions. The way Open to Business approaches all loan requests from businesses, is to determine whether or not it qualifies for a loan and then figure out after the fact where there are dollars that can be matched up for the business. Roseville would be covered under the Ramsey County Open to Business program. Roseville dollars would be kept specific to Roseville programs. He explained with municipalities where Open to Business does participation in the lending, he works with staff or the elected officials in those communities to provide some input in terms of shaping that program and to make sure it is not so restrictive that it does not become useable. President Roe thanked Mr. Hall and Mr. Her for the presentation. c. Presentation By St. Paul Area Chamber Of Commerce Regarding Their City And County Partnerships, Including Ongoing Programs And Services Ms. Shannon Watson, Director of Public Affairs for the St. Paul Area Chamber of Commerce made a presentation to the EDA regarding their City and County Partnerships, including ongoing programs and services. President Roe thanked Ms. Watson for the presentation. d. Presentation Regarding Twin Lakes Parkway Grant Reporting Progress Housing & Economic Development Program Manager Jeanne Kelsey introduced Mr. Nick Stumo-Langer who made a presentation to the EDA regarding Twin Lakes Parkway Grant Reporting progress. Member Etten asked if the work that has been done will be easier to replicate going forward if this is needed to be done yearly. Ms. Kelsey indicated Mr. Stumo-Langer was able to determine from his conversations with DEED, after the Colder project, which is up in May 2020, the reporting requirement will be retired because the goals have been met of the grant. REDA Meeting Minutes—Monday,September 16,2019 Page 17 Member Willmus thought this would be interesting for the city to do on its own periodically as the remainder of the area redevelops,just from that matrix perspective. President Roe noted he has been working with some of the current and former residents of that area who were at the Colder ground breaking who have been working with the former Chair of the Planning Commission, Mary Bakeman, to write a book about Twin Lakes and all of the things that have happened. He also suggested some of this data be put in the online timeline. President Roe thanked Mr. Stumo-Langer for his presentation. e. Discussion Regarding Holding A City Developer Summit and/or Similar Event Community Development Director Janice Gundlach provided a brief summary of this request as detailed in the staff report and attachments dated September 16, 2019. Ms. Gundlach noted she would advocate for multiple smaller touches with the community. Member Laliberte indicated she has talked to an individual who has brought this up in the past and thought the city does have a lot of great things going on right now. She noted to some degree, the city has overcome some of the false perceptions of what it is like to do business with Roseville. She did not see an urgency to do something here, but she did think it would be a nice thing. She did not have any magic vision for what this should be,but she did not want this item to disappear. President Roe remembered that one of the topics related to this was to focus on that missing townhome level development and maybe something that the city could focus on. Member Laliberte indicated that has come up in the past that medium density housing is very expensive to build. That being said, Roseville is fairly developed as a community so to meet with developers who do those kinds of projects or would be interested in doing those kinds of projects and get a better understanding of why those developers don't necessarily come to Roseville to do them but go to other communities to put those in place. That is something she would like to learn more about. Member Willmus thought this came about with some of the conversation on medium residential, noting other communities have hosted developer and brokerage open houses to bring folks in to let them know what Roseville has to offer. Roseville does have substantial acreage that is undeveloped so there is REDA Meeting Minutes—Monday,September 16,2019 Page 18 means with which to create a nexus between the development community, brokerage, and landowners. President Roe thought that one of the things related to that is perhaps laying out the sites that are already zoned for medium density and find out where the city should be zoning for medium density. That might be something to consider when updating the Zoning Code where conversation might take place. Member Etten agreed with the conversation about medium housing development and how the city can work with different partners on this. He would support staff thoughts on some of the smaller pieces to encourage other development. Member Groff would support smaller events rather than one large event. He thought the outreach to the different realty offices was wise. He did think the market takes care of these things, but the city should have some information available. Member Laliberte thought it would be helpful to know if the area is zoned appropriately as well as feedback from developers on visioning. President Roe stated the city might need to put into place programs or policies to help promote that type of activity in the city. He would agree to participate in smaller events rather than one large meeting. CLOSED SESSION MEETING President Roe noted that, in accordance with Minnesota State Statutes Chapter 13.D.05, subd. 3(c) city councils and EDAs may close portions of their public meetings in order to develop offers and consider counteroffers for the purchase or sale of various interests in real property. In this case, the property is located at 196 South McCarrons Boulevard. Etten moved Willmus, recessing the City Council meeting at approximately 9:12 p.m. and convening in Closed Executive Session, per State Statute. Ayes: 5 Nays: 0 Motion carried. CLOSED EXECUTIVE SESSION Mayor Roe convened the City Council in Closed Executive Session at approximately 9:13 p.m. REDA Meeting Minutes—Monday,September 16,2019 Page 19 In addition to the Members, Executive Director Trudgeon, Attorney Martha Ingram, Community Development Director Janice Gundlach were present. RECONVENE OPEN SESSION At approximately 9:35 p.m., Etten moved, Laliberte seconded, adjourning the Closed Executive Session and reconvening in Open Session. Ayes: 5 Nays: 0 Motion carried. 6. Adjourn Willmus moved, Etten seconded, adjourning the REDA meeting at approximately 9:35 p.m. Ayes: 5 Nays: 0 110 Motion carried. Daniel J.t e e, President ATTEST: , Patrick Trudgeon, City 4ger