City of claremont

CITY OF CLAREMONT

ECONOMIC DEVELOPMENT AUTHORITY MEETING

THURSDAY, FEBRUARY 5, 2015

6:00 P.M.

Ginny Busch called the EDA Meeting to order at 6:00 p.m. Members present: Don Gray, Don Johnson, and Romell Matejcek. Absent: Marie Lindblom, Ethan Reed, and Mayor Daniel Martinez. Others present: City Clerk/Treasurer Liz Sorg, Ryan Swenson, Lloyd Von Ruden, Colton Theimann, and from CHS: Gary Remmele, Ken Garness, Deke Stakl, and Jon Klejeski.

There were 2 additions to the agenda; new City Hall under New Business and Theimann Construction under RK&T. Motion by Don Gray to approve the agenda, second by Don Johnson. Carried unanimously.
Motion by Don Johnson to approve the minutes of the December 4, 2014, meeting, second by Don Gray. Carried unanimously.
The EDA savings account/revolving loan fund has a balance of $31,171.00. Bryngelson Manufacturing is up to date on their loan payments. Three EDA revolving loans will go before the council at the February council meeting to be formally written off since they are not collectible: Toner Des, Robert Overweg, and Chester Kindschy and Travis Schumacher. Motion by Don Gray to approve the EDA financial reports, second by Don Johnson. Carried unanimously.
Don Gray nominated Ginny Busch for President, second by Don Johnson. Carried unanimously. Ginny Busch nominated Romell Matejcek for Vice-President, second by Don Johnson. Carried unanimously.
CHS, previously Greenway, approached the EDA Commission about securing Westside Park for a business expansion. Without this expansion, it would be difficult to impossible for them to stay in Claremont. They are also looking into purchasing the land in front (north) of Bryngelson’s Manufacturing. They would make this area into a dry fertilizer plant. In the long term, they would need a shop on this site, along with a seed warehouse and bulk seed. The ammonia would be moved to the County Road 1 site. They would put up a green setback on Front Street, such as evergreen trees/landscaping. The scale and primary office would stay where it currently is. They are not interested in TIF right now and are willing to negotiate a land price for the area. Currently, they are just checking if the city is willing to sell the property and work with them on this business expansion. If not, they will need to check into other cities where they could do this. The EDA Commission was excited about this possibility and more than willing to work with CHS on this project. The Commission strongly and unanimously recommend to the Council to negotiate with CHS on this land purchase at a reasonable price. A majority of the EDA Commission Members thought around the lines of $30,000.
Since the free lot program has been on TV and in newspapers, there has been an overwhelming amount of calls. The calls and emails are still coming in, but no takers yet. Liz and Ginny met with Ron Zeigler and Tom Monson from CEDA to discuss if they could help us out. It seems like the people need help in getting home mortgages and general contractors as they don’t know how to go about doing that. Liz thinks if CEDA doesn’t help out with contacting the people with more information, it will be a missed opportunity. CEDA could follow up on the people that have called about the lots, market the property by doing a rental vs homeownership comparison, social media, brochures, make contact with Rochester Area Builders, etc. Also, if CHS decides to expand here, they could help with that, if needed. The cost would be $57.75 per hour, with no contract. In 2002, the city contributed $5000 to Dodge County EDA and MN Community Capital Fund, which was disbanded, so the city will be getting that $5000 back. There is a grant available to help pay for CEDA and a Letter of Inquiry, the first step in the grant process, has been filled out by Tom Monson. If the grant is not approved, the EDA has money in their account to help pay for CEDA. Tom would come in once a week and he could do some of the work at other locations. The EDA Commission strongly recommend to the council to hire CEDA.
Liz contacted MN Energy to put gas lines in at the RK&T Development. The charge is $1495 for the main and it would cover the home hook-ups up to 75 feet. They would start after April 1. EDA will sign the contract so MN Energy is ready to go in the spring and the funds would come from the EDA Fund.
Colton Thiemann from Thiemann Construction brought 2 split home designs, along with the cost, to show people interested in building a home (or they can get their own contractor).
The Building Committee met to discuss the new City Hall and there is $44,049.63 budgeted to work with and to have the new city hall move-in ready it would cost $32,772.50. That includes everything except paint, a clerk’s desk, council table and chairs (the current table and chairs can be used for now). The upper level has been thought to be a museum, book exchange, and/or community center. If that happens, an elevator would be needed, but that could be installed later.
There has been some interest in the former Shorty’s Bar, but nothing final yet.
There are rumors that the former school, Dickie’s Apartments, might be up for sale. Currently, there have been issues with the property, such as garbage, mold issues, fire calls for false alarms, and questionable renters. The deputies don’t want to go in there and the fire department don’t want to keep going there for false fire calls, the state fire marshal has stated he won’t come down and help anymore. The property owner is unwilling to make changes or improve the property and the quality of renters. Unfortunately, the EDA can’t do much about the issue at this time, but may discuss it in the future if new ideas come forward.
Motion by Don Gray to adjourn at 7:18 p.m., second by Don Johnson. Carried unanimously.

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City Clerk/Treasurer EDA