Grundy Reporter

City of of Highland Industrial Development Commission met Dec. 3

Here is the minutes provided by the commission:

Call to Order:

The December 3, 2020, meeting of the Industrial Development Commission was called to order at 12:06 PM by Vice Chairman Diane Korte-Lindsey. The meeting was held via telephone conference.

Roll Call:

Members present: Vice-Chairman Diane Korte-Lindsey, Josh Kloss and Marshall Rinderer. Members absent: Jim Meridith and Jon Greve.

Also present: City Manager Chris Conrad, Director of Community Development Breann Speraneo, Economic Development Coordinator Mallord Hubbard, Director Angela Imming, and Recording Secretary Megan Von Hatten.

Approval of Minutes:

Marshall Rinderer made a motion to approve the minutes of the November 4, 2020, Regular Session meeting of the Industrial Development Commission; seconded by Josh Kloss. All members voted aye; none voted no; the motion carried.

Reports:

Treasurer’s Report – Jon Greve

Jon was absent from the meeting, no report was given

Updates on other job inquiries – Breann Speraneo

Breann Speraneo reported:

• The Schlafly project is going very well, and we will be bringing items to Council on December 21, 2020. That includes amendment to the Development Agreement for 907 Main Street only. It originally contained 911 and 913 Main Street. We will also have a sales contract for 911 and 913 Main Street, and a lease agreement for 911 and 913 Main Street. The goal is for the City to purchase 911 and 913 Main for $10.00 and consideration from TJO Holdings. We are also doing a Community Park area and leasing a 1200 sq. foot patio to Schlafly.

• Trouw Nutrition is moving along as well, our lawyers are currently in negotiations over some minor language changes. We are hoping to bring that to the city council December 21st as well.

• Public Safety Building Construction is fully under way, SM Wilson has been great to work with, no concerns with them. We are expecting that project to proceed as planned.

• We have had our first short term rental request. Last night, Kelly Hunt attended the CPBZ meeting to apply for a short term rental at 1306 6th Street. That will be going to council for approval on Monday night.

• Lastly, Flax Meadows is applying for a Planned Unit Development for at least two of their developments. Again, this is going to the city council on Monday night for approval.

Update on Highland Communication Services – Angela Imming

Two updates: One we hit our very high number of 2,500 customers last week, a number we were not supposed to hit until the year 2032. Second, for a number of years we have wanted to pursue agencies who might want to store their servers or back up servers in our data center. Director Imming stated that she successfully sold a contract to Zanders Sporting Goods. That contract will be for 14 rack units in the data center and is going to the city council for final approval Monday night. She reported that this will provide $18,000-$20,000 profit over the next 3-4 years, so this is really great.

Update on Disaster Relief Initiatives – Mallord Hubbard

Mallord reported that they are still encouraging businesses to apply for the funds that have been made available through the Business Interruption Grant through the state. Many of our businesses as reported last month have done well, so we are encouraging them that this will be time well spent to take advantage of these funds. Many of you are aware that there appears to be some momentum on Capitol Hill towards a new package. Most of those funds will be directed to businesses. We have experienced shut downs since our last meeting so we are just hoping these additional funds will be approved from the federal government. Mallord stated that he believes this will me more impactful for the overall business community. We are hopeful that the federal government will come to an agreement on these new grant funds before the Christmas recess.

Update on E-commerce Grant- Mallord Hubbard

Mallord reported that at the last IDC meeting he got the members’ opinions on updating our ordinance to require our applicants to submit invoices when they deploy their E commerce solution. Upon reviewing the resolution, that established the program, with Angela and City Attorney Mike McGinley, it was discovered that he had had the foresight to write into the program that we are able to request any and all information necessary in deploying the grants. Therefore, we do not have to take it back to the city council. Mallord will be updating all of our forms and program descriptions accordingly.

Lastly, Mallord reported that the City has deployed a business retention survey for our businesses. He encouraged the IDC members to fill one out. It can be accessed through the city’s website, on the “Doing Business Here” tab under “Community Development.” He also encouraged them to network and share it with others. He is really focusing on engaging with the businesses in order to hear directly from them.

Update on Harrison Edwards- Breann Speraneo

Breann reported that we have been meeting with them and they will be attending our January IDC meeting to give a presentation and to receive feedback. That meeting will be held via Zoom.

New Business – Mallord Hubbard

Diane started by asking if the 2021 meeting dates are attached to this packet. Mallord responded he would coordinate with Lana so we can make sure those dates will get included in the January meeting packet. The next IDC meeting is scheduled for January 6th, 2021. We will vote on approving the 2021 dates at that meeting.

Approval for the IDC Strategic Plan

Diane asked for any feedback or input on the proposed strategic plan.

Josh Kloss stated the plan was very well thought out. He stated that it was very hard to find anything that needs to be corrected.

Marshall agreed with Josh stating it was very concise and easy to read. He did not have anything to add to it.

Diane sent a correction to Mallord via e-mail to correct her e-mail address in the plan. Marshall Rinderer made a motion to approve the IDC Strategic Plan, as corrected; seconded by Josh Kloss. Vice Chairman did a roll call vote: members Kloss, Rinderer, and Korte-Lindsey voted aye; none voted no. The motion carried

Recommendation of Development Agreement with TJO Holding LLC- Mallord Mallord stated that Breann did a good job explaining why we are amending the agreement passed earlier this year. We are amending it now because of the reasons she explained earlier by Breann. Otherwise as you saw the agreement is pretty similar to the iteration you agreed to earlier this year. I will be happy to answer any questions you may have on this item.

Marshall asked Mallord to confirm, “Most of this money given to them is a rebate of what they bring in. Correct?” “We are not giving them cash but they are getting money back from any improvements. Right?” Mallord confirmed, stating, “Yes, the total package they would be eligible for is based on the expenses they incur as a part of their improvements of this project. What their actual reimbursement will be is based on the property tax increase based on results of the project.”

Breann reported that the city attorney and their attorney are going back and forth on a few minor language changes, but no context will change.

Josh Kloss made a motion to recommend that the city council approve the Development Agreement with TJO Holdings, LLC.; seconded by Marshall Rinderer. Vice Chairman did a roll call vote: members Rinderer, Kloss, and Korte-Lindsey voted aye; none voted no. The motion carried.

Next Meeting:

The next regular meeting of the Industrial Development Commission is scheduled for Wednesday, January 6, 2021.

Adjournment

Marshall Rinderer made a motion to adjourn; seconded by Josh Kloss. All members voted aye; none voted no. The motion carried and the meeting adjourned at 12:45 PM.

https://www.highlandil.gov/Boards%20and%20Commissions/Industrial%20Development%20Commission/Minutes/2020/12-3-2020%20IDC%20Mtg%20Minutes.pdf