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EDA Agenda 02-12-2020AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 12th, 2020 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon Morphew, Tracy Hinz, 011ie Koropchak-White and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Executive Director Jim Thares, Jeff O'Neill, Angela Schumann, Sarah Rathlisberger and Jacob Thunander 1. Call to Order 2. Roll Call 6:00 p.m. 3. Annual Business Meeting a. Consideration to elect EDA Officers b. Consideration to review EDA Bylaws c. Consideration to review EDA Enabling Resolution d. Consideration of EDA Financial Statements and Fund Balance information 4. Consideration of additional agenda items 5. Consent Agenda a. Consideration of approving Regular Meeting Minutes — January 8th, 2020 b. Consideration of approving Special Workshop Meeting Minutes — January 8th, 2020 c. Consideration of approving Regular Meeting Minutes — January 22, 2020 d. Consideration of approving Special Meeting Minutes — May 29, 2019 e. Consideration of amending language in GMEF Loan Application f. Consideration of approving payment of bills Regular Agenda 6. PUBLIC HEARING — Land Sale Public Hearing - UMC Expansion Project — Proposed sale of EDA property described as Lot 2, Block 1, Monticello Commerce Center, Sixth Addition, Wright County, MN (7.39 -acres) [PID #155143001020] to UMC for the sole purpose of pursuing a 52,000 square foot expansion project 7. PUBLIC HEARING — Business Subsidy Public Hearing — UMC Expansion Project - Proposed Tax Increment Financing (TIF) Land Value Write Down in the amount of $731,000 for development property, EDA advance funding in the amount of $300,000, Minnesota Investment Fund (MIF) Forgivable Loan in the amount of $300,000 and Job Creation Fund (JCF) Grant in the amount of $175,000 to UMC for the sole purpose of pursuing a 52,000 square foot expansion project. 8. Consideration of Co -Work Concept Project Update — Crystal Nutt, Crystal Nutt Consulting 9. Consideration of Industrial Land Absorption and Demand Study — Jim Gromberg, WSB & Associates, Inc. 10. Consideration of proposed 2020 WSB Economic Development Assistance Contract — Jim Gromberg, WSB & Associates, Inc. 11. Consideration of Adopting 2020 EDA Workplan 12. Director's Report 13. Adjourn EDA Agenda: 2/12/20 3. Consideration of holding Annual Business Meeting (JT) A. REFERENCE AND BACKGROUND: The EDA is required to hold an Annual Meeting each year to elect officers, make appointments as needed and consider Bylaw changes. The EDA enabling resolution and the Bylaws are attached for review. Staff would entertain any questions or requested clarifications on the documents; some items may require consultation with EDA legal counsel. The Offices that need to be filled consist of President, Vice President and Treasurer. Staff can serve as the Secretary for recording minutes of meetings. Also attached for review and discussion is the 2019 Year End Financial reports of the EDA Fund(s). Al. Staff Impact: There is minimal staff time involved in preparing the staff report for consideration of the Annual Business Meeting. A2. Budget Impact: No expected budget B. ALTERNATIVE ACTIONS: 1. Motion to elect 2020 Officers; as President, as Vice President, and as Treasurer. 2. Motion to table election of 2020 EDA Officers C. ALTERNATIVE ACTIONS: 1. Motion to direct staff to prepare draft amendments to the EDA Enabling Resolution or Bylaws as follows: (amendments to the Enabling Resolution require a public hearing). 2. Motion of other. D. STAFF RECOMMENDATION: Staff recommends approval of Alternative B-1. If needed, staff recommends approval of C-1 as appropriate. Staff have no recommended amendments to the Enabling Resolution or Bylaws at this time and defers to the EDA members. E. SUPPORTING DATA: A. EDA Bylaws B. EDA Enabling Resolution C. EDA 2019 Year -End Financial Reports BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "City of Monticello Economic Development Authority." Section 2. Office of Authority. The office of the Authority shall be at the City Hall in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. Section 3. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 4. Establishment. The City of Monticello Economic Development Authority is established pursuant to Minnesota Statutes, Section 469.090 to 469.108 1, as amended. ARTICLE II - THE COMMISSIONERS Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in accordance with the Amended and Restated Resolution Enabling the Creation of the City of Monticello Economic Development Authority dated October 22, 2007 and as it may be amended (the "Enabling Resolution") and Section 2-3-1 of Ordinance Amendment No. 172, Chapter 3, City of Monticello, Wright County, Minnesota. ARTICLE III - THE OFFICERS Section 1. Officers. The Authority shall elect a president, a vice president, a treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Section 2. President. The President shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Board of Commissioners, the President and the Executive Director (the Assistant Treasurer, in the Executive Director's absence or incapacity) shall sign all contracts, deeds, and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice President. The Vice President shall perform the duties of the President in the absence or incapacity of the President, including signing all contracts, deeds, and other instruments executed by the Authority; and in the case of the resignation or death of the 3255990 MNI MN 190-130 President, the Vice President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The office of Secretary may be held by the Executive Director upon approval thereof by the Authority. Section 5. Treasurer's Duties. The treasurer: (1) shall receive and is responsible for Authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse Authority money by any Authority -approved method, including without limitation check, wire transfer, or credit card; (4) shall keep an account of the source of all receipts and the nature, purpose, and authority of all disbursements; (5) shall file the Authority's detailed financial statement with its secretary at least once a year at times set by the Authority; and (6) shall prepare and submit an annual report describing the Authority's activities and providing an accurate statement of its financial condition to the City of Monticello by no later than one month following the annual meeting of the Authority. Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or incapacitated. Section 7. Public Money. Authority money is public money. ARTICLE IV - EXECUTIVE DIRECTOR The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the EDA commissioners, shall be designated as Executive Director of the EDA. Section 1. Duties. The Executive Director shall have general supervision over the administration of the Authority's business and affairs subject to the direction of the Authority. The Executive Director in his or her own name and title shall keep the records of the Authority, shall act as recorder of the meetings of the Authority and record all votes, and shall keep record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. The Executive Director shall, with the President, sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole custody the seal of the Authority and shall have power to affix such seal to all contracts and 2 3255990 MNI MN 190-130 instruments authorized to be executed by the Authority. Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve as the Executive Director. ARTICLE V - MEETINGS Section 1. Regular Meetings. Regular meetings shall be held on the 2nd Wednesday of each month. Section 2. Annual Meeting. The annual meeting of the Authority shall be held in conjunction with the regular February meeting at the regular meeting place of the Authority. The August regular meeting shall include final fund balances reviewed at the Annual Meeting. Section 3. Special Meetings. Special meetings of the Authority may be called by the President, two members of the Authority, or the Executive Director for the purpose of transacting any business designated in the call. All commissioners of the Authority shall be notified. Section 4. Quorum. At any meeting of the Authority, the presence of four commissioners shall constitute a quorum. If a quorum is not present at any meeting, those present shall have power to adjourn the meeting from time to time without notice other than announcement at such meeting until the requisite number of votes shall be present to constitute a quorum. At any such adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called. Any resolution, election, or other formal action of the Authority shall be adopted upon the affirmative vote of a majority of the Authority membership. Section 5. Rules of Procedure. Unless otherwise specified in the Enabling Resolution or in these bylaws, all meetings of the Authority shall be conducted in accordance with Roberts' Rules of Order revised. Section 6. Manner of Voting. The voting on all questions coming before the Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be entered upon the minutes of such meetings. ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES Section 1. Employees. Subject to limits set by the appropriations or other funds made available, the Authority may employ such staff, technicians, and experts as may be deemed proper and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 2. Contract for Services. The Authority may contract for services of consultants, agents, public accountants, and other persons needed to perform its elaties and exercise its powers. 3 325599v6 MNI MN190-130 Section 3. Legal Services. The Authority may use the services of the city attorney or hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the Authority, is its chief legal advisor. Section 4. Supplies. The Authority may purchase the supplies and materials it needs to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081. Section 5. City Purchasing. The Authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Section 6. City Facilities, Services. The City may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to the Authority. Section 7. Delegation Power. The Authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. ARTICLE VII - POWERS Section 1. Functions, Powers, and Duties. Shall be in accordance with the Enabling Resolution. Section 2. Resolution. Limitations of Power. Shall be in accordance with the Enabling ARTICLE VIII - AMENDMENTS Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by a majority vote of the Authority membership at a regular or special meeting. The amendments must be in written fon-n. Section 2. Conflicts. In any instance where these bylaws are in conflict with the Enabling Resolution, the Enabling Resolution shall control. Section 3. Effective Date. These bylaws are effective upon their adoption by the Authority. Dated: June 8, 2016. Signed: a� President (Sea.l) xecutive Director 4 325599v6 MNI MN 190-130 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA RESOLUTION NO. 2013-010 AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED by the City Council of the City of Monticello, Minnesota ("City") as follows: Section 1. Background and Findings 1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the "EDA Act") to establish an economic development authority to coordinate and administer economic development and redevelopment plans and programs for the City. 1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as Title II, Chapter 3 (the "Enabling Ordinance"), the City established the City of Monticello Economic Development Authority ("EDA"), for the purpose of coordinating and administering economic development activities in and for the City. 1.03. By resolutions approved on October 22, 2007 and January 14, 2008, the City transferred to the EDA the control, authority and operation of all projects administered by the Housing and Redevelopment Authority in and for the City of Monticello and adopted an Amended and Restated Enabling Resolution (the "Enabling Resolution"), which superceded the Enabling Ordinance in all respects. 1.04. The City Council further amended the Enabling Resolution after a duly noticed public hearing on February 27, 2012. 1.05. The City Council has now determined to revise and clarify certain provisions of the Enabling Resolution by the adoption of this resolution. 1.06. The City Council has, in accordance with Minnesota Statutes Section 469.093, provided public notice and conducted a public hearing on the date hereof, at which all persons wishing to be heard were given an opportunity to express their views, concerning the proposed modifications to the Enabling Resolution. 1.07. This resolution constitutes an amendment and restatement of the Enabling Resolution of February 27, 2012, and supercedes such Enabling Resolution in all respects. Section 2. Enabling Authority. 2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated by this resolution. 2.02. The EDA shall be composed of 7 commissioners to be appointed by the Mayor and confirmed by the City Council. 2.03. Two of the commissioners shall be members of the City Council. The terms of office of the two members of the City Council shall coincide with their terms of office as members of the City Council. The remaining five (5) commissioners shall be initially appointed for terms of one, two, three, four, and five years respectively. Thereafter, all non -Council commissioners shall be appointed for six-year terms. 2.04. A vacancy is created in the membership of the EDA when a City Council member of the board of commissioners ends Council membership, when any commissioner ends EDA membership prior to expiration of his or her term of office, on the day following the expiration of a commissioner's term of office, or when a commissioner is removed by the City Council subject to the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new term or the balance of the unexpired term, as applicable, in the manner in which the original appointment was made. 2.05. All of the commissioners who are not members of the City Council must be either residents of the City, business -owners in the City, or property -owners in the City. 2.06. All commissioners shall serve at the pleasure of the City Council, subject to the terms of Section 2.07 hereof. Vacancies shall be filled by appointment by the Mayor with the confirmation of the City Council. 2.07. A commissioner may be removed by the City Council for inefficiency, neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least 10 days before the hearing. The commissioner must be given an opportunity to be heard in person or by the counsel at the hearing. When written charges have been submitted against the commissioner, the City Council may temporarily suspend the commissioner. If the City Council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings together with the charges and findings shall be filed in the office of the City Administrator. 2.08. The City Council shall make available to the EDA such appropriations as it deems fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have authority to expend all budgeted sums so appropriated and recommend the expenditures of other sums made available for its use from grants, gifts, and other sources for the purposes and activities authorized by this resolution. Section 3. Officers and Meetings. 3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and secretary annually. A commissioner must not serve as president and vice president at the same time. The other offices may be held by the same commissioner. The other offices of the secretary and assistant treasurer need not be held by a commissioner. 3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and rules to govern its procedures and for the transaction of its business and shall keep a record of attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the vote of each commissioner on each question requiring a vote, or if absent or abstaining from voting, indicating such fact. The records of the EDA shall be a public record, except for those items classified by law as nonpublic data. 3.03. The EDA shall meet at least quarterly. Special meetings may be called by the president as needed. 3.04. All administrative procedures, including contract for services, purchases of supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA. Section 4. Staff. 4.01. The City Administrator, or any other person designated in writing by the City Administrator and approved by a majority of the EDA commissioners, shall be designated as Executive Director of the EDA. 4.02. Subject to limits set by the appropriations or other funds made available, the EDA may employ such staff, technicians, and experts as may be deemed proper, and may incur such other expenses as may be necessary and proper for the conduct of its affairs. Section 5. Functions, Powers, and Duties. 5.01. Except as specifically limited by the provisions of Section 6 of this Enabling Resolution, the EDA shall have the authority granted it pursuant to the EDA Act. 5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the 'Fund") the purpose of which is to encourage economic development by making loans to private businesses. The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes to the fund Guidelines shall be made without approval of the City Council. 5.03. The EDA may be a limited partner in a partnership whose purpose is consistent with the EDA's purpose. 5.04. The EDA may issue general obligation bonds and revenue bonds when authorized by the City Council and pledge as security for the bonds the full faith, credit, and resources of the City or such revenues as may be generated by projects undertaken by the EDA. 5.05. The EDA may cooperate with or act as agent for the federal or state government or a state public body, or an agency or instrumentality of a government or other public body to carry out the powers granted it by the EDA Act or any other related federal, state, or local law in the area of economic development district improvement. 5.06. The EDA may annually develop and present an economic development strategy and present it to the City Council for consideration and approval. 5.07. The EDA may join an official, industrial, commercial, or trade association or other organization concerned with such purposes, hold reception of officials who may contribute to advancing the City and its economic development, and carry out other appropriate public relations activities to promote the city and its economic development. 5.08. The EDA may perform such other duties which may be lawfully assigned to it by the City. All city employees shall, upon request and within a reasonable time, furnish the EDA or its employees or agents such available records or information as may be required in its work. The EDA or its employees or agents may, in the performance of official duties, enter upon lands and make examinations or surveys in the same manner as other authorized City agents or employees and shall have such other powers as are required for the performance of official functions in carrying out the purposes of this resolution. Section 6. Limitations of Power. 6.01. The following limits apply to the EDA and its operation: (a) The sale of bonds or other obligations of the EDA must be approved by the City Council. (b) The EDA must follow the budget process for City departments in accordance with City policies, ordinances, and resolutions and the City charter. (c) Development and redevelopment actions of the EDA must be in conformity to the City comprehensive plan and official controls implementing the comprehensive plan. (d) The EDA must submit its plans for development and redevelopment to the City Council for approval in accordance with City planning procedures and laws. (e) Except when previously pledged by the EDA, the City Council may, by resolution, require the EDA to transfer any portion of the reserves generated by activities of the EDA that the City Council determines are not necessary for the successful operation of the EDA to the debt service funds of the city to be used solely to reduce tax levies for bonded indebtedness of the City. (f) The administrative structure and management practices and policies of the EDA must be approved by the City Council. (g) The EDA shall submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. 6.02. The EDA may exercise all the powers under the EDA Act, including, but not limited to, the following: (a) all powers under the HRA Act. (b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134. (c) all powers and duties of a redevelopment agency under Minnesota Statutes, Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections 469.152 to 469.165. (d) the authority to acquire property, exercise the right of eminent domain; make contracts for the purpose of redevelopment and economic development; serve as a limited partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies and materials needed to carry out development within the EDA Act; and operate and maintain public parking facilities. (e) the authority to issue bonds in accordance with the EDA Act and the HRA Act. (f) the authority to levy special benefit taxes in accordance with Section 469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment costs (as defined in the HRA Act), subject to approval by the City Council in accordance with Section 469.033, subdivision 6. (g) all powers under Minnesota Statutes, Sections 469.474 to 469.179. 6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this resolution nor any activities of the EDA are to be construed to impair the obligations of the City or HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA. Section 7. Implementation. 7.01. The City Council will from time to time and at the appropriate time adopt such ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this resolution. 7.02. The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this resolution. 7.03. Nothing in this resolution is intended to prevent the City from modifying this Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA Act. ADOPTED BYthe City Council of the City of Monticello on this 25th day of March, 2013 CITY OF MONTICELLO Clint Herbst, Mayor ATTEST: Jeft,0XV11, City Administrator CITY OF MONTICELLO Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program December 31, 2019 - Unaudited ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Total fund balance TOTAL LIABILITIES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified 2,580 - - TIF 6 (d) TIF 19 TIF 20 (d) TIF 22 TIF 24 EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's $ 1,779,432 $ 1,027,511 $ - $ 702,384 $ 52,591 $ 102,943 $ 245,223 $ 59,543 1,324 - - - - - _ _ 941 - - - - - - - 1,440 - 12/9/2013 12/31/2023 12/10/2018 12131 /2024 12131 /2026 327,796 - Redevelopment Housing Redevelopment Housing & Housing 2,580 - Redevelopment - 187,023 - - - - - _ 2,712,170 - - - - - 163,200 - $ 4,825,683 $ 1,214,534 $ - $ 702,384 $ 52,591 $ 102,943 $ 408,423 $ 59,543 $ 5,672 $ - $ - $ - $ - $ - $ - $ - - - 44,497 - - - - _ - - - - - - 163,200 - 3,445 - - - - - - - 9,117 - 44,497 - - - 163,200 - 941 - - - - - - - 2,580 - - - - - - - - 1,214,534 - 702,384 52,591 102,943 245,223 59,543 4,813,045 - (44,497) - - - - - 4,815,625 1,214,534 (44,497) 702,384 52,591 102,943 245,223 59,543 $ 4,825,683 $ 1,214,534 $ - $ 702,384 $ 52,591 $ 102,943 $ 408,423 $ 59,543 12/9/2013 12/31/2023 12/10/2018 12131 /2024 12131 /2026 Redevelopment Housing Redevelopment Housing & Housing Redevelopment (Continued) CITY OF MONTICELLO Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program December 31, 2019 - Unaudited (Continued) ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Total fund balance TOTAL LIABILITIES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 GAAP Total Total Front Porch CMHP Interchange Otter Creek Briggs Reconciliation EDA SCDP $ 123,686 $ 108,677 $ 16,356 $ 56 $ - $ - $ 4,218,402 $ 718,051 - - - - - - 1,324 - - - - - - - 941 - - - - - - - 1,440 - - - - - - (327,796) - - - - - - - - 2,580 - - - - - - - 187,023 186,314 - - - - - - 2,875,370 - $ 123,686 $ 108,677 $ 16,356 $ 56 $ - $ (327,796) $ 7,287,080 $ 904,365 $ - $ - $ - $ - $ - $ - $ 5,672 $ - - 113,996 - 169,303 - (327,796) - - - - - - - (163,200) - - - - - - - - 3,445 - - 113,996 - 169,303 - (490,996) 9,117 - - - - - - - 941 - - - - - - - 2,580 - 123,686 (5,319) 16,356 (169,247) - 163,200 2,505,894 898,871 - - - - - - 4,768,548 - 123,686 (5,319) 16,356 (169,247) - 163,200 7,277,022 898,871 $ 123,686 $ 108,677 $ 16,356 $ 56 $ - $ (327,796) $ 7,287,080 $ 898,871 12/31/2029 12/31/2029 12131/2022 12131/2021 12/31/2045 Housing Housing Redevelopment Economic Housing Development CITY OF MONTICELLO Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended December 31, 2019 - Unaudited TIF 6 (d) TIF 19 TIF 20 (d) TIF 22 TIF 24 EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Revenues Property taxes $ 348,515 $ - $ - $ - $ - $ - $ - $ - Tax increments - - - - 35,915 - 287,485 51,252 Investment earnings 57,026 32,325 - 22,865 4,895 3,258 6,090 3,606 Interest on loans 11,335 5,433 - - - - - - Other revenues 3,220 - - - - - - - Total revenues 420,096 37,758 - 22,865 40,810 3,258 293,575 54,858 Expenditures: Current Salary and wages 92,564 - - - - - - Benefits 34,565 - - - - - - Supplies 146 - - - - - Professional services - legal 22,103 - - - - - - - Professional services - other 21,766 - - - - - 990 - LPV Insurance 976 - - - - - - Legal and general publications 246 - - - 39 39 39 Property taxes 3,492 - - - - - - Marketing 1,698 - - - - - - Dues and membership 5,291 - - - - - - Utilities 1,126 - - - IT services 3,009 - - - - - - - Travel and conferences 1,884 - - - - - - Land adjustment to market 58,619 - - - - - - - Qualifying TIF expenditures - - 40,000 240,000 - - 160,000 Other expenditures 13,858 - - - - - 5,456 - Excess increments - - - - - - 126,291 - Interest on intrafund loans - - - - - - - PAYG payments to third parties - - - - - - 49,051 - Total expenditures 261,343 - - 40,000 240,039 - 181,827 160,039 Excess (deficiency) of revenues over expenditures 158,753 37,758 (17,135) (199,229) 3,258 111,748 (105,181 Other financing sources (uses) Transfers out (25,000) - - - - - - Net change in fund balances 133,753 37,758 - (17,135) (199,229) 3,258 111,748 (105,181) Fund balance at beginning of year 4,681,872 1,176,776 (44,497) 719,519 251,820 99,685 133,475 164,724 Fund balance at end of year $ 4,815,625 $ 1,214,534 $ (44,497) $ 702,384 $ 52,591 $ 102,943 $ 245,223 $ 59,543 Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/3112024 12/31/2026 TIF District Type Redevelopment Housing Redevelopment Housing & Housing (d) = decertified Redevelopment (Continued) Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended December 31, 2019 - Unaudited (Continued) Revenues Property taxes Tax increments Investment earnings Interest on loans Other revenues Total revenues Expenditures: Current Salary and wages Benefits Supplies Professional services - legal Professional services - other LPV Insurance Legal and general publications Property taxes Marketing Dues and membership Utilities IT services Travel and conferences Land adjustment to market Qualifying TIF expenditures Other expenditures Excess increments Interest on intrafund loans PAYG payments to third parties Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out Net change in fund balances Fund balance at beginning of year Fund balance at end of year Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 29 TIF 30 TIF 34 TIF 39 TIF 40 GAAP Total Front Porch CMHP Interchange Otter Creek Briggs Reconciliation EDA $ - $ - $ - $ - $ - $ - $ 348,515 31,033 13,162 215,475 45,603 - - 679,925 3,817 3,420 353 1 - - 137,656 - - - - - (11,335) 5,433 - Housing - - - 3,220 34,850 16,582 215,828 45,604 - (11,335) 1,174,749 39 39 39 - - 3,069 - 8,266 24,827 - - - 24,866 3,108 39 8,266 - 92,564 - 34,565 - 146 - - 22,103 - - 22,756 - - 976 - - 480 - - 3,492 - - 1,698 - - 5,291 - - 1,126 - - 3,009 - - 1,884 - - 58,619 - - 440,000 - - 19,314 - - 126,291 - (11,335) - 73,878 (11,335) 908,192 Total 5,494 25,888 31,382 5,494 5,494 9,984 13,474 215,789 37,338 - - 266,557 25,888 - - (205,000) - - - (230,000) - 9,984 13,474 10,789 37,338 - - 36,557 25,888 113.702 (18,793) 5,567 (206,585) - 163,200 7,240,465 872,983 $ 123,686 $(5,319) $ 16,356 $ (169,247) $ - $ 163,200 $ 7,277,022 $ 898,871 1213112029 12/31/2029 12/31/2022 12/31/2021 12/31/2045 Housing Housing Redevelopment Economic Housing Development MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 8th, 2020 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Steve Johnson, Jon Morphew, Tracy Hinz, 011ie Koropchak- White, Lloyd Hilgart and Jim Davidson Commissioners Absent: Bill Tapper Staff Present: Jim Thares and Angela Schumann 1. Call to Order Steve Johnson called the Regular Meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items None. 4. Consent Agenda - Item 4a through 4c LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 6-0. a. Consideration of approving Regular Meeting Minutes — December 11, 2019 Recommendation: Approve Regular Meeting Minutes — December 11, 2019. b. Consideration of approving payment of bills Recommendation: Approve payment of bills through December, 2019. c. Consideration of approving staff attendance at 2020 Winter EDAM Conference; January Recommendation: Authorize Economic Development Manager to attend the 2020 EDAM Winter Conference. 5. Consideration of authorizing solicitation of Request for Qualifications for Housing Needs and Market Demand Study Jim Thares explained the importance of updating the 2017 Housing Study that was completed by WSB. He noted that a more updated and detailed study would be necessary especially as several multi -family development projects are being built in Monticello. Tracy Hinz asked if the study should be put on hold until the development projects are completed. Thares acknowledged that new buildings could alter the market. He explained that all new and proposed -pending development of multi -family projects would be included in the study. Hilgart noted that it would be good to understand the current need for housing in Monticello especially as multi -family developments are trending in Monticello and the surrounding region. Economic Development Authority Minutes — January 8', 2020 Page 113 TRACY HINZ MOVED TO RECOMMEND THE EDA AUTHORIZE PREPARATION OF AN RFQ (REQUEST FOR QUALIFICATIONS) FORM AND TO FURTHER SOLICIT RESPONSES FROM KNOWN AREA FIRMS INVOLVED IN COMPLETING HOUSING STUDIES. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0. 6. Consideration of funding request for Co -Work Concept Tech Meet Up Event in the amount of $700.00 Jim Thares provided an overview of the request and explained in detail what a co - working space consists of. He noted that a group of Monticello residents are interested in bringing such a space to the downtown area. Thares explained that often they are quasi (public and privately) funded. Thares stated that the $700 request could be pulled from the EDA marketing budget and would help cover the cost of holding an informational and interest gathering meeting and food/beverage. It was noted that Crystal Nutt presented to the EDA previously about the concept and her interest in applying for a fellowship to help fund the startup of the concept. The grant was submitted, but not awarded. The EDA asked for further information to be provided at a future meeting that would include a business plan, cost of starting -up, and the EDA's role in the project. In general, the EDA is supportive of the concept. JIM DAVIDSON TABLED THE ITEM FOR FURTHER DISCUSSION WITH THE CO -WORK GROUP. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 6-0. 7. Director's Report Jim Thares provided the Director's Report. It was noted on 7A. (EDA owned property 300 E 4th Street) the Fire Department should use the property for a training burn if interested. Thares indicated that the Prospect List added one next business: Project Dancer. Thares also explained that UMC is expected to submit their JCF for the City's final review before sending to DEED. It was reminded that the EDA cannot approve the land transaction before receiving the funds from the State. The escrow money is due by February 12th Economic Development Authority Minutes — January 8', 2020 Page 2 13 8. Adiourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 6:48 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander Approved: February 12th, 2020 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes — January 8', 2020 Page 3 13 AGENDA WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 8, 2020 — 4:30 p.m. Academy Room, Monticello Community Center Commissioners Present: Steve Johnson, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Commissioners Absent: Bill Tapper and Jon Morphew Staff Present: Angela Schumann and Jim Thares Call to Order. Steve Johnson called the Workshop Meeting of the EDA to order at 4:30 p.m. 2. Roll Call 3. 2020 Work Plan Feedback Discussion and Formulation Jim Thares introduced the discussion and reviewed the 2019 workplan and tasks completed within the last year. A work plan worksheet was provided to add or edit any of the goals for 2020. It was noted by the EDA to revise 1 C. to include continuing to work with the Beard Group on the development of Block 52. The EDA discussed in detail pathway connections to Bertram, easing standards of the faced improvement program, the future of Downtown Rounds, downtown redevelopment including connection to parks and trails. The EDA also discussed having a prioritization of community projects and working together with community groups such as the Lions and Rotary. Discussion also ensued about including a comprehensive multi -family market demand and needs assessment. Members also suggested to continue working with Central Minnesota Housing Partners on a tax credit housing project if there is still an interest. The EDA requested adding an item related to workforce shortages. Lastly, it was discussed having an intern to complete marketing for the EDA or an enhanced marketing program in house. Thares noted that during the regular meeting on January 22nd, the EDA would complete review and editing of the workplan. Economic Development Authority Minutes (Workshop Meeting) — January 8', 2020 Page 1 1 2 4. Adjournment TRACY HINZ MOVED TO ADJOURN THE MEETING AT 5:20 P.M. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 5-0. Recorder: Jacob Thunander Approved: February 12th, 2020 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes (Workshop Meeting) — January 8', 2020 Page 2 12 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 22nd 2020 — 7:00 a.m. Academy Room, Monticello Community Center Commissioners Present: Steve Johnson, Jon Morphew, Tracy Hinz, and 011ie Koropchak- White Commissioners Absent: Bill Tapper, Lloyd Hilgart, and Jim Davidson Staff Present: Jim Thares and Angela Schumann 1. Call to Order Steve Johnson called the Regular Meeting of the EDA to order at 7:02 a.m. 2. Roll Call 3. Consideration of additional agenda items N/A 4. Consent Agenda —None N/A 5. Consideration of discussion and formulation of 2020 Workplan Jim Thares explained that at the last meeting, the EDA discussed 2019 project status, while creating a 2020 workplan. The EDA discussed in length the desire to have a strong marketing presence. The board discussed having a marketing intern, completing more work in-house, continuing the WSB contract, having community champions lead a program to talk about economic development to CEO's, and continuing business retention visits. The EDA also discussed adding Block 34 and 4th Street properties being marketed for redevelopment opportunities. Thares discussed the importance of coworking spaces, especially in the downtown of Monticello. The EDA talked about having a short handout for interested developers that would include information such as financial assistance, incentives, and available properties. Staff discussed meeting with a commercial realtor to help market some of the parcels that the EDA owns. Staff were directed to revise the 2020 workplan to shorten up the goals and expand on the items noted including marketing and networking. Economic Development Authority Minutes (Workshop Meeting) — January 221, 2020 Page 1 1 2 The EDA talked about offering home improvement grants, including working with CMHP and Tri -County (HIA??), and Habitat for Humanity. The EDA talked about having an industrial round table with specific focus topics led by the IEDC. The meetings would serve as a dual purpose: business retention and a learning opportunity about important topics to the focus group and the EDA. 6. Director's Report Jim Thares provided the Director's Report. Angela Schumann invited the EDA to a special joint meeting to discuss the final draft of the Comprehensive Plan — Visioning Report on February 4th at 4:30 p.m. at the Monticello Community Center. 7. Adiournment JON MORPHEW MOVED TO ADJOURN THE MEETING AT 8:13 P.M. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 3-0. Recorder: Jacob Thunander Approved: February 12th, 2020 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes (Workshop Meeting) — January 221, 2020 Page 2 12 EDA Agenda: 02/12/20 5d. Consideration of approving Special Meeting Minutes — May 29, 2049 (JaT) A. REFERENCE AND BACKGROUND: During the June 12th, 2019 Regular Meeting, the EDA had not received a copy of the May 29th, 2019 meeting minutes for review and approval. The meeting minutes were approved under the Consent Agenda without having them attached. Staff are submitting the Special Meeting Minutes for review and recommendation of edits. B. ALTERNATIVE ACTIONS: 1. Approve Special Meeting Minutes — May 29, 2019. 2. Motion of other. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Special Meeting Minutes — May 29, 2019 MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 29th, 2019 — 4:30 p.m. Academy Room, Monticello Community Center Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Staff Present: Angela Schumann and Jim Thares Call to Order Steve Johnson called the special meeting of the EDA to order at 4:30 p.m. 2. Roll Call 3. Consideration of Downtown Facade Improvement Grant Program proiect status report, authorizing $50,000 in additional funding for Facade Improvement Grant Program, and amending the Facade Improvement Grant Program Guidelines Angela Schumann provided an update on the history of the fagade improvement program. She noted where each of the property owners are at in the program. Schumann provided a spreadsheet that proposed using the percentage of fagade to determined allocation. Bill Tapper also had brought forward an idea of allocation. TRACY HINZ MOVED TO TABLE ACTION ON ALLOCATING $50,000 IN ADDITIONAL FUNDING. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED 7-0. Additional EDA discussion occurred regarding the funding allocation to various properties/projects. The EDA discussed having the facade improvement program be a multi-year grant. They also discussed the importance of opening up a loan program for additional improvements in the downtown. Decision 2: Grant Fund BILL TAPPER MOVED TO AUTHORIZE AN ADDITIONAL $50,000 FROM TIF 1-6 TO THE MONTICELLO DOWNTOWN FACADE IMPROVEMENT PROGRAM. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7- 0. 4. PUBLIC HEARING — Consideration of Adopting Resolution #2019-04 approving Facade Improvement Grant Agreement with Tricambra Holdings, Inc. dba Cornerstone Cafe Angela Schumann indicated that Tricambra Holdings has submitted a complete Economic Development Authority (Special Meeting) Minutes — May 291, 2019 Page 1 1 4 application for the Facade Improvement Grant Agreement. They have selected the lowest quote at $149,335.89 (Purpose Driven Restoration). The contractor is licensed through the State of Minnesota. Schumann noted a gap in financing for the project. Schumann indicated that the owners have decided to provide private financing in the amount of 26 percent of the costs. An escrow agreement would have to be finalized along with a final rendering by Cuningham would be provided. Greg Ashfeld, owner of Cornerstone Caf6, introduced himself and expressed his excitement and commitment to the downtown. BILL TAPPER MOVED TO AUTHORIZE A $60,000 GRANT THROUGH THE FACADE IMPROVEMENT PROGRAM AND A $100,000 LOAN AT 3.5% INTEREST. THE LOAN FUND WOULD NEED TO BE CREATED. STEVE JOHNSON SECONDED THE MOTION. Discussion regarding the complexity of the funding mix and available resources continued. The best formula for allocating funds to projects was also interjected into discussion. EDA members shared their views of idea of community impact from each project and use of that as a measure as well as facade square footage. BILL TAPPER WITHDREW HIS MOTION. STEVE JOHNSON CONSENTED TO THE WITHDRAWAL OF THE MOTION. TRACY HINZ MOVED TO ADOPT RESOLUTION #2019-04 APPROVING FACADE IMPROVEMENT GRANT AGREEMENT WITH TRICAMBRA HOLDINGS, INC. DBA CORNERSTONE CAFE, CONTINGENT ON THE FOLLOWING: A. FINANCIAL COMMITMENT SATISFACTORY TO THE EDA ATTORNEY FOR THE REMAINDER OF THE PROJECT COST B. COMPLIANCE WITH REMAINING GRANT GUIDELINE REQUIREMENTS C. EXECUTION OF A GRANT AGREEMENT INCLUDING FINAL PROJECT RENDERING AND CONTRACTOR AGREEMENT WITH TRICAMBRA HOLDINGS MEETING ALL PROGRAM REQUIREMENTS FURTHER, THE EDA AUTHORIZES A $100,000 GRANT THROUGH THE FAQADE IMPROVEMENT PROGRAM, WITH $50,000 PER FAQADE, A TOTAL OF TWO FACADES WITH THE CONDITION THAT TRICAMBRA HOLDINGS IS RESPONSIBLE FOR THE REMAINDER OF THE PROJECT COSTS AND FURTHERMORE TO AMEND THE EDA GUIDELINES ACCORDINGLY. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 5-0. 5. Consideration of Block 52 Redevelopment a. EDA Discussion - Impressions and Rankings of Developers b. Discussion of Next Steps in Block 52 Redevelopment Process Economic Development Authority (Special Meeting) Minutes — May 29th, 2019 Page 2 14 Jim Thares provided the staff report that highlighted each of the four development proposals for Block 52. Staff created a ranking activity for the EDA to complete during the meeting to vote on their favorite proposal. The EDA discussed each of the developer's proposals. The EDA voted the highest primary developer as the Beard Group with secondary going to Briggs Companies. JIM DAVIDSON MOVED TO DIRECT STAFF TO ENTER INTO NEGOTIATIONS FOR COMPLETION OF A PRELIMINARY DEVELOPMENT AGREEMENT WITH THE BEARD GROUP. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. BILL TAPPER AMENDED THE MOTION TO INCLUDE A TOUR OF THEIR FACILITIES. MOTION CARRIED, 5-0. CONSENT AGENDA (ADDED) BILL TAPPER MOVED TO APPROVE ITEMS 6-8 AS A CONSENT AGENDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7- 0. 6. Consideration of Authorizing Solicitation of Quotes for WSRR Boundary Survey for entire Block 52 Area Recommendation: Authorize solicitation of quotes for a WSRR survey of the entire Block 52 area. 7. Consideration of Authorizing Parks Department to place "Event" signage on EDA Property - 103 Pine Street Recommendation: Authorize event signage to be placed on EDA owned property located at 103 Pine Street. 8. Consideration of Authorizing staff to attend 2019 EDA Summer Conference in Duluth, MN (June 13 and 14) Recommendation: Authorize Economic Development Manager to attend the 2019 EDAM Summer Conference. 9. Economic Development Director's Report Jim Thares indicated that the Volunteer Picnic would be June 27ffi at 6 p.m. Economic Development Authority (Special Meeting) Minutes — May 29th, 2019 Page 3 1 4 10. Adiournment JON MORPHEW MOVED TO ADJOURN THE MEETING AT 7:01 P.M. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 5-0. Recorder: Jacob Thunander Approved: July 10th, 2019 Attest: Jim Thares, Economic Development Director Economic Development Authority (Special Meeting) Minutes — May 29th, 2019 Page 4 14 EDA Agenda: 02/12/20 5f. Consideration of approvin� pavment of bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: Motion to approve payment of bills through January, 2020. 2. Motion to approve payment of bills through January, 2020 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements 0 z 0 4 L+ C '3 � � L O C , O O O O O O OO v� M ir � � �� U U zz �� w w c c v v 0 0 � � � s � � � � � � 5 5 O O `J� `J� � � M M �� o - m m � � � � �� N N � O M .� M N � L'. w w :� `� � � � � O M .� JiCi1 1€:i.Nlk �4hPl NIl(�. c SI;ITC 3v� N1iM�+IlAFL7Ll5. MN S!sf16 - �;F.-f' ., ,.! 4-�� k',I, _ i '�� I� +� YZ �4 ! . � � i �Y� `, � . '" Ciky 4f Monticello D�cemt�er 29, ��1� Attn: VV'ay�� C)berg. 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Please see coding below in red. Also, can we use the attached sensitive info black out invoices instead of the ones that identify which properties are being negotiated? All parties involved are trying to keep it confidential. All would appreciate the discretion in disclosing information. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 21, 2020 3:08 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: Kennedy & Graven (7) Jim If possible, please approve by 10 am tomorrow morning to be included in the check run. Thanks! Julie From: Julie Cheney Sent: Friday, January 17, 2020 10:52 AM To: Jim Thares <Jim.TharesCa�ci.monticello.mn.us> Subject: Kennedy & Graven (7) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101—General EDA- $1,000.00 - 213-46301-430400 InV# MN190-00160 — UMC TIF Development -$875.00 - UMC Escrow Account Inv# MN190-00161 — 4065 Chelsea Rd -$196.20 - UMC Escrow Account Inv# MN190-00162 — 8617 Edmonson Ave -$165.40 - 213-46301-430400 Inv# MN325-00044 — 300 East 4th St -$364.80 - 213-46301-430400 Inv# MN325-00040 — Business Fa�ade Grant -$120.00 - 213-46301-430400 Inv# MN325-00045 — 113 W Broadway -$800.00 - 213-46301-430400 Okay to pay? Please provide coding. Tha n ks, � _Tulie CFieney Finance Assistant City of Monticello 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us AP@ci.monticel lo.mn.us --�°� �'C��1�Ii��' Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2 P�ge: � E'C�nnecl�r � Gr�v�r�, +Ch�rt�red Z^�0 ��kh Sixth Street, �ui#e 47� �U'1ir�neapolis, tvif� ��4+�2 �I#'j+ Of f�011k1��d�� D�eembef �1, 2Q19 �NI�11�C1-��16Q 2�1� IJM� E�c�nc�rrt�� DeveEoprn�nt T1F Throu�� De�emkser �'I , 2D'19 F�i� All Legal �ervices ,4� Folfc�w'� 72117f�p19 �UIfVR B�gin draft of llM� con�r�c� � ,y' �� 4�� '� . Y "r'`•�'�i �'�y � I� l Hours 3. 5� T,�tal Servic�s: $ T[at�� S�rvi�� nd Disbursernenks: � Amaur�t �75 f�Q $75.f}Q 875.00 Julie Cheney From: Sent: To: Subject: Attachments: Jim Thares Tuesday, January 21, 2020 5:01 PM Julie Cheney RE: Kennedy & Graven (7) K&G Legal Fee Invoice $1,000.00 1-21-2020.pdf; K&G Legal Fee Invoice $800.00 - 1-21-2020. pdf These are okay to pay. Please see coding below in red. Also, can we use the attached sensitive info black out invoices instead of the ones that identify which properties are being negotiated? All parties involved are trying to keep it confidential. All would appreciate the discretion in disclosing information. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 21, 2020 3:08 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: Kennedy & Graven (7) Jim If possible, please approve by 10 am tomorrow morning to be included in the check run. Thanks! Julie From: Julie Cheney Sent: Friday, January 17, 2020 10:52 AM To: Jim Thares <Jim.TharesCa�ci.monticello.mn.us> Subject: Kennedy & Graven (7) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101—General EDA- $1,000.00 - 213-46301-430400 InV# MN190-00160 — UMC TIF Development -$875.00 - UMC Escrow Account Inv# MN190-00161 — 4065 Chelsea Rd -$196.20 - UMC Escrow Account Inv# MN190-00162 — 8617 Edmonson Ave -$165.40 - 213-46301-430400 Inv# MN325-00044 — 300 East 4th St -$364.80 - 213-46301-430400 Inv# MN325-00040 — Business Fa�ade Grant -$120.00 - 213-46301-430400 Inv# MN325-00045 — 113 W Broadway -$800.00 - 213-46301-430400 Okay to pay? Please provide coding. Tha n ks, � _Tulie CFieney Finance Assistant City of Monticello 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us AP@ci.monticel lo.mn.us --�°� �'C��1�Ii��' Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2 No�-kh Ris� �ar-t�ner� 611 1rV�lr�uk ='Str�ex S�ike 1 Montic�llo, M� 553�� (��a�j�3�-O�U� City vf Monticella SQS +l�alraut St, �uite i f�lonticello. MN 5�3�i2 �� Cuss�,rrser. �ii� c�i M�r�ti��ll� r �� ., ��..� . .� ._ Cust�r�n�r City af Mon�a�lao �c�# # �ro i i�1 Date t�?2�12Q19 �Ustrt�txl�i' Y�yny'��I�Sh�k ��fi'+�� Erin F�ohRrrf�rt P�g� 1 c�! 1 P�tym�rlt lnforrrxBtFo:r� Ir�v+�i�cc ��rarmary �; 3.:it36 C�f} Paymenk A,m�runt �aym�e�.i $ar: Irivcrir�#��2�r 4J �-�J��9 i 68 :�se �#�tawl-� � nt� r��i��a; „�iti•, �;,a�°rnu--- 3nv�i� �'��ti.� Trarssac�4n {5£s��i #�a� ° , , _ .. �dlsr�ntint �'�i�!cy #UB 4.14�9fi68 1Q�1�'2Q1� 1L�'1CU2t�1� Tra�relers � Tr�veler� Inderr�nity Cfo af Conne�.ticut ;�F�t,��5� 1[]a'1C�r'��11"� P�,I�C+{�h�rrt��: �,'CrrkCrS{:�im�yCns�#i[�n-11i,iriat :3,5��(50 T�otal $ ,.:5:;r� C!� t �--;- ,. � ,, .� �:.,•�.--�t .ti1i}°T.�. ��[.'.iN i�i� li.- �� ii ..� n'.i,�� f� f f F�.'�.i i:r7f.. ;} .�:-��.., n! n��:.., -:,,]'nl�.'�r.i.,:. �.. .5 ,..i..,,..�;7..��..a" �'G�'Tl f...r�..:., e'�7�.. .��..ir ��f'iir i�.s? a.: _.iu�n i2a �;di ,.i?r 1!;.F: . . �'if•:7�' :�.!'tir�'C�i . r r.r !rl S C"t�.. ,.e„d hi6if�1 f�ISiS f �9't11��S 61� V�+�Irtut �Cr�eM Suite 1 �+1�or�tiG�llo, r�r1N �536� {7�3p31 �-�1+7i�C, inic ��:n�^�°i�kpc�r#rletS.Gorn '�2��.' 12��61'201 � �� 7 *-�' � �� 202�1 B�dget +4d�pted - E�CP��DITLIR�� ?"�±2��0 Workers �ornp�ns�#�en Clistrib�ti�r� .4GCOlJN� NtJh�1gER �CiUhdG�L P2jr2b'e 1±�1�4111�1-4'151�0 'J'�+orkers��mpensa#ior InSur�n�e 320{l �Q1-4131�-41�1�:0 L'Vork�ers �ompen�a�i�n insu��n�� 7� 'I�J�-4141�-41�1±�0 �Jslorkers Cc�mp�r��tion �n�ur�nce e-_ _-_.. 3.[70 101�1�2(}�1�14� l�lork�er5 �t�m��nsalion In�urance �O.GQ 101�18(}{1--0��100 �JV��kers �omp�ens�ti€�n Ins�uran�e �.�JQ '907-47�90-4� �14� 1N[�rk�r� �C�rnpens�ti�� Cns�rr�n�� 4.�� 101-�3��C�-�159QC7 SNarocer5 �vmpens�#irn Insur�r�e� 2��.�JC� 101-4��0-41510� 'titilVorker� �c�rnpensaticsn Insur�nce 2�14.�1D 1G1-4311Q-41510fl Vl+�o;�k�rs �c�ra7p�ns�ti�n Insurance 1�3.O�I 1Q1-4�11�-41�i(]fi �rV�rk�r� �c�mpens�t�n Ins�rar��e 11�.�D�i 1u1-4312r�-�41510�7 U�orker� �omp�nsator� I�s�rance ��6 Q�l 1� 1-43 1 25-4 1 5 1 ps; �.+�Jc�rk�rs Gompensatior� I�s�rranc� 2fi0. p�D 1�}1-43'1�7-4151fl�1 Warkers �ompensation Ins�r�nC� 134 I�0 1�]1-4313{�-49�100 'J�+ork��s ��rr¢pen��ti�n InSUr�r1G� 107.f}�D 'IQ��45��1-41�1+�0 l�',lorke�s �omp�r,sa'i�r� ir��ur�nc� �3?.{?G 101��1�i2-�1�1�D '�.�'vork��s ��mpers�€ion ir�sura��e ��.UC� i - �u�td '�S}7 T+�k�l _� �_ 2,28�i.{�Q 2'�3-A�6�f}1-di5100 INork�*r� C�m��nsakian lnsurance 67,4� 217�1��Q-d�151�{i Worke�'s �orrMp�t��ti�n Ir�s�ur�nc� 10.�4 2�8-4� 1��-415 � Gp �+Jc�rk�rs �C�rnpensati�n lnsurarc� 188. 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Please see coding below in red. Also, can we use the attached sensitive info black out invoices instead of the ones that identify which properties are being negotiated? All parties involved are trying to keep it confidential. All would appreciate the discretion in disclosing information. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 21, 2020 3:08 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: Kennedy & Graven (7) Jim If possible, please approve by 10 am tomorrow morning to be included in the check run. Thanks! Julie From: Julie Cheney Sent: Friday, January 17, 2020 10:52 AM To: Jim Thares <Jim.TharesCa�ci.monticello.mn.us> Subject: Kennedy & Graven (7) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101—General EDA- $1,000.00 - 213-46301-430400 InV# MN190-00160 — UMC TIF Development -$875.00 - UMC Escrow Account Inv# MN190-00161 — 4065 Chelsea Rd -$196.20 - UMC Escrow Account Inv# MN190-00162 — 8617 Edmonson Ave -$165.40 - 213-46301-430400 Inv# MN325-00044 — 300 East 4th St -$364.80 - 213-46301-430400 Inv# MN325-00040 — Business Fa�ade Grant -$120.00 - 213-46301-430400 Inv# MN325-00045 — 113 W Broadway -$800.00 - 213-46301-430400 Okay to pay? Please provide coding. Tha n ks, � _Tulie CFieney Finance Assistant City of Monticello 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us AP@ci.monticel lo.mn.us --�°� �'C��1�Ii��' Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2 �L9on#�cellcs EC3A D�c�rrlber 31. �019 MN3�5-�1[�C}44 �0[l ��sk �th �t. P��: � �enne�y � �r�u�r�, �ha�t�red �Q[l Sauth ��xt� �treek, 5uit� �3�4 M;�ne�polis, MN 5�4L12 � �� _� - � �� k .. °� ti'�� ... — is . � � .,� � i _. �, �i � ` �,��'� -�,tii v 1"',h , , ��, T�res��h Dec�rr�ber �1, �01� 1'`' _ _ �� For �111 L$gaJ �ervic�s As F�Il�ws: , ��. � - _ Hour� 1��2d2�119 TMR Revietv �ettiem�e;�k st�4em�rr�: ern�il t� tit�e �ornpany for �7.�p f�rther d��um�r�[s a�t� rn�ifin� i;�struckions. v�erb�f verrfic�tipn �sf r�vinng instruetion5 1�P3l2�1 � TIV1F� Re+�i�e tatl� company d��urrrer�ts for �i�nature; �m�il t� M 0.�0 f ngr�rr� f�r approv3l 1�14i�C�1� f�1h11 Review cl€�sing docurrien#� �r�� ttl�err��n[ st�t�rr�errt Q.3� 9�I4J,�C?19 TMF; �#�view �W�osirg �osts an P�r�has� Agreement; �or�firrn cerrr��k �� 5�ttlerrient �tatem�n#; phc�n� calls w�th M Ir�g�ram t� c�rnfirm, int�a�ffi�� nT�ren�� v�+i;Y= � Rockli� r�g�rding Settl�rr�ent S#�telm�nt ��'�4l2C+1� TMR �m�il tv Ji� Thcrrse wi[h ��osins� dt�curnent� �nd ir�str�cti[�ns; Pr�stcu�tir�n I�tter #Q cl�ser 12l�l2Cl1� T�R �m�il t�s clas�t #p `oll�5v u� �r� �Ipsing "2?�l��'+� T�4+1� Er��il from �lose.� �an�irrr7irg �undin;� �nd �cl��ing dacum�nk �opi�s �II ex�c�rt�d do�;urlter�ts sa+��d to fil�; Cls�� but Total ��aic��, Tntal ��vices an�f �7isb�rs�rner�ts: $ � G� 4 `� .�;. Arnr�unt 25 4i] � 3, �Cl �p.�{} �6� 5� 76.20 12.7C� �3 5� 3 64. ��p 36d.�� Julie Cheney From: Sent: To: Subject: Attachments: Jim Thares Tuesday, January 21, 2020 5:01 PM Julie Cheney RE: Kennedy & Graven (7) K&G Legal Fee Invoice $1,000.00 1-21-2020.pdf; K&G Legal Fee Invoice $800.00 - 1-21-2020. pdf These are okay to pay. Please see coding below in red. Also, can we use the attached sensitive info black out invoices instead of the ones that identify which properties are being negotiated? All parties involved are trying to keep it confidential. All would appreciate the discretion in disclosing information. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 21, 2020 3:08 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: Kennedy & Graven (7) Jim If possible, please approve by 10 am tomorrow morning to be included in the check run. Thanks! Julie From: Julie Cheney Sent: Friday, January 17, 2020 10:52 AM To: Jim Thares <Jim.TharesCa�ci.monticello.mn.us> Subject: Kennedy & Graven (7) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101—General EDA- $1,000.00 - 213-46301-430400 InV# MN190-00160 — UMC TIF Development -$875.00 - UMC Escrow Account Inv# MN190-00161 — 4065 Chelsea Rd -$196.20 - UMC Escrow Account Inv# MN190-00162 — 8617 Edmonson Ave -$165.40 - 213-46301-430400 Inv# MN325-00044 — 300 East 4th St -$364.80 - 213-46301-430400 Inv# MN325-00040 — Business Fa�ade Grant -$120.00 - 213-46301-430400 Inv# MN325-00045 — 113 W Broadway -$800.00 - 213-46301-430400 Okay to pay? Please provide coding. Tha n ks, � _Tulie CFieney Finance Assistant City of Monticello 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us AP@ci.monticel lo.mn.us --�°� �'C��1�Ii��' Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2 f��: 4 �@C�l��ij� � �"a��V�'dl� ��1��1"�:� Z�'� �outl� �rxtt� Stree# �uit� �7(l M;rrne�p+�lis, f'ufN 554Q2 �it�+ �f Montic�Jl� L�e�c�mb�r3�, 2Q1� MN7�p-Q{��6� 5�17 Edrnr�nsnrr Ave. Thro�gn C�ecernb�er 31, �1�19 Fc)r l�ll Leg.�V S�rraices �45 ��Ilc��,rs: 1�{2+2(l1 � M'NI Em�il �orresps�nd�n�� with r� �S�humanrs reg�r�.ing �rnendr-ren# �� P,� 12J2,��D"I9 Thl�R F�evise d��d �, , �,� ��'G s;�-: �� ti _ _ ��, �� .�__ � F�lours Amc�unt 0 2(} 4Q.�0 0.2U 2�.�}D �2�3�}��Ci1� f�Nl Draft �rn�rtdmen# t[� RA for Ed�'n�nst�n - a�id requir�rr�ent C 50 �` rerie+d�aEior� o` s�wag� sCud�e by �i'y. T�pt�l Scrvices: $ T�t�l S�rvic�s �n�i Disburserner�#s; $ 1 ��Q O(9 �fi�.4fi 165.40 Julie Cheney From: Sent: To: Subject: Attachments: Jim Thares Tuesday, January 21, 2020 5:01 PM Julie Cheney RE: Kennedy & Graven (7) K&G Legal Fee Invoice $1,000.00 1-21-2020.pdf; K&G Legal Fee Invoice $800.00 - 1-21-2020. pdf These are okay to pay. Please see coding below in red. Also, can we use the attached sensitive info black out invoices instead of the ones that identify which properties are being negotiated? All parties involved are trying to keep it confidential. All would appreciate the discretion in disclosing information. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 21, 2020 3:08 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: Kennedy & Graven (7) Jim If possible, please approve by 10 am tomorrow morning to be included in the check run. Thanks! Julie From: Julie Cheney Sent: Friday, January 17, 2020 10:52 AM To: Jim Thares <Jim.TharesCa�ci.monticello.mn.us> Subject: Kennedy & Graven (7) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101—General EDA- $1,000.00 - 213-46301-430400 InV# MN190-00160 — UMC TIF Development -$875.00 - UMC Escrow Account Inv# MN190-00161 — 4065 Chelsea Rd -$196.20 - UMC Escrow Account Inv# MN190-00162 — 8617 Edmonson Ave -$165.40 - 213-46301-430400 Inv# MN325-00044 — 300 East 4th St -$364.80 - 213-46301-430400 Inv# MN325-00040 — Business Fa�ade Grant -$120.00 - 213-46301-430400 Inv# MN325-00045 — 113 W Broadway -$800.00 - 213-46301-430400 Okay to pay? Please provide coding. Tha n ks, � _Tulie CFieney Finance Assistant City of Monticello 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us AP@ci.monticel lo.mn.us --�°� �'C��1�Ii��' Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 2 Pa��: � ��r�r�e�ly � ��nr Ch�rter�d �s�� So�th �ixth �'.reeC. �U�t� �70 Minn��pali�, MN ��4�2 �+1��tiC��tl� E�[}�A o��,��r ��, �v�s f'�N�25�{�0045 113 'U'Ue�t Broadway � ; ,�_ ',�` -'�i�I l i ,��y,�i ,��.� ,.1 �.� ti k� �1� _n � �� - � �� ,. ��.�, �� ''�� ` '��ti 1 "� � � � - �� '. ;,., ti "�''k � � TY�rough Decerrsb�r �1, ��79 - F�r A�II l�egal S�rviees A� Foll��s: 12l5,r��1 � MNI Drai* Lfll fc�r He�tor� pr��erty Hours r"1r�r�r�nt 7.OQ ��iCi (J{l 1�f612d99 �Nf Revi�v�+ responses #o h�lontic�9'� Neaton �C�I que�tion5; {�.40 emaif �:�rr�spon�ence v+�ith J Th�res re��rding so�me 1�I�1�019 hr1�J� R�+ri�'„wr upda�ed LC�I; �o��em�il to ,� Th�r�s re�ard�n� sam�p.�0 ��l9f�� IkriNl F'h�ne �eacr�rers�ti�n with J Thar�s reg�rding LC76; rev se 0.5�? 2nd �ir��l�t� sarrre '�211 �1;�{�� la+1Nl ��r�e �onver�sati�n with J Th�r�s regardin� Hea��n LC71; {� 9[� revrs� L+DI p�r J Thares �cyrnr'�ent�. 1��17�201� MNI R�urs� and fin�li�e L�I ��r Heaton p�r J Th�re� �r�d A �.80 5ch�r��nn ��mrner��s. �ircul�#� Tntal �ervices: $ Tot:�M ��rvic�s and C�i�bur�s�rnents: $ �O.Op �0. �0 80 (�, 00 �00.1� Q F'age: � K�nr��y � �ra�r�n, �hart�ered 200 �c�u#h S«th �#re�#, �uik� 4i ; A�linneapolis, !V"iN �5��?2 ��,� �� Dec�m��r 31. �01� �+1hJ190-+J01�1 �Gerier�l EC�A� Mait�rs � � � . ° __..,��'� � . _ ._- - -�� `� ��y �- `r' � � ! 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R�,�ii2�'rzx� rt��t�� 1:�� an�i �'tq 4��R c��nr: '�r+�jeet; �� LIC FI�IA�dCE rr��.FnzcE s�r��E��i��ar {� itk� �,f '�'Innticellc� �e �x �4k��ak��nent �+i�eu�s«n }��oth l"�'ri�ht �+.�unk}' �unkac�= �ion Thares �crrne,mic D��fe�upm�nt '��9�n��;��r Cit�' irof h•ic?n#icellc3 5(�I5 l4`�lnut Str�t Suite 1 414�r�tic�.lun, 1�7�] ��362 Bilying Periv€�; L)r�_�•rr�k,r:'r ?117� �ien.^iees Perf�nrmed • tSeeksng a+�iki� 1��ri�i�t �-d�un[�' c�r� tax abat�m�nt Staff Time �xpens�x �'4�S�I�1C1F1 �er�ic,r f'rt,f�i55ic�n��l f�rc�fessic�nsz] �u�,F3c,rt T{�t.al Staft .�9�lea�� Print�ng C�#}�er 1494c1� �k�.�6'115L".� �D�i� �7'YES P�TL[7� Fruje�l Sumrnary T:3i�l B�,d�et Cir�led This P�eric��i F#il�ed PTet�i�aus ESudgek f��maining "ds'itlt:r� �+�� lata�arl�� hr�wic prrr�rtt�r�f t�, strtff r�ra�e��'� ic}�v Rate S1�Q �14:� �l3 � �� rthl�nd �curities, �n�, I��r�e 2 of 2 Julie Cheney From: Jim Thares Sent: Tuesday, January 14, 2020 4:21 PM To: Julie Cheney Subject: RE: Northland Securities $540.00 Yes, this okay to pay. Please code to: 213-46301-431990 From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 14, 2020 3:56 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Northland Securities $540.00 Jim Attached is Inv# 5933 from Northland Securities for services related to Tax Abatement discussions. Okay to pay $ 540.00? Please provide coding. Thanks, Julie CF�eney Finance Assistant City of Monticello 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us APC�ci.monticel lo.mn.us {'fTY C!F �..�� '��'ll� EmQil correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data PrQctices Act and may be disclosed to third parties. i � �� n�� .� i1:5 � �'.:II�C?. :: � J:1. ��L[�r' Pf i�`'�G7111�.�:L'I�il 5{}5 k4'aLlut SC. StC i Nla�nkiccllo h�t;� y43{i:-��=�' .._ _�,I.. .. ._� �I+�� +��I�lti��` Tnrrc�ic� #� � � 4�� '4� �3 �—r�. �� ;��_-� - � ;s 1 � �•� , � ,M1I'',� I � Ih, _ �, ',7rI�� i� ` InV�� a�e B�I�r�� : �s �s �� ~ � t�.�:t .li...i�-:'rli1�.•r...:It,..l.:_:1.I�r,�il.' � .,s. . ' ::.i �o�.n, s.r:�,o,i,,;� -`�.I•:i�:; k1'71�i �3fi73�IQ4' ��_;zr�?s�. 1��,- c�;�iin7�in_,�. �ii.. �.t,.i;.�i:ii�� 1'CI�J�'fl'�til:s. II; i_�iIS.U...�� .. 1'f1n[leS�i�_ , ��, 1'n�aiee Tcatdl ?.a�s1.��1 � Am�+unk D�ue ��I].I14� � Ih�PiSf�TANT: Ple�s� �n�ke payak�� #v Ir�i#i�liv�e Foun�i�ibinn c�rtly �rtd m�il 10' Initiative Four�d�t�crrt 405 First �tree# Svu#�re��s Little F$Ils, hdN �634� Phon�; 3�i��6��-92�� Julie Cheney From: Jim Thares Sent: Tuesday, January 21, 2020 5:10 PM To: Julie Cheney Subject: RE: Initiative Foundation $2,390.00 Attachments: Item 4d. Consideration of Initiative Foundation 2020 Funding Contribution in the Amt of $2,390 v2.docx; Approval Documentation - 121119 EDA Minutes w yellow highlight v2.doc Yes, this is okay to pay. Please code to: 213-46301-443300 See Supporting documentation. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Tuesday, January 14, 2020 3:58 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Initiative Foundation $2,390.00 Jim Attached is Inv# 11616 from the Initiative Foundation regarding a 2020 pledge. Okay to pay? Please provide coding and any additional backup there may be. Thanks, _TuCie C(�eney Finance Assistant City of Monticella 763-271-3205 Julie.CheneyC�ci.monticel lo.mn.us APC�ci.monticel lo.mn.us --�°� �I'�'C��1�Ii��' Emnil correspondence to nnd from the City of Monticello government offices is subject to the Minnesota Government Ontn Prnctices Act and mny be disclosed to third parties. i MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December llth, 2019 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Steve Johnson, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Commissioners Absent: Bill Tapper Staff Present: Jim Thares and Angela Schumann 1. Call to Order Steve Johnson called the Regular Meeting of the EDA to order at 6 p.m. 2. Roll Call 3. Consideration of additional a�enda items None. 4. Consent Agenda LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 7-0. a. Consideration of approvin� Re�ular Meetin� Minutes — November 13, 2019 Recommendation: Approve Regular Meeting Minutes — November 13, 2019. b. Consideration of approvin� Workshop Meetin� Minutes — November 13, 2019 Recommendation: Approve Workshop Meeting Minutes — November 13, 2019. c. Consideration of approvin� Re�ular Meetin� Minutes — December 02, 2019 Recommendation: Approve Regular Meeting Minutes — December 2, 2019. d. Consideration of 2020 Initiative Foundation Contribution in the amount of $2,390.00 Recommendation: Approve $2,390 allocation to the Initiative Foundation for its 2020 fundraising efforts. e. Consideration of 2019 underpavment in the amount of $587.42 for common area maintenance for EDA owned lot located at 220 West Broadwav Recommendation: Approve the common area maintenance underpayment amount of $587.42 for 2019 associated with the EDA owned parcel located at 220 West Broadway. f. Consideration of approvin� pavment of bills Recommendation: Approve payment of bills through November, 2019. Regular Agenda 5. Consideration of 2020 Wri�ht Countv Economic Development Partnership (WCEDP) Membership Fee in the amount of $2,606.00 — Duane Northa�en, Economic Development Authority Minutes — December 11, 2019 Page 1 � 4 Executive Director, WCEDP Jim Thares introduced the topic and Duane Northagen from the Wright County Economic Development Partnership (WCEDP). Northagen explained that WCEDP is the only county wide economic development organization. The WCEDP is primarily funded through Wright County with member dues making up the balance of the funds. Northagen explained that the organization assists communities in Wright County with their economic development needs. Their scope of work is dependent on the needs of the individual community. Northagen explained several programs and organizations that WCDEP is involved with including: MNCAR, CMA and workforce pathways. Northagen invited the EDA to attend their annual meeting on Friday January 31, 2019, which includes a breakfast and award presentation given to four communities for their work related to economic development. Ross Bernstein, author and noted motivational speaker will be the featured guest presenter. TRACY H1NZ MOVED TO APPROVE THE 2020 ANNUAL WCEDP MENIBERSHIP DUES 1N THE AMOUNT OF $2,606.00. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 7-0. 6. Consideration of Preliminarv Residential Development Concept for 16.7-acre Countrv Club Addition parcel along 7t'' Street West (adiacent to I-94) — Michael Hoa�ber�, Headwaters Development, Lakeville, MN Jim Thares introduced the item and explained that Headwater's Development Company has developed a concept for a 120-unit apartment building along with 37 detached patio homes geared towards seniors. Headwater's Development, LLC has started construction of its 96-unit senior living facility on County Road 39 near the Kwik Trip Convenience Store located on Hart Boulevard. The proj ect was approved by the council in the spring of 2019. They are interested in the property that is owned by the EDA along Interstate 94 (16.7 acres). Thares introduced Michael Hoagberg of Headwater's Development. Hoagberg noted that when they invest in communities, they are in it for the long-haul. Their proposal is geared towards age restricted affordable units and takes into consideration the ability to offer services and features that add value to the proposal due to the presence of the assisted living facility. The staff and programing can be more intensively used to provide opportunities to residents of this proposal as well. Angela Schumann, Community Development Director noted that the EDA would need to enter into a Right-of-Entry with Headwaters so they can complete soil testing and other due diligence before purchasing the land. Economic Development Authority Minutes — December 11, 2019 Page 2 � 4 Jim Davidson asked for more clarification on the phasing of the project. Hoagberg explained the that the project would be separated into two projects, but development could be run contiguously. Steve Johnson asked what the next step would need to be to move the concept development proposal forward. Hoagberg explained that access to the site would need to be granted from the EDA. Hoagberg noted that the site would be restored to its original condition from any work such as surveying or soil testing. Tracy Hinz asked if there any guidelines for living on the property besides age restrictions. Hoagberg commented that 100% of the units would be affordable and meet the 60% AMI. 011ie Koropchak-White asked if they have completed any other similar proj ects before. Hoagberg noted that they are working on a proj ect in Chanhassen. He noted that they have completed this type of proj ect before, but not without the health care component. Steve Johnson asked if there was a shortage of this type of housing/segment to be filled. Davidson asked if residents in these apartments would have priority to medical services offered at their senior living facility being built on County Road 37. Hoagberg commented that it could be an option, but that they would have to work through the details. Hoagberg also stated that home care services could come into the homes of these residents. An expansion was noted on the plan sets that were provided in the EDA packet. Lloyd Hilgart asked if the expansion project could accommodate another assisted living. Hoagberg explained that there were not planning to have any restrictions on the units. The emphasis will be to address the needs of seniors. Hilgart noted that the State recently made changes to the assistance for affordable senior housing projects. Hoagberg summarized that a new scoring system exists and that to score high, the project needs to have 100 percent affordable housing. Hoagberg also commented that they are working through whether the patio homes would also be 100% affordable. He stated that they would not necessarily need to be affordable and that the rent would be within 10 percent of the apartments. TRACY H1NZ MOVED TO APPROVE A RIGHT-OF-ENTRY TO HEADWATERS DEVELOPMENT COMPANY WITH THE EDA. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 6-0. Davidson asked if elevations have been completed and if rental rates have been established. Hoagberg declined but stated that the project would be complimentary to the construction of their facility on Country Road 37. Hoagberg noted that he would present the rental rates at a future time. Jim Thares recommended not entering a letter of intent with Headwater's Development as the EDA needed to understand the value of their land. Economic Development Authority Minutes — December 11, 2019 Page 3 � 4 An EDA workshop could be scheduled in January to further discuss the proj ect. JON MORPHEW MOVED TO TABLE ACTION ON ENTERING 1NT0 A LETTER OF 1NTENT WITH HEADWATERS DEVELOPMENT. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED, 6-0. 7. Director's Report Jim Thares provided the Director's Report and reviewed the Prospect List. Thares explained that staff have been working with UMC to submit a funding application through MN-DEED called the Minnesota Investment Fund (MIF). The application is expected to be submitted within the next week or so. Staff and UMC would also be submitting another financial assistance application to the JCF (Job Creation Fund) program through DEED about a week after the MIF submittal. Angela Schumann explained that the City of Monticello has been working on revising its' Comprehensive Plan. The plan is broken into two key components: vision and the comprehensive plan. It was noted that the draft vision report is ready for review by the community and City Boards. Schumann requested comments from the EDA by December 23ra A final report would be presented to the City Council in January and the comprehensive planning process would begin shortly after that. Schumann also explained that there is an opening on the Planning Commission and that staff are actively searching for an addition to that board. 8. Adiourn TRACY H1NZ MOVED TO ADJOURN THE MEETING AT 6:46 P.M OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED, 6-0. Recorder: Jacob Thunander Approved: January 15, 2020 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes — December 11, 2019 Page 4 � 4 EDA: 12/11/19 4d. Consideration of 2020 Annual Fundraisin� request in the amount of $2,390 from the Initiative Foundation (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to consider a funding contribution to the Initiative Foundation (IF) for its annual fundraising campaign. The Initiative Foundation is again seeking contributions that will be applicable to and payable in calendar year 2020. The amount of the 2020 request is $2,390.00. The Initiative Foundation works with cities to provide favorable opportunities to advance community and economic health. Initiative Foundation programs consist of loan and grant funds for community and economic development activities. As you will note in the funding request, the IF's grant funding contributions to communities and organizations in Wright County during the past few years has amounted to $2,472,666. Loan's provided to Wright County businesses, in a similar time frame, have totaled $4,323,429. Those loan dollars have helped secure 1,056 quality jobs. Over the past year, the Initiative Foundation has funded grant for the Coalition of Utility Cities Xcel Energy Transition Study and the Central Mississippi River Regional Planning Partnership efforts, both of which directly support efforts to keep Monticello's economy strong. It should also be noted for every local dollar invested into the IF's fundraising efforts, they are in turn able to invest an average of $3.83 back into the communities they serve in the form of loans grants and scholarships. B. ALTERNATIVE ACTIONS: Motion to approve $2,390 allocation to the Initiative Foundation for its 2020 fundraising efforts. 2. Motion to deny approval of $2,390 allocation to the Initiative Foundation for its 2020 fundraising efforts. Motion to table consideration of the calendar year 2020 funding allocation to the Initiative Foundation and direct staff accordingly. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The Initiative Foundations grant and loan programs are good programs and often serve as a source of last resort for businesses and organizations pursuing community enhancement and sustainability obj ectives. D. SUPPORTING DATA: a. Initiative Foundation Letter Julie Cheney � �.,' ;�: ` `¢�'3 � From: Bullseye Property Management & Realty <mail@managebuilding.com> Sent: Sunday, January 12, 2020 3:14 AM Ta: A P Subject: Lease statement for Broadway Parking Easement - COMMERCIAL - 2 as of 1/12/20Z0 � Bullseye Property Management & Realty PLEAS� NOTE: D[� NOT REPI�Y T�D THIS EMAIL ADDRL- SS This email message was seitt from a nati#ication-anly address that cannot accept incaming email. Lease s�atement as of 2020-01- � 2 City af Monticella Economic Dev�lopment Authority 35 Lake St Suite 500 Big Lake, MN 55309 Dat� Memo Prior balance 10/3112019 11/1/2019 12/1/2019 121312 D 19 1214f2019 12I2i12 a 19 1111202Q 113I2020 2/1/2020 Paymer�# Common Area Maintenance Comman Area Maintenance Payment 2019 Cam shortage Late fee Common Area Maintenance Payment Common Area Maintenance Account #: 00405914 Amount ($ � 21.60} $121.60 $121.60 ($121.60) $587.42 Balance $0.00 $Q.00 $5$7.42 $596.23 $717.83 ($709.02} $8.81 $1�1,60 $130.41 Balanc� du�: $130.41 Payment is due on the 28th of the �nonth. If payment isn't received, a one-time fee equal to 1.5% of outstanding �alances will be charged an the 27th of each r�onth. Manage your account online: http://bullseye�roperties.managebailding.com i Julie Cheney From: Jim Thares 5ent: Friday, January 17, 2020 133 PM To: Julie Cheney Cc: twardy; Angela 5ehumann Subject; Z2Q West Broadway Parking Easement Common Area MaintenanCe Fee Attachments: 220 West Broadway Vacar,t Parcel Parking Easement Common Area Maintenance Charges 1-17-202�.pdf Julie, see the late charge in yellaw highlight. I 5poke to Michelle Twardy, Buflseye Properties, abaut it and she said to ignore it as the computer automatically generates the late fee. She and I had spoken about the timeline for the City Council review and approval of the 2019 underpayment in m�d-Qecember (after the EpA appro�ed the underpayment on Decernber 11, 2019J and ciarified the administrative process that the City's approvaE would oecur on 12-3019 and with that known had an unders#anding that the late fee wou�d not be applied to the EDA. i f � 0 z 0 4 � C � � � 0 C � � N N I � N I N o o I � I � I I � ..'7 ..'7 ..'� ..'7 O O �., N �� N � 0 0 0 0 0 0 � �� O N O �� O i.. ;_ � fn M M � � M M � �� O N N N � � � N N � ;7 `� .-y .-y .-y '�+�' O '��' .-. .-. � O O Q Q Q � y .y? .�? o V] CC .ro � y e o � � F o C, � ti � � � � v� ��-� ;!� ,-7 = v] � C, W o n' o � y o .o q � � �' q � a Vi W � � y � T [i� '� � � � :�. � v� c '" o ;¢ � � j � CG a+ C� � Z P7 o cn � N y y � � � � � N � � � r � � � � O O O � � � O O v� v� v� Q�' C � � � � O O l� l� l� W � � � � � � � � � � � H�+ F^ F^ /a � � Cr C�. C�. � Q Q CC CC U U U `� 0. 0. � � � � :1 :1 0 0 0 � ¢ ¢ `r+ `r+ �r+ P� P7 P7 F F F ;J7 V7 V7 U U U � .7 � O O O O O O N N N � � � � � � o - - m m m W �:J �:J � � � � � � N N N O 7 � 0 M � � N O O :11 :11 � � 7 7 �� 0 0 M M � � � � � � N N � a � N � O N O N N N O- a O � p i. � � F� � Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Acco u nt: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@ merchanttransact.com Thursday, December 5, 2019 8:47 AM AP Your bill from City of Monticello, MN is ready. 12119WEBINSERTS.pdf Previous Reading Serial Date Reading Current Charges Water: ACH Credit - Auto Pay Water: E-Bill Credit Stormwater: STORMWATER / NON-RES Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 1/1/2020 * This was the amount due at the time of billing. 007256-004 MONTICELLO EDA (213-46301) 130 BROADWAY E 11/1/2019 to 11/30/2019 (30 days) 12/6/2019 1/1/2020 Current Reading Date Reading Cons ($1.00) ($0.50) $7.00 $5.50 $5.50 $5.50 $ 0.00 $5.50 $5.50 To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Acco u nt: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@ merchanttransact.com Thursday, December 5, 2019 8:47 AM AP Your bill from City of Monticello, MN is ready. 12119WEBINSERTS.pdf Previous Reading Serial Date Reading Current Charges Water: Water: CITY WATER - NON-TXBL Water: ACH Credit - Auto Pay Water: E-Bill Credit Sewer: SEWER - COM/MONTHLY Sewer: SW DISCHRG FEE - COM MONTHLY 2% Stormwater: STORMWATER / NON-RES Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 1/1/2020 * This was the amount due at the time of billing. 007256-007 MONTICELLO EDA (213-46301) 103 PINE ST 11/1/2019 to 11/30/2019 (30 days) 12/6/2019 1/1/2020 Current Reading Date Reading To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Cons $0.00 $7.10 ($1.00) ($0.50) $9.00 $0.18 $7.00 $21.78 $21.78 $21.78 $ 0.00 $21.78 $21.78 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Acco u nt: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@ merchanttransact.com Thursday, December 5, 2019 8:47 AM AP Your bill from City of Monticello, MN is ready. 12119WEBINSERTS.pdf Previous Reading Serial Date Reading 68621907 11/1/2019 41123 Current Charges Water: Water: CITY WATER - NON-TXBL Water: ACH Credit - Auto Pay Water: E-Bill Credit Sewer: SEWER - COM/MONTHLY Sewer: SW DISCHRG FEE - COM MONTHLY 2% Stormwater: STORMWATER / NON-RES Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 1/1/2020 * This was the amount due at the time of billing. 007256-008 MONTICELLO EDA (213-46301) 112 RIVER ST W 11/1/2019 to 11/30/2019 (30 days) 12/6/2019 1/1/2020 Current Reading Date Reading 12/1/2019 41123 To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. � Cons 0 $0.00 $7.10 ($1.00) ($0.50) $9.00 $0.18 $7.00 $21.78 $21.78 $21.78 $ 0.00 $21.78 $21.78 �'cn:ic,r ��_ . I��te �}i' �'frar�s�ctic�n _ �� .�' �'� CNTY [7F MONTI�Ed.Li� �it� Hall �ard Transacti�n Fleas�e attacfi #h� ir�v�aite,�rete�pt and any �th�r a�ailable dvcument�tian tcs �his f�orm. To 1�e compl�ted by purth�ser: � �� Aamr�urrt � � Circle p�rcha�er n�m�; ��,i;� cr,��,�� Ti rac�r Erger� Vi�ki L�erhoff Ra�h�l Lec��rd 1t#f [�'Neill VV�yne Dber� ��rah R�th4�sbe��er 1�nr�if�r �chreik�er �;rgela 5chu� l�c�h Th+unan�er Spe�ial Pr€ajec# # or D�scfipti�rr ^� � �.ir�le �d�e�artm�nx c�de: -4530 �. 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P:re st�e�t �i� Box 192 fu4nnticeo c. h�N 553�� i7�3i �95-�'��] ' fax� (763; 2�?�•27G5 inf�d�rnor�ti�ell�+�� ;,�m r��r��ii� c��y �� c.avunks F'aya�l� 5G�'Jti+a�nu# �#'e�t �uite #t f�lc�`1tiCell�7. fa'lh1 �5�62 ti'�e �ppteciate your prornRt pa}�rnent. � [)esGriptfon G�'e�rn�er l,un�.h, ?�i�mber f+ �.� ti � � G__.. . . _ __ _ _ . . In�roi�� Invoi�e �ate; "��5?1� involee NurrSb�r: �"� � Ac�aunt ID� , - �� ,� +�� `� ; L� ti+' �' � � ', � ;� ;�� ° - :._,��,� � � � � ti �I �ti �. � 1 �t�' i�Y 4y�, �.� `� � � � _ _ — -• �-.�� errns Du� D�te hlei 1v CtU��tity R21#e ___.� -_ _ - 1 �1:�.�:�C Subl�t�l; - _ _ Tax; Tatal: PaymenUGredi[ ,4�pliecie -- - -- f�alante: �1.�:,'c'�' 7 � Arr�o�nk 71:= C�[; $15.00 �9,4C� s��,00 ��_�o 51 a-{�p ; J�tie Cherney F rq�rrrl: Se r� t; T�: �ubj�ct: TL�J 4��J �d'�}144+� 44/� �4+�. Jirn Th�r�s Th�,rSd��, C�2�err�iaer 1�, 2€}19 �:2� A,M. ,�4.lie Ch�rt2y ��: r�f� �e fr�m '��1�,nt �e;l� ��,�mbe� af Cdrnr�er�� nd I��dus'�v Fr�rrti.J�ali� Chervey<�uli�e,Ch�ney�a ci,rncrnticell�.mn,�s� 5ent: Thu�sday, Decerr�ber 12, 2�1� �.�1� Af�l Tc�; Jim Th�r�S <Jirn.Th�res[aa ci,m�or�tic�ll�.m.n.��> S�bject, FV�+�: Inv�iee frorri Fvlonti�ello CFuamber c�f Cornr�nerc�e and Industry� Jirn {"�kay t�o pay �15 f�r tFae �hamber I�nch yvu atk�nded? Thar�ks Ju�ie From; f��'I�r�y A�nderson [rrt�ilt�i.rt'tar�v[�rro�ntice�llocci.corr�] 5ent: 1��.+edn�sday, �ecernber 11, 2019 3;27 Pf�,+1 To; �P �APC��i.r'��onti��llo.rt�n,+�s� 5ubje�t; hnvs�i�� frc�rr� Mc�nti�elM� Ci�amber of Cc�rnm�rce and In�l�stry Zl��r _iie�y: Y�� Tt��nir.c f�r tfi� C't}at�7��:�� liet�chc.�i� i� �ticickY�cl, I�iease r��nit �as-a��en� at �=��ur �4��i�;� �c,�1��,i�:n��. 1�'c�u S�'B�� j]T3C� iJ �C]ZI� t�i th� �Si�itc�tn a�t this �i��t�l tn �+��° hills �r�litte, �in�:e�-�:l��, '��1c��Aucello +�'hszl��l��- c�i° C'c�a1�n��r�e =En�{ Illilil_tiCl"� l`7�G?�l ?�)7-? r�C� Tc:� ��ie��;'�3�t}� l�ill� can13i3�_ �l+�t�:�� click hcrc �I�h�s e:r�8il v.�3s ser:l �r7 �eh,�'f oi �wio�k•Fe�ll� Ch2�n�r;�f �pr�mer�e an� Industry b°� Grc�v.�t�Lo7e. A�37 [:W�.r�ty R, ac T�'. N,3sv.°2. f�%fi�l 5�a€�� Ta urss��nb� cl�ck h�.r� �f yau hav� que�l�Ur,s a� comr�rrc,nis co��err�ing Chr� eir.ai; or �rotin+t7Zone s�rwi�es in �ener�l, �lease r;,rslaU? t�s �a� err��il �a ��P��'..� r7sYth z€� n�, [: � -rv hAc�nti��llo CF�amb�r of Ceyrnmerce and 1ndu�try �� ,� �t�� +� B�x 1 �2 M�rt cel �. hAh� 553E2 '7�3j 2��-27�°�C1 � �ax: ?.:i��j 295-2'C5 s nfC�� rn anti ve li c�ui. �om h.9onCi�G211�i �i#y� �pf AGCO�rr�s P�y��l� 5�� VsJeErs�k Skre�k S�ulte #1 hA�n^.icell�, MN 553�2 I nr��ic� Invoice b�te: 12ii�r`19 Inuoic� Nurnher: E2��" ACcvunt la: ..�-- p ��'�� '6 i .,;,�; �� `h � �, •0'4 -� � il � ti _., I� �� s�� '� � � e�f i� y� �� < � ^ {� � � � � � , i�� ,7'�{ �' ��'��. ti�� 41 �'! �� , , Descriptian Ch�rnb�� L;�rvCh P.�embe• 4 ._. . �. � ! �. �_ _.___ _ — - . - Terms "J8k � : 'aU�n#ityr �'at� -�� .� ..7C� Subtvtal � ,� Tax= T�rt�l= P�yrnen�'Credit Applied: Balar�ce; �� ,�3�� i�lie �hera�y �ram: Sent: T�a; 5ul�jec#; Yes, tY�is is t7k2y to ��+y. Jirrs T17ar�s Tr�ur��i�y, Dece�n�er 1�, 20'i9 4:29 PII� Julie Ch�r�e)t RE: I�uoice �.�om �,+'lontieel o Ch�mber of ��mm�rc�e an� In�J�stry Frorn: Julie Chene�+ <aulie,Cheney a(�9�i_mont�cellr�.rr�r�.us� Sent: Tha,rsd�y, D�cember 1�., 201�9 4:18 PM Tt�: Jim Thar�� irn,Th�r�es�ci.monti�ellv.mn.us> SubJ��[t� F1lU' In+�oice frvrr� Rflantitellv CF��imb�r c�f Ct�rnmer�2 �nd Irtdustry �I� ,Att�[hesd i5 In�# 6��7 frorn the Cham ber ftir #he lu�ch� �+o� �ttend�d. Okay� to {�ay �15,OC1? �"han'�s Juli� Fram: MarcyAn��rsvn [m�ilt�;rr��rcV��c�nticel��cci,cam] Ser�t. 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PUBLIC HEARING - Consideration of Opening and Holding a Land Sale Public Hearing in relation to the EDA's Proposed Sale of a 7.39 -acre parcel of land, described as Lot 2, Block 1, Monticello Commerce Center Sixth Addition, Wright County, MN to UMC for an expansion project (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to open and hold a Public Hearing regarding its proposed sale of a 7.39 -acre parcel, located along Chelsea Road, to UMC Real Estate, LLC for development of a 52,000 square foot light industrial facility, pursuant to Minnesota Statutes, Section 469.105. At the Hearing, the EDA will determine if the proposed sale of the property is advisable and comports with the goals and objectives for its Central Monticello Redevelopment Project No. 1 and per the City's Comprehensive Plan. In pursuing the expansion proposal, UMC had asked that the EDA provide assistance in the form of a land conveyance and write down in exchange for developing a new 52,000 square foot facility and creating 43 new FTE jobs over the next 2 years. UMC also plans to add an additional 17 FTE jobs at the new facility from 1-1-23 through 12-31-23. UMC identified a vacant, development ready site, adjacent to its existing 72,000 square facility as the best , location for the proposed expansion project. The EDA approved entering into a Purchase Agreement with Monticello Industrial Park, Inc. (Shawn Weinand) at the November 13, 2019 meeting. The EDA's sole purpose of acquiring the property is to then convey it to UMC for the proposed expansion project. The negotiated price for the property is $1,031,000 with closing transaction to occur on or before April 1, 2020. The next step in the process is to hold the Public Hearing and then consider a Purchase and Development Contract for the sale of the property to UMC Real Estate, LLC. A Draft Purchase and Development Contract was provided to UMC for review and comment. UMC asked for additional time to return its comments on the document. As such, the Purchase and Development Contract can be considered at the EDA's second regular meeting on February 26, 2020. With the delayed consideration, beyond February 15, 2020, the EDA's $40,000 earnest money related to the purchase of the 7.39 -acre parcel will be non-recoverable from the seller (Monticello Industrial Park, Inc.) as there is agreement from UMC to reimburse those funds if the proposed expansion plans are cancelled in the future. The EDA may want to discuss this less than ideal situation at the meeting. Expecting that the EDA's consideration of the Draft Purchase and Development Contract would occur at the February 12, 2020 meeting, a staff report has been completed and attached to this report in the goal of transparency since the February 26, 2020 meeting is not televised (it will be a 7:00 a.m. meeting). EDA Agenda: 02/12/20 The Agenda Items related to the UMC expansion that are expected to be considered at that meeting include the following: • Consideration of Resolution #2020-01 Approving the Establishment of Tax Increment Financing District No. 1-41 and the TIF Plan for the District • Consideration of Resolution #2020-02 Approving the Purchase and Development Contract between UMC Real Estate and City of Monticello Economic Development Authority (EDA), the Land Sale by the EDA to UMC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract. • Consideration of Resolution #2020-03 Approving an Interfund Loan, authorizing expenditures of legally available EDA funds for costs related to TIF District No. 1-41 to be reimbursed through tax increments from TIF District No. 1-41 • Consideration of Resolution #2020-04 Approving an Interfund Loan, authorizing expenditures of up to the total balance of tax increments available from TIF District No. 1-6 to pay a portion of property acquisition costs in connection with TIF District No. 1-41 Both the Land Sale Public Hearing and Business Subsidy Public Hearing are required to be held prior to adopting a Resolution approving the TIF Plan for TIF District #1-41 and the Purchase and Development Contract. The City Council will also be required to hold Business Subsidy Public Hearing related to the MIF Grant and TIF land write down assistance. That is tentatively planned for the March 9, 2020 City Council meeting. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) and the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community Development Director have spent a considerable amount of time combined (estimate of 80 to 90 hours) preparing TIF Plan documents, various contracts and reports for review and consideration by the EDA and City Council. Even though UMC's proposal is complicated, and as such requires a higher level of staff time and review for the all documents and action steps to be drafted, reviewed and scheduled, the current staff involved is sufficient to complete the final review and approval steps. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of opening the Land Sale Public Hearing includes costs for the EDA legal counsel to draft the Public Hearing Notice as well as the minimal cost to publish the Notice. The Hearing steps it should be noted is just a small part of entire action list involved in the review and approval considerations for the UMC assistance package. UMC has deposited $20,000 into an escrow account with the City to cover consultant fees. If the expenses exceed this level, a request for additional funding will be presented to them at the appropriate time. B. ALTERNATIVE ACTIONS: 1. Motion to continue the Land Sale Public Hearing until the February 26, 2020 EDA meeting. 2. Motion to Close the Land Sale Public Hearing after opening it and accepting public comments. 2 EDA Agenda: 02/12/20 C. STAFF RECOMMENDATION: Staff recommends Alternative #1. UMC has asked for additional time to complete its review of the Draft Purchase and Development Contract. The goal is to schedule a continued Public Hearing session at the February 26, 2020 EDA meeting and then following that ask the EDA to consider approving the Purchase and Development Contract along with other related project decisions. D. SUPPORTING DATA: A. Combined Land Sale and Business Subsidy Public Hearing Notice B. Aerial Photo — 7.39 -acre parcel located on Chelsea Road C. Staff Rpt.- EDA Consideration of Purchase and Development Contract (2-26-20 mtg.) D. Staff Rpt. — EDA Consideration of TIF Plan for TIF District #1-41 (2-26-20 mtg.) AFFIDAVIT OF PUBLICATION STATE OF MINNESOIA )ss COUNTY OF WRIGHT Brandi Botts being duly sworn on an oath, states or affirms that heshe, is the Publishers Designated Agent of the newspaper(s) known as: Monticello Times with the known office of issue being located it) the county of: WRIGHT with additional circulation in the counties of. SHERBURNE and has full knowledge of the facts stated below, (A) The newspaper has compiled with all of the requirements constituting qualirka- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub- lished in said newspaper(s) once each week, for I successive week(s); the first insertion being on 01130/2020 and the last insertion being on 01/30/2020. MORTUAGE FORECLOSURE N0110ES Pursuant to Minmota Stat. X580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2), If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circulation is in the latter county. Subscribed and sworn to or affimed bet'orc me on 01130/2020 by Hmndi Hatts, Notary Pub ic DARLENE MARIE MACPHERSON N Notsfy Public M innelota CM40 EOM JMjIllity 31,2�a24 Rate Information: (1) Lowest classified rate paid by conm�ercial uscrs for comparable space: $18.50 per column inch Ad ID 1016702 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA NOTICE OF PUBLIC HEARING NOTICE IS HFREBY GIVEN that the Boafd of Commissioners of the City Of Mcmficelo Economic Devel- opment Authority (the "Authod') will hold a public !tearing on I"- ary 1:2, 202€1, tit approxinl0t6*615 PJA, at City Hall, W5 Wiallnut Sheet, Monticello. Mirinelsota, togaidiing two matters: 1. L40dQjdL The Authority will conduct a pubic hearing to con- ger the ptoposed sale of mrion hind described as Lot 2, Block 1, Monticello Commorm CerAer Sixth Addition, Wright County, Minne- sota Otte "Propertyl to UMC Real Estate. LLC !the-Rwpienr) Pur- suant to Knnesoka Statutes. Sec- tion 4139. T 05, At the hearing, the Authority will meet to determine it the pr000sod sale of the Property is advisable. If so. the Authority is Pxpected to convey the Prop , arty to IN. Recipient in furilhorance of the Authority's goats for its Central MontiDello Rmlevelopmord Project No. 1. A copy of nA documents re- lating to the proposed sale of the PrnpertV wiN be on file and available for nsr-4,c:!ion at City I fall available rN...ilar business hours. 2. Eh&[ness stJaJU the Au- Owdy will consialer a proposed busiriess si-nsidy to be granted to the Recipient under Mimeso- to StatulM Sections I 116J.993 through 1166.995. The proposed subsidy consists of a *10 -down of the Pm"rty's purciase price to facilitate the development by the Recipient of an expansion to its emsting mamifactLoing facility.. Irv- tormation about the proposed busi- nessau4sidy. Including a summary of the terms of the subsidy and a copy of the draft business sub- sidy agree"nt, are avilable for inspeciton at City Hall during reg- ular bus'ness. hours. Any resident of or owner of taxable property in no Cary My file a vmtten conplairvi with the Aulhority if the Authority tails 10 owply wit" i tete Business S.Os(ly Act. No action may to filed against the Autnofity for t"_ failure to cwnptv unless a wrhlen carnplaini is fled. All interested persors may ap- pear at the heating and present t. it ,news on 11)e matters to ne corsidered orally or prior to the mWing in wr*ng. Dated-. January 30� 2020 BY ORII)ER OF THE BOARD OF COMMISSIONERS OF THE CITY OF MONTICELLO ECONOMIC DE- VELOPMENT AUTHORITY W Jim Thares, Executive Director Published in the MontIcallo'l7imies January 30, 2020 1016702 I fJ (N,,Beacon Wright County, MN Overview Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy US Hwy City/Township Limits ❑ c ❑ t ❑� Parcels Parcel ID 155143001020 Alternate ID n/a Owner Address MONTICELLO INDUSTRIAL PARK INC Sec/Twp/Rng 13-121-025 Class 101 -AGRICULTURAL 4065CHELSEARDW Property Address Acreage 7.39 MONTICELLO, MN 55362 District 1101 CITY OF MONTICELLO 882 H Brief Tax Description Sect-13Twp-121 Range-025MONTI COMMERCE CENTER 6TH ADDN Lot -002 Block -0017.39 AC (Note: Not to be used on legal documents) Date created: 11/7/2019 Last Data Uploaded: 11/7/2019 4:02:24 AM Developed by(j Schneider GE OSPAT IAL EDA Agenda: 02/26/20 #. Consideration of Adouting Resolution #2020-02 Aunrovin2 Purchase and Develobment Contract between UMC Real Estate, LLC and City of Monticello Economic Development Authority (EDA), the Land Sale by the EDA to UMC Real Estate, LLC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider adopting Resolution #2020-02 approving a Purchase and Development Contract between UMC Real Estate, LLC and the EDA. The Purchase and Development Contract covers three key elements of the UMC development proposal. The first element is the conveyance of a 7.39 -acre parcel of land to UMC Real Estate, LLC for the proposed 52,000 square foot expansion. The second element outlines the "Construction of Minimum Improvements" (per the submitted and approved plans) and the timeline for completion of and occupancy of the new facility, and therein linking the development project to TIF District #1-41 and further detailing land costs and tax increment flow to the EDA to allow it to be reimbursed for incurred expenses. The third element comprises the Business Subsidy Agreement as required under the Business Subsidy Act. Under a plan of action outlined in a Letter of Intent (LOI) between the EDA and UMC, the EDA approved entering into a Purchase Agreement with Monticello Industrial Park, Inc. (Shawn Weinand) for a 7.39 -acre parcel, located on Chelsea Road, on November 13, 2019 for the sole purpose of conveying the land to UMC for its proposed expansion project. The development site is a logical choice as it is adjacent to UMC's existing 72,000 square foot production facility. Terms of the Contract reflect that the EDA is providing a $731,000 land write down and a funding advance of $300,000 secured by a deferred second real estate mortgage on the new development property. UMC is required to construct a new 52,000 square foot light manufacturing facility on the property and hire an additional 60 new FTE employees over the next three years. The estimated value of the new facility is approximately $5,200,000. The projected tax increment flow over the 9 -year life of the District should allow the EDA to be fully reimbursed for its land write down. A summary of Contract Terms is shown below: A. EDA to acquire 7.39 -acre parcel along Chelsea Road for $1,031, 000. B. EDA agrees to convey 7.39 -acre parcel to UMC Real Estate, LLC for $300,000. C. EDA provides funding advance to UMC Real Estate, LLC in the amount of $300,000. D. UMC Real Estate agrees to provide the EDA a deferred 2nd Mortgage on the development property in the amount of $300,000. E. EDA provides a TIF Land Write Down in the amount of $731,000 F. UMC Real Estate, LLC agrees to construct a 52,000 square foot light manufacturing facility on the development property G. UMC Real Estate to commence construction in late April 2020 and complete construction of new facility by December 31, 2020 H. UMC agrees to create 43 new FTE jobs with average wages in a range of $22.00 to $28.00 per hour EDA Agenda: 02/26/20 L UMC to utilize $300,000 forgivable MIF Loan to buy new equipment and place into service in new facility after building occupancy is allowed. J. UMC Real Estate, LLC agrees to repay the EDA its $300,000 funding advance on or before February 28, 2021 K. UMC to maintain 43 newly hired workers at the stated wages at the site for S years. L. UMC to cooperate with City Staff to complete annual job creation compliance reports. M. UMC agrees to reimburse the EDA $40,000 in earnest money if the proposed development project is cancelled or abandoned after execution of the Development Contract. N. Land Conveyance closing date is on or before April 15, 2020. UMC's development proposal is sizeable, involving new construction and significant equipment purchases. The cost estimates for all project components is approximately $10,831,000 +/-. Due to the project size and scope, use of available MN -DEED programs such as Minnesota Investment Fund (MIF) and Job Creation Fund (JCF) have been sought to further support the project. A Sources and Uses table for the expansion project is shown below: Sources Amount Bank $ 7,333,800 TIF - land write down 7.39 acres $ 731,000 EDA - Deferd 2nd R.E. Mortg. - land $ 300,000 MIF - Equipment $ 300,000 Owner Equity $ 2,166,200 Total $10,831,000 Uses Amount Land Acquisition $10,831,000 Site Improvements $ 500,000 New Construction $ 6,000,000 Machinery & Equip. $ 3,300,000 Total $10,831,000 The Business Subsidy Public Hearing and the Land Sale Public Hearing are required to be held prior to adopting Resolution #2020-02. Both hearings were opened at the February 12, 2020 EDA meeting and continued to the February 26, 2020 EDA meeting. The City Council will also be required to hold Business Subsidy Public Hearing related to the MIF Grant and TIF land write down assistance. That is tentatively scheduled for the March 9, 2020 City Council meeting. A basic project financing analysis shows that the TIF land write-down of $731,000 is approximately 6.75 percent of the entire project costs. The total upfront public assistance, MIF and TIF combined, amounts to 9.52 percent of the project costs. The Job Creation Fund (JCF) assistance in the total amount of $175,000 will be in the form of a trailing, annual pay - for -performance grant payable to the UMC over the next 5 years. The proposed closing date for the 7.39 -acre land purchase from Monticello Industrial Park, Inc. and the simultaneous conveyance to UMC is expected to occur on or before April 15, 2020. UMC's target construction start date is April 25, 2020. The construction timeline will run from late April until December 20, 2020. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) and the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community 2 EDA Agenda: 02/26/20 Development Director have spent a considerable amount of time combined (estimate of 80 to 90 hours) preparing TIF Plan documents, various contracts and reports for review and consideration by the EDA and City Council. Even though UMC's proposal is complicated, and as such requires a higher level of staff time and review for the all documents and action steps to be drafted, reviewed and scheduled, the current staff involved is sufficient to complete the final review and approval steps. A2. BUDGET IMPACT: The largest budgetary impact related to EDA consideration of Resolution #2020-02 approving the Purchase and Development Contract between UMC and the EDA involves considerable legal and financial advisor expenses. UMC has deposited $20,000 into an escrow account with the City to cover consultant fees. If the expenses exceed this level, a request for additional funding will be presented to them at the appropriate time. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2020-02 approving a Purchase and Development Contract between UMC Real Estate and the EDA, the Land Sale by the EDA to UMC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract. 2. Motion to deny adoption of Resolution #2020-02 approving a Purchase and Development Contract between UMC Real Estate and the EDA, the Land Sale by the EDA to UMC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract. 3. Motion to table consideration of Resolution #2020-02 further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. UMC is proposing a sizeable physical expansion on a site adjacent to its existing facility located at 500 Chelsea Road. The total investment for all project components is estimated to be $10,831,000 for the entire project. The Purchase and Development Contract reflects the negotiations between UMC and EDA staff as generally outlined in a non-binding Letter of Intent (LOI) entered into between the parties on August 21, 2019. In exchange for a TIF land write down in the amount of $731,000, UMC will construct a new 52,000 square foot facility and hire 60 additional FTE employees over the next three years. UMC's expansion project will further solidify its presence in the City of Monticello over the long term and strengthen the local economy. It is currently the fifth largest employer in the City with about 205 FTE employees. With the 60 new FTE jobs payroll impacts are projected to increase by nearly $4,000,000 annually. The estimated property tax revenue (under current statutes) will be in excess of $105,000 per year. c D. SUPPORTING DATA: EDA Agenda: 02/26/20 A. Resolution #2020-02 B. Purchase and Development Contract C. Combined Business Subsidy and Land Sale Public Hearing Notice D. UMC Financial Assistance Action Item Timeline 4 EDA Agenda: 02/26/20 #. PULBIC HEARING - Consideration of Adopting Resolution #2020-01 Approving Establishment of Economic Development TIF District #141 and the TIF Plan for the District (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to consider adopting Resolution #2020-01 approving the establishment of a new Tax Increment Financing (TIF) District (#1-41) along with the TIF Plan for the District. Economic Development TIF District #1-41 is being created to provide assistance to UMC, Inc. in the form of a land write down to support its proposed 52,000 square foot expansion project. The EDA and UMC entered into a Letter of Intent (LOI) on August 21, 2019 outlining a proposed plan of action wherein the EDA is to acquire a 7.39 - acre parcel of land for $1,031,000 and then convey it to UMC for $300,000. The company indicates that it will create 60 new FTE jobs with wages ranging from $22.00 to $28.00 per hour, over the next three years, as part of the project. UMC estimates that the total cost of the expansion project is approximately $10,831,000. TIF is a typical assistance tool used in both economic and redevelopment projects. UMC's proposal, a light manufacturing development, qualifies as a maximum 9 -year Economic Development TIF project. UMC has previously indicated that a key factor in moving forward with the development hinges on the availability of TIF assistance for the land component and that they would not be able to proceed with the project with -out a TIF land value write down. Per the TIF Plan, Tax Increment proceeds from UMC's new facilities will be used to reimburse the EDA for its land purchase costs. The land -write down amount of $731,000 is expected to be recovered by the EDA over the 9 -year life of the new TIF District (refer to Exhibit II, page 11). Exhibit II also shows the increment flow each year and summarizes the total funding. The average annual tax increment is expected be approximately $101,000. The tax increment illustrations, prepared by Northland Securities, indicate a total increment flow of $905,000 based on the estimates of the project's real property value of $5,200,000. Staff plan to provide the building plans to the Wright County Assessor with a goal of getting a more accurate estimate of the finished project valuation. Certification of TIF District #1-41 with the County Auditor would occur in June 2020. As the project financing is structured, the TIF land write-down is an upfront benefit for UMC. The EDA will acquire the 7.39 -acre parcel and convey it to UMC, with the TIF District pay - go serving to reimburse the EDA for its land acquisition costs. In addition, a deferred second mortgage will be carried by (payable to) the EDA, allowing UMC to forgo land payments in the amount of $300,000 until early 2021, after it completes its new building and hires an initial group of employees. The TIF Plan shows that the EDA will receive tax increment payments annually over the next 9 years or until the principal amount of $731,000, along with accrued interest, is received. In combination with the second mortgage, the TIF increment will reimburse the EDA in full for its land purchase costs. 1 EDA Agenda: 02/26/20 UMC's development expansion proposal is sizeable, involving new facility construction costs and purchase of a significant amount of new production equipment. With this in mind, the EDA sought to utilize available MN -DEED programs, such as Minnesota Investment Fund (MIF) and the Job Creation Fund (JCF) to also help support the project. The financing currently shows MIF sourcing $300,000 into the project in the form of a forgivable loan. A Sources and Uses table for the expansion project is show below: Sources Amount Bank $ 7,333,800 TIF - land write down 7.39 acres $ 731,000 EDA - Deferd 2nd R.E. Mortg. - land $ 300,000 MIF - Equipment $ 300,000 Owner Equity $ 2,166,200 Total $10,831,000 Uses Amount Land Acquisition $ 1,031,000 Site Improvements $ 500,000 New Construction $ 6,000,000 Machinery & Equip. $ 3,300,000 Total $10,831,000 A basic project financing analysis shows that the TIF land write-down of $731,000 is approximately 6.75 percent of the entire project costs. The total upfront public assistance, MIF and TIF combined, amounts to 9.52 percent of the project costs. The Job Creation Fund (JCF) assistance in the total amount of $175,000 will be in the form of a trailing, annual pay - for -performance grant payable to the UMC over the next 5 years. The City Council held the required TIF Public Hearing on November 25, 2019 prior to adopting Resolution #2019-70 creating TIF District #141 and approving the TIF Plan. The EDA is also required to approve the TIF Plan through a resolution. Resolution #2020-01 is attached to this report. UMC development plans were approved by the Planning Commission on February 4, 2020. The tentative project construction start date is April 25, 2020. Construction of the new facility is expected to last until mid-December 2020 with building occupancy in late December 2020 and early January 2021. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) and the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community Development Director have spent a considerable amount of time combined (estimate of 65 to 75 hours) preparing initial TIF Plan documents and reports for review by the EDA and City Council. Even though UMC's proposal is complicated, and as such requires a higher level of staff time and review for the TIF Plan to be accurately assembled, the current staff involved is sufficient to complete the final review and approval steps. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of Resolution #2020-01 establishing the TIF District and approving the TIF Plan for the District is primarily in legal and financial advisor expenses. UMC has deposited $20,000 into an escrow account with the City to cover the consultant fees. 2 EDA Agenda: 02/26/20 B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2020-01 establishing TIF District #1-41 and approving the TIF Plan for the District (supporting UMC's 52,000 square foot expansion proposal). 2. Motion to deny adoption of Resolution #2020-01 establishing TIF District #41 and approving the TIF Plan for the District 3. Motion to table consideration of Resolution #2020-01 establishing TIF District #141 and approving the TIF Plan for the District C. STAFF RECOMMENDATION: Staff recommends Alternative #1. UMC is proposing a sizeable physical expansion on a site adjacent to its existing facility located at 500 Chelsea Road. The total investment is estimated to be $10,831,000 for the entire project. The new TIF District is a critical assistance component that will allow the EDA to be reimbursed for its land purchase costs and associated land -write down assistance for UMC. Tax increment generated from UMC's new building is projected to be sufficient to reimburse the EDA for the $731,000 in land write down principal along with accrued interest over a 9 -year period. Other factors supporting recommendation of support for creation of the TIF District are as follows: 1) UMC is currently the fifth largest employer in the City, 2) their proposed expansion meets the Comprehensive Plan goal of increasing quality jobs that pay above average wages, 3) the new 52,000 square foot building will increase the local tax base by approximately $101,000 per year, and, 4) the development project is expected to further strengthen the greater area economy through a recurring annual impact of nearly $4,000,000 per year due to increased payroll impacts. D. SUPPORTING DATA: A. Resolution #2020-01 B. Summary Memo from Northland Securities, Inc. C. TIF District #141 Plan D. TIF Application E. UMC Financial Assistance Action Item Timeline EDA Agenda: 02/12/20 7. PUBLIC HEARING - Consideration of Opening and Holding a Business Subsidy Public Hearing in relation to the EDA's Proposed TIF Land Write Down in the amount of $731,000 to UMC for an expansion proiect (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to open and hold a Public Hearing regarding a proposed business subsidy to UMC Real Estate, LLC under Minnesota Statutes, Section 116J.993 through 116J.995. The proposed subsidy consists of TIF land value write down of the Property's purchase price in the amount of $731,000 to support UMC's expansion project as well as an advance of EDA funds in the amount of $300,000 secured by a deferred second mortgage against the development property. The State of Minnesota is also expected to provide a Minnesota Investment Fund (MIF) assistance award in the amount of $300,000 and a Job Creation Fund (JCF) Grant in the amount of $175,000 to further support the project. In pursuing the expansion proposal, UMC had asked that the EDA provide assistance in the form of a land conveyance and write down in exchange for developing a new 52,000 square foot facility and creating 43 new FTE jobs over the next 2 years. UMC also plans to add an additional 17 FTE jobs at the new facility from 1-1-23 through 12-31-23. UMC identified a vacant, development ready site, adjacent to its existing 72,000 square facility as the best location for the proposed expansion project. A Draft Purchase and Development Contract, which includes a Business Subsidy Agreement, was provided to UMC for review and comment. UMC asked for additional time to return its comments on the document back to staff for inclusion in the February 12, 2020 EDA Meeting Agenda. For practical purposes that is fine as the Purchase and Development Contract can be considered at the EDA's second regular meeting on February 26, 2020. The key significance with the delayed consideration, beyond February 15, 2020, is that the EDA's $40,000 earnest money related to the purchase of the 7.39 -acre site will be non-recoverable from the seller (Monticello Industrial Park, Inc.) and the EDA will not have an ironclad commitment from UMC to reimburse those funds if the proposed expansion plans are cancelled in the future. The EDA may want to discuss this less than ideal situation at the meeting. Expecting that the EDA's consideration of the Draft Purchase and Development Contract would occur at the February 12, 2020 meeting, the staff report has been completed and it is attached to this report in the goal of transparency since the February 26, 2020 meeting is not televised (it will be a 7:00 a.m. meeting). Both the Land Sale Public Hearing and Business Subsidy Public Hearing are required to be held prior to adopting a Resolution approving the Business Subsidy Agreement. The City Council will also be required to hold Business Subsidy Public Hearing related to the MIF Grant and TIF land write down assistance. That is tentatively planned for the March 9, 2020 City Council meeting. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) and the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community 1 EDA Agenda: 02/12/20 Development Director have spent a considerable amount of time combined (estimate of 80 to 90 hours) preparing TIF Plan documents, various contracts and reports for review and consideration by the EDA and City Council. Even though UMC's proposal is complicated, and as such requires a higher level of staff time and review for the all documents and action steps to be drafted, reviewed and scheduled, the current staff involved is sufficient to complete the final review and approval steps. A2. BUDGET IMPACT: The budgetary impact related to EDA consideration of opening the Land Sale Public Hearing includes costs for the EDA legal counsel to draft the Public Hearing Notice as well as the minimal cost to publish the Notice. The Hearing steps it should be noted is just a small part of entire action list involved in the review and approval considerations for the UMC assistance package. UMC has deposited $20,000 into an escrow account with the City to cover consultant fees. If the expenses exceed this level, a request for additional funding will be presented to them at the appropriate time. B. ALTERNATIVE ACTIONS: 1. Motion to continue the Business Subsidy Public Hearing until the February 26, 2020 EDA meeting. 2. Motion to Close the Business Subsidy Public Hearing after opening it and accepting public comments. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. UMC is was not able to complete its review of the Draft Purchase and Development Contract which also includes the Business Subsidy Agreement and has asked for additional time. The goal is to schedule a continued Public Hearing session at the February 26, 2020 EDA meeting and then following that ask the EDA to consider the Purchase and Development Contract. D. SUPPORTING DATA: A. Combined Land Sale and Business Subsidy Public Hearing Notice B. Staff Rpt. EDA Consideration of Purchase and Development Contract (2-26-20 mtg.) 2 AFFIDAVIT OF PUBLICATION STATE OF MINNESOIA )ss COUNTY OF WRIGHT Brandi Botts being duly sworn on an oath, states or affirms that heshe, is the Publishers Designated Agent of the newspaper(s) known as: Monticello Times with the known office of issue being located it) the county of: WRIGHT with additional circulation in the counties of. SHERBURNE and has full knowledge of the facts stated below, (A) The newspaper has compiled with all of the requirements constituting qualirka- tion as a qualified newspaper as provided by Minn. Stat. §331A.02. (B) This Public Notice was printed and pub- lished in said newspaper(s) once each week, for I successive week(s); the first insertion being on 01130/2020 and the last insertion being on 01/30/2020. MORTUAGE FORECLOSURE N0110ES Pursuant to Minmota Stat. X580.033 relating to the publication of mortgage foreclosure notices: The newspaper complies with the conditions described in §580.033, subd. 1, clause (1) or (2), If the newspaper's known office of issue is located in a county adjoining the county where the mortgaged premises or some part of the mortgaged premises described in the notice are located, a substantial portion of the newspaper's circulation is in the latter county. Subscribed and sworn to or affimed bet'orc me on 01130/2020 by Hmndi Hatts, Notary Pub ic DARLENE MARIE MACPHERSON N Notsfy Public M innelota CM40 EOM JMjIllity 31,2�a24 Rate Information: (1) Lowest classified rate paid by conm�ercial uscrs for comparable space: $18.50 per column inch Ad ID 1016702 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA NOTICE OF PUBLIC HEARING NOTICE IS HFREBY GIVEN that the Boafd of Commissioners of the City Of Mcmficelo Economic Devel- opment Authority (the "Authod') will hold a public !tearing on I"- ary 1:2, 202€1, tit approxinl0t6*615 PJA, at City Hall, W5 Wiallnut Sheet, Monticello. Mirinelsota, togaidiing two matters: 1. L40dQjdL The Authority will conduct a pubic hearing to con- ger the ptoposed sale of mrion hind described as Lot 2, Block 1, Monticello Commorm CerAer Sixth Addition, Wright County, Minne- sota Otte "Propertyl to UMC Real Estate. LLC !the-Rwpienr) Pur- suant to Knnesoka Statutes. Sec- tion 4139. T 05, At the hearing, the Authority will meet to determine it the pr000sod sale of the Property is advisable. If so. the Authority is Pxpected to convey the Prop , arty to IN. Recipient in furilhorance of the Authority's goats for its Central MontiDello Rmlevelopmord Project No. 1. A copy of nA documents re- lating to the proposed sale of the PrnpertV wiN be on file and available for nsr-4,c:!ion at City I fall available rN...ilar business hours. 2. Eh&[ness stJaJU the Au- Owdy will consialer a proposed busiriess si-nsidy to be granted to the Recipient under Mimeso- to StatulM Sections I 116J.993 through 1166.995. The proposed subsidy consists of a *10 -down of the Pm"rty's purciase price to facilitate the development by the Recipient of an expansion to its emsting mamifactLoing facility.. Irv- tormation about the proposed busi- nessau4sidy. Including a summary of the terms of the subsidy and a copy of the draft business sub- sidy agree"nt, are avilable for inspeciton at City Hall during reg- ular bus'ness. hours. Any resident of or owner of taxable property in no Cary My file a vmtten conplairvi with the Aulhority if the Authority tails 10 owply wit" i tete Business S.Os(ly Act. No action may to filed against the Autnofity for t"_ failure to cwnptv unless a wrhlen carnplaini is fled. All interested persors may ap- pear at the heating and present t. it ,news on 11)e matters to ne corsidered orally or prior to the mWing in wr*ng. Dated-. January 30� 2020 BY ORII)ER OF THE BOARD OF COMMISSIONERS OF THE CITY OF MONTICELLO ECONOMIC DE- VELOPMENT AUTHORITY W Jim Thares, Executive Director Published in the MontIcallo'l7imies January 30, 2020 1016702 EDA Agenda: 02/26/20 #. Consideration of Adouting Resolution #2020-02 Aunrovin2 Purchase and Develobment Contract between UMC Real Estate, LLC and City of Monticello Economic Development Authority (EDA), the Land Sale by the EDA to UMC Real Estate, LLC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract (JT) A. REFERENCE AND BACKGROUND: This item is to ask the EDA to consider adopting Resolution #2020-02 approving a Purchase and Development Contract between UMC Real Estate, LLC and the EDA. The Purchase and Development Contract covers three key elements of the UMC development proposal. The first element is the conveyance of a 7.39 -acre parcel of land to UMC Real Estate, LLC for the proposed 52,000 square foot expansion. The second element outlines the "Construction of Minimum Improvements" (per the submitted and approved plans) and the timeline for completion of and occupancy of the new facility, and therein linking the development project to TIF District #1-41 and further detailing land costs and tax increment flow to the EDA to allow it to be reimbursed for incurred expenses. The third element comprises the Business Subsidy Agreement as required under the Business Subsidy Act. Under a plan of action outlined in a Letter of Intent (LOI) between the EDA and UMC, the EDA approved entering into a Purchase Agreement with Monticello Industrial Park, Inc. (Shawn Weinand) for a 7.39 -acre parcel, located on Chelsea Road, on November 13, 2019 for the sole purpose of conveying the land to UMC for its proposed expansion project. The development site is a logical choice as it is adjacent to UMC's existing 72,000 square foot production facility. Terms of the Contract reflect that the EDA is providing a $731,000 land write down and a funding advance of $300,000 secured by a deferred second real estate mortgage on the new development property. UMC is required to construct a new 52,000 square foot light manufacturing facility on the property and hire an additional 60 new FTE employees over the next three years. The estimated value of the new facility is approximately $5,200,000. The projected tax increment flow over the 9 -year life of the District should allow the EDA to be fully reimbursed for its land write down. A summary of Contract Terms is shown below: A. EDA to acquire 7.39 -acre parcel along Chelsea Road for $1,031, 000. B. EDA agrees to convey 7.39 -acre parcel to UMC Real Estate, LLC for $300,000. C. EDA provides funding advance to UMC Real Estate, LLC in the amount of $300,000. D. UMC Real Estate agrees to provide the EDA a deferred 2nd Mortgage on the development property in the amount of $300,000. E. EDA provides a TIF Land Write Down in the amount of $731,000 F. UMC Real Estate, LLC agrees to construct a 52,000 square foot light manufacturing facility on the development property G. UMC Real Estate to commence construction in late April 2020 and complete construction of new facility by December 31, 2020 H. UMC agrees to create 43 new FTE jobs with average wages in a range of $22.00 to $28.00 per hour EDA Agenda: 02/26/20 L UMC to utilize $300,000 forgivable MIF Loan to buy new equipment and place into service in new facility after building occupancy is allowed. J. UMC Real Estate, LLC agrees to repay the EDA its $300,000 funding advance on or before February 28, 2021 K. UMC to maintain 43 newly hired workers at the stated wages at the site for S years. L. UMC to cooperate with City Staff to complete annual job creation compliance reports. M. UMC agrees to reimburse the EDA $40,000 in earnest money if the proposed development project is cancelled or abandoned after execution of the Development Contract. N. Land Conveyance closing date is on or before April 15, 2020. UMC's development proposal is sizeable, involving new construction and significant equipment purchases. The cost estimates for all project components is approximately $10,831,000 +/-. Due to the project size and scope, use of available MN -DEED programs such as Minnesota Investment Fund (MIF) and Job Creation Fund (JCF) have been sought to further support the project. A Sources and Uses table for the expansion project is shown below: Sources Amount Bank $ 7,333,800 TIF - land write down 7.39 acres $ 731,000 EDA - Deferd 2nd R.E. Mortg. - land $ 300,000 MIF - Equipment $ 300,000 Owner Equity $ 2,166,200 Total $10,831,000 Uses Amount Land Acquisition $10,831,000 Site Improvements $ 500,000 New Construction $ 6,000,000 Machinery & Equip. $ 3,300,000 Total $10,831,000 The Business Subsidy Public Hearing and the Land Sale Public Hearing are required to be held prior to adopting Resolution #2020-02. Both hearings were opened at the February 12, 2020 EDA meeting and continued to the February 26, 2020 EDA meeting. The City Council will also be required to hold Business Subsidy Public Hearing related to the MIF Grant and TIF land write down assistance. That is tentatively scheduled for the March 9, 2020 City Council meeting. A basic project financing analysis shows that the TIF land write-down of $731,000 is approximately 6.75 percent of the entire project costs. The total upfront public assistance, MIF and TIF combined, amounts to 9.52 percent of the project costs. The Job Creation Fund (JCF) assistance in the total amount of $175,000 will be in the form of a trailing, annual pay - for -performance grant payable to the UMC over the next 5 years. The proposed closing date for the 7.39 -acre land purchase from Monticello Industrial Park, Inc. and the simultaneous conveyance to UMC is expected to occur on or before April 15, 2020. UMC's target construction start date is April 25, 2020. The construction timeline will run from late April until December 20, 2020. Al. STAFF IMPACT: The EDA attorney (Kennedy and Graven) and the Financial Advisor (Northland Securities) as well as the Economic Development Manager and the Community 2 EDA Agenda: 02/26/20 Development Director have spent a considerable amount of time combined (estimate of 80 to 90 hours) preparing TIF Plan documents, various contracts and reports for review and consideration by the EDA and City Council. Even though UMC's proposal is complicated, and as such requires a higher level of staff time and review for the all documents and action steps to be drafted, reviewed and scheduled, the current staff involved is sufficient to complete the final review and approval steps. A2. BUDGET IMPACT: The largest budgetary impact related to EDA consideration of Resolution #2020-02 approving the Purchase and Development Contract between UMC and the EDA involves considerable legal and financial advisor expenses. UMC has deposited $20,000 into an escrow account with the City to cover consultant fees. If the expenses exceed this level, a request for additional funding will be presented to them at the appropriate time. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2020-02 approving a Purchase and Development Contract between UMC Real Estate and the EDA, the Land Sale by the EDA to UMC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract. 2. Motion to deny adoption of Resolution #2020-02 approving a Purchase and Development Contract between UMC Real Estate and the EDA, the Land Sale by the EDA to UMC described therein, and a Business Subsidy Agreement contained within the Purchase and Development Contract. 3. Motion to table consideration of Resolution #2020-02 further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. UMC is proposing a sizeable physical expansion on a site adjacent to its existing facility located at 500 Chelsea Road. The total investment for all project components is estimated to be $10,831,000 for the entire project. The Purchase and Development Contract reflects the negotiations between UMC and EDA staff as generally outlined in a non-binding Letter of Intent (LOI) entered into between the parties on August 21, 2019. In exchange for a TIF land write down in the amount of $731,000, UMC will construct a new 52,000 square foot facility and hire 60 additional FTE employees over the next three years. UMC's expansion project will further solidify its presence in the City of Monticello over the long term and strengthen the local economy. It is currently the fifth largest employer in the City with about 205 FTE employees. With the 60 new FTE jobs payroll impacts are projected to increase by nearly $4,000,000 annually. The estimated property tax revenue (under current statutes) will be in excess of $105,000 per year. c D. SUPPORTING DATA: EDA Agenda: 02/26/20 A. Resolution #2020-02 B. Purchase and Development Contract C. Combined Business Subsidy and Land Sale Public Hearing Notice D. UMC Financial Assistance Action Item Timeline 4 EDA: 02/12/20 8. Consideration of Update of Co -Work Space Concept -Effort — Crystal Nutt, Crystal Nutt Consulting (JT) A. REFERENCE AND BACKGROUND: This item is to provide an update to the EDA about a new office concept that has sparked the attention of several local residents and/or business owners. The concept involves the fairly new tech related idea of communal work areas with access to various accessory services such as coffee or a pastry shop. The co -work format is very prevalent in major metro areas throughout the nation and becoming more common in small metro cities and even regional community centers and fringe suburban communities like Monticello. The key asset that makes this concept attractive in Monticello is the presence of a municipally owned internet service with exceptionally fast synchronous upload/download speeds. Staff has had been involved in the continuing concept discussion meetings and also recently met with a co -work site operator in St. Cloud. The goal of the group now is to further explore the viability of the concept in Monticello with the help of the operators of the St. Cloud site. Typical community style supported co -work spaces do involve some level of community support and can feature educational training aspects as well (think workforce development for tech industry). They are also potential incubator spaces for entrepreneurial start-up ventures. Website links of four successful community style co -work spaces are shown below. Willmar: http://workup.cc/ Bemidji: http://www.launchpadbemidji.com/en Mankato: https://www.mogwaicollaborative.com/ Rapid City, SD: hqp://www.garagerapidciiy.com/#overview Ms. Nutt will be at the EDA meeting to provide an update on the efforts and next steps in further exploring the viability of a Co -Work site in Monticello. Al. STAFF IMPACT: There is a modest level of staff time involved in this item at this time. Since staff's visit to a successful co -work site in St. Cloud, (the Cooper Collective), the process may take on more of a business investment approach due to the potential desired involvement by operators of the Cooper Collective, St. Cloud. A2. BUDGET IMPACT: Other than typical staff payroll expenses, there is no budget impact due to exploring the co -work format and various concepts and the potential to establish and/or support such a venture in Monticello. B. ALTERNATIVE ACTIONS: 1. None — Informational only EDA: 02/12/20 C. STAFF RECOMMENDATION: This presentation is informational only. It may lead to future activities and efforts which are not clearly understood at this time. Staff will stay involved and monitor the progress and/or support the efforts while watching budget impacts. D. SUPPORTING DATA: A. Article — Finance and Commerce: Twin Cities Co -Working Scene B. Article — Twin Cities Business: Twin Cities Co -Working Spaces Grows 18 Percent W 2/6/2020 The Twin Cities' Coworking Scene – Finance & Commerce RMWCEACOMMERCE Carlsbad, California-based CommonGrounds opened a nearly 30,000 square foot space this summer at 801 Marquette Ave. in downtown Minneapolis. (Submitted photo: Costar) The Twin Cities' Coworking Scene s By: Brian Martucci © September 13, 2019 3:38 pm Correction: A previous version of this story misidentified Bethany Iverson, co-founder and COO of The Coven, a coworking company. According to Enterprise Rising founder and tribal leader Casey Allen's frequently updated map of Minnesota coworking spaces, Minneapolis alone has nearly two dozen coworking locations. The greater Twin Cities, St. Paul included, has nearly 20 more. A handful dot greater Minnesota, mostly in regional hubs like Rochester and Bemidji. Minnesota is no outlier. As of early 2019, coworking — also known as flexible office or flex space — accounted for at least 25 million square feet of commercial space in the United States' 30 largest office markets, according to a CBRE report from a research team led by CBRE global chief economist and head of Americas research Richard Barkham. Driven by rapidly growing national and international brands like WeWork and IWG, coworking is an "increasingly relevant factor in asset valuation," the report said. Compared with non-coworking transactions, CBRE found lower average capitalization rates in "flex transactions," suggesting commercial property owners presume flex space is less risky than traditional office — though properties with flex space present do not necessarily perform better than properties without, and properties dominated by coworking may actually present more risk than properties where coworking accounts for a smaller share of total square footage, due to coworking's typically shorter lease periods. Still, coworking is here to stay, and the Twin Cities' scene has something for everyone — from Fortune 500s looking to add creative or project -based teams without annexing new long-term space, to startups looking to staff up after successful raises, to independent professionals and creatives seeking social alternatives to the trusty home office. https://finance-commerce. com/2019/09/the-twin-cities-coworking-scene/?utm_term=The Twin Cities%5Cu2019 Coworking Scene&utm_campaign=Mo... 1/4 2/6/2020 Coworking at enterprise scale The Twin Cities' Coworking Scene – Finance & Commerce In every major U.S. coworking market, the elephant in the room is New York -based WeWork, which operates nearly 600 workspaces worldwide. WeWork operates three Minneapolis locations: on three floors of the Capella Tower, in the central business district; at the Nordic, in the North Loop; and at MoZaic, in Uptown. For solo professionals content with catch -as -catch -can space, Capella Tower's $200 -per -month Hot Desk deal is the brand's best value in town. At less than $500 per month, MoZaic has the best deal on private offices. With plenty of dedicated desks and suites, WeWork is ideal for multi -person teams and firms that value their privacy. So is New York -based Industrious, another national player with Minneapolis locations in the North Loop's T3 Building (home to a secretive Amazon IT team) and downtown's RBC Plaza. With space for 100 -person teams at both locations, Industrious works well for suburban enterprises looking to relocate entire creative or tech teams to amenity -rich urban neighborhoods; the T3 Building's location near Target Field commands a significant premium over RBC Plaza's 9 -to -5 nabe. The Twin Cities' latest enterprise -grade coworking entrant might be the most disruptive to date. Carlsbad, California-based CommonGrounds opened a nearly 30,000 square foot space this summer at 801 Marquette Ave., two years after a head -to -toe renovation that created what CBRE touted as "the first high-quality 'creative office building' of its type" in downtown Minneapolis. CommonGrounds' differentiator is its workspaces' modularity. Virtually every piece of its built environments is mobile, including walls, allowing enterprise tenants to quickly and cheaply scale up and down as needs dictate. At another CommonGrounds location, a larger occupant safely removed more than 20 walls in 14 business days at a total cost of about $40,000, said CEO Jacob Bates. For CommonGrounds tenants, "time is everything," said Bates. "The built environment has to be hackable, flexible." One thing CommonGrounds isn't: a top choice for solo professionals. Its bread and butter is small to midsize teams within enterprise organizations. Coupled with Bates' extensive prior commercial real estate experience, CommonGrounds' pool of deep -pocketed clients and prospects endears it to funders. Following a $100 million Series A raise, the brand has grown from one location to 18 in about a year, with 10 more openings on the way into 2020. Safe, inclusive, productive The Coven is another ascendant coworking brand with big ambitions and an innovative business model, but that's about where the similarities to CommonGrounds end. The Coven is a safe space for professionals who've historically been marginalized for reasons of identity — in the brand's own words, "a dynamic, diverse community of women, non -binary, and trans folks who inspire one another to lead more empowered lives." All four Coven founders came up through the advertising industry, where they worked (together, at times) to advance gender and racial equity. "There are lots of wonderful things about the ad industry, but we were frustrated with pace of change" said Bethany Iverson, The Coven's COO. The Coven's 4,800 -square -foot Minneapolis flagship location is soon to be supplanted by a 9,500 -square -foot space in St. Paul's Blair Arcade building, set to open in December. The Blair Arcade location will have seven private offices — the Minneapolis location has none — and an all -gender space where members can meet male clients and business partners, said Iverson. The Coven mainly caters to solo clients and early-stage enterprises. According to Iverson, about 30% of its members identify as entrepreneurs, and "a huge percentage" are side hustlers — working steady 9 -to -5 jobs when they're not at The Coven. The balance works in the nonprofit sector or activism. For every five memberships The Coven sells, it gives away one, with preference for members of historically marginalized groups; they've given away well over 100 to date, said Iverson. Giving away memberships "helps us ensure that there's socioeconomic diversity within our walls and make sure our space isn't just full of people who can afford access to a private club," she said. https://finance-commerce. com/2019/09/the-twin-cities-coworking-scene/?utm_term=The Twin Cities%5Cu2019 Coworking Scene&utm_campaign=Mo... 2/4 2/6/2020 The Twin Cities' Coworking Scene – Finance & Commerce That private club is growing. After St. Paul, Iverson is aiming for a late -2020 opening for The Coven's first non - Minnesota location, in Nashville. With $1.2 million in seed funding and a "tight -knit group of advisers" with deep real estate and finance expertise, The Coven plans to open up to 20 locations in the next five years, largely in "underdog cities" with vibrant creative economies and high shares of women and non -binary entrepreneurs. Novel Coworking members have access to more than 2.5 million square feet of workspace in 33 locations including two and growing in Minneapolis; pictured is the work space in the Lasalle Building on South Ninth St. (Submitted photo courtesy of Novel) A novel model? Chicago -based Novel caters to a broad mix of tenants, from solo professionals in spacious shared bullpens to midsize teams in 30- to 40 -person suites. With about 2.5 million square feet of space at more than 30 outposts around the U.S., Novel is a major player — if not as well-known as WeWork or IWG. And Novel appears to be doing something right: Its TriTech Center location, a stone's throw from Government Center station in downtown Minneapolis, recently won "best coworking space in Minneapolis" in the Coworker Members' Choice Awards, a survey based on peer feedback. With shared desk rates as much as 50% lower than other downtown Minneapolis coworking hubs, the buzz is understandable. Novel's real differentiator, though, is its business model. It's rare among rapidly growing coworking brands for actually owning its real estate. Novel owns both TriTech Center and the LaSalle Building, which houses its other Minneapolis location. Generally, Novel's buildings contain a mix of commercial uses, not just flexspace. TriTech Center has several "legacy tenants," including a data center, said Brittany Bartelt, Novel's on-site sales manager. That makes the brand something of a hybrid — merging the stability of traditional commercial real estate ownership with the upside of coworking exposure. We can't have everything A casual observer might interpret the Twin Cities' ongoing proliferation of coworking to mean the metro is some sort of flexible workspace mecca. That would be a mistake. Although it's doing well to make up for lost time, Minneapolis -St. Paul's coworking variety actually lags some other major metros. To join IWG's No18, a "cosmopolitan members' club for business," you'll need to relocate to Chicago or Atlanta. (Spaces, a more democratic IWG offering, operates one North Loop location.) CANOPY remains, for now, confined to San Francisco. Invite -only NeueHouse's distinctly un -Minnesotan model works better in New York and Los Angeles, where its target audience of "prominent creatives" clusters. That's not to say the Twin Cities isn't a regional hub for coworking innovation, thanks to homegrown concepts like Fueled Collective and The Coven, whose ambitious expansion plans bode well for the Twin Cities' reputation as a place where work gets done differently. https://finance-commerce. com/2019/09/the-twin-cities-coworking-scene/?utm_term=The Twin Cities%5Cu2019 Coworking Scene&utm_campaign=Mo... 3/4 2/6/2020 The Twin Cities' Coworking Scene — Finance & Commerce True to the Twin Cities' low-key reputation, some of the most successful local coworking products are more about maintaining the trappings of professionalism close to home than breaking the mold. Twin Cities North Chamber of Commerce president and Reserve member John Connelly likes the "beehive" nature of his Roseville home base — he regularly bumps into clients around the office. And he enjoys the inherent synergies of the multi -location model. During a particularly snowy stretch last winter, he worked out of The Reserve's Edina location, closer to his southwest metro home. Like this article? Gain access to all of our great content with a month-to-month subscription. Start your subscription here. Copyright © 2020 Finance & Commerce I Suite 900, Campbell Mithun Tower, 222 South Ninth Street, Minneapolis, MN 55402 1 (612) 333-4244 https://finance-commerce. com/2019/09/the-twin-cities-coworking-scene/?utm_term=The Twin Cities%5Cu2019 Coworking Scene&utm_campaign=Mo... 4/4 2/6/2020 Twin Cities Co -working Space Grows 18 Percent - Twin Cities Business HOME (n / NEWS (/NEWS) / TWIN CITIES CO -WORKING SPACE GROWS 18 PERCENT Ne'T"W&L ESTATE (HTTP://TCBMAG.COM/REAL_ESTATE) Twin Cities Ca -working Space brows 18 Percent CBRE Group sees room to grow for flexible office space market. tcbmag.com/news/articies/2019/september/twin-cities-co-working-space-grows-18-percent?utm_source=SilverpopMailing&utm_medium=email&utm_c... 1/6 2/6/2020 Twin Cities Co -working Space Grows 18 Percent - Twin Cities Business IIS .,w x w'tr CommonGrounds opened new co -working space in Minneapolis earlier this summer. (Photo courtesy of CommonGrounds) SEPTEMBER 19, 2019 BURL GILYARD (/PROFILES/BURL-GILYARD) It's not just your imagination: Local co -working space keeps expanding. A new study from Los Angeles -based CBRE Group Inc. reports that the total amount of co -working space in the Minneapolis/St. Paul metro grew by 17.7 percent from the second quarter of 2018 through the second quarter of 2019. CBRE's report found approximately 1.1 million square feet of "flexible office space" in the Twin Cities at the end of the second quarter. Co -working can now be found in dozens of metro locations, but 1.1 million square feet is equal to the size of 33 South Sixth Street, a 52 -story office tower that ranks among the largest in downtown Minneapolis. Flexible office space remains a small sliver of the overall market, accounting for just 1.6 percent of all multitenant office space in the Twin Cities. But CBRE notes that the U.S. average is 1.8 percent, "indicating that there is room for the sector to grow in Minneapolis." CBRE Group is the world's largest commercial real estate services firm and has a big presence in the Minneapolis/St. Paul market. "Office space continues to adapt and evolve to meet the needs of organizations and their employees, who continue to redefine the environment in which they work," said Jeff Jiovanazzo (http://www.cbre.us/people- and-offices/jell-jiovanazzo), managing director of CBRE's Minneapolis business, in a statement. "There is no tcbmag.com/news/articles/2019/september/twin-cities-co-working-space-grows- 18-percent?utm_source=SilverpopMailing&utm_medium=email&utm_c... 2/6 2/6/2020 Twin Cities Co -working Space Grows 18 Percent - Twin Cities Business better example of this than the rise of flexible office space in Minneapolis, which has seen consistent growth year -over -year for almost a decade." Manhattan is currently the co -working capital with 15 million square feet of shared office space, which accounts for 3.6 percent of the office market there, according to CBRE's research. CBRE is currently tracking 71 million square feet of office space in the 40 largest office markets in the U.S. SPONSORED I RSM How can manufacturers thrice during an economic slowdown? Learn the signs of a slowdown and actions manufacturers should consider taking If you think those numbers are mind-boggling, hold on to your hat. CBRE's "baseline forecast" estimates that by 2030, there will be 600 million square feet of shared office space in the U.S., which would then account for 13 percent of the office space market. Current research from Cushman & Wakefield Minneapolis -St. Paul currently tallies 1.2 million square feet of co - working space locally, but that includes additions since the end of the second quarter. RELATED STORIES tcbmag.com/news/articles/2019/september/twin-cities-co-working-space-grows-18-percent?utm_source=SilverpopMailing&utm_medium=email&utm_c... 3/6 EDA Agenda: 02/12/20 9. Consideration of approving Industrial Land Absorption and Demand Study, WSB (JT) A. REFERENCE AND BACKGROUND: In early 2019, the EDA asked WSB to complete an Industrial Land Absorption and Demand Study as a component of its 2019 Economic Development Services Contract. It was hoped that the Study would provide more information regarding industrial land needs over the next 15 to 20 years as the City begins the process of working to update its Comprehensive Plan. The Study offers community market information, a history of land absorption for commercial industrial properties in Monticello and scenario of maintaining tax base valuation to replace Xcel's Monticello Nuclear Generating Plant when is transitions out of service in 20 years +/-. Also included in the report is a prospective timeline in which the EDA and City would need to act to continue to actively support industrial development through available sites is identified as are potential sites and preliminary cost estimates of acquiring and developing a new industrial area. WSB staff will be in attendance at the EDA meeting to review the report and respond to questions and suggestions for additional information and data for the final document. Staff have reviewed and have made note of various edits and the goal is to include those with the EDA's comments and provide to WSB after the meeting. Al. Staff Impact: City staff have spent 35 to 45 hours gathering the history of industrial development in Monticello and providing data used in taxpayer rankings and largest employers in the City. Report review and edits are also included in the estimate of time. A2. Budget Impact: WSB took on the cost of producing the Industrial Land Absorption and Demand Study as a component of the 2019 Economic Development Services contract. The EDA will be billed for various map graphics and illustrations that are included in the report. The estimate of the illustration costs is approximately $2,000 +/-. B. ALTERNATIVE ACTIONS: 1. Motion to approve the Industrial Land Absorption and Demand Study contingent on final edits and changes as directed by the EDA and City staff. 2. Motion to deny approval of the Land Absorption and Demand Study contingent on final edits and changes as directed by the EDA and City staff. 3. Motion to table adoption of the Industrial Land Absorption and Demand Study for further research and/or discussion 0 C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1 wherein the EDA approves the Industrial Land Absorption and Demand Study. The study provides a summary of historical commercial industrial land development in Monticello and offers guidance tied to national regional and local trends for future land demand projections. It also information regarding potential future industrial sites and preliminary development cost estimates. The Study's review and consideration by the EDA is such that it could be available for use in completing the Monticello 2040 Comprehensive Plan. If the EDA approves the Study, it will be provided to the Comprehensive Plan consultants and various staff for integration into the Comprehensive Plan document. Work on the Comprehensive Plan is just getting underway and will continue through the end of 2020. D. SUPPORTING DATA: A. Industrial Land Absorption and Demand Study, WSB & Associates I VAA IrA ME soon iiii NEON neo NEON I am VAA MEMO lams NONE I VAA 0 VAA CITY OF Montic DUSTRIAL ABSORPTION Table of Contents CHAPTER01: ................................................................................................................................ 1 Introduction: ............................................................................................................................... I Purpose............................................................................................................................................1 CommunityBackground....................................................................................................................1 CurrentEmployers.......................................................................................................................1 City Economic Development Efforts..................................................................................................2 Fiber Optic Capabilities and Resources............................................................................................ 2 RecentDevelopment History ............................................................................................................ 3 TaxBase..........................................................................................................................................3 CHAPTER 02: ................................ I............................................... Industrial Land Use & Zoning.. ......................................................................................... 8 IndustrialZoning...............................................................................................................................8 CurrentIndustrial Parks....................................................................................................................8 CHAPTER 03 : ........ :........ W .........-................................................ 9 Economic Development Market Overview............................................................................. 9 NationalTrends................................................................................................................................9 RegionalTrends.............................................................................................................................10 LocalTrends..................................................................................................................................12 CHAP� ...„......................................... IndustrialLand Demand.........................................................................................................16 Commercial/Industrial Land Demand..............................................................................................16 Projected Demand Needs and Methodology...................................................................................16 CHAPTER05: .............................................................................................................................. 17 Existing and Future Industrial Infrastructure.......................................................................17 Ability to serve new sites-areas.......................................................................................................17 Estimated Timeline for new Industrial Park development.................................................................18 A Moitiao 2 wsbl CHAPTER06: .............................................................................................................................. 19 Industrial Development Funding Sources............................................................................19 StateFunding Sources...................................................................................................................19 LocalFunding Sources...................................................................................................................19 CHAPTER07: .............................................................................................................................. Recommendations.................................................................................................................. 20 TaxBase Generation......................................................................................................................20 Potential Future Industrial Park Locations.......................................................................................20 EXHIBITS................................................................................. InfrastructureMaps................................................................................................................. 24 PlanningMaps......................................................................................................................... 28 A Monticello 3 W S b CHAPTER 01: Introduction: Purpose The City continues to focus on its economic development goals of attracting and retaining jobs, expanding the City's tax base, enhancing the economic vitality of the downtown area, and facilitating redevelopment across the community. Towards those goals, the City of Monticello has experienced significant success in the development of its industrial property tax base. That success has resulted in the City nearing full development of existing business/industrial parks and resulting in the desire to evaluate absorption/demand and identify additional land for future development. The purpose of this study is to understand the current average absorption rate of business/industrial park land within the City, estimate future industrial/business park land needs over the next twenty years, and identify possible locations that would support that future growth. This study will also assist in the continuing discussion of the potential 2040 decommissioning of the Monticello Nuclear Generating Station which is the largest taxpayer and employer in the community. Community Background Located in in the northeast section of Wright County, Minnesota, the City of Monticello is located 50 minutes from Minneapolis and 30 minutes from St. Cloud. This regional positioning allows it to draw from the benefits of both areas. As of the 2000 Census the community's population was 7,868. The 2010 census identified a population of 12,782, a 62% population increase. The 2018 population estimate indicated a population of 13,782 showing continued strong growth. The City is served by Interstate 94 (1-94), an east -west route and Minnesota Trunk Highway 25, a north - south route. This location allows companies currently located in the community easy access to markets across the state and country. Both roadways are rated as ten -ton roads allowing for use as commercial transportation corridors. A second full access interchange with 1-94 was constructed on the east side of the City in 2006. Since that time the City has seen an increase in commercial construction including Mills Fleet Farm, Home Depot, Runnings, SuperTarget, and an Aldi to name a few. The City also has access to the Northstar Commuter Rail located 4 miles away at the Big Lake Train Station. Monticello is serviced by two airports. The Minneapolis/St. Paul International Airport is located 47 miles away and boasts a runway length of 10,000 feet. That airport provides service to each of the major airlines including American, United, and Delta and provides charter, commercial, freight, and jet services. The St. Cloud Regional Airport is located 23 miles away and provides a runway length of 7,000 feet. The airport provides charter, jet, and general aviation services and provides service to Allegiant and Sun Country Airlines. Current Employers The City of Monticello has a very diverse employment base even when the generating station is included in the overall employment numbers. This diversity will help the community as it works to replace the positions lost with the decommissioning of the generating station. The City's top industries by North American Industry Classification System (NAICS) codes includes Retail Trade, Health Care & Social MoiticeIloI wsO Assistance, Professional, Scientific, & Tech Services, Real Estate Rental & Leasing, Construction, and Manufacturing. Together those industries account for over 50% of the City's employment base. Top Employer's include the following businesses: Employer NAICS Code Products/ AWCount Employee Xcel Energy Nuclear Power 221113 Electric Power Generation 700 Monticello ISD #888 611110 Public School System 576 CentraCare Health System 62210 General Medical -Surgical Hospital 500 Cargill Kitchen Solutions 42440 Egg based food products 433 Walmart Store 452311 Supercenter Discount Retail Store 325 Home Depot 452311 Supercenter Discount Home Store 160 Target Store 452311 Supercenter Discount Retail Store 150 Ultra Machine Corporation 339112 Precision Manufacturing 200 WSI 336310 Precision Machining, Engine Parts 130 Cub Foods Grocery 445110 Supermarket Grocery Store 100 Bondhus 332216 Tools/Wrenches/Screwdrivers 103 Dahlheimer Beverage 424810 Beer Distributor 96 Genereux-Westland 337212 Cabinets/Cabinet Parts Distribution 67 Suburban Manufacturing 333914 Lubrication/Filter System Components 65 Production Stamping 336370 Metal Stamping Fittings/Gaskets/Parts 62 Twin Cities Die Cast 331523 Aluminum/Magnesium Die Casting 62 Camping World 441210 Camping Vehicle Sales 55 Aroplax ---------- Plastic Injection Molded Parts 52 Karlsburger Foods 311421 Soup, Sauce and Base Foods 49 City Economic Development Efforts The City has taken a proactive approach to its economic development efforts in business retention and attraction. These efforts have proven a strategic differentiator for the City in that it has on multiple occasions attracted a business and then facilitated an expansion of that business within the City. A recent example of this successful economic development effort is the 2018 Bondus Corporation expansion which brought new industrial space to the City and additional livable wage positions. The economic development toolbox that the City currently provides includes land acquisition and assembly, site readiness, construction of public improvements, brownfield remediation, financial subsidies including tax increment financing, tax abatement, and a revolving loan program. The level of assistance offered is based on how the project meets the City's goals for continued development and diversification. These goals are directed to provide for the replacement of the tax base and employment opportunities with the possible closing of the Monticello Generating Station and the continuing creation of a diverse economy. Fiber Optic Capabilities and Resources Notably, the City has made strategic investments in fiber optic service offerings for the business community with the development of the FiberNet system. This fiber network was developed by the City to allow for the provision of high-speed broadband access for businesses. The system is operated by Arvig �Monticello 2 WS b, Communications. TDS Telecom and Charter Communications provide similar broadband service within the community. FiberNet Monticello is an all fiber optic delivery system delivering service up to one Gigabit of synchronous dedicated access. Additionally, Special Service Level Agreements (SLA) packages can be arranged for businesses ensuring continuous ultra -high-speed service. Recent Development History The City has completed a number of economic development projects in recent years including the Dalheimer Beverage expansion, Bondhus Corporation expansion, and Monticello RV Center. Together those projects have provided additional jobs and tax base for the community while also filling up the majority of available industrial land within the City. Photo: Datheimer Beverage Photo: UMC Precision Manufacturing Tax Base Monticello 3 W S b Monticello has taken a proactive approach to assessing and diversifying its tax base. The City's largest tax payer, Xcel Energy, had previously planned for its nuclear power generation plant in Monticello to be decommissioned in 2030. However, it recently submitted a new long-term resource plan to the Minnesota utility regulators stating its intention to extend the license ten more years to 2040. Recognizing that the future is uncertain with respect to the Xcel generating facility, the City is actively working to diversify its tax base with additional commercial/industrial businesses which can provide additional tax base while also serving as employment providers. This is important as not only is Xcel Energy the the largest employer within the community, it is also the largest tax payor in the city. The City of Monticello collects approximately thirty percent of the total tax capacity generated within its municipal boundary. The remaining two thirds of the taxes are distributed to Wright County and the school district with the remaining ten percent being distributed to special taxing districts. Provided on the table on page 5 are the current top 15 taxpayers within the City of Monticello from 2016 to 2018 as well as their tax impact on the City. A Monticello 4 WS b, Business Total Name Capac 2018 (collected) I�Wl -3:2 Total Tax Taxes � Capacity Payable 2017 (collected) Business Total Tax Taxes Name Capacity Payable 2016 (collected) Northern $16,294,2781 Northern $16,970,0 Northern $15,913,229 States States Power 92 States Power Power Co Co Co Iret $295,132 Iret $295,132 Wal-Mart $206,950 Properties Properties Mills Fleet $251,524 Wal-Mart $202,950 Target Corp $200,250 Farm Wal-Mart $196,510 Target Corp $199,250 Monti -Big $146,880 Lake Community Hospital Target Corp $195,510 Monti -Big $145,440 Home Depot $131,450 Lake Community Hospital Monti -Big $145,440 Home Depot $129,280 Spirit Master $102,521 Lake Funding Community Hospital Home $127,190 Mills Fleet $128,368 AX TC Retail $101,626 Depot Farm Clear Creek $119,976 Minnegasco $102,521 Minnegasco $78,294 Land Inc Inc Company Monti -Big $109,980 Spirit Master $101,626 Tapper's $77,636 Lake Funding X Holdings Community LLC LLC Hospital Spirit $102,515 AX TC Retail $81,858 WSI $77,252 Master Industries Funding AX TC $101,634 Centerpoint $77,252 Iret $75,782 Retail Energy Properties Centerpoint $95,184 Tapper's $77,636 RCE $73,250 Energy Holdings Property LLC LLC Tapper's $77,638 Anderson $73,250 BBF $71,558 Holdings Companies Properties LLC LLC WSI $77,252 BBF $70,318 UMC Real $66,250 Industries $73,250 Properties Estate SCR RC Bluffs in $69,224 BNSF $63,676 Funding IV Monticello Railway LLC LLC Company otal Tax $29,528,145 $27,583,1 $25,891,898 Capacit� 60 Northern 55.18% 61.52% 61.46 States Power Co Percent of Total Tax Capacity A Monticello 5 WS O Commented [AS1]: Add information on taxes paid in each year Commented [AS2]: Is this total city tax capacity or just the tax capacity of the properties listed on the table? TAX DISTRIBUTION ■ City ■ County School District ■ Other Based on the total net tax capacity for 2018 ($29,528,145), annual property tax generation for the City isapproximately $8,858,443. Using the same thirty percent calculation, the Xcel facility contributes $4,888,283 in tax capacityto the City which amounted to 55% of the City's total annual tax base in 2018. Commented [AS3]: I'm not sure about this The actual taxes paid number has been decreasing since 2016 as a result of the changes in the formula whole sentence. Help? for the determining of property valuations for generating stations. The percentage has been decreasing due in part to the overall increase in tax capacity in the City as a result of recent development projects. This scenario is expressed in the table below. n States Power Tax Analysis 2018 Total Tax City Percent of the Total Taxes 2018 Total Taxes Tax Capacity that the City is Paid Paid to City 2018 Total Xcel Portion of Xcel Taxes Paid 2018 Xcel City Percent of Xcel Taxes Tax Capacity to City Tax Capacity to Total TaxesPaid $16,294,278 30% $4,888,283 55% If the Xcel facility is decommissioned in 2040 the City will need to have replaced $4,888,283 in taxes capacity, or an additional $244,414 in taxes payable per year between now and 2040 in order to maintain current funding levels. This level of funding is based on the City not increasing services, no inflationary pressures or any increases in market values of the current tax base. The City will need to continue its efforts in economic development to help spur commercial, industrial, multifamily, and single family housing development. An example of successful economic development is the development of the IRET Property which in 2016 had a tax impact of $75,782 and upon development of 202 multifamily housing units, the tax impact rose to $295,132, an increase of $219,350 in tax irevenue. A Monticello 6 WS O Commented [AS4]: Note terminology chanaes throuahout this table. Commented [ASS]: It would be good to use an industrial example here, too. Like how many Suburban Manufacturings or Bondhus expansions. If the City sets a goal of generating an additional $245,000 in taxes per year between now and 2040 with the understanding that the additional tax income is not to be used to expand City services, but rather to lessen the financial impact of a future Xcel closure, then the budgetary impact of an Xcel closure on the City would be proportionality reduced or eliminated. A Monticello 7 ws bl CHAPTER 02: Industrial Land Use & Zoning Industrial Zoning The City's current zoning ordinance identifies three variations of industrial base zoning districts. Those include the following: Industrial and Business Campus District (IBC), Light Industrial District (1-1), and Heavy Industrial District (1-2). The purpose of the "IBC" Industrial Business Campus District is to provide for the establishment of limited light industrial business offices, limited light manufacturing, wholesale showrooms and related uses in an environment which provides a high level of amenities, including landscaping, preservation of natural features, architectural controls, and other features. The minimum lot area is 8,000 square feet and minimum lot width is 100 feet. Buildings are limited to a maximum height of 30 feet. Front yard and side street setbacks are set at 50 feet. Interior side yard setbacks are 30 feet. These areas also may have covenants to restrict the amount and type of outdoor storage. The purpose of the "1-1" Light Industrial District is to provide for the establishment of warehousing and light industrial development. The minimum lot area is 20,000 square feet and minimum lot width is 100 feet. Buildings are limited to a maximum height of 30 feet and front and side street setbacks are set at 30 feet. Interior side yard setbacks are set at 15 feet. Lastly, the 1-2" Heavy Industrial District's purpose is to provide for the establishment of heavy industrial and manufacturing development and use which because of the nature of the product or character of activity requires isolation from residential or commercial use. The minimum lot area is 30,000 square feet and minimum lot width is 100 feet. Buildings are limited to a maximum height of 30 feet and front yard setbacks are set at 30 feet. Additionally, there is a minimum 50 foot setback from any lot line abutting a zoning district other than 1-1 or 1-2. Current Industrial Parks The City's most recent industrial park, Otter Creek Business Park, is zoned primarily 1-1 with a single parcel zoned 1-2. The business park is located south of 1-94 with interchange access to 1-94 approximately 1.5 miles to the east. A variety of business have located here including Suburban Manufacturing Group, Karlsburger Foods, Walker In -Store, and Dahlheimer Beverage Inc. The business park consists of approximately 115 gross acres with 66 gross acres currently undeveloped. It is estimated that of the remaining gross acreage that approximately 52 acres are suitable for development. Dahleimer Beverage recently completed a facility expansion adding on approximately 95,000 square feet of building space. The City is currently working with a few development prospects interested in relocating to the business park and if successful would complete the buildout of the Otter Creek Business Park. This would include the development of the new public works facility on the currently identified site in the park. The City has a second area of commercial/industrial development called the Oakwood Industrial Park. This industrial park is located south of 1-94, east of Hwy 25 in the area of Dundas Road and Chelsea Road. This area is categorized primarily as industrial with businesses including Vector Tool Manufacturing, Wiha Tools USA, Aroplax Corporation, Westlund Distributing, Washburn Computer Group, Production Stamping, and Dakota Supply Group. A Moitiao 8 wsbl CHAPTER 03: Economic Development Market Overview National Trends Since the great recession in 2008, the national market has seen a resurgence in real estate development. In terms of trend factors influencing growth and development, the commitment to the tenants of environmental, social, and governance (ESG) principles are seen as a growing trend nationally. According to a recent Urban Land Institute (ULI) study, for those actually involved in the investment arena, the level of awareness of ESG is skewed generationally. Millennials drive ESG with 55 percent indicating that they factor ESG policies and performance into their investment decisions — a far greater percentage than for Generation X (25 percent) and Baby Boomers (11 percent). This suggests that the power of ESG to influence capital deployment will be rising over time, qualifying it as an emerging trend. In the same ULI study, a large industrial real estate investment trust indicated that they too have seen that ESG has attracted a more diverse set of investors, that ESG aids in overall recruiting talent, and helps generate community support for proposed industrial projects. Along with a heightened focus on ESG, adoption and utilization of 5G technology is driving industrial growth. 5G capability is also becoming increasingly important for the industrial manufacturing market. The technology is utilized in factory automation, remote supervision and control of machines and manufacturing process automation. Essential requirements of 5G service is an overall low latency, long battery life, and high quality of service. Technical solutions for productivity enhancements and operational efficiency are seen as the immediate benefit of this technology; however, property managers and business owners are digitizing as much information as possible so that analytics can be applied, and business decisions made in a timely and accurate fashion. According to the Urban Land Institute, in late 2018 U.S. economic growth accelerated, driving a faster flow of goods while users of logistics real estate (distribution) continued to expand distribution networks in order to satisfy rising service -level expectations, and volatile trade policies pulled import activity forward and boosted inventory levels across sectors. This resulted in a 2018 net absorption level reaching its second highest annual total within the last 10 years at 277 million square feet nationally. Demand has since returned to a normal pace of growth in 2019. Looking forward, the market for logistics real estate is anticipated to remain strong as several large users of space have publicly declared billions of dollars' worth of investment in their distribution networks. A Moitiao 9 wsbl While automation and improvements in technology will replace segments of manufacturing and service employment opportunities, the ability to attract future growth will still rely heavily on the ability to provide Credit: Urban Land Institute 2020 Emerging Trends the necessary workforce required by companies looking to expand or relocate. The image below provided by ULI depicts the projected state net migration from 2019-2023. Minnesota is not projected to outpace neighboring states indicating that the state and individual communities will need to provide resources geared towards talent retention and attraction to help provide the workforce required of future employers. Regional Trends The City of Monticello has an advantageous geographic location between both the Minneapolis/Saint Paul Metropolitan area and the Saint Cloud Metropolitan Area. Both metro areas are economic hubs with Interstate 94 serving as the primary connection between the two areas. - c.1y M M—llo ON ghl Carob O s C— Regional Mato OMinnaaaolia t.Reul Regional Ma A Monticello 10 ws b The Minneapolis Saint Paul Regional Economic Development Partnership, GreaterMSP, has published their 2019 regional indicators dashboard. The dashboard is a set of shared metrics which tracks the region's change on critical economic, environmental, and social outcomes. The dashboard measures change in the areas that matter most for continued long-term success in terms ofimproving the region's economic competitiveness. Provided below are statistics provided by GreaterMSP that forms the regional indicator dashboard. The Peer Ranking score is between one and twelve with one being the best and twelve the worst. The ranking is selected based on comparison to the cities of Atlanta, Austin, Boston, Charlotte, Chicago, Dallas -Ft. Worth, Denver, Pittsburgh, Portland, San Francisco, and Seattle. The peer regions were selected based on demographic and economic characteristics, location, evidence of competition with Minneapolis/Saint Paul for business or talent, and positive economic trajectory. Population that is Number of Economy Median Home Cost Burdened Annual Change Annual Gross Regional Product Growth Annual Job Growth Average Weekly Wage Jobs Paying a Family Sustaining Wage Wage Gap: White – of color (Aged 16-64) Employment Gap White—of Color (Aged 16 - 64) 2.2% 1.7% $1,172 71.3% 66.7% 8.6% Peer Rank 11 Peer Rank 9 Peer Rank 6 Peer Rank 1 Peer Rank 5 Peer Rank 11 Population that is Number of Population 16+ Median Home Cost Burdened Annual Change Net Migration of 25- Population Females Aged Foreign -born Population 25+ Population 25+ 34 Year Olds Employed in 16-64 Years Population with Associates with a Advanced Working Aged 16-64 Degree or Bachelor's 26.0% Industries 49.1% Working Higher Degree or Peer Rank 4 Peer Rank 2 Peer Rank 1 Peer Rank 5 Peer Rank 2 Higher +7,837 People 10.1% 77.3% 76.8% 52.0% 41.7% Peer Rank 7 Peer Rank 8 1 Peer Rank 1 1 Peer Rank 2 1 Peer Rank 3 1 Peer Rank 6 Population that is Number of Population 16+ Median Home Cost Burdened Annual Change Obese Violent Crimes Who Purchase Price Households in Median Committed Per Volunteered Apartment Rent 100k Residents Last Year 26.0% 283 49.1% $273,400 29.7% 4.8% Peer Rank 4 Peer Rank 2 Peer Rank 1 Peer Rank 5 Peer Rank 2 Peer Rank 7 According to the 2019 Q2 Industrial Market Report published by Colliers International, the Minneapolis -St Paul market garnered positive industrial absorption. During the twelve month period that positive . MoiiiceIlo �� wsbl absorption has occurred the average has been 575,000 square feet per quarter. Specifically, in the second quarter of 2019, the recorded absorption amounted to approximately 575,000 square feet. The market wide vacancy held at 7%. A majority of the absorption was from the west/northwest submarket where 510,000 square feet was accumulated. Much of the absorption took place in office warehouse properties. This was speculated to be the result of growing tenants looking to expand with a deal that may be $1.50 per square foot cheaper than new construction. The spaces available were in properties that are functional with bigger bay sizes and low finish. The West/Northwest's office warehouse vacancy rate dropped from 7% to 5.75%. After the large amount of multi -tenant construction completed in the West/Northwest submarket at the end of 2018, the focus for current construction has shifted to the southwest submarket. Development underway in that submarket consists of four office warehouse buildings totaling 670,000 square feet. This is in response to a current office warehouse vacancy rate of 5.3% and an overall vacancy of 6.1 % among all product types. Expansion of single tenant corporate centers are being developed at an overall greater rate than multi - tenant. The total number of expansions for corporate centers is over one million square feet. Industrial users remain active metro -wide with many searching for quality locations that suit their functional needs while also serving to attract and retain a talented workforce. INDUSTRIAL ACTIVITY (COMBINED (SINGLE & MULTI -TENANT] • { AIRPORT J SOUTH OF THE RIVER wEsr rIORn-IwEsr J under tonsvuction: l Project 1130A00 SF Completed in 2019: 0 NORlHEASP NORTHEAST -Im Under Construction- 1 Project 10700051 Completed,, 2019- 2 Projects 1 200.000 SF Local Trends A Monticello 12 wsb SOUTHWEST Under Construction: 5 Prge is 1815,000 SF Completed in 2019: 1 Pneiect 1136,500 SF ST. PAUL EAS[ ST. PAUL EAST SOUTHWEST Under Consiruction:0 f] Complckd rn 2019: 2 Projects 1246.800 SF AIRPORTrSOUTH WEST / NORTHWEST Urder Consrr.ci -ii �. RIVER Under Construction 4 Pw}e Is 1776.780 SF C"Pletm In 2M • Completed in 2019: 1 Project 1262,800 SF Local Trends A Monticello 12 wsb Otter Creek Business Park was developed by the City of Monticello in the early 2000s to address the lack of suitable industrial sites available within the city. The Industrial & Economic Development Committee (IEDC) led the initial discussion about the need for a new industrial area, focusing on companies looking to establish light manufacturing operations in Monticello. As part of the discovery and deliberation process, they determined that neighboring communities were also developing light industrial parks with covenants restricting outside storage, specifying types of building materials, and requiring minimum landscaping improvements on developed sites. Initially, the IEDC focused on recommending that the City establish a light industrial park with restrictive covenants along East Chelsea Road. The area offered excellent visibility to Interstate 94, and it was situated between an existing interchange at MN State Highway 25 and Interstate 1-94 and a planned interchange at CSAH 18 and Interstate 94. At about the same time that the search for additional industrial land was occurring, the private owners of the Otter Creek land area along CSAH 39 at the western edge of the city limits came forward and suggested their property for consideration. The land area offered visibility from 1-94, relatively easy access to 1-94 via MNTH#25 about '/2 mile to the east, and shared participation in creating a key collector road. As a result, the IEDC shifted its focus to a second area of about 150 acres+/- on the far south edge of the city. The second search area was located along MNTH #25 with good access to the transportation system. Eventually, the IEDC reached a consensus that the Otter Creek land area met many of the key land attributes critical to successfully establishing a light industrial area. With the IEDC recommendation in place, the City authorized discussions with the private land owners and began planning for the extension of street and utility services to the area. An additional impetus for establishing the new industrial area was driven by the need to relocate two industrial businesses impacted by the plans for constructing the east interchange at CSAH 18, beverage distributer Dahlheimer Beverage and concrete mixing plant AME. A Monticello 13 WS b, The City of Monticello and Monticello Economic Development Authority (known at that time as the Monticello Housing and Redevelopment Authority) acquired the initial area of the Otter Creek Business Park in 2005. A second purchase occurred in 2011, bringing the total acquired acreage to 139.25 Following the creation of street and utility plans, construction of the initial public improvements began in 2006. This phase of construction included the extension of the major east/west collector, Chelsea Road. Image: Otter Creek Business Park Layout The first sale of property to private industry also occurred in 2006. After accounting for land use necessary for streets, drainage ponds and utility easements and undevelopable wetland areas, about 94.75 acres remained available for development. Over the 12'/z years since the acquisition, 5 projects encompassing a total of 43 acres +/- (an average of 8.6 acres per development) have been developed. The most optimal design for the remaining 51.75 acres provides a potential of sites that can accommodate 5 new developments, including a site for the potential new City Public Works facility. The Public Works facility has identified a site of approximately 19 acres +/-, so acreage that would be available for future new industrial developments would total 32.75 acres. Recent development trendlines suggest that future industrial projects will be consistent with the need for lots ranging in size from 7 to 8 acres. If that pattern is accurate, then 32.75 acres would logically break out into sites averaging about 8.10 acres which equates to 4 available, functional sites. An aerial photo of Otter Creek Business Park and an engineered plan of the Park is shown above. As noted in the current prospect list maintained by the Economic Development Department, the current level of interest by various light industrial prospects suggests that the entire remaining 31.75 acres could be developed within the next three to four years. If this occurs, the City would be limited to a handful of small acreage sites zoned as IBC (Industrial Business Campus) and I-2 (allows outside storage). The 1-2 sites may not be suitable or desirable for companies that do not need outside storage and those that have been the recent target for the City. Furthermore, under the City's current Comprehensive Plan goals, the City's target industrial development candidates are those which create a healthy balance of new tax base and jobs. A thorough review using those two metrics alongside land area, indicates that developments that seek or require outside storage A Monticello 14 WS b, areas do not typically create the number of jobs per acre that are generated in projects where no outside storage is needed. In summary, development of OCBP was pursued as a public policy tool, after research and discussion, to achieve job and tax base growth goals for a 10 to 15 year time frame. If the City adopts similarjob and tax base growth goals in its new Comprehensive Plan, then it may be useful to identify a process wherein it has the option of pursuing additional light industrial sites to provide for the next generation of companies searching the regional market as an offset for the expected future closure of the Xcel Energy Monticello Nuclear Generating Plant. A Monticello 15 WS b, CHAPTER 04: Industrial Land Demand Commercial/Industrial Land Demand The City has been successful in its economic development efforts with a number of recent development projects. A list of land sales dating back to 2013 is included below which helps to ascertain the average annual amount of commercial/industrial land absorbed within the City over the last six years. Mill 2013 Commercial Dollar Tree Total Acreage 0.75 Industrial __am Business Name Von Hanson's 1.77 2014 Aldi's 2.00 Goodwill 2.60 2015 Mattress Firm 0.93 Kwik Trip 2.23 2016 Auto Zone 1.73 Dalheimer Beverage 6.20 Aspen Dental 1.13 LaMont Retail 0.75 Camping World 1.58 Sherburne State Bank 0.89 2017 Burnham Mini -Storage 6.28 Dental Clinic 1.68 Red Rooster 0.10 Mills Fleet Farm 20.0 2018 Twin City Staffing 1.12 Bondus Expansion 0.76 Moon MotorSports 1.46 Ryan Auto 5.00 Total Commercial Acreage Absorbed: 53.00 Total Industrial Acreage Absorbed: 6.96 Average Acreage Absorbed/Year: 5.24 Average Acreage Absorbed/Year: 1.16 The above projects do not include the current projects that the City is pursuing. The Otter Creek Business Park currently has 51.75 developable acres of land still available across four parcels. The City is currently considering 19 of those acres for a future Public Works Facility which would reduce the total available acreage to 32.75 acres. Should the City be successful in closing of current prospect projects, the City's Otter Creek Park would be fully developed. Projected Demand Needs and Methodology Based on the table above of recent land sales, the City is currently seeing the development of approximately 1.0 — 5.0 gross acres of industrial development annually. Based upon this rate of growth the City would need to plan for between 20 and 100 acres of industrial property in order to have enough land to carry it through the year 2040. A Monticello 16 WSO CHAPTER 05: Existing and Future Industrial Infrastructure In identifying the new industrial areas, the City should consider not only the current zoning but the ability and cost of the extension of infrastructure to serve the area. While the cost of the extension of services is an important factor it is not the only factor and needs to be weighed against the other factors including the topography, surrounding uses and long-term community growth plans. The development of a new industrial park can take several years before it is ready for the first project and to be reasonably presented as a viable site for a project. Some of the issues that will need to be addressed prior to the first project are the zoning, platting, site validation for development including environmental review, soil conditions, topography changes, cultural and endanger species reviews. If the property includes any wetlands this process can be extended even further based on the restrictions for wetland delineation. These issues will need to be weighed against each other as the City identifies sites for the development of the future industrial park. The creation of this matrix would allow for the City to identify and compare current sites but also identify sites for future development. The City may also want to consider how it would handle the possible attraction of a mega -site project. These projects are generally larger than 50 acres and could take up all of the area that is being identified for the future industrial park area. These potential sites would have a lower level of predevelopment but should be identified as a single project could replace a significant portion of the jobs and tax base that will be lost with the decommissioning of the Monticello Generating Station. Ability to serve new sites -areas Possible sites for a new industrial park will have varied access to public utilities (sanitary sewer, water, and storm sewer). For the purposes of this study a high level cost estimate was established for the extension of those services. Estimated costs were established based on an economic development project in another Minnesota community that is currently tabulating cost estimates for utility extensions. Without accounting for infrastructure in place, it is estimated that it would cost $175 per linear foot of sanitary sewer and $80 per linear foot of watermain. The cost for stormwater treatment or piping would depend on whether or not it was managed through either regional ponding or individual site treatments. The cost to manage stormwater would ultimately depend on the selected approach. These estimated costs do not account for any possible lift stations or pressurized utility systems. It is anticipated that new utilities will be placed under existing roadways which will then require reconstruction of those roads. It is estimated that it will cost approximately $350 per linear foot for urban (curb and gutter) roadway improvements. The timeline for providing services to the potential sites is dependent upon the City's approach to the timing of infrastructure improvements and the availability of funding sources. The City can choose to extend utilities to a chosen site prior to development as a way to entice future development or it can wait to extend utilities until a project necessitates that extension. The financial component of each scenario is the basis of a policy decision for the City. A Monticello 17 WS O Estimated Timeline for new Industrial Park development Based on the current rate of absorption and the projected demand for industrial space within the City, it is estimated that the City will need a new 20 — 100 acre industrial park site within the next two to five years depending on current potential projects. If all of the current potential projects currently completing due diligence within the Otter Creek Business Park come to fruition, the City could need a new business park in as soon as twelve months. 1 � Monticello 18 W S b CHAPTER 06: Industrial Development Funding Sources State Funding Sources The City can access some grants from the state for the development of the new industrial park and the extension of public infrastructure. The primary grant vehicle for the City would be the Greater Minnesota Business Development Public Infrastructure (BDPI) grant program. This program allows for the City to receive up to $2 million for the extension of publicly owned infrastructure. Traditionally, if the City has a project, the funding is easier to attain, however the state has made changes to the program that allow for the development of speculative industrial park development. This is a competitive program and needs to be recapitalized by the legislature so the availability of funds may be limited. The City may also consider the approaching of the legislature for a bonding bill appropriation based upon the pending closing of the Xcel facility to allow for the replacement of the tax base through new growth. Local Funding Sources The Monticello Economic Development Authority (EDA) operates under rules governing financial programs such as tax increment financing and business subsidy grants and loans. These programs can help to provide financing to make quality projects viable that have a financing gap that could result in the project not moving forward. The EDA has used tax increment financing methods to allow for the expansion of industrial park areas and this method could be used for the development of new industrial parks. The process that has been used in the past has resulted in the City incurring some risk in that they have extended the services prior to the actual projects and recovered those costs with the development of new projects. This can be a successful, however, the City needs to actively pursue new projects and continue to develop relationships with the local companies to allow for the continued growth and land absorption. In addition, the City may also want to consider the use of special assessments for the extension of infrastructure to the site of the new industrial park. This would allow for the City to have the park available for development while recovering the costs with the development of the property. This structure would increase the upfront costs to the city but would have the advantage of the city recovering the costs with the development of the sites reducing the risk associated with the extension. A similar program was used for the development and extension of infrastructure to the Otter Creek Industrial Park. There would be a need to balance this cost recovery against business development incentives. A Monticello 19 WSO CHAPTER 07: Recommendations Tax Base Generation The City should set a goal of generating an average of an additional $245,000 in taxes per year between 2020 and 2040. The additional tax income is not to be used to expand City services, but rather to lessen the financial impact of a future Xcel closure. If used in such a way, then the budgetary impact of an Xcel closure on the City would be proportionality reduced if the facility would cease paying all property taxes in 2020. Since the full decommissioning process can take over 20 years, this planning would allow for a significant buffer for financial stability of the City. Potential Future Industrial Park Locations In reviewing the City's 2008 Comprehensive plan, the City had identified areas of land as "places to work" with the intention that those properties would provide land to support future employment opportunities and additional tax base for the City. These sites have been reviewed and compared as the potential sites for the future industrial barlk. A Monticello 20 wsb Commented [A56]: Remove Site three and relocate with a different color to a search area near CSAH 39. .per, L 3 fl \N, � ri'✓ � ,_ F—moi i it i J _-- --_til F — Site One SiteThree—`- Potential City d mont.dio—ndary Site C#ie Mo,-yA„n-W—Ar- Expansion - MonticeIlo Potential Future Industrial Park: Possible Sites Monticello, MN N o 2,500 5,000 Feet L-, WSt,_J A Monticello 20 wsb Commented [A56]: Remove Site three and relocate with a different color to a search area near CSAH 39. Site 1: Is located at the northeast intersection of Highway 25 and 85th Street NE and identified as PID's 155500221101, 213100224203 and 213100224100. Cumulatively these three properties represent approximately 139 acres of developable property. Additionally, the land immediately south of the site (approximately 160 acres) is also vacant representing the opportunity for additional growth as well as the possibility of the cumulative area being expanded to 300 acres for development that could be used for large scale industrial development. The site has access to Hwy 25 which has an existing full access interchange onto 1-94 less than two miles to the north. The site is currently located within the Orderly Annexation Area between the City of Monticello and the Monticello Township. Future development would require that the City complete a formal annexation process for the site under the Orderly annexation agreement. The closest point for existing utilities is from the existing residential subdivision to the east of Site 1. The below utility and roadway estimates are based on connection from those existing utilities. With this location, there would be concern regarding additional truck traffic on the already congested TH25 corridor. Necessary Infrastructure Estimated Cost Per Linear Foot u. - Distance from Site (ft) Estimated Cost to Extend Utilities Sanitary Sewer $175 1,200 $210,000 Water Main $80 1,200 $96,000 Urban Roadways $350 1,200 $420,000 Property Acquisition Total Square Feet Cost per Square foot Estimated Cost to Acquire PID 155500221101 3,459,535 $0.38 $1,306,690 PID 213100224203 954,399 $0.34 $326,810 PID 213100224100 1,715,828 $0.16 $275,330 Estimated Total: $2,634,830 *Cost to acquire is based on 2019 assessed value plus 10% A Monticello 21 ws b, Site 2: The City has guided land for "Urban Reserve" on the western side of the City north of County Highway 39. The properties in total represent approximately 111 gross acres of land and are identified as PID's 213200324400,213200324301, i 213200324403,213100051103, 213100051100, and 213100042202. The properties access onto Highway 39 extends and crosses over I-94. The crossing at I-94 is saerwti' �10iN S"'NE - an elevated crossing and would likely require N�� the construction of exit/entrance ramps to support added commercial/industrial development. The site is currently adjacent to a grade separated intersection with Interstate --- -- __ 94. The addition of exit and entrance ramps onto 1-94 at this intersection would improve the accessibility of the proposed site. The site is currently located within the Orderly Annexation Area between the City of Monticello and the Monticello Township. Future development would require that area be formally annexed into the City of Monticello. Property acquisition for the park and transportation improvements would be required. The site presents a unique challenge in that the closest utilities on the east side of Interstate 94 and would require jacking utilities under the interstate in casings which would add cost to the overall cost of extending utilities. The closest utilities on the west side of Interstate 94 are located at the intersection of Chelsea Road and County Road 39. It would be approximately 10,000 linear feet from the existing utilities to the southern boundary of Site 2 if utilizing existing roadways as the utility alignment. This would represent a significant investment but would bring city services to approximately 325 acres that could then also be developed in accordance with the City's comprehensive plan. Necessary Infrastructure Estimated Cost Per Linear Foot .1 Distance from Site (ft) Estimated Cost to Extend Utilities Sanitary Sewer $175 1,100 $1,925,000 Water Main $80 1,100 $88,000 Urban Roadways $350 - - Jacking under Interstate $350 1,000 $350,000 Property Acquisition Total Square Feet Cost per Square foot Estimated Cost to Acquire PID 213200324400 1,738,915 $224,620 PID 213200324301 910,404 $164,230 PID 213200324403 86,213 $202,730 PID 21.3100051103 252,713 $268,400 PID 213100051100 715,255 $103,290 PID 21.31.00042.202 1,185,267 $183,920 Estimated Total: $3,510,190 *Cost to acquire is based on 2019 assessed value plus 10% A Monticello 22 WSO Site 3: At the time of this report, the City was also evaluating the potential for additional industrial development immediately to the north of County Road 39 as a third potential industrial site. The City should further evaluate the two potential sites through community engagement process with the completion and updating of the city's comprehensive plan. However, given current analysis when comparing the three sites, site one is the closest to being 'development ready' of the three as it is the only site with at least a portion of the identified area within the existing municipal boundary. In addition, it has the closest proximity to existing utilities and is guided as "placed to work" in the cities most recent comprehensive plan which aligns the properties future land use designation with an industrial park. A Monticello 23 wsbl EXHIBITS Infrastructure Maps I ,.0 z '�[ounry lu tS - ':n4 f[y'ri-d 14 h�,•• ika rke I. �C! •� Rov id 4," I ' I . mil i (II _— City Boundary 0 pal 0--lS--- Sanitary Sewer Nressunzed Mains Sanitary Sewer gravity Mains rt City Sanitary Sewer ` 0 3.00D I - i �t)Ilt1iX ll{� Nutoe ID, MN FCci L C Yl -- 1� 1 inch 3,600. ri A f s FFh.JJJ ci Y V i MoLi& o 24 wsb _j rl ha ?5 1 nNrCl FA, dg-- PM zj- ,j2uuntry IU3 x hriti la f. K CO 3oundary Parcels Water Main by Diameter City Water Main 1; a 3. JOG NluntuEb, M A MOSINEE= Foe I WSO "nLl 20C r2a I&MoLi�eflo 25 WS %—RiF lub v sy Cly Boundary Parcels Storm Sewer Gravity Mains City Storm Sewer a 0.50c. Nluntcplo, M 11111§[== Foe I Ws 1:51 1 inch 3,50C feci I&MoLi�eflo 26 wsb -7T , K-SEAJ Potential Future Sanitary Sewer Alignments Monticello, MN p_ U, M EA.d.g Lift = :' city Ro°°aary- Existing Gravity Main P::p. G—�, M - _,:,d i SE 7 76 M 118 L..d U .Critical Path 171—Ii. §E 121 SE nt,r !TMENIP Z21 - -7T , K-SEAJ Potential Future Sanitary Sewer Alignments Monticello, MN I&MoLi�eflo 27 wsb z7 i SE 7 76 I` i .Critical Path 171—Ii. §E SE nt,r !TMENIP -- -pare MQ h 1. C (0 fei rs, ana tn GIS N 0 2,000 4,000 AFeet WS %, I&MoLi�eflo 27 wsb Planning Maps City of Monticello Future Land Use Plan (2008) I MoLi cello 28 ws b >a , •� .: 711 I �� ., City of Monticello Future Land Use Plan (2008) I MoLi cello 28 ws b � 1 1 \�I I City of Monticello .\ Official Zoning Map N 7 inch - 25DO feet BASE ZOMIMG I)ISTRIGTS Resbenllel ub4lsla R..Be.a urohbm —fow RespenVaf�msLEs Og.l RU O R-2 C R"p =33 o R-1 e� —ueoam Revxcwrc�ru¢res CCD C Thi1.W.}11el Rkhbll o R-, o lay 0 Rvuo � I-1 � la —fi(JRResfOendaf �en.we. - RJ ®f.Rn RNa - R1 � ILTOY9b MAI EMbd ®NN Reel Feml _ ,�N ® RIO Rowly PUB. ® •oma ag. ® c�Ip.q vRRa Q-mm®ulvice.le EIaR� O M.bn ®wre.nR Rbc. ® luvertmm 6eRs. OVERLAY DISTRICTS I_ P.rtwmac. sawn o.a.vy owmct [__jac.sl.I M.Onller ueewt I —, .—W fR...... 6 Rec —My ..t q O3.RMlaIO Dw—t -, ..q 90R.. MA .td X "4k. —————-—————— J I Monticello 29 WSb Properties for Sale Guided Industrial Jim Thares � Jim.Thares&i.monticello.mn.us 1 (763) 271-3254 Updated: February 2020 PID Owner 1 10.87 155-194-000010 City of Monticello 2 $0.00 155-223-000010 City of Monticello 3 1-1 155-194-000020 City of Monticello 4 5.01 155-171-000050 City of Monticello 5 $0.00 155-194-000040 City of Monticello 6 1-1 155-185-000010 City of Monticello 7 155-171-000060 City of Monticello 8 155-171-000030 A Bowers / Commercial Realty Solutions Size (Acres) 2019 Taxes Zoning 10.87 $0.00 1-1 5.28 $0.00 1-1 6.67 $0.00 1-1 16.1 $0.00 1-1 5.01 $0.00 1-1 2.32 $0.00 1-1 13.67 $0.00 1-1 19.09 $900.00 IBC EDA Agenda: 02/12/20 10. Consideration of 2020 WSB Economic Development Assistance Services Proposal (JT) A. REFERENCE AND BACKGROUND: This item is presented to the EDA for consideration of an Economic Development Assistance Services Proposal with WSB & Associates. During the EDAs recent workshop discussion about its 2020 Workplan, feedback was provided to staff regarding potential adjustments in the scope of services. Based on those comments, the attached reduced service level contract is being presented for consideration. The new contract proposal eliminates the marketing items that were a part of the previous contracts and now focuses on three core services that are more measurable and technical in nature. They are: 1. Site Design and illustrations 2. Financial Packaging and Site Selection work components 3. EDA Interaction and Engagement components While the price of the contract is remaining unchanged from 2019, staff believe these key assistance areas are worthwhile in continuing to work with WSB in a retainer contract format. It is worth noting that the Site Design -Illustration component (three free Site Design Illustration packets) may be worth $6,000 +/-. Also, the EDA Interaction and Engagement components may have a value of $3,300. If the EDA decides to again pursue the contract with WSB, staff would recommend the contract start date be January 1. 2020 and end on 12-31-2020. Al. Staff Impact: The Economic Development Manager devoted about 8 to 10 hours reviewing and discussing the proposed renewal of services with the Community Development Director and Jim Gromberg, WSB's lead economic development consultant, on the proposal. A2. Budget Impact: The total amount budgeted for Economic Development Assistance Services in 2020 is $9,300. The funds for the 2020 WSB Economic Development Assistance Services Proposal are currently budgeted in the Marketing line item, a component of the overall EDA budget which was approved at the August 2020 meeting. B. ALTERNATIVE ACTIONS: 1. Motion to approve the proposed 2020 WSB Economic Development Assistance Services Contract in the amount of $9,300. 2. Motion to deny approval of the proposed 2020 WSB Economic Development Assistance Services Contract. 3. Motion to table consideration of 2020 WSB Economic Development Assistance Services Contract for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1 wherein the EDA accepts the proposed 2020 WSB Economic Development Assistance Services Contract. The 2020 proposed contract scope of services has been revised and is more realistic and offers real value from the Site Design Illustration work component as well as the EDA Interaction and Engagement work items. Having WSB be on call to offer consultation and provide the identified assistance does indeed help the Economic Development Manager be more effective in the use of time and resources in the various project organizing tasks. In addition, it is expected that the expertise of Mr. Gromberg in the area of State level assistance programs provides value to the EDA in generating various financial packages for a variety of economic development projects. Jim Gromberg, WSB & Associates, will be in attendance at the meeting to answer questions about the proposed 2020 Contract and/or services provided in the past year. A copy of the proposed 2020 Contract and a memo describing an alternative service offering in the form of an alacart services and pricing format are attached to this report as exhibits. D. SUPPORTING DATA: A. 2020 Proposed WSB & Associates Economic Development Services Contract Scope of Work B. Memo outlining alternative alacart service selection format C. 2020 Marketing Budget — Component of the EDA Budget 0 U z W m co 0 0 co co LO z U) J 0 CL a W z z 2 0 Cl) W U) T wsb December 31, 2019 Jim Thares Economic Development Manager City of Monticello 505 Walnut Avenue, Suite 1 Monticello, MN 56069 Re: Economic Development Services for the City of Monticello Dear Mr. Thares: Thank you for providing WSB the opportunity to submit this proposal to provide Economic Development Services for the City of Monticello. The community has made significant progress in working towards their goals and project identification over the last year. Based upon our discussions for the focus of the economic development services for 2020 we have developed the following summary of the proposed Scope of Services for ongoing support. PROPOSED SCOPE OF SERVICES Task 1: Preliminary Site Designs: 1.1 WSB will also assist the City staff in the development of up to 3 preliminary site plan designs for projects that are requested by the City. o The preliminary site plan designs will be completed by the Landscape Architecture staff. o Complete or signed drawings would be billed separately on a project basis and not included in the retainer fees. Task 2: Financial Packaging and Site Selection Technical Assistance 2.1 Economic Development Opportunities - WSB will identify and assist in identifying potential economic development opportunities: including the following: o Land acquisition. o Financial incentive opportunities. o Preliminary proposal development. o Assist in closing. o Act as a conduit for information and resource for prospect and City staff. o WSB will assist in providing development related information to all qualified leads. o Assistance with financial package preparation, upon request, in consultation with City staff, policy makers, financial consultant and State or Federal agencies/programs as appropriate. o Attendance at pre -design meetings associated with leads/prospects. Jim Thares December 31, 2019 Page 2 Task 3: EDA Interaction: 3.1 WSB will participate in and offer guidance and advice in strategy sessions at 2 EDA meetings focusing on economic development strategy for the City. The sessions will be not be more than four hours in total and will be completed within the structure of EDA meetings/workshops or at a time of mutual convenience for all participants. The resulting strategies will be incorporated into the Monticello 2040 Comprehensive Plan. WSB will participate in the Monticello 2040 Comprehensive Plan economic development engagement session(s) regarding industrial -commercial land demands and needs. WSB will provide a quarterly report (March, June, September and December) to the EDA on its activities and related work tasks in support of City staff along with excerpted materials from available economic development reference guides - periodicals regarding general economic performance metrics in the region and outlook about regional and national economic development trends. All reports and materials are to be provided to staff in advance of the regular meeting so it can be incorporated into the EDA Meeting packet. FEE FOR SERVICES As outlined in the above Scope of Services, the City has the option to retain WSB & Associates for 12 months at the fee of $775.00 per month, starting January 1, 2020. Travel expenses incurred by WSB within Minnesota as part of the Scope of Services offering are included in the monthly fee. Travel expenses incurred by WSB for travel outside of Minnesota shall be paid for according to a negotiated price. Additionally, fees for services outside of the above described scope may be required from time to time and shall be completed at an additional hourly rate. If you agree with the proposed project Scope of Services and Fee, please sign below and return one copy to our office. If you have any questions or comments regarding the above information, please contact me at (763) 762-2846. Sincerely, WSB & Associates Title: Date: Jim Gromberg Economic Development Coordinator Approval Signature By: 7. 0 0 0. z W U) 0 00 CO 0 0 LO z U) J 0 C1. a W z z 2 0 0 CO W T ws b Memorandum To: Jim Thares, Monticello Economic Development Manager From: Jim Gromberg, Economic Development Coordinator Date: February 5, 2020 Re: Proposed Contract Attached for your review and consideration is the proposed contract for economic development services for the City of Monticello in 2020. Based upon our conversations the contract includes the following items for the City. While these services are proposed to be completed under a retainer model (set amount for each month), I have estimated the cost of providing the services on an individual basis. Preliminary Site Designs: The best upon the development of previous preliminary site plan designs the cost per plan is $2,000-$3,000. Estimated value $6,000-$9,000. Project Technical Assistance: The development and assistance for new projects has average 24 hours based on current hourly rates results in a cost of $3,480. EDA Interaction: The EDA Strategy meetings and guidance would require 4 hours of meeting time, 4 hours of travel time and the completion 4 hours for the completion of a summary of the meeting. Based on the current hourly rate of $145 the cost of the sessions would be $1,740. EDA Quarterly Reports: The completion of the quarterly reports would require 2 hours for a total of 8 hours resulting in a cost of $1,160. Using the above cost estimates the contracted services would have a total value of over $12,380 based on the current hourly rates. The proposed retainer contract has a total annual charge of $9,300. This reduced pricing allows for both the City and WSB to better plan costs and revenue generation during 2020. 2020 EDA MARKETING PLAN &BUDGET (PROPOSED) TOTAL BUDGET $24,400 INDUSTRIAL Amount Market Matching $9,300 Trade show attendance (see list from WSB) Greater MSP Representation State incentive program development and facilitation List purchase: Site selectors, manufacturers, brokers, etc Annual collateral piece update (wrap and sites), base files Direct Mail or Media -Ad Buys Brokers, site selectors, manufacturers Times Partnership Piece 2018 Digital Update Website Direct URL buildingbusinessinmonticello to City site Build City pages Work with partners for links to site Business Retention & Expansion Industry of the Year Visits DOWNTOWN (COMMERCIAL &RESIDENTIAL) Marketing Collateral Cuningham prep of general and site pieces Media Ads -Content Articles and press release in MSP journals and magazines HOUSING $1,200 $1,250 $200 staff staff $1,200 staff $4,500 $1,200 staff Program Marketing Materials $1,000 Develop programs then promotional pieces Website staff Developer programs, post to website Developer/Builder Breakfast $900 Focus on step-up builder/developers GENERAL Events $1,800 Invitations to larger community events, hosting Broker events $100 Downtown Meetings $250 Promotional Materials $1,000 Unique and recognizable items with quick -read piece IDEAS: Compass, flash drive, post -its, etc. shove for "shovel -ready" Other Case by case evaluation $500 TOTAL $24,400 EDA Agenda: 02/12/20 11. Consideration of 2020 EDA Workplan (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to consider adoption of the proposed 2020 EDA Workplan. Discussion and formulation of the 2020 Workplan took place in an EDA Workshop on January 8, 2020 and during the second regular meeting on January 22, 2020. While many of the strategies are similar to prior workplans, there were several goals and objectives that received considerable discussion with suggested changes. The proposed 2020 Workplan is attached to this report for final review and comment and ultimately consideration for approval by the EDA. If the EDA has additional edits, staff would ask that they 2020 Workplan be considered for approval contingent on staff making the final adjustments to the document as directed by the EDA. Al. Staff Impact: Preparation of the 2020 EDA Workplan required a fair amount of staff time of the Community Development Director and the Economic Development Manager. A2. Budget Impact: The review and editing tasks of the annual Workplans are included in the job descriptions of both of the EDA support staff, and as such, those associated costs are part of the EDA's routine operating expenditures. ALTERNATIVE ACTIONS: 1. Motion to adopt the 2020 EDA Workplan as presented. 2. Motion to adopt the 2020 EDA Workplan with revisions identified by the EDA. 3. Motion to table the adoption of the 2020 EDA Workplan for further research and/or discussion. B. STAFF RECOMMENDATION: If the EDA feels the 2020 Workplan is complete and meets their approval, then Alternative #1 is appropriate. If the EDA feels that the 2020 Workplan needs to be further revised, then Alternative #2 or #3 is appropriate. C. SUPPORTING DATA: A. Proposed 2020 EDA Workplan B. Small Area Study Implementation Priority Summary Monticeflo MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY 2020 ANNUAL ECONOMIC DEVELOPMENT WORK PLAN EDA Purpose: The EDA is charged with coordinating and administering the City of Monticello's economic development and redevelopment plans and programs. The EDA is also responsible for housing and housing redevelopment. EDA Work Plan Mission Statement: The EDA's work plan is adopted in support of achieving the goals of the Monticello Comprehensive Plan and the 2017/2018 City Strategic Plan. The EDA will be proactive by developing and undertaking actions for achievement of the Comprehensive Plan's Economic Development goals and will be reactive in responding to economic development opportunities as they arise in the most timely and effective manner possible. The EDA shall utilize the economic development strategies of the Comprehensive Plan, including the Downtown Small Area Plan as a guide for action. Comprehensive Plan Goals: Attracting & Retaining Jobs Expanding Tax Base Enhancing Downtown Facilitating Redevelopment Supporting Life -Cycle Housing Choice 11 Page GOAL(S): FACILITATING REDEVELOPMENT Objective: Continue to support redevelopment efforts for publicly -owned properties on Block 52. Strategies: 1. Continue to focus on site control for a potential future targeted redevelopment in Block 52 as envisioned in the Downtown Small Area Study Plan. 2. Continue to collaborate with Beard Group, Inc. in the design of a redevelopment plan suitable for the Block 52 site(s). 3. Reconnect Walnut Street to River Street in support of redevelopment. 4. Remain open to strategic opportunities for redevelopment throughout the community. 5. Refocus on aggressively marketing Block 34 and the Cedar/Broadway site. GOAL(S): ENHANCING DOWNTOWN EXPANDING TAX BASE SUPPORTING LIFE -CYCLE HOUSING CHOICE FACILITATING REDEVELOPMENT Objective 1: Implement the recommendations of the Downtown Small Area Plan. Strategies: 1. Support and advocate for improvements to the downtown as envisioned in the Small Area Plan and Walnut Street Corridor Plan. 2. Develop and support the appropriate policies, programs, and incentives that enable the type of development described in the Plan. 3. Continue to build a funding base for use in property acquisition and redevelopment efforts in targeted areas. 4. Implement a facade improvement program for desired revitalization areas. 5. Continue to meet with downtown property owners either in either an informal group setting (Downtown Rounds) or individually to understand their concerns with traffic, parking, land use and possible reinvestment in their property as well as willingness to sell, partner, price, etc. 6. Encourage continued incorporation of arts as an economic development tool for Downtown Monticello and the community at -large. 7. Support opportunities for park and pathway development as consistent with the Downtown Small Area Plan. 8. Encourage the redesign of the pathway connection under the MN TH #25 bridge to incorporate safety elements and improved lighting. 9. Ensure greenway and pedestrian/cycle connections are considered within the downtown and from the downtown to other areas within the community. 21 Page Objective 2: Develop and implement a comprehensive Marketing & Communication Strategy for priority sectors and locations. Strategies: 1. Engage a marketing intern to design and implement the Marketing & Communication Strategy in concert with the Communications Manager and Economic Development Manager. 2. Support the development of an economic development brand and implement in all sectors of economic development activities. 3. Enhance the brand and tell the story of Downtown Monticello. 4. Incorporate the marketing of EDA incentive programs in a more proactive manner, both within the community and beyond, a. Present existing and new incentive programs to smaller community groups, local banks, realtors, and local businesses either on in an informal group session or a formal roundtable format. b. Develop and communicate a "complete" development package program which provides support and assistance to prospects and developers from inquiry to construction. 5. Market industrial development at the Monticello Business Center (Otter Creek Business Park) to a broad variety of prospects as guided by the current and future Comprehensive Plan. a. Focus on prospects which serve or rely on the St. Cloud and Twin Cities markets. b. Focus on supply chain prospects. 6. With the IEDC, communicate with current business and industry in support of Business Retention & Expansion. a. Engage in informal business and industry small group meetings and explore potential format of helpful formal round tables meetings. b. Work with the Monticello Times to do a business spotlight or profile article two times per year. Objective 3: Support community quality -of -life initiatives which act as economic development tools. Strategies: 1. Encourage and support coordinated planning and development of parks, trails in or near business districts. 2. Support the development Bertram Chain of Lakes Regional Park, including community connections. 31 Page GOAL: SUPPORTING LIFE -CYCLE HOUSING CHOICE Objective(S): Evaluate the need for specific housing types and act as a partner in creating affordable housing development for the community. Strategies: 1. Complete 2020 Housing Study update to assess housing needs across the spectrum of housing choice and incorporating changing demographic trends. 2. Develop revised policy statements for housing which address the identified study needs. 3. Continue to market workforce housing development on EDA owned land along East 4th Street and Outlot A of Country Club Manor, or at other suitable sites in the City, including the Downtown. 4. Support efforts by private and non-profit entities to develop affordable housing projects utilizing state and federal programs. 5. Examine use and application of available housing TIF dollars per the 2016 TIF Management Plan and the adopted Policy Statements for Available TIF Funds. 6. Continue to periodically examine housing stock for aging or blighted properties and research development of programs for redevelopment and/or revitalization of existing housing. GOAL(S): EXPANDING TAX BASE, ATTRACTING & RETAINING JOBS Objective 1: Continue to develop and leverage available tools for business development and job creation. Strategies: 1. Continue discussion on use of tax reimbursement/abatement, including development of criteria/application. 2. Identify and communicate new or innovative state and federal programs or grants which could be leveraged to support business development. 3. Proactively support small business start-up efforts through programs and various tools available for small businesses. Objective 2. Collaborate with various local entities involved in monitoring and developing workforce training awareness efforts to address workforce needs. Strategies: 1. Continue to support the IEDC interactions within the Wright County Workforce Pathways efforts in addressing workforce needs and training. 2. Consider IEDC recommendations and be prepared to be a partner in potential solutions based on WCWFP findings. 41 Page Objective 3: Engage as a partner in local and regional planning and development opportunities. Strategies: 1. Monitor the regional planning efforts of the Central Mississippi River Regional Planning Partnership (CMRRPP) and engage with feedback as requested. 2. Consider funding and/or completing studies that provide policy and strategy framework for desired land uses/or projects in the downtown and for other programs. 3. Monitor commuter rail development in and around the Twin Cities metro region for potential benefits and opportunities to serve Monticello. Appendix: Monticello Comprehensive Plan, 2008 — Economic Development 51 Page Downtown Small Area Study Implementation Workshop November 16, 2017 _._._._._._._._._._._..._._._._._._._._._._._._ Participants City Council: Brian Stumpf, Bill Fair, Jim Davidson, Charlotte Gabler, Lloyd Hilgart EDA: Tracy Hinz, Steve Johnson, Jon Morphew, Bill Tapper Parks & Recreation: Nancy McCaffrey, Larry Nolan Planning Commission: Katie Peterson Guests: Clay Sawatzke, Michele Hertwig Staff: Jeff O'Neill, Angela Schumann, Jim Thares, Jacob Thunander, Tom Pawelk, Rachel Leonard, Jennifer Schreiber Workshop Purpose Set a foundation for realizing the downtown plan by encouraging the various commissions to cooperatively review the elements of the plan, prioritize the components, and strategize implementation. Prioritization Exercise Organized by Highest Ranked Projects: Redevelopment: Pursue signature redevelopment on Block 52 with market rate housing and a destination restaurant that overlooks the park. Public Realm Improvements: Redesign riverfront parks to include more active events and programming in West Bridge Park (amphitheater, water feature, concessions) and passive uses in East Bridge Park. Broadway Street Commercial Vitality: Broadway Street Environment: Develop small pocket parks on vacant properties along Broadway, offering outdoor seating, and pedestrian connections to parking. Curb extensions at Walnut and Broadway to provide space for landscaping, seating, and gathering. Identity Building: Build Downtown's brand and identity by identifying the downtown core as the Broadway Walnut area, and naming it. Pursue marketing initiatives to build the new brand. Business Support & Development: Establish fagade improvement programs that offer financial support for improving building appearance and district identity. Organized by Survey Category High -Impact: 1. Pursue signature redevelopment on Block 52 2. Redesign riverfront parks... 3. Establish fagade improvement programs... Low -Hanging Fruit: 1. Improve bridge underpass... 2. Develop small pocket parks... 3. Curb extensions at Walnut & Broadway Personal Interest: 1. Redesign riverfront parks... 2. Pursue Signature redevelopment on Block 52... 3. Reconnected Walnut Street to River Street... East & West Bridge Park Improvements Foundation: Location on the river, high visibility, varied topography, existing assets, capable parks staff, dedi- cated volunteers, popular community events. Challenges: Limited automobile & pedestrian access, perception of noise and actual noise, potential river island flooding, limitations of adjacent land uses, ma- ture trees can block views, hard to change what's al- ready popular. Mitigation: Acquire surrounding land to allow redevelop- ment and growth, connect Walnut Street to River Street, use signage and rebranding to encourage ex- ploring downtown and connecting with the parks, en- hance underutilized assets like the southeast stairs and bridge underpass. Leadership: Parks staff, Park & Recreation Commission, City Council, and EDA with redevelopment. Key Decisions: Park design, connection of Walnut St. to River St, reconstruction of River St, redevelopment of Block 52. Priority Tasks: Park design, remove understory plants for visibility to the river, programming & events, connect Walnut St. to River St. Block 52 Redevelopment Foundation: City owns a portion, another property for sale, high visibility, beautiful view, parks complement, EDA is engaged in acquisition. Challenges: Cost of acquiring property, getting the right developer, potential contamination, community confu- sion of public purpose, competition with completing Block 34, relocation costs. Mitigation: Continue acquiring land and empower eco- nomic development manager to meet with developers. Leadership: EDA for site control and incentives, staff for recruitment and negotiating, additional city staff from planning, public works, Wright County, etc. Key Decisions: Preliminary development agreement, zoning ordinance changes, incentives. Priority Tasks: Design for Walnut Street connection to River St., redesign West Bridge Park parking, acquire properties, reach out to developers to find the right partner, continue building relationships and communi- cating with property owners. Downtown Housing Development Foundation: Strong market, regional and local amenities, demographics, walkability, accessibility, site control, lender and council support, developers interested, jobs nearby. Challenges: Relocation development costs, water table, cost of quality construction, noise, traffic access, size of block divisions, developers have many options, zoning not currently aligned with plan, existing property & business owners. Mitigation: Gather better information on water table, shared equity solutions, create one TIF district, buying options. Leadership: EDA to lead land acquisition, TIF program, coordination with lenders & developers. Planning Com- mission to lead zoning review. City Council responsible for final approvals. Key Decisions: Determining one site or many, zoning approved that balances flexibility with predictability. Priority Task: Create package or feasibility for several sites so the city knows its limits and capacity, include aesthetic design expectations, get a more detailed un- derstanding of the downtown market, engage in out- reach to developers with marketing materials. Activating Broadway Street's Commercial Vitality Foundation: Proximity to parks and river, some business- es already making positive changes, changes will en- courage people to visit, opportunity to build relation- ships, high traffic area. Challenges: Not all buildings up to code, cost of rehabili- tation, lack of space for outdoor seating, lack of con- centration, need to agree on fagade style, traffic, busi- ness mix. Mitigation: Assess the state of properties, survey and encourage stakeholder participation, offer financial in- centives, help 1-2 businesses start to encourage others. Survey property owners to guide the focus. Leadership: Existing business group, Chamber, City Council, EDA, and city staff. Priority Tasks: Determine ownership of every parcel with contact information, reach out to property and busi- ness owners for their ideas, identify and build alliances, determine design standards. Other: Encourage EDA to build relationships. EDA Agenda: 02/12/20 12. Economic Development Report (JT) A. Lodging — Hospitality Study: The IEDC discussed and approved a recommendation that the EDA consider updating the Lodging and Hospitality Study completed in 2015 to provide a more accurate picture based on changes in the traffic and development impacting the area since 2015. Staff will bring the minutes and the discussion information form the IEDC meeting to the EDA in 2020 for a future discussion and consideration. B. Briggs Apartment Development — Rivertown Residential Suites Update: At the December 9, 2019 City Council meeting, Pat Briggs presented and requested approval of a variety of minor adjustments to the development plans for Rivertown Residential Suites. They plan adjustments included siding location tweaks, sidewalk changes, balcony support features and roofline modifications and retaining wall and screening revisions. The City Council did approve the changes to the plans as requested by Mr. Briggs at the meeting. The EDA attorney was then briefed on the plan adjustments and indicated to staff that the changes were modest and inconsequential in nature with no impacts to unit counts or property valuation estimates or project completing deadline that no amendment to the EDA Development Contract is warranted. C. EDAM Conference — Verbal Update — Economic Development Legislation D. Prospects — See attached A spread sheet with information about the concept stage and active search prospects is attached as Exhibit A. PROSPECT LIST I 2/4/2020 11/12/2016 MN DEED Prospect Metal Mfg. Exist Facility+ Equip 65,000 sq. ft. 0 55-100 $2,500,000 Active Search 11/17/2016 Project Novus v2 Precision Machining New Facility Constr. + Equip 52,000 sq. ft. 200 60 $10,831,000 L01 and TIF App c i„ i,,,,-, «c=on Metal Mfg. New Facility Constr. 60,000 to 70,000 sq. ft. 0 6/26/2017 Project Basil Bio -Ag. New Facility Constr. + Equip 165,000 sq. ft. 0 77 $11,000,000 Active Search I Mf� New Construction 70,000 60 50 $5,900,000 Active Search 10/17/2017 Project Ted Equipment Mfg. New Equipment N/A 45 ? $650,000 Concept Stag 4/3/2018 Project Hawk-FBN Wholesale Dist Facil New Construction 35,000 sq. ft. 17 7 $3,905,000 Active Search 2/12/2019 Project CW2E Retail New Construstion 4,800 sq. ft. 0 ? $2,750,000 Active Search 5/22/2018 Karlsburger Foods Food Products Mfg. Facilty Expansion 20,000 sq. ft. 49 3+/- $2,500,000 Act -Plan -Fin 7/3/2018 Project Synergy Office New Construction 15,000 to 20,000 sq. ft. 15 $3,000,000 Concept Stag 7/18/2018 Project Thunder Metal Mfg. ? ? 30+/- ? Concept Stag 7/30/2018 Project Saturn Plastic Products Mfg. New Construction 5,000 +/- sq. ft. 4+/- $830,000 Active Search 8/10/2018 Project Jupiter Metal Mfg. New Construction 5,000 sq. ft. +/- 3 $800,000 Active Search 6/20/2019 Project Panda v2 Service Existing Building 12,000 sq. ft. 28 $1,100,000 Active Search 11/29/2018 Project Blitzen Precision Machining Exist Bldg or New Const. 12,000 sq. ft. 10 $1,200,000 Concept Stag 12/14/2018 Project Comet Commercial Bus New Const. 1,700 sq. ft. +/- 7 $700,000 Active Search 2/28/2019 Project Mossy Industrial Services New Construction 8,000 to 10,000 sq. ft. N/A 7 $1,200,000 Act Search 3/28/2019 Project Nutt Co -Working Space Existing Building ? ? ? ? Concept Stag 5/9/2019 Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 20+/- $1,400,000 Act Search 8/16/2019 Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Act Search 8/25/2019 Ausco Design Service -Lt Prod. Existing Building 8,000 sq. ft. 4 3 $665,000 Concept Stag 9/19/2019 Project Kata Service New Construction 22,000 to 35,000 sq. ft. 0 25 $7,900,000 Concept Stag 12/3/2019 Project Dancer Light Mfg. New Construction 25,000 Sq. ft. +/- 35 to 37 $2,200,000 Concept Stag Contacts: M = 6 YTD = 6 Imminent site decision expected LOI -= Ltr of Intent; TIF = Tax Inc. Fin. Statement of Progress 2/12/2020 RE: Proposed UMC Campus Expansion CO: Jim Thares, City of Monticello To all concerned, UMC would like to first thank the City of Monticello, it's professional staff and it's elected and appointed officials for their consistent and steadfast support of UMC's growth within the city. This proposed expansion has many moving pieces and has required a great amount of "good faith dealing" between the company and the City if Monticello. Progress has been slow at times, however the complex composition of this potential project has required that diligence. We are grateful for the patience that everyone has exhibited. We have never been closer to finalizing this entire project and we continue to make incremental progress weekly. We have recently accomplished the following: • Monticello Planning Commission Approval of PUD • MNDEED Commitment Letters for state incentives • Easement Vacation application submitted • Letters of Commitment for primary financing • UMC Counsel review of development agreement and local incentive agreement • PUD Agreement for review expected tomorrow. There are many important milestones still ahead for this awesome project, however UMC remains confident and committed to moving towards the realization of their proposed Campus Expansion Project in Monticello. Thank you again for your continued support of this concept and we look forward to celebrating with you all as the project crosses the finish line, bringing new tax base, new jobs and expanding Monticello's footprint in the high-tech manufacturing space. February 7, 2020 The Honorable Brian Stumpf Office of the Mayor City of Monticello 505 Walnut Street Monticello, MN 55362 Dear Mayor Stumpf: I am pleased to inform you that the City of Monticello's application for Minnesota Investment Fund assistance is approved. As outlined in the approved application, the City will make a loan of $300,000 to UMC Inc., for the purchase of machinery and equipment. This award will result in the creation of 43 jobs. If all job and wage goals are met by the Compliance Date the loan will be forgiven. A grant contract is being prepared by staff from DEED's Office of Business Finance. They will also provide you with additional information about your grant award to ensure that the project meets its goals. Please note that no project expenditures or job creation that occurs prior to execution of the grant contract by all parties will be eligible for reimbursement or count toward job creation requirements. To facilitate the timely delivery of this assistance, all contracts and agreements associated with this financing must be completed within 120 days from the date of this letter or the award may be rescinded. For additional information, contact Bob Isaacson, Executive Director, Office of Business Finance, at 651-259-7458. Finally, let me extend my congratulations to you and your staff for developing a successful project application to help fuel your community and economic development growth. Regards, S e rove A"-wt� Commissioner cc: Representative Marion O'Neill Senator Bruce Anderson Jim Thares, Economic Development Manager, City of Monticello Jaci Dukowitz, Chief Operating Officer, UMC Inc. Economic Development Division 1st National Bank Building ' 332 Minnesota Street ■ E200 Saint Paul, MN 55101-1351 651-259-7432 PHONE # 800-657-3858 TOLL FREE ! 651-296-5287 Fax www.mn.gov/deed AN EQUAL OPPORTUNITY EMPLOYER AND SERVICE PROVIDER February 7, 2020 Ms. Jaci Dukowitz Chief Operating Officer UMC Inc. 500 Chelsea Road Monticello, MN 55362 Dear Ms. Dukowitz: I am pleased to inform you that UMC Inc.'s application for Job Creation Fund designation is approved. As outlined in the application, UMC Inc. is expected to have $6,500,000 in eligible capital expenditures and create 60 new jobs. Based on those and other factors, the Department of Employment and Economic Development will provide up to $175,000 in a Job Creation Fund award to UMC Inc. in the form of a job creation award. The contract will have a five (5) year term. To facilitate the timely delivery of this assistance, all contracts and agreements associated with this financing must be completed within 120 days from the date of this letter or the award may be rescinded. A business subsidy agreement is being prepared by the Economic Development Division staff. Please note that no project expenditures or job creation that occurs prior to execution of the business subsidy agreement by all parties will be eligible for rebate or count`toward job creation requirements. Staff will also provide you with additional information on performance goals, reporting and requesting funds. For additional information, contact Tom Washa, Program Administrator, at 651-259-7483 or Drew Lindorfer, Senior Loan Officer, at 651-259-7450. Thank you for your investment and job creation in Minnesota. We are excited about your expansion and look forward to your long-term success. Regards, Z"-V� Steve Grove Commissioner cc: Senator Bruce Anderson Representative Marion O'Neill Jim Thares, Economic Development Manager, City of Monticello Economic Development Division 1st National Bank Building ■ 332 Minnesota Street ■ E200 ■ Saint Paul, MN 55101-1351 651-259-7432 PHON E ■ 800-657-3858 TOLL FREE ■ 651-296-5287 Fax ■ www.mn.gov/deed AN EQUAL OPPORTUNITY EMPLOYERAND SERVICE PROVIDER