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Planning Commission Agenda 04-07-2020AGENDA REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday, April 7th, 2020 - 6:15 p.m. Mississippi Room, Monticello Community Center Commissioners: Sam Murdoff, John Alstad, Paul Konsor, Andrew Tapper, and Alison Zimpfer Council Liaison: Charlotte Gabler Staff: Angela Schumann, Steve Grittman (NAC), Ron Hackenmueller 1. General Business A. Call to Order B. Consideration of approving minutes a. Regular Meeting Minutes — March 2nd, 2020 b. Special/Joint Meeting Minutes — March 2nd, 2020 c. Special/Joint Meeting Minutes — March 9th, 2020 C. Citizen Comments D. Consideration of adding items to the agenda E. Consideration to approve agenda 2. Public Hearings A. Public Hearing — Consideration for Rezoning to Planned Unit Development, Development and Final Stage PUD, Conditional Use Permit, and Text Amendment relating to density for Group Residential Facility, Multi-Family in an R-3 District, and amendment to the use table, Table 5-1 of the Zoning Ordinance Applicant: John and Dawn Rogosheske B. Public Hearing - Consideration of a request for amendment to Conditional Use Permit for detached accessory structure in an A-O (Agriculture/Open Space) District to accommodate an open, covered patio over existing outdoor entertainment space Applicant: Monticello Country Club, Inc. 3. Regular Agenda A. Consideration of the Community Development Directors Report 4. Added Items 5. Adjournment MINUTES REGULAR MEETING - MONTICELLO PLANNING COMMISSION Monday, March 2nd, 2020 - 6:15 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Sam Murdoff, John Alstad, Paul Konsor, Andrew Tapper, and Alison Zimpfer Council Liaison Absent: Charlotte Gabler Staff Present: Angela Schumann, Steve Grittman (NAC), and Ron Hackenmueller 1. General Business A. Call to Order Sam Murdoff called the Regular Meeting of the Planning Commission to order at 6:15 p.m. B. Consideration of approvin� minutes a. Re�ular Meetin� Minutes — Februarv 4th, 2020 JOHN ALSTAD MOVED TO APPROVE THE REGULAR MEETING MINUTES - FEBRUARY 4TH, 2020. PAUL KONSOR SECONDED THE MOTION. MOTION CARRIED, 5-0. b. Special Meetin� Minutes (Joint Meetin�) — Februarv 4th, 2020 ANDREW TAPPER MOVED TO APPROVE THE SPECIAL MEETING MINUTES (JO1NT MEETING) — FEBRUARY 4TH, 2020. ALISON ZIMPFER SECONDED THE MOTION. MOTION CARRIED, 5-0. C. Citizen Comments None. D. Consideration of addin� items to the a�enda Angela Schumann requested taking an informal poll of Planning Commissioner's availability for a follow-up meeting from the Concept Stage PUD Meeting that was held on Monday, March 2. E. Consideration to approve a�enda PAUL KONSOR MOVED TO APPROVE THE AGENDA. ALISON ZIMPFER SECONDED THE MOTION. MOTION CARRIED, 5-0. 2. Public Hearings 3. Regular Agenda A. Chelsea to School Concept Master Plan Update Angela Schumann introduced the item and explained that the Chelsea to School Concept Master Plan was in response to a land use application from the Dale Planning Commission Minutes — February 4th, 2020 Page 1 � 4 Buchholz Construction team. She noted that with the Buchholz land use application, they were granted a Comprehensive Plan Amendment from "Places to Shop" to "Places to Live". Schumann explained that City Planner Steve Grittman developed a Master Plan for the area that has been refined over time with comments. Schumann noted that the concept was brought forward during the Buchholz Development proposal in addition to a joint workshop meeting with the Planning Commission and City Council. Schumann stated that she wanted to provide an update on where staff was at with the concept. Schumann summarized that the area that the study focuses on includes Chelsea Road, School Boulevard, Cedar Street, and Edmonson Avenue. Staff are working with W SB & Associates to understand the feasibility of a regional stormwater management ponding area. Staff are also working with City Planner — Steve Grittman on public spaces including trails and parks. Schumann added that once the study was more formalized, staff would meet with property owners in the vicinity of plan for comment. A joint workshop would also be scheduled with the Planning Commission and City Council. Schumann also noted that in the Visioning Report, it includes the Master Plan as a Preferred Growth Scenario to include the area as a mixed commercial and residential site. Sam Murdoff asked how long it would take for the information to come back to the Planning Commission. Schumann estimated that early summer the findings would be complete. Steve Grittman also added that NAC was working on illustrative pieces for key areas of the planning area. Grittman noted that once final engineering comments are received for the stormwater pond, NAC can develop a plan for the public spaces including the plaza areas and parkway development street improvements. Grittman also explained that when meeting with property owners, they were interested to know how the stormwater management and open space requirements that would affect the development of their property if it were to develop. B. Central Mississippi River Re�ional Plannin� Partnership Update Angela Schumann introduced the item and explained that the Central Mississippi River Regional Planning Partnership (CMRP) replaced the Highway 25 Coalition. The focus on the organization shifted from focusing only on transportation issues and reframed the goals. Schumann explained the staff report including the Framework 2030 document. CMRP hired Planning Next out of Ohio to help understand how to accomplish the goals of the planning area. As part of the website for CMRP, there is a section devoted to FAQs. This was created to help the City and Commissions to be able to answer questions fo the general public. Planning Commission Minutes — February 4th, 2020 Page 2 � 4 Schumann also explained that community engagement would be an important area for the creation of the 2030 plan. Each jurisdiction involved with the CMRP, would be given an engagement kit. The consultants would use the information received along with community plans to create a plan that will help the regional jurisdictions work together. Schumann added that all the meeting agendas and minutes are provided on the CMRP website. Paul Konsor asked if the City is required to be a part of CMRP and if there are any costs involved with membership. Schumann explained that jurisdictions must formally agree through a j oint powers agreement to be involved with CMRP. Schumann added that depending on your jurisdiction (County, City, or Township), there is a tiered approach for cost. Schumann also added that any documents of CMRP would need to be approved by the City Council. She noted that Lloyd Hilgart is a voting member on the CMRP board. She also noted that an Executive Committee exists and is established by the CMRP Board. The representative is Wright County Commissioner Darek Vetsch. Lastly, County and City planning staff are also involved with the organization. Andrew Tapper asked if these meetings were open to the public. Schumann responded that they are public meetings held at the Sherburne County Government Center on the 4th Thursday of every month at 7:30 a.m. The meetings are also recorded and posted on the website. Sam Murdoff asked if the organization plan was for a 10-year projection and involvement from local jurisdictions after the creation of the plan. Schumann responded that the planning process was expected to wrap up in 2021. Each jurisdiction would have to adopt the study and it would be up to the communities how they implement the plan. Schumann also explained that Resolution of Understandings will be delivered to the City Council to keep moving during the planning process. Tapper asked for the long-term plan for CMRP after the study is concluded. Schumann responded that the committee would still be established. John Alstad asked if MnDOT was involved with the organization. Schumann stated that Claudia DuMont was the representative from MnDOT but was not a voting member. Alstad asked about a previous study that the Highway 25 Coalition created that involved several options for a new interchange. Schumann notice that they study was available to CMRP, but it was important to complete the 2030 study before determining a final location of the interchange. C. Consideration of the Communitv Development Directors Report Angela Schumann provided the Community Development Director's Report. She explained in detail the Center for Energy and Environmental report titled Energy Transition Report. She explained that the study is two pieces: qualitative and quantitative. The City has received the qualitative report, with the firm refining the quantitative part of the report. She encouraged the Planning Commission to review the document. Planning Commission Minutes — February 4th, 2020 Page 3 � 4 Paul Konsor asked if the UMC item had any revisions from the City Council level. Schumann noted that the item was pulled from the Consent Agenda to allow the applicant to speak, but no changes from the Planning Commission approval were noted. 4. Added Items Angela Schumann noted that the Concept Stage Planned Unit Development Submittal by Mielke Development needed more time for board comment. The Planning Commission noted that the majority could not make a meeting on Monday, March 9. Schumann would work with the City Council on determining a date and would follow up with the Planning Commission. 5. Adjournment PAUL KONSOR MOVED TO ADJOURN THE MEETING AT 6:45 P.M. ANDREW TAPPER SECONDED THE MOTION. MOTION CARRIED, 5-0. Recorder: Jacob Thunander Approved: April7th, 2020 Attest: Angela Schumann, Community Development Director Planning Commission Minutes — February 4th, 2020 Page 4 � 4 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL & PLANNING COMMISSION Monday, March 2nd, 2020 — 4:30 p.m. Academy Room, Monticello Community Center Council Members Present: Mayor Brian Stumpf, Jim Davidson, Bill Fair, Charlotte Gabler, and Lloyd Hilgart Commissioners Present: Sam Murdoff, John Alstad, Paul Konsor, Alison Zimpfer, and Andrew Tapper Staff Present: Angela Schumann, Steve Grittman (NAC), Ron Hackenmueller, Matthew Leonard, Ryan Melhouse, and Jeff O'Neill 1. General Business A. Call to Order „� Sam Murdoff called the Special Joint Meeting of the Planning Commission and City Council to order at 4:30 p.m. 2. Regular Agenda A. Concept Sta�e PUD: Mielke/Jameson/Malone (48 Unit Townhomes) Applicant: Mielke Development Sam Murdoff introduced the Concept Stage PUD proposal for a 48-unit townhome project. Angela Schumann stated that the submittal was not a formal land use application and no decisions would be made on the submittal. She indicated that the development proposal was unique as it involved City owned parcels. Steve Grittman stated that with PUD proposals, they need to meet or exceed development and land use goals. Grittman discussed the several parcels that were included on the proposal and noted that one parcel, owned by the Jameson family had concerns with access. Grittman explained that the applicant has a series of requests to the City regarding the proposed development of a 48-unit detached villa/townhome proj ect. Grittman added that some of the parcels were guided as "Places for Community" and would need to be amended for "Places to Live". Grittman later stated that the land use was consistent with the expectation for that area. Grittman noted that with a PUD, a zoning district for the proposal would need to be approved. In the original applications, it was noted that a portion of St. Henry's Church would also need to be purchased to facilitate development. Grittman explained in detail a variety of areas when reviewing the submittal, including: land use, cul-de-sac street, pedestrian circle, lot size and site planning park and open space, parking and driveways, fire access, existing park parcel, building architecture, and tree preservation/landscaping. All of these items were noted in detail in the staff report. Planning Commission Minutes (Joint Meeting) — March 2, 2020 Page 1 � 3 Matt Leonard provided a summary of the Engineering Letter submitted by WSB. A majority of the comments involved stormwater management and utilities. Leonard recommended a traffic study for Fallon Avenue. The applicant, Dan Mielke, was invited to discuss the submittal. Mielke stated that the name of the development would be called Territorial Heights. He explained that the development they were looking at constructing would fill a gap that currently exists in Monticello. Mielke discussed a number of unique challenges with the development of each individual parcel, separately. Mielke discussed the layout of the proposal and noted that the area would be under an association. Mielke also presented a preliminary timeline for the project. He anticipated having the final plat approval by the end of June, with construction of model homes in fall. He also anticipated that the project may be phased into a two or three project. He added that grading would occur at one time and be ready for construction. He expected that each unit would range around $350,000. Mielke added that he was working with Jim Thares, Economic Development Manager, to determine a proposed tax increase for the City estimated at $200,000 per year. Mielke presented five requests to the City with the proposal. This information was included in the agenda. Schumann explained that she received a letter from one of the adjacent property owners indicating support for access to 7th Street for this proj ect. The Boards discussed why the proposal was for townhome development over large lot single family. They also discussed the need for community surveys for the marketability of the proj ect. Mielke indicated that he has talked with realtors and this is what people are looking for. Due to timing of the Planning Commission Regular Meeting Murdoff called for a continued meeting at a later date. 3. Adjournment PAUL KONSOR MOVED TO ADJOURN THE MEETING AT 6:07 P.M. ALISON ZIMPFER SECONDED THE MOTION. MOTION CARRIED, 9-0. Recorder: Jacob Thunander Approved: April7th, 2020 Attest: Angela Schumann, Community Development Director Planning Commission Minutes (Joint Meeting) — March 2, 2020 Page 2 � 3 Planning Commission Minutes (Joint Meeting) — March 2, 2020 Page 3 � 3 MINUTES SPECIAL MEETING - MONTICELLO CITY COUNCIL & PLANNING COMMISSION Monday, March 9th, 2020 — 5:00 p.m. Academy Room, Monticello Community Center Council Members Present: Mayor Brian Stumpf, Jim Davidson, Bill Fair, Charlotte Gabler, and Lloyd Hilgart Commissioners Present: Sam Murdoff, John Alstad, Alison Zimpfer, and Andrew Tapper Commissioners Absent: Paul Konsor Staff Present: Angela Schumann, Steve Grittman (NAC), Ron Hackenmueller, Matthew Leonard, Ryan Melhouse, and Jeff O'Neill 1. General Business A. Call to Order „� Sam Murdoff called the Special Joint Meeting of the Planning Commission and City Council to order at 5:00 p.m. 2. Regular Agenda A. Concept Sta�e PUD: Mielke/Jameson/Malone (48 Unit Townhomes) Applicant: Mielke Development Sam Murdoff introduced the continuation of the Concept Stage PUD meeting. Angela Schumann provided a quick summary of the meeting that was previously held on March 2, 2020. She noted that the proposal was unique in that it involved two City owned parcels. She noted that public comment can be taken if desired and time allows, as notice of the meeting was sent to property owners within 350 feet. Dan Mielke, the applicant, reminded the Boards of the proposal and noted that he made some changes based on the comments from the previous meeting. He introduced Shelley Matuska, Edina Realty — Monticello, to speak about the desire for a development such as the proposaL Matuska noted that interested property owners are seeking property north of the interstate for this type of product and that Monticello provides more amenities than neighboring communities. Matuska explained that the need for 3 stall garages or extra storage space is needed. Mielke asked Matuska if the price point was fair. Matuska agreed and stated similar developments are selling units for the same costs. Mielke explained that his proposal would eliminate the access issue that was present for the Jameson parcel and also removes deteriorated homes on the parcels. Bob Mickelson, a Kramer family representative, explained their support for the proj ect and noted that without access or the City working with a developer, litigation was pending. Planning Commission Minutes (Joint Meeting) — March 9, 2020 Page 1 � 2 The Boards discussed advantages and concerns for the proposed proj ect. In summary the Boards acknowledged the proposal has merit, however many commented that the density was tight. They acknowledged that a six-foot side setback was workable. Concerns about the ability to finance the project were also questioned based on the `asks' the developer made to the City, and the developer's capacity to provide all of the required securities for the project. Board members were also concerned with donating public land to a private development where several homes would appear to be for the developer's advantage. The access and streets were also a concern including the width, grade, turning movements, and costs of the streets. A traffic study was recommended for Fallon Avenue traffic projections. In addition, fire access was noted as a concern. Another main discussion point of concern was park land. The developer requested waiving park land dedication fees. The Boards noted the importance of maintaining park dedication requirements and including sidewalks and trail access. Shawn Weinand, property owner in Monticello, presented information relative to the Autumn Ridge Villas proj ect and a concept patio home proj ect as a reference. Schumann noted that public comment letters from the Busch family and the Bluffs apartment complex were received and a part of the agenda packet. 3. Adjournment JOHN ALSTAD MOVED TO ADJOURN THE MEETING AT 6:18 P.M. ALISON ZIMPFER SECONDED THE MOTION. MOTION CARRIED, 9-0. Recorder: Jacob Thunander Approved: April7th, 2020 Attest: Angela Schumann, Community Development Director Planning Commission Minutes (Joint Meeting) — March 9, 2020 Page 2 � 2 Planning Commission Agenda 04/07/2020 2A. Public Hearin� — Consideration for Rezonin� to Planned Unit Development, Development and Final Stage PUD, Conditional Use Permit, and Text Amendment relatin� to densitv for Group Residential Facilitv, Multi-Familv in an R-3 District, and amendment to the use table, Table 5-1 of the Zonin� Ordinance. Applicant: John and Dawn Ro�osheske. (NAC) A. REFERENCE AND BACKGROUND Property: Planning Case Number: Deadline for Decision: Land Use Designation: Legal: Lengthy legal Address: 612 W Sm Street PID: 155-010-0090 2020 - 006 March 22"d, 2020, extended to May 21 st, 2020 Places to Live Zoning Designation: R-3, Medium Density Residence District The purpose of the "R-3" medium density residential district is to provide for medium density housing in multiple family structures ranging up to and including twelve (12) units and directly related, complementary uses Overlays/Environmental Regulations Applicable: Current Site Use: Surrounding Land Uses: North: NA Single Family Group Residential Facility (Serving 6 or fewer residents) Railroad and street right of way East: Multi-family townhome South: Single-family residential /multi-family townhome West: Multi-family residential Project Description: The applicants currently operate a group residential facility on the subj ect property, serving up to six residents with needed services. The residents in the existing facility are developmentally disabled adults with a variety of needs and care. The applicants have a large residential home on a 16,500 square foot parcel. The upper floor of the structure is unfinished at present. The applicants' Planning Commission Agenda 04/07/2020 narrative suggests that they are seeking to finish additional residence rooms to increase facility capacity by an additional6 rooms, or up to 12 residents total. The residents share common area facilities including living space, kitchen and dining space, and other activities space. The proposal would amend the current zoning ordinance language, which does not adequately address state law requirements for such uses in multi-family settings. The state regulations provide that such uses are to be allowed, with the potential that a City may require a Conditional Use Permit. Under the current ordinance, a Group Residential Facilities, Multi-Family use requires a CUP in the R-3 District. BACKGROUND As discussed above, the subject property is in an R-3, Medium Density Residence District. The statutory language applying to such sites (see below) requires that most "group homes" complying with state regulations with between 7 and 16 residents, are permitted uses in the district, with a clause that allows cities to require a CUP when multi-family uses also require a CUP in the district, with similar conditions being legal. However, in the R-3 zoning district, the number of "Dwelling Units" is regulated by units per acre. For group homes such as the one in question, residents occupy separate bedrooms, but share common living, dining, and kitchen spaces. Because the individual bedrooms do not have all requirements of kitchen, living and sanitation spaces separately, they are not considered "dwelling units" for the purposes of the City's zoning density definition. The resulting problem for the City and the applicant is: Knowing that the group home use is allowed as either a permitted or conditional use, how many residents are allowed to reside at the facility? Indeed, the definitions are explicit that group residential facilities are NOT dwelling units as the phrase is used in the ordinance. The paragraphs below summarize applicable zoning allowances relating to this use: R-3 Zonin� District. The R-3 District allows townhouse or multiple family uses to a maximum of 8.5 units per acre as a permitted use. The District allows Group Residential Facilities, Multifamily by Conditional Use Permit. Dwellin� Unit. A dwelling unit is defined as: An area within a structure designed and constructed to be occupied by one family which includes permanent provisions 2 Planning Commission Agenda 04/07/2020 for living, cooking, and sanitation. Dwelling unit does not include hotels, motels, gr�oup residential facilities, correctional facilities, nursing/convalescent home, rehabilitation centers, or other structures designed for transient residence. Group Residential Facilitv, Single Familv is defined as: A state-licensed facility, public or private, which regularly provides a planned combination of living conditions, services, and resources for the treatment, rehabilitation, training, supervision, or care of persons residing on the premises which falls into one of the following categories: 1) a state licensed residential facility serving six or fewer persons; 2) registered housing with services establishment serving six or fewer persons; 3) a licensed day care facility serving 12 or fewer persons, or 4) a gr�oup family day care facility licensed to serve 14 or fewer children. This term does not include any type of residential or non-residential facility for persons convicted of crimes, or for persons accused of crimes who are diverted to the facility before conviction; nor does it include a residential facility whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses. Group Residential Facilities, Multifamilv are defined as: A state-licensed facility, public or private, which regularly provides a planned combination of living conditions, services, and resources for the treatment, rehabilitation, training, supervision, or care of persons residing on the premises which falls into one of the following categories: 1) a state licensed residential facility serving between seven (7) and sixteen (16) persons, or 2) a licensed day care facility serving between thirteen (13) and sixteen (16) persons. This term does not include any type of residential or non-residential facility for persons convicted of crimes, or for persons accused of crimes who are diverted to the facility before conviction; nor does it include a residential facility whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses. Thus, the City's definition is similar to the Statute (see below), for the purposes of this application. It is somewhat more expansive in limiting the application to other tenant categories, which is not technically relevant to this application. State Statute (462.357, Subd. 8): States that licensed residential care facilities serving 7-16 persons are permitted multiple family uses. However, a City can require a CUP if the conditions are no more restrictive than those applied to other conditional residential uses, and/or the conditions are related to the health, safety, and welfare of the residents of the facility. The statute appears to provide that a City may be more accommodating than state law, but may not be more restrictive. Planning Commission Agenda 04/07/2020 State law also requires, in Subd. 7, that licensed residential facilities serving 6 or fewer residents are permitted single family uses, with the only exception being that juvenile sex offenders are not required to be allowed under the single family clause. The current facility, with a maximum of 6 bedrooms/residents, qualifies as Single Family use under the statute. ANALYSIS/OPTIONS There are a variety of options to address the lack of definition as to "density" for this proposed use in the Zoning Ordinance. These options use the ordinance requirements or definitions as a base and are summarized below: Consider each tenant to be a"dwelling unit" for the purposes of density. The district allows just 3.2 units of base density, meaning just 3 tenants would be allowed at this density standard. This approach does not work, since the applicants are already permitted to provide space for 6 tenants under the Group Residential Facility, Single Family rules. 2. Apply a density standard specific to the Group Residential Facility, Multi- Family use standards to the overall building equal to the minimum unit size for assisted living units, which range between 440 and 520 square feet for efficiency and one-bedroom units, respectively. Assisted living is a permitted use in the R-3 District. Under this calculation, the 5,000+ square foot home could potentially accommodate as many as 10 residents. Apply a"person" based density specific to the Group Residential Facility, Multi-Family use standards, factoring in common persons per unit density in multiple family dwellings. This would be approximately 1.4 persons per unit, based on housing surveys and census information. Thus, at 16,500 square feet, the subject property would be allowed 3.2 units under the R-3 density rules, which in this calculation would accommodate 4.5 persons. Like Option 1, this option is inconsistent with the current allowance for Group Residential Facility, Single Family regulations. 4. Apply the PUD standards to the subj ect property, increasing allowable "density" to 12 units per acre. This would increase allowances under option 1 to 4.5 units (4 tenants); or increase the persons under option 3 to 6.5 persons. The applicants included a PUD request option in their application, based on a discussion with City staff. It was recommended only to ensure that the City would have a full range of options going forward, once the analysis was done. It was important not to arrive at a recommendation that would require a PUD, but have to start the application process anew. However, after reviewing the details of the site and request, PUD has the consequence of limiting the occupancy to the current number, based on the Group Residential Facility, Single Family allowances (6 or fewer as permitted uses). � Planning Commission Agenda 04/07/2020 The only method that is close to the "medium density" allowances of the zoning district among these options, is to apply the assisted living standard, option 2. As noted, assisted living is an allowed use in the district, and the uses are very similar — residents living (primarily) singly, in units that are not full dwelling units, relying on common space facilities that are tended by trained staff. The primary difference is the size and scope of the facility — Assisted Living projects generally being of larger size and more "unit" counts. Also to be noted is that the City's ordinance allows, as a"Family", up to 4 unrelated persons in a dwelling unit. For a site and building that could accommodate at least 3 such units given the lot size, up to 12 unrelated persons would legally be permitted to reside on the premises if the building were to be built as a three-plex. The other three approaches do not account for additional residents, even by PUD under the rules of the R-3 District, due to lot size. RECOMMENDED OPTION Staff recommends that the following changes be made to the city's ordinance to address the discrepancy in the code related to unit count and resident density for this use: • Revise Section 5.2 (3)(a) to clarify that the regulations listed within that section pertain specifically to Group Residential Facility, Single Family. Amend the ordinance to remove requirements that would not be applicable to Group Residential Facility, Single-Family. • Revise Section 5.2 (C)(3)(b) to read as follows: (b) Group Residential Facility, Multi-Family (i) Group Residential Facility, Multi-Family shall require authorization through a conditional use permit following the provisions of Section 2.4(D) of this ordinance, and be subject to the following conditions: 1. Density of residents shall equal no more than one person per 520 square feet of total net livable area in the principal dwelling. 2. Living accommodations for on-site resident staff shall be deducted from the principal dwelling square footage for purposes of determining density in (1) above. 3. The property shall be developed to provide 2 off-street parking spaces for staff and one space per 3 residents for visitors. 4. Parking areas shall be paved with concrete or bituminous surface, and shall meet all other standards of parking lot design in this 5 Planning Commission Agenda 04/07/2020 ordinance, with the exception that the use shall be exempt from curb requirements. 5. The property shall maintain a minimum of 30% landscaped green space based on the gross area of the property. 6. The building shall be designed and constructed to be consistent with the architectural character of the neighborhood in which it is located. 7. Applicable Consider the proposed application as a CUP in the R-3 District, based on these standards. • Dismiss processing a PUD or PUD rezoning for this application. CONDITIONAL USE PERMIT The applicants would develop the expanded group residential facility by finishing the existing upstairs level — currently just framed but unoccupied — to create six new bedrooms. Tenants would share the common facilities on the lower level with the existing six bedroom tenants. The applicant should clarify accommodations for staff, whether daytime and/or overnight. The applicant should verify the total square footage of the facility. Site Plan. Driveway/Access/Parking. The applicant has submitted a series of building plans but not a site plan. The aerial photo of the site shows a driveway that circles the building, accessing two garage stalls at the rear of the building. The garage could accommodate the typical staff parking. With additional residents, the applicant should also show a more detailed plan for driveway circulation, and a parking plan for at least 4 visitors off street. Green/Open Space. As noted in the recommended ordinance standards, a minimum green space of at least 30% of the lot area is proposed. The updated site plan should include dimensions and a calculation of green space that demonstrates compliance with this recommendation. For reference, from a rough estimate based on the aerial photograph of the site, it appears that approximately 40% of the site is landscaped green area. B. ALTERNATIVE ACTIONS Decision 1: Ordinance Amendment C� Planning Commission Agenda 04/07/2020 Motion to adopt Resolution PC-2020-011 recommending approval of amendments to the Monticello Zoning Ordinance relating to Group Residential Facilities, based on findings in said resolution. 2. Motion to deny adoption of Resolution PC-2020-011 recommending approval of amendments to the Monticello Zoning Ordinance relating to Group Residential Facilities, based on findings in said resolution. 3. Motion to table for additional information as requested by the Planning Commission. Decision 2: Conditional Use Permit L Motion to adopt Resolution PC-2020-012 recommending approval of a Conditional Use Permit for Group Residential Facility, Multi Family for Lot 8, Block 9, Original Plat of Monticello, 612 Sth Street, based on findings in said resolution and subj ect to the conditions listed in Exhibit Z. 2. Motion to deny adoption of Resolution PC-2020-012 recommending approval of a Conditional Use Permit for Group Residential Facility, Multi Family for Lot 8, Block 9, Original Plat of Monticello, 612 Sth Street, based on findings in said resolution and subj ect to the conditions listed in Exhibit Z 3. Motion to table for additional information as requested by the Planning Commission. C. STAFF RECOMMENDATION Planning staff recommends Alternative 1 for both Decisions 1 and 2, adoption of the proposed amendment establishing Group Residential Facilities, Multifamily, as a Conditional Use in the R-3 District, including the conditions cited in the report (and related amendments that update and correct internal references to this and related uses); as well as for the approval of a Conditional Use Permit for the subj ect property, based on the conditions found in Exhibit Z. The findings in the proposed Resolutions focus on the related impact of the proposed use in the subject zoning district, and the similarity the use would have to other uses current allowed, both as permitted and by Conditional Use Permit. The conditions relate to ensuring that such uses are compatible with the various eligible locations for Group Residential, Multifamily, and ensuring that the introduction of the use in the respective locations will not raise issues with other existing neighboring land uses. D. SUPPORTING DATA 7 Planning Commission Agenda 04/07/2020 A. Resolution PC-2020-011, Zoning Ordinance Amendment B. Resolution PC-2020-012, Conditional Use Permit C. Ordinance No. 7XX, Draft D. Aerial Site Image E. Applicant Narrative F. Applicant Proposed Floor Plan Materials G. Site Images H. Monticello Zoning Ordinance, Excerpts Z. Conditions of Approval EXHIBIT Z Conditions of Approval Rogosheske Conditional Use Permit 612 5th Street Lot 8, Block 9, Original Plat Density of residents shall equal no more than one person per 520 square feet of total net livable area in the principal dwelling. The applicant should confirm compliance with this aspect of the proposed code. 2. Living accommodations for on-site resident staff shall be deducted from the principal dwelling square footage for purposes of determining density in (1) above. Any overnight staff accommodations should be detailed in the building plans to verify this condition. The property shall be developed to provide 2 off-street parking spaces for staff and one space per 3 residents for visitors. The applicants shall submit a site plan that shows compliance with this condition. 4. Parking areas shall be paved with concrete or bituminous surface, and shall meet all other standards of parking lot design in this ordinance, with the exception that the use shall be exempt from curb requirements. The applicants shall submit a site plan that shows compliance with this condition. The property shall maintain a minimum of 30% landscaped green space based on the gross area of the property. The applicants shall submit a site plan that shows compliance with this condition. 6. The building shall be designed and constructed to be consistent with the architectural character of the neighborhood in which it is located. The applicants' building is an existing structure which is similar in character to the existing one- and two-story residences in the immediate area. : Planning Commission Agenda 04/07/2020 Comments of the Building Official, and other staff and Planning Commission. CITY OF MONTICELLO WRIGHT COUNTY, MINNNESOTA PLANNING COMMISSION RESOLUTION NO. PC-2020-011 RECOMMENDING APPROVAL OF AN AMENDMENT TO THE ZONING ORDINANCE TO REVISE THE ALLOWANCES AND STANDARDS RELATING GROUP RESIDENTIAL FACILITIES, MULTI-FAMILY, AND RELATED CODE UPDATES WHEREAS, an applicant has submitted a request to amend the Zoning Ordinance to include address the use and resident population of Group Residential Facilities — Multi-Family; and WHEREAS, the effect of the amendment would be to establish specific standards that are applicable to the proposed use in the Districts in which t use is located, including the R-3 District; and WHEREAS, the State of Minnesota has specific statutory requirements related to Group Residential Facilities for both Single Family and Multi-Family uses; and WHEREAS, the proposed amendment would incorporate those State requirements into the City's zoning ordinance; and WHEREAS, the proposed Zoning Ordinance Amendment would add clarity to the incorporation of the use where it is required to be allowed by statute; and WHEREAS, the Planning Commission held a public hearing on April7th, 2020 on the application and the applicant and members of the public were provided the opportunity to present information to the Planning Commission; and WHEREAS, the Planning Commission has considered all of the comments and the staff report, which are incorporated by reference into the resolution; and WHEREAS, the Planning Commission of the City of Monticello makes the following Findings of Fact in relation to the recommendation of approval: 1. The Zoning Ordinance amendment provides an appropriate means of furthering both the intent and the specific goals and policies for land use in the Comprehensive Plan. 2. The proposed use raises no extraordinary issues for the City's regulation of Group Residential Facilities. 3. The ordinance incorporates applicable provisions of State law and regulation regarding such uses, thus providing a protection for the public and for the residents and operators of such facilities. 4. The proposed use is expected to have no negative impacts on municipal public services. CITY OF MONTICELLO WRIGHT COUNTY, MINNNESOTA PLANNING COMMISSION RESOLUTION NO. PC-2020-011 NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of Monticello, Minnesota, that the Planning Commission hereby recommends that the Monticello City Council approves the Zoning Ordinance amendment, based on the findings listed above. ADOPTED this 7m day of April, 2020, by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING CONINIISSION : ATTEST: Sam Murdoff, Chair Angela Schumann, Community Development Director 2 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC-2020-012 RECOMMENDING APPROVAL OF A CONDITIONAL USE PERMIT FOR A GROUP RESIDENTIAL FACILITY, MULTI-FAMILY, IN AN R-3, MEDIUM DENSITY RESIDENCE DISTRICT, ADDRESS: 612 W 5TH STREET PID: 155-010-0090 WHEREAS, the applicant has submitted a request to remodel an existing Group Residential Facility to accommodate additional adult residents; and WHEREAS, the site is zoned Medium Density Residence District (R-3) and, which allows such use by Conditional Use Permit; and WHEREAS, the proposed use and development are consistent with the Comprehensive Land Use Plan designation of "Places to Live" for the area; and WHEREAS, the applicants have provided materials documenting the proposed layout of the improvements to the existing building; and WHEREAS, the exterior dimensions of the proposed building will not be affected by the proposed remodeling; and WHEREAS, the additional residents will result in a total occupancy of the building that is similar to other allowed uses in the R-3 District, including Assisted Living or Medium Density Residential; and WHEREAS, the residents are under the care of staff and are not likely to significantly increase traffic in the neighborhood; and WHEREAS, the Planning Commission held a public hearing on April7th, 2020 on the application and the applicant and members of the public were provided the opportunity to present information to the Planning Commission; and WHEREAS, the Planning Commission has considered all of the comments and the staff report, which are incorporated by reference into the resolution; and WHEREAS, the Planning Commission of the City of Monticello makes the following Findings of Fact in relation to the recommendation of approval: 1. The applicant has provided building plans that, subject to review by the City's Building Department, will demonstrate adequate compliance with various applicably Zoning Ordinance, Fire Code and Building Code requirements. CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC-2020-012 2. The applicant can provide adequate site plan documentation of compliance with the relevant aspects of the City's Zoning regulations related to Group Residential Facilities, Multi-Family. 3. The building is a large structure which will accommodate the proposed use without crowding the subject property or neighboring parcels. 4. The site appears adequate to accommodate vehicular traffic and parking as well as open space and other requirements to accommodate the use. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of Monticello, Minnesota, that the Planning Commission hereby recommends that the Monticello City Council approve the Conditional Use Permit for a Group Residential Facility, Multi-Family, subj ect to the conditions identified in Exhibit Z of the Staff report, as listed below: Density of residents shall equal no more than one person per 520 square feet of total net livable area in the principal dwelling. The applicant should confirm compliance with this aspect of the proposed code. 2. Living accommodations for on-site resident staff shall be deducted from the principal dwelling square footage for purposes of determining density in (1) above. Any overnight staff accommodations should be detailed in the building plans to verify this condition. The property shall be developed to provide 2 off-street parking spaces for staff and one space per 3 residents for visitors. The applicants shall submit a site plan that shows compliance with this condition. 4. Parking areas shall be paved with concrete or bituminous surface, and shall meet all other standards of parking lot design in this ordinance, with the exception that the use shall be exempt from curb requirements. The applicants shall submit a site plan that shows compliance with this condition. The property shall maintain a minimum of 30% landscaped green space based on the gross area of the property. The applicants shall submit a site plan that shows compliance with this condition. 6. The building shall be designed and constructed to be consistent with the architectural character of the neighborhood in which it is located. The applicants' building is an existing structure which is similar in character to the existing one- and two-story residences in the immediate area. 7. Comments of the Building Official, and other staff and Planning Commission. 2 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC-2020-012 ADOPTED this 7m day of April, 2020 by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING CONINIISSION By: Sam Murdoff, Chair ATTEST: Angela Schumann, Community Development Director CITY OF MONTICELLO COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING THE CITY OF MONTICELLO ZONING ORDINANCE WITHIN THE CITY OF MONTICELLO, CHAPTER --, SECTION 1 AND RELATED SECTIONS, DEFINING AND REGULATING GROUP RESIDENTIAL FACILITIES, MULTIFAMILY, AND AMENDING RELATED STANDARDS AND DEFINITIONS THE CITY COUNCIL OF THE CITY OF MONTICELLO ORDAINS: Section 1. Section 5.2 (C)(3)(b) — Regulations for Residential Uses, Group Residential Facility, Multi-Family, is hereby amended to read as follows: (b) Group Residential Facility, Multi-Family (i) Group Residential Facility, Multi-Family shall require authorization through a conditional use permit following the provisions of Section 2.4(D) of this ordinance, subj ect to the followin� conditions: 1. Densitv of residents shall equal no more than one person per 520 square feet of total net livable area in the principal dwellin�. 2. Livin� accommodations for on-site resident staff shall be deducted from the principal dwelling square foota�e for purposes of determinin� densit.��l) above. 3. The propertv shall be developed to provide 2 off-street parkin� spaces for staff and one space per 3 residents for visitors. ��` 4. Parkin� areas shall be paved with concrete or bituminous surface, � and shall meet all other standards of parkin� lot desi�n in this ordinance, with the exception that the use shall be exempt from curb requirements. 5. The propertv shall maintain a minimum of 30% landscaped rg een space based on the �ross area of the propert� 6. The buildin� shall be desi�ned and constructed to be consistent with the architectural character of the nei�hborhood in which it is located. Section 2. Section 52 (C)(3)(a) — Regulations for Group Residential Facility — Licensed Daycare - is hereby amended to read as follows: (a) Licensed day care facilities qualifying as group residential facilities shall adhere to the following: (i) No overnight facilities are provided for the children served. Children are delivered and removed daily. l;;l A .�o..,,.,�o .,�� ,-oo� ,�.,,-1�;,,.. .,,,.� ., .;.�o.� ; ,�1;.,,,..o . �;�1, Co..�;.,,, � 4 .,��1,;� .,,-.a;,,.,,,..o l;;;l A.�o..,,.,�o .,�� ,-oo� 1.,.,.�;,,.. .,,,.� � „�,-.,,,..o� ., .;.�o.� ; l;�.l Tl,o �;�o .,,,.� ,-ol.,�o.� ,,.,,-1�;,,.. .,,,.� � �l,.,ll l.o � o.� 1.�, ., .,,-�o,-;.,1 .,llo..�.,,- ��,-oo� .,� �„��;..;o„� .. ..;��, �., ., .,.�.,�o �l,o �,-.,��.. .,�1,;..1, �;11 l.o .. ,-.,�o.� l.o ; ,,1;.,,,..o . �;�1, Co..�;.,,, � G .,��1,;� .,,-.�;,,.,,,..o {�} ii All state laws and statutes governing such use are strictly adhered to and all required operating permits are secured. Section 3. Section 8.4 - Definitions is hereby amended to read as follows: GROUP RESIDENTIAL FACILITY, MULTIFAMILY: A state-licensed facility, public or private, which regularly provides a planned combination of living conditions, services, and resources for the treatment, rehabilitation, training supervision, or care of persons residing on the premises which falls into one of the following categories: 1) a state licensed residential facility serving between seven (7) and sixteen (16) persons, or 2) a licensed day care facility serving between thirteen (13) and sixteen (16) persons. This term does not include any type of residential or non-residential facility for persons convicted of crimes, or for persons accused of crimes who are diverted to the facility before conviction; nor does it include a residential facility whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses. Section 4. Section 8.4 — Definitions is hereby amended to add the following: DWELLING LJNIT: An area within a structure designed and constructed to be occupied by one family which includes permanent provisions for living cooking and sanitation. Dwelling unit does not include hotels, motels, �r ��'��*��' � ��'�*��, correctional facilities, nursing/convalescent home, rehabilitation centers, or other structures designed for transient residence. In Group Residential Facilities, Multi- Familv, each separate bedroom, combined with all common areas up to 520 square feet of �ross buildin� floor area shall be considered one potential dwellin� unit for purposes of calculatin� dwellin� unit densitv on a multi-famil�parcel. 2 Section 5. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intended effect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section 6. This Ordinance shall take effect and be in full force from and after its passage and publication. The ordinance in its entirety shall be posted on the City website after publication. Copies of the complete Ordinance are available online and at Monticello City Hall for examination upon request. ATTEST: Brian Stumpf, Mayor Jeff O'Neill, Administrator AYES: NAYS: o ,�� , .;,� , , �,A r , � .• .0 4 �� '�- '4 •s - , �r .. � � ��f �r , C �+ � � o � ' � ' r ., ' � ' f. - . �. � ` : ' y' _ 4., / .L .. ,, � �� . � .. �� "� �I' � t + � '�N+ -.. � 4 : � �! P� . � � � � � `� � �`'`-�. � � � � ; If ' �' � `�°� � � � � r � • �� , � �.� ,x�;. ls� -, ,,� � ;� � � �-� �� ' �"�b�y `'�'� , � . '��- . *r � ..� . � , . �`'�'' � � �; � � ' p • b �., .. _ � � . . . � ; .. f, � F Q , � ��,_, a f;, , . y: { -�. � ..� 4 N . •.' �, '� r� � F , � � � h, � ,,o� :+ # , � ." 4' ' � � �� . a � `' . s- ` � ' � � �� ' � � Y ' if1 '" '�. , i �f3 -�, � �� + b �,. . � � � � t � � � +t -LS . , �� ., , � �. � �� d0� '�w �" ' �r.�,, � � � � � � �,� �; � - 3N ' - � � � , �, y �, � � � .� ¢ ;: N � � . � . ` ,r � f'. � � • . � �., V' ` '�"` ; �� , , � ' ..:' � {�� k {1' � � ' '� , � �^ � I � � t. 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"� • ,�� r ;�, y ��,y� *�•_ �- • � ii � �/`�..iF:�i2 �" ., i .� ,�...,.. 'Y _ � ''�'�.�Yfi�;c� St. Andrews House St. Andrews house is licensed by the MN Department of Human Services that provides a supervised environment for adults that are unable to live independently due to a debilitating physical or mental condition since 2007. St. Andrews has staff on shift 24 hours a day to assist any client with their activities of daily living. Unlike larger corporations we pride ourselves with a family-type environment that keeps the clients at ease and safe. Presently living at St. Andrews is 4 clients that have their own bedroom. There is a total of 6 bedrooms on the main level. The clients share common space areas. The common areas consist of 2 living rooms, 2 kitchens, and 2 laundry rooms. Presently square footage is 3,200. St. Andrews offers to keep older adults connected to their home communities when they no longer have the independence to do it themselves. Some of the services St. Andrew provides are assisting the individual with daily personal care, aiding in daily recreational or vocational activities, providing transportation to medical appointments, shopping, and recreational activities, preparing and serving meals and dispensing medications. With the expansion there will be no change to the services being provided. The next stage for St. Andrews is to become an Assisted Living facility and stop Adult Foster Care. Home and Community Based Services Designation license (HWS) will be applied for. To accomplish this the addition that is already in existence, would need to be finished. We will be adding 6 more bed rooms and another living room for new clients which would increase the square footage by 2,900. The only exterior change would be a deck added to the upper level to the garage for a fire escape. We will also be receiving a new license for Temporary Comprehensive Home Care. This license will allow St. Andrews to provide Assisted Living. We already have a system in place with 14 employees, operation will stay the same since 2007. 1 full time employee and 13 part time employees. We presently have 2-3 staff on from 8am to 8pm. We have 1 staff on from 8pm to 6am. Service is provided 24/7. Canstructic�n af a rec�ues[ for comple�i[�n of upper lever in the lZ-3, M�i��n Density Residen�e I]istric-t �or G I2 StY€ Stre�[ West. Applicant: Rt�gasheske, 3Qhn and Da��vn �'�-o�� 61'' ��' ��c� �i��t `i1�� s€� �s l�caied saa�� f �`�` �tr�t �e�t ��tvsree� ?��:��;�t� �d �i�e ��ree�s. '�h� ��"'�; Fs ��°�.��d os� t�� arf-�� y t�ie ��,T�� r�it I�� and s��e �a�;i�3� �esi�:��ti� �ses. �'c �;�� 6�at��., ea.�t a�d ��. th� s�te �s ��rd�rred 3�y mti �%um �e�ity resgd�'�a� uses. �,A ��.�.�� .�:�� '�: �.�q�esi��: �ie�e�� v.� ��o �� s� ��teQ��ar�. Va�ia�c� T� �Il�a�`�r ��ant y�r� �Su;�c#.�� s�back I�ss tks�r� 34 fe�t. May 21, Z020 Hc�usin� for elderfy and dgsabled �ni�tg ��s��. I�-3,1vle.d�u� tJ�nsi�u ��side�ce I3istr�� . �e ��.�pase �f �e �-3; I�Iedi� ��r��iiy Residentia� �istrtce }s �a prp��.d� fc�r rr��diu.m ��si�y �a�i�g i� ��ta�;?� k�rai�y s�.��es ��?g �x� � a�d �.cl��g t�vel�e ��?� �ts ar�� c��c€�� r��a�i, c�zx�p?e�xer.�ary ��50 Ca�re�� e �Js�: �adi�d'€B&€��a�g �,�1�1 �JS�Se 1�arYh: �t: Sou;h� �est: �n� si��, is �ccupie�l �y �. zr�e��n r�en�ii� r�side�tial d�VE��a� ��L�L'�E �t��t;EL Ca?'� �C9�2��- 5�r��.� �a��i� �.e;�d�t�� di�s �3��si�y ��s��e�€�� ed�-� �e�.s�ty �csicient=.`�� N�edi�u� �7��s�ty �esi�e��a� �-�� sc��: Finish canstructior3 rrn upper le�c;l wiCh 6 bedroorr�s in foster care har€ae St Andrews is an AFC. It is for our clients, like living in a home. One to four adults with disabilities and seniors live together in the house, each with their own bedroom. The living rooms, bathrooms, kitchens, and any other rooms are shared. A caregiver also is present in the house that is there 24/7 to provide services to the clients. We like to pride ourselves on the quality of care we provide to our clients. We take them to their doctor appointments and many community events from St. Cloud to Rogers. We like to keep older adults connected to their home communities when they no longer have the independence to do it themselves. Our overall plan is to finish the addition above the main facility and to increase capacity for a total of 10 clients. St. Andrews house already falls under Housing Support (formerly Group Residential Housing) as Adult Foster Care. Also under Housing Support is Board and Lodge, Supervised living facilities, Boarding Care Homes and Housing with Services establishments. We are unsure of what Monticello's policies are for the above services. We are in the planning stages and would like the recommendation of what would best fit in Monticello. St. Andrew's Home Dawn Rogosheske, RN Provider/Owner Cell: 612-963-5412 Alt- Wyett Rogosheske: 612-963-2355 St. Andrews Home Phone: 763-295-6001 Fax: 763-295-6001 *Please Note to Call the Group Home Before Sending Fax 612 5th Street, Monticello, MN 55362 � �' . �.r . r ,• ea:�• ��`��'� �' S�B� i'#3�i� t L � � • � � � � e l��tll� �ra�■■�s■�•■■s■�ri�� s F18Ce s � �� ' � � ; � �. � 4 � � � � � � � � t S � � � i � t � � P � � ! i 3 �silif��#F■s�•� g j � ( � ' � � �� t ; q � � ��i5 � '_�� ,, � � ~ $ s F � � 1 � • � � €. _ ��, D �. i C=3�C� � � ; � �� s .;�} � � o ,. .v �.�� -- �! } � i ��i 0 � } i s � � � � S � _�� e i $ : � � x�* � � � � t'} � ] � I� i � �3 E i �a'�. s.. �v � '' ■ � it . . 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W I "�. ..f �,,yyT� N �' i � �z `hr �y. ;. k .' �' S �k. + � 1. �, � � � �f"-.V�" `�y f� t � 1�"" � �... �'�`^'" �, 'S Y �9�f�' i n'>� 1 a" <��i�� i �i'r"' � T' f .� , �-. '-u„ ' � �L 1�' , 6:;7�"i'�Y i i q 4 '� `� �,e� �`�'`�`96' Lc l�x H : �� r� � �� ,� ��...' c�� b��-� '�'�`� a�' .z a . . � . . `+ �' C � 5� ��e c �p. �� , . tb � �I� Y:S' �f� �� ` yk ,u'.a q�'�� .` �� ; '' , r. �. .k�'�t.a � r " "t �,f,x b ✓: " `'� � � s�, � -� '� �",�".r.tl�e@ -� � �:. -��.'r :y.�-' . ' .. � _. ��.. �: �'� �'.. � ..,..... �:�<..y� *"�- c . �'. eHAPrE� s: usE sraNDAaas Section 5. I Use Table �ubsection (A) F�cplanation of Use Table Structure � � . .- . � -. �.. . . . . -. -. • . -. Residential Uses 5.2(Cl( I 1 Attached Dwelling Types 5.2(Cl(21(al - Duplex p C 5.2(Cl(21(bl - Townhouse C p 5.2(Cl(21(cl - Multiple-Family C P C C 5.2(Cl(21(dl Detached Dwelling p p p p p p None Group Residential P P P P P 5 2(C1(31 Facility, Single Family Group Residential C C C 5.2(Cl(31 Facility, Multi-Family Mobile & Manufactured C C C P C 5.2(C1(41 Home / Home Park Civic & Institutional Uses Active Park Facilities P P P P P P P P P P P P p p p None (public) Active Park Facilities P P P P P P P 5 2(D1(11 (private) Assisted Living Facilities C P C C P 5•2(Dl(21 Cemeteries C C C C C C C 5•2(Dl(31 Clinics/Medical Services C p p C None Essential Services p p p p p p p p p p p p p p p None Hospitals C p" p C 5.2(D1(41 Nursing/Convalescent C C C C C C C C C P P 5.2(Dl(5l Home Passenger Terminal C C C C None Passive Parks and Open P P P P P P P P P P P P p p p None Space Place of Public Assembly C C C C C p C 5.2(D)(6) Public Buildings or Uses C C C C C C C P C C P P C P P 5•2(Dl(7l Schools, K-12 C C C C C C � � 5.2(Dl(81 Schools, Higher Education None C Utilities (major) C C C 5.2(D1(91 �.,fijs Cr) tr'it�i7t3CCBBi7 zUiifi'P� �ide7r3liraiz� i'sa��-� .�:�:7 C��i`E� 3: i15� Si��fi��t�C35 Section 5.2 Use-Speci fic Standards ��absection (C) Regulations for Residential Uses (iii) Private driveways for garages in townhouse developments shall provide a minimum of twenty (20) feet worth of parking space which does not interfere with the use of public sidewalks or trails. (iv) Setbacks: 1. Buildings in townhouse developments shall be located at least twenty (20) feet apart and twenty (20) feet from the back ofthe curb of a private roadway. 2. The applicable setbacks required in the underlying zoning district shall be met along the perimeter lot lines of the development and along all public roadways. (d) Multiple Family (i) Development of a multiple family building shall be compatible with the existing and planned land use of the area and conflicts shall not be created between commercial and residential use and activities. (ii) If in the R-2 district, multiple family buildings shall be limited to four dwelling units. (iii) If in the B-2 District, multiple family buildings shall be adequately served by a collector or arterial street. (iv) If in the B-1, B-2 or CCD district, multiple family units shall be in the form of apartments or condominiums located above the first floor of the building, unless otherwise authorized to be on the first floor by a conditional use permit meeting the following additional standards: 1. The proposed site for residential use is consistent with the goals and obj ectives of the Downtown Revitalization Plan. 2. The proposed site does not interrupt the flow of commercial pedestrian traffic in the "CCD" district. 3. Density for ground floor residential units shall not exceed one unit per 9,000 square feet of lot area, exclusive of land area utilized by, or required for, permitted uses on the property. (v) Multiple family housing in the R-3, B-1, B-2 or CCD zoning districts shall be subject to the requirements found in Table 3-8 of Chapter 3.4 of this Ordinance. (vi) Multiple family housing in the R-4 zoning district shall be subject to the requirements found in Table 3-9 of Chapter 3.4 ofthis Ordinance. (3) Group Residential Facility (a) Licensed day care facilities qualifying as group residential facilities shall adhere to the following: Ci�y t�� Iv`i'nUcedlo �on�rr� Urc�irtaa�c:r h��; .��.� �f-t�P�� : 115� S°1`.�P�fCi��i�S Section 52 Use-Speci fic Standards Subsection (C) Regulations for Residential Us�=, (i) No overnight facilities are provided for the children served. Children are delivered and removed daily. (ii) Adequate off-street parking and access is provided in compliance with Section 4.8 ofthis ordinance. (iii) Adequate off-street loading and service entrances are provided in compliance with Section 4.9 of this ordinance. (iv) The site and related parking and service shall be served by an arterial or collector street of sufficient capacity to accommodate the traffic which will be generated. (v) All signing and informational or visual communication devices shall be in compliance with Section 4.5 of this ordinance. (vi) All state laws and statutes governing such use are strictly adhered to and all required operating permits are secured. (b) Group Residential Facility, Multi-Family (i) Group Residential Facility, Multi-Family shall require authorization through a conditional use permit following the provisions of Section 2.4(D) ofthis ordinance. (4) Manufactured Homes / Manufactured Home Park (a) Manufactured Homes in General All manufactured homes within the City of Monticello shall be built in conformance with the manufactured home building code and comply with all provisions of this ordinance. (b) Manufactured Home Parks Development of new manufactured home parks shall be encouraged to use the planned unit development (PUD) process to allow the City to vary or modify the strict application and requirements for manufactured home parks to more readily accommodate this type of development. However, absent development through a PUD, the following requirements shall apply: (i) In General: 1. The minimum total manufactured home park area shall be five acres. 2. Each designated mobile home site shall not be less than 2,500 sf. 3. Notwithstanding the type of development concept used, the maximum density shall be thirteen (13) manufactured homes per acre. 4. Manufactured homes shall be the only permitted dwelling type in a manufactured home park. �'�� City e�j iYiontieeiso �onrr�g �rcr'inan�e �`,��"�� .�� I�ii�i�%i5 `}� ��F ;x� 8.4 De finitions ��section (B) Lots DREDGING: To enlarge or clean out a water body, watercourse, or wetland. DRIPLINE: A vertical line that e�tends from the outermost branches of a tree's canopy to the ground around the circumference of the tree. DRIVE-THROUGH SERVICE: A building opening, including windows, doors, or mechanical devices, through which occupants of a motor vehicle receive or obtain a product or service. DUMPSTER: A container that has a hooking mechanism that permits it to be raised and dumped into a sanitation truck or be hauled away for emptying. DWELLING: A building or portion thereof designated exclusively for residential occupancy, including one-family, two-family, and multiple family dwellings, but not including hotels, motels, and boarding houses. DWELLING, ATTACHED: A structure intended for occupancy by more than one family, including duplexes, townhomes, multi-family dwellings, apartments, and condominiums. Accessory dwelling units as defined and permitted by this ordinance are incidental to a principal dwelling unit and are not considered to be attached dwellings. DWELLING, DUPLEX OR TWO-FAMILY: Any building that contains two separate dwelling units with separation either horizontal or vertical on one lot that is used, intended, or designed to be built, used, rented, leased, let or hired out to be occupied, or occupied for living purposes. DWELLING, SINGLE FAMILY DETACHED: Any building that contains one dwelling unit used, intended, or designed to be guilt, used, rented, leased, let or hired out to be occupied, or occupied for living purposes by one (1) family. DWELLING, MULTIPLE FAMILY: A building designed with three (3) or more dwelling units exclusively for occupancy by three (3) or more families living independently of each other but sharing hallways and main entrances and exits. DWELLING iTNIT: An area within a structure designed and constructed to be occupied by one family which includes permanent provisions for living, cooking, and sanitation. Dwelling unit does not include hotels, motels, group residential facilities, correctional facilities, nursing/convalescent home, rehabilitation centers, or other structures designed for transient residence. City a� i��nt�ceiio Coning'ir�in�nc� Ir��€; �'r � �`�� f �� i��`�i�t�� `}� ��F ;x� 8.4 De finitions ��section (B) Lots GARAGE SALE: The sale of miscellaneous used items commonly associated with residential use. Garage sales shall not be for the sale of primarily a single commodity. The term "garage sale" includes "sidewalk sale," "yard sale," "basement sale," and "estate sale." GENERAL WAREHOUSING: Structures used for the storage or distribution of goods where there is no sale of items to retailers or the general public unless permitted as an accessory use to the warehouse. GRADING: Excavation or fill of material, including the resulting conditions thereof. GRADING, DRAINAGE AND EROSION CONTROL PERMIT : A permit issued by the municipality for the construction or alteration of the ground and for the improvements and structures for the control of erosion, runoff, and grading. Herein after referred to as "Grading Permit". GRADING, DRAINAGE AND EROSION CONTROL PLANS: A set of plans prepared by or under the direction of a licensed professional engineer. Plans are required to indicate the specific measures and sequencing to be used to control grading, sediment and erosion on a development site during and after construction as detailed in the City of Monticello "Plan Requirements and Design Guidelines". GREENHOUSE/CONSERVATORY: A structure, primarily of glass, in which temperature and humidity can be controlled for the cultivation or protection of plants GROUP RESIDENTIAL FACILITY, SINGLE FAMILY: A state-licensed facility, public or private, which regularly provides a planned combination of living conditions, services, and resources for the treatment, rehabilitation, training, supervision, or care of persons residing on the premises which falls into one ofthe following categories: 1) a state licensed residential facility serving six or fewer persons; 2) registered housing with services establishment serving six or fewer persons; 3) a licensed day care facility serving 12 or fewer persons, or 4) a group family day care facility licensed to serve 14 or fewer children. This term does not include any type of residential or non-residential facility for persons convicted of crimes, or for persons accused of crimes who are diverted to the facility before conviction; nor does it include a residential facility whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses. GROUP RESIDENTIAL FACILITY, MULTIFAMILY: A state-licensed facility, public or private, which regularly provides a planned combination of living conditions, services, and resources for the treatment, rehabilitation, training, supervision, or care of persons residing on City a� i��nt�eeiio Coning'ir�in�ne� Ir��; �� t-i��;�� a :�� Section 8.4 De f�=�=°�a.r. � m� Subsection (B) L��:ry; the premises which falls into one ofthe following categories: 1) a state licensed residential facility serving between seven (7) and si�teen (16) persons, or 2) a licensed day care facility serving between thirteen (13) and si�teen (16) persons. This term does not include any type of residential or non-residential facility for persons convicted of crimes, or for persons accused of crimes who are diverted to the facility before conviction; nor does it include a residential facility whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses. GROWLER: A 64 fluid ounce (1.891iter) container of beer that is made available for purchase at the brewery where it's produced. Said container is available for off-sale consumption only. HELIPORT: An area used or intended to be used for the landing and takeoff of helicopters, and may include any or all of the areas of buildings appropriate to accomplish these functions HEAVY INDUSTRIAL USE (see "HEAVYMANUFACTURING') HIGH RISK TREE: Any tree with structural defects sufficient to render the tree or part of the tree likely to fail and cause damage to persons, property, or other significant vegetation, as determined by a qualified arborist or other tree professional. HOME OCCUPATION: An occupation carried on in a dwelling unit by the resident thereof; provided that the use is limited in extent and incidental and secondary to the use of the dwelling unit for residential purposes and does not change the character thereof. HOOP BUII,DING (see also "tarp garage'): A portable or permanently anchored structure defined mainly by a steel or PVC frame over which a cover made from plastic, tarp, or other similar type fabrics or materials is placed. HOSPITAL: A facility providing medical, psychiatric, or Hoop Building � � .- "-� surgical services for sick or injured persons primarily on an �-- - 4 u � inpatient basis, including ancillary facilities for outpatient and emergency treatment, diagnostic services, training, research, and administration, and services to patients, employees, or visitors. IMPERVIOUS SURFACE: A constructed hard surface that either prevents or retards the entry of water into the soil and causes water to run off the surface in greater quantities and at an increased rate of flow than existed prior to development. 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O� ,�' , p,� � ' '� .�'�.� U � � �� Q�c�� Planning Commission Agenda 04/07/2020 2B. Public Hearin� —Consideration of a request for amendment to Conditional Use Permit for detached accessorv structure in an A-O (A�riculture/Open Space) District to accommodate an open, covered patio over existin� outdoor entertainment space. Applicant: Monticello Countrv Club, Inc. A. REFERENCE AND BACKGROUND Property: Planning Case Number: Deadline for Decision: Legal: Lengthy legal Address: 1209 Golf Course Road PID: 155-030-000010, 155-500-033300, 155-500-034301, 155-500-101202, 155-500-101204,155-500-101205, 155-500-102101 2020 - 008 March 22"d, 2020, extended to May 21 st, 2020 The applicant has requested tabling of this item and continuation of the hearing until the regular May meeting of the Planning Commission. B. ALTERNATIVE ACTIONS Motion to table action on the request and continue the hearing to the May Stn 2020 regular meeting of the Planning Commission. 2. Motion of other. Planning Commission Agenda - 4/07/20 3A. Communitv Development Director's Report CO-VID 19 City of Monticello Information Resource: https://www.ci.monticello.mn.us/covidl9 Council Action on Commission Recommendations • Kjellberg/Twin Pines/Monticello Business Center 7th Addition The applicant requested an extension to their required application deadline for Final Stage PUD/Final Plat. The zoning ordinance requires application within 60 days of approval for Final Stage PUD/Final Plat. Council approved a si.�month extension to August 27�h, 2020 as part of their consent agenda action on March 23''d 2020. • Monticello School District The School District sought an adjustment to their PUD to create additional parking along the high school's rear access drive near the baseball field and tennis courts. School also requested to install native landscaping on both the high school and Little Mountain sites. Applicant: GLT Architects/Monticello School District Council unanimously approved the adjustment on the consent agenda on March 23''d 2020. Project Updates • Kjellberg West Manufactured Home Park Parcel Combination/Rezoning/Annexation: The City has requested that the applicant address remaining conditions of approval. At that time, the annexation, rezoning and lot combination can be filed with the state and county recorder. • Deephaven: The developer continues to work on preparation and submission of plans meeting all conditions of approval. The developer has until Apri122"a 2020 to file their final plat or request a plat filing extension from the City Council. Correspondence with the developer indicates an intent to commence construction in 2020. • Haven Ridge: The developer continues to work on addressing final plan comments. In recent communication, the developer has indicated their intent to commence grading in 2020 for the first addition of the proj ect. The annexation will be sent to the state at the time the plat is ready to be recorded, the developer has executed their development contract, and has provided all required securities. Planning Commission Agenda - 4/07/20 Central Mississippi River Regional Planning Partnership Over the next few weeks, Round One of regional community engagement for Framework 2030 will begin, with adjustments for the pandemic response. The purpose of Round One is to gather big-picture ideas about the future of the region through interactive, open- ended activities. The Planning Commission members should expect to receive a survey within the next 2 weeks asking for their specific perspective on regional topics. Monticello 2040 Comprehensive Plan Work has begun on the Land Use chapter of the Monticello 2040 Comprehensive Plan. It is still planned for the Technical Advisory Committee to receive the first draft of information for review and comment in early to mid-April. Stakeholder sessions and a community workshop were also scheduled for mid-April to review preliminary data and strategies. With the stay-at-home order, staff is working with the Lakota Group to re- envision community engagement for the first draft of information. Safe Routes to School (SRTS) The City of Monticello has received a SRTS Engineering Study grant for continued work on the Safe Routes to School initiative in Monticello. The Monticello Engineering Study will look specifically at the School Boulevard corridor between Fenning and Fallon Avenue. The study is intended to identify projects to improve walking and biking safety in this corridor. The study will act as an initial feasibility report for corridor improvements for which the City can then apply for SRTS Infrastructure Improvement grant funds. City staff, along with the School District and MnDOT's selected consultant, SRF, have already begun work on the study. The study is scheduled to conclude in late 2020. Resident engagement activities are planned and more information will be provided as the proj ect progresses. Industrial Land Absorption and Demand Report In late February, the EDA approved an Industrial Land Absorption and Demand Study as a component of its 2019 Economic Development Services Contract with WSB. The report provides information regarding industrial land needs over the next 15 to 20 years as the City begins the process of updating its Comprehensive Plan. It offers community market information, a history of land absorption for commercial industrial properties in Monticello and scenarios of maintaining tax base valuation to replace Xcel's Monticello Nuclear Generating Plant when it decommissions in 20 years. Also included in the report is a prospective timeline in which the EDA and City would need to continue to actively support industrial development. Several available sites are presented as potential future industrial development parks along with preliminary cost estimates of acquiring land, infrastructure costs, and grading work components. A copy of this report is included for reference. 2 �r ■■■ ■r�■r ■�■■ ■r■r� ■■■■ ■r■r ■■■■ ■►■r ■■■■ ■►■► ■■■■ ■►■► ci�Y oF -� �%�1t1Cf' O INDUSTRIAL LAN� ABSC]RPTIC�N & DEMAI� D STIJ DY Ado�ted bythe City of Monticello Econorrnic Development Authority - February 2C, 202fl wsb I a�a�� ui <:;orit�r�ts Introduction:.......................................................................................................................... 1 Pu rpo se . .. .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. ... . .. ... .. .. .. .. .. .. .. .. .. .. . .. ... . .. ... .. .. .. .. .. .. .. .. .. .. . .. ... .. .. .. .. .. ..1 CommunityBackground .........................................................................................................................1 CurrentEmployers .................................................................................................................................1 City Economic Development Efforts ......................................................................................................2 Fiber Optic Capabilities and Resources ................................................................................................ 2 Recent Development History .................................................................................................................3 TaxBase ................................................................................................................................................ 4 Industrial Land Use & Zoning .............................................................................................. 7 IndustrialZoning ....................................................................................................................................7 CurrentIndustrial Parks ......................................................................................................................... 7 Economic Development Market Overview .......................................................................... 8 NationalTrends ......................................................................................................................................8 RegionalTrends ..................................................................................................................................... 9 LocalTrends ........................................................................................................................................12 IndustrialLand Demand ......................................................................................................15 Commercial/Industrial Land Demand ..................................................................................................15 Projected Demand Needs and Methodology .......................................................................................15 Existing and Future Industrial Infrastructure .....................................................................16 Ability to serve new sites-areas ...........................................................................................................16 Estimated Timeline for new Industrial Park development ....................................................................17 �� il�lanticello 2 '11�,/S b Industrial Development Funding Sources .........................................................................18 State Funding Sources Local Funding Sources 18 18 Recommendations...............................................................................................................19 Tax Base Generation Potential Future Industrial Park Locations 19 19 InfrastructureMaps .............................................................................................................24 PlanningMaps .....................................................................................................................29 � Mantieello 3 '11�� b Introduction: Purpose The City cantinues 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 (I-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 I-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 (formerly K-Mart), 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 emplayment base even e�vhen 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 °� Mantieello 1 '11�+��b 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 Products/Services Employee Code Count 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 h�s taken a pro�ctive approach to its economic development efforts in bu�iness 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 f�otably, the City has made strategic investments in fiber optic service ofiferings for the business community with the development of the FiberNet system. This fiber network was developed by the City to allow for the provisian of high-speed broadband access for businesses. The system is operated by Arvig °� Mantieello 2 '11�+��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: Dalheimer8everage � Photo: UMC Precision Manufacturing °r Mantieello 3 '11�� b Tax Base Monticello has taken a proactive approach to a�sessing and diversifying it� t�x 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 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 in the table below are the top 15 taxpayers within the City of Monticello from 2016 to 2018 as well as their tax capacity impact on the City. The tax capacity shown is based on its taxable market value multiplied by its class rate. 2018 Northern States $16,294,278 Power Co Iret Properties $295,132 Mills Fleet Farm $251,524 Wal-Mart $196,510 Target Corp Monti-Big Lake Community Hospital Home Depot Clear Creek Land Company Monti-Big Lake Community Hospital Spirit Master Funding AX TC Retail Centerpoint Energy Tapper's Holdings LLC WSI Industries SCF RC Funding IV LLC Monticello's To4al Tax Capacity Northern States I Power Co Percent of Total Tax Capacity Northern States Power Co Iret Properties Wal-Mart Target Corp $195,510 Monti-Big Lake Community Hospital $145,440 Home Depot $127,190 �_ Mills Fleet Farm $119,976 f Minnegasco Inc $109,980 $102,515 $101,634 $95,184 $77,638 $77,252 $73,250 $29;528, i =�� 55.18% Spirit Master Funding AX TC Retail Centerpoint Energy Tapper's Holdings LLC Anderson Companies LLC BBF Properties Bluffs in Monticello LLC 2017 2016 $16,970,092 Northern States Power $15,913,229 Co $295,132 Wal-Mart $206,950 $202,950 Target Corp $200,250 $199,250 Monti-Big Lake $146,880 Community Hospital $145,440 Home Depot $131,450 $129,280 Spirit Master Funding $102,521 $128,368 AXTC Retail $101,626 $102,521 Minnegasco Inc $78,294 � $101,626 $81,858 Tapper's Holdings LLC $77,636 � WSI Industries $77,252 $77,252 ^ Iret Properties $75,782 $77,636 RCE Property LLC $73,250 $73,250 BBF Properties I $71,558 $70,318 ' UMC Real Estate $66,250 $69,224 BfVSF Railway Company �63,676 $27,583,164 61.52% �25,891,898 61.46% r Mantieello 4 '11�+�� b TAX DISTRIBUTION ■ City ■ County School District Other 30% � ;,�; The total net tax capacity for 2018 was $29,528,145. The City collects approximately 30% of that amount results in $8,858,443 being collected by the City. In the same year Xcel had a tax capacity of $4,888,283 which amounted to 55% of the City's total annual tax base in 2018. Xcel taxes paid figure has been decreasing since 2016 due to changes in the formula 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. Northern States Power Company Tax Analysis 2018 Total Tax City Percent of the Total Taxes 2018 Total Taxes Tax Capacity that the City Receives Paid to City $29,528,145 30% $8,858,443 2018 Total Xcel Tax Capacity $16,294,278 Portion of Xcel Taxes Paid to City 30% 2018 Xcel City Tax Capacity $4,888,283 Percent of Xcel Taxes to Total Taxes Paid 55% If the Xcel facility is decommissioned in 2040, the City will need to have replaced $4,888,283 in tax capacity, or an additional $244,414 in taxes payable per year between now and 2040 in order to maintain its current funding levels. This level of funding is based on the City not increasing services, no inflationary pressures or any increases in market value of its 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. °� Mantieello 5 '11�+��b A local example of successful economic development would be the Bondhus Corporation expansion which in 2018 had an estimated market value of $1,359,900 and after expansion in 2019 saw its value increase to $2,078,400, an increase of $718,500. Taxes payable for that parcel rose from $36,138 in 2018 to $39,134.00 in 2019, an increase of $2,996. Another example is the IRET Property which in 2016 had a taxes payable of $34,496 and upon full development of a 202 unit multifamily apartment project, resulted in taxes payable in 2019 of $276,410, an increase in tax revenue of $241,914 in tax revenue. 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. °� Mantieello 6 '11��b Industrial Land Use & Zoning Industrial Zoning The City's current zoning ordinance identifies three variations of industrial base zoning districts. Those include Industrial and Business Campus District (IBC), Light Industrial District (I-1), and Heavy Industrial District (I-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 "I-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 "I-2" Heavy Industrial District's purpose is to provide forthe 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 I-1 or I-2. Current Industrial Parks The City's most recent industrial park, Otter Creek Business Park, is zoned primarily I-1 with a single parcel zoned I-2. The business park is located south of I-94 with interchange access to I-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 45 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 several 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 a new public works facility on an 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 I-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, Wha Tools USA, Aroplax Corporation, Westlund Distributing, Washburn Computer Group, Production Stamping, and Dakota Supply Group. °� Mantieello 7 '11�+��b 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. At the same time, 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. °� Mantieello 8 '11�+��b 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 WA M� MT HO ,� OR MM � �HH IO SU 1NI r . ..�' �`' �J IA P� r� —0 F1Y NE �N OH Mp - OE � .. WV C4 MO VA �� KY NG TN At N� �K �� R � MS kL �A T3[ ' ~ � � FL ' HI �, �' �� i . –a� awa 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. �� Montieello 9 1N5 � 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 of improving the region's economic competitiveness. 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 pasitive economic trajectorr�. `�ti-�nual Gros: �,rrnual Ja?� �tv�� b5;�s Paying = ��=�age Gep: ��ployment r�c.�:�nal Produc� �ravvth !�}��ekly W�gc� Family ?;�:�te — of cc�lar •.<<� White—of Gr�dvth Sustaining {Aged 16-64� Colc�r (Aged 1�- V�lage 64) �.2% 1.�°la $1,1�2 ?1.�"l0 66.7% £3.6% Peer Rank 11 Peer Rank 9 Peer Rank 6 Peer Rank 1 Peer Rank 5 Peer Rank 11 N�i Mi�ar��i� � �: �:a��V��t��.:-� i��rn�l� �,rfr.ti� ��:��;� ��;..�, ,��V��ti� r :?�� 1r��lati�s� �?�-�_ 3�� Y�� a�;��, �-mployed �� '�6-64� �°`�:�r�; �opula�i�� G��th t�ssacE�� with a Advanced Warking Aged 16-54 Degree or Bachelor's Industries +Narking Higher Degree or Higher +7,837 People 10.1% 77.3°la ?6.8% a2.0°10 41.7°!a P�'E?f Rc`�r,le f :�cani" �!�41�' � `'--'^c[" F;? i�E;; "' `'::; :" f�?�n� ^ n , G� RIiC :� P��f R� Ec .� w,:�. �� _ `„tin�uf�� ;apita9 �xpcaris I��ued Per Busines�� Enfir�p��neur �ur�;fving :a `%'�a�s 1,000 Under$1UI in Establishments Workers Revenue $708M $1J.1B 1.66 $892M 9,336 54.4% Peer Rank 11 Peer Rank 8 Peer Rank 6 Peer Rank � Peer Rank 12 Peer Rank 2 r'� „�=��lation ,,�e �� Number of � s;su��:� ��, � �t��dian Home Cost Burden�,! >:��°�r��al Ch�rr,J�; CJbese Violent Crimes Who �urchase Price Househalds in Median Gommitted Per Volunteered A�ar�ment Rent 100k Residents Last Year 26.0°l0 283 49.1 % $273,4�70 29.7% 4.8% Peer R�nk 4 Peer Rank 2 Peer Rank 1 Peer Rank 5 Peer Rank 2 Peer Rank 7 �� il�lanticello 10 '11�+/S b 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 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 wesUnorthwest 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 WesUNorthwest's office warehouse vacancy rate dropped from 7% to 5.75%. After the large amount of multi-tenant construction completed in the WesUNorthwest 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. fNO�J�TRI#�L A�TIVITY {+GDM��NE[3 SING�� & MULTI-TENANT] ! �dlE# � :. ".-- _ �.:- ~� � � I � I ;T', 5pUT1�,4�:5T I �# , � __'�"`� � � --� -- '—.._.. _... _. � ._, _ .._ .,.,o h C�RTHEAS"f � I _. i i .. � 5� � I I : , 5T. t�Allu :� EN.ST �-... � � AI RP�?f2T r' SOUTi-I O�f iFi.E RIVER w A.IRPORT i SDUTM OF THE aIVER Undcr Ccansiru�tion: 1 Frslcn I°3J,GC�� 5F �Of i��^[C�'� I'1 ��4: r NORTHEAST Undcr C�ans�ruction: 1 f'roject I b7.Q00 5F C4rnpleted in 2d14: � Prajceks I 2i1p,0{]D SF Sd U3�1 W�ST Undcr C�nsiru�tian_ 5 PrajecMs �$15,Q00 SF Crar�pleted in �019: 1 f�raject I 136,50C] SF ST. PAL1L EAST Un�er Canstructian: 0 Campteted dn 2Q19: 2 Prsajects I�46.BOQ SF WEST I NORTH1�1E5T J�der Canstruct cr: 4�'��ctts I?TG.78(} �� Camp€eted �n 20t�: 1 Praje�t I 262.$b� SF °� Mantieello 11 '11�+��b Local Trends Qtter Creek Business P�rk was developed by the City of f161onticello in the e�rly 2000� 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 I-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 I-94, relatively easy access to I-94 via MNTH#25 about 1.5 miles 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. °� Mantieello 12 '11�+/�b The City of Monticello and �! Monticello Economic �i Development Authority (known � at that time as the Monticello k. 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 easUwest collector, Chelsea Road. � � ,� i �h'�i � + i � , ;�..Y ��=� I. �� w i � � i � •� 4� . e� i v Ti ; ��'. ,, , � �. :r, '�tl � '� � , � '� + r � , ',� �. : �� .,,, �'p� '.' ' � ', �, ' r� wy rt � � 4fi � ` s , � ��,'� �, •i,, � �I � �� i ; S x�.LTh�.�`� ; �^'• 41 � � �' �,� w �. ,� � � ,,. . '� , � � .,.. ,� `� • � - . ti� ' ��.� � � �;,`\. .�,� '� f �� (* V� � �� ; `\ .. 4..r �" ;,�:� ,�a�',+ `,, ,,� . . . 1 r.4 , � ��.. � " ' I'^ � � , i�a -� .:� ��;'-', �+K",� • � � '; *. S . ,ti . . � � r� ��, �,��.� ., � � ?.� � '�� ,�'j . �,�'� � � }' �,,� � i.�-'y"a� '' ri�'��:�� ', � � ri'+he: S'`�ia .~: 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 'h 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 prospective 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 staff, 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 I-2 sites may not be suitable or desirable for companies that do not need outside storage and among those that have been the recent target market for the City. � � � .,. .,�� .. � 15.52.23.0000.10 5.3 15.51.94.0000.20 6.7 15.51,7� .QQQ0.50 41.8 (approx. 14 acre� wetland 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 alangside land area, indicates that developments that seek or require outside storage °� Mantieello 13 '�1�+/�b areas do not typically create the number ofjobs 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. °� Mantieello 14 '11�+��b 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. ��r� Han�usi � 1. � � 2Q14 Aldi's 2.{�Q Goodwill 2.64 2015 Mattress Firm �.93 64wik Trip 2e23 2016 Auto Zone 1.73 �alheirr��r �everag� 6.2� Aspen Dental 1.13 LaMont Retail 0.75 Camping World 1.5� Sherburne State ��nk �.�9 2017 �urnham Mini-Storag� 6.2� Dental Clinic 1.65 Red Rooster Q,1Q Mills Fleet Farrn 20.� 20�8 T�vin City Staffing 1.�2 ��ndus Expan�i�r� �.76 Nf�on MotorSports 1.4� Ryan Auto 5.Q0 Tatal Commercial Acreage Absorbed: 53.Q0 Total Industrial Acreage Absorbed: 6.96 Average Acreage Absorbed/Ye�r: 5.24 Average Acreage Absorbed/Year: 1.16 The above projects do not include the current prospects 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 getting commitments from these prospects, 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. °� Mantieello 15 '�1�+/�b Existing and Future Industrial Infrastructure In identifying potential 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 because 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 neerv industrial park �rvill have varied access to public utilities (sanitary sewer, �rvater, 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. Wthout 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. °� Mantieello 16 '�1�+/�b Estimated Timeline for new Industrial Park development Based on the curr�nt rate of abs�rption ancl the projected d�mancl for industri�l space �rithin 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. °� Mantieello 17 '11�+��b 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 approaching 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 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. °� Mantieello 18 '�1�+/�b 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. Preferably, the additional tax income would 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 2040. 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 ta wark" 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 park. ,�� Manticello 19 '�+�� 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 developm, could be used for large scale industri<< development. The site has access to 25 which has an existing full access interchange onto I-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 to get the entirety af th�; site within the city's municipal boundary underthe 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 roadwa�r estimates are based on connection from those existing utilities. Wth this location, there would be concern regarding additional truck traffic on the already congested TH25 corridor. � � �: r � �� `� � ;�ecessary Estimated Cost �istance from Site Estimated Cost to yrrfrastructure P�r Linear Foo� (ft) E�end Utilities �anitary S�w�r �175 1,240 $210,00� Water Main �� 1,2QG �96,000 Urban Ro�d��ys ,�350 1,200 ��20,000 � U� r , , . ' ; �. � � � ��:� � . ,,�,_. � . .a ,,.,. .. . � �� ,...�� Feet fc�ofi Acq uire 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: $2,648,330 *Cost to acquire is based on 2019 assessed value plus 10% °� Mantieello 20 '11�+��b Site 2 is located west of Interstate 94 and north of County Road 39. The property is currently guided as "Interchange Planning Area" by the City's existing Comprehensive Plan. The properties represent approximately 188 gross acres of land are identified by PID's 213100043100 and 233100044200. The properties access onto Cameron Ave NE which intersects with County Road 39. County Road 39 extends and crosses over I-94 - with the crossing being a � �� . �-` •" ,� � grade separated crossing. �,� �,, �`=�t � Construction of exit/entrance �`'�-'�'`� �`., � � � � ramps that provide direct � ��'t �ti-__ ��_ __�_ _ _ ,��r� � i �` ` access onto I-94 would be a � • --:� � �_,�� benefit to the site and better ,1 ,� "` � � ' � �- support added , �' � _ _ .� � r _ ". commercial/industrial ,--., - � development for this area. 4 The closest utilities to this site are on the west side of Interstate 94 are located at the intersection of Chelsea Road ---- and County Road 39 ,. �s4 �-� � `�� _. _�� _ �\��-� r � �' �,��"`. \4 �r�' �� 1 r�` .� Linear Fc�c�i (f�} utilities S�nitary Sevver $17� 6,004 $1,050,000 Water Main $80 6,OOCi $480,OOd Urban Roadways �:�� ,�?(�£� $2,1Q0,000 -��,�� _. � ._ . �� , � �;�, . ., . � , � -� u=.;.. � � W-�ti` � _ ., w W .I, .< . �.ti �a; r _, , . .�, � iz. , ,.... � PID 2131000431�� 5,712,89� $�J.16 4 $906,290 PID 21310004420�? 2,476,435 $i3.14 $334,950 Estimated Total: $4,931,240 �Cost to acquire is based on 2019 assessed value plus 10% °� Mantieello 21 '11�+/�b Site 3: The City has guided land for "Interchange Planning Area" 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, 213200324403, 213100051103, 213100051100, and 213100042202. The properties access onto 120th Street NE extends and crosses over I-94. The crossing at I-94 is an elevated crossing and would likely require the construction of exit/entrance ramps to support added commercial/industrial development. The addition of exit and entrance ramps onto I-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 3 if utilizing existing roadways as the utility alignment. This would represent a significant investment but would bring city services to approximately 325 acres (which includes "site two" that could then also be developed in accordance with the City's comprehensive plan. ��am.s�, �!��:. : �� •�, �� ; -•,s�1,. � t� �� :.• 11� . l�9�c�ss�r� I€��€�;�i��L��a�� stimated Ca�;i ��:: ��«�i��Lc� �rt�rn :��L� �stif�7ad�d Cost io Em�t�!�d Linear Foat (ft) Utilities Sanitary Seuver $175 1,10�J $1,925,OOQ Water Main $80 1,'I �Q $88,000 Urban Roadways $35J - - Jacking under Int�rs4ti=�te $3�0 1,C��() �350,QO�J �"I�;).�" y�,.`I f,� I� �.�'j..i'..i m�',� �L.. �fa':.j . , �=v � v � �. ..� . . � �c"ej ,�n,.�;wa� �. �.. �'...:TI �...�t��.� . .� . �,�,ti .�t"7.t ,,s��, ' `c i,:`"��' ';�L.,�W �.� ! �:'we.li[� PID 2132003244i�0 1,738,915 $�7.13 $224,620 PID 213200324301 910,404 �0.18 $164,230 PID 213200324403 �6,213 $2.35 $202,%30 PID 21.3100051103 252,713 �1.06 $268,400 PID 213100051100 715,255 �O.i4 $103,29Q PID 2131Q00422Q2 '1,185,267 �0.15 $183,92Q Estimated Tot�l: �3,612,190 *�ost to �cquire is b�sed on 2019 �ss�ssed eralue plus 10°la °� Mantieello 22 '11�+��b The City should further evaluate the three potential sites as well as the Otter Creek Business Park expansion area through community engagement process with the completion and updating of the city's comprehensive plan. 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