EDA Agenda 05-27-2020AGENDA
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, May 27th, 2020 — 7:00 a.m.
Remote Meeting via Go-To on your computer, tablet or smartphone
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Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon
Morphew, Tracy Hinz, 011ie Koropchak-White and Councilmembers
Lloyd Hilgart and Jim Davidson
Staff: Executive Director Jim Thares, Jeff O'Neill, Angela Schumann, Sarah Rathlisberger and
Jacob Thunander
1. Call to Order
2. Roll Call
3. Consideration of additional agenda items
4. Consent Agenda
None
5. Consideration of Housing Study RFQ-RFP submittals and Authorization to enter into
negotiations for a Contract for Services with most qualified, preferred Vendor
6. Consideration of Creating an Emergency Small Business Financial Assistance Program
7. Director's Report
8. Closed Session — Consideration of pending litigation pursuant to Minnesota Statute 13D.05,
Subdivision 3(c)(3)
Address: 3880 Chelsea Road West; PID: 155-253-001010
9. Adj ourn
EDA Agenda: 5/27/20
5. Consideration of Housin� Studv RFQ-RFP submittals and authorization to ne�otiate
and enter into contract for services with the most pualified, preferred vendor (JT)
A. REFERENCE AND BACKGROUND:
The EDA is being asked to review the housing study RFQ-RFP (Request for Qualification-
Request for Proposals) and select the most qualified and preferred submittal and further
authorize staff to negotiate and entering into a contract for services to complete the study in
the stated timeframe (late August 2020).
At the May 13, 2020 meeting the EDA took action to table this item to allow more review
and additional discussion about the proposals. For this meeting the EDA is being provided a
the RFQ-RFP submittals and is being asked to decide if now is still the time to move forward
with the Study and if so, select the proposal that best meets the RFQ-RFP objectives and
demonstrates the capability to effectively work with stakeholders and City staff to complete
the report by the requested deadline (late August 2020). It should be noted that the EDA's
review and selection process of the submittals is following the attached state statute regarding
public and non-public data as it pertains to RFPs.
As a reminder the EDA authorized solicitation of RFQ-RFP submittals at its March 11, 2020
meeting. The EDA also identified completing an update of the housing study that was last
completed in late 2017 as part of its 2020 Work Plan (see Exhibit B, page 4, "Goal -
Supporting Life Cycle Housing").
Five completed RFQ-RFP submittals were received by the deadline of April 28, 2020. They
are shown below by company name in alphabetical order:
1. Bowen National Research, Pickerington, OH
2. Maxfield Research, Minneapolis, MN
3. MSA Professional Services, St. Paul, MN
4. Widseth, Rochester, MN
5. WSB & Associates, Golden Valley, MN
Al. STAFF IMPACT: Staff involved in the Housing Study RFQ-RFP preparation,
solicitation and submittal review process includes the Community Development Director,
Community and Economic Development Coordinator and Economic Development Manager.
No additional staff is needed to complete the tasks related to this item.
A2. BUDGET IMPACT: The budget impact from considering the Housing Study RFQ-
RFP submittals and entering into a contract for professional service with a selected vendor is
was budgeted at approximately $18,000 in the 2020 EDA budget. While, the received quotes
fall in a range both above and below this figure, staff believe the study can be completed for
the $18,000 amount that was budgeted in the Miscellaneous Professional Services line item.
B. ALTERNATIVE ACTIONS:
L Motion to select a qualified and preferred vendor and authorize
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EDA Agenda: 5/27/20
negotiating and entering into a contract for services with the selected firm
to complete the 2020 Comprehensive Housing Needs and Market
Demand Study.
2. Motion to deny authorizing selection of a qualified and preferred vendor and negotiating
and entering into a contract for services with the selected firm to complete the 2020
Comprehensive Housing Needs and Market Demand Study.
3. Motion to table consideration of selecting a qualified and preferred vendor and negotiating
and authorizing entering into a contract for services with the selected firm to complete the
2020 Comprehensive Housing Needs and Market Demand Study for further research and/or
discussion.
C. STAFF RECOMMENDATION:
Staff will defer to the EDA decision regarding moving ahead with completing the Housing
Study. It is believed though that even in this unique time of COVID-19, it may be helpful to
have more information about the City's housing needs and market demand in the various
subsectors. The Study will provide data driven indicators that will be useful in discussions
with prospective housing developers. It is also valuable information that can be used to
inform the completion of the City comprehensive planning update process known as
Monticello 2040. The comprehensive plan process is occurring right now and expected to
conclude at the end of 2020.
The EDA received RFQ-RFP submittal packets from five qualified and experienced firms.
The quotes fall in a range both above and below the $18,000 that was budgeted for
completion of the study in the 2020 EDA General Fund budget.
SUPPORTING DATA:
A. RFQ-RFP Solicitation Document
B. 2020 EDA Work Plan
C. Public Data - RFPs
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CITY C�1F
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Request for Qualifications and Proposals
Comprehensive Housing Study
City of Monticello EDA
Revised submittal schedule and completion timeline
March 20, 2020
General Instructions
Responses are to be submitted with complete information per the following request.
Qualification submittals are to be submitted as a self-contained document separate from the
Proposal submittal.
Electronic copy or mailed copy can be accepted at the following address until the deadline
date and time:
City of Monticello
Attn: Jim Thares
505 Walnut Street, Suite 1
Monticello, MN 55362
Email: Jim.Thares(cr�,ci.monticello.mn.us
Schedule
March 12th, 2020 — Request for Qualifications/Proposals (RFQ/RFP) available
April 28th, 2020 — Qualifications/Proposals due at 1:30 p.m.
Mayl3th, 2020 (Tentative Date) — EDA selects firm(s)
August 17th, 2020 — Completion of Housing Study
Purpose of the RFQ/RFP
This Request for Qualifications-Request for Proposals (RFQ/RFP) is for the purpose of
selecting a qualified firm(s) for their approach in formulating and completing a
comprehensive Housing Needs and Market Demand Study for the City of Monticello
Economic Development Authority (EDA). Any professional service agreements to complete
the proposed work at the agreed upon price(s) will be executed and funded through the
Monticello EDA.
In 2017, the Monticello EDA adopted a Housing Study developed by WSB & Associates.
The 2017 study is attached as a resource only. The EDA's goal from the new study is to gain
a clearer understanding of housing demand in various market segments and geographic areas
of the community, layering analysis with data.
Due to the increased interest and demand for multi-family housing options, the City of
Monticello is hereby accepting proposals for a comprehensive Housing Needs and Market
Demand Study. Since 2017, the City approved two multi-family residential facilities with a
total of 143 units. There are two more multi-family proposals with 247 units that have
recently received land use approvals. In addition, the City continues to receive developer
inquiries regarding multi-family housing proposals. The City also recently approved a 327-
lot single family and townhome subdivision within its annexation area.
The successful firm authorized to proceed with the Housing Needs and Market Demand
Study will be responsible for conducting their own on-site research. City staff will provide
reference documents and studies that may be requested as a supportive step in the research.
Specifications for the Qualification Submittal
All Qualification submissions are to include the following components.
1. Project Overview
a. Proposal Understanding: include a summary of the consultant's understanding of
the project as described in this request and approach to project completion
2. Qualifications
a. General Information: provide a brief overview of firm, including qualifications to
execute the contract
b. Personal Qualifications:
i. Identification of lead proj ect manager and contact information
ii. Name, proposed role, hourly rate, anticipated time commitment to the
project, and biography of each team member
3. References
a. Include a list of at least three municipal clients for which consultant
has conducted a similar work scope
Specifications of the Proposal Submittal
Proposed Work Plan and Schedule: provide a proposed work plan divided into distinct
phases and including a list of key tasks, milestones, appro�mate dates, project
deliverables and resource needs
2. Budget: identify cost estimates for each segment of the scope of services and work plan.
a. Staff and public meetings (include anticipated number)
b. Plan research, drafting and revision (include anticipated number and any
consulting staff review)
c. Stakeholder session
d. Production of final document(s)
e. Any other anticipated budgetary needs including incidentals
3. Baseline Project Requirements: at a minimum, the project should address the following
quantitative and qualitative components.
Quantitative Data:
• Local and regional demand for all housing types, including but not limited to the
following specific types:
o Single Family
■ Upper-end/custom ($450,000+)
■ Detached townhome/single-level "patio" home
■ Narrow-lot single-family
o Multi-Family
■ Market-rate apartments
■ Townhomes
■ Duplex
■ Condominium units
■ 4-plex units
o Senior
■ Independent
■ Assisted
■ Continuum of care
• Examination of demand for affordable units as a sub-set of the above, with exception
of upper-end single-family
• Sales and turnover rate of all housing types
• Vacancy data for rental units
• Average market value for each owner-occupied unit type
• Average rental rates for each rental unit type
• Regional comparison data for cities of Becker, Big Lake, St. Michael and Albertville,
as examples
Qualitative Analysis:
Stakeholder Session
• Sales position
• Trends
• Siting factors and considerations
Projections and Analysis
• Identification of gaps and opportunities in existing housing stock.
• Projected data for a five to seven-year outlook for the various market segments.
• Demographic shifts impacting housing trends and proj ections.
• Wage, building cost, and other factors influencing housing.
• What does the data tell us about the opportunity for:
■ Upper-scale/luxury housing in the Downtown?
■ Upper-end single-family housing
• What does the data tell us about the sale quality and the ability to maintain and
improve existing 1940s-1970s core-city housing stock?
• What does the data tell us about the need for additional multi-family units,
specifically affordable or workforce units?
Right to Reject Proposals
The City and Economic Development Authority reserves the right to reject any and all proposals.
This RFP does not obligate the City to enter into a contract, nor does it obligate the City to pay
for any costs incurred in preparation and submission of proposals or in anticipation of a contract.
CITY OF
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MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
2020 ANNUAL ECONOMIC DEVELOPMENT WORK PLAN
EDA Purpose:
The EDA is charged with coordinating and administering the City of Monticello's economic
development and redevelopment plans and programs. The EDA is also responsible for housing
and housing redevelopment.
EDA Work Plan Mission Statement:
The EDA's work plan is adopted in support of achieving the goals of the Monticello
Comprehensive Plan and the 2017/2018 City Strategic Plan. The EDA will be proactive by
developing and undertaking actions for achievement of the Comprehensive Plan's Economic
Development goals and will be reactive in responding to economic development opportunities as
they arise in the most timely and effective manner possible. The EDA shall utilize the economic
development strategies of the Comprehensive Plan, including the Downtown Small Area Plan as
a guide for action.
Comprehensive Plan Goals:
Attracting & Retaining Jobs
Expanding Tax Base
Enhancing Downtown
Facilitating Redevelopment
Supporting Life-Cycle Housing Choice
GOAL(S): FACILITATING REDEVELOPMENT
Objective: Continue to support redevelopment efforts for publicly-owned properties on
Block 52.
Strategies:
1. Continue to focus on site control for a potential future targeted redevelopment in Block 52 as
envisioned in the Downtown Small Area Study Plan.
2. Continue to collaborate with Beard Group, Inc. in the design of a redevelopment plan
suitable for the Block 52 site(s).
3. Reconnect Walnut Street to River Street in support of redevelopment.
4. Remain open to strategic opportunities for redevelopment throughout the community.
5. Refocus on aggressively marketing Block 34 and the CedarBroadway site.
GOAL(S): ENHANCING DOWNTOWN
EXPANDING TAX BASE
SUPPORTING LIFE-CYCLE HOUSING CHOICE
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Objective 1: Implement the recommendations of the Downtown Small Area Plan.
Strategies:
1. Support and advocate for improvements to the downtown as envisioned in the Small Area
Plan and Walnut Street Corridor Plan.
2. Develop and support the appropriate policies, programs, and incentives that enable the type
of development described in the Plan.
3. Continue to build a funding base for use in property acquisition and redevelopment efforts in
targeted areas.
4. Implement a fa�ade improvement program for desired revitalization areas.
5. Continue to meet with downtown property owners either in either an informal group setting
(Downtown Rounds) or individually to understand their concerns with traffic, parking, land
use and possible reinvestment in their property as well as willingness to sell, partner, price,
etc.
6. Encourage continued incorporation of arts as an economic development tool for powntown
Monticello and the community at-large.
7. Support opportunities for park and pathway development as consistent with the Downtown
Small Area Plan.
8. Encourage the redesign of the pathway connection under the MN TH #25 bridge to
incorporate safety elements and improved lighting.
9. Ensure greenway and pedestrian/cycle connections are considered within the downtown and
from the downtown to other areas within the community.
2 � �"���:
Objective 2: Develop and implement a comprehensive Marketing & Communication
Strategy for priority sectors and locations.
Strategies:
1. Engage a marketing intern to design and implement the Marketing & Communication
Strategy in concert with the Communications Manager and Economic Development
Manager.
2. Support the development of an economic development brand and implement in all sectors of
economic development activities.
3. Enhance the brand and tell the story of Downtown Monticello.
4. Incorporate the marketing of EDA incentive programs in a more proactive manner, both
within the community and beyond,
a. Present existing and new incentive programs to smaller community groups, local
banks, realtors, and local businesses either on in an informal group session or a
formal roundtable format.
b. Develop and communicate a"complete" development package program which
provides support and assistance to prospects and developers from inquiry to
construction.
5. Market industrial development at the Monticello Business Center (Otter Creek Business
Park) to a broad variety of prospects as guided by the current and future Comprehensive
Plan.
a. Focus on prospects which serve or rely on the St. Cloud and Twin Cities markets.
b. Focus on supply chain prospects.
6. With the IEDC, communicate with current business and industry in support of Business
Retention & Expansion.
a. Engage in informal business and industry small group meetings and explore
potential format of helpful formal round tables meetings.
b. Work with the Monticello Times to do a business spotlight or profile article two
times per year.
Objective 3: Support community quality-of-life initiatives which act as economic
development tools.
Strategies:
1. Encourage and support coordinated planning and development of parks, trails in or near
business districts.
2. Support the development Bertram Chain of Lakes Regional Park, including community
connections.
GOAL: SUPPORTING LIFE-CYCLE HOUSING CHOICE
Objective(S): Evaluate the need for specific housing types and act as a partner in
creating affordable housing development for the community.
Strategies:
1. Complete 2020 Housing Study update to assess housing needs across the spectrum of
housing choice and incorporating changing demographic trends.
2. Develop revised policy statements for housing which address the identified study needs.
3. Continue to market workforce housing development on EDA owned land along East 4tn
Street and Outlot A of Country Club Manor, or at other suitable sites in the City, including
the Downtown.
4. Support efforts by private and non-profit entities to develop affordable housing projects
utilizing state and federal programs.
5. Examine use and application of available housing TIF dollars per the 2016 TIF Management
Plan and the adopted Policy Statements for Available TIF Funds.
6. Continue to periodically examine housing stock for aging or blighted properties and research
development of programs for redevelopment and/or revitalization of existing housing.
GOAL(S): EXPANDING TAX BASE, ATTRACTING & RETAINING JOBS
Objective 1: Continue to develop and leverage available tools for business
development and job creation.
Strategies:
1. Continue discussion on use of tax reimbursement/abatement, including development of
criteria/application.
2. Identify and communicate new or innovative state and federal programs or grants which
could be leveraged to support business development.
3. Proactively support small business start-up efforts through programs and various tools
available for small businesses.
Objective 2. Collaborate with various local entities involved in monitoring and
developing workforce training awareness efforts to address workforce
needs.
Strategies:
1. Continue to support the IEDC interactions with in the Wright County Workforce
Pathways efforts in addressing workforce needs and training.
2. Consider IEDC recommendations and be prepared to be a partner in potential
solutions based on WCWFP findings.
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Objective 3:
opportunities.
Strategies:
Engage as a partner in local and regional planning and development
L Monitor the regional planning efforts of the Central Mississippi River Regional Planning
Partnership (CMRRPP) and engage with feedback as requested.
2. Consider funding and/or completing studies that provide policy and strategy framework for
desired land uses/or projects in the downtown and for other programs.
3. Monitor commuter rail development in and around the Twin Cities metro region for potential
benefits and opportunities to serve Monticello.
Appendix: Monticello Comprehensive Plan, 2008 — Economic Development
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MINNESOTA STATUTES 2016 13.591
13.591 BUSINESS DATA.
Subdivision 1. Not public data when bene�t requested. The following data, that are submitted to a
government entity by a business requesting financial assistance or a benefit financed by public funds, are
private or nonpublic data: financial information about the business, including credit reports; financial
statements; net worth calculations; business plans; income and expense projections; balance sheets; customer
lists; income tax returns; and design, market, and feasibility studies not paid for with public funds.
Subd. 2. Public data when bene�t received. Data submitted to a government entity under subdivision
1 become public when public financial assistance is provided or the business receives a benefit from the
government entity, except that the following data remain private or nonpublic: business plans; income and
expense projections not related to the financial assistance provided; customer lists; income tax returns; and
design, market, and feasibility studies not paid for with public funds.
Subd. 3. Business as vendor. (a) Data submitted by a business to a government entity in response to a
request for bids as defined in section 16C.02, subdivision 11, are private or nonpublic until the time and
date specified in the solicitation that bids are due, at which time the name of the bidder and the dollar amount
specified in the response become public. All other data in a bidder's response to a bid are private or nonpublic
data until completion of the selection process. For purposes of this section, "completion of the selection
process" means that the government entity has completed its evaluation and has ranked the responses. After
a government entity has completed the selection process, all remaining data submitted by all bidders are
public with the exception of trade secret data as defined and classified in section 1337. A statement by a
bidder that submitted data are copyrighted or otherwise protected does not prevent public access to the data
contained in the bid.
If all responses to a request for bids are rejected prior to completion of the selection process, all data,
other than the name of the bidder and the dollar amount specified in the response, remain private or nonpublic
until a resolicitation of bids results in completion of the selection process or a determination is made to
abandon the purchase. If the rejection occurs after the completion of the selection process, the data remain
public. If a resolicitation of bids does not occur within one year of the bid opening date, the remaining data
become public.
(b) Data submitted by a business to a government entity in response to a request for proposal, as defined
in section 16C.02, subdivision 12, are private or nonpublic until the time and date specif�ied in the solicitation
that proposals are due, at which time the name of the responder becomes public. All other data in a responder's
response to a request for proposal are private or nonpublic data until completion of the evaluation process.
For purposes of this section, "completion of the evaluation process" means that the government entity has
completed negotiating the contract with the selected vendor. After a government entity has completed the
evaluation process, all remaining data submitted by all responders are public with the exception of trade
secret data as defined and classified in section 1337. A statement by a responder that submitted data are
copyrighted or otherwise protected does not prevent public access to the data contained in the response.
If all responses to a request for proposal are rejected prior to completion of the evaluation process, all
data, other than the names of the responders, remain private or nonpublic until a resolicitation of the requests
for proposal results in completion of the evaluation process or a determination is made to abandon the
purchase. If the rejection occurs after the completion of the evaluation process, the data remain public. If a
resolicitation of proposals does not occur within one year of the proposal opening date, the remaining data
become public.
Copyright U 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
13.591 MINNESOTA STATUTES 2016
Subd. 4. Classi�cation of evaluative data; data sharing. (a) Data created ar maintained by a govemment
entity as part of the selection or evaluation process referred to in this section are protected nonpublic data
until completion of the selection process or completion of the evaluation process at which time the data are
public with the exception of trade secret data as defined and classified in section 13.37.
(b) If a government entity asks employees of other government entities to assist with the selection of
the responses to a request for bid or the evaluation of responses to a request for proposal, the government
entity may share not public data in the responses with those employees. The employees participating in the
selection or evaluation may not further disseminate the not public data they review.
Subd. 5. Internal competitive response. (a) For purposes of this subdivision, "internal competitive
response" means a bid or proposal to provide government goods or services that is prepared by the staff of
a government entity in competition with bids or proposals solicited by (1) the same government entity from
the private sector or (2) a different government entity from the private sector.
(b) Data in an internal competitive response is classif�ied as private or nonpublic until completion of the
selection process or completion of the evaluation process at which time the data are public with the exception
of trade secret data as defined and classified in section 1337.
History: 2001 c 202 s 7; 2005 c 163 s 41, 42; 2007 c 129 s 38; 2013 c 142 art 3 s 14
Copyright U 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved.
EDA Agenda: 5/27/20
6. Consideration of Authorizin� a Temporarv Emer�encv Grant Pro�ram to support small
business funding needs due to COVID-19 impacts in alignment with the Governors's
Peacetime Emer�encv Executive Orders and the Citv of Monticello Emer�encv
Declaration (JT)
A. REFERENCE AND BACKGROUND:
This item is being brought back to the EDA as a tabled item for consideration of authorizing
proposed policies and an application form for a temporary emergency grant program
supporting small businesses in response to COVID-19 impacts. The EDA discussed the
proposed Emergency Financial Assistance Program in a workshop and then at its regular
meeting on May 13, 2020. At that time, members expressed a variety of concerns and a
desire to continue discussion at the May 27, 2020 meeting.
It should be noted that the Federal and State assistance programs such as PPP (Paycheck
Protection Program) have received additional funding allotments. In this second round of
funding, banks and community development agencies, such as the Initiative Foundation, have
been encouraged to focus offering PPP dollars to smaller businesses and non-profit entities.
As of mid-May, 2020, there appeared to be a substantial amount of the PPP funding still
available on a national level. In the future, there may also be legislative adjustments making
the PPP assistance more user friendly and easier to integrate into business plans. Further,
business re-opening continues to evolve quickly, and the EDA may wish to continue
monitoring the situation for the best way to direct funding toward community goals.
The GMEF Loan program has a current balance of approximately $1,030,000. There are a
several prospects that have been targeted for use of the FUND in prospective new
development projects. The estimated assistance envisioned for those projects is approximately
$875,000 +/-.
Al. STAFF IMPACT: Staff time involved in the work related to consideration of
authorizing a temporary emergency grant-loan program is estimated at approximately 62
hours +/-. The majority of those hours are allotted to in-house staff. The EDA's legal
counsel provided information regarding emergency grant and loan program models used in
other communities and also reviewed the proposed policies and the application form. The
estimated time of the EDA attorney's consult and review of the creation of an emergency
business funding program is 4 to 6 hours +/-. No additional staff will be needed to complete
the tasks related to this item.
A2. BUDGET IMPACT: The budget impact from considering authorizing the creation of
an emergency grant-loan funding program would be the immediate set-aside of $100,000
from the GMEF Loan Fund. Up to an additional $50,000 could be considered later depending
on the program's needs. If the EDA shifts a total of $150,000 for emergency grants funding,
there would still be a remaining balance of approximately $880,000 in the GMEF fund for the
four or five prospects that staff envision as utilizing the program in the near to mid-term
future. There is sufficient funding in the 2020 EDA General Fund budget to cover staff
expenses related to creation and administration of the emergency funding program.
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EDA Agenda: 5/27/20
B. ALTERNATIVE ACTIONS:
L Motion to authorize creation of an Emergency Small Business Grant funding program by
utilizing $100,000 +/- from the GMEF Loan Program as a first phase of funding for the Grant
program and further authorizing adopting the polices and application form as presented.
2. Motion to deny authorization to create an Emergency Small Business Grant funding
program by utilizing $100,000 +/- from the GMEF Loan Program as a first phase of funding
for the Grant program and further authorizing adopting the polices and application form as
presented.
3. Motion to table consideration of authorizing creation of an Emergency Small Business
Grant funding program.
4. Motion of other.
C. STAFF RECOMMENDATION:
Staff will defer to the EDA's decision regarding the creation of an Emergency Small Business
Financial Assistance program. With a second round of PPP funding approved by Congress, it
seems as though there are sufficient resources to help smaller businesses. Staff have not
received any recent requests for assistance similar to those that were expressed in early April.
If the EDA decides to create an emergency financial assistance program, staff would
recommend starting with $100,000. Staff feel that at least $875,000 should
be reserved in GMEF for prospective economic development funding over the next two years.
SUPPORTING DATA:
A. Proposed Emergency Grant-Loan Fund Policies
B. Emergency Business Grant Application form
C. Summary Notes from Small Business Roundtable Remote Conference Mtgs. (4-30-20)
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MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
SMALL BUSINESS EMERGENCY ASSISTANCE PROGRAM
POLICY PURPOSE
The Economic Development Authority for the City of Monticello (EDA) recognizes that small
businesses are vital to the fabric of the Monticello community. Accordingly, the Monticello
Economic Development Authority (EDA) has developed a Small Business Emergency
Assistance Program to address working capital needs upon the declaration of a state of
emergency by the State of Minnesota (State) and the City of Monticello (City).
The purpose of this program is to ensure the viability of the community's small businesses
faced with the current COVID-19 health emergency, which is adversely impacting the local
economy. The goal of this program is to provide needed financing for local businesses to help
sustain operations and endure economic hardships during this challenging time. The program
is structured as grant assistance.
Grant funds are available on a first-come, first-served basis. The program is subject to funding
availability from the EDA. The EDA retains the authority and discretion to approve or deny an
application, and reserves the right to subsequently add further priorities, change eligibility
criteria, or discontinue the program in response to changing circumstances.
ELIGIBILITY
a. Eligible Businesses
To be eligible to receive Small Business Emergency Assistance funds, a business must
demonstrate that its operations have been directly and adversely affected by the COVID-19
Health Pandemic and include the following:
1. Eligible business types include locally owned and operated businesses noted in Executive
Orders 20-04 and 20-08, such as those listed below.
Restaurants, cafes, coffeehouses, and other places of public accommodation
offering food or beverage for on-premises consumption.
Taverns, brew pubs, microbreweries, distilleries, wineries, tasting rooms, and
other places of public accommodation offering alcoholic beverages for on-
premises consumption.
• Gymnasiums, fitness centers, indoor sports facilities, indoor exercise facilities,
businesses offering massage therapy, spas, salons, nail salons, cosmetology
salons, and barber shops. This includes, but is not limited to, all salons and shops
licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota
Board of Barber Examiners.
• Bowling alleys, theaters, skating rinks, and other similar recreational or
entertainment facilities.
• Local boutique and specialty retailers.
• Other businesses deemed non-essential.
2. Other businesses as approved by the EDA.
b. Eligibility Requirements
The business shall have a physical address (proof of address required) within the
corporate boundary of the City and have been operating within the City long enough to
demonstrate financial viability;
The business shall employ between 2 and 50 Full Time Equivalent (FTE) employees
prior to the issuance of the State of Minnesota Emergency Executive Order 20-04 (March
16, 2020) and make $1 million or less in annual gross revenue. For purposes of
calculation, the term "employees' may include those staff renting or leasing facilities
within the Monticello business location.
4. All businesses must serve the general public and be a conforming or legally non-
conforming use under the current zoning regulations of the City, and must not be in
violation of the City's zoning code.
5. Applicants are strongly encouraged to claim all applicable private and public insurance
and utilize all other sources of applicable assistance available from other private and
public sources. Applicants are also strongly encouraged to apply for an Economic Injury
Disaster Grant through the Small Business Administration (SBA) and Small Business
Emergency Grant through the Minnesota Department of Employment and Economic
Development (DEED) prior to applying for this grant. For more information, visit:
Guide to financial resources for Minnesota small businesses
While not absolutely required, applications which include proof of application
submittal, acceptance, approval and/or denial of State and federal emergency financing
programs will receive higher scores in evaluation.
Assistance cannot be provided to businesses that:
• Do not have a physical address (and building/location) within the City of Monticello.
• Have more than three total locations operating as part of the business enterprise.
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• Derive income from passive investments without operational ties to operating
businesses or whose primary source of revenue is from business-to-business
transactions.
• Primarily generate income from gambling activities.
• Generate any part of its income from adult-oriented or tobacco/vaping-related
activities.
• Have no current or historical financial statements.
FUND TERMS & CONDITIONS
a. Amount: Businesses may apply for a one-time emergency grant of up to $5,000. The EDA
shall determine the final award amounts based upon scoring criteria.
b. Term: All grant awards must be utilized within two months of the date of the grant fund
disbursement.
c. Uses: Awarded funds may be used exclusively for current payroll obligations (i.e. may not
include employees who have been laid off), lease or mortgage payments, utilities, accounts
payable, property taxes and other critical business expenses that can t be paid as a direct
result of the current health emergency. Awarded funds may not be used for
businessowner's/manager's personal uses or expenses. The City reserves the right to pay or
require payment of delinquent taxes, bills, or charges due to the City out of funds awarded.
d. Proof of Need: Applicants shall be required to provide proof of financial need for grant
funds. This includes but is not limited to the previous year's annual gross revenue, average
monthly gross revenue prior to COVID-19, and projected monthly gross revenue for the
next three months. Additionally, as noted above, applicants are encouraged to provide
evidence of application submittal, acceptance, approval and/or denial of State and federal
emergency financing programs.
e. Proof of Expenses: Applicant shall provide proof of eligible expenses requested to be paid
with grant funds. See list of eligible grant uses above.
f. Disbursement of Funds: Funds shall be distributed within three weeks after fully executed
grant agreement has been received.
g. Termination: The EDA retains the right to terminate any agreement under the Emergency
Assistance Program if a grant recipient is found to be in violation of any conditions set forth
in the grant guidelines or grant agreement.
h. Right to Deny: The EDA retains the right to deny any application for grant funding.
i. Grant Agreement: Upon a successful grant application being awarded funds, the grant
recipient shall enter into a Grant Agreement with the EDA. Funds will not be distributed for
any grant award until a grant agreement has been executed by all required parties.
j. Reporting: As a condition for receiving grant funding, all grant recipients are required to
submit a brief report to the EDA within two months after receiving grant funds, specifying
how the entirety of the grant funds were utilized and providing evidence in the form of paid
invoices, statements, or similar documentation.
k. Funding Availability: The Small Business Emergency Assistance program has a limited
amount of funds available. Awards will be provided on a first-come, first-served basis until
the earlier of the date the fund is exhausted, or the City-declared state of emergency
declaration is lifted.
l. Indemnification: All grant recipients shall be required to indemnify the City of Monticello,
the Monticello Economic Development Authority, and any officers acting on their behalf.
APPLICATION PROCESS
Prior to applying, please review the Program Guidelines to determine if your business is
eligible.
Applications will be available May 15th, 2020. � �
1. Applications are available on the City's website: www.ci.monticello.mn.us.
2. Application requirements will include:
• Basic details about the business.
• Basic employment and annual gross revenue information.
• Information on current operations including whether the business is currently
closed or is providing reduced services.
• Narrative descriptions and estimated calculations of the negative impacts on the
business due to COVID-19.
• A narrative description of the current plans for resuming operations following
the COVID-19 crisis.
• Information on the intended use of the grant funds.
• Evidence of application submittal, acceptance, approval and/or denial of State
and federal emergency financing programs, as applicable.
• Supporting documentation and application attachments.
3. Fully completed and signed applications along with required documents may be
submitted online to: Communit�.develo�ment@ci.monticello.mn.us
Please note that mailed hard copy applications will take longer to process.
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4. Upon submission of application, applicants will receive an email confirming receipt of
application.
The application will be reviewed for eligibility upon receipt. If additional information or
documentation is necessary, EDA staff will contact the applicant. Due to an expected
high volume of applications, you may consider your application complete if staff does
not request additional information within 10 business days after application acceptance.
FUNDING PROCESS
If application is approved and funds are available, businesses will be notified within 2 business
days and provided with an electronic grant agreement for signatures.
Small businesses receiving funds must commit to using the funds for eligible program expenses
and must agree to document and report specific uses of the funds. All grant recipients are
required to submit a brief report to the Monticello EDA within two months after receipt of
funds, specifying how the entirety of the funds were utilized and providing evidence in the
form of paid invoices, statements, or similar documentation.
GRANT AGREEMENT
If the application for Small Business Assistance is approved, the applicant and business owner
will be required to enter into a grant agreement to proceed. The agreement will specify the
terms and conditions of the grant as identified herein.
FOLLOW-UP and ADDITIONAL RESOURCES:
For businesses needing additional resources such as technical assistance, larger working capital
grants, or other, staff will provide ongoing assistance to businesses of all sizes and types,
working with partners and other levels of government to access resources as available, such as
SBA and State of Minnesota DEED grants.
Staff will conduct a check-in with grant recipients within one year of the distribution of funds to
learn the effect of the grant and business outcomes such as economic impact of the grant
program, (including, but not limited to, employees retained or rehired, and sales) and whether
they match the program's desired outcomes of business and/or job retention.
QUESTIONS
Any questions related to the application process or for assistance in completing the application
should be directed to:
Jim Thares
Economic Development Manager
City of Monticello
763-271-3254
communit�. develo�ment@ci.monticello.mn.us
� c i TY�o F MONTICELLO EDA
�' Monticello SMALL BUSINESS EMERGENCY GRANT
APPLICATION
1. CONTACT INFORMATION
Legal Name of Business:
Project Site Address:
City / State / Zip:
Contact Person(s):
Business Phone:
Home Phone:
Check One:
Federal ID #
Property Owner:
� Proprietor
Email:
� Corporation
State ID #
� Partnership
2. BUSINESS INFORMATION
Please attach additional documents/pages as needed to be complete as possible.
a. Years of operation in Monticello
b. List below the number of part time and full time employees.
For purposes of calculation, the term "employees" may include those staff renting or leasing
facilities u�ithin the Monticello business location.
Prior to March 15th, 2020 FT PT
Current FT PT
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c. Give a brief summary of your business (products, services, growth history,
operations, number of locations, etc.)
d. Provide information regarding how your operations have been impacted by the
pandemic, specifically hours of operation, employee reductions, etc. Include any
strate�ies implemented to sustain your business
e. Provide a description and include documentation of the economic impact of the
pandemic on your business.
f. Describe of the current plans for resuming operations following the COVID-19
crisis.
3. GRANT REQUEST
Amount Requested: $
4. FINANCING
Please provide documents/evidence of other sources of state or federal funds your
business has been awarded or denied during the COVID pandemic, as applicable,
including Economic Injury funds, PPP, etc.
5. ATTACHMENTS CHECK LIST � �
Please attach the following:
A) Proof of address
_B) Financial statements — Previous year's annual gross revenue,
average monthly gross revenue prior to COVID-19, and projected
monthly gross revenue for the next three months.
C) Proof of expenses to be paid
D) Award/denial letters — State and Federal Assistance Programs
6. AGREEMENT
I/ We certify that all information provided in this application is true and correct to the
best of my/our knowledge. I/ We authorize the Monticello EDA to verify financial and
other information. I/ We agree to provide any additional information as may be requested
by the city.
The undersigned has received the EDA's policy regarding the program and understands
that funds are awarded on a first-come first served basis.
APPLICANT SIGNATURE
APPLICANT NAME (Print):
DATE:
The EDA is a governmental entity and as such must provide public access to public data it receives.
Data deemed by Applicant to be nonpublic data under State law should be so designated or marked
by Applicant. See Minnesota Statutes, Sections 13.591, Subd. 1 and 2.
f � CITY OF
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Small Business Roundtable
April 30, 2020 � 10 a.m. and 3 p.m.
GoToMeeting
Attendees during 10 a.m. call: Angela Schumann, Jacob Thunander, Rachel Leonard, Jim
Thares, Jeff O'Neill, Dan Klein, Marcy Anderson (Monticello Chamber of Commerce & Industry),
Bill Fair (City Council), 011ie White (City of Monticello EDA), Jessica Rosten (Al14Kids), Teri &
Chuck Sweet (Sweet Dreams), Liz Calpas (Monticello Dental Clinic), Ryan Ager (Pizza Ranch),
Don Hickman (Initiative Foundation), Abdi Daisane (Initiative Foundation), and Sarah
Kortmansky (Sherburne State Bank).
Attendees during 3 p.m. call: Angela Schumann, Jacob Thunander, Rachel Leonard, Jim Thares,
Jeff O'Neill, Marcy Anderson (Monticello Chamber of Commerce & Industry), Jonas Johnson
(Belde Chiropractic), Kevin Steffensmeier (RiverWood Bank), Jim Davidson (City Council), and
Tracy Hinz (City of Monticello EDA).
Background
The City of Monticello and the Monticello Chamber of Commerce & Industry conducted a set of
"Small Business Roundtable" discussions on April 30, 2020 at 10 a.m. and 3 p.m. The two
organizations invited a small group of diverse local Monticello businesses, the majority
representing those considered "non-essential" under Executive Order, to elaborate on how
they have been impacted by the COVID-19 pandemic.
The roundtable discussion provided an opportunity for staff to hear first-hand feedback so we
can better understand and respond to the challenges, resources, and remaining needs of
businesses here in our community. The participants told personal stories and provided more
context about what individual local businesses are experiencing during the crisis.
Understanding that not all businesses were able to participate in the call during the scheduled
times, the City of Monticello created an online survey and sent it to a short list of Monticello
businesses. The City received one written response from Kelly Lillback at Live, Laugh, and Bloom
and one verbal response from Scott Pauly at BlueStone Grill.
Summary: Discussion and Surveys
1. Tell us briefly about the current environment for your business.
Overall, businesses are unsure of what the new standard will be when they are allowed
to completely reopen to the public. Businesses understand that when they are allowed
to reopen, that they will have to be creative and new measures will be required to
protect the health of their employees and customers. All of the businesses participating
on the discussion have either temporarily closed, limited hours, or needed to change
operations. It was noted that customers are generally understanding of the changes
businesses are making.
www.ci.monticello.mn.us
f � CITY OF
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�antice o 505 Walnut Street Suite 1 Monticello, MN 55362
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Businesses are also noting that if the shutdown lasts much longer, paying monthly
expenses will become difficult. Retail businesses are required to use their stores website
to sell products, but even through an online presence, sales are down dramatically.
There is also a concern with being able to get product from distributors or other
sources. Some businesses reporting as large as a 94% drop in sales. All retail businesses
have had to terminate, furlough, or cut hours of all or part of their staff.
Many businesses noted evolving operations and strategies to keep business operating.
Medical offices are inventorying products to ensure adequate supply, but are noticing
difficulty in placing orders as many of the products are made outside of the United
States. Hospitals and clinics are receiving supplies first, then all other personal health
services including dental and chiropractors' offices are given supplies. These businesses
have also seen dramatic price increases.
Franchise businesses were understood to have good guidance from their corporate
offices on areas such as reopening procedures, sanitization, and employee safety.
Food and restaurant industries are observing a good supply of food, but changes are
occurring daily. Supply sizes are smaller and some products are unavailable. It was
noted that grocery stores have the first priority of food preference, then restaurants.
Prices have also been increasing. These businesses are required to pre-order further in
advance.
There was concern brought forward about sanitization and cost concerns and whether
people would be completely comfortable coming into a public space.
Businesses are saving and using all that they can in reserves to survive.
Banks are noting that they are increasingly busy as the shutdown continues. Many banks
are becoming overwhelmed by the constantly changing guidelines from State and
Federal programs. They have been a critical partner, along with accounting firms, in
helping businesses work through state and federal assistance programs. It was noted
that in addition to changing guidelines, additional rounds of funding have been made
available. Most employees of banks are still employed and those that can work from
home are encouraged to do so.
2. What local, state, or federal resources are you tapping into? What are the challenges to
accessing the resources?
Most businesses have explored and applied for the State's EIDL and PPP program to help
pay employees and normal operating expenses (such as rent and utilities). Businesses
noted that the process was complicated and unclear at times. All of the businesses that
took part of the discussion researched and applied for some sort of funding. Depending
on when the business submitted the request, a mix of responses were received. Some
businesses received money, others are on a waiting list or needing to apply for a second
round of funding, or some did not qualify. It was noted that those that were approved
www.ci.monticello.mn.us
f � CITY OF
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for funding have had to wait longer than expected for the funds and some are unsure
where the funding is at. Some of the loans are forgivable depending on the program and
guidelines.
Information from these programs has been continually changing and it's best to check in
with local banks for the most up-to-date information or check the state or federal
government websites. Banks recommend businesses apply for state or federal funds if
they are considering it. The money can be paid back if the funds are not used. Some
state and federal programs are running out of funding, so businesses should apply
quickly.
It was noted that one of the biggest concerns banks have for the community is that
current funding sources may not be enough to help businesses survive when they are
forced to close during the Governor's Orders.
Attendees stated that SBA, DEED, the Minnesota Governor's Office, banks, and the
Chamber of Commerce have all been very helpful in providing resources and
information. However, there are a lot of people that need assistance and guidance, and
response times from these organization has been impacted.
3. What are your most immediate needs?
Businesses explained that they need the State to allow their businesses to open up to
the public, especially healthcare offices. Businesses understand the need to be flexible
and creative during a time of reopening and will continue to follow social distancing and
sanitizing measures.
4. What do you foresee for your business in the next 3-6 months?
Businesses, especially small businesses, are unsure of how things will be in the next 3 to
6 months. Most are trying to take it one day at a time. Businesses have had to
terminate, furlough, or hold on the hiring additional staff during this time. Some
businesses are worried about shutting down or selling their business or building
completely. The larger impact is unknown.
Banks are determined to provide available resources and are being encouraged to be far
more flexible than in normal banking situations. They will need to work together to be
innovative and creative. Banks are also beginning to have concerns about loan default,
especially for small businesses. They do not want to be property owners.
5. Has your business worked on a phased back to business plan?
Overall, businesses are evaluating on a day-by-day basis, but are planning for a future
reopening. They are waiting for new information from the governor or from their official
board or franchise. Businesses understand that in order to open up again, their plans
will need to change, whether that be through a larger online presence, curbside pickup,
www.ci.monticello.mn.us
f � CITY OF
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drop-off, limiting number of customers/patients in their business at one time, increased
sanitization measures, or other means.
The City of Monticello commends the resiliency of our businesses and people in the
community. We are here to advocate and assist you with finding answers. We
encourage all to shop locally in Monticello, especially our small businesses. We will get
through this together.
www.ci.monticello.mn.us
EDA Agenda: OS/27/20
7. Economic Development Report (J'1�
A. 300 — 4t" Street East Update: The hazardous materials in the home (asbestos in the flooring) were
removed and disposed of on May 21, 2020 by Bergo Environmental. The junk and debris in the home
and garage were removed by the City Public Works staff prior to the hazardous materials removal and
placed in a refusal disposal dumpster at the Public Works facility. Depending on the costs, the Fire
Department may be able to do a training burn with demolition clean-up post the burn in late July or
mid-August 2020.
Staff recently posted the demolition work scope on the City website and are currently accepting quotes
for this work. The EDA will review the demolition quotes at an upcoming meeting (estimated June
2020) and consider authorizing next steps at that time.
B. Industrial Land Feasibility Study Update: Progress continues on the Industrial Land Feasibility
Study, recently approved by the EDA. WSB & Associates has been provided additional information
for three more sites creating a total of five sites to be reviewed. The study cost is expected to increase
to appro�mately $24,000 +/- with the addition of three land areas. The City Council was provided an
update of the study's status in the May 20, 2020 Council Connection.
As you will recall, Project Gia-Saurus requires a site that is larger than the currently available sites in
Otter Creek Business Park (entirely within OCBP) or any other existing industrial parcels in the City;
thus generating the need for the Feasibility Study. Project Gia-Saurus' land need is approximately 18
to 22 acres +/-. The Feasibility Study will provide a facility layout on potential sites and the cost of
necessary infrastructure components at each site.
C. Project Gia-Saurus Update: Background - the total building project cost for the proposed
175,000 sq. ft. facility (phase 1) is estimated to be $46,000,000 to $50,000,000. A phase 2 expansion
in year 3 or 4 after beginning operations is expected to increase the size of the facility to 325,000 sq.
ft. (+ 150,000 sq. ft.) and cost an additional $40,000,000. A total of 75 FTE jobs will be created in
phase 1 and an additional 120 FTE new jobs in phase 2 for a grand total of 195 FTE. The Project Gia-
Saurus ownership has indicated that it has an expedited timeline in order to access potential federal
COVID-19 stimulus funding and also supply its critical PPE products to the market in a timely
manner.
A tour of potential sites was completed with the company ownership group on Thursday, May 21,
2020. This was helpful as it gave the company a much better perspective of how the facility could fit
onto the potential sites. The ownership shared thoughts about each site with staff and that information
will be incorporated into the Industrial Land Feasibility Study noted in item B. In addition, staff is
focusing on reviewing potential financial assistance programs with various federal and state agencies
to help the proposal to move forward and may have more information to report in the June EDA
meeting.
D. UMC Expansion Update: UMC staff have indicated that the site plan is being adjusted to retain
the current east side public street access into the existing facility and use that as the access to enter into
the new expansion parcel. They stated that the COVID-19 has slowed the final organizing steps of
preparing to start construction of the new 52,000 square foot facility. The projected start date is now
June-July 2020. This is about two full months later than earlier start date projections.
EDA Agenda: OS/27/20
E. Fa�ade Improvement Grant Program: Jill Agosto recently submitted a packet of
information for the Fa�ade Improvement Grant Program to City staff. Staff are reviewing the
application for completeness and will the status with her in the coming days. Ms. Agosto
owns a one-story commercial building located at 142 West Broadway. The EDA will be
further apprised of the application in June.
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