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EDA Agenda 07-13-2020 (Joint Meeting)AGENDA JOINT CITY COUNCIL AND ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING Monday, July 13th, 2020 — 7:30 p.m. North Mississippi Room - Monticello Community Center City CounciL Mayor Brian Stumpf, Charlotte Gabler, Bill Fair, Lloyd Hilgart, Jim Davidson Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon Morphew, Tracy Hinz, 011ie Koropchak-White and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Jeff O'Neill, Angela Schumann, Matt Leonard, Sarah Rathlisberger, Ron Hackenmueller, Jim Thares, Jennifer Schreiber, Rachel Leonard 1. Call to Order 2. Roll Call 3. Summary Review of Industrial Land Absorption and Demand Analysis Report (Commissioned by EDA in late Summer 2019; Completed by WSB in February 2020) 4. Overview and Background of Project Gia-Saurus in context of size, scope, economic impacts, infrastructure implications, community benefit, current efforts, etc. Summary Review of Land Feasibility Analysis Study and Land Use Context of Potential Sites 6. Identification and Discussion of Additional Information and/or Due Diligence-Research Required by City Council and/or EDA 7. Review of Potential Next Steps and/or Action Items 8. Adj ourn �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. However, given current analysis when comparing the three identified sites, site one is the closest to being `development ready' as it has the closest proximity to an existing full access interchange with Interstate 94 as well as proximity to existing utilities and is guided as "placed to work" in the cities most recent comprehensive plan which aligns the properties future land use designation with an industrial park. °� Mantieello 23 '11�+��b � U'3 � v ---- � + � � ---- ,. �� .. _ .,,�. . �, •i� � i . -- � � I �, iii ^ '� � I --- ---- �' LL � ; { . ��I � _ � _ � t _ . j � � i _ _ � � . . . i o I , . _ I � � �' .. f . . . . _ �. ., . � � I I . ;�, �� `,C. - L ., _ .. Qi I . L. [� 7 , �� " . .. �� ... J �{4��7 � � ��- C €' � r%� . ' i � ` N - . . . � I � . � , �'�'� - _ � } { �{ ' �---- � . i � � . � ' � . -- � cn i � � � . � ----- N � � 3 � '�.��L .. 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I � I I `� .� � � fti�='"' _ y �` ��T'� y � �, �,� i r _ h Ih..s �� i I : - � � �}� �` � "� -�O i �� /' s ry� I � - �� ,i � f^+�., , ,�j� O � � ..J ,� �.." O � A3 a� � L / � � r� V ! � � � � O L.L O O N - � U � j--+ (6 c a o � � � � � 0 �� +� � U � � N 0 M Name of Project: � e c� t a- -�a-�� 15 O,`� O� L� ,� � C..�s.e,. �: +- 1�, D p0 �s � 2 7� � r� a� S ��'�.�.g.� �. �- � Z� F-r� ��; - � j g, Oa�� qc�, �4� � �as�,� -f 1'�j�OOO�oo� �„� C�-�,�► �;� �� 5�.� i��a << o� 2 1. Number o New mployees Point Value +1 +2 +3 Number 1-5 6-15 16-30 +4 31-50 +5 51 + 2. Number of Jobs Per Acre Point Value Number Per Acre + 1— 2 per acre +2 3 — 4 per acre +3 5 — 6 per acre +4 +5 6 — 7 per acre 8 + per acre 3. Average Wa�es for New Jobs Point Value Pay Range Dollar Wei�htin� +1 $15,000-24,999 $20,000 +2 $25,000-29,999 $27,500 +3 $30,000-44,999 $37,500 +4 $45,000-59,999 $52,500 +5 $60,000 + $60,000 Total Empl. � Wei�hted $ Amt. 4. Public Assistance per New Jobs � "'Public Assistance �oG�L 1'J� Number of new jobs created �,�.�b�Public Assistance per new job Point Value Public Dollars Invested Per New 1ob +1 Over $50,000 +2 $40,000 to $49,9- - +3 30,000 to $39,9 +4 $20,000 to $29,9 +5 $0 to $19,999 5. Developed Assessed Value Per Acre Point Value Value Per Acre +1 $150,000-199,999 +2 $200,000-349,999 +3 $350,000-499,999 +4 $500,000-599,999 +5 $600,000 + 6. Business Retention Point Value +0.5 +1 +1.5 +2 +2.5 +3 y Number of Retained Jobs 1-5 jobs 6-10 jobs 11-30 jobs 31-50 jobs 50-100 jobs 101 + jobs 3 �L2��c��r�o� �'�'i'� Z. � c�cJ'eS 4Zq a c�'2. ,�.� -t� �-i�-� � � ��, � 1 � � C7 ( N�� 7. Ratio of Private versus Public Investment in Pro'ect �Q � �� Q�D 6� � Private Invest en 2 �� EDA/Public Investment . , � O�Total Investment C.O .� Ratio of Private versus Public financing Point Value Ratio +1 over 2:1 +2 over 3:1 +3 over 4:1 +4 over 5:1 6:1 or grea er 8. Si�nificant Communitv Impact Point Value Unsubsidized Spin-Off development potential +1 Low potential for spin-off of unsubsidized development _ — +2 Moderate potential for spin-off unsubsidized development +3 High potential for spin-off unsubsidized development 9. Tenure in Business Operation '�` Point Value Number of Years in Business +1 Five years or less +2 6 to 10 years +3 11 years or more '2 lp "� ��`�` �S 4 10. Environmental Impacts Point Value Types of Environmental Issues +1 -0- -1 -2 Enhances the environmental aspects of a site via clean-up of contaminants or improved aesthetics via unique site or architectural features No impacts Noise Issues ise and negative visual aesthetics �odors,slscrtt.�and negative visual aest WORKSHEET SUMMARY Factors #6. #7. #8. #9. #10. Total Points Number of New Employees � (1-5) Number of Jobs Per Acre �(1-5) Average Wages for New lobs �(1-5) Public Assistance Per New Job �_ (1-5) Developed Assessed Value Per Acre �(1-5) Business Retention (# of Jobs) � (.5-3) Ratio of Private to Public Invest. _�� (1-5) Significant Impact/Comp Plan Goals_� (1-3) Number of Years of Business Oper. �� (1-3) Environmenta) Impacts ' 3 (-3 to +1) Total Points 2_� � Possible to score 40 points total , t N �s Total Worksheet Points Equated to Land Price �,.i: ..,...�;.� �.,:.�:,�■� i�i �� iii � . � f - • i-�- i •- • •I' •"" � �- . • i � � - • u .. - - ' i � � • - -� - - - - � -- .- • - • ' � - • - -- - � - • • - . - i � • : � ' • • . - - � � - - � ,,.�.., ._:...�.,s � ,� .; �z...«. :m � -#-, �It r; �., = ;..�:,:�- -R> -s�,. .;,�,. , 4 4 ,4 �r �-,1..� R� L..�. �**:, .o-,.�,.'- 4",'� ..,-:�.a-.� - . :..� r' ,r�. ��.«s�..,�s Prospect Factor Factor Factor Factor Factor Factor Factor Factor Factor Factor Total 1 2 3 4 5 6 7 8 9 10 Shred-N-Go 3 2 3 5 2 0 5 0 2 0 Project Novus 5 4 5 4 5 0 2 3 3 1 Suburban Mfg. a 3 3 3 5 4 2 5 0 3 0 Walker In-Store 1 2 3 4 3 0 4 0 2 0 Dahlheimer Beverage 2 1 3 5 5 2 5 0 3 0 Karlsburger 1 1 3 5 3 0 5 0 2 0 Dahlheimer Expansion 1 0 4 5 5 2.5 5 0 3 0 Project 6580 2 1 3 1 5 2 4 1 3 1 Project Lake Region RVs 2 1 3 5 5 1.5 5 1 3 0 Project Shepard 4 3 3 5 5 2.5 4 1 2 0 Project Novus (2) 5 5 4 3 5 3 2 2 3 0 Project Gia-Saurus 5 2 5 3 4 0 5 1 3 -3 22 32 28 19 26 20 25.5 23 26.5 29.5 32 25 wsb Memorandum (Draft) To: From: Date: Re: Monticello EDA City of Monticello Jim Gromberg, EDFP, Economic Development Coordinator Jim Stremel, PE - Senior Project Manager July 7, 2020 City of Monticello - Industrial Site Feasibility Studies WSB Project No. R-016234-000 Project Scope & Background The Monticello EDA requested that WSB complete an Industrial Site Feasibility Study on several � sites for a new industrial area that would facilitate the proposed Gia Saurus development as well � as future industrial growth. The study includes illustrations showing the potential new industrial U �; park designs using the Gia-Saurus project as an anchor tenant. The intent of this effort is to W provide a more in-depth study of the cost of utility infrastructure and transportation needs for the �, sites identified as potential future industrial development areas. The City identified six potential � sites for the proposed new industrial park in conjunction with the potential Gia Saurus project. The sites are identified as follows: 0 0 � � � � M � � z � � J 0 a a w z z � � W � z w > a a z W x 0 � • West Camron Avenue • East Cameron Avenue • I-94 Site • Spike/Otter Creek Site • North 85th Avenue Site • South 85th Avenue Site The proposed Gia Saurus project has several criteria that limit the ability for sites to be viable candidates for the facility. Those criteria include adequate acreage to support a building with the dimensions of 1,500 feet by 100 feet with the ability to double the building footprint with a second facility of the same size and dimensions. In addition to the actual building area, a separation between the two phases of 100 feet was also included to allow for access issues resulting in a building footprint width of 300 feet. The site will also require areas for employee parking, truck access, etc. requiring additional acreage forthe proposed project. In addition to the building dimensions, the company has requested a 1,000-foot setback from residential uses. The report does not include any review of the site suitability (geo-technical study, environmental review, wetland delineation, endangered species, or archeological reviews) that may affect the location of the proposed facility. In addition to reviewing the viability of the identified sites to support the proposed facility, the EDA also requested a review of the infrastructure required to serve the Gia-Saurus project and the estimated costs associated with the future development of the industrial area. Because of the fluid nature of the potential development and the current process for updating the comprehensive plan, the projected industrial growth and land uses would follow the existing plans or studies whenever possible. Interior streets, water and sewer, and storm sewer infrastructure are based on an estimated per linear foot cost. The use of a single cost per linear foot will allow for the sites to be compared consistently to each other regardless of the final design. The layout concepts for each of the sites could be adjusted depending on the future development and the internal infrastructure adjusted accordingly. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility- Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 2 The EDA also requested that sites be estimated on the total additional development potential, accounting for additional available land near the proposed sites. The estimated development potential would be based on a 30% lot coverage for light industrial following the parameters that are currently being used for the updated comprehensive plan. In addition, the City recently received the estimated TIF generation for the proposed facility to project potential revenue generation. These TIF projections use a value of $90 per square foot for tax purposes and that value was used in the projections for the potential new property value for the industrial park sites. The use of these standard values will allow for consistent comparison of the potential sites. When determining the estimated acquisition cost of the property the most recent Wright County Assessors value was used for all the sites. While the actual property cost may be different it allows for the consistent comparison of the potential acquisition costs of the property. The scope of the project did not include the engagement of any landowners to gauge their wiliness or lack thereof to sell the identified property. The first step in the process of reviewing the identified sites was to determine if the property could physically support the proposed facility based on the information provided by the company. This step allowed for the potential exclusion of some sites reducing the expenditures required for additional review. Based upon the criteria, the following preliminary review of the sites has been developed regarding their capability of accommodating the proposed facility. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 3 West Cameron Avenue Site: Based on the illustration, the site could only support the facility on one site without the filling of identified wetlands. The site is limited to the 300-foot-wide buildable area and would not allow for access around the facility based on the location of the wetlands abutting the facility. Based on this limitation the site should be removed from further consideration and no additional design work was completed. 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' � � �L i � � � �� Ie�K �. � � . �' , . `� -- - f .Y�_ � �!��; I � �^?�, + 1� � . - . � i � 1. � ,:'�� V • f .. n �� I � _�t . � �_ r � �; 5 ��t •` •;xr ; .J , � ! �..*R�. � "� �" � ' y � ' � - :e. � i �� .�' � ,� � _ � �� ' ___ __... �' -- .� —�- .�-. � � . e ��''� �� . . ',-'rf ,yy �... _.r � :i. "�� . � . �� +� . _ _. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello - Industrial Site Feasibility Studies - Draft July 7, 2020 Page 4 East Cameron Avenue Site: Based upon the illustration the site could support the proposed facility in several areas and layouts. The site warrants additional consideration for the proposed project and the development of a new industrial park. i '`_, ;;} '"� �'►7�, � .� � \,�,��1y1 �� . ^^ i�'�a �. L ._ �� , � .:W L,�.,,,., . .- fa� , � � �.. . 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K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 5 I-94 Site: The site as indicated by the illustration shows the required building would not be possible based on the required setbacks. Based upon this finding the site was removed from further consideration. � . '� L. ~ '� A. ' r .. � 7 ♦ "�;:LIJ� 1.'I�Ln,F,L,F • . .�«,�. , ' � I;UL`� t;C]L3i1` • �� +�..f�w ,�' � ,� �. � � � �, ti � , ` �� .'-�� • �.. �• t' � yr, ' �' � � � � � � � 6 �•. •, J+, . , : r `�'f . T \\ 7�y �!'�i'- �%i•`a�r- ' , '* �[ �t \4.., � � �Y„i� • � � �` - •'�Y�. ,� � �� Y �. - w ,� z -- - � � >� �:�� ,;`� �.� �,, '` ` �. � � ,,'` ��'� _ ,'� a �' v . s , r ��J _ � il rC ` = .. \ _ <� wh.� . . . � ,•'� . , r� -r {. . � �, 4W r � c � ' d r. i� �� t 1 > 1' � ��. 1 ! . �, `� +� r% z � �� ". . ,�..��► �`�� _ �� .,,�� , O�� r��'';: � :� qr K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 6 Spike/Otter Creek Site: The site is located adjacent to and includes a portion of the Otter Creek Business Park. Once again, with the overlaid setback requirements for the facility, the site does not have the area needed for the proposed building. Based upon this finding the site was removed from further consideration. r, � ��(.�, � �r�� -�ei" Ir �,p � r . / � . ��,It��, , �- S/'�(� � r . ��,. �`* � � �` � � ""` ,*. . . , :, "�� ' � � ,y � .� �, i , ;�� `. . �,,, ; ,: - .'•. -� J � � �. J � - -. . _.�� !!:7 r — f , ._ � / � "U ! _ ��,� ` �,�, s, � � . . � , h+I'�.. ♦ � � �. � . , rm' �:-� °� ' , ,,� �f�*+� • ' � � � � �p� t, �;, -�; ,� � �� '. �.�,+ 'I ial �y . � _ ` �� * ; � '� . .. . _ ,�.�'�'�� '�; , � . „��, .- �� * , �.�,�� ,�#�� +Y �• � x F rp„ ��_� .M ��-�_. . � �� *��• �" ,�. � 4 h � � • �.�- - --'�-'- - - ---� � �rr� � � �_�.� �a 3 �� _ � K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 7 North 85th Avenue Site: The site is located north of 85th Street to the east of Highway #25. The site, as indicated by the illustration, can accommodate the proposed facility in the SW corner. Positioning of the facility in this area would also allow for the development of the infrastructure that could also serve the property to the south of 85th Avenue. This site warrants additional consideration as a possible location forthe new facility. �� , �r�w �.- � +qlr�,^ �i � - j- �q.,��+..�- � �� g,� _� � f 1 ,+ 4�� ' 'f/' �".�• � � �f �'�• � �� •�- ..•�� ',�,y' . �,�� ' f� ��,�� 1�� 1� i.. � 4 �i �.� .,a � . ' � r �r s r.� �.� . �� • 3�:. ' ,� L �, ..,�'� � � .� � i'� , ' � +r �,� � �q � � . . , . �. .r�r' -�' � �� , �' _.' �i'�' ' l� O"� '� � r"''. :`3.�""� .'�.�li�:�}� _ � N 1.,�� 4'�`i-�� ,r.� • •. • .. ..1� F � .. "�F� �i'�i =`vil��Z � .M. a • � ��I�/tw��'+�� ..i� M` � - ....",�i � � *�# ��y r V"► r � _ � � �• . � � *� # ' 7 3 � � �+ L�s � :«�� '�r I � �' P� .. � � • A�' I �� . "F•, j�r* �' ., z�l� , • .«' I + � 'Y�1 I •rs 'i c � �,� ��..� rr� �• • � � _ � "! R ''�, :,. f , y 'r � -� r .. . �.,. _y� t � , { y i �r+� �"'`�. 'I ' �''� � � - � ".T �, . '� _ � � �� /' a . w� ✓ f L_ '� K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx � �� City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 8 South 85th Avenue Site: The site is located south of 85th Street to the east of Highway #25. The site, as indicated by the illustration, can accommodate the proposed facility in several locations so there is significant flexibility in the positioning of the facility. This site warrants additional consideration as a possible location for the new facility. • �,�- , , �F * y' � .. _ y�'" �i.l�� r � � � ;;�,� � �' � r , � �'' " . � �,� �`,.. � . � �� ;��, ,+I` :� i��.rr tI7 .�. —�--- � ,� �_i �� • �. . � R`' � `� �='� ` "� �r� = � �:� �� . �. � ' ' + � � �[ � � -- - fi_ � �� ' .t t��s+r� - :r ,- � '� ��. '�+"':�` � � � '�" 'r. � i �' � �--' � �:� � ' . . � �� _ � � 4,�', �. : �' � �" �;�:a! � �i'' �` J J' _ � �� ( � ._i,� . � � , �� ; - � � s..� � �� I � � �� ; � ..� � � • � �x � `'�"-�_� � _� � �, .. � ��, �;.� `; h� �,, :,�� i �� Jlwrtr�;:!'� �.., s.� g ' � .i�rr�r�.. .': ��.,s �#�, r ,�ip� �� `��Y .' ti�A�'^' .� � y1T �e. .j�. � 9i s!' J• . y� ��1r�q r"`, ��{ y� r�'� � '�.' �, �; ��;�''� s�� ,..-s_ �R' t f � .r i.�� + ,. . r � � " � _ � . �� Sd�r?;J '�'''. ��j °•. ... �- .-�.�� . i ..,. .d._. - � .�.., �, s` ` d: _ - � �� The above figures were created as to scale drawings; however, they do not follow a constant scale and as a result they are for illustrative purposes only. Based on the above information, it is recommended that the EDA continue to focus on the East Cameron Avenue (Exhibit A), North 85th Street (Exhibit B) and South 85th Street (Exhibit C) sites as potential locations for the proposed facility. Information and materials used in the preparation of this report were collected from the City of Monticello, Wright County, MnDOT, and other impacted agencies. This data included: • Land Use Strategies document — Lakota • Industrial Land Demand and Absorption Study — WSB • Interchange Land Use Study — NAC • NRI/A — WSB • Interchange layouts — WSB • Wright County Long Range Transportation Plan • 2005 Heritage/Jefferson at Monticello AUAR — WSB • Solar development research, MOAA 2016/2017 - WSB • 2004 Water System Plan • 2005 Northwest Area (Otter Creek) Lift Station Technical Memorandum • 2018 Chelsea Road Utility and Street Improvements • 2019 Southeast Service Area Sewer Extension Technical Memorandum • 2019 Comprehensive Water Resource Management Plan — WSB • Existing and historic traffic volume data • Survey/topographic data previously obtained or readily available • Wetland and floodplain locations from available GIS or other mapping K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 9 Site Location No. 1— East Cameron Avenue Site Information & Background The site is located near Orchard Road and abuts Cameron Avenue west of Interstate 94. The site is comprised of 4 PID numbers and is 259 acres in size. The site is crossed by a creek limiting the flexibility for the future development and significantly reducing the area that could be developed. The table below lists the parcels and the size of the parcels. PID Number Size (acres) Tax Value ($) 21-31-00-09-2101 37 251,700 21-31-00-09-1200 35 254,400 21-31-00-04-3100 131 861,100 21-31-00-04-4200 56 317,800 Totals 259 1,685,000 Based on the above chart, the average cost per acre is $6,505.79. That amount is based on the most recent property valuation of each of the four PID's completed by the Wright County Assessor. This is based on the gross acreage and not on the net developable acreage. This study did not delineate wetlands or other features that may result in a reduction in the available property for development. The proposed facility (using the 30% lot coverage) would require approximately 23 acres for the development of both phases of the project. Based upon the gross acreage of the site there would be an additional 236 acres for development. Once again, using a 30% lot coverage for building area, a total of 3,084,048 square feet of space would be created. Using a standard value of $90 per square foot for light manufacturing facilities when fully developed could generate an estimated $277,564,320 in total market value for property tax purposes. Gross Area Development Potential — East Cameron Avenue Gia-Saurus Remaining Lot Remaining Building Value/ Potential Site Property Coverage Area (SF) (SF) SF Market Value 23 Acres 236 Acres 30% 10,280,160 3,084,048 $90 $277,564,320 In addition to the gross acreage ability to support the project, the EDA requested that WSB develop 3 potential designs that would allow for the development of the facility. The EDA was also concerned about how the facility may look from the street. A view, using ArcView software, is included showing the potential facility as it may look like from Cameron Avenue. The view is only based upon the known criteria and would change depending on the exact design of the facility. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 10 Concept A- East Cameron Avenue y �ti�- � �� . .i. � ' �3oii i _ �n 2 ''I �>. ' � ,,. ,` t5��, s i= Y �'� :��53� a,�l'` !��` �".�5� v� � � � -� "#�,� � '4a � �+�`^ -~. >x ' �� . ' + �� %::-� ��. � '- �9 �ki'v"'. ��q�,j'� �.. p -.' � S � . �! � ' � � �'�"• �%.3. � � ' "*�` \�� X' z' �.�,M .:�(�� - �Ff�--^�� r � ,:.� :Y� n . .. � nr��'�` L �� . �y . � �i- � �...`C �m -�� . ` ♦' ! i �� ; r�i �� _.-�r. '� , `"� • a, � t? . ; r � ` ' ' � �-. _ "f ,'��'�"; _ .::, +� ' ,ti, '�'' +� �,+�`�" e.' . t � `�� qY' . . � / �' �.F�.�.' �+ �� X � 3� � 4 ,�[��q� �1.� y'�� { � �� + .�:�. -zJ l ; � ��!\ 1 7F• . �' .. -.a�`.. 1 �.. �� _� =:A:� �� ,�'r • �`��: ' �f� � rr�.�+ �Qa�'�ww�- , 3 e �� • ��`�� _��1!_�,� rl. " `�� } � s�� ,a��' �� I� .� 4 4 � _:�` � �% ' .w , �� _ _ i SIYfP ' / �. . I°� ��stl,:r� o{-�M, u1`r � a°� �S9 I � � � !F"" � �' � f .'!� hr "°�.t,d�^a J" y'-; � �� ;S $� � � . F � Ip� '�' .x r 4 � �1, � . , ( `°` � '`'�,y9 � t � T Mf �� Ihl P ? `-� ; t �Y?�1. > r�wn �'�` g'�'�'�� Ar �#��e �'�F e,` �fk� wf arin ..�i ��, ��'� a�9 t. .. d rt ��/ ��\i -0.".�;t i�'+ +�,� Y��„` � _. .*� � '�`'W9 T ' � . � My �r `.. ! �.,. AM . ' � 6 � � f '.,_ � '. � + -' :.`,;� w � d�,��. � . , �iy+� ,. �ea:; �. � � . � �, a� , � s � � �,,� �; � � � �t �. 1 N {I �Js . '�� `y 'r�+y, X�'e'. I'f4p� �+_�. � � q4 x..�°w " "-:+. .� � _' d � ��_ Y �py, �' � ,;_ � 9 9 .Fr! p� �.- �`�� . . .. � �..R E . . ..� . .. .. i9 � �.. I.' �. Concept A- East Cameron Avenue Street View � :�= --- :: .:: __ - - - . ,,, ,,, . .. . - - - - :� s..i� i�, i:y.cS� i:3_3a.1i..1J3.�tL��LI 11.u�;:i.ii,i�a�� i3e�u�.0 � ----- � � �� Y �� , � K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx �� City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 11 Concept B— East Cameron Avenue .� 4 . }�^ ��3 � 3 �� . � �? � -� M� +� . . ..,. �`` X.�� n}� ' � 4 � � / � 9 _ '�'�'� ,. � ��`\\� �� ` *� � A+� i � S IYf P7� { � '. 1N ' � �� I� \ � �" Ay.�.��1 F � �� +��t�l `` . . ' ��" ` "1 ' .� j �zj'v"'�y .^i +.i'� r�� x . � .� ! I r '_ �� . � . ��' �.Y. � '� . L1 f � � � . �(\ a":.tP ii �C !F" f � � . - �Fs--^�� - r . � ;��4 � � :'�1� r . _�"+a} �'� Ssr "�-ee��+^+d" y'.; nr��'�` L �� .. �y � � �s � ♦ �1 c.re R � E# :t f �. , � � i,� ,,;;. � ' * 1..�; �� .. � � ,��','i� � ^' �� g �r'ph° � .:` ' "' � ��. l� ' ! � �� r �. �.� � jr �� `�{ � , � � � ,��."u�n � �E � y. � . . � e '�..1.� i � t `� 1 * y' � �. � � � e';F� � ,'Q��F�Ri� M ��y9�}'� r� ' ��n n,�,` . >� i�X � , � � & e��q�. �►.�`"' , �,1 �� ` � "�,��'& ,y �yia' e ", . N''� � � x` � �4. 1 '�z J l � . .�,� �� ,`�l� � ��''� .t ari„ �� 4$ � y7�i40ar-�ra$�9'; .� �P-r � � . ,.�� . � cn. ��, � \i ��.�"�t �',��4�� .'j�� i � ��`PT� � 'r ts�• �- �.' .• e-,A'+ �. -'�._ .`'°� r �<��#i �r � ' � ��w" 1-.'� � �'� 6dn�;: , � 3F ._ , . ,�i' � � _.. �. _ �" � _ �� a �� e ' „ 1, � 1'� � �.,� a , _.. �„ � • ,.. :� ��- ' i � � � kd•a �: �j ._ � �I . � ,'t i K,' e r - � d l�., �I" �,� +,; �. � � �af £' t' �f� •4� � , ' �"' �';<� �:' �°` ,. 9 �' �,� �, "";',� � 1 � � z �. X t �� s� r � 4 $y I,� p � I y \ �'o h � � . ,�,', �,�4 ''��1''�i � � P�' '` r,r++'.iG-�( ��.� r ..�+„s. f+"�' � ) I� � _ �a� i x P"' �� '' -- �:: � 9y, # y�.� � e ,�, r�` _� ''7 i ' s ,C4 � r. °. �� - . .'S�� GiaL� I�i.. �d� . , . f..z ,� . . .. . _ .. is f _.._ .. . Concept B— East Cameron Avenue Street View .-�..-..� �� _- _ ..� ��{ �— �,F — ::: •:::-- - - -- �� ...,�,ae��s�r �• - ... � .:_ _.��- - � _= �Il�f�:�..1�:1ii.��:�c3.3'�.i1:13�1��1.571:1J:l.iJ.�.i.13�.1�iJ:i;�1�3'33�� .— : �� L - - _ - _ � � � ��. . .. _ _ _ r � �' J � 6 � � �'! � �� . � � , � K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 12 Concept C— East Cameron Avenue �� +� �` �� ! � `� '� i -r \ �� _ �n # '�. � . � - :��y3� iW�� `� ��.`d' �� M1 � ... M�� `-�� A� .M1,. � � \� . � � � lm ' � � I� � �, � ' t j "te�'v� �f `��%'' �' . , � ,..� �i, � ' �'' ��,„. � ..i! � . �`� ?� � .z ti, , -�Fs--^�� r . i ��` �; -�I'� r � �.. .�k' L , � k .. �r �nr �_'i t ! i � „".. , � _4 \ ��; �'�' ��i; `"� `�""� �� '' e��4... * .`.i� . . � r � "` t�*, � �?��'� � , * � ` '1 � R . � � � 1.� Y' . � ` t.fi�.•. ��+ �� ," > '�3 eK� �I►, � �` +»d�' : .:_ � v,, ,� � �\� � �`� . , .:.',,, ' J �� qp' ' � ;� ¢ I. �y.' �_ � i�� '� .. s. ;�� 4�� p5' f ,�$y �I rl' �." �3 e ��"' �1�f��': d�..,n 1 ��. _,w+� �.�, :�t+s ._ " `�� } , s�� ,a�� • I� ;. rt q, w� ya'* .s .��i � .�.� �-:+4° Yd�� +,ym _'i � `� ,. S T . .'� 'wr i9 " 1� �.. . �:�A�y . . 6 �1 ...1: . �"'..� s `h' � ,��`�,�,'+' � d�,. 1 , � � �� - �I� � � d�t .• � ' $` :1d•a � �' � y �f , y; � � :��f � r � .. �Y� ,y , 4� �y � � �e ,; ��, ' k Vt'S : .. y, � x�1 �4i r�Tdla f �` � � ,•�' ,i � ' �t y `. A .`y h � '`rt' �� T" , i d � ��_ r � ��r i � s ,A'... �.�' ��..�., .. .. ( �m, � . . ..A . - .. .. f9 � �.._ . . Concept C— East Cameron Avenue Street View � - _ - - s„�.� _ - - _ �` �� 1 I,J �.l i i l i � l, ,; I.I I IJ � l ,�; i��i J»1id3�uuu�fwiu�vu�.0 ��ti r.a,ll��,��,�� —�- –. . � �— �� r � � Development Potential - East Cameron Avenue Concept Gia- Remaining Lot Remaining Building Value/ Potential Saurus Property Coverage Area (SF) (SF) SF Market Value S ite A 51 Acres 191 Acres 30% 8,313,862 2,494,158 $90 $224,474,263 B 38 Acres 206 Acres 30% 8,994,269 2,698,281 $90 $242,845,258 C 44 Acres 204 Acres 30% 8,884,933 2,665,480 $90 $239,893,196 K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 13 A possible future interchange with I-94 is planned near this location, which would provide more direct access to future industrial land parcels as can be seen in the draft Comprehensive Plan update land use map. We understand the future interchange is likely decades away and the existing transportation system would need to be able to support these industrial land parcels until such a time that an interchange is built. Existing Conditions Transportation: The impacts from the proposed area development were evaluated for the roadway segments of CSAH 39 (I-94 to Briarwood Avenue) and Cameron Avenue (CSAH 39 to 116th Street) and the intersection of CSAH 39 at Cameron Avenue. CSAH 39 is an east/west two-lane Major Collector. The roadway has a rural cross section with 12ft lanes and 8ft shoulders and a posted 55 MPH speed limit in the area of the site. The existing (2018) Average Daily Traffic (ADT) on CSAH 39 is 3,100 vehicles per day (vpd). Cameron Avenue is a north/south City street with a 22ft rural cross section, providing access to the local area. Based on the existing uses the ADT on the roadway is approximately 200vpd. The intersection of CSAH 39 and Cameron Avenue is side street stop controlled, stopping Cameron Avenue. There is an eastbound bypass lane and a westbound right turn lane on CSAH 39 at the intersection. Drainage: This site is located within the MR-22, MR-22A, and OC-09 drainage areas. The northern portion of the site drains to an existing culvert that when crossing I-94 ultimately drain to the Mississippi River. The southern portion of the site drains south to Otter Creek. In general, there are no storm sewer or ponding systems that exist within the site areas. Environmental: Based on the county's Minnesota Land Cover Classification System (MLCCS), the majority of the site is cultivated agricultural land. Wetlands are primarily located near the center of the site, along Otter Creek, and along the northeast edge of the project boundary. A review of the DNR's Natural Heritage Information System (License Agreement No. 1003), no rare species or natural communities have been located within the project area. The project area is located approximately 2,000 feet west of the Mississippi River Corridor Critical Area (MRCCA), within which some rare species have been recorded. Because of the current and historic use of the site for agriculture, the wildlife typical of the site will be those species accustomed to frequent disturbance. Development of the site is not likely to impact fish, wildlife, or native plant communities. Utilities: The nearest existing public utilities are described below for both watermain and sanitary sewer. Watermain — There is an existing 16-inch DIP watermain extended west from Chelsea Road just south of the Otter Creek Lift Station (LS), which is located approximately half a mile southeast of Site 1. There is also an existing 12-inch DIP watermain in River Street West on the east side of I- 94, which is located north of Site 1. Sanitary Sewer — There is an existing 30-inch PVC sanitary sewer with a depth of 37.5 ft that extends west from the Otter Creek LS, located southeast of Site 1. The existing pumps in the Otter Creek Lift Station have a firm capacity of 189 gallons per minute (gpm). There is also an existing 10-inch PVC sanitary sewer with a depth of 24.2 ft in River Street West on the east side of I-94, located north of Site 1. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 14 Transportation Planning In order to determine the transportation improvement needs on the existing roadways and intersections, projected traffic volumes were determined for the area. Projected build traffic volumes for the completion of the Gia Saurus Phase 1 and full build (2040) of the area were determined based on the anticipated future development land use in the area and the City's current Transportation Plan. The following sections outline the projected background traffic growth, traffic generation from the study area, as well as the traffic distribution and projected traffic volumes. Background Traffic Growth: Traffic growth in the vicinity of a proposed site will occur between existing conditions and any given future year due to other development within the region. This background growth must be accounted for and included in future year traffic forecasts. Reviewing the historical traffic counts in the area, traffic has stayed somewhat constant or dropped in the past few years. Based on this review a factor of 1.1 (0.5%/year) over a 20-year period was used to project traffic from existing conditions to the 2040 analysis year. Proposed Development Area Traffic Generation: The traffic from the area includes both trips from the proposed Gia Saurus development as well as other potential development in the study area. The Gia Saurus development is proposed to be completed in two phases. Phase 1 is proposed to include 150,OOOsf of manufacturing uses and 25,OOOsf of office use. Phase 2 is proposed to include an additional 150,OOOsf of manufacturing use. The City's current Transportation Plan includes proposed land use estimates in each of the Traffic Analysis Zones (TAZ) throughout the City. In the area of the proposed site there is an additional 100,OOOsf of light industrial use and 280 new single-family residential units. The trip generation used to estimate the proposed area traffic is based on rates for other similar land uses as documented in the Institute of Transportation Engineers (ITE) Trip Generation Manual, 10�h Edition. Table 1 below shows the Daily, AM peak and PM peak hour trip generation based on anticipated Gia Saurus site, and; Table 2 shows the trip generation for the light industrial and residential development for the balance of the area. Table 1— Gia Saurus Site Traffic Generation Planned Use Size ADT AM Peak Hour PM Peak Hour Phase 1 Office 25,000 sf 244 29 29 Manufacturing 150,000 sf 590 93 101 Total Phase 1 834 122 130 Phase 2 Manufacturing 150,000 sf 590 93 101 Total Phase 2 590 93 101 Total Full Development Trips 1,424 215 231 K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 15 Table 2— Additional Area Site Traffic Generation Planned Use Size ADT AM Peak Hour PM Peak Hour Residential 280 units 2,728 214 286 Light Industrial 100,000 sf 496 70 63 Total Additional Trips 3,224 284 349 Projected Traffic Volumes: Traffic forecasts were prepared for the year after the completion of Phase 1 of the Gia Saurus site assumed to be 2022 and the twenty-year design (year 2040) condition, representing the full development of the area. The traffic forecasts were prepared by adding the projected annual background traffic growth and anticipated area development site traffic generation to determine the 2040 Build traffic conditions. It was assumed that all access to the proposed area will be provided by Cameron Avenue from CSAH 39. This represents a worst-case condition for access and impacts on the area roadways and intersections. The estimated existing, Phase 1 completion and projected 2040 traffic volumes are shown below in Table 3. Table 3: Location and Pro"ected ADT Traffic Volumes Existing Projected 2022 Projected 2040 ADT Phase 1 ADT Full Build ADT CSAH 39 — I-94 to Briarwood Ave Cameron Ave north of CSAH 39 3,100 200 4,000 1,100 8,100 4,500 Transportation Improvements: Based on the traffic forecasting and analysis, transportation improvements should be considered for Cameron Avenue and the intersection of CSAH 39 at Cameron Avenue. The improvements to Cameron Avenue would be required with the initial Phase 1 development. Assuming the City design guidelines, the cross section would include a two-lane (12ft in each direction) rural roadway with paved shoulders (4ft minimum) and turn lanes at the primary commercial driveways. A right-of-way of 80ft would be recommended for a rural cross section and 60ft for an urban cross section. The intersection of CSAH 39 at Cameron Avenue would require initial improvements with the Phase 1 development including: providing southbound Cameron Avenue left and right turn lanes; conversion of the eastbound CSAH 39 bypass lane to a left turn lane, and; maintaining the westbound CSAH 39 right turn lane. The side street stop-controlled intersection would be maintained. As the area is developed, the City can continue to review the warrants for installation of a traffic signal system at the intersection of CSAH 39 and Cameron Avenue. Based on review of the Minnesota Manual on Uniform Traffic Control (MnMUTCD) traffic signal warrants, approximately 80% of the development would need to be completed to warrant the traffic signal system. When warrants are met, the City can work with Wright County for approval and construction of the traffic signal system. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 16 Utility & Infrastructure Planning Watermain: The proposed trunk watermain and sanitary sewer sizing and alignment are based on the 2004 Water System Plan, 2005 Heritage/Silver Spring Plan and 2015 Solar Proposal Utility Analysis. It is recommended that the 16-inch trunk watermain be looped through the northern boundary of the site and back east to the existing 12-inch DIP watermain in River Street West, as shown in the 2004 Water System Plan. Sanitary Sewer: There is an existing sanitary sewer lift station downstream of the Cameron Avenue/Orchard site (Otter Creek List Station) which may require upgrading to accommodate the entire proposed industrial park, but the capacity of this lift station would likely be adequate to serve the Gia- Saurus manufacturing site. The peak hourly flow must be confirmed with the manufacturing usage. The existing capacity of the Otter Creek Lift Station and various trigger points for lift station improvements are shown in Table 4. Once the peak hourly flow rate from the manufacturing site is determined, it should be compared with this table to determine what lift station improvements will be required. Table 4— Otter Creek Lift Station Tri er Points Limiting Capacity Existing Residual No. Sanitary Sewer Improvement Structure �gpm� Peak Hourly Capacity Flow (gpm) (gpm) 0 Existing Otter Creek LS Pumps Existing 189 7 182 and 6" forcemain LS pumps � Upgrade Otter Creek LS pumps Chelsea Rd 640* N/A N/A to capacity of 6" forcemain 12" gravity main Extend both forcemains along Chelsea Road and upgrade Otter 1,260** 2 Creek LS pumps to capacity of 16" forcemain minimum N/A N/A 16" forcemain "`The capacity of a 6-inch forcemain, assuming a maximum velocity of 8 fps, is actually 700 gpm. However, the 12-inch gravity sewer downstream of the discharge point of the Otter Creek LS forcemain has a capacity of 640 gpm. Therefore, in order to upgrade the Otter Creek LS pumps to 700 gpm, the gravity main downstream would also need to be upsized. **The minimum flow required in a 16-inch forcemain to maintain a velocity of 2 fps is 1,260 gpm. Therefore, at the transition from the 6-inch forcemain to the 16-inch forcemain, there will be a jump in flow rate from approximately 640 gpm to 1, 260 gpm. The capacity of a 16-inch forcemain, assuming a maximum velocity of 8 fps, is 5, 000 gpm. In order to serve the site, gravity sewer will need to be extended from the Otter Creek lift station west along CR 39. It is recommended that this gravity line be sized to 30-inches to act as a trunk line to serve a greater area in the future. Initially, this will be oversized for the Gia-Saurus site but will provide capacity for the additional development within the remaining industrial site areas and expansion of development further to the west. At full capacity with a 30-inch gravity trunk line, the lift station would require upgrading to accommodate a 16-inch forcemain discharge. Drainage & Stormwater Management: This site is located within the MR-22, MR-22A, and OC-09 drainage areas. Onsite development will need to meet the requirements described in the City's Design Manual. These requirements K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 17 include but are not limited to discharge rates that must not exceed existing rates and volume control of 1.1" off new impervious constructed onsite. Citywide modeling indicates that additional flood storage is needed within the MR drainage areas to accommodate flows through the existing 24-inch culvert that discharge the site crossing I-94. Rates will be limited to the capacity of the existing culvert. Environmental Constraints: A wetland delineation will be needed prior to development, and if any impacts to wetlands are proposed permits will be required from the Wetland Conservation Act (via the City of Monticello) and US Army Corps of Engineers. If impacts are proposed to Otter Creek, a permit from the Department of Natural Resources will also be required. Disturbance of over an acre of soil will require a NPDES permit from the Pollution Control Agency. If the total land conversion exceeds 80 acres or the industrial development exceeds 300,000 sf of gross floor space an Environmental Assessment Worksheet will need to be completed. Permits/Approvals This project as proposed will result in disturbing more than one acre of underlying subgrade material, and therefore, a National Pollution Discharge Elimination System (NPDES) permit will be required. Site development will need to meet the City of Monticello's Design Guidelines for Stormwater Management. A permit from Wright County and MnDOT will also be needed for the work within the county or state right-of-way and intersection improvements. Lastly, permits will be needed from the Minnesota Department of Health (MDH) and Minnesota Pollution Control Agency (MPCA) for the watermain and sanitary sewer extensions. Private Utilities There are private utilities currently located within the proposed project area. Known utility owners in the area include: • CenturyLink [Telephone] • Comcast [InterneUTelevision] • Wright Hennepin Coop [Communications] • CenterPoint Energy [Gas] • Xcel Energy [Gas/Electric] • Arvig [Fiber] • Mediacom [Fiber] • Zayo Group [Fiber] Project Cost Estimates Below are project costs for transportation improvements, trunk sewer/watermain extension, and regional storm sewer/ponding improvements based on the site layouts included with this report. In addition to these external site costs, a cost basis (Per LF) to estimate the internal site roadways, watermain, sanitary sewer, and storm sewer have been provided. Each opinion of probable cost incorporates estimated 2021 construction costs and includes a 10% construction contingency factor. Indirect costs are projected at 25% of the construction cost for overhead (engineering, legal, financing, administrative costs, etc). The table below provides a summary of the opinions of probable cost for the options under consideration. 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Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 18 Table 5: Estimated Project Cost Summary Estimated Project Costs - Site Location No. 1 Roadway Improvements (Cameron Ave) $1,025,000 Intersection Improvements (CR 39) $405,000 Roadway Improvements (Trunk Utility Extensions) $1,396,000 Watermain Trunk Extension $2,997,000 Sanitary Sewer Trunk Extension $3,996,000 Sanitary Sewer Lift Station (Initial) $176,000 Sanitary Sewer Lift Station (Ultimate) $1,013,000 Storm Sewer/Ponding $2,995,000 Total $14,003,000 Internal Roadways (Per LF) $300 Internal Watermain Looping (Per LF) $190 Internal Sanitary Sewer (Per LF) $180 Internal Storm Sewer (Per LF) $50 The per lineal foot costs for the internal site improvements in this area were assumed to be for a two-lane rural street section and a 10-ton pavement section design excluding sidewalks, trails, or other pedestrian improvements. The costs for roadway improvements for the trunk sewer/water installations were assumed to be a 24' wide pavement section excluding curb, trail, or other appurtenances. The cost of the internal watermain and sewer Per LF cost assumes 8-inch pipe. Internal site water or sewer (building services, looping) was not include with the trunk utility extension costs. The cost to obtain the proposed industrial site property, right-of-way for the potential public improvements, or to mitigate wetland and floodplain disturbances were not included. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 19 Site Location No. 2— North 85t" Street Site Information & Background The site is located to the east of highway #25 and to the north of 85th Street. The site is comprised of 1 PID number and is 79 acres in size. The site is flat and does not include any observable impediments to the development of the site. The table below lists the parcel and the size of the parcel. PID Number Size (acres) Tax Value ($) 15-55-00-22-1101 79 1,187,900 Totals 79 1,187,900 Based on the above chart the average cost per acre for the entire site is $15,036.70. That amount is based on the most recent property valuation of the PID completed by the Wright County Assessor. This is based on the gross acreage and not on the net developable acreage. This study did not delineate wetlands or other features that may result in a reduction in the available property for development. Gross Area Development Potential — North 85t'' Street Gia-Saurus Remaining Lot Remaining Building Value/ Potential Site Property Coverage Area (SF) (SF) SF Market Value 23 Acres 56 Acres 30% 2,439,360 731,808 $90 $65,862,720 K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 20 Concept A- North 85th Street �- �. � �,,�{ �, i� �,� � �x = � t ,.s�a+�� Y? T�" � I i iw�r. �rl i_ J �`�1 ,t.. �i �' `� '� f �:•� ��, f'� ,�,t � �l` -� �-, � �� E%�..�'ar.a,.�"•....w.r+�.e.- f:,:r �I�T LLr � A' (��:� �� l;�', �`, 'F.. � \ y!}''w 'e'p` E _ �7 � , . � ! ' , i1' ay ' 1 q- '.,' P� : ' F 1� � .,��:�� / . M f . _� i �,. � �' � ,�� y� '�- �+�'. I I �r � . , � ,r�. �� _r , , k, �� .4 � ��.� ?,� � r. .;ii .� ', � � � � �. �' ,, ,� � ��:s T �r�}; � � G_. � 1 •� ��. > �_' 's^� 1-- . ��a 4.` r�';� a� e..e''1'° � !. M 1-:�� _i'-�I� e�P�'� }T-��lF � .i+ L � _-, . NI F �i��I��a�y1 �e� ' � . � �,,.:�C.naCR�l��,','.� C` �c " s.'- xn ��, �';� r '��i��a�`�.: �� Concept A- North 85th Street -Street View � 1 �,, r f �� : � : `� ��`,� ♦ r M F r T. .^ � �j. '.IF ddt� F f�f. 1� ,f- �1l..- f rl �.a �♦ ` ' � ��F �. • \ ypy? � ,� (k [ p': �.'.M ��:�� r� ' � IRp"�� 4� p f 6 +i.e ' c 1 av ,I�"' l 11iw� �Lh�'A �.r�cti ..�"''b. ,� . rR�� f p " _ *{��y�'f,+ / �� ' �;�� 12l:� �1 a_ F �..�•y� � � fif��A �� 4��r�r@f �i � µ .' � � �D �� ti. Y � ; . w i '��f ' � , � y �\` - 1" ��, m r�r M�R� • e. ? � � rrvr .r CF� ( � �, .�x*s -'ssl� l: ,.� _ _— � �r P «�sa�� ,� �,9, , R�� `; . � � � r � ; �y� r ��... � � �' •re..a. �_� � . Y : ��;,, �"`� � ��i��:IE�IIIIilllfllmpt�ntoto:ora�uomo- � a= �a E r. r a�.�.......s.■.r..■■... ................... a t �t � � s��r�.��'��----------- � _ — - _�,,.r-„'"`_.... - � K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello - Industrial Site Feasibility Studies - Draft July 7, 2020 Page 21 Concept B- North 85th Street �- �. � �,,�{ �. i�` � �x . � t ,.s�a+�� A I I :: .r? �,�, r`�' t. a.x �. ,�i � t 'Y � � � s..,"f r .� �`�'B' . �" � 3rs� �,% 'T; ,�F;�� a+.' .I `� w. .... � � i � y� . �. eI•� ': y �t ` � h �` .eS4M.-jYtM.'wj�+ww�w�e�F+� T 4 .,..— ..�y'dA �:��'� 1 ��.�� ' ' �~ � �� 4,-. � � �..� � !� ^ �• 1 ` � F 1 � � � \ n y!j' - ' C�E � � ° . , �".� :'1' aq ' 1 y z.,� "'' P� �.. � . M f ._� i .. � � :��7�y,r >��-r 6+z�'. I I � �' ,r�. � _ � '_ w ' � �� :4` q � �� • d i u r., � �: � y,� � .i.�.. � �r� : � q 4 r' ,� ,J :��; T � ff�:- . .. ir- !L. ,� � 1 3 '! �.�. > �_' 's^� 1-- . ��a 4.` r�';� a� e..e''1'° � !. M 1-:�� _ -'�s :+a�" T-;a : 1 � . � � ..��p � � ` �L . �`_- , ,�� r � ��R�n, � �, f . I � � '-w ��- . �'�;fi K ��1��_ ��.. Concept B- North 85th Street - Street View �� .� � �. � j �.+ r /'� : � : `��`,� ♦ r M F r � •� � � �j. . 'IF ddt� F f�f. 1� f �1 �A �` �-'� . � a' � `� �y,� 9 . _� r' [ P��:,, ia4' �. ... � _ . i'p..r �" .' �� f 6 t R" �.,t�ct ..�"''L. °_ J . r 1 n.'',Ii" F j w � �� f p y " = j*��'.rAF � I rt l � ��:� . �f �yt� ��t�r a �f�.�VF ''.`.-. • @f , - .� f � - '"D � � = ti' � a . � w �- �...�� . �'�r�� ,� �� r �a`i - i � .�. m .r�r I�R, '� • ,. ? r � rrvr-��r'r �'F� ( �� _��:�..:� � ^r �. � 'a � �.. . ..c � � 'g, t R e yy� . �_A � I; . � � P �s� _� �... .4. . � `' •�Pe..m : �' i� �„-` �_ �� ,.. L � , - �;- . . 3� ..� �� I'S`,1r k- --. . . � �� :�-=-- `1 /�_ _ �� - � � -� � �__ �a"� � K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 22 Concept C- North 85th Street �- �. � �„�{ �, ��` ��,� � �x = , t �s�a73"� � I r? � � �� ,?-.,��+P, a �'�t �.� i � � � �: f �.�� p{4 a:- �� , �t. `�'"� �Y` - h 6 .� ir.a,.:....w.r�mrrV .�. �� u �►'�o�Y t� � � ' '� �� I4: � Y3 ■ w,. ... ! n e f + � '' I r, ��l + \ n y!Y" - 'r E -, :'{. t- �ay , � z.,� "'' r� � , k � � � i t � �y/ �:r F �'�dr.�l I �� !. i� .�"�.�. � " (. w , �+�V�� F q ��^ de u r.. ` � � : _ �' ,,:�.. � W r� : � � :� ' �� . ��; T � f',4':' ' _ .. � ..r �i.. J � 1 s i 1,,, e �� t. ��„` a � 6-.! �'1` � � 2 . �M 1 ;�� . . _''� :+a"� t-� �!F � . � . L `- � . -. = _ � ',P,�� F � s��i r � I t��.naRR��n� � � . � �; ��. �:. �� r �� 1 �"' r � ,' �` = � ��`� ♦ r 4 F r � .'� � .��' � . � ry'�n e 1}. ,r� r. �� .. F , ' ,� z�? r�+. � r k �t• '.M --�.�'"i� � � ��'� � - . ."'t "r S 1 n.�'Ii" f �I ^' i�'�n Is.lct `�"'m. F� . � . . � Rf� � yfF} �.�f�y� tA �RI rt � ��r� .i � .r�� '�'� ' + a � �f�.�� . @r _ a f � - '"D � � ='ti' � � � . a ., � �. .., - �• w � �f► y A�� ' �,, r .r. m f� �Rr . s`a y - ,1 r� kis'� � rrrr-��r�r CFI ( ,� {- l� �s _��:..� � , :� _ « . � �,9 + � 5w - �� ;'P � _._ ,� ' � � �... .4. . . � � �'�rr• `._ Y : ��;,, In Concept C, the lots along Highway 25 would be designed to allow for enough depth to allow for future development. This would accomplish by the placing of the parking requirements for the facility to the north and east of the building. Concept C- North 85th Street - Street View -, - - � . � _ _�,,-� K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx � ::� --_- _-- � =�_ 1 � _ _ City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 23 Development Potential — North 85th Street Concept Gia- Remaining Lot Remaining Building Value/ Potential Saurus Property Coverage Area (SF) (SF) SF Market Value S ite A 48 Acres 28 Acres 30% 1,219,680 365,904 $90 $32,931,360 B 33 Acres 42 Acres 30% 1,832,569 549,771 $90 $49,479,368 C 29 Acres 42 Acres 30% 1,842,152 552,646 $90 $49,738,115 Existing Conditions Transportation: The impacts from the proposed area development were evaluated for the roadway segments of 85th Street and TH 25 and the intersections of TH 25 at a future development street access, TH 25 at 85th Street and 85th Street at a future development street access. TH 25 is a north/south four-lane facility with two lanes in each direction and left and right turn lanes at 85th Street and left turn lanes at the future development street access between School Boulevard and 85th Street. South of 85th Street the roadway transitions to a two-lane facility. TH 25 has a functional classification of a Principal Arterial. The roadway has a posted speed limit of 55mph. The existing (2018) ADT is 13,500vpd. 85th Street (CR 106) east of TH 25 is an easUwest two-lane Major Collector County roadway. The roadway has a rural cross section with 12ft lanes and no shoulders with a posted 55mph speed limit in the area of the site. The existing (2018) ADT on 85th Street east of TH 25 is 910vpd. The intersection of TH 25 and 85th Street is controlled with a traffic control signal system with flashing yellow left turn phasing. The 85th Street approaches include dedicated left turn lanes with free right turn lanes at the intersection. Drainage: This site is located within the TH-21, TH-20, TH-27 and GL-07 drainage areas. The TH-drainage areas drain to the north to the wetland along Trunk Highway 25 and the GL drainage area drains to the south outside the city limits. In general, there are no storm sewer or ponding systems that exist within the site areas. Environmental: Based on a review of recent and historic aerial imagery, the site is cultivated agricultural land. Based on the National Wetland Inventory, one wetland is located in the northeast corner of the parcel. No DNR public waters or watercourses are located on the site. A review of the DNR's Natural Heritage Information System (License Agreement No. 1003), no rare species or natural communities have been located within the project area. Because of the current and historic use of the site for agriculture, the wildlife typical of the site will be those species accustomed to frequent disturbance. Development of the site is not likely to impact fish, wildlife, or native plant communities. Utilities: The nearest existing public utilities are described below for both watermain and sanitary sewer. Watermain — There is an existing 12-inch PVC watermain in 89th Street Northeast, located east of Site 2. There is also an existing 12-inch DIP watermain in Cedar Street, located north of Site 2. Sanitary Sewer — There is an existing 12-inch PVC sanitary sewer with a depth of 17.3 ft in 89th Street Northeast, located east of Site 2. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 24 Transportation Planning In order to determine the transportation improvement needs on the existing roadways and intersections, projected traffic volumes were determined for the area. Projected build traffic volumes for the completion of the Gia Saurus Phase 1 and full build (2040) of the area were determined based on the anticipated future development land use in the area and the City's current Transportation Plan. The following sections outline the projected background traffic growth, traffic generation from the study area, as well as the traffic distribution and projected traffic volumes. Background Traffic Growth: Traffic growth in the vicinity of a proposed site will occur between existing conditions and any given future year due to other development within the region. This background growth must be accounted for and included in future year traffic forecasts. Reviewing the historical traffic counts in the area, traffic has stayed somewhat constant or dropped in the past few years. Based on this review a factor of 1.1 (0.5%/year) over a 20-year period was used to project traffic from existing conditions to the 2040 analysis year. Proposed Development Area Traffic Generation: The traffic from the area includes both trips from the proposed Gia Saurus development as well as other potential development in the study area. The Gia Saurus development is proposed to be completed in two phases. Phase 1 is proposed to include 150,OOOsf of manufacturing uses and 25,OOOsf of office use. Phase 2 is proposed to include an additional 150,OOOsf of manufacturing. The City's current Transportation Plan includes proposed land use estimates in each of the Traffic Analysis Zones (TAZ) throughout the City. In addition to the Gia-Saurus development, the remaining area of the site could include an additional 210,OOOsf light industrial uses and 10,OOOsf of commercial/retail uses. In addition, there would be other potential development east and west of the development that would impact the operations of the future development street access on TH 25. This would include 100,OOOsf of light industrial and 100,OOOsf commercial/retail west of TH 25 and 100 single family residential units east of the proposed development. The trip generation used to estimate the proposed area traffic is based on rates for other similar land uses as documented in the Institute of Transportation Engineers (ITE) Trip Generation Manual, 10�h Edition. Table 6 below shows the Daily, AM peak and PM peak hour trip generation based on anticipated Gia Saurus site, and; Table 7 shows the trip generation for the balance of the development site area and adjacent development. Table 6— Gia Saurus Site Traffic Generation Planned Use Size ADT AM Peak Hour PM Peak Hour Phase 1 Office 25,000 sf 244 29 29 Manufacturing 150,000 sf 590 93 101 Total Phase 1 834 122 130 Phase 2 Manufacturing 150,000 sf 590 93 101 Total Phase 2 590 93 101 Total Full Development Trips 1,424 215 231 K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 25 Table 7— Additional Area Site Traffic Generation Planned Use Size ADT AM Peak Hour PM Peak Hour Balance of GIA Site Light Industrial 210,000 sf 1,042 147 132 Commercial / 10,000 sf 243 10 37 Retail Total Balance of Site 1,285 157 170 West of TH 25 Light Industrial 100,000 sf 496 70 63 Commercial / 100,000 sf 2,432 103 273 Retail Total West of TH 25 2,928 173 336 East of GIA Site Residential 100 Units 944 74 99 Total East of Site 944 74 99 Projected Traffic Volumes: Traffic forecasts were prepared for the year after the completion of Phase 1 of the GIA Saurus site assumed to be 2022 and the twenty-year design (year 2040) condition, representing the full development of the area. The traffic forecasts were prepared by adding the projected annual background traffic growth and anticipated area development site traffic generation to determine the 2040 Build traffic conditions. It was assumed that access to the development area will be from an intersection on TH 25 and an intersection on 85th Street. This represents a worst-case condition for access and impacts on the area roadways and intersections. The estimated existing, Phase 1 completion and projected 2040 traffic volumes are shown below in Table 8. Table 8: Location and Pro"ected ADT Traffic Volumes Existing ADT Projected 2022 Projected 2040 Phase 1 ADT Full Build ADT TH 25 north of future development access street TH 25 between future development access and 85th Street 85th Street east of TH 25 13,500 13,500 910 14,300 13,800 1,200 18,700 16,300 2,200 Transportation Improvements: Based on the traffic forecasting and analysis, improvements should be considered at the future development access street intersections on TH 25 and on 85th Street. In addition, improvements along 85th Street from TH 25 to the east directly adjacent to the proposed development sites to improve traffic operations and access. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 26 To accommodate the initial Phase 1 development the following improvements should be considered: • Reconstruction of 85th Street from the proposed development access street to where the existing turn lanes approaching TH 25 begin. These improvements would include widening the roadway to the City design guidelines, the cross section would include a two-lane (12ft in each direction) urban roadway with paved shoulders (4ft minimum). A right-of-way of 80ft would be recommended for a rural cross section and 60ft for an urban cross section. • Construction of the development access street intersection on 85th Street to include left and right turn lanes on the development access street, an eastbound 85th Street left turn lane and a westbound 85th Street right turn lane. This intersection would include side street stop control, stopping the development access street. • Construction of the development access street intersection on TH 25. Wth the initial Phase 1 development no additional improvements are required on TH 25. The development access street should include at a minimum a left and right turn lane. As the area east and west of TH 25 continues to be developed the intersection of TH 25 will require additional improvements and traffic control. This could include the addition of turn lanes and traffic signal control or installation of a roundabout. In either case an intersection Control Evaluation (ICE) would be completed to determine the appropriate improvement. When warrants are met the City would work with MnDOT and Wright County for approval of the improvements. Based on the projected traffic conditions and assuming the intersection of TH 25 and the development access street is constructed, no additional improvements would be needed at the TH 25 and 85th Street intersection. Utility & Infrastructure Planning Watermain: The proposed trunk watermain extension is based on the 2004 Water System Plan. The proposed 12-inch trunk watermain looping through the site would connect to the broader ultimate 16-inch trunk watermain loop in the future. If the ultimate 16-inch trunk watermain is not completed, then it is recommended that the proposed 12-inch trunk watermain be looped through the northwestern boundary of the site back to the existing 12-inch DIP watermain in Cedar Street. Hydrant flow tests should be completed at existing hydrants near the site to verify existing pressures and available fire flows prior to design. Sanitary Sewer. The proposed trunk sanitary sewer is based on the existing trunk sewer size and location, and the 2019 Southeast Service Area Sewer Extension Technical Memorandum. The existing gravity sewer at 89th Street appears to have sufficient depth to serve all of Site 2. Based on the 2019 SE Sewer Tech Memo, the limiting sewer downstream of Site 2 currently has a residual capacity of 794,000 gallons per day (gpd). The peak hourly flow must be confirmed with the manufacturing usage, as it will consume a portion of that capacity and may preclude other development in this sewershed. There is potential to utilize the remaining capacity for further development south of 85th Street, but again this would "borrow" the capacity for development in other nearby areas until the trunk line is installed. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 27 Drainage & Stormwater Management: This site is located within the TH-20, TH-21, TH-27 and GL-07. Onsite development will need to meet the requirements described in the City's Design Manual. These requirements include but are not limited to discharge rates that must not exceed existing rates and volume control of 1.1" off new impervious constructed onsite. Citywide modeling suggest that flood storage will need to be provided onsite to limit capacity downstream. Environmental Constraints: A wetland delineation will be needed prior to development. If any impacts to wetlands are proposed, permits will be required from the Wetland Conservation Act (via the City of Monticello) and US Army Corps of Engineers. Disturbance of over an acre of soil will require a NPDES permit from the Pollution Control Agency. If the industrial development exceeds 300,000 sf of gross floor space an Environmental Assessment Worksheet will need to be completed. Permits/Approvals This project as proposed will result in disturbing more than one acre of underlying subgrade material, and therefore, a National Pollution Discharge Elimination System (NPDES) permit will be required. Site development will need to meet the City of Monticello's Design Guidelines for Stormwater Management. A permit from Wright County and MnDOT will also be needed for the work within the county or state right-of-way and intersection improvements. Lastly, permits will be needed from the Minnesota Department of Health (MDH) and Minnesota Pollution Control Agency (MPCA) forthe watermain and sanitary sewer extensions. Private Utilities There are private utilities currently located within the proposed project area. Known utility owners in the area include: • CenturyLink [Telephone] • Comcast [InterneUTelevision] • Wright Hennepin Co-op [Communications] • CenterPoint Energy [Gas] • Xcel Energy [Gas/Electric] • Arvig [Fiber] • Mediacom [Fiber] • Zayo Group [Fiber] Project Cost Estimates Below are project costs for transportation improvements, trunk sewer/watermain extension, and regional storm sewer/ponding improvements based on the site layouts included with this report. In addition to these external site costs, a cost basis (Per LF) to estimate the internal site roadways, watermain, sanitary sewer, and storm sewer have been provided. Each opinion of probable cost incorporates estimated 2021 construction costs and includes a 10% construction contingency factor. Indirect costs are projected at 25% of the construction cost for overhead (engineering, legal, financing, administrative costs, etc). The table below provides a summary of the opinions of probable cost for the options under consideration. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 28 Table 8: Estimated Project Cost Summary Estimated Project Costs - Site Location No. 2 Roadway Improvements $898,000 Intersection Improvements $405,000 Watermain Trunk Extension $648,000 Sanitary Sewer Trunk Extension $618,000 Storm Sewer/Ponding $1,688,000 Total $4,257,000 Internal Roadways (Per LF) $350 Internal Watermain Looping (Per LF) $190 Internal Sanitary Sewer (Per LF) $180 Internal Storm Sewer (Per LF) $90 The per lineal foot costs for the internal site improvements in this area were assumed to be for a two-lane urban street section and a 10-ton pavement section design excluding sidewalks, trails, or other pedestrian improvements. The costs for roadway improvements for the trunk sewer/water installations were assumed to be a 24' wide pavement section excluding curb, trail, or other appurtenances. The proposed intersection improvements on TH 25 do not include the construction of a roundabout. The cost of the internal watermain and sewer Per LF cost assumes 8-inch pipe. Internal site water or sewer (building services, looping) was not include with the trunk utility extension costs. The cost to obtain the proposed industrial site property, right-of-way for the potential public improvements, or to mitigate wetland and floodplain disturbances were not included. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 29 Site Location No. 3— South 85t" Street Site Information & Background The site is comprised of 8 PID numbers and is 332 acres in size. The site is flat and does not include any observable impediments to the development of the area so that much of the site could be developed. The table below lists the parcels and the size of the parcels. PID Number Size (acres) Tax Value ($) 21-31-00-22-4203 22 292,300 21-31-00-22-4300 40 231,900 21-31-00-27-1300 40 231,800 21-31-00-22-4401 40 239,800 21-31-00-22-4100 40 261,900 21-31-00-23-3100 96 781,700 21-31-00-23-4403 27 169,700 21-31-00-23-3300 27 180,000 Totals 332 2,149,800 Based on the above chart the average cost per acre for the entire site is $6,475.00. That amount is based on the most recent property valuation of each of the eight PID's completed by the Wright County Assessor. This is based on the gross acreage and not on the net developable acreage. This study did not delineate wetlands or other features that may result in a reduction in the available property for development. Gross Area Development Potential — North 85t'' Street Gia-Saurus Remaining Lot Remaining Building Value/ Potential Site Property Coverage Area (SF) (SF) SF Market Value 23 Acres 309 Acres 30% 13,460,040 4,038,012 $90 $363,421,080 K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 30 Concept A— South 85th Street �� $'...� �� -R / � �.,r�s � ;: ' �, �� , �:,.. � �� .� f , � ' �_' � ��: :, s�.� , � �/ k� � � '�-". � ';f;' ,, t +� ��j � � _ ;,. • � ��i �1' - � "�� ;�� i �� K ��j�� _ EM�� - , � �:. ty�.. , +-,� x � � �'ll� Y � � � �. ;:, r ��_ ,� "�� r��.,t �w . _ �I �; . �, ,�' �"4 ■ � 4 *.;- # �► -, t�r' � � � . , � � _ ~� �� -� '""� r �� ' �.�� M,: �i+i '- -_� `t � �?, . y � � � �..� � �� • � "`'�� ` �� ' ' �' ; � 'i�� - e �� 1�, '; i . � �M � � �� . 'V�w�-� �j �---' .. t � `R .4Fi -�,-' � ,�� . . �� .' - k �J� � .. �rb _. �eR�. i�� IX � � � � a ' , ' '�'� `� �+ �� r �� .dl�y � �. � \ �� ' �; I . ��./�i�.,, — r i, . _�.w M' �- c8 �. � xy5`► ��M W � . " r _e-`R �::� '- t �� +-- �i ,� ��` ,= w. _ . �� °��_ �; -�'`�;',�t r �� "�u�� .'�, �� = . - � Concept A— South 85th Street -Street View f�unc��ae�nun��lllll#e17�01i�1 l��s/!l��l�ll�■ '_ — — _ _ __�_`_ K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 31 Concept B- South 85th Street Fa".a3'S.1 iA :.'I� ._. � ; � = W 7, I! . .'- • f . s�� Ir�f. 1e�V .�ei, � . � � • ' �"- �ltt�.�` GX!� ,�'%iw� ��.� t� � �%J S.. . .1�� ¢ •.. ',j � �J{g I�f,�iY.�.' i. s �' :,.� � 9 �~� j�'+` � � �,.T^r� V � �' _ . -. � — �f' �� ? �,i SJ,F� � �r�� d �� ' �� 1/' j�: � `. ',` il� „ ��,+�� A rr � `� � + i� "��.�,, ��I�,� ' �. � _ ,�,.�.�'� >, , �_: � � , .- f' � - . . .:��,._t' 'x ,M{' � - - � M x � .� �y � � �� -� , ; i �� _ . � ,.r. ;:, � s S, ��"+ /�, � � t �r, � � . . � � � �:3� � , -, -� ''� *''� t `�,� . � y�. ' �� '� � ' �e � ' � . �� I ' a;�! � �, � {w+�. ► , + , � �.��. � � •. . '!I y, � �r . �+ + �f� .,�' �: �' �� .,. y .,' ��/�� ,.� � , ,.p � � 1 ° -, .i . " , � '�� , } +k'� . t t, � � r � � ; '. �� I :s..� c = � �- �' - - - a � .. , _ � . _._...._ � . %/ � wi'� �, . -... . �'� . r �� ; �,� �— '�a - � �' �� ,!� � °� � ,�l � � ��1.y _ � li�} J �:, � ' _! �'�I�ir. — �, % � � " w " �" "� � j � 4� f .__ ti ..(��1�. •�•• ` sar�, ` R _�.r � * k > J . r — _ L ' F--w^ 3.."=' - .�., i� � T�� "_ t . . /f � . A� � � � * i ��k-�Y ��u�*� . ,��i �'i/�� . Concept B- South 85th Street - Street View � -�� -� �� ,.r'� � ��.. `. : - , _ -- - - _ � K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 32 Concept C— South 85t'' Street ,�/,�� - ��, .-;,�� :,`.� • � _� �.�. � ��g:i� i� ;� 'R.9�� "��si � J�, T �s 4 � 'eC p r.fr.l• •. " .�r–.�� .,:_ .� . _ �. _ . .. � j �. :.l '�/ _... — ..y (� 1�'�� #� I IN �I � �14 .y�� .. ��s�:� � �`vr ��-r1�iF ., `�- -� � . '� ,. �t.} ' �!' �"i . + + l �^ 1�._ .. -_ { - !� �� ./: ' � � .+" , � � � ' `i � 'f '+. — ` � _''� � + y, � _ �" .� f :_�: ��, ,_ 3 - - -�� t• ' �, '� , �p,". i ��' �f}. 4 , w�w• .I �� . i j s �_r� l � - '� � . �. .. ��' �.�- �,� � _� � - ; _ - � ,, _-� .:�,,�� , � � �� ,' . �-��'��,,�'`�w '� , .�� .��'� � .� � � � ..,� `� �+' w .t�''� �r. ��'�'w 'y. �' , r ,�'� � � � a � ' � '� �h_� � � t ��`J,��^� '�':� ,r.�%' �"i�/�'�., � � ��1 Concept C— South 85th Street - Street View K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 33 Concept D— South 85th Street ��a:j �� ,��,g� �, *� - _ i+�a'�+�..r�'d�#�:,'-s»i $�.'t.i`?�; �- _R . , , , a I, - . � - _ : ,: � � �h � r. .i� �� ; � , �/... . _� _ '� � � . .,. _ . . -; � ;.` - �r � �'-''`d' _ � �� R _ - ��'.�j�.�� r� , . � . ` - �:� r- ��y , � � �,,� . r ,r. ,. -�, 4 �► ., _, t� � _ -� �;�—�� T � � � �� +t j di � � �,• �.�". 4 , �. ��"J � � �" �^- ,,�'' � ��'`��. _ �y � �'`. � , �,�` ` �I� � � ��s ,�� " �.� ��_- µ -- �� i� , . '� �' , ,,�,��'�-:� .�iy ,� � _ � , ' , �'. `�,: �. ..,,,,,� � �., � �_.� �r � _ .a. , . —�r � i t ��.al�� "� '�r.�� s�a��':�i �'�+� �` � . – , Concept D— South 85t'' Street - Street View ,��,��e�+i��}�o�� K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 34 Development Potential — South 85th Street Concept Gia- Remaining Lot Remaining Building Value/ Potential Saurus Property Coverage Area (SF) (SF) SF Market Value S ite A 91 Acres 218 Acres 30% 9,485626 2,845,688 $90 $256,111,891 B 65 Acres 241 Acres 30% 10,488,377 3,146,513 $90 $283,186,174 C 72 Acres 233 Acres 30% 10,154,707 3,046,412 $90 $274,177,094 D 97 Acres 208 Acres 30% 9,071,370 2,721,411 $90 $244,926,990 Existing Conditions Transportation: The impacts from the proposed area development were evaluated for the roadway segments of 85th Street and the intersections of TH 25 at 85th Street and 85th Street at a future development street access. TH 25 is a north/south four-lane facility with two lanes in each direction and left and right turn lanes at 85th Street. South of 85th Street the roadway transitions to a two-lane facility. TH 25 has a functional classification of a Principal Arterial. The roadway has a posted speed limit of 55mph. The existing (2018) ADT is 13,500vpd. 85th Street (CR 106) east of TH 25 is an easUwest two-lane Major Collector County roadway. The roadway has a rural cross section with 12ft lanes and no shoulders with a posted 55mph speed limit in the area of the site. The existing (2018) ADT on 85th Street east of TH 25 is 910vpd. The intersection of TH 25 and 85th Street is controlled with a traffic control signal system with flashing yellow left turn phasing. The 85th Street approaches include dedicated left turn lanes with free right turn lanes at the intersection. Drainage: This site is located within the GL-07 drainage areas. The GL-drainage areas drain to the south to Gilchrist Lake outside of the city limits. In general, there are no storm sewer or ponding systems that exist within the site areas. Environmental: Based on the county's Minnesota Land Cover Classification System (MLCCS), the majority of the site is cultivated agricultural land. Some upland grassland is also present in the northwest corner of the site. Based on the NWI, a few wetlands are located within isolated depressions within the project. No DNR public waters or watercourses exist within the site. Based on a review of the DNR's Natural Heritage Information System (License Agreement No. 1003), no rare species or natural communities have been located within the project area. The nearest record is of a Blanding's turtle, located approximately 5,200 feet southwest of the site. Because of the current and historic use of the site for agriculture, the wildlife typical of the site will be those species accustomed to frequent disturbance. Development of the site is not likely to impact fish, wildlife, or native plant communities. Utilities: The nearest existing public utilities are described below for both watermain and sanitary sewer. Watermain — There is an existing 12-inch PVC watermain in 89th Street Northeast, located east of Site 2. There is also an existing 12-inch DIP watermain in Cedar Street, located north of Site 2. Sanitary Sewer — There is an existing 12-inch PVC sanitary sewer in 89th Street Northeast, located east of Site 2. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 35 Transportation Planning In order to determine the transportation improvement needs on the existing roadways and intersections, projected traffic volumes were determined for the area. Projected build traffic volumes for the completion of the Gia Saurus Phase 1 and full build (2040) of the area were determined based on the anticipated future development land use in the area and the City's current Transportation Plan. The following sections outline the projected background traffic growth, traffic generation from the study area, as well as the traffic distribution and projected traffic volumes. Background Traffic Growth: Traffic growth in the vicinity of a proposed site will occur between existing conditions and any given future year due to other development within the region. This background growth must be accounted for and included in future year traffic forecasts. Reviewing the historical traffic counts in the area, traffic has stayed somewhat constant or dropped in the past few years. Based on this review a factor of 1.1 (0.5%/year) over a 20-year period was used to project traffic from existing conditions to the 2040 analysis year. Proposed Development Area Traffic Generation: The traffic from the area includes both trips from the proposed Gia Saurus development as well as other potential development in the study area. The Gia Saurus development is proposed to be completed in two phases. Phase 1 is proposed to include 150,OOOsf of manufacturing uses and 25,OOOsf of office use. Phase 2 is proposed to include an additional 150,OOOsf of manufacturing use. The City's current Transportation Plan includes proposed land use estimates in each of the Traffic Analysis Zones (TAZ) throughout the City. In addition to the Gia Saurus development the remaining area of the site could include an additional 500,OOOsf light industrial uses, 100,OOOsf of commercial/retail uses, and 100 residential units. The trip generation used to estimate the proposed area traffic is based on rates for other similar land uses as documented in the Institute of Transportation Engineers (ITE) Trip Generation Manual, 10�h Edition. Table 9 below shows the Daily, AM peak and PM peak hour trip generation based on anticipated Gia Saurus site, and; Table 10 shows the trip generation for the balance of the development site area. Table 9— Gia Saurus Site Traffic Generation Planned Use Size ADT AM Peak Hour PM Peak Hour Phase 1 Office 25,000 sf 244 29 29 Manufacturing 150,000 sf 590 93 101 Total Phase 1 834 122 130 Phase 2 Manufacturing 150,000 sf 590 93 101 Total Phase 2 590 93 101 Total Full Development Trips 1,424 215 231 K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 36 Table 10 — Additional Area Site Traffic Generation Planned Use Size ADT AM Peak Hour PM Peak Hour Light Industrial 500,000 sf 2,480 350 315 Commercial / 100,000 sf 2,432 103 273 Retail Residential 100 units 472 74 59 Total Balance of Site 5,384 527 647 Projected Traffic Volumes: Traffic forecasts were prepared for the year after the completion of Phase 1 of the Gia-Saurus site assumed to be 2022 and the twenty-year design (year 2040) condition, representing the full development of the area. The traffic forecasts were prepared by adding the projected annual background traffic growth and anticipated area development site traffic generation to determine the 2040 Build traffic conditions. The estimated existing, Phase 1 completion and projected 2040 traffic volumes are shown below in Table 11. Table 11: Location and Projected ADT Traffic Volumes Existing ADT Projected 2022 Projected 2040 Phase 1 ADT Full Build ADT TH 25 north of 85th Street 85th Street east of TH 25 13,500 910 14,200 1,800 18,300 5,700 Transportation Improvements: Based on the traffic forecasting and analysis, improvements should be considered for the future development access street intersection on 85th Street. In addition, improvements along 85th Street from TH 25 to the east directly adjacent to the proposed development sites to improve traffic operations and access. To accommodate the initial Phase 1 development the following improvements should be considered: • Reconstruction of 85th Street from the proposed development access street to where the existing turn lanes approaching TH 25 begin. These improvements would include widening the roadway to the City design guidelines, the cross section would include a two-lane (12ft in each direction) urban roadway with paved shoulders (4ft minimum). A right-of-way of 80ft would be recommended for a rural cross section and 60ft for an urban cross section. • Construction of the development access street intersection on 85th Street to include left and right turn lanes on the development access street, an eastbound 85th Street left turn lane and a westbound 85th Street right turn lane. This intersection would include side street stop control, stopping the development access street. As the area continues to be developed additional improvements at the intersection of TH 25 and 85th Street would be needed including lengthening the existing 85th Street left and right turn lane vehicle queuing storage. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 37 Utility & Infrastructure Planning Watermain: The proposed trunk watermain is based on the 2004 Water System Plan, which shows an ultimate 16-inch trunk watermain loop passing through Site 3. The 16-inch trunk watermain should be connected to the existing 12-inch trunk watermain in Fallon Avenue Northeast and 89tn Street Northeast with the Site 3 development and looped per the Water System Plan as regional development progresses. Hydrant flow tests should be completed at the existing hydrants near the site to verify existing pressures and available fire flows prior to design. Sanitary Sewer: The proposed trunk sanitary sewer is based on the existing trunk sewer size and location, and the 2019 Southeast Service Area Sewer Extension Technical Memorandum. Based on this guidance, the ultimate trunk sanitary sewer serving Site 3 would be a 36-inch sewer in Fallon Avenue Northeast, and smaller diameter trunk sewers that extend west near the southern boundary of Site 3. The sizing of the smaller diameter trunk sewers should be reviewed once the peak hourly flow from the manufacturing site is known. These ultimate trunks sewers and the resulting capacity will be needed prior to full development of all of the Site 3 areas. Alternatively, if a 12-inch sanitary sewer line is extended from 89th Street Northeast (Featherstone Development, see Site 2 utility exhibit) to Site 3 at a minimum slope, the existing depth can serve the northerly portion of Site 3. Based on the 2019 SE Sewer Tech Memo, the limiting sewer downstream of the 12-inch connection currently has a residual capacity of 794,000 gallons per day (gpd), which is equivalent to approximately 1,100 residential units at an average flow rate of 180 gpd/unit with a peak factor of 4.0; this is also equivalent to 248 industrial acres. However, this capacity was projected to be entirely consumed by the 10-Year Growth Area identified in the 2019 SE Sewer Analysis, which does not include any Site 3 areas. Therefore, interim service to Site 3 via this sewer would preclude development in another portion of the 10- Year Growth Area. In other words, any area developed within Site 3 would have to be removed from the 10-Year Growth Area until the ultimate trunk sanitary sewer in Fallon Avenue Northeast is completed. Drainage & Stormwater Management: This site is located within the GL-07 subwatershed. Onsite development will need to meet the requirements described in the City's Design Manual. These requirements include but are not limited to discharge rates must not exceed existing rates and volume control of 1.1" off new impervious constructed onsite. Environmental Constraints: A wetland delineation will be needed prior to development, and if any impacts to wetlands are proposed permits will be required from the Wetland Conservation Act (via the City of Monticello). A US Army Corps of Engineers permit may also be needed, if they are determined to have jurisdiction. Disturbance of over an acre of soil will require a NPDES permit from the Pollution Control Agency. If the total land conversion exceeds 80 acres or the industrial development exceeds 300,000 sf of gross floor space an Environmental Assessment Worksheet will need to be completed. Permits/Approvals This project as proposed will result in disturbing more than one acre of underlying subgrade material, and therefore, a National Pollution Discharge Elimination System (NPDES) permit will be required. Site development will need to meet the City of Monticello's Design Guidelines for Stormwater Management. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 38 A permit from Wright County and MnDOT will also be needed for the work within the county or state right-of-way and intersection improvements. Lastly, permits will be needed from the Minnesota Department of Health (MDH) and Minnesota Pollution Control Agency (MPCA) for the watermain and sanitary sewer extensions. Private Utilities There are private utilities currently located within the proposed project area. Known utility owners in the area include: • CenturyLink [Telephone] • Comcast [InterneUTelevision] • Wright Hennepin Coop [Communications] • CenterPoint Energy [Gas] • Xcel Energy [Gas/Electric] • Arvig [Fiber] • Mediacom [Fiber] • Zayo Group [Fiber] Project Cost Estimates Below are project costs for transportation improvements, trunk sewer/watermain extension, and regional storm sewer/ponding improvements based on the site layouts included with this report. In addition to these external site costs, a cost basis (Per LF) to estimate the internal site roadways, watermain, sanitary sewer, and storm sewer have been provided. Each opinion of probable cost incorporates estimated 2021 construction costs and includes a 10% construction contingency factor. Indirect costs are projected at 25% of the construction cost for overhead (engineering, legal, financing, administrative costs, etc). The table below provides a summary of the opinions of probable cost for the options under consideration. Table 12: Estimated Project Cost Summary Estimated Project Costs - Site Location No. 3 Roadway Improvements (85th Street) $2,174,000 Intersection Improvements (TH 25) $810,000 Roadway Improvements (Trunk Utility Extension) $3,653,000 Watermain Trunk Extension $5,832,000 Sanitary Sewer Trunk Extension $6,804,000 Storm Sewer/Ponding $4,481,000 Total $23,754,000 Internal Roadways (Per LF) $350 Internal Watermain Looping (Per LF) $220 Internal Sanitary Sewer (Per LF) $200 Internal Storm Sewer (Per LF) $90 The per lineal foot costs for the internal site improvements in this area were assumed to be for a two-lane urban street section and a 10-ton pavement section design excluding sidewalks, trails, or other pedestrian improvements. The costs for roadway improvements for the trunk sewer/water installations were assumed to be a 24' wide pavement section excluding curb, trail, or other appurtenances. The proposed intersection improvements on TH 25 do not include the construction of a roundabout. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 39 The cost of the internal watermain and sewer Per LF cost assumes 8-inch pipe. Internal site water or sewer (building services, looping) was not include with the trunk utility extension costs. The cost to obtain the proposed industrial site property, right-of-way for the potential public improvements, or to mitigate wetland and floodplain disturbances were not included. Conclusions and Recommendations All three of the identified sites can support the proposed Gia Saurus manufacturing facility based upon the parameters that the company has provided. The sites allow for various layouts of the proposed facility. The 10 designs can be adjusted in a variety of ways to allow for the new facility as well as reduce investment internal to the site for required infrastructure for the proposed project. The layouts can also be adjusted to provide the EDA the opportunity to create additional areas that could be developed to further leverage the investment created by the proposed project. This flexibility can allow the EDA to create some long-term plans for the area and how the industrial park will develop into the future. In reviewing the 3 recommended sites, the EDA will have created a significant amount of property for future industrial development. The tables below show the amount of gross property that will be created with each of the sites and the length of time to absorb the property. Industrial Pro ert Absor tion Timeframe Site Gross Acrea e Rate Acres Years East Cameron Avenue 236 Acres 1 Acre/Year 236 Years North 85th Street 56 Acres 1 Acre/Year 56 Years South 85th Street 309 Acres 1 Acre/Year 309 Years Site Gross Acrea e Rate Acres Years East Cameron Avenue 236 Acres 5 Acre/Year 47 Years North 85th Street 56 Acres 5 Acre/Year 11 ears South 85th Street 309 Acres 5 Acre/Year 61 Years The above charts are based on the recently completed Industrial Property Study which, based on the past absorption rates, projected the need of between 1— 5 gross acres of property annually. These projections did not include the proposed Gia-Saurus project need for 23 acres. It would be anticipated that the 23 acres would be an anomaly and not repeated on a regular basis. Additional Development Considerations The EDA will need to weight the cost of creating additional industrial property and the carrying costs associated with that development in determining the site and how large of a site that should be pursued for the development of the industrial area. The proposed project is estimated to generate approximately $1,968,823 in TIF over the life of the Economic Development District for Phase 1(150,000 sfl. Based upon the land assigned by the Wright County Assessor for each of the sites, the City would be able to fund the purchase of the East Cameron Avenue and North 85th Street Sites. The purchase of the entire South 85tn Street site would result in the deficit of $180,977. K:\016234000Wdmin\Docs\Feasibility Report\1. Monticello Industrial Site Feasibility - Draft 07-07-2020- Final Version.docx City of Monticello — Industrial Site Feasibility Studies - Draft July 7, 2020 Page 40 However, the TIF projections are based on only the completion of the first phase of the project and should they complete the 2�d phase, the TIF generated would increase to $3,981,369 which would clearly cover the cost of the entire property for each site. The EDA also will need to keep in mind that the TIF inay allow for the purchase of the full site not just the area for the proposed project. The e�ra land could be placed in a TIF district as projects are identified and are TIF eligible, to generate additional revenue to help cover the cost of future infrastructure improvements. This is important if the property takes a significant length of time to fully develop increasing the EDA's holding costs. If the full cost of the property acquisition is covered by the first project, the EDA has limited greatly reduced holding costs. This value, to the EDA, is compounded when other sources of funding are identified to help finance the initial infrastructure improvements. Utility & Transportation Infrastructure Considerations All three of the sites will require watermain and sewer utility extensions to serve the proposed industrial sites. For Sites 1 and 3, the City may want to consider extending trunk watermain and sewer utilities to not only serve the proposed sites, but also future development adjacent to these areas. Site 2 would not necessarily require trunk utilities to serve the proposed development area as watermain and sewer could be extended from 89th Street (Featherstone Development). As an alternative (interim) solution, Site 3 could also utilize watermain and sewer extensions from the same location on 89th Street (Featherstone Development) and extend through Site 2 to serve an area south of 85th Street (northerly areas of Site 3) essentially delaying the installation of trunk utilities. Wth that said, utilizing the remaining capacity in the 12-inch pipe for either Sites 2 or 3 would "borrow" capacity from other potential development elsewhere until the trunk mains are installed. In all cases, the capacity to serve other industrial sites in the area will need to be evaluated further once a final site and layout is determined. The City may request that Gia Saurus (and other developments) fund all or a portion of the utility extension costs including the trunk mains; The developer may also be required to pay trunk utility charges. Transportation improvements would also be necessary to improve access to each of the site areas. For Site 1, improvements to Cameron Avenue and the intersection of Cameron Avenue and CR 39 would be required. For Site 2, improvements to the existing site access on Highway 25 north of 85th would be necessary as well at an upgrade of 85th along the south property line. For the Site 3 area, upgrades of 85th along the northerly boundary would be necessary. For both Sites 2 and 3, the existing intersection control on Highway 25 at 85th Street would be adequate to serve these development areas, but extension of the left and right turning lanes should be considered as development in the general areas increases. Site 2 would require fewer transportation improvements to serve the site. List of Figures and Appendices Appendix A— Site Location No. 1— East Cameron/Orchard Area Figure 1.0 — Site Location Figure 1.1— Utility Entension/Improvements Exhibit 1— Beacon Reports Appendix 8— Site Location No. 2— SE Area N of 85t'' Street Figure 2.0 — Site Location Figure 2.1— Utility Entension/Improvements Exhibit 2 — Beacon Reports Appendix C— Site Location No. 3— SE Area S of 85th Street Figure 3.0 — Site Location Figure 3.1— Utility Entension/Improvements Exhibit 3 — Beacon Reports K:\016234000Wdmin\Docs\Feasibility Report\1. 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