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IEDC Agenda Packet 11-02-2020AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Monday, November 2, 2020 — 7:00 a.m. North Mississippi Room, Monticello Community Center In keeping with safe practices and minimizing contact and potential community spread of the COVID-19 virus, the IEDC meeting will be conducted as a virtual online meeting. Participants can choose to attend remotely via Go-To: Web: https:// 1� obal.�otomeetin .� com/join/294416277 Phone: (571) 317-3112 � Access Code: 294-416-277 Members: President-Joni Pawelk, Vice President-Randy Skarphol, Mayor-Brian Stumpf, Darek Vetsch, Kevin Steffensmeier, Steve Johnson, Wayne Elam, Luke Dahlheimer, Dick Van Allen, Don Roberts, Andrew Tapper, Mike Carr, Elizabeth Calpas, Kari Moorhouse, Meghan Hanson, Thomas Conboy Liaisons: Jeff O'Neill, Angela Schumann, Jim Thares, Marcy Anderson, Jolene Foss, Dave Tombers, and Tim Zipoy 1. Call to Order 2. Approve Minutes: a. September lst, 2020 meeting minutes 3. Consideration of Adding Items to the Agenda 4. Consideration of Update on 2020 Hospitality Study 5. Reports (Verbal Reports): a. Economic Development b. Planning Commission Agenda (attached) c. City Council d. Chamber of Commerce 6. Adjournment (8:00 a.m.) MINUTES INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, September lst, 2020 — 7:00 a.m. North Mississippi Room, Monticello Community Center The IEDC Meeting was held remotely. Members Present: Joni Pawelk, Randy Skarphol, Kevin Steffensmeier, Steve Johnson, Wayne Elam, Luke Dahlheimer, Dick Van Allen, Andrew Tapper, Elizabeth Calpas, Kari Moorhouse, and Thomas Conboy Members Absent: Brian Stumpf, Darek Vetsch, Don Roberts, Mike Carr, and Meghan Hanson Liaisons Present: Angela Schumann, Jim Thares, Marcy Anderson, Jolene Foss, and Dave Tombers 1. Call to Order Joni Pawelk called the Regular Meeting of the IEDC to order at 7:00 a.m. 2. Approve Minutes: .�, a. Au�ust 4, 2020 meetin� minutes ANDREW TAPPER MOVED TO APPROVE THE AUGUST 4th, 2020 MEETING MINUTES. STEVE JOHNSON SECONDED THE MOTION. MOTION CARRIED 11-0. 3. Consideration of Addin� Items to the A�enda None 4. Consideration of 2020 Manufacturers' Recognition Activities (Earlv October 2020) Economic Development Manager Jim Thares presented a list of activities that are options for recognizing manufacturing firms in the City of Monticello during Manufacturers Week which the State has designated as October 1 through October 7, 2020. The proposed activities include: a Certificate of Recognition, accompanied by a nice cover letter; recognition messages on the City owned electronic billboards at the Fire Hall and the Liquor Store, similar recognition messages on the electronic media system (TV monitors) located at the MCC and an article in the newspaper. The estimated cost is less than $500.00. The EDA will be asked to approve funding for the activities at their September 9, 2020 meeting. The primary cost is the Certificates. Consideration of Economic Development Chapter - Monti 2040 + Comprehensive Plan Update Angela Schumann, Community Development Director, provided an overview of the Monti 2040 + Comprehensive Plan and the economic development chapter's goals and objectives. There is a proposed large increase in the amount of land being guided for industrial use. The draft plan designates three industrial areas. One is for light industrial uses, a second area is designated as employment campus for industrial firms that have Industrial and Economic Development Committee Minutes — September 1, 2020 Page 1 � 3 higher numbers of employees, while a third area is designated as general industrial for warehouse and more transportation intensive industrial development. Schumann also mentioned the dovetailing of the Central Mississippi River Regional Partnership (CMRP) which is the regional planning effort that is currently occurring as adding more insights and understanding into the City's Comprehensive Planning efforts. The EDA will be holding a workshop on September 9, 2020 at 4:30 p.m. where the consultants, the Lakota Group and WSB, will lead a review of the draft economic development chapter via GoToMeeting. The IEDC members are invited to login and watch the meeting and ask questions as well. The goal is to have the entire draft plan available for review and approval by the City Council in December 2020. 6. Reports (Verbal Reports): a. Economic Development Jim Thares provided an update on the Small Business Emergency Funding Grant Program which is utilizing CARES Act funds to provide grants of up to $5,000 for businesses that have been negatively impacted by the pandemic shutdown and restrictions. There has been a good response and to date the EDA has approved 19 grants with several more applications submitted for the September 9, 2020 EDA meeting. The prospect list was also reviewed. Thares noted that UMC is realigning their schedule for its 53,000 square foot expansion project and is expecting construction to begin in early November and the new building to be open and ready to use in early to mid-July, 2021. All other components of the proposal are the same, with a total of 43 new FTE jobs to be created. Staff has also spent a lot of time on the Project Gia-Saurus prospect. This firm makes medical gloves and is looking for a site for a two phase 385,000 square foot facility. The total number of new jobs would be about 205 FTE. The City is looking at applying for grant funding from the U. S. -EDA (Economic Development Administration) and MN-DEED. A land feasibility study has been completed and it identifies three sites that could work for the proposal. The total cost of phase 1 is estimated at $55,000,000. The second phase would be similar in total cost. b. Planning Commission Agenda (attached) Angela reported that items on the Planning Commission Agenda for September 1, 2020 were all public hearings for mainly minor code amendments and smaller development amendments. There is also a public hearing for a preliminary and final plat for a two-lot subdivision. One of the sites is where the developer is proposing a child daycare facility. The EDA also reviewed a preliminary GMEF loan application from the developer for the child care facility. c. Citv Council City Administrator, Jeff O'Neill, was not able to attend the IEDC meeting though Angela Schumann and Jim Thares both provided comments on the City Council's Industrial and Economic Development Committee Minutes — September 1, 2020 Page 2 � 3 approval of a preliminary 2021 budget and property tax levy. The levy is projected to increase by about 3.1 percent +/- under the proposal. The final budget and levy will be set in December, 2020. d. Chamber of Commerce Marcy Anderson, Monticello Chamber of Commerce Director, gave an update on the upcoming annual Chamber Golf Tournament. The fundraiser was postponed in May due to COVID and is set for September 24, 2020. All sponsors and golfer slots have been filled. The Chamber Board is optimistic that it will help raise funds to support the Chamber of Commerce programs. 7. Adiournment LUKE DAHLHEIMER MOVED TO ADJOURN THE MEETING AT 7:59 AM TOM CONBOY SECONDED THE MOTION. MOTION CARRIED, 11-0 Recorder: Jim Thares ` Approved: November 2nd, 2020 Attest: Jim Thares, Economic Development Director Industrial and Economic Development Committee Minutes — September 1, 2020 Page 3 � 3 IEDC Agenda: 11/2/20 4. Consideration of Update 2020 Hospitalitv and Lod�in� Demand Studv Completed bv Hospitalitv Consultin� Group, Excelsior, MN (JT) A. REFERENCE AND BACKGROUND: The 2020 Hospitality Study is being presented to the IEDC to familiarize members with the findings of the report. The Hospitality and Lodging Demand Study was recently completed by Hospitality Consulting Group, Excelsior, MN. The EDA accepted the Study at its August 26, 2020 meeting. The EDA authorized entering into a contract to complete the Hospitality and Lodging Demand Study on February 26, 2020, prior to the COVID-19 shutdowns. In mid-March, after the pandemic response shutdowns, Stephen Sherf, principal of Hospitality Consulting Group, recommended that the Study be paused until clarity about the lodging industry was better understood. After being informed of the EDA's decision to end the contract (June 10, 2020 meeting), Mr. Stephen Sherf, requested to instead provide an abbreviated summary Study. The abbreviated Study is based on review of 20191odging data and interviews that were completed prior to the pandemic shutdown. Al. Staff Impact: There is a low staff impact in presenting the recently completed 2020 Hospitality Lodging Demand Study to the IEDC. A2. Budget Impact: There is a minimal cost to present the Study to the IEDC. The total cost for the abbreviated Study was $3,050 with about 25 percent of that amount used for data purchases by the consultant. The EDA General Fund budget contains a line item for Miscellaneous Professional Services from which funding for the Study was sourced. B. ALTERNATIVE ACTIONS: No Motion — Information Only C. STAFF RECOMMENDATION: There is no staff recommendation for this item as it is provided as an informational update to the IEDC to build awareness of the Hotel and Lodging Demand Study's findings. The information provided in the Study should offer good quality market demand data and guide interactions and process steps with prospective hotel developers. D. SUPPORTING DATA: A. Hospitality and Lodging Demand Study H�s italit l� Y cvNsu�zi�vG ��v�P HOTEL MARKET REPORT MONTICELLO, MINNESOTA March 2020 Prepared for: City of Monticello 5315 Eureka Road • Excelsior, MN 55331 (612)867-1649 Hos italit � � C�NSLJLTING GR�UP Ms. Angela Schumann, AICP Community Development Director City of Monticello 505 Walnut Street Minneapolis, MN 55362 Dear Ms. Schumann: The Hospitality Consulting Group is pleased to present the accompanying report entitled: "Hotel Market Report - Monticello, Minnesota". Incorporated within this report are discussions of the local and area market conditions, identification and characteristics of the competitive hotels, and an analysis of their performance in recent years. We were in the process of updating the hotel market study that we prepared in August 2015 when the Coronavirus resulted in a major disruption to the hotel industry. Due to the uncertainty in the amount of time the hotel industry will require to recover, our studywas terminated. This reportrepresents the workthatwas performed priorto the study termination. The information contained in the report documents the hotel market as it existed prior to the disruption in the economy and therefore will serve as a useful baseline for future hotel development efforts. May 18, 2020 ,�!'o.a �e�e�.�! �.�:` f � �re�+...� , .I��. HOSPITALIT'Y CONSULTING GROUP, INC. 5315 Eureka Road • Excelsior, IVIiV 55331 (612)867-1649 Hotel Market Report - Monticello, MN Pa,�e 1 BACKGROUND Monticello, Minnesota is a prosperous community located along Interstate 94, midway between Minneapolis and St. Cloud. It functions as a sub-regional center for shopping, business, and healthcare services between St. Cloud and Maple Grove. A retail study performed by the McComb Group1 in 2011 identified a relatively large retail market area that encompasses an approximate 10-mile radius and included 93,500 people. The study found that Monticello can support an additional 131,000 square feet of retail and food service space. Three of the Monticello hotels are economy-oriented properties, while the fourth is a midscale limited service hotel. The newest hotel is 20 years old. Visitors and guests to Monticello who desire more upscale lodging accommodations or more extensive amenities must travel to one of several surrounding communities to find such hotels. In recent years, several hotel developers have expressed interest in developing a new hotel in Monticello to provide newer and more upscale hotel accommodations than what exists in the present supply. To assist in these efforts, the Hospitality Consulting Group was retained to research the market support for a new hotel and to recommend the size and scope of facilities appropriate for this market. This study was completed and issued in August 2015. The following letter report presents an update of the Monticello market as of March 2020. We were in the process of updating the 2015 hotel market study when the Coronavirus disrupted the national and international hotel industry. Due to the uncertainties in the hotel industry will, our study was terminated. This report represents the work that was performed prior to the study termination. The information contained in the report documents the hotel market as it existed prior to the disruption in the economy and therefore will serve as a useful baseline for future hotel development efforts. LOCATION Monticello is located in Wright County, approximately 37 miles northwest of the Twin Cities of Minneapolis and St. Paul and 27 miles southeast of St. Cloud. It is located along Interstate 94 at its intersection with State Highway 25. I-94 is a major east-west traffic route that bisects the state. Highway 25 is a north-south corridor between the interstate and U.S. Highway 10, an important route to St. Cloud and 1 Embracin� Downtown Monticello, McComb Group, Ltd.,2011 Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 2 north central Minnesota. Highway 25 is the only Mississippi River crossing between Clearwater and Elk River and is on the National Scenic Byway Route, and the Mississippi River Trail Bikeway. There are four lodging facilities in Monticello, of which three carry national franchises. However, these hotels are not able to meet the needs of travelers who seek higher quality accommodations. We have determined the primary market for a new Monticello hotel by analyzing drive times to the surrounding towns that have such accommodations. This market area is defined by the proximity of St. Cloud, Albertville, Rogers and Maple Grove, and the hotels, restaurants and shopping options available in these communities. The hotel market area is smaller than the trade area because lodging accommodations are typically selected at the location that is nearest to a traveler's destination. While people residing in outlying communities may come to Monticello for shopping, health care and professional services, visitors to these communities are more likely to stay in the closest hotel that meets their quality and service requirements. Thus, Monticello's primary hotel market is restricted by the proximity of communities that have competitive hotels. The determined market area for a new hotel, shown on the map on the following page, includes the neighboring towns of Big Lake and Becker. The irregular red line on the map depicts a 15-minute drive time. DEMOGRAPHICS Population The market area experienced a large increase in population over the last decade. Population data for Monticello, the identified market area, and Wright County is presented in the table below. Between 2010 and 2018, the county population increased by nearly 10 percent, while Monticello increased by 8 percent. Hospitality Consulfing Group � �a � � a � o o� Y 6� � .:.�V � �Y. �ii ` . � p S H 1 [d G ..... _' �.d m o v ' � ..� ............. Yc:.....— .�` �.._........... .. v.s; x � ......... .,i� � � � w........m.... � ................ . ....� r m � # o z m - �. ,.,,. m `�� zo � o � _ o p `m a L 0 0: _ E � o ��'`:.a�i � -' w y� - ° x _ S�t. � ° �: N � �".� o � o �� : ¢ �m E - � ° � a � �o � o � - � m �n � -� o = � � o � �' 'A °' Y O m O ��o..N J.. '�6� o Z .. ° .� O C ° �� o � � a =o ,-�fm o � z : �.... V N � - ' u' c ��9 � � y a ° r�w I'a c o � V ; .- a�I � Y � o O T'n /� ' � o :t O rF + p aF � m a � � � � a o -� V Y o - _ � . : C � � °�� q � 3 � � �o � � � ZO m�1 o � o � o V ,� m �;� m � w $ � 0 .............�.......................................................................... � Z O 2 r% Ij �:j N _ � ��o Z N 5�i � � wn� _ � x� o o V � c � �:.�'�� LL V Q E � o ��. 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Hotel Market Report - Monticello, MN Pa,�e 4 POPULATION CHANGE Primary Market Area Monticello, MN 2010-2018 2000(1) 2010(1) 2018(2) Change Monticello 8,544 12,759 13,752 7.8% Big Lake 6,059 10,060 11,456 13.9% Becker 2,673 4,538 4,856 7.0% Silver Creek 2,332 2,335 2,510 7.5% Total 19,608 29,692 32,574 9.7% WrightCounty 89,986 124,700 136,510 9.5% Source: 1.U.S. Census 2. Mn State Demographic Center The 2018 population within Wright County is estimated to be 136,510 and is projected to increase by another 26 percent to 171,416 by 2030z. Between 2014 and 2018 the number of households in Monticello increased by 291 to a total of 4,6933 households. This represents a compound annual increase of 1.9 percent. Household Incomes The median household incomes for Monticello, the identified market area, Wright County, and Minnesota are presented in the table below. Between 2000 and 2010, the median household income of Monticello increased by more than 38 percent; it increased by 5 percentbetween 2010 and 2018. Median household income in the county increased by 26 percent between 2000 and 2010, and by 20 percent between 2010 and 2018. The median is the midpoint at which there are an equal number of households with larger and smaller incomes. The median household income in Monticello is estimated to be $65,938 in 2018, which is 3.6 percent below the state median. Positively Minnesota US Census American Community Survey Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 5 Monticello Big Lake Becker Silver Creek Wright County Minnesota MEDIAN HOUSEHOLD INCOME Primary Market Area 2010-2018 2000 2010 2018 Change $45,384 $62,891 $ 65,938 $50,658 $61,941 $ 79,612 $50,714 $60,021 $ 87,083 $42,500 $52,507 $ 58,125 $53,945 $67,963 $ 81,881 $56,874 $59,126 $ 68,411 Source: U.S. Census; 2018 ACS 5-Year Estimates EMPLOYMENT 4.8 % 28.5% 45.1% 10.7% 20.5% 15.7% Employment is a strong indicator of an area's economic health. The graph below shows that Wholesale & Retail Trade and Education, Health Care & Social Services are the two largest employment categories in Monticello, accounting for 47 percent of the total employment. Manufacturing businesses account for 14 percent and are generally strong generators of lodging demand. Public Administration 2% Other Services J 3% Professional Business arcs, Monticello Employment Entena�nment & Recreation 1% Other 181 Manufaduring 14� J' Wholesale & Retail Educ., Health Care, & Trade Socfal Services 26% 21% Leisure & Hospitality 10% 5ervices Finance, lasurance, &� Z� RealEstate Infonnatlon� 2% 1% Source: Minnesota DepartmentofEmploymentand Development Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 6 Major Employers Monticello has four large companies that provide the largest source of employment. It also has a number of manufacturers that generate hotel demand. These companies are profiled below. Companv Name Xcel Energy Cargill Kitchen Solutions CentraCare Health-Monticello Ultra Machining Company WSI, Inc. Bondhus Suburban Manufacturing Genereux Fine Wood Products Production Stamping Aropl� Corp. JME Monticello Electro Industries Hoglund Bus Company Twin Cities Die Casting Source: City of Monticello MAJOR EMPLOYERS Product f Service Energy Food Products Health Care Precision Machining Precision Machining & Mfg. Tool Mfg & Distribution Mechanical/Industrial engineering Cabinets & Counter Tops Metal Stamping & Fabrication Injection Molding Concrete Construction Products Emplo,�� 630 435 267 210 130 97 77 67 65 52 50 Electric heating products 48 Bus Sales & Distribution 44 Aluminum & Magnesium die casting 25 Xcel Energy operates Sherco, an electric generating nuclear power plant in Monticello. It completed a$665 million upgrade in 2013 that will boost output and extend the life of the facility. Its operating license has been extended through 2030. This facility needs to be re-fueled and maintenance performed every two years for which 700 to 1,400 workers are brought in and stay in area hotels for up to several months. Sherco owns over 4,000 acres around the nuclear plant and is working with the City of Becker to attract industrial users. Northern Metal Recycling purchased 75 acres and moved its operations from Minneapolis to this location lastyear. The business park is under serious consideration for a$600 million Google Data Center on 300 acres. The construction of the center would employ approximately 2,000 workers over an 18- to 24-month period and its operations would employ around 50 people. Last year Minnesota regulators approved a contract for Xcel to provide electricity to the center. The city is seeking nearly $25 million in state bonding for infrastructure for the business park and the Minnesota Department of Employment and Economic Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 7 Development has provided a$726,000 grant to improve access from Highway 53 to the park. Xcel also operates a coal-fired generating plant near SHERCO which is the largest in the Midwest. The company has announced plans to retire two of its three generators by 2023 and replace them with a smaller plant fueled by natural gas. Cargill Kitchen Solutions is a leading marketer of further processed egg products. It operates a research & development department on site, as well as the company's sales and marketing activities. It is a subsidiary of Cargill, Inc., the largest privately held company in the nation, which is headquartered in Wayzata, MN. CentraCare Health-Monticello is centered around a 25-bed critical access community hospital. Services include a physician's clinic, Urgent care, Birthing Center, Imaging, Medical/Surgical Care, Rehab and Extended Care, Monticello Cancer Center, Sleep Center and Wound Care. The Center has 150 medical staff members. Ultra Machining Company is a precision machining company with a specialty in the medical and aerospace industries. The company also develops prototype parts and does some assembly. It has a 72,000-square foot facility in Monticello. Unemployment The unemployment rate in Wright County as of September 2019 was 2.3 percent, a level that is slightly lower than the statewide Minnesota rate of 2.5 percent and significantly lower than the national unemployment rate of 3.5 percent. The unemployment rate in the local economy trends very closely with the state. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 8 4.0% 3.5% 3.0% 2.5% 2.0% U�empf�yment �tate �September) 1S% 1.0% 0.5% — 0.0% — 2014 2015 2016 2017 2018 2�19 ♦—�WrightCounty —p-9Vlinr2esota Source: U.S. Bureau of Labor Statistics SURROUNDING COMMUNITIES In order to understand the dynamics of the area lodging market, we have provided a summary of Monticello's trade area and the surrounding communities, which are shown on the map on page 13. Monticello hotels capture demand from Big Lake and Becker, while they lose demand to Rogers and Maple Grove. They also lose demand to Albertville, but gain demand on occasions when the hotel there is full. Trade Area A market study performed by the McComb Group (see footnote 1) found that the healthcare facilities, big box retailers and professional services in Monticello result in a relatively large retail market area that encompasses an approximate 10-mile radius with a total of 93,500 people. The population of this area was projected to increase to over 104,000 by 2015. The secondary trade area was found to extend west to include Clear Lake, Clearwater and Annandale and had a population of nearly 33,700 people. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 9 Big Lake Big Lake is located 3 miles northeast of Monticello on Highway 10. It has an estimated population of 11,046 and is growing, stimulated by its location on the North Star com- muter train line that operates between Big Lake and downtown Minneapolis. The me- dian household income in the community is 16 percent above the state median. Big Lake has one small independent motel and one fine dining restaurant and banquet fa- cility, Russell's on the Lake. The Friendly Buffalo, Hideout Bar & Grill, and Trails Grill and Sports Bar are more informal bistro/pub restaurants. Lodging demand from Big Lake is accommodated in Monticello due to the greater variety of hotels and restau- rants there. Becker Becker has an estimated population of 4,856 and is located seven miles north and west of Monticello. The median household income in the community is 27 percent higher than the state median. The Sherburne County Generating Station, the largest coal-fired power plant in the state, is located in Becker. The maintenance of this facility periodi- cally brings in crews that require lodging in area hotels. There are two motels in Becker, a 68-room midscale Crossings by GrandStay and a 32- room economy Americas Best Value Inn (previously a Super 8). Restaurants are lim- ited to Hunters Ridge, located at the public golf course, which only serves dinner and can accommodate banquets of up to 175, and Los Ortizes Mexican Restaurant which is open for lunch and dinner. Albertville Albertville is located seven miles east of Monticello on I-94. It has an estimated popula- tion of 7,485 and a median household income that is 32 percent higher than the state. Its major attraction is the Albertville Premium Outlets, a popular outlet mall with 100 stores. The 66-room, upper midscale Country Inn & Suites is the only hotel in Albertville, but the hotels in Monticello and the surrounding communities of Rogers, Becker, Buffalo, and Maple Grove offer "shop and stay" packages for the mall. While the shopping is an attraction, this hotel draws demand from Monticello primarily because the popular D Michael B's Resort Bar & Grill is located adjacent to it The Space Aliens Bar & Grill is an alternative restaurant, but with a limited menu. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 10 Rogers Rogers is located 17 miles east of Monticello on I-94. It has a population of 12,991 and a median household income that is 83 percent higher than the state. This community developed rapidly in recentyears and is known as a strong family community with a good school system. It has a concentration of retail that is anchored by Kohl's and a Super Target. Its largest retail attraction is a 185,000-square foot Cabela's outdoor store. There are four hotels in Rogers: a Hampton Inn & Suites and a Holiday Inn Express & Suites upper midscale properties; an AmericInn midscale property; and a Super 8 economy lodging facility. Food and beverage outlets include supper clubs Maynard's Restaurant and Bar and Clives Roadhouse. A new popular brewpub, the Short or Tall Eatery & Dining Hall, is located adjacent to the Holiday Inn Express. In addition, there are over 25 other food service options. Maple Grove Maple Grove is a suburb of Minneapolis located 24 miles east of Monticello on I-94. It has a population of 66,903 and a median household income estimated to be $105,369 that is 54 percent higher than the state. The community's largest employer is Boston Scientific with around 3,000 employees. Maple Grove has one of the largest retail con- centrations in the state, making it a regional shopping destination. Since the Shoppes at Arbor Lakes, a 370,000-square foot lifestyle center opened, three additional centers have been added, bringing the total to nearly 2 million square feet of retail space. Only Bloomington with the Mall of America has more space. Within the retail concentration at Arbor Lakes is a wide variety of restaurants that include steakhouses, ethnic restau- rants, bistros, a brewpub, coffee shops and fast food. There are nine hotels in Maple Grove: six upscale hotels, two upper midscale hotels, and one economy hotel. Three of these hotels carry a Marriott franchise, two have a Hilton franchise, and two have an Intercontinental Hotel Group franchise. Highways The highway network around Monticello is shown on the map on the following page. The irregular blue line indicates a 30-minute drive time from Monticello. Hospitality Consulfing Group �= o _ �� r v a �.. � �� o ��. o : � . o ...a� � �. m . w� . . - `-' ' n . r � �.. � . � a a V y � � . . .....-..... n....oO O.' . E � � 0 � ...ao . N � ..m J � o � � � � � � U� C� �j T�n V �V ° m� � �"fl. C a - - .i� Z y.s � � O c c � _ m� _ O ... ... � N o U N � 2 c m '6 = q E c = m a c� 'm m � � c m� 9 i r U V uc� � � � � � ' O � � i a N = o 0 m p � �r o �: _ ... .... m! � a.. � o �� r �._ m � � — -- „ -- _. � .— ---- � ---- _.._. „ x v --_ �- � ` � �........... ,..._-:::::....... � � � ... h s .... �- — '� _ `.0 3 _ �° E �- U.. N a � a u�:� � o �� u' m � �� z - �2o y� �L �+�� a H. � c�°' °a � Y N '15 a �� ' �� ...... 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'R C] - J o �� ,;- � o � c U �� m �0 N � C m� ° o � - T � s !;' � � � �, �....... � �, ,,f �N � � J� a,,, � y; — o w — il� N 7: �' y r� d 2 �� w o -� i � � C W a L � o � C T o r w �o U C �o N O ao - � � 3 a � a � a c+¢ m � o : o 'y ° ;� rn m m _ :3 � . 3 N .....W........ ' .....................Ow. y � � ..................... a ...................... F o � _ � �o �_ � � m . a = - n v�i w� s� o O F o � � } - � u� p a �j : � �' 2 -o � ° 2o No y o m f Hotel Market Report - Monticello, MN Pa,�e 12 Monticello is located at the intersection of Interstates 94 and State Highway 25. Inter- state 94 is a maj or route across the upper Midwest that connects Minneapolis-St. Paul with Chicago and Detroit to the east, and St. Cloud, Fargo, North Dakota and Billings, Montana to the west At Billings, I-94 connects with Interstate 90 and continues west to Seattle, Washington. Highway 25 is a north-south route across central Minnesota that connects Monticello with Big Lake to the northeast and Buffalo to the south. Traffic counts taken by the Minnesota Department of Transportation in 2018 show that Interstate 94 carries a large volume of traffic: a daily average of 61,000 vehicles to the east of Monticello and 46,500 vehicles to the west. Average daily travel on State High- way 25 between Monticello and Buffalo to the south is about 13,500 vehicles and be- tween Monticello and U.S. Highway 10 to the north is about 10,100 vehicles. Highway 10 carries an average of 16,600 vehicles a day. This river crossing is the only one within 15 miles to the west and 13 miles to the east. HOTEL SUPPLY Our analysis evaluated the facilities, amenities and pricing structure of the competi- tive hotels in Monticello and the neighboring communities that are capturing some of the Monticello lodging demand. Interviews with Monticello's large employers re- vealed that the upscale commercial lodging demand utilizes hotels in Maple Grove, Rogers and Albertville. The Monticello hotel market is framed by St. Cloud to the west and Maple Grove to the east. There are several economy and midscale hotels located along U.S. Highway 10 to the north, butwe identified little leakage of Monticello demand to these properties. There are also two hotels (Country Inn & Suites and Super 8) located along State High- way 55 in Buffalo to the south. These hotels limit the draw of Monticello hotels to the south. There are three franchised hotels and one older motel in Monticello, which are de- scribed in the following table. All three franchised hotels were visited during our field- work. The American Inn Motel is 38 years old and is not considered to be competitive with a new hotel. The Days Inn is considered to be only marginally competitive. The three franchised hotels are located near each other on the south side of the interstate, east of Highway 25. The area is currently more industrial than retail-oriented. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 13 Restaurants on that side of the interstate include Applebee's, Chatters, Blue Stone Grill, McDonald's and a small oriental restaurant. MONTICELLO HOTELS Year Rack Rates Hotel Quality Opened Rooms Regular Suite Amenities Best Western Chelsea Inn & Suites Midscale 2000 51 $120 $160 Pool, hottub, fihiess room, Meetingroom(1,200 sf� Super 8 Economy 1977 70 $90 $130 Pool, meering room (1,500sf� Days Inn Economy 1986 33 $66-$72 $101-$111 Jacuzzi suite American Inn Motel Economy 1982 28 $75-$85 na Refrigerators, microwaves 131 Source: Smith Travel Research and Hospitality Consulting Group Best Western Plus Chelsea Inn & Suites This 51-room, 20-year-old hotel presents the highest quality accommodations available in Monticello. Now an upper midscale hotel, it recently upgraded to qualify for the franchise's "Plus" premium designation. It has 14 suites and amenities include an indoor pool and hot tub, an exercise room and 1,200 square feet of ineeting space. A hot breakfast is provided to guests. Its room rates are $120 for a regular room and $160 for a suite. Rates generally increase about $10 during the summer and can increase by $30 to $40 on busy week- ends. and the hotel offers a 10 percent discount for advance purchase. Super 8 This 70-room, 37-year-old economy hotel originally opened as a Best Western and later converted to a Super 8. Thus, its indoor pool and 1,500 square feet of meeting space are unusual amenities for this economy brand. A limited conti- nental breakfast is provided to guests. Its room rates are $90 to $100 and rates increase by $10 to $20 on weekends. The hotel offers a 15 percent discount for non-refundable advance reservations. Days Inn This 33-room, 34-year-old economy hotel offers very limited amenities. A conti- nental breakfast is provided to guests. Its regular room rates are $66 to $72 and suites go for $101 to $111. Rates typically go up by $10 on weekends and $20 during the summer. Rates have not been increased significantly since 2015 and it offers weekly rates. The hotel offers a 15 percent discount for non-refundable advance reservations. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 14 American Inn Motel This 28-room, 38-year-old economy motel features flat screen TVs, a refrigera- tor and microwave in each room. Itwas one of the earliestAmericInn properties, before dropping the franchise. Its room rates are $75 to $85. It has a highly visi- ble location along I-94 at the Highway 25 Interchange. Crossings by GrandStay The Crossings by GrandStay is a midscale hotel located in Becker, approximately seven miles from Monticello. This 16-year old hotel has 68 rooms and suites. The suites have full kitchens that make them desirable for long stays. The hotel is located near the Xcel Energy Sherburne County (Sherco) Power Plant. Its room rates are $109 for regular rooms and $119 to $129 for suites. Rates are increased $10 on weekends. This hotel occasionally accommodates overflow from the Monticello market. Interviews with the large Monticello employers disclosed that some lodging demand is displaced to hotels in Albertville, Rogers, and Maple Grove. The desire to obtain loyalty club points was given as a reason as frequently as quality issues. Upper level executives usually stay in Maple Grove where higher quality hotels and a larger variety of restau- rants are available. The most competitive hotels in these markets are described in the following table and described below. Country Inn & Suites - Albertville This 66-room, 16-year-old upper midscale hotel features an indoor pool and hot tub, an exercise room and a small 525-square foot meeting room. A hot break- fast is provided to guests. Its room rates are $159 -$162 for regular rooms and $167 -$182 for suites. Rates increase by $10-$20 on weekends. The hotel offers a 15 percent discount for non-refundable advance reservations. The hotel is lo- cated adjacent to a popular restaurant and across the street from the large Al- bertville Premium Outlet Mall. This is a Carlson-Rezindor franchise. Hampton Inn & Suites - Rogers This 13-year-old, upper midscale hotel has 114 rooms along with an indoor pool, a fitness center and a 1,012-square foot meeting room. A hot breakfast is provided to guests. Its room rates are $129 for a regular room and $144 for a suite. The hotel offers a 15 percent discount for non-refundable advanced reser- vations. This is a Hilton franchise. 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A hot breakfast is provided to guests. Its room rates are $119-$124 for a regular room and $129 -$139 for a suite. Weekend rates are $20 higher. It offers a 15 percent discount for non-cancellable reserva- tions. The hotel is an Intercontinental franchise. Cambria Suites-Maple Grove This 11-year-old, upscale hotel has 129 rooms along with an indoor pool, a fit- ness center and 2,025 square feet of ineeting space. A hot breakfast is provided to guests. Its room rates are $139-$149 for a regular room and $179 -$229 for a suite. Weekend rates are $10 higher. This is a Choice Hotel franchise. Hampton Inn-Maple Grove This 23-year-old, upper midscale hotel has 120 rooms along with an indoor pool, a fitness center and a small 625-square foot meeting room. A hot breakfast is provided to guests. Its room rates are $174 to $184. This is a Hilton franchise. Holiday Inn Hotel & Suites-Maple Grove This 13-year-old, upper midscale hotel is the only full-service hotel in the mar- ket area. It has 136 rooms along with an indoor waterpark that is popular on weekends, a fitness center, a restaurant and lounge, and two meeting rooms with a total of 1,635 square feet. Its room rates are $169 for a regular room or a suite during the week; weekend rates increase to $179-$220 for regular rooms and $223-$235 for suites. Rates include four wristbands for the weekend water park. This is an Intercontinental Hotel Group franchise. Marriott Courtyard-Maple Grove This 12-year-old, upscale hotel has 115 rooms along with an indoor pool, a fit- ness center and a 720-square foot meeting room. The hotel features a limited restaurant and bar. It has the highest room rates in the area at $219 -$229 for a regular room and $259 for a suite. Hilton Garden Inn-Maple Grove This17-year-old, upscale hotel has 120 rooms along with an indoor pool, a fit- ness center and 1,400 square feet of ineeting space. The hotel features a limited restaurant and bar. Its room rates are $179 -$199 for a regular room and $229 for a suite. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 17 Staybridge Suites This20-year-old, upscale hotel has 119 rooms along with an indoor pool, a fit- ness center and a small 176-square foot meeting room. The hotel provides a breakfast buffet for guests and a cocktail reception three evenings per week. Its room rates are $138 for a regular room and $156 for a suite. This is an Intercon- tinental Hotel Group franchise. SpringHill Suites This upscale all-suite hotel opened in 2019 with 84 rooms. Each suite has a mini- fridge and a microwave. A breakfast buffet is provided to guests and other amenities include an indoor pool, fitness center, a convenience store, and an out- door grilling area. Its room rates are $199 for a suite. This is a Marriott franchise. ROOM RATE STRUCTURE Current room rates in Monticello range from $66 for economy lodging to $120 for midscale lodging accommodations, before discounts. Demand sometimes peaks on weekends on account of tournaments and various social events. Room rates are sometimes increased by up to $40 on these weekends and rates generally are in- creased by $10 during the summer. There are higher quality hotels available in Albertville, Rogers and Maple Grove. Room rates at the upper midscale hotels in these locations range from $129 to $169, while rates at the upscale properties range from $138 to $219, before discounts. The current posted room rates for the competitive area hotels are summarized in the following table. The annual average rate for the competitive hotels was estimated based on performance data and their pricing structure throughout the year. Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 18 COMPETITIVE AREA HOTELS Rack Rates (2020) Estimated Hotel Location Quality Age Rooms Regular Suite ADR(2019) Best West Plus Inn & Suites Monticello Midscale 20 51 $120 $160-$180 $112 Country Inn & Suites Albertville Upper midscale 16 66 $159-$162 $167-$182 $115 Hampton Inn & Suites Rogers Upper midscale 13 114 $129 $144 $116 Holiday Inn F.�cpress & Suites Rogers Upper midscale 11 75 $119-$124 $129-$139 $115 Cambria Suites Maple Grove Upscale 11 129 $139-$149 $179-$229 $125 Hampton Inn Maple Grove Upper midscale 23 120 $174-$184 na $145 Holiday Inn Hotel & Suites Maple Grove Upper midscale 13 136 $169 $179-$220 $140 Marriott Courtyard Hilton Garden Inn Staybridge Suites SpringHill Suites Maple Grove Upscale Maple Grove Upscale Maple Grove Upscale Maple Grove Upscale Source: Smith Travel Research and Hospitality Consulting Group MEETING FACILITIES 12 115 $219-$229 $259 17 120 $179-$199 $229 20 119 $138 $158 1 84 na $199 $170 $145 $120 $165 Monticello Community Center - The largest array of ineeting facilities in Mon- ticello is in the Monticello Community Center. The center has a large room of 4,200 square feet that is used for business, entertainment and social functions. It is a popular venue for wedding receptions. In addition, there are three other meeting rooms of 940, 462, and 168 square feet. The rooms are available for rent to the public and liquor is allowed at events. River City Extreme is a bowling alley and entertainment complex located in Monticello. In addition to a restaurant, bar and a large game room, the complex features a ballroom with a capacity for 300 that is popular for weddings and banquets. Two of the local hotels have meeting rooms: the Super 8 has a 1,500-square foot meet- ing space and the Best Western has 1,200 square feet. HOTEL DEMAND The patronage available to a new hotel consists of commercial visitors conducting business in the area, travelers on the interstate, people attending social functions and Hospitality Consulfing Group Hotel Market Report - Monticello, MN Pa,�e 19 visitors to area residents, and people attending meetings and other group functions. A new hotel in Monticello would seek to capture the upscale lodging demand that is leaving the community to stay at higher quality hotels in neighboring cities, upscale demand from the interstate, and a portion of the demand that is presently accommodated by local hotels. Commercial Demand Commercial demand occurs steadily throughout the year with little seasonal fluctuations other than a decline in business travel during holiday periods. This segment of demand occurs mostly during the weekdays. It originates from travelers conducting business in the area and passing through on the interstate. Commercial travelers generally seek out franchised hotels that are located near their business destination. Because much of this segment travels frequently, they are more likely to participate in hotel loyalty clubs. Interviews with the large employers in the area revealed the usual amount of visitors from corporate personnel, management, vendors and customers. In an earlier interview Cargill Kitchen Solutions reported an estimated 30 to 40 visitors per month that require lodging accommodations. The company officer interviewed indicated that some of the visitors stay in Monticello hotels due to their convenient location, while most of the upper level visitors stay in Maple Grove, attracted by the Hilton, Marriott, and Intercontinental hotel products and the variety of restaurants and shops. The importance of nice restaurants, either for a good meal or for entertaining clients or employees, was emphasized by the Cargill executive, and by other employers with whom we spoke. • In an earlier interview WSI Industries, Inc. estimated that it has an average of four visitors a month that require lodging. They utilize local hotels, but frequently send visitors to one of the Maple Grove hotels on account of the hotel, restaurant and entertainment amenities that are concentrated there. The company official remarked that only a good restaurant in Monticello, suitable for entertaining customers, would alter this pattern. He also mentioned that there are few things for a multi-night stay visitor to do in Monticello. The company has multiple meeting rooms in its plan� so has little need for outside meeting space. In an earlier interview Standard Iron and Wire Works, Inc. reported it is visited by several customers a month and has two sales meetings a year that Hospitality Consulfing Group Hotel Market Report - Mon ticello, MN Pa,�e 20 attract approximately six non-local participants for 2 to 3 nights. The customers seem to be loyal to the large hotel brands so stay in Rogers at the Hampton Inn (Hilton) or the Holiday Inn Express (Intercontinental), or they stay in Maple Grove where a Marriott hotel exists. The company does utilize outside meeting space and requires a capacity of less than 50 people. Xcel Energy operates a nuclear energy plant on the northwest edge of Monticello and a coal-fired energy plant in nearby Becker. The nuclear plant is shut down every two years for re-fueling and maintenance. Crews that can number up to 2,000 are brought to the area for a period of 2 to 6 months. Lodging contracts for the crews are negotiated by the contractor and this demand can fill area hotels that participate. In the 2015 study we estimated that the Monticello hotels enjoyed about a 30-point increase in occupancy during the first six months of 2013 due to this project. Several executives mentioned that a lack of restaurants in Monticello that are suitable for entertaining would be a detriment to a new hotel for some types of their visitors. In contrast to the limited restaurants in Monticello, there is a wide variety of restaurants and fine dining options in Maple Grove. Leisure Demand The Leisure demand segment consists primarily of visitors to local residents by friends and relatives, visitors attending weddings, reunions and other social gatherings, partic- ipants in sports tournaments that are hosted in town, and visitors to Monticello's spe- cial events. The Leisure market segment is largest during the summer months, when vaca- tion travel is at its peak, and reaches its low point in December and January. Leisure de- mand is typically the most price sensitive demand segment. Monticello is exerting efforts to enhance its outdoor recreational amenities in an attempt to attract tourists seeking more active experiences. These efforts include expanding the bike paths throughout the city and linking its parks, and improving access to the Mississippi for fishing, canoeing and kayaking. We believe these efforts should be viewed as amenities that will enhance Monticello's attractiveness as a destination, but are not strong enough to generate a significant amount of additional hotel demand. This is because the proximity to the Twin Cities area reduces the probability of an overnight stay. Hospitality Consulfing Group Hotel Market Report - Mon ticello, MN Pa,�e 21 Group Demand Group business is generated by meetings, seminars and training sessions held by area employers, government agencies, associations and businesses. HOTEL MARKET PERFORMANCE In order to assess the recent trends in the Monticello lodging market, we obtained detailed performance data for the five most competitive hotels from STR Global, a well-known research firm that collects and provides lodging data to the industry. These hotels are the Best Western Plus Chelsea Inn and the Super 8 in Monticello, the Country Inn & Suites in nearby Albertville, and the Hampton Inn & Suites and Holiday Inn Express & Suites in Rogers. This data shows that the competitive set of five hotels achieved an overall annual occupancy of 60 percent in 2019 and an average daily room rate of $110. Lodging Demand The amount of hotel demand accommodated by the competitive hotels has fluctuated over the last six years. Demand and occupancy peaked in 2015, 2017, and 2019 re- flecting the large work crews refurbishing the nuclear plant in those years. Lvdging Demand ��3��upied Rooms� Z014 2015 2016 2017 2018 2019 Source: STR Global Hospitality Consulfing Group Hotel Market Report - Mon ticello, MN Pa,�e 22 The recent occupancy trend for the five competitive hotels is shown in the following graph. C3ccupa�cy ; �� 'G01='. 2015 2015 2D17 2G1S 2019 Source: STR Global Seasonality The seasonality of demand is an important component in determining the size of a new hotel and in projecting its annual occupancy. Monthly performance data for the competitive set obtained from STR Global shows that lodging activity peaks in the summer, but only exceeds 70 percent in the month of August. The high occupancies experienced in the spring months of 2015, 2017, and 2019 are a result of energy crews. Demand during the remainder of the months is consistent over all the years. 100 90 80 70 �° � 60 � c a 50 0 � 40 0 30 20 10 0 Seasa�rality of Demand Jan �eb Mar Apr May Jur� Jul Aug Sep Oct Nov Dec Source: Source: STR Global 2D14 �2015 � 2016 —2D17 2D18 —2019 Hospitality Consulfing Group Hotel Market Report - Mon ticello, MN Pa,�e 23 Average Daily Rate The average daily room rate (ADR) for the competitive supply increased by 6 percent in 2018 and 2 percent in 2019. The trend in average daily rate is shown in the following graph. A�erage Daily Rate ��o1.z6 $99.56 $94.65 $91.52 � 2014 2015 2016 Source: STR Global Day of Week Occupancy ��09.�6 2Q17 2Q18 2019 In general, the market achieves its highest occupancies on Tuesday and Saturday nights. The weekday occupancy is largely due to commercial demand while the Satur- day occupancy is mostly due to leisure demand. Hospitality Consulfing Group Hotel Market Report - Mon ticello, MN Pa,�e 24 Anmua� Day-of-UVeek �ccup��cy 69.4% 72.1% 66.6! 61.7% 37.5% 61.3% �9b— — — Sun Mon Tues Wed Tl�urs Fri Sat Source: STR Global Day of Week Average Rate The market achieves its highest average room rate on Friday and Saturday nights, when leisure demand is greatest. The higher rates are a result of both greater demand and fewer commercial rate discounts. Annual Average Rate by Day �o# Week $105.41 ��06.70 $106.62 $105.15 $102.42 Sue f1�9nn Tuec !+r.'ed Thurc Source: STR Global $121.37 $1I7.39 Fri Sat Hospitality Consulfing Group CONSULTANT QUALIFICATIONS HOSPITALITY CONSULTING GROUP Stephen Sherf — President, Hospitality Consulting Group Stephen Sherf has over 30 years of consulting experience in the hospitality industry. He spent 15 years with a large national public accounting firm, where he was the partner-in- charge of the hospitality consulting division for the Upper Midwest. He also started a gaming consulting company where he worked for 15 years, and founded a hospitality con- sulting company where he has worked for the last 20 years. Mr. Sherf has an extensive background in hospitality consulting that encompasses market studies, valuations, appraisals, acquisitions and sales. He has performed market studies and other advisory services for over 200 hotel projects located mainly throughout the Mid- west for clients that include developers, lenders, hotel companies, and municipalities. He also has particular expertise in development consulting to the gaming industry and has worked on numerous income producing real estate projects that include nursing homes, el- derly housing, subsidized and market rate housing, office buildings, retail developments, convention centers, ice arenas, restaurants, convenience stores, bowling alleys and cine- mas. Operating positions held during Mr. Sherf's career include restaurant manager, auditor, Vice President of Development for a hotel company with 13 properties, and Treasurer for a gaming company where he oversaw the operations of three Colorado casinos. Mr. Sherf is known for his hands-on involvement and realistic conclusions. Where appro- priate, development recommendations are backed by an economic feasibility analysis and a sensitivity analysis to assess risk. He has provided expert witness testimony relating to the valuation of hotels and restau- rants and business interruption claims. He has taught continuing education seminars and spoken at gaming, investment, and state appraisal conferences. He has been a guest lec- turer at the University of Minnesota Graduate School of Business and Stout University. He is frequently quoted in local newspapers and business magazines. Mr. Sherf received an undergraduate degree in economics and an NIBA in finance from Cornell University. He holds a real estate license in Minnesota and has taken several American Appraisal Institute courses. He is a Certified Public Accountant (inactive), is ac- tive in the Minnesota Lodging Association, has served on the planning commission for the City of Minnetrista, and has held a Colorado gaming license. Hospitality Consulfing Group EDA Agenda: 11/2/20 5. Development Proiect's Update (JT) A. Project Gia-Saurus Update: Task efforts related to Project Gia-Saurus have been organized into four areas and each is accompanied by a short summary of the work status below: 1. Legislative — in a standstill phase and monitoring COVID-19 stimulus discussions. 2. Federal and State funding programs — status of tasks awaits further direction related to a definitive site for the proposal. Funding would be primarily used for infrastructure which may or may not include a building. A Letter of Intent (LOI) or a PDA (Preliminary Development Agreement) must be entered into prior to submittal of funding applications to US-EDA. Industrial Land Feasibility Study — Completed by WSB. Study has been revised through add on Memos identifying full ultimate public infrastructure development costs. The Memo(s) still identify three viable sites with infrastructure costs ranging from $5,000,000 to $19,000,000. 4. Project and Process Review-Communications — Continuance of efforts to understand the desired development timeframe and deadlines. Also, additional collaborative efforts to introduce equity partners and/or willing large project lenders or developers capable of building and owning the building and leasing to Gel-X Corporation. A thorough review of company due-diligence information is expected at the time of funding applications. A Draft Letter of Intent (LOI) has also been completed. The LOI contents and form will ultimately hinge on a final site determination. The Draft LOI will need a review by all involved parties in the coming weeks prior to formal consideration. Staff will continue to work on all various tasks for each of these tracks to keep moving the proposal forward. B. UMC Expansion Project Update: The building permit application materials were recently submitted to the City. UMC has informed staff that it expects to begin construction work on November 4, 2020. C. Project #6580 Update: This project is now on hold indefinitely stemming from changes made due to and during the COVID-19 pandemic. D. Project Copperhead Industries Expansion: The 7,360 square foot expansion of the manufacturing facility for Copperhead is progressing. The existing 14,100 square foot facility is located at 9530 Fallon Avenue. Copperhead makes utility trace wire and equipment. They plan to add 6 to 7 new full-time staff. E. Headwaters Assisted Living Facility: Construction progress continues on the 92 unit- assisted living facility located along Hart Boulevard on the east side of County Road 39 north of the City's east I-94 interchange. F. Deephaven Multi-Family Market Rate Apartment: Construction and site work is Well under way for the first 55-unit multi-family apartment building in this 3 building (165 unit development). It is located just south of Chelsea Road and south of the Best Western EDA Agenda: 11/2/20 Hotel. The developer intends to move forward with the second building in the summer of 2021 if the building leases up in a relatively typical timeframe. G. Jill Agosto Building Fa�ade Improvement Project: The Agosto Building is located at 142 West Broadway. The EDA approved a$50,000 grant for fa�ade improvements to the front of the building. Ms. Agosto is also making additional improvements to the east side of the building. The completion date is expected to be in early December 2020. This is the first fa�ade improvement project in Block 35. H. EDA Emergency Small Business Grants through the CARES Act: The EDA has approved a total of 36 grants or an aggregate amount of $180,000 since June 2020. The grants are for $5,000 and intended to support businesses that have been harmed by the COVID-19 pandemic. 2 � L L bA bA L bA bA bA bA L i O i t0 t0 i t0 L L t0 t0 t0 i � f0 � f0 � V1 V1 f0 V1 i i V1 V1 V1 f0 y� v O v O U � U U v � � U U � � Y � S � S O. i LL � i i O. � O. OJ OJ O. O. 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General Business A. Call to Order B. Consideration of approving minutes a. Regular Meeting Minutes — October Sth, 2020 C. Citizen Comments D. Consideration of adding items to the agenda E. Consideration to approve agenda 2. Public Hearings A. Public Hearing — Consideration of a Comprehensive Plan Amendment to "Places to Live", Rezoning to Planned Unit Development, Development Stage Planned Unit Development, and Preliminary and Final Plat for a 541ot detached single- family subdivision Applicant: Shawn Weinand/LSW Investments, LLC B. Consideration of an Interim Use Permit for Monticello Public Works for Public Warehousing, Temporary Applicant: City of Monticello C. Consideration of a Request for Adoption of the Monticello 2040 Comprehensive Plan Applicant: City of Monticello 3. Regular Agenda Consideration of a request for a Simple Subdivision and Lot Combination related to City of Monticello stormwater improvements on the A Glorious Church property Applicant: City of Monticello A. Consideration of the Community Development Director's Report 4. Added Items 5. Adjournment