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EDA Agenda 06-09-2021
AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday,June 9th, 2021—6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Bill Tapper, Treasurer Jon Morphew, Tracy Hinz, 011ie Koropchak-White and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Executive Director Jim Thares, Angela Schumann, Sarah Rathlisberger and Jacob Thunander 1. Call to Order 2. Roll Call 3. Consideration of additional agenda items 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes — May 12, 2021 b. Consideration of Approving Workshop Meeting Minutes — May 12, 2021 c. Consideration of Approving Payment of Bills d. Consideration of Resolution #2021-06 approving TIF Pre-Application Supporting Affordable Housing TIF District for a 59-unit Multi-Family Low Income Housing Tax Credit (LIHTC) Affordable Housing Proposal by Duffy Development e. Consideration of Resolution #2021-07 Extending Lease Agreement Between the City of Monticello Parks Department and the City of Monticello EDA for 349 West Broadway f. Consideration of Resolution #2021-08 Authorizing EDA to Enter into Preliminary Development Agreement with Deephaven Development in Connection with Block 52 Regular Agenda 5. Consideration of Pre-Application for GMEF Loan from Cory Kampschroer for Proposed Car Wash Development Proposal 6. Consideration of Update - Monti Arts Program Use of EDA Owned Properties —Sue Seeger 7. Consideration of Update of Lease Termination of Billboard Sign Leases on EDA-Owned Land along 7th Street West—Outlot A, Country Club Manor 8. Consideration of Authorizing Cedar Square Site Development Timeline and Developer Review and Selection Process 9. Economic Development Director's Report 10. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 12th, 2021—6:00 p.m. Mississippi Room, Monticello Community Center Participants attended in-person or remotely. Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Staff Present: Jim Thares and Rachel Leonard 1. Call to Order Steve Johnson called the Regular Meeting of the EDA to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items N/A. 4. Consent Agenda BILL TAPPER MOVED TO APPROVE THE CONSENT AGENDA. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED, 7-0. a. Consideration of Approving Regular Meeting Minutes—April 14, 2021 Recommendation: Approve Regular Meeting Minutes—April 14, 2021. b. Consideration of Approving Payment of Bills Recommendation: Approve Payment of Bills through April 2021. c. Consideration of Authorizing Staff to proceed with documentation to extend Lease Agreement between the City of Monticello Parks Department and the City of Monticello EDA for 349 West Broadway Recommendation: Authorize staff to prepare the Lease Extension Agreement addendum between the Parks Department and the EDA for property located at 349 West Broadway extending the term for 16 months and/or a resolution for same and presenting to the EDA for consideration at a future meeting. Regular Agenda 5. Consideration of Duffy Development's TIF Pre-Application and Development Concept Review of 59-unit Low Income Housing Tax Credit Affordable Housing Proposal Jim Thares introduced the item and the applicant Jeff Von Feldt, Duffy Development. Von Feldt provided an overview of the company, past projects, and their affordable housing proposal in Monticello (4.18 acres at the corner of Elm Street/71h Street West). The proposal included a 53-unit apartment building and 3 duplexes (6 units total). Von Economic Development Authority Minutes—May 12', 2021 Page 1 14 Feldt also reviewed their timeline with the EDA. Von Feldt noted that they were seeking approval of the City's support to provide TIF financing to the development. The project cost is estimated at 15 million dollars, with a project gap of$512,000 that the developer is asking for assistance on. Thares explained that in the staff report, it identified the need for this type of housing as per the housing study. Thares also pointed out the potential sourcing of assistance, such as a new TIF district or the pooled districts. It was estimated that there is currently $518,000 of funding in the pooled funds that must be used for affordable housing. Thares explained that there are other projects that may also want to use and qualify for this funding. The pooled TIF funds are expected to increase over the next five years to over 1.20 million dollars. Thares explained that the EDA has the opportunity to provide meaningful assistance to one or two affordable housing projects. The EDA had consensus of supporting the idea of establishing a new TIF district. They also noted that the pooled funds could be considered later and dependent on other projects need that may have a need for those funds. Von Feldt noted that he would likely need to come back to the EDA for adoption of a resolution of support for TIF, with a projection model showing the amount of income the district would produce and the amount that would go towards the development. Thares explained that Northland Securities had completed a TIF run for 53-units on March 16, 2021. It shows a 26-year district generates over $750,000. It was noted that the TIF run would need to be completed again as with more units there would be more value and more increment generated from the project. OLLIE KOROPCHAK-WHITE MOVED TO SUPPORT THE TIF DISTRICT FOR THIS PROJECT AND A LETTER OF SUPPORT TO DUFFY DEVELOPMENT FOR THEIR APPLICATION TO THE STATE. BILL TAPPER SECONDED THE MOTION. MOTION CARRIED, 7-0. 6. Consideration of EDA Recommendation to City Council regarding participating in Wright County Economic Development Authority (EDA) Jim Thares noted that Wright County sent a letter and flyer to the City of Monticello asking the City Council to approve a resolution noting that we would participate in the Wright County EDA. Staff felt it was important for the EDA to weigh in and offer a recommendation. Thares noted that it would be beneficial to have the Wright County EDA and who could partner with the City of Monticello EDA on certain initiatives and/or projects. The main purpose of the Wright County EDA is to complete redevelopment and repositioning of County owned land/assets. BILL TAPPER MOVED TO RECOMMEND OPTING INTO (PARTICIPATING IN) THE WRIGHT COUNTY EDA FOR A PERIOD OF FIVE YEARS WITH SUBSEQUENT REVIEW AT THE CONCLUSION OF THAT TIME FRAME. OLLIE KOROPCHAK-WHITE SECONDED THE Economic Development Authority Minutes—May 12', 2021 Page 2 14 MOTION. MOTION CARRIED, 7-0. 7. Consideration of Expanding Facade Improvement Program Target Area Jim Thares explained that staff received an inquiry from a property owner in Block 36 stating an interest in utilizing the Facade Improvement Grant Program. They requested an expansion of the current program target area to allow them to apply for the grant. Thares noted their current building is not very conducive to retail. There was consensus by members that there was limited funding in the program and it would compete with the properties in Block 35 that may seek the funding. For the present time the EDA would prefer to focus on Block 35. BILL TAPPER MOVED TO NOT EXPAND THE FACADE IMPROVEMENT PROGRAM. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED, 7-0. 8. Consideration of Update regarding Otter Creek Business Park Stormwater Drainage Flows and Ponds Jim Thares explained that this item was only informational. Thares noted that there are several potential projects that may be moving forward in Otter Creek Business Park. Thares noted that if land was sold in OCBP that the EDA may have additional costs for drainage and ponding. There is no cost estimate at this time and is depended on the time of development. Steve Johnson asked if TIF could be used to finance the cost of these improvements. Thares confirmed that a developer may request it for their financing. 9. Consideration of Update regarding EDA Meeting Stipend for Non-Council Members Jim Thares explained that the EDA reviewed the bylaws and enabling resolutions. No changes were required for meeting stipends. The EDA would be receiving stipends for attendance and participation in meetings starting with this meeting (May 12, 2021). 10. Economic Development Director's Report Jim Thares provided the Economic Development Director's Report. He noted one new project to the prospect list— Project Emma. This proposal would be for development in Otter Creek Business Park. 11. Closed Session - Consideration of Recessing to Closed Session to Develop or Consider Offers or Counter-Offers for the Purchase or Sale of Real or Personal Property Pursuant to Minnesota Statute 13D.05, Subdivision 3(c)(3). Property Parcel Identification Number: A. PID: #155223000010 Economic Development Authority Minutes—May 12', 2021 Page 3 14 B. PID: #155191000020 C. PID: #155194000010 12. Adiourn TRACY HINZ MOVED TO ADJOURN THE MEETING AT 7:54 P.M. JON MORHEW SECONDED THE MOTION. MOTION CARRIED, 5-0. Recorder: Jacob Thunander Approved: June 9th, 2021 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes—May 1211, 2021 Page 4 4 MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 12th, 2021—5:30 p.m. Academy Room, Monticello Community Center Participants attended remotely and in-person. Commissioners Present: Steve Johnson, Bill Tapper, Jon Morphew, Tracy Hinz, 011ie Koropchak-White, Lloyd Hilgart, and Jim Davidson Staff Present: Jim Thares and Rachel Leonard 1. Call to Order Steve Johnson called the Workshop Meeting of the EDA to order at 5:31 p.m. 2. Roll Call 3. Discussion-Review of the Block 52 RFQ Questionnaire submitted by Deephaven Development Jim Thares provided a background on the receipt of RFQ questionnaires. The questionnaire was provided to seven developers on April 23, 2021. Deephaven Development was the only firm that completed the questionnaire by the deadline date of May 4, 2021. The EDA members reviewed the responses and the consensus was that they are highly motivated and have an approach of solving problems as challenges arise. They are already vested in the community through the Deephaven Development occurring in the Chelsea Commons area. The EDA asked staff to prepare a Preliminary Development Agreement (PDA) for consideration at the June 9, 2021 EDA meeting. Staff also proposed that EDA hold a Workshop to further discuss Block 52 vision details, unusual tasks and issues, timeline and outline funding sources and procedures. The developer and several staff would be involved in the Workshop. 4. Adiournment Steve Johnson closed the meeting at 5:59 p.m. Recorder: Jacob Thunander Approved: April 14th, 2021 Attest: Jim Thares, Economic Development Director Economic Development Authority Minutes(Workshop Meeting)—May 12t", 2021 Page 1 1 1 E DA: 06/09/21 4c. Consideration of Approving Payment of Bills (JT) A. REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. B. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through May 2021. 2. Motion to approve payment of bills through May 2021 with changes as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends approval of Alternative #1. D. SUPPORTING DATA: A. Accounts Payable Summary Statements & § \ \ \ \ \ \ \ =LL 8 U � 2 c c c 00 cq � 5 % ~ ~ ~ \ & ° ± ° ° ± ] \ \ \ \ E ¥ \ } \ \ \ \ / \ / 0 = m o = m / / / \ \ \ \ \ \ cq cq \ A \ \ \ \ \ / ) In m $ m $ $ § U § g ) \ S } \ } } 4 k § § § § ) 701 XENIA AVENUE S SUITE 300 MINNEAPOLIS, MN 55416 F :1 wsb City of Monticello April 22, 2021 Attn: Sarah Rathlisberger, CPFO Finance Manager Project/Invoice: R-014511-000 - 13 505 Walnut Street, Suite 1 Reviewed by: Bret Weiss Monticello, MN 55362-8831 Project Manager: Penny Rolf Downtown Redev. Project- Monticello City Staff Reviewer- Jim Thares GL Acct# N/A _? 4Lp 301, 43 l y 93 Professional Services from March 1 2021 to March 31 2021 Phase 001 Downtown Redev. Project Acquisition Assistance Services Hours Rate Amount Rolf, Penny 2/9/2021 .25 184.00 46.00 online research for rental space Rolf, Penny 3/24/2021 .50 184.00 92.00 research rentals for church Totals .75 138.00 Total Labor 138.00 Total this Task $138.00 Total this Phase $138.00 Billing Limits Current Prior To-Date Total Billings 138.00 4,911.45 5,049.45 Limit 10,208.00 Remaining 5,158.55 Total this Invoice $138.00 From: Jim Thares To: Julie Cheney Subject: RE:WSB(2) Date: Tuesday,May 4,2021 2:57:27 PM Attachments: imaae001.pna Yes, these are okay to pay. From:Julie Cheney<Julie.Cheney@ci.monticello.mn.us> Sent:Tuesday, May 4, 2021 1:29 PM To:Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: WSB (2) Following up on these. I'd like to include in the check run tomorrow. Thanks! From:Julie Cheney Sent:Thursday, April 22, 2021 3:29 PM To:Jim Thares <Jim.Thares(@ci.monticello.mn.us> Subject: WSB (2) Jim Attached are the following invoices from WSB: Inv# R017641-000 3—$1,534.00 Inv# R014511-000 13 -$138.00 Okay to pay as coded? Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chene)e@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. 701 XENIA AVENUE SrilProjecOnvoice: SUITE 300I�MINNEAPOLIS, MNr n 'c �' j55416 v v J111tt►\./\.V.//JJJCity of Monticello 021 Attn: Sarah Rathlisberger, CPF R-017641-000- 3 505 Walnut Street, Suite 1 Reviewed by: Bret Weiss Monticello, MN 55362-8831 Project Manager: James Gromberg 2021 Economic Development Services City Staff Reviewer-Jim Thares GL Acct#213.46301.431990 Professional Services from March 1 2021 to March 31 2021 Phase 001 2021 Economic Development Services Monthly Retainer Monthly Retainer$850/Lump Sum Fee $10,200 for this task Fee Total Fee 10,200.00 Percent Complete 25.00 Total Earned 2,550,00 Previous Fee Billing 1,700.00 Current Fee Billing 850.00 Total Fee 850.00 Total this Task $850.00 y p Special Projects -213-L1L13N'q 9 3 Hours Rate Amount Gromberg, James 3/18/2021 1.00 152.00 152.00 Project Gia-Suarus Meeting/Korby/Grant/Thares/Foss Gromberg, James 3/23/2021 1.00 152.00 152.00 Project Gia-Saurus Update Tim/Steven Gromberg, James 3/29/2021 1.00 152.00 152.00 Project Orion Information Gromberg, James 3/30/2021 1.50 152.00 228.00 Project Orion Information with Bruers/Thares Totals 4.50 684.00 Total Labor 684.00 Total this Task $684.00 Total this Phase $1,534.00 Total this Invoice $1,534.00 Billings to Date Current Prior Total Fee 850.00 1,700.00 2,550.00 Labor 684.00 798.00 1,482.00 Project R-017641-000 MONT- 2021 Economic Development Service Invoice 3 Add-on 0.00 -93.00 -93.00 Totals 1,534.00 2,405.00 3,939.00 Page 2 From: Jim Thares To: Julie Cheney Subject: RE:WSB(2) Date: Tuesday,May 4,2021 2:57:27 PM Attachments: imaae001.pna Yes, these are okay to pay. From:Julie Cheney<Julie.Cheney@ci.monticello.mn.us> Sent:Tuesday, May 4, 2021 1:29 PM To:Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: FW: WSB (2) Following up on these. I'd like to include in the check run tomorrow. Thanks! From:Julie Cheney Sent:Thursday, April 22, 2021 3:29 PM To:Jim Thares <Jim.Thares(@ci.monticello.mn.us> Subject: WSB (2) Jim Attached are the following invoices from WSB: Inv# R017641-000 3—$1,534.00 Inv# R014511-000 13 -$138.00 Okay to pay as coded? Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chene)e@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Please Remit To: HR Green,Inc. PO Box 8213 Des Moines, IA 50301-8213 1-800-728-7805 HRGreen ,. Jim Thares City of Monticello, MN April 19, 2021 505 Walnut Street, STE#1 Project No: 201620 Monticello,MN 55362 Invoice No: 142817 Invoice Total: $814.00 Project 201620 Monticello MN -Grant Applications Professional Services Through April 16,2021 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Phase 01 Professional Services Professional Personnel Hours Amount Senior Professional 2.75 814.00 Totals 2.75 814.00 Total Labor 814.00 Total this Phase $814.00 Billing Limits Current Prior To-Date Total Billings 814.00 4,144.75 4,958.75 Limit 5,000.00 Remaining 41.25 Total this Invoice $814.00 is����� V �°n 2 5 02 3, 36 V3191 c>O you. vo Payment is due within 30 days unless prior arrangements are made. Interest of 1.5%per month will be levied on overdue balances. From: Jim Thares To: Julie Cheney;Angela Schumann Subject: RE: HR Green$814 Date: Wednesday,April 28,2021 2:08:37 PM Attachments: imaae001.ona Julie, yes, that is correct. This is okay to pay from the EDA side; still a 50—50 split I believe. Please code as you did in the other two previous invoices. Thank you. From:Julie Cheney<Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, April 28, 2021 10:24 AM To:Jim Thares <Jim.Thares@ci.monticello.mn.us>; Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Subject: HR Green $814 Angela &Jim Attached is Inv# 142817 from HR Green for services regarding grant applications. Okay to pay $814.00? Split 50/50 ? Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY OF Monticello Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. O � bOA C NC� 0� O O O N LL O O O O O O z u u U M N A O O O O O G V1 V1 V1 M Vl Vl M �O ate.+ V N N O O O C3� O O � O p A. Q Q Cn Rai d N O U Q O cn W 10 O M w 4 O O O U T cn cn cn cn c" H H U U U a u Q p = H H H cA cn u u u a N O a O >1 N U hey Q O O Q 00 O O NO NO M M ^� z o o00 00 o u Debbie Davidson From: noreply@merchanttransact.com Sent: Wednesday, April 7, 2021 12:16 PM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 4121 WEBINSERT.pdf City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: 007256-004 Name: MONTICELLO EDA(213-46301) Service Address: 130 BROADWAY E Service Period: 3/1/2021 to 3/31/2021 (31 days) Billing Date: 4/5/2021 Due Date: 5/1/2021 Meter Reading Previous Reading Current Reading Serial Date Reading Date Reading Cons Current Charges Water:ACH CREDIT-AUTO PAY ($1.25) Water: EBILL CREDIT ($0.50) Stormwater: STORMWATER/NON-RESIDENTIAL $21.00 Total Current Charges: $19.25 Bill Summary Previous Balance: $19.25 Payments Received: $19.25 Adjustments: $0.00 Current Charges: $19.25 * Total Amount Due by:5/1/2021 $19.25 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Debbie Davidson From: noreply@merchanttransact.com Sent: Wednesday, April 7, 2021 12:16 PM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 4121 WEBINSERT.pdf City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: 007256-007 Name: MONTICELLO EDA(213-46301) Service Address: 103 PINE ST Service Period: 3/1/2021 to 3/31/2021 (31 days) Billing Date: 4/5/2021 Due Date: 5/1/2021 Meter Reading Previous Reading Current Reading Serial Date Reading Date Reading Cons Current Charges Water: $0.00 Water: CITY WATER-NON-TAXABLE $7.81 Water:ACH CREDIT-AUTO PAY ($1.25) Water: EBILL CREDIT ($0.50) Water:WATER-STATE CONNECTION FEE $0.81 Sewer: SEWER-COMMERCIAL $10.10 Stormwater: STORMWATER/NON-RESIDENTIAL $21.00 Total Current Charges: $37.97 Bill Summary Previous Balance: $37.97 Payments Received: $37.97 Adjustments: $0.00 Current Charges: $37.97 * Total Amount Due by:5/1/2021 $37.97 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. Auto payment is setup for this customer account, do not pay. 1 Debbie Davidson From: noreply@merchanttransact.com Sent: Wednesday, April 7, 2021 12:16 PM To: AP Subject: Your bill from City of Monticello, MN is ready. Attachments: 4121 WEBINSERT.pdf City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8AMto4:30PM Account Information Account: 007256-008 Name: MONTICELLO EDA(213-46301) Service Address: 112 RIVER ST W Service Period: 3/1/2021 to 3/31/2021 (31 days) Billing Date: 4/5/2021 Due Date: 5/1/2021 Meter Reading Previous Reading Current Reading Serial Date Reading Date Reading Cons 68621907 3/1/2021 43863 4/1/2021 43866 3 Current Charges Water: $0.00 Water: CITY WATER-NON-TAXABLE Consumption $0.00 Water: CITY WATER-NON-TAXABLE $7.81 Water:ACH CREDIT-AUTO PAY ($1.25) Water: EBILL CREDIT ($0.50) Water:WATER-STATE CONNECTION FEE $0.81 Sewer: SEWER-COMMERCIAL Consumption $0.00 Sewer: SEWER-COMMERCIAL $10.10 Stormwater: STORMWATER/NON-RESIDENTIAL $21.00 Total Current Charges: $37.97 Bill Summary Previous Balance: $37.97 Payments Received: $37.97 Adjustments: $0.00 Current Charges: $37.97 * Total Amount Due by:5/1/2021 $37.97 * This was the amount due at the time of billing. To view your amount due at the current time and make a payment click here. 1 Auto payment is setup for this customer account, do not pay. z Vendor bt.*,-- Date of � Transaction o CITY OF MONTICELLO Ghost Card Transaction Please attach the invoice/ receipt and any other available documentation to this form. To be completed by purchaser: Amount $ 15 - UO Expense Code C, ( 3. ` -(—D Circle purchaser name: Debbie Davidson Iulie Chenev i n re Monticello Chamber of Commerce and Industry 205 Pine Street Invoice PO Box 192 Invoice Date: 3/30/2021 Monticello, MN 55362 (763)295-2700 1 fax: (763)295-2705 Invoice Number: 7007 info@monticellocci.com Account ID: D Monticello City of Accounts Payable 505 Walnut Street Suite#1 Monticello, MN 55362 Terms Due Date Net 15 4/14/2021 Description Quantity Rate —Amount 2021 Chamber Lunch-3/16/2021 at River City Extreme: GENERATING BRAND AWARENESS FOLLOWING THE 1 $15.00 $15.00 PANDEMIC: Chamber Lunch, Member (Jim Thares) Subtotal: $15.00 Tax: $0.00 -- Total: $15.00 Payment/Credit Applied: $0.00 ------ ------ Balance: $15.00 Julie Cheney From: Jim Thares Sent: Wednesday, March 31, 2021 2:32 PM To: Julie Cheney Subject: RE: Invoice from Monticello Chamber of Commerce and Industry Julie, this is okay to pay. From: Julie Cheney<Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, March 31, 2021 2:27 PM To:Jim Thares<Jim.Thares@ci.monticello.mn.us> Subject: FW: Invoice from Monticello Chamber of Commerce and Industry Jim Please see the attached invoice#7007 from the Chamber for the March lunch you attended. Okay to pay$15.00? Thanks Julie From: Marcy Anderson <marcv@monticellocci.com> Sent:Tuesday, March 30, 2021 2:45 PM To: AP <AP@ci.monticello.mn.us> Subject: Invoice from Monticello Chamber of Commerce and Industry Dear Jim: Your invoice for the Chamber lunch is attached. Thank you for supporting the Chamber. Please remit payment at your earliest convenience. You will find a link at the bottom of this email to pay bills online. Thank you for your continued support. Sincerely, Monticello Chamber of Commerce and Industry (763) 295-2700 To view/pay bills online, please click here This email was sent on behalf of Monticello Chamber of Commerce and Industry 205 Pine Street Monticello, MN 55362.To unsubscribe click here If you have questions or comments concerning this email or services in general,please contact us by email at info monticellocci.com. 1 Julie Cheney From: info@monticellocci.com Sent: Thursday, April 8, 2021 2:26 PM Subject: Online Payment Confirmation Your online payment request has been received by Monticello Chamber of Commerce and Industry. Payment Confirmation Name:Julie Cheney Company: Monticello City of Transaction Number: 62965269717 Last 4 of Acct Number: 8769 Amount:$15.00 Description ltem(s) Quantity Total Amount Payment for Invoice 2021 Chamber Lunch-3/1612021 at River City Extreme: #7007(Monticello City GENERATING BRAND AWARENESS FOLLOWING THE 1 $15.00 of) PANDEMIC: Chamber Lunch, Member(Jim Thares)$15 00(Class: ) Grand Total: $15.00 This Email was automatically generated. For questions or feedback, please contact us at: Monticello Chamber of Commerce and Industry 205 Pine Street PO Box 192 Monticello, MN 55362 (763) 295-2700 info@monticellocci.com http://www.monticellocci.com 1 Julie Cheney From: Auto-Receipt <norepiy@mail.authorize.net> Sent: Thursday, April 8, 2021 2:26 PM To: AP Subject: Transaction Receipt from Monticello Chamber of Commerce & Industry for$15.00 (USD) Description: Payment for Invoice#7007(Monticello City of):2021 Chamber Lunch-3/16/2021 at River City Extreme:GENERATING BRAND AWARENESS FOLLOWING THE PANDEMIC:Chamber Lunch,Member(Jim Thares)$15.00(Class:) Invoice Number 7621436 Billing Information Shipping Information Julie Cheney Monticello City of 505 Walnut Street Suite 1 Monticello,MN 55362 us ap@ci.monticello.mn.us 763-271-3205 Total: $15.00(USD) Date/Time: 8-Apr-2021 12:26:06 PDT Transaction ID: 62965269717 Payment Method: Visa xxxx8769 Transaction Type: Purchase Auth Code: 058996 p • • 1 Monticello Chamber of Commerce& Industry Monticello, MN 55362 US marry@monticellocci.com I Vendor r111 Date of Transaction Y I �9 CITY OF MONTICELLO City Hall Card Transaction Please attach the invoice/receipt and any other available documentation to this form. To be completed by purchaser: Amount $ 1 00 ��i0 Circle purchaser name: Circle department code: 101-41110 City Council Tracy Ergen 101-41310 Administration Vicki Leerhoff 101-41410 City Clerk/Elections Rachel Leonard 101-41520 Finance Jacob Thunander 101-41800 Human Resources Sarah Rathlisberger 101-41910 Planning and Zoning Jennifer Schreiber 101-41920 Data Processing An e 213-46500 Economic Development Beth Green 213-46301 FORA` Liz indrud i i ,ure Circle expense code: w -- 1421990 General Operating Supplies Supervisor i n ur 431950 Newsletter Services 431990 Miscellaneous Prof Services Z o 2# 432200 Postage Date approv d 433100 Travel/Training Expense 443300 Dues Membership &Subscrip Special Project#or Description 443700 Licenses and Permits 44.3990 _ - Misc. Other Expen e� C-__- _ Other Jacob Thunander From: Jimmy John's <orders@jimmyjohns.com> Sent: Monday,April 19, 2021 10:53 AM To: Jacob Thunander Subject: Your Jimmy John's Online Order is confirmed! 0 1LH Any regular sandwich, chips, pickle spear &cookie. t 4 w} THANK YOU FOR YOUR ONLINE ORDER If you have any questions regarding your order, please do not hesitate to contact us at 763-314- 0852, and reference your order confirmation number 1656389689. Order Number: 1656389689 Store Information: JJ0970 1117 Cedar St Monticello , 55362 763-314-0852 Scheduled: As Soon As Possible For: Delivery Address: 505 Walnut St 1 Monticello 55362 1 Contact: Jim Thares 17632713206 jacob.thunander@ci.monticello.mn.us ITEM EACH PRICE 2 BOX LUNCHES 10.99 $21.98 SELECTIONS: #1 THE PEPE@, Regular Jimmy Chips@, Chocolate Chip Cookie 2 BOX LUNCHES 10.99 $21.98 SELECTIONS: #4 TURKEY TOM), Regular Jimmy Chips@),Chocolate Chip Cookie 1 BOX LUNCHES 10.99 $10.99 SELECTIONS: #2 BIG JOHN), Regular Jimmy Chips@, Chocolate Chip Cookie 1 Large Fountain Diet CokeO(30oz) 2.29 $2.29 1 BOX LUNCHES 10.99 $10.99 FOR: Jacob SELECTIONS: #1 THE PEPEO, BBQ Jimmy Chips@,Chocolate Chip Cookie 1 BOX LUNCHES 10.99 $10.99 FOR: Jim SELECTIONS: #2 BIG JOHN@, Regular Jimmy Chips@,Chocolate Chip Cookie Subtotal: $79.22 Tip: $13.16 Delivery: $2.50 TAX $6.02 Total: $100.90 Credit Card Visa x-1834: ($100.90) 2 O z u d U M_ N N � LL F O 8O V M � W H O � O O q o N OCon W Id O O O � .cy N y.' a M O A m O a, •4 N ulu M lu A � �i w z w c � w = U k v 0 cq O � � o CD c o 0 O A-I q o o Q lu c o O oo r. M O cd N � NORTHERN STATES POWER COMPANY Page 1 of 4 MAILING ADDRESS ACCOUNT NUMBER Xcel Energy® CITYA MONTICELLO ECONOMIC DEV AUTH 51 0013295413 8 ;$11 /05/2021 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 STATEMENT NUMBER STATEMENT DATEI RESPONSIBLE BY NATURE® 727226295 04/08/20214.29 QUESTIONS ABOUT YOUR BILL? ACCOUNT BALANCE (Balance de su cuenta) See our website: xcelenergy.com Previous Balance As of 03/07 $125.74 Email us at: Customerservice@xcelenergy.com Payment Received Auto Pay 04/02 -$125.74 CR Please Call: 1-800-481-4700 Balance Forward $0.00 Hearing Impaired: 1-800-895-4949 Current Charges $114.29 Fax: 1-800-311-0050 Amount Due (Cantidad a pagar) $114.29 Orwrite us at: XCEL ENERGY PO BOX 8 EAU CLAIRE WI 54702-0008 0 M N PREMISES SUMMARY PREMISES NUMBER PREMISES IDENTIFIER PREMISES DESCRIPTOR CURRENT BILL 302923602 103 PINE ST $39.11 303409149 112 W RIVER ST $75.18 Total $114.29 f . F INFORMATION ABOUT YOUR BILL } Thank you for your payment. RETURN BOTTOM PORTION WITH YOUR PAYMENT•PLEASE DO NOT USE STAPLES,TAPE OR PAPER CLIPS XcelEnergy® ACCOUNT NUMBER DUE DATEAMOUNTDUE AMOUNTENCLOSED 51-0013295413-8 05/05/2021 $114.29 Automated Bank Payment MAY Your bill is paid through an automated bank payment plan. 1 2 3 4 n 6 7 8 9 10 11 12 13 14 15 ------manifest line--------- 16 17 18 19 20 21 22 I"I�III" 'I' '�I'lllllll�ll�l'II�'lll�l��ll�lll�l�l'I�IIII'I��' 23 24 25 26 27 28 29 30 31 CITY MONTICELLO ECONOMIC DEV AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 I..I�III"�'I'�'�I'IIIIIII�II�I'II�'lll�l��ll�lll�l�l'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 32 51050521 00132954138 0000001142900000011429 Page 2 of g MAILING ADDRESS ACCOUNT NUMBER XCei Energy® CITYA MONTICELLO ECONOMIC DEV AUTH 51 0013295413 8 ;$;114.29 1 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 STATEMENT NUMBER STATEMENT DATE 727226295 04/08/2021 SERVICE ADDRESS: 103 PINE ST MONTICELLO,MN 55362-8564 NEXT READ DATE: 05/06/21 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 302923602 INVOICE NUMBER: 0895300514 METER READING INFORMATION METER 3632365-Multiplier x 40 Read Dates:03/07/21-04/05/21(29 Days) MEASURED BILLED DESCRIPTION CURRENT READING PREVIOUS READING USAGE USAGE Total Energy 21403 Actual 21400 Actual 3 120 kWh Demand Actual 0.4 kW Billable Demand 0 kW ELECTRICITY CHARGES RATE:Sm Gen Svc(Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Winter 120 kWh $0.077570 $9.31 Fuel Cost Charge 120 kWh $0.027750 $3.33 Decoupling Adj 99.31 kWh $0.002849 $0.28 Sales True Up 20.69 kWh $0.008510 $0.18 Affordability Chrg $1.27 Resource Adjustment $0.84 Subtotal $25.21 City Fees $5.50 Total $30.71 OTHER RECURRING CHARGES DETAILS INVOICE NUMBER: 895300487 ADDRESS: 103 PINE ST MONTICELLO,MN 55362-8564 UNIT DESCRIPTION USAGE UNITS CHARGE QTY CHARGE Install Number 157123 03/07/21 to 04/04/21 100 WATT HIPS AREA CO OWN CARBON-FREE ELECTRICITY BY 2050_ We believe the future is carbon free.That's why our vision is to provide zero-carbon electricity 1:�y 2050-Together,we believe e can make it a reality. Learn more at xcelenergy.eorn/CleanEnergy. Page 3 of g MAILING ADDRESS ACCOUNT NUMBER )Jill) XCel Energy® CITY A MONTICELLO ST S ECONOMIC DEV AUTH 51 0013295413 8 1 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 STATEMENT NUMBER STATEMENT DATE 727226295 04/08/2021 OTHER RECURRING CHARGES DETAILS INVOICE NUMBER: 895300487 ADDRESS: 103 PINE ST MONTICELLO,MN 55362-8564 UNIT DESCRIPTION USAGE UNITS CHARGE OTY CHARGE Auto Protective Lgt 39 kWh $7.41 1 $7.41 Fuel Cost Charge $0.84 Resource Adjustment $0.15 Total $8.40 N N Premises Total $39.11 N O DAILY AVERAGES Last Year Temperature 34'F Electricity kWh 5.2 Electricity Cost $1.19 INFORMATION ABOUT YOUR BILL Your bill includes a surcharge of$0.00851 per kWh as a result of a rate adjustment F for the differences between 2020 forecast and actual sales.The surcharge begins — April 1,2021,and will be effective for 12 months. See the enclosed notice for details. For a n average non-demand customer,68% of your bill refers to power plant costs, 15%to high voltage line costs,and 17%to the cost of local wires connected to your business. For a n average demand-billed customer,78% of your total bill refers to power plant costs, 15%to high voltage lines,and 7%to the cost of local wires connected to your business. N O N O O DON'T CET SLAMMED. cammers can spoof phone numbers to look like the call is coming from us. If someone calls and threatens to turn off your power if you don't pay immediately,or asks for your cp account numb-or to refund an overpayment, hang up and m check your account Status using 'My Aucountr our 0 cel Energy mobile app, or call us at.800-895-4999, o Page 4 of 4 ` MAILING ADDRESS ACCOUNT NUMBER ;5/705/2021 XCel Energy® CITYA MONTICELLO ECONOMIC DEV AUTH 51 0013295413 8 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 STATEMENT NUMBER STATEMENT DATE 727226295 04/08/2021 SERVICE ADDRESS: 112 W RIVER ST MONTICELLO,MN 55362-8766 DAILY AVERAGES Last Year NEXT READ DATE: 05/06/21 Temperature 34°F Electricity kWh 9.7 ELECTRICITY SERVICE DETAILS Electricity Cost $3.95 PREMISES NUMBER: 303409149 INVOICE NUMBER: 0895301460 READINGMETER i i METER 15062258 Read Dates:03/07/21-04/05/21(29 Days) DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Energy 69223 Actual 69174 Actual 49 kWh Demand Actual 2.6 kW Billable Demand 1 kW ELECTRICITY CHARGES RATE:General Service DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $25.64 Energy Charge 49 kWh $0.034070 $1.67 Fuel Cost Charge 49 kWh $0.026939 $1.32 Sales True Up 40.55 kWh $0.001950 $0.08 Sales True Up 8.45 kWh $0.008780 $0.07 Demand Charge Winter 1 kW $10.490000 $10.49 Affordability Chrg $3.60 Resource Adjustment $1.31 Subtotal $44.18 City Fees $31.00 Total $75.18 Premises Total $75.18 INFORMATION ABOUT YOUR BILL Your bill includes a surcharge of$0.00878 per kWh as a result of a rate adjustment for the differences between 2020 forecast and actual sales.The surcharge begins April 1, 2021, and will be effective for 12 months. See the enclosed notice for details. For a In average non-demand customer, 68% of your bill refers to power plant costs, 15% to high voltage line costs, and 17% to the cost of local wires connected to your business. For a In average demand-billed customer, 78% of your total bill refers to power plant costs, 15% to high voltage lines, and 7% to the cost of local wires connected to your business. EDA: 06/09/21 4d. Consideration of Resolution #2021-06 approving TIF Pre-Application Supporting Affordable Housing TIF District for a 59-unit Multi-Family Low Income Housing Tax Credit (LIHTC) Affordable Housing Proposal by Duffy Development (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider Resolution #2021-06 expressing support for the proposed use of TIF for a 59-unit Low Income Housing Tax Credit (LIHTC) Multi-Family Development by Duffy Development Company, Inc., Minnetonka, MN. The EDA previously reviewed the concept apartment and townhome proposal at its May 12, 2021 meeting. Duffy Development's concept includes a 53-unit apartment building and three sets of 4- bedroom duplex (twin-home) structures (total of 59-units) that would utilize the Section 42 (Federal) Low Income Housing Tax Credit (LIHTC) program as the major source of funding. Using LIHTC requires the developer to enter into a long-term contract with Minnesota Housing Finance Agency (MHFA) to provide units at a set rental rate and use household income criteria in determining occupancy eligibility. All (100 %) of the units would be rented to households with qualifying income levels. The income table would reference the Twin City Metro area figures instead of the Wright County area median income (AMI). Duffy submitted a TIF pre-application which was reviewed as part of the proposal overview at the May 12, 2021 EDA meeting. Duffy is seeking TIF to help fill a funding gap of approximately $512,000 for the nearly$15,250,000 investment. The EDA discussed the potential use of the available pooled TIF dollars to assist the proposal though took it acted to support the creation of a new TIF Housing District as the better funding tool. Duffy also presented a similar concept to the EDA in June 2020 in which it sought TIF assistance to fill a funding gap. At that time, the EDA expressed support for use of TIF assistance to support Duffy's slightly smaller proposal. The City Council expressed reservations about the proposal in the context of a lack of updated housing demand and cost data during its review and did not support the use of TIF for the proposal. The proposed development site is at the far west end of the Riverwood Bank parcel on 71n Street West. Duffy has entered into a purchase agreement with Riverwood Bank for a 4.18- acre site. The site is located just east of Elm Street and adjacent to 1-94 which is on the south property line of the parcel. The 2020 Housing Study (completed in September 2020) identified a local demand range of 145 to 181 affordable units over the next 5 years. The most recent qualified affordable housing development was the 47-unit Rivertown Residential Suites. The EDA approved a TIF District for the project in July 2018. A Certificate of Occupancy (CO) for the building was issued in early May 2020. Under the TIF Development Contract, 10 units in this building are required to be rented to households at 50 percent of the area (Wright County) median income (AMI). The 2020 Housing Study factored the Rivertown units into its findings, 1 EDA: 06/09/21 meaning the local affordable housing demand prior to Rivertown's opening was between 155 to 191 units. Further supporting the demand for affordable housing were specific findings within the 2020 Housing Study: Page 32: • "Rental stress in Monticello exists almost entirely within low-income City households." • "There are significant gaps at both the top and bottom of the rental housing market, with an undersupply of. . . affordable units with rents below $800 monthly." Page 33: • " . . . Renters who are cost burdened are much more likely to be severely cost burdened (spending more than 50% income toward rental costs). Of those experiencing cost burdened, 73% are severely cost burdened. This rate is significantly higher than in regional peer communities." • "This also indicates a lack of appropriately priced units for the lowest income households already living in the community and indicates opportunity to better serve low-income households through income-restricted and subsidized units that ensure affordability levels not currently provided within the market." Page 35: • "In Monticello, this would be a goal to add 265 units of rental housing affordable to the lowest income earners in the community." As a pre-application review, this consideration by the EDA will not include a detailed review of the financing proposal nor a final "but-for" determination. Those TIF related discussions will be conducted later if the EDA is supportive of the Duffy proposal. Duffy faces a lengthy application submittal process for the LIHTC funding through MHFA as is described in its written summary narrative. The deadline for LIHTC applications is July 17, 2021. Award notices are expected in December 2021. If Duffy receives approval of its tax credit application, they expect to present a formal request for a new TIF district in the spring of 2022. Construction would begin in late August 2022 or be completed in approximately 12 months (August 2023). If the EDA approves Resolution #2021-06, Duffy will then ask the City Council to approve a letter of support or a similar resolution to be included in its LIHTC application materials. Al. STAFF IMPACT: There is a limited staff impact in considering Resolution #2021-06 supporting the use of TIF for the Duffy Development proposal. The EDA attorney prepared the Resolution, and the Financial Advisor (Northland Securities) prepared the updated TIF Model-Run reflecting the total of 59-units. Review and organization of the application materials that occurs during the creation of the staff report is part of in-house staff duties. 2 EDA: 06/09/21 A2. BUDGET IMPACT: This is a pre-application concept review by the EDA. There is a very modest budget impact (normal duty staff time) due to the consideration of the TIF pre- application for EDA direction on next steps. Limited fees were incurred from the services of the EDA attorney for the Resolution and the Financial Advisory who completed the TIF Model-Run. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2021-06 expressing support for the proposed use of TIF for a LIHTC multi-family development by Duffy Development Company, Inc. 2. Motion to deny adoption of Resolution #2021-06 expressing support for the proposed use of TIF for a LIHTC multi-family development by Duffy Development, Inc. 3. Motion to table consideration of Resolution #2021-06 for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. Supporting the Duffy Development proposal is a step forward in addressing the findings in 2020 Housing Study. Monticello's 2040 Community Vision is to create a friendly and safe community which is inclusive and fosters a sense of belonging. The City has adopted a strategy for housing which includes retaining and developing a range of housing choice and opportunity. As residents move through their career paths and family status, their housing needs change. As an actively developing community, Monticello seeks to provide opportunities for a full range of"life cycle" housing options allowing them to stay and grow with our community. D. SUPPORTING DATA: a. EDA Resolution #2021-06 b. TIF Model Projections—59-unit MF LIHTC c. Pre-Application Submittal d. Development Concept Plans - 59-unit Affordable Housing e. Development Proposal Summary Narrative f. Power Point Information with Proposed Sources and Uses 3 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2021-06 RESOLUTION EXPRESSING SUPPORT FOR THE PROPOSED USE OF TAX INCREMENT FINANCING FOR A MULTIFAMILY HOUSING DEVELOPMENT BY DUFFY DEVELOPMENT COMPANY, INC. WHEREAS, the City of Monticello Economic Development Authority (the "Authority") and the City of Monticello, Minnesota (the "City") have received a request to assist an entity to be formed by Duffy Development Company, Inc. (the "Developer") with certain costs of construction of an affordable multifamily rental housing development to be located in the City of Monticello, consisting of an approximately 53-unit apartment building and three four-bedroom duplex structures (the "Project"); and WHEREAS, in 2020, the City commissioned a comprehensive housing market study, which was completed in September 2020 and provides recommendations on the amount and type of housing that could be built in the City to satisfy demand from current and future residents through 2025, and which showed a demand for affordable rental housing in the City; and WHEREAS, a stated goal of the Authority's 2020 Annual Economic Development Work Plan is to act as a partner in creating affordable housing development for the community; and WHEREAS, the success of the Developer's application for low-income housing tax credits in connection with the Project is predicated on local support of the proposal; and WHEREAS, the Developer has requested that the Authority indicate its support of the use of tax increment for the Project; and WHEREAS, Authority staff has reviewed the proposal and recommends that the Board of Commissioners support the use of tax increment for the Project. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the City of Monticello Economic Development Authority that: 1. The Board of Commissioners supports the Project and the use of tax increment financing for the Project; provided, however, that authorization of tax increment financing for the Project is solely within the discretion of the City and of the Board of Commissioners following all legally required proceedings pursuant to Minnesota Statues 469.174 through 469.1794, as amended, including (i) a public hearing and approval by the City Council of the City; (ii) a determination, based on an analysis performed by the City's municipal advisor, that tax increment financing assistance is necessary for the Project; (iii) verification of development financing need, based on an analysis performed by the City's municipal advisor, that substantiates that "but for" the use of tax increment financing, the Project would be unable to MN190\101\658736.v2 proceed; and (iv) the negotiation of a development agreement including (among other things) the conditions under which the City or the Authority will provide financial assistance. 2. The Board of Commissioners supports the Developer's application to MHFA for tax credits for the Project. 3. The Board of Commissioners recommends that the City Council of the City adopt a resolution supporting the Developer's application to MHFA for tax credits for the Project and expressing support for providing tax increment financing assistance to the Developer for the Proj ect. Adopted by the City of Monticello Economic Development Authority this 9th day of June, 2021. President ATTEST: Executive Director 2 MN190\101\658736.v2 City of Monticello Tax Increment Financing District No. 1-42(Housing) Duffy Development Projected Tax Increment Cash Flow Apartment Building,59 Units Less Taxable Present TIF Taxes Original Captured Original TIF PV of Net Market Net Tax Available Value of PV of TIF TIF to District Payable Net Tax Net Tax Tax Rate Retained 5 Available Year Year Value Capacity Capacity Capacity 3 2 TIF Available by City to City Developer TIF 5'' (TMV) ''$ 4 TIF 1 2024 11,800,000 80,830 (18,219) 62,611 95.95% 59,859 55,669 5,986 5,567 53,873 50,102 2 2025 11,859,000 80,849 (18,219) 62,630 95.95% 59,877 109,193 5,988 10,919 53,889 98,273 3 2026 11,918,295 80,868 (18,219) 62,650 95.95% 59,896 160,654 5,990 16,065 53,906 144,589 4 2027 11,977,886 80,888 (18,219) 62,669 95.95% 59,914 210,132 5,991 21,013 53,922 189,119 5 2028 12,037,776 80,907 (18,219) 62,688 95.95% 59,932 257,704 5,993 25,770 53,939 231,933 6 2029 12,097,965 80,927 (18,219) 62,708 95.95% 59,951 303,442 5,995 30,344 53,956 273,098 7 2030 12,158,455 80,946 (18,219) 62,728 95.95% 59,970 347,419 5,997 34,742 53,973 312,677 8 2031 12,219,247 80,966 (18,219) 62,747 95.95% 59,988 389,701 5,999 38,970 53,989 350,731 9 2032 12,280,343 80,986 (18,219) 62,767 95.95% 60,008 430,354 6,001 43,035 54,007 387,318 10 2033 12,341,745 81,006 (18,219) 62,787 95.95% 60,027 469,441 6,003 46,944 54,024 422,497 11 2034 12,403,454 81,026 (18,219) 62,807 95.95% 60,046 507,022 6,005 50,702 54,041 456,320 12 2035 12,465,471 81,046 (18,219) 62,827 95.95% 60,065 543,155 6,006 54,316 54,058 488,839 13 2036 12,527,798 81,067 (18,219) 62,848 95.95% 60,085 577,896 6,008 57,790 54,076 520,107 14 2037 12,590,437 81,087 (18,219) 62,868 95.95% 60,104 611,299 6,010 61,130 54,093 550,169 15 2038 12,653,389 81,107 (18,219) 62,888 95.95% 60,124 643,416 6,012 64,342 54,111 579,074 16 2039 12,716,656 81,128 (18,219) 62,909 95.95% 60,144 674,296 6,014 67,430 54,129 606,866 17 2040 12,780,240 81,149 (18,219) 62,930 95.95% 60,163 703,985 6,016 70,399 54,146 633,587 18 2041 12,844,141 81,169 (18,219) 62,950 95.95% 60,183 732,532 6,018 73,253 54,164 659,279 19 2042 12,908,361 81,190 (18,219) 62,971 95.95% 60,202 759,979 6,020 75,998 54,182 683,981 20 2043 12,972,903 81,211 (18,219) 62,992 95.95% 60,222 786,369 6,022 78,637 54,200 707,732 21 2044 13,037,768 81,232 (18,219) 63,013 95.95% 60,243 811,743 6,024 81,174 54,219 730,569 22 2045 13,102,957 81,253 (18,219) 63,035 95.95% 60,263 836,140 6,026 83,614 54,237 752,526 23 2046 13,168,471 81,275 (18,219) 63,056 95.95% 60,283 859,597 6,028 85,960 54,255 773,637 24 2047 13,234,314 81,296 (18,219) 63,077 95.95% 60,304 882,151 6,030 88,215 54,274 793,936 25 2048 13,300,485 81,318 (18,219) 63,099 95.95% 60,325 903,837 6,033 90,384 54,293 813,453 26 2049 13,366,988 81,339 (18,219) 63,120 95.95% 60,345 924,688 6,034 92,469 54,310 832,219 TOTAL= 1,562,524 924,688 156,252 92,469 1,406,271 832,219 Key Assumptions for Cash Flow: 1 Taxable market value(TMV)annual growth assumption =0.50% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV= $2,429,184, NTC calculated for Apartment 4d classification. 5 Present value is calculated based on semi-annual payments,4.0%rate,and date of 11112023. 6 Present value amount of the net available TIF is equal to the estimated maximum developer costs to be reimbursed from TIF. 7 Available TIF is after deducting State Auditor Fee of 0.36%. 8 59 units apartment building all units rented to person at or below 50%AMI, rent restrictions assumed providing for 4d classification of all units. NORTHLAND 5/31/2021 PUBLIC FINANCE Page 1 of 1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING(TIF)APPLICATION BUSINESS SUBSIDY APPLICATION BUSINESS ASSISTANCE FINANCING Legal name of applicant: Duffy Development Company,Inc. Address: 12708 Wayzata Blvd.,Suite 400,Minnetonka,MN 55305 952-544-6769 Telephone number: Jeff Von Feldt Name of contact person: REQUESTED INFORMATION Addendum shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation,new jobs to be created,hourly wages and other community assets. 6. A written description of the developer's business,principals,history and past projects I understand that the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the request for assistance. If the initial application fee is insufficient, I will be responsible for additional deposits. SIGNATURE Oil Applicant's signature: J vJ J ' vJ J• UovL' r Date: May 7,2021 1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Application for Tax Increment Financing(TIF)Assistance GENERAL INFORMATION: Business Name: Duffy Development Company,Inc. Date: May 7,2021 Address: 12708 Wayzata Blvd., Suite 400,Minnetonka,MN 55305 Type (Partnership, etc.): Corporation Jeff Von Feldt 952-544-6769 Authorized Representative: Phone: Description of Business: Real estate developer of affordable/workforce rental housing Legal Counsel: Faegre Drinker Biddle&Reath Address: 2200 Wells Fargo Center,90 S 7'h St.,Mpls Phone: 612-766-7000 FINANCIAL BACKGROUND: No 1. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on any loan commitment? Yes 3. Have you applied for conventional financing for the project? 4. List financial references: Bridgewater Bank,Adam Benjamin,4450 Excelsior Blvd.,St.Louis Park,MN 55416 a. b. Platinum Bank,605 N.HYW 169,Plymouth,MN 55441 Minnesota Housing Finance Agency,400 Wabasha,Suite 400,St.Paul,MN 55102 C. 2 5. Have you ever used Business Assistance Financing before? If yes,what,where and when? PROJECT INFORMATION: 1. Location of Proposed Project: 2. Amount of Business Assistance requested? 3. Need for Business Assistance: 4. Present ownership of site: 5. Number of permanent jobs created as a result of project? 6. Estimated annual sales: Present: Future: 7. Market value of project following completion: 8. Anticipated start date: Completion Date: FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition $ b. Site development c. Building cost d. Equipment e. Architectural/engineering fee f Legal fees g. Off-site development costs 3 2. Source of financing: a. Private financing institution $ b. Tax increment funds c. Other public funds d. Developer equity 4 PLEASE INCLUDE: 1. Preliminary financial commitment from bank. 2. Plans and drawing of project. 3. Background material of company. 4. Pro Forma analysis. 5. Financial statements. 6. Statement of property ownership or control. 7. Payment of application fee of$10,000 5 ■ 11■ i,iiiUNI'm iiiiiiiiiiiiiii©SO®© Q�CWW iiiG TD waiR�iiiiiiiii iSIiii� IiiiiYlYiYliilf.�if6Fiiiiiiiiiiiiiiiiiii\iY1Nu'IfiNWYIiYIfi711iiiiiGl+."IIEfe'dj9E1EiY1Y9aiiiiiiiAllillitlAiAiitltliiAiiiiiiiiliiiliiiiiiiiliiiiiiiiiiiiia ! 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W y o 0 0 / �. . s N m K aNT 8 /' da /8 =a W> W Q / W \ r ZL'£b6 0�w W > m N N / CC W O 9'Sb6 n Y�Q / 01 Q ZS'Z46(0•be z v3i W O .. w o 0 0 Z / N H 08'LY6� $ ~ W Q p 1009E 00'£46 �a 135 z rim�� '. Jx S�Yx Y 3oci . . Mo . . . . . . Ww Pox N / w � F N £'£b6 n i U 0 Lq . . L00-LOL ZZ.'d'V.'s ••z0 O U a . . . . . Hl 3 . . . 103f0 d N1039 . . . . u .13jlds HLL 153M Q 82 y M o �g 1S3 13S� /�y h z w ZL'Zb6 w O Q O T O O N O Z i o m oz 0 4 May 7, 2021 City of Monticello Economic Development Authority Tax Increment Financing(TIF)Application Addendum Duffy Development Company, Inc. is proposing the development of a 59-unit multifamily housing development in Monticello. The site, located at the southern corner of 7th Street West and Elm Street, will encompass approximately 4.0 acres and is proposed to have driveway access off of 7th Street West. The housing proposal will provide 59 units of workforce housing with rents that will serve households with incomes at or below 50%of the area median income. This housing is primarily meant to serve families, and on average,a family of four will have a household income of less than approximately$62,940. Rents are proposed to range from $875 for a one-bedroom to $1,300 for a four-bedroom home. As proposed currently,the building will have 9 one-bedroom units,24 two-bedroom units and 20 three-bedroom units. Additionally, we are proposing six 4-bedroom units in three duplexes on the south side of the site. Property amenities include an on-site playground,underground and attached parking,a community room, a fitness room, on-site management and a secured entrance. Unit amenities include a full appliance package with in-unit washer and dryer, walk-in closets and balconies/patios. The building will be constructed using the guidelines of the Enterprise Green Communities program which provides for healthy, efficient and environmentally responsible homes. The site is currently owned by Riverwood Bank, here in Monticello,and is a small portion of 20 acres they own along the freeway. The land is currently zoned B-3,Highway Business District. The zoning is described to "...provide for limited commercial and service activities..." and could have uses such as automobile dealerships or hotels. Because of the current zoning, we are requesting a change in the zoning of this parcel and asking for a Planned Unit Development under the R-4 zoning. The current zoning of B-3 does not have density requirements as it is not meant for residential housing. The R-4 zone does have a density requirement of 10—25 units per acre. In this case, with 4.0 acres, the density is proposed at approximately 15 units per acre. The existing Comprehensive Guide Plan Use is Commercial and Residential Flex which is defined as providing limited locations where commercial and residential uses may be allowed and located in close proximity to each other. The development introduces residential uses directly next to future commercial development south of 1-94. The timing of this development is as follows: July, 2021 — submittal of funding application to Minnesota Housing. The main funding source is the Housing Tax Credit program. December,2021—Minnesota Housing funding awards are announced. If funded,the development moves on to design and City approvals. If not funded,the project either waits to apply in the summer of 2022 or does not move forward at all. March—May,2022—City entitlement process. Official City review and approval of development plan and possibly TIF support. August, 2022 — Close on financing and begin construction. Approximately 12-month construction schedule. August, 2023—Construction complete and leasing begins. December, 2073—Affordability requirements expire. The zoning code allows for PUD Options for Multi-Family Buildings and we would like to suggest we can provide improved landscaping,all garage parking underground,increase use of brick and a very attractive building. Workforce and affordable housing development is a complicated and competitive process. It requires the developer to complete a very thorough application to Minnesota Housing, the State's housing finance agency. Multiple steps must be achieved before an application can be submitted and applications can only be submitted once per year. It is vital that all aspects of the application are accounted for. A City's support for the development is critical and the City has taken a helpful step. In 2017 and again in 2020, housing studies were performed by third-party consultants. The study from 2017 suggested the need for approximately 220 units of rental housing by 2021 and is states Monticello should make efforts to increase affordable rental housing inventory. The study from 2020 echoes the need for additional rental housing, especially affordable housing. One of the only ways to increase affordable housing is by the use of the Low-income Housing Tax Credit program. The program funds are awarded by score. The higher the score, the better the chance of receiving the funding. We do our best to create the most competitive housing development without promising more than we can deliver,just to score points. We are asking the City EDA to consider awarding the Pooled Tax Increment Financing funds to help fill a gap in our financing caused primarily by the restriction on allowed rent levels. Although it is very early in the process,we are asking the EDA to consider a TIF award in the amount of approximately$500,000. Not only does this fill a funding gap, it will also fill a need in the"Readiness to Proceed" scoring category. Duffy Development is a real estate development company located in the Twin Cities Metro area focusing primarily on affordable and workforce rental housing. To see more information on our past developments,please go to www.duffydevelopment.com. Duffy Development has been in existence since 1985 and has been developing affordable housing since the early 1990's. We are a long-term owner of our rental communities and continue to have an ownership interest in every one of our developed properties. John Duffy is the President and Principal owner of the company and Jeff Von Feldt serves as the Chief Executive Officer. Jeff has been with Duffy Development since the year 2000. 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A/l A^ th iA VIF Vl Ul iA i+ L � � C a a a� c c L fC C = V O u Q 3 m vuw `n o a� .°�' tic a }1 Ql N C L W N rL W c 0 61 y c x IAC L C C � GJ aN+ N N W 41 i N 7 C v d Cu O d L LL Q V O WC O LL O m r U W N C d> 'O Uw OC N L C. dO a W C 0 .� � c N +� N C E m o Y c M w a E E Q c `a J = Q. U O LL U 0 c Q J V' W d 0 41 0 > O EDA: 06/09/21 4e. Consideration of Resolution #2021-07 Extending Lease Agreement Between the City of Monticello Parks Department and the City of Monticello EDA for 349 West Broadway (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider approving Resolution No. 2021-07 extending the lease agreement between the EDA and the City Parks Department for property located at 349 West Broadway. In September 2018, the EDA approved entering into a two-year lease with the Parks Department for the use of the former Fred's Gas Station as a multi- purpose arts programing craft shop and storage area. The original lease agreement was approved for two years with the option to extend the lease for two more years. The lease is attached to the staff report. There have been no other inquiries about the property in the past 32 months. The Parks Department has been able to use the facility for arts projects and as a gathering place for artistic themed activities and expression in that time. No provisions in the lease agreement are proposed to be changed with the extension. As a reminder, the Parks Department is responsible for all operating and maintenance costs at the property. These include building and system maintenance and repair costs, all utility expenses, i.e. water, sewer, garbage, heat, electrical and internet. Further, the EDA will note that item #13 of the lease agreement provides for EDA approval on other improvements to the building such as exterior alterations or major repairs in the interior of the building and its systems. It should also be noted that storage uses are not allowed in the CCD zone without a CUP. Outdoor Sales & Display is a permitted accessory use subject to the specific requirements of the ordinance. Because the original term of the lease has already passed, the extension time frame would be for an additional 15 months, through August 31, 2022. Since late fall of 2020, the Parks Department/MontiArts has also been using two more EDA-owned properties in Block 52 on a temporary basis to provide more visibility for arts related projects. Currently, no leases are applicable for those sites as they are temporary installations with only modest daily use. Al. STAFF IMPACT: The impact of extending the lease is minimal. In-house staff have been involved in the lease extension discussion along with the EDA attorney. No additional staff are required to complete this task. A2. BUDGET IMPACT: The expenses related to extending the lease agreement are fairly minor. The EDA attorney prepared the Extension of Lease Agreement form and the Resolution. These expenses are budgeted in the EDA General fund. 1 EDA: 06/09/21 B. ALTERNATIVE ACTIONS: 1. Motion to approve Resolution No. 2021-07 extending the lease agreement between the City Parks Department and the EDA for property located at 349 West Broadway for an additional 15 months, to August 31, 2022. 2. Motion to deny approving Resolution No. 2021-07 extending the lease agreement between the City Parks Department and the EDA for property located at 349 West Broadway for an additional 15 months, to August 31, 2022. 3. Motion to table consideration of extending the Lease Agreement between the Parks Department and the EDA for property located at 349 West Broadway for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The Parks Department is using the former vacant gas station in a creative manner for arts related activities and projects. The MontiArts activities are in alignment with the City and EDA goals in creating a vibrant downtown area. There have not been any other private sector inquiries regarding the building since the Parks Department (Monti Arts programming) began operating at the property in September 2018. D. SUPPORTING DATA: a. Resolution No. 2021-07 b. Extension of Lease Agreement Form c. Fully Signed Lease Agreement 2 EDA RESOLUTION NO. 2021-07 RESOLUTION APPROVING EXTENSION OF LEASE AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND MONTICELLO PARKS DEPARTMENT BE IT RESOLVED BY the Board of Commissioners ('Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1081, the Authority established its Central Monticello Redevelopment Project No. 1 (the "Project"), for the purpose of facilitating the redevelopment of certain substandard property within the Project. 1.02. The Authority and the Monticello Parks Department(the"Tenant") entered into that certain Lease Agreement, dated as of December 10, 2018 (the "Agreement"), providing the terms and conditions of the occupancy by the Tenant of certain property located at 349 West Broadway (the"Property"). 1.03. The Agreement provided for a termination date of August 31, 2020, with a possible extension of the term of the Agreement to a date no later than August 31, 2022, subject to mutual agreement to such extended term by the parties. 1.04. The Tenant has requested an extension to the term of the Agreement, and the parties have negotiated and propose to execute an Extension of Lease Agreement (the "Extension") in the form presented to the Board, to extend the termination date to August 31, 2022. Section 2. Extension Approved. 2.01. The Extension as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Extension by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Extension and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. MN325\31\723147.v1 Approved this day of June, 2021, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Secretary MN325\31\723147.v1 EXTENSION OF LEASE AGREEMENT This Extension of Lease Agreement ("Extension") is made as of May 12, 2021, by and between the City of Monticello Economic Development Authority, a Minnesota public body corporate and politic ("Landlord") and the City of Monticello Parks Department ("Tenant"). WITNESSETH: A. Landlord and Tenant previously entered into that certain Lease Agreement (the "Lease") dated as of December 10, 2018, pursuant to which the Landlord leased certain property located within the City of Monticello and described as attached hereto as Exhibit A (the "Property"). B. The initial term of the Lease was September 1, 2018 to August 31, 2020, provided that the term of the Lease could be extended by one additional period of 24 months by mutual agreement of the parties. C. The parties now wish to memorialize their mutual agreement to extend the Lease for an additional 24-month period by entering into this Extension. Now, therefore, the parties hereto agree as follows: 1. The Lease is hereby extended for a period of 24 months and shall be in force from September 1, 2020 through August 31, 2022. 2. Except as amended by this Extension, the Lease shall remain in full force and effect. (The remainder of this page is intentionally blank.) MN325\31\723135.v1 IN WITNESS WHEREOF, the parties hereto have executed this Extension in the manner sufficient to bind them as of the day and year first above written. LANDLORD: CITY OF MONTICELLO DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director TENANT: CITY OF MONTICELLO PARKS DEPARTMENT By: Its: MN325\31\723135.v1 EXHIBIT A PROPERTY The South 1/2 of Lots 1, 2, and 3, in Block 50, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds in and for Wright County, Minnesota; Said South 1/2 of Lots 1, 2, and 3, Block 50, can also be described as follows: Beginning at the mid-point on the common line between Lots 3 and 4, in said Block; thence Southerly along said common line 82.5 feet to the Southerly line of said Block (being the Southeast corner of said Lot 3); thence Westerly along the Southerly line of Lots 3, 2 and 1 for a distance of 99 feet to the Southwest corner of Lot 1; thence Northerly along the Westerly line of Lot 1 for a distance of 82.5 feet; thence straight Easterly 99 feet to the point of beginning and there terminating. Subject to existing easements, restrictions and reservations of record, if any. MN325\31\723135.v1 LEASE AGREEMENT THIS LEASE AGREEMENT("Lease")is made as of December La,2018,by and between the City of Monticello Economic Development Authority, a Minnesota public body corporate and politic("Landlord") and the City of Monticello Parks Department ("Tenant"). 1. Premises. In consideration of the rents and covenants contained herein, and subject to the terms of this Lease, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that real property which is described on the attached Exhibit A(the"Premises"). 2. Acceptance of Premises. Tenant accepts the Premises in its present "as is" condition, but subject to the terms and conditions of this Lease. 3. Term of Lease. This Lease shall be in force from September 1, 2018 through August 31, 2020, and may be terminated by the Landlord or the Tenant with 45 days' written notice. The parties agree that the Lease may be extended by one additional period of 24 months upon mutual agreement of the parties. 4. Rent. No rent shall by payable by Tenant to Landlord. 5. Quiet Enjoyment. If Tenant complies with all terms of this Lease, Tenant may use the Premises for the term of this Lease. 6. Use of Premises. The Premises shall be used and occupied only for the purpose of a multi- purpose arts programming craft shop and storage facility,in conformity with applicable ordinances and governmental regulations. 7. Right of Entry. Landlord and Landlord's agents may enter the Premises at reasonable hours to repair or inspect the Premises and perform any work that Landlord decides is necessary. 8. Assignment and Subletting by Tenant. Tenant may not assign this Lease, sublease the Premises to any other party or permit any other party to use the Premises or any part of the Premises without the prior written consent of Landlord. Any assignment or sublease without Landlord's written consent will not be effective. Any such consent by Landlord shall not be a waiver of Landlord's rights under this Section as to any subsequent similar action. If Tenant is a corporation, company, partnership or otherwise is not a natural person, and there shall occur any change in the identity of the parties who are the owners of such entity, or who have the power to participate in the management of the affairs of such entity, then Tenant shall so notify Landlord in writing, and Landlord may terminate this Lease by reason of any such event by written notice to Tenant given at any time within sixty(60) days after receipt of the notice of change in identity from Tenant. 9. Sale of Premises by Landlord. Upon any sale of the Premises, and provided the purchaser shall assume all obligations of Landlord under this Lease, Landlord shall thereupon be entirely freed of all obligations of Landlord under this Lease arising from any act, omission or event occurring after such conveyance. Upon such sale and the transfer of Landlord's interest under this 1 532501v1 Lease,Tenant agrees to recognize and attorn to such transferee, and Tenant agrees upon request to execute and deliver documentation setting forth the provisions of this Section. 10. Utilities. Tenant shall timely pay for all utilities provided to the Premises during the term of this Lease. 11. Maintenance and Repair. Tenant shall keep the Premises, including the parking area and grounds, in reasonable repair during the term of this Lease and shall maintain the Premises in compliance with applicable health and safety laws, all at Tenant's sole expense, including without limitation repair or replacement of plumbing fixtures, water heater, furnace, and garage or entry doors. 12. Real Estate Taxes and Assessments. Landlord shall pay all real estate taxes, including installments of special assessments, which become payable during the term of this Lease. 13. Alterations. Tenant shall not change the heating, electrical, plumbing, ventilation or air conditioning or make any other changes of or alterations to the Premises without the prior written consent of Landlord. Any alterations made by Tenant must comply with applicable codes and ordinances. Tenant may install its usual trade fixtures provided that they do not interfere with or damage the structural, mechanical or electrical systems of the Premises. At the expiration or termination of this Lease, Tenant shall promptly remove Tenant's trade fixtures and repair at its own expense any damage to the Premises resulting from their installation or removal. 14. Surrender of Premises. Tenant shall vacate the Premises at the expiration or termination of this Lease and all alterations, additions, improvements and fixtures (other than Tenant's trade fixtures and signs) which have been made or installed by Tenant shall remain as part of the Premises and shall be the sole property of Landlord. When Tenant vacates the Premises, Tenant shall leave the Premises in as good condition as it was when the Lease started, with the exception of reasonable wear and tear. If the Premises are not so surrendered, Tenant shall indemnify Landlord against loss, liability or expense resulting from delay by Tenant in so surrendering the Premises or failure to leave the Premises in the condition required under this Lease including,but not limited to, claims made by any succeeding tenant founded on such delay. Tenant shall surrender all keys to Landlord at the time Tenant vacates the Premises. 15. Damage to Premises. If the Premises are destroyed or damaged not due to the fault of Tenant or Tenant's guests,invitees or customers, and the Premises is unfit for use as a commercial establishment, Tenant shall not be required to pay rent for the time the Premises cannot be used. If part of the Premises cannot be used, Tenant shall only pay rent for the usable part. If the Premises are damaged or destroyed and the cost of repairing the Premises would exceed 30% of their pre-casualty value(exclusive of land),then Landlord may terminate this Lease within 30 days of the casualty by written notice to Tenant and may elect not to rebuild or repair the Premises, and the rent and other obligations of Tenant under this Lease shall be prorated up to the time of the casualty. If this Lease is not terminated pursuant to this Section, then Landlord shall proceed with reasonable diligence to repair and restore the Premises. 16. Insurance. 2 532501v1 A. Tenant shall purchase, in advance, and carry in full force and affect the following insurance: (1) "All risk" property insurance covering the full replacement value of all of Tenant's leasehold improvements, trade fixtures, inventory and personal property within or about the Premises, covering damage from any cause whatsoever; and (2) Comprehensive general public liability insurance naming both Landlord and Tenant as insureds, covering all acts of Tenant, its employees, agents, representatives and guests on or about the Premises, containing a contractual liability endorsement, in a combined single limit amount of not less than $1,000,000, and written on an "occurrence"basis. B. Landlord shall purchase, in advance, and carry in full force and effect commercial property insurance for the full insurable value of the Premises. 17. Risk of Loss: Premises Liability. Landlord shall have no liability to Tenant for any claim relating to injury to or loss of life of persons,or for any damage to,theft of or other loss of property of Tenant on the Premises, by whatever cause. All personal property kept, maintained, or stored on the Premises shall be kept, stored, or maintained at the sole risk of the Tenant. Tenant shall indemnify Landlord from and against all claims of other parties arising from or relating to injury or loss of life of persons, or damage to or loss of property, to the extent occurring in or about the Premises,or arising from Tenant's negligence or intentional misconduct. The said indemnification shall include the duty to pay all reasonable attorneys' fees and costs incurred by Landlord and shall survive the termination or expiration of this Lease. 18. Waiver of Claims and Subrogation. Notwithstanding any other provision in this Lease to the contrary, Landlord and Tenant hereby release one another from any and all liability or responsibility (to the other or anyone claiming through or under them by way of subrogation or otherwise) for any loss or damage covered by the insurance required by the Lease, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. 19. Condemnation. If any part of the Premises is taken or condemned for a public or quasi- public use,or any transfer made in lieu of condemnation,and a part of the Premises remains which is suitable for the use contemplated by this Lease, this Lease shall terminate only as to the part so taken and shall continue in full force as to the remaining part. The date of termination as to a part so taken shall be the date on which the condemnor takes title. The rent payable after that date shall be adjusted so that Tenant shall pay only such portion of the rent as the value of the part remaining bears to the total value of the Premises on the date of the taking. If all of the Premises is taken or condemned,or so much is taken that the use by Tenant shall be substantially impaired,Tenant may terminate this Lease by written notice to Landlord, and all obligations of Tenant shall be prorated as of the notice of termination. All compensation awarded upon any condemnation or taking shall go to Landlord. 3 532501v1 20. Default. If Tenant shall violate any covenant made by Tenant in this Lease and shall fail to comply or begin and diligently prosecute compliance within 15 days after being sent written notice of such violation by Landlord, then Landlord may, at Landlord's option, terminate this Lease by giving Tenant a written notice of termination,and in such event Tenant shall immediately vacate and surrender the Premises. A termination of this Lease by Landlord as a result of a default by Tenant shall not,however,extinguish the liability of Tenant for all rents and covenants provided for in this Lease for the balance of the term of this Lease. After any such termination,Tenant shall pay to Landlord on demand all expenses incurred by Landlord in performing any of Tenant's obligations under this Lease,re-entering or terminating the Lease,reletting the Premises,collecting sums due and payable by Tenant, and the expense of placing and keeping the Premises in good order and repair. 21. Heirs and Assigns. The terms of this Lease apply to Tenant and Landlord, and also to any heirs, legal representatives, successors and assigns of Tenant or Landlord. 22. Notices. All notices, demands and requests by either party to the other shall be in writing and shall be deemed given when sent by United States Certified Mail, postage prepaid (a) if for Tenant,addressed to Tenant at the address of the Premises,or such other place as Tenant may from time to time designate by written notice to Landlord; or (b) If for Landlord, addressed to Landlord at such place as Landlord may from time to time designate by written notice to Tenant.Notices shall also be deemed given if and when delivered to the other party in person. 23. Environmental Requirements. Tenant shall comply with all laws, governmental standards and regulations applicable to Tenant or the Premises in respect to occupational health and safety, hazardous waste and substances and environmental matters. Tenant shall promptly notify Landlord of its receipt of any notice of a violation of any such law, standard or regulation. Tenant agrees to indemnify and hold Landlord harmless from all loss, costs, damage, claim and expense incurred by Landlord on account of Tenant's failure to perform the obligations of this provision. The obligations of Tenant under this provision shall survive the expiration or termination of this Lease as to any such loss,cost,damage,claim and expense attributable to or arising out of activities or misfeasance of Tenant during the term of this Lease or its extension or renewal. 24. Landlord's Disclaimer of Warranty. Landlord disclaims any warranty that the Premises are suitable for the Tenant's use. 25. Relationship of Landlord and Tenant. The Lease does not create the relationship of principal and agent or of partnership or of joint venture or of any association between Landlord and Tenant, the sole relationships between the parties hereto being that of Landlord and Tenant under this Lease. 26. Waiver. No waiver of Landlord's remedies upon the occurrence of an Event of Default shall be implied from any omission by Landlord to take any action on account of such Event of Default, and no express waiver shall affect any Event of Default other than the Event of Default specified in the express waiver and such an express waiver shall be effective only for the time and 4 532501v1 to the extent expressly stated. One or more waivers by Landlord shall not then be construed as a waiver of a subsequent Event of Default. 27. Choice of Law. The laws of Minnesota shall govern the validity, performance and enforcement of this Lease. 28. Time. Time is of the essence in the performance of all obligations under this Lease. [Remainder of this page is intentionally left blank.] 5 532501v1 IN WITNESS WHEREOF, the parties hereto have executed this Lease in the manner sufficient to bind them as of the day and year first above written. LANDLORD CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY B Its: President By: Its Exe utive Director TENANT CITY OF ONTICELLO PARKS DEPARTMENT By: Its: 17,1Z S-1 532501v1 MNI MN325-31 EXHIBIT A PREMISES The South '/2 of Lots 1, 2, and 3, in Block 50, Townsite of Monticello, according to the plat on file and of record in the office of the Register of Deeds in and for Wright County, Minnesota; Said South '/2 of Lots 1, 2, and 3, Block 50, can also be described as follows: Beginning at the mid-point on the common line between Lots 3 and 4, in said Block; thence Southerly along said common line 82.5 feet to the Southerly line of said Block (being the Southeast corner of said Lot 3); thence Westerly along the Southerly line of Lots 3, 2 and 1 for a distance of 99 feet to the Southwest corner of Lot 1; thence Northerly along the Westerly line of Lot 1 for a distance of 82.5 feet; thence straight Easterly 99 feet to the point of beginning and there terminating. Subject to existing easements, restrictions and reservations of record, if any. A-1 532501v1 MNI MN325-31 EDA: 06/09/21 4f. Consideration of Resolution #2021-08 Authorizing EDA to Enter into Preliminary Development Agreement with Deephaven Development in Connection with Block 52 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting Resolution #2021-08 authorizing the EDA to enter into a Preliminary Development Agreement (PDA) with Deephaven Development, LLC in pursuit of redevelopment activities in Block 52. The two principals of Deephaven Development were introduced to the EDA as part of the original RFP interviews for Block 52 in March 2019. They have been in touch with City staff occasionally as they are now working on a significant multi-family and commercial development project in the Chelsea Commons neighborhood of Monticello. Deephaven Development was provided the recently approved RFQ Questionnaire in late April 2021 and they responded with a submittal packet answering the pertinent questions by the May 4, 2021 deadline; the only developer to do so. At the May 12, 2021 EDA workshop, Deephaven Development's questionnaire submittal was reviewed. Direction was then provided to staff to prepare a PDA between the EDA and Deephaven Development and bring it back for consideration at the June 9, 2021 meeting. Under the PDA, the EDA's responsibilities include ongoing efforts of land assembly for a meaningful and effective redevelopment project as well as the initial steps in the formation of the appropriate public funding structure, including tax increment financing. Deephaven Development's responsibilities include: completing financial due diligence for a successful redevelopment project, exploring either independently or collaborative with the EDA additional land assembly in Block 52, and further determining the level of public assistance needed to support a project and performing any studies that may be needed or helpful in moving forward with a project. Al. STAFF IMPACT: There is a limited staff impact in considering the PDA. The EDA attorney drafted the resolution and the PDA. The Economic Development Manager organized the prepared materials for consideration by the EDA. A2. BUDGET IMPACT: Deephaven Development will be required to provide a starter amount of escrow funding in the amount of$2,500 to support initial legal and financial advisory expenses incurred by the EDA. The funding level provided by Deephaven Development should be sufficient to cover the limited amount of expenses associated with the EDA consideration of the PDA. A3. COMPREHENSIVE PLAN/STRATEGIC IMPACT: The Block 52 Redevelopment EDA: 06/09/21 efforts are part of the City of Monticello's strategic goals noted in the 2021 Council Strategic Planning session. The previous 2017 Strategic Planning session outlined specific goals of which #1 "Create & Preserve Sustainable Livability" with a sub-goal of Working to attract and develop a healthy mix of housing options. Goal #4 also stated "Support A Vibrant Economy" along with a sub-goal of"Support development and redevelopment of publicly owned property" which both apply to the Block 52 redevelopment effort. Currently, the City and EDA own approximately 75 percent of Block 52. There may be other key property owners in the Block willing to consider participating in the redevelopment concepts. In addition, the Small Area Plan (SAP), adopted by the EDA and City Council in late 2017 and adopted in full as part of the Monticello 2040 Plan, focuses on redevelopment of Block 52 as a key strategy to revitalize the downtown area.The SAP plan calls for adding residential units (with associated purchasing power) in the core City and specifically in Block 52. The specific Block 52 portion of the plan also calls for ground floor entertainment, dining and retail uses as well. Staff recently held a meeting with several remaining Block 52 private property owners discussing the vision and goals for the block. The aim is to offer transparency to stakeholders regarding the EDA's Block 52 goals and boost communication among all impacted parties. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2021-08 authoring entering into a Preliminary Development Agreement (PDA) with Deephaven Development, LLC or its assigns in connection with the EDA's redevelopment goals and visions in Block 52. 2. Motion to deny adoption of Resolution#2021-08. 3. Motion to table adoption of Resolution #2021-08 for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The PDA is essentially an agreement wherein both parties agree to continue working together to achieve a final formal Development Agreement for in this case the future redevelopment of Block 52. PDA's set out certain benchmarks and performance requirements of the parties that are signatory to Agreement with the ultimate goal of reaching a formal development agreement. In entering into the PDA, Deephaven Development and the EDA will begin a period E DA: 06/09/21 of efforts wherein both collaborate to achieve critical benchmarks consisting of land assembly, outlining the optimal development timeline, identifying additional studies and partnerships as well as the required funding and potential sources. D. SUPPORTING DATA: a. Resolution #2021-08 b. Preliminary Development Agreement CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2021-08 APPROVING PRELIMINARY DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND DEEPHAVEN DEVELOPMENT LLC BE IT RESOLVED by the Board of Commissioners of the City of Monticello Economic Development Authority("Authority")as follows: 1. Back ram. 1.01. Deephaven Development LLC (the "Developer") desires to acquire certain property (the "Property") in the City of Monticello (the "City"), which Property has been the subject of certain preliminary negotiations with the Authority in connection with the construction of a multi- use development on the Property(the"Development"). 1.02. The Authority and the Developer have determined to enter into a preliminary development agreement (the "PDA"), providing for negotiation of a definitive purchase and development contract that will address (among other things) terms under which the Developer will acquire the Property from the Authority and construct the Development on the Property, and the Authority may provide certain financial assistance if warranted to make development by the Developer financially feasible. 1.03. The Board has reviewed the PDA, and has determined that it is in the best interests of the Authority to approve and execute the PDA. 2. Approval of PDA. 2.01. The Authority hereby approves the PDA, and authorizes and directs the President and Executive Director to execute same in substantially the form on file, subject to modifications that do not alter the substance of the transaction and are approved by the President and Executive Director, provided that execution of the PDA by such officials will be conclusive evidence of their approval. 2.02. Authority officials and consultants are authorized to take any other actions necessary to carry out the Authority's obligations under the PDA, and to bring a proposed defimitive purchase and development contract before the Authority. Approved this 12th day of June, 2021, by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: Secretary MN190\159\724083.v1 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY PRELIMINARY DEVELOPMENT AGREEMENT (Block 52 Multi-Use Development) THIS AGREEMENT, dated this 9th day of June, 2021, by and between the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of Minnesota ("Authority") and Deephaven Development LLC, a Minnesota limited liability company, or permitted assigns pursuant to paragraph 9 hereof("Developer"): WITNESSETH: WHEREAS, the Authority and City of Monticello ("City") own certain property within an area of the City designated as Block 52, which property is legally described in Exhibit A attached hereto (the "Authority Property"), and the Authority or Developer may negotiate the purchase of certain additional property within said Block 52, which property is legally described in Exhibit A attached hereto ("Third-Party Property" and together with the Authority Property, the "Development Property"); and WHEREAS, the Developer has submitted a preliminary proposal (the "Proposal") for the development of the Development Property (the "Development"), a portion of which proposal is attached hereto as Exhibit B; and WHEREAS, the Developer has requested the Authority to explore the use of certain public assistance to assist with the Development; and WHEREAS, the Authority has determined that it is in the Authority's best interest that the Developer be designated sole developer of the Development Property during the term of this Agreement; and WHEREAS, the Authority and the Developer are willing and desirous to undertake the Development if(i) a satisfactory agreement can be reached regarding the Authority's commitment for public costs necessary for the Development; (ii) a satisfactory agreement can be reached regarding the site control necessary for construction of the Development; (iii) satisfactory mortgage and equity financing, or adequate cash resources for the Development can be secured by the Developer; and(iv)the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties; and WHEREAS, the Authority is willing to evaluate the Development and work toward all necessary agreements with the Developer if the Developer agrees to make the deposit described herein, which is intended, in part, to reimburse the Authority for its costs if the Development is abandoned by Developer or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein,the parties agree as follows: MN190\159\723928.v1 1. Negotiations between the parties shall proceed in an attempt to formulate a definitive purchase and development contract("Contract")based on the following: (a) the Developer's Proposal, which shows the scope of the proposed Development in its latest form as of the date of this Agreement, together with any changes or modifications required by the Authority; (b) a mutually satisfactory Contract to be negotiated and agreed upon in accordance with negotiations contemplated by this Agreement; (c) such documentation regarding economic feasibility of the Development as the Authority may wish to undertake during the term of this Agreement; and (d) other terms and conditions of this Agreement. 2. It is the intention of the parties that this Agreement: (a) documents the present understanding and commitments of the parties; and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Development prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, the Developer shall: (a) Submit to the Authority a design proposal to be approved by the Authority showing the location, size, and nature of the proposed Development, including floor layouts, renderings, elevations, and other graphic or written explanations of the Development. The design proposal shall be accompanied by a proposed schedule for the starting and completion of all phases of Development. (b) Submit an overall cost estimate for the design and construction of the Development. (c) Submit a time schedule for all phases of the Development. (d) Undertake and obtain such other preliminary economic feasibility studies, income and expense projections, and such other economic information as the Developer may desire to further confirm the economic feasibility and soundness of the Development. (e) Submit to the Authority the Developer's financing plan showing that the proposed Development is financially feasible, and, to the extent Developer seeks public financial assistance in any form (including reduced land cost, waiver of fees, and tax increment financing), evidence that such assistance is reasonably necessary to make the Development financially feasible. (f) Furnish satisfactory financial data to the Authority evidencing the Developer's ability to undertake the Development. MN190\159\723928.v1 2 (g) Furnish any other information reasonably requested by the Authority in connection with the Development, including without limitation information concerning noise or environmental factors. 4. During the term of this Agreement,the Authority agrees to: (a) Commence the process necessary to undertake such public assistance as is necessary pursuant to the terms of the Proposal, including without limitation commencement of actions necessary to terminate all existing agreements and tax increment financing districts related to the Development Property, and to create a new redevelopment tax increment financing district that includes the Development Property. (b) Proceed to seek all necessary information with regard to the anticipated public costs associated with the Development. (c) Estimate the Authority's level and method of financial participation, if any, in the Development and develop a financial plan for the Authority's participation. (d) Proceed to use good-faith efforts to obtain site control of the Third-Party Property if mutually agreed by the parties that such Authority efforts are necessary and warranted. 5. It is expressly understood that execution of the Contract shall be subject to: (a) A determination by the Authority in its sole discretion that its undertakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the Authority (to the extent requested by Developer); (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Development, if any, including the determination that such assistance is reasonably necessary in order to make the Development possible; and(iii)the best interests of the City and Authority. (b) A determination by the Developer that the Development is feasible and in the best interests of the Developer. (c) The Authority obtaining site control of the Third-Party Property, the Developer obtaining site control of the Third-Party Property, or the Developer submitting a plan for the Development located on the Authority Property and less than all of the Third- Party Property, upon mutual agreement of the parties. 6. This Agreement is effective from the date hereof through July 15, 2022, unless extended with approval of the Authority's board of commissioners. After expiration of the term of this Agreement,neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. 7. The Developer shall be solely responsible for all costs incurred by the Developer. In addition,the Developer shall reimburse the Authority for Administrative Costs, as hereafter defined. MN190\159\723928.v1 3 For the purposes of this Agreement, the term "Administrative Costs" means out of pocket costs incurred by the Authority and City attributable to or incurred in connection with the negotiation and preparation of this Agreement, the Contract, and other documents and agreements in connection with the Development, including without limitation all costs in connection with replatting of the Development Property and the cost of financial advisors, attorneys, and planning, engineering, and environmental consultants. In order to secure payment of the Administrative Costs, the Developer has delivered to the Authority funds in the amount of$2,500 upon execution of this Agreement. If at any one or more times during the term of this Agreement, the Authority determines that Administrative Costs will exceed $2,500 and that additional security is required, the Authority shall notify the Developer of the amount of such additional security. Within ten calendar days of receipt of this notice, the Developer shall either (a) deliver to the Authority the required additional security; or (b) notify the Authority that it elects to terminate this Agreement. The Authority will utilize the funds delivered by the Developer to pay or reimburse itself for Administrative Costs. Upon termination of this Agreement, the Authority will return to the Developer the funds paid by the Developer to the Authority pursuant to this Section 7, less an amount equal to the Administrative Costs incurred by the Authority through the date of notice of termination. For the purposes of this paragraph, Administrative Costs are considered to be incurred if they have been paid, relate to services performed, or are payable under a contract entered into, on or before the date of the notice of termination. This Section 7 shall survive termination of this Agreement and shall be binding on the Developer regardless of the enforceability of any other provision of this Agreement. 8. This Agreement may be terminated upon ten (10) days written notice by either party to the other of any of the following events of default, only if such events of default shall remain uncured during the aforementioned notice period: (a) an essential precondition to the execution of the Contract cannot be met; or (b) if either party determines that an impasse has been reached in the negotiation or implementation of any material term or condition of this Agreement or the Contract. 9. During the term of this Agreement, the Authority agrees that it will not negotiate or contract with any other party concerning the development of the Development Property. The Developer shall not assign or transfer its rights under this Agreement in full or in part, or enter into any subcontracts to perform any of its obligations hereunder, without the prior written consent of the Authority; provided that the Developer may at its sole discretion assign this Agreement to a related entity formed expressly for purposes of the Development. 10. In the event that either party fails to comply with any of the provisions of this Agreement, the other party may proceed to enforce this Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and the non-prevailing party shall pay all costs of such enforcement, including reasonable attorneys' fees. 11. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. MN190\159\723928.v1 4 12. In the event any covenant contained in this Agreement should be breached by one parry and subsequently waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach. 13. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail,postage prepaid,return receipt requested or delivered personally: (a) As to the Authority: City of Monticello Economic Development Authority 404 Walnut Street, Suite 1 Monticello, MN 55362 Attn: Executive Director (b) As to the Developer: Deephaven Development LLC 4510 P Street South Moorhead, MN 56560 Attn: Manager 14. This Agreement may be executed manually or electronically in any number of counterparts, all of which shall constitute one and the same instrument. 15. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts,whether based on convenience or otherwise. MN190\159\723928.v1 5 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the day and year first above written. DEVELOPER: By Its: AUTHORITY: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director MN190\159\723928.v1 6 EXHIBIT A Development Property The Authority or City own the parcels depicted and identified on the following page and described as the Authority Property: Parcels 1, 2, 3, 4, 5, 7, 12, 15, and 16. The parcels depicted and identified on the following page and described as the Third-Party Property are owned by third parties: Parcels 6, 8, 9, 10, 11, 13, and 14. MN190\159\723928.v1 A-1 - i e i sp••. �y. 7 !•moo�(+ � S?94•,� ll �y�/ - 66'a 10 33• ss / • 12 �; sa• �s. �• c �� 13 14 w�► sp��s; 1 sn• f � ��i Ii t �J i� " EXHIBIT B Project Proposal Deephaven Development Block 52 Redevelopment Site Proposal Summary 06-01-21 Downtown Monticello Block 52 Land Area: 2.51 acres Objective: Redevelopment of blighted, low-value,economically obsolete downtown full block land site. Construct a Mixed-Use Commercial-Residential Development meeting the City of Monticello EDA objectives Timeline: Enter into a Preliminary Development Agreement with the City of Monticello EDA in June of 2021. Collaboratively work together with the EDA to assemble land by Summer 2022. Demolition, site excavation and new construction to follow in Summer and Fall of 2022 or early 2023. Expected completion of the project would be late summer of 2024. New Development Value Goal: $20,000,000 to$23,000,000 New Jobs Goal: 70 to 90 Conceptual Proposal Development Components: Option A Protect Summary: 4-Story Mixed Use Component Main Floor Retail =24,820 square feet Split Level Parking=80 Indoor spaces Upper Level Apartments=72 Units Roof-Top Patio Restaurant Component 5,400 square feet Off-Street Parking= 127 Surface Level Parking spaces Option B Protect Summary: Apartment Component Garden Level Parking=71 spaces Upper Level Apartments=66 Units Retail Component 21,422 square feet Off-Street Parking=90 spaces MN190\159\723928.v1 B-1 CITY OF `1�: MONTICELLO MIXED USEMN A lr,• wFSTs t' ,, .. .Y , OPTION B �'.1. .1 ° ,i RipFR r �.�., �� t`' PROJECT SUMMARY �,Olt yt � APARTMENT t, k' , _� t j - -3p� r GARDEN LEVEL PARKING t 71 SPACES �- _?. t UPPER LEVEL APARTMENTS y- 2 Z/, }. N ��•. 66 Units n i R��(2 2 i t 3 RETAIL 21,422 SF tp. t j t �UN(TS ^�:�;'`�- OFF-STREET PARKING ..�� 90 SPACES , 2 •� - rW • 0 L +- i M4/,V�o J A WALGREEN \ \ c C 33 "F o `tr QOp. .� E 0 '7/NppOq`q BR q--�PLAZp/' vi'` I _,� �peeRkjNGSpgC B .4 // p iAY �! '•++..ye. — " t All, R PROPERTY suCHHOLz RHET MN190\159\723928.v1 B_2 CITY OF MONTICELLO MIXED USEMN OPTION B ;! c 2 If" I( 2 PROJECT SUMMARY p 2 TRFSr �, yr SSo if APARTMENT `, i = t •� } GARDEN LEVEL PARKING 71 SPACES c R, 2 pOqR � UPPER LEVELAPARTMENTS e, 66 Units FCgpgRr 2 3 RETAIL 3 f" ? 21,422 SF OFF-STREET PARKING 90 SPACES J ��iJy� // pAOSS 2 T'2 =W •IV A WALGREE1 C• _ i RR 11 ••\ STAIy, H l :$ �? x Jq00,•-� E val. , 7 PROPERTY BUCHHOLZ RHET MN190\159\723928.v1 B_3 EDA: 06/09/21 5. Consideration of Pre-Application for GMEF Loan from Cory Kampschroer for Proposed Car Wash Development Proposal (JT) A. REFERENCE AND BACKGROUND: A GMEF Loan pre-application was received on June 3, 2021 seeking funding for a development of a proposed car wash facility. The expected cost of the development proposal is roughly$4,100,000 to $4,200,000. The proposed development site is the former Danner semi-truck terminal and repair shop located at 1301 Cedar Street. Under the City Zoning Ordinance, a car wash, as proposed, is a permitted use in the B-3 Zoning District. The applicant has indicated that the facility would be a new generation style operation and use enhanced technology and design features in its facility ensuring fast, high quality car washes in a customer-centric and friendly environment. Between 4 to 6 new jobs would be created through the development of the facility. Another benefit beyond job creation is the removal of an older metal building structure and redevelopment of the entire 1.16-acre site. Currently the site has a property value of$450,100 and generates approximately $11,000 in real property taxes. Under the proposed redevelopment, the value may increase substantially and generate more than twice as much in annual property taxes. In the submittal materials, the applicant indicates a loan request of$100,000 which is approximately 2 percent of the total project cost. The applicant has indicated that the remaining funding gap of$300,000 is proposed to be funded through other public funding sources such as the Initiative Foundation loan programs and/or the Wright County Economic Development Partnership (WCEDP) loan program. Staff have confirmed with the Initiative Foundation (IF) their willingness to accept a loan application and consider participating in filling the funding gap. Staff learned that WCEDP program would review the application for funding as it does with all requests and make decisions based on the proposal's applicability to the evaluation criteria and its projected economic benefits (jobs and tax base). The EDA is asked to review the GMEF pre-application submittal and indicate whether it has an interest in accepting a full application from the applicant. If the EDA has a favorable view of the pre-application submittal, the next steps will be to work with the applicant in the task of completing the full application and paying the required fees. Staff would then undertake the steps involved in the formal review and full underwriting of the loan request after receiving all materials. The GMEF Loan Account currently has a balance of approximately $1,040,000 and has enough funding to provide a loan request of$100,000. Al. STAFF IMPACT: The EDA-GMEF Loan program offers a Pre-Qualification step as a preliminary review by the EDA to determine level of interest and program applicability. At this point in time, the level of staff time committed to the file is approximately 5 hours including EDA staff report preparation and meeting time. If the EDA encourages submittal of a final application, it is estimated that there will be about 45 to 55 hours spent on the file. A2. BUDGET IMPACT: The budgetary impact related to consideration of the EDA-GMEF loan 1 EDA: 06/09/21 request is to the loan fund itself. The fund currently has approximately $1,040,000 available to lend out. This request is for about $100,000 or approximately 9.6 percent of the available dollars in the GMEF Loan program account. B. ALTERNATIVE ACTIONS: 1. No motion; feedback and guidance only 2. Motion of other as determined by the EDA. C. STAFF RECOMMENDATION: Staff defers to the EDA regarding the use of the GMEF Loan program to support the proposed development. The business activity proposed is eligible for funding through the program. There are economic benefits including new job creation, increase in the tax base and an additional benefit of redevelopment of a visible site that is currently occupied by an older metal building structure. In summary, the proposal's intended use of the funding meets the GMEF criteria. The GMEF loan program is a tool that can help fill the identified funding gap for the estimated $4,100,000 development proposal. If the EDA encourages submittal of a final application, staff will collaborate with the primary lender and the other identified alternative source funders to obtain all supporting documents, as appropriate, to satisfactorily complete all underwriting. SUPPORTING DATA: A. GMEF Loan Pre-Application B. Aerial Photo of Site— 1301 Cedar Street 2 CITY OF CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY APPLICATION Monticd0 BUSINESS ASSISTANCE FINANCING 763-295-2711 —info&i.monticello.mn.us Name of Contact Person: Cory Kampschroer Address: 682 55th Street NE Telephone number: 651-245-7455 Business Name: `Sota Car Wash,RRG Holdings Business Address: REQUESTED INFORMATION Addendum shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation,new jobs to be created,hourly wages and other community assets. 1 6. A written description of the developer's business, principals,history and past projects I understand that the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the request for assistance. If the initial application fee is insufficient,I will be responsible for additional deposits. SIGNATURE Cory Kampschroer Applicant's signature: 06-02-21 Date: 2 FINANCIAL BACKGROUND: 1. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on any loan commitment? No 3. Have you applied for conventional financing for the project? No 4. List financial references: a. Kyle Kampschroer b. Andy Cagnon C. 5. Have you ever used Business Assistance Financing before? No If yes,what,where and when? PROJECT INFORMATION: 1. Location of Proposed Project: 1301 Cedar Street 2. Amount of Business Assistance requested? Estimated$100,000 3. Need for Business Assistance: to cover financing gap 4. Present ownership of site: Bob and Sheree Danner 5. Number of permanent jobs created as a result of project? 6-to-10 6. Estimated annual sales: Present: None Future: 1,200,000 to 2,200.000 7. Market value of project following completion: 4,000,000 to 4,500,000 8. Anticipated start date: August/September 2021 Completion Date: December 2021 3 FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition $ 850,000 b. Site development $150,000 c. Building cost $1,800,000 d. Equipment 100,000 e. Architectural/engineering fee 100,000 f. Legal fees 25,000 g. Off-site development costs 500,000 2. Source of financing: a. Private financing institution $ 3,200,000 b. Tax increment funds c. Other public funds 400,000 d. Developer equity $400,000 4 PLEASE INCLUDE: I. Preliminary financial commitment from bank. 2. Plans and drawing of project. 3. Background material of company. 4. Pro Forma analysis. 5. Financial statements. 6. Statement of property ownership or control. 7. Payment of application fee of$200. 5 r r� Beacon Wright County, MN Overview #* 155032001040 15 5001 2210 1 5500142204 1 525$000020 25 155R Legend Roads 455032001050 — CSAHCL — CTYCL `` ff — MUNICL Uj --- PRIVATECL 1555001 380 -- TwPCL ' Highways Interstate 1 55001423 8 — State Hwy — US Hwy City/Township Limits _ b ❑ c 155500142307 ❑ t OParcels 155500142303 � Torrens _ 'DUNDAS RD __ 15521. 001010 155500142305` 155213002010 t N Date created:6/4/2021 Last Data Uploaded:6/4/20217:44:43AM Developed by"Schneider GE OSPATIAL � Q EDA Agenda:06/09/21 6. Consideration of Update - Monti Arts Program Use of EDA Owned Properties—Sue Seeger (JT) A. REFERENCE AND BACKGROUND: The Monti Arts program has been using EDA owned buildings for arts programing and projects over the past 2.5 years. The former Fred's Gas Station located at 349 West Broadway was the original site for Monti Arts programing. It is still being used, though it does not provide the visibility that the buildings located at 101 and 107 West Broadway provides (former Steve Johnson property). The two Block 52 sites are currently being used extensively for the completion and display or arts projects. Currently, the EDA has a lease with the Parks Department for the use of 349 West Broadway which is up for renewal as an action item under the EDA Consent Agenda (June 9, 2021). There are not any lease agreements in place for the 101 and 107 West Broadway buildings. Monti Arts understands that the use of those two buildings is temporary and could end on short notice since they are part of the Block 52 redevelopment goals that the EDA is pursuing. Sue Seeger, Monti Arts Coordinator, will provide an update to the EDA about their current programs and uses of the various EDA owned properties. Al. STAFF IMPACT: The staff impacts in presenting an update on the Monti Arts program's use of EDA owned buildings is minimal. A2. BUDGET IMPACT: There is no cost to the EDA involved in receiving an update from the Monti Arts program about its use of EDA owned properties. B. ALTERNATIVE ACTIONS: No action required; informational only. C. STAFF RECOMMENDATION: No action needed. Staff defers to the EDA for action. D. SUPPORTING DATA: None EDA Agenda:06/09/21 7. Consideration of EDA Authorization for Lease Termination of Billboard Sign Leases on EDA- Owned Land along 7th Street West—Outlot A, Country Club Manor (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider terminating the billboard sign lease agreements that have been enacted with Lamar Outdoor Advertising Company and Reagan Outdoor Advertising. The two companies currently lease the two large sign structures located on an EDA owned parcel known as Outlot A, Country Club Manor. Lease agreements were entered into with two sign companies by the city several years ago. The existing lease agreements are attached to this staff report. The EDA is involved in the chain of title and lease process due its interests/rights as the landowner of record. The city received the 16.71 parcel through tax forfeiture many years ago. It then transferred the property to the HRA. When the EDA was formed as a dual purpose-powers HRA-EDA in the early 2000s, it received its interest/rights in the parcel. A developer recently re-engaged with City staff regarding its interest in the site. Those renewed discussions are the genesis in seeking direction and/or action to terminate the leases. As they are currently situated, the sign structures would conflict with the concepts that the developer has submitted for preliminary discussion. It is expected that the EDA will have an opportunity to review the proposed development concept at its upcoming June 23, 2021 meeting. As can be seen, the lease agreements are structured so that they can be terminated with certain notice periods. Termination notices were provided to both sign companies via Certified U.S. mail in late October 2019. As evidenced, both companies acknowledged receipt of the letters. The city attorney also recently sent correspondence to both sign companies asking them to confirm receipt of the previous termination notices and to indicate if they are interested in entering into new month to month leases effective immediately, or alternatively, to provide a timeline of when they will remove their sign structures. Al. STAFF IMPACT: The staff impact of presenting the billboard lease decision to the EDA is minor. In-house staff have been involved in the lease termination steps to date. The city attorney was recently engaged to send both sign companies a letter as a follow up step regarding initial termination notices. The EDA attorney will also be apprised of the actions to date. No other staff are needed to complete the tasks related to this item. A2. BUDGET IMPACT: The expenses related to terminating the billboard lease agreements are modest. The city attorney prepared to two letters dated May 27, 2021. Those charges may ultimately be borne by the EDA though that is yet to be determined. If those charges are assigned to the EDA, there are sufficient dollars budgeted in the 2021 EDA General fund. EDA Agenda:06/09/21 B. ALTERNATIVE ACTIONS: 1. Motion to terminate the billboard leases with Lamar Outdoor Advertising Company and Reagan Outdoor Advertising effective immediately. 2. Motion to table consideration of terminating the billboard leases with Lamar Outdoor Advertising Company and Reagan Outdoor Advertising for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The billboard sign structures would need to be removed to allow development of the site. The preliminary concept proposal that has been submitted to staff appear to be viable and merits further discussion and review. The developer would like to present its concept proposal to the EDA at the June 23, 2021 meeting. D. SUPPORTING DATA: a. Billboard Termination Letters b. Lamar Outdoor Advertising Company Billboard Lease Agreement c. Reagan Outdoor Advertising Lease Agreement d. Aerial Photo of 16.71-acre site e. Quit Claim Deed conveying property to EDA CAMPBELL KNUTSON PROFESSIONAL * ASS • • May27, 2021 Roger N.Knutson Elliott B.Knetsch Joel J.jamnik Andrea McDowell Poehler Soren M.Mattick Mr. Don Laubach David S. Kendall Lamar Outdoor Advertising Company Henry A. Schaeffer,III P.O. Box 865 Alina Schwartz Shana N. Conklin St. Cloud, MN 56302 James j. Monge,III Jerome M. Porter Re: Sign Location Lease Leah C.M. Koch Meagan K. Kelley Dear Mr. Laubach: Thomas J. Campbell* This office represents the City of Monticello. By previous enclosed letter, the City *Retired notified you of the termination or cancellation of the sign leases within the City. The purpose of this letter is to confirm that previous notice and to inquire as to your future plans. Please provide a proposed schedule for removal of the billboards or contact us to negotiate a new lease agreement for the City's review based on a revised month-to-month term with a 30-day cancellation provision. Thank you for your prompt response. Sincerely, CAMPBELL KNUTSON Professional Association 9T,"nT. Jamnik JJJ/jmo Enclosure Cc: Rachel Leonard, City Administrator Angela Schumann, Community Development Director Sarah Rathlisberger, CPFO, Finance Director 215645v1 CAMPBELL KNUTSON t� PROFESSIONAL May27, 2021 Roger N.Knutson Elliott B.Knetsch Joel J.jamnik Andrea McDowell Poehler Soren M.Mattick Mr. Carter Clarke David S.Kendall Reagan Outdoor Advertising Henry A. Schaeffer,III 3185 41s' Street NW, Suite 20 Alina Schwartz Shana N. Conklin Rochester, MN 55901 James J.Monge,III Jerome M.Porter Re: Sign Location Lease Leah C.M. Koch Meagan K. Kelley Dear Mr. Clarke: Thomas J. Campbell* This office represents the City of Monticello. By previous enclosed letter, the City *Retired notified you of the termination or cancellation of the sign leases within the City. The purpose of this letter is to confirm that previous notice and to inquire as to your future plans. Please provide a proposed schedule for removal of the billboards or contact us to negotiate a new lease agreement for the City's review based on a revised month-to-month term with a 30-day cancellation provision. Thank you for your prompt response. Sincerely, CAMPBELL KNUTSON Professional Association 9oeelamnik JJJ/jmo Enclosure Cc: Rachel Leonard, City Administrator Angela Schumann, Community Development Director Sarah Rathlisberger, CPFO, Finance Director 215645vl CITY OF PHONE:763-295-2711 FAx:763-295-4404 �J& Monti6eflo 505 Walnut Street Suite 1 ! Monticello MN 55362 October 18, 2019 Don Laubach Lamar Outdoor Advertising Company PO Box 865 loop St. Cloud, MN 56302 Mr. Laubach, As per agreement,the city of Monticello is providing Lamar with notice of cancelation for leases#8022- 01, and #265-01. Lessee may renew Lease#8021-01 for additional one-year terms until notice of cancelation. The city will entertain shorter term leases with Lamar that allow for development as those opportunities arise. Please contact me if you have any questions regarding the above. Thank you, a COMPLETE ■ Com I A. Sign u Wayne Oberg Complete items 1,2,and 3. Finance Director ■ Print your name and address on the reverse X gent�. ❑Addressee so that we can return the card to you. ■ Attach this card to the back of the mailpiece, B. Re ived by(Printe ame) C Dat of Delivery or on the front if space permits. . �L f 1. Article Addressed to: D. Is delivery address different from item 1? ❑Yes If YES,enter delivery address below: ❑No Don Laubach j Lamar Outdoor Advertising Company PO Box 865 St. Clouc, NIN 56302 3. ice ype 0 Priority Mail II I�I�I'I III)I�I I I I I I I II�II I II II II I II'I'I�I�II Mail— El dult'S Signature uree Restricted D 11 Registered elivery El Registered MaiRestricted ❑Certified Mail@ Delivery 9590 9403 0547 5173 5235 95 ❑Certified Mail Restricted Delivery ❑Return R eipt for ❑Collect on Delivery Merchandise 2. Article Number(Transfer from service label) ElCollact on Delivery Restricted Delivery ❑Signature Confirmation— )ail El Signature Confirmation _ 7 I]1,5 0640 2 0 6 8 9 2 219 6 jif Restricted Delivery Restricted Delivery PS Form 3811,April 2015 PSN 7530-02-000-9053 Domestic Return Receipt www.ci.monticello.nnn.us THE COMPANIES Lamar Co#157 This Instrument Prepared'by: New James R.McIlwain XXX Renewal 5551 Corporate Boulevard 8022-01'Lease# Baton Rouge;Louisiana 70808 James R.McIlwain SIGN LOCATION LEASE THIS LEASE AGREEMENT,made this 61h day of FEBRUARY,2015,by and between: CITY OF MONTICELLO (hereinafter referred to as "Lessor") and THE LAMAR COMPANIES (hereinafter referred to as "Lessee"), provides. WITNESSETH "LESSOR hereby leases to LESSEE,it sucdessors or assigns,as`much of the hereinafter described lease premises'a's may be necessary for the construction,repair and relocation of an outdoor advertising structure("sign"),including necessary structures,advertising devices,utility service,power poles,communications devices and connections,with the right-of access to and egress from the sign by LESSEE'S employees,contractors,agents and vehicles and the right to survey,post,illuminate and maintain advertisements on the sign,and to modify the sign to have as many advertising faces,including changeable copy faces or electronic faces,as are allowed by local and state law,and to maintain telecommunications devices or other activities necessary or useful in LESSEE'S use of the sign. Any discrepancies or errors in the location and.orientationbf_the.sign are deemed waived by LESSOR upon LESSOR'S acceptance of the first rental payment due after the construction of the sign. The premises are a,portion of the.property located-in,the County/Parish of WRIGHT.COUNTY,State of MINNESOTA, more particularly described as: (CITY OF MONTICELLO)COUNTRY CLUB MANOR OUTLOT A—LOCATED ALONG INTERSTATE 94(exhibit A)4,,.9 W/OF JCT 25,AT.MM.192.40 TOWNSHIP 121N,RANGE 25W,SECTION 33 L This Lease shall be for a term of FIVE(5)years commencing on the first day of the calendar month following the date of completion of construction of the sign,or,if this is a renewal Lease,the term and payments begin JANUARY 1,2015 ("commencement date"). LESSEE may renew this Lease,for an additional one-year terms,on the same terms and conditions. Said renewal term shall automatically go into effect unless EITHER PARTY shall give to THE OTHER written notice of non-renewal at least sixty(60)days prior to the expiration of the original term. 2. LESSEE shall pay to LESSOR an.annual rental of TWO-THOUSAND FOUR-HUNDRED DOLLARS AND/00 ($2,400.00)Dollars or 20%of previous year's gross revenue whichever is greater,payable annually in advance in equal installments of TWO-THOUSAND FOUR-HUNDRED AND/00($2,400.00)each,and shall provide one advertising face on panel#20083(exhibit-B),installation paid'6y:the LESSEE with the first installment due on the first day of the month following commencement.Rent shall be considered tendered upon due mailing or attempted band delivery during reasonable business hours at the address designated by LESSOR,whether or not actually received by LESSOR. Should LESSEE fail to pay rent or perform any other obligation under this lease within thirty(30)days after such performance is due,LESSEE will be in default under the lease. In the event of such default,LESSOR must give LESSEE written notice by certified mail and allow LESSEE thirty(30)days thereafter to'cure any default. 3. LESSOR agrees not to erect or allow any other off-premise advertising structure(s), other than LESSEE'S, on property owned or controlled by LESSOR within five hundred (500)feet of LESSEE'S sign. LESSOR 'further agrees not to erect or allow any other obstruction of highway view or any vegetation that may obstruct the highway view of LESSEE'S sign. LESSEE is hereby authorized to remove any such other advertising structure,obstruction or vegetation at Y.ESSEE'S option. 4. LESSEE may terminate this lease upon giving thirty (30)days written notice in the event that"the sign becomes entirely or partially obstructed in any way or in LESSEE'S opinion the location becomes economically or otherwise undesirable. If LESSEE is prevented from constructing or maintaining a sign at the premises by reason of any final governmental law,regulation,subdivision or building restriction,order or other action,LESSEE may elect to terminate this lease. In the event of termination of this Lease prior to expiration,LESSOR will return to LESSEE any unearned rentals on a pro rata basis. 5. All structures,equipment and materials placed upon the premises by the LESSEE or its predecessor shall remain the property of LESSEE and may be removed by LESSEE at any time prior to or within a reasonable time after expiration of the term hereof or any renewal. At the termination of this lease, LESSEE agrees to restore the surface of the premises to its original condition. The LESSEE shall have the right to make any necessary applications with, and obtain permits from, governmental bodies for the construction and maintenance of LESSEE'S sign,at the sole discretion of LESSEE. All such permits and any nonconforming rights pertaining to the premises shall be the property of LESSEE. 6. LESSOR represents that he is the owner or lessee under written lease of the premises and has the right to make this agreement and to grant LESSEE free access to the premises to perform all acts necessary to exercise its rights pursuant to this lease. LESSOR is not aware of any recorded or unrecorded rights,servitudes,easements,subdivision or building restrictions, or agreements affecting the premises that prohibit the erection,posting,painting,illumination or maintenance of the sign. 7. In the event of any change of ownership of the property herein leased,LESSOR agrees to notify LESSEE promptly of the name,address,and phone number of the new owner,and LESSOR further agrees to give,the new owner formal written notice of the existence of this lease and to deliver a copy thereof to such new owner at or before closing. In the event that LESSEE assigns this lease,assignee will be fully obligated under this Lease and LESSEE will no longer be bound by the lease. This lease is binding upon the personal representatives,heirs,executors,successors,and assigns of both LESSEE and LESSOR. 8. Any condemnation award for LESSEE'S property shall accrue to LESSEE. 9. LESSEE agrees to indemnify LESSOR from all claims of injury and damages to LESSOR or third parties caused by the installation,operation,maintenance,or dismantling of LESSEE'S sign during the term of this lease. LESSEE further agrees to repair any damage to the premises or,property at the.premises resulting from the installation,operation,maintenance, or dismantling of the sign,less ordinary wear and tear. 10. LESSOR agrees to indemnify LESSEE from'any and all damages,liability,costs and expenses,including attorney's fees,resulting from any inaccuracy in or nonfulfillment of any representation,warranty or obligation of LESSOR herein. 11. If required by LESSEE,LESSOR will execute and acknowledge a memorandum of lease suitable for recordation. In addition to the foregoing,LESSOR authorizes and appoints"LESSEE as LESSOR's agent,representative,and attorney in fact for the limited purpose of executing on behalf of LESSOR such memorandum of lease and any amended memoranda of lease that are necessary or desirable to correct,amend,or supplement any matter set forth,in such memorandum. LESSOR further authorizes LESSEE to perform all acts that are incidental to or necessary for the execution and recordation of such memorandum or memoranda. 12. This Lease is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar Advertising Company. ADDITIONAL.TERM: DURING THE TERMS OF THIS LEASE SHOULD LESSOR SELL OR DEVELOP PROPERTY. LESSOR MAY PROVIDE:LESSEE•AN ALTERNATIVE LOCATION TO REBUILD AT AN'AGREED UPON LOCATION AT THE EXPENSE OF THE LESSEE. THE LAMAR COMP AN/IE LESSEE: ' LESSOR: CITY OF MONT G LLO BY: 'l� BY: D.DEV.ORE,VP/GENERALMANAGER MAYOR BY: c CITY ADMINISTRATOR DATE: / /ZO DATE: 763-271-3211 LES.SOR'S TELEPHONE NUMBER 41-60005385 LESSOR'S SOCIAL SECURITY NUMBER EMPLOYER IDENTIFICATION NUMBER ' 15S-a33-9a��la Tax ID Parcel#.(for land on which sign is.located) Address of LESSEE: Address of LESSOR: PO BOX:$65. 505 WALNUT STREET ST.CLOUD,MN 56302 MONTICELLO,MN 55362 Witnesses(LESSEE) Witnesses(LESSOR) 0�j /0 1 ,Z��A `' THE �` ' COMPANIES Lamar Co#157 This Instrument Prepared by: New James R McIlwain XXX Renewal 5551 Corporate Boulevard 265-01 Lease# Baton Rouge,Louisiana 70808 James R.McIlwain SIGN LOCATION LEASE THIS LEASE AGREEMENT,made this 61"day of FEBRUARY 2015,by and between: CITY OF MONTICELLO (hereinafter referred to as"Lessor")and THE LAMAR COMPANIES(hereinafter referred to as"Lessee"), WITNESSETH "LESSOR hereby leases to LESSEE,it successors or assigns,as much of the hereinafter described lease premises as may be necessary for the construction,repair and relocation of an outdoor advertising structure("sign"),including necessary structures,advertising devices,utility service,power poles,communications devices and connections,with the right`of access to and egress from the sign by LESSEE'S employees,contractors;agents and vehicles and the right to survey,post,illuminate and maintain advertisements on the sign,and to modify the sign to have as many advertising faces,includitig'changeable copy faces or electronic faces,as are allowed by local and state law,and to maintain telecommunications devices of other activities necessary or useful in LESSEE'S use of the sign. Any discrepancies or errors in the location and orientation of the sign are deemed waived by LESSOR upon LESSOR'S acceptance of the first rental'payment due after the construction of the sign. The premises are a portion of the property located in the County/Parish of WRIGHT COUNTY, State of MINNESOTA, more particularly described as: (CITY OF MONTICELLO)SIGN SITE LOCATION ALONG INTERSTATE 94(exhibit A) 1 MI NW/O JCT HWY 25 OUTLOT A,COUNTRY CLUB MANOR, STATE PERMIT NUMBER: 4567,PIN055-033 00010 1. . This Lease shall be for a term of FIVE(5)years commencing on the fast day of the calendar month following the date of completion of construction of the sign,or,if this is a renewal Lease,the term and payments begin January 1,2015 ("commencement date"). i LESSEE may renew this Lease,for an additional one-year terms,on the same terms and conditions. Said renewal term shall automatically go.into effect,unless EITHER PARTY shall give to THE OTHER written notice of non-renewal at least sixty(60)days prior to the expiration of the original term. 2. LESSEE shall pay to LESSOR an annual rental of TWO-THOUSAND FOUR-HUNDRED DOLLARS AND/00 ($2,400.00)Dollars,or 20%of previous year's gross revenue whichever is greater,payable annually in advance in equal installments of TWO-THOUSAND FOUR-HUNDRED AND/00($2,400.00)each,with the first installment due on the first day of the month following commencement.•Rent shall be considered tendered upon due mailing or attempted hand delivery during reasonable,business hours at the address designated by LESSOR, whether or not actually received by LESSOR. Should LESSEE fail to pay rent or perform any other obligation under this lease within thirty(30)days after such performance is due,LESSEE will be in default under the lease. In the event of such default,LESSOR must give LESSEE written notice by certified mail and allow LESSEE thirty(30)days thereafter to cure any default. 3. LESSOR agrees not to erect or:allow any-other off-premise advertising structure(s), other than LESSEE'S, on property owned or controlled by LESSORwithin five hundred (500)feet of LESSEE'S sign. LESSOR .further agrees- not to erect or allow any other obstruction of highway view or any vegetation that may obstruct the highway view of LESSEE'S sign. LESSEE is hereby authorized to remove any such other advertising structure,obstruction or vegetation at LESSEE'S option. 4. LESSEE may terminate this lease upon giving thirty(30) days written notice in the event that the sign becomes entirely or partially obstructed in any way or in LESSEE'S opinion the location becomes economically or otherwise undesirable. If LESSEE is prevented from constructing or maintaining a sign at the premises by reason of any final governmental law,regulation,subdivision or building restriction,order or other action,LESSEE may elect to terminate this lease. In the event of termination of this Lease prior to expiration,LESSOR will return to LESSEE any unearned rentals on a pro rata basis. 5. All structures,equipment and materials placed upon the premises by the LESSEE or its predecessor shall remain the property of LESSEE and may be removed by LESSEE at any time prior to or within a reasonable time after expiration of the term hereof or any renewal. At the termination of this lease, LESSEE agrees to restore the surface of the premises to its original condition. The LESSEE shall have the right to make any necessary applications with, and obtain permits from, governmental bodies for the construction and maintenance of LESSEE'S sign,at the sole discretion of LESSEE. All such permits and any nonconforming rights pertaining to the premises shall be the property of LESSEE. 6. LESSOR represents that he is the owner or lessee under written lease of the premises and has the right to make this agreement and to grant LESSEE free access to the premises to perform all acts necessary to exercise its rights pursuant to this lease. LESSOR is not aware of any recorded or unrecorded rights,servitudes,easements,subdivision or building restrictions, or agreements affecting the premises that prohibit the erection,posting,painting,illumination or maintenance of the sign. 7. In the event of any change of ownership of the property herein leased,LESSOR:agrees to:notify LESSEE promptly of the name,address,and phone number of the new owner,and LESSOR further agrees to give the new owner formal written notice of the existence of this lease and to deliver a copy thereof to such new owner at or before closing. In the event that LESSEE assigns this lease,assignee will be fully obligated under this Lease and LESSEE will no longer be bound by the lease. This lease is binding upon the personal representatives,heirs,executors,successors,and assigns of both LESSEE and LESSOR. 8. In the event of condemnation of the subject premises or any part thereof by proper authorities,or relocation of the highway,the LESSOR grants to the LESSEE the right to Tirocate.itsi sign'on LESSOR'S remaining property adjoining the condemned property or the relocated highway. Any condemnation award for LESSEE'S property shall accrue to LESSEE. 9. LESSEE agrees to indemnify LESSOR from all claims of injury and damages to LESSOR or third parties caused by the installation,operation,maintenance,or dismantling of LESSEE'S.sign during the term of this lease. LESSEE further agrees to repair any damage to the premises'or property at the premises resulting from the installation,operation,maintenance, or dismantling of the sign,less ordinary wear and tear. 10. LESSOR agrees to indemnify LESSEE from any and all damages,liability,costs and expenses,including attorney's fees,resulting from any inaccuracy in or nonfulfillment ofany representation,warranty or obligation of LESSOR herein. 11. If required by LESSEE,LESSOR-will execute,and acknowledge,a memorandu of lease suitable for recordation. In addition to the foregoing,LESSOR authorizes and appoints LESSEE as LE m SSORS agent,representative,and,attorney,in fact for the limited purpose of executing on behalf of LESSOR such,memorandum of,lease and any amended.memoranda of lease that,are necessary.or desirable to correct,amend,or supplement any matter set.forth in such.memorandum. LESSOR further authorizes LESSEE to.perform all acts:,that,are incidental.to or necessary•for the execution and recordation of such memorandum or memoranda. 12. This Lease is NOT BINDING UNTIL ACCEPTED by the General Manager of a Lamar Advertising Company. THE L R COMPANSEE: LESSOR: C F NTICELLO BY: A14ABY:- MARK D.DEVORE,VP/GENERAL MANAGER 6 MAYOR BY: t� r CITY ADMINISTRATOR DATE: J /I / ZO I S DATE: 'i l 2 i l 2 c 763-271-3211 LESSOR'S TELEPHONE NUMBER 41-60005385 LESSOR'S SOCIAL SECURITY NUMBER/ EMPLOYER IDENTIFICATION NUMBER 155-033,�060010 Tax ID Parcel#(for land on which sign is located) Address of LESSEE: Address of LESSOR: PO BOX 865 505 WALNUT STREET ST.CLOUD,MN 56302 MONTICELI O,MN 55362! Witnesses(LESSEE) Witnesses(LESSOR). CITY OF PHONE:763-295-2711 FAx:763-295-4404 0 iIce o 505 Walnut Street I Suite 1 Monticello,MN 55362 n November 22, 2019 Carter Clarke Reagan Outdoor Advertising .{ 3185 41s'Street NW,Suite 20 f Rochester, MN 55901 Mr. Clarke, As per agreement,the city of Monticello is providing Reagan Outdoor Advertising (successor of Fairway and Magic Media)with notice of lease cancellations for the signs located on Parcel 155-033-900010 (see attached). To allow for potential site development,the city is open to leases that could be terminated at any time with a 30-day notice.The lease terms would require the same upfront annual payment with a prorated reimbursement at termination. Additionally, the signs would need to be removed within a designated number of days after termination. Please contact me if you have any questions regarding the above. Thank you, LIVERY COMPLETE THIS SECTION ON DE e A. Signat -` Wayne Oberg ❑Agent Finance Director ■ Complete,items 1,2,and 3. ❑Addressee ■ Print your,name and address on the reverse C.Date of Delivery so that we can return the card to you. B. Rec ived by(Print d Name) ■ Attach this card to the back of the mail piece, _ ' 19 ❑Yes or on the front if space permits. D. Is delivery address ifferent from item 1? 1. Article Addressed to: If YES,enter delivery address below: Ff No (C1(-k't Caa4t ,, fiS f n 31s55 y 15 S+r&k N I ❑Priority Mail Express® 3,Cervice Type o Registered MailT"' II"III'I I'II I'lII I I II�I��I I IIII II I�'IIII'I I�I o Adult signature❑Adult Signature Restricted Delivery Registered Mail Restrtcl 111{ Delivery 91 Certified Mail® ❑Return Receipt for S Certified Mail Restricted Delivery Merchandise 959Q 9403 0547 5173 5235 88 Coiled on Delivery ❑Signature Confirmation ❑Collect on Delivery Restricted Delivery 0 Signature Confirmation ? 7 Insured Mail Restricted Delivery Article Number(Tran far from SBNiCB label) ]insured Mail Restricted Delivery j715- 0640 0006 8928 22],9 (over$500) Domestic Return Recoil PS Form 3811,April 2015 PSN 7530-02-000-9053 www.ci.monticello.mmus x i } r Ci .._: ;�" i ,ram i i �• t i k a a. a ' R i r r 3 f Magic Media, Inc. PO Box 1247•3416 Hwy 41 South•Tifton,GA 31793 800.732.8261 Fax 229.386.0203 www.magicmediainc.net Email:billboards@magicmediainc.net P-0-0 0044 May 2, 2006 City of Monticello Housing Authority 505 Walnut Street Suite 1 Monticello, MN 55362 Dear Landowner: Please find enclosed an executed copy of the lease agreement(s) with Magic Media, Inc. for your records. Thank you for your cooperation and the use of your property. If you should have any further questions or concerns, please contact your real estate representative at the North Central Divisional Office at (800) 282-6386. Respectfully yours, Caro] Bennett Corporate Real Estate Assistant Magic Media, Inc. Enclosure rod 31 MAKING OUTDOOR EASY TO BUY 04/2G/2006 22:19 IFAX ncifa0 magicmediainc.net + Carol Bennett 0 002/004 E MAGIC MEDIA INC. Ri+.A1. ESTATE LEASE A,urcenlent of lease made this I"tluv of January 2006 by-alld hcn4ien:MAGIC:MEDIA ItFAL b:STATE,I.I.0 of 17334 1 ill,Street NW.Suilc V3,li0ch0tcr,;vita 5it)O1, I'llorle(tigQ)282-6 S6, hereal'lcr referred it)as Lr.�src and:(rry OF 1.7f)>\'1 WELI.O HOUSING AUTHORYIN of i05 Walnut Street.Suite#L ktotlt'tcello.NNIN ii?h2 hereafter referred to wl Lessor. Lessor leases to Lessee and l.C5K:C leases from Lessor the IullolyinL,dt::crib(A-eai estate: A portion of land large..enou,ah to maintaill an outdoor adverlisiup,structure cont:tinitmr Milo faces lucuted along: S-9$11.1 miles sccstiJ[: i'HWY 2i/Slt164)41*VRt NV in the City of I'llonticellin('Dante of Writ,ht Stalc of MN. It is agreed that the intent of the Lessee i Ito lease the L.t stlr'.r land and maintain etn advertising hillbuard(s). It is agreed hurt this instrument is to act as a lease llof a lieeasc and that the hillboard(s)will always remn ai file pel•sun.tl pt'opt rt}'ul'the Lessee. It is also agreed that tilt:li)lin\rin_tenets will ap)�ly in and be a pan(if' this lease: I. The k.tsc will he for a point!of I (unc)years heuiuniltg un I/i/2M1(1- Lessee has the right to ruiew • ellj�t•;;tq:`;;t i12,•vnd offlee first 1l.`rN: of ye:tN!Or 11cric-d n!.ye arti:nl 111s:static Icnns anti list the same kola(:rental. This lease will then automatically renew itscll'Ircmt year to year unless otherwise-terminated by citiler party at toast ,O(thirty)days prior to the anniversary dale of this lease ill wrllin"'. 2. The ri neat liar this lease will ha S7,000.00(Seven Thousand Dollar l'er year). This amount will I-,C paid ill annual iustallnlc:nts, Lessor agrees to notify Lesser in\+ritine ofany delinquencies in rental illstrllnletlts•and agrees to grant at least.it thirty(.10)day,trace.period for I.c See to correct said delinquencies. The,race perind will haGin All the dale:of rcccipt ul'uotilication by Lessee. ;. Lcs.,-zee has the right to ilhlrtlinate said billboard(s)at it.discretion and Lessor gnolls an easenlcnl and a ri; tl to Lescc to run any wire above or below ground to accomplish ilhnninatioll. :1. Lessor,ivt:.ti Lessee tile:ri;,ht ul'in,res,-and e;,rcis over the properh of the Lessor whether leased or c. not in order Ili creel andlur service said billhoard(s). ;. Lessee has Ithe right to reotnye any gro\yflt or ohstructiurls thol hinder file view of said hillhoardl:s). Itetlmval is done, one at Lessor's expense if placcd un l..essnr s rrtaperty stil-cclucot Ill file date ul'lhis (case. 6. I.eswr warrants ho'she is the agent/owner of the herein describcd real cslate and that this real cstslla: is frt:c F1'utll ativ legal arratu:enlculs that may in any way}sewn(the i.essee from erectiut Mld/Or servicing.zid hillbuard(s). 7. 11,the event the Le!:See is Oyer prevented by ally 90verflnIclital ixidy or any-onc briving jurlStheltntl. or control over Ili,,, I'i'onl tuaintaining said billbaard(s).or if the real estate lairs its value is it 1113rc for outdtuor adverlisin;_purposes,the Lessee has the:right it)fernlinaty this lease by giving tilt: Lessor thirty(+O)days wrifltal notice of terminatinll. M. Tlic rights hereunder sat;vuruulative:md inure to the benef-0 of and hint the parties hervtu_their heirs. 1s:;igns,or successors in interest. The lessor agrees that Lcssvv play assign or xulslet Lessee's interest ht:ren 4,1 .without else con-,ent of l.cssur. t J;\\y1i tFS Ifn1l`t:It 44l l:1't,R�{g 04/29/2008 22:20 IFAX ncifax@magicmed4ainc.net Carol Bennett f�jd 003/004 �> It is a reed LIMI neither dw I xssur nor the hound by jute Siipulaiions,rcprescntatiuus ur awracmcnIS not :tnhotficd in this lea>c l U. Spcci;il Provisimns:AX)c.ScIj.,jtcjy"appjics caeh raneNvul year unless Icase is Wyminmed hy cithcr purly. Acccptr:d and Agreed by LFSSQR: Accepted and Agm-c(I by t1:1(il(_'\•1h:f 11i\ REAL 1'STATI?LLC. �'�f_.✓cf�:c",�_`v .. A Subsidiary ul'Magic Media.Inc. SS%Fcd IDW .� .-- _., Leasing Agent:_ Cl�•fZ� I' f'rz_ i I 04/26/2006 22:20 IFAX ncifax@magicieediainc'.net Caro! Bennett 2 002/004 MAGIC MEDIA INC. REAL E-;'[*ATE LEA'+E :lgreuncnl of[cast!rtladc lilts 1"day of.€alnualL 20110 by and between: MAGIC!MEDIA RVAI. ESTATE,LLC of 1734 1 Y'Street NW.Sidle 41.rochestcr.IM1` S:;901.Pholke i.stltl)252-6.i$6. lwrcafter relerrcd(o as Lessee and:CITY OF MONTICELLO HOUSIM,AUTHORITY ol'505 Widriul 'Street.Suite Afl.Mr,niicello. tti"1N 55162 hereaftcr rcicrrcd tr+a..Lessor. I.cssor leases to Lessee and Lessev Iea5l'1 Iron I.cssm the following,descrihal real estate: ;A portion of land large enough In tna ill Uill art outdoor advertising slrudure cot,taitlill llvo fares Iot filets ulunp- 94/1.2 miles tvtatlJ(."i'111 1�4/'S1lIG9 U;t in the city of Monti f NIN. it is a;:rMl HIM the intent of 111V LeF.sec is to Icit c the Lessor's laml and inainlain all advertising hillbourd(s). 11 is:!!,!reed that This insirumcut is to:let as a (civic 11ml a license told that the hillbourd(s)will always remain the personal prup%7r1y of the Lesser. it is also agreed that lite fallowing ic:rnls will apple ill and he a part of this lease: I- The Irasc will he For a period of I (,Otte)year's bc"inning,on I11R1116. Lcsscc lists the I'I'd,ht to renew this(case nt the end of the Inset period of ycars R+r an additional like period of years cln tie sane ICI"Ins and For:he sarlle lease rental. This leas:;:will tllc•+1 altum;atieally renew i!so')I'!'mill ye:!t!u ye::r unless otherwise lerminalcd by eillier party al Icasl 0(thirty)t il):s prior to t e anniversary diac of this lcusc in wrilin�;. 2 The rclltal for this lease will be S4,0110.110(Four"Cluinsantl I.M ilar Per year). This amounl will be paid in milltlil) {11Stallments. 1.cscor agrees to IIU11Iy I A;tsrc In Writing UI:Illy delinquencies ill rental iuslalhnentr.and ugrees to gr':lnt al least a thirty'(0)dry gnaw period li+r lessee to Vorrect said delinyLICIle N. "1'hr,race period Neill begin on thu date of reecipt ell'notilietltian by I,essce. Lessee.has tilt right to itlinlinate vfid billbuard(s)at it-,drsc.rciion and Lessor -m t s an easement and a right to Lessee to run any wire above or below rpround Lo accoanplich illumination. 4- Lessor Qiycs I xBScc the right elf ingress and egress over the property of'Ihr Lcssur whether leased or not in order to ercet ancUor service said hillboard(s). 5. Lesscc has the right Io remin'e any growth or nhstructians that lliuder the view ol'said hillbourd(s). Removal is dune nr Lessor's ccpcnsc if placed an Lessor's property subsequent to the date of this lease. 6. Lcssor warrant_.hc:slic is tilt:agent/owner of tilt herein described real c-.Aale and that t[liti"cal CSI3te is li'c:r teem any legal arrangements that play'in any way prevent the Lc.:u e from erecting mad/or semcin"Said billhoardts). 7. in the event the).cssee is ever pl•cvented by any_uvrrnmental body or anyone having jurisdicliml. or control over him from maii'minilt;said hillboard(s)•ur it the real estata lusts its vahrc as a place lot' ptn'poses.Ihu Lessee hag;the right in terminate this lease by giving!Lite Lessor shirty(10)days written notice!+I'terminntion. ti. The riy-llts hereaader an culrudiaive and inure 1u lite hcnctit ofand hind the Irarticr, hereto.their heirs.assigns,or KLIM:Ssors in interest. 1'he. I.cssnr agrees that i.esscc lnay assign ar sublet I o.sec's interest hereunder wiIhout Ilir.consent of Lessor. tt. It is atrced that ncithur the I.cssor nor the Lesser is bound by any sliptilations•represenialions or a4rcclncnls not embodied in this tra•c. 04/26/2003 22:20 IFAX ncifax@magicm'ed,iaine.-n et a Carol Bennett 0 0 3 0 0 4 A Special pl-kivisitins:A escalator applies each ruw%val y%!31-unless lease is terminated by cillicl. IX party. Accepted mid Agreed by l,hSS(.)R: Accepiv(l utttl A,-real by JYSSFI--.: N--IA(',IC tvll:l)IA RLAL FKI A FF 1.1,C, A Silh,,jdjarN'-'d MaLic M c'-dia. LlIL;. //V Zr, Phone f, Numc: Q.-SiFccl 110 Leashig Aguil: . Beacon Iry Wright County, MN Overview eR0•qo �, 1 55 0402101 15 00101 t05 ,�qr w 155500101202 3ip�sr � _ �__ 39 NE GOL-FwCOURSE RD 39 �~ � aryS,r1' Legend s'rh!S Roads r 1 — CSAHCL F'41RWAY pR — CTYCL siHisr V — MUNICL — PRIVATECL • .� — TWPCL � 155033900010 ���5 �L Highways — Interstate — State Hwy L — US Hwy v 155226000020 City/Township Limits ❑ c 155R t 15 17100a050 94 _ Parcels Torrens 910 ft�, oads o�c Parcel ID 155033900010 Alternate ID n/a Owner Address CITY OF MONTICELLO EDA Sec/Twp/Rng 10-121-025 Class 958-MUNICIPAL PUB-OTHER %EXECUTIVE DIRECTOR Property Address Acreage n/a 505 WALNUT STSTE 1 MONTICELLO,MN 55362 District 1101 C ITY OF MONTICELLO 882 H Brief Tax Description Sect-10 Twp-121 Range-025 COU NTRY C LUB MANO R OUTLOT A (Note:Not to be used on legal documents) Date created:6/3/2021 Last Data Uploaded:6/3/20217:48:58 AM Developed by4"Schneider GE0S PAT IAL Doc_ No. A 1080161 No delInquent taxes and transfer entered; Certificate OFFICE OF THE COUNTY RECORDER of Real EActe Valuo F flied (Xnot required WRIGHT COUNTY, MINNESOTA Certificate of RealE3E.it_eValL-c N,�. a /— 6 _ Certified Filed and/or Recorded on a J 02-2 1-2008 at 03.15 Wright County Auditor Check#: Fee: $46.00 Payment Code 04 by Addl. Fee ierlt o Deputy Larry A. Unger, County Recorder Quit Claim Deed STATE DEED TAX DUE HEREON: $1.65 The total consideration for this transaction is $500.00 or less. Date: �►--�.si��, �, `Z C�] t'D FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Monticello, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quitclaims to the City of Monticello Economic Development Authority, a public body corporate and politic under the laws of the State of Minnesota, Grantee, real property in Wright County, Minnesota, described as follows: Outlot A,Country Club Manor, City of Monticello,Wright County, Minnesota. (if more space is needed,continue on back) together with all hereditaments and appurtenances. Reservations, restrictions and easements of record, if any. County of Wright Deed Tax $ 41 • (.0 s HOUSING AND REDEVELOPMENT AUTHORITY Ag Fee $ -S , 00 IN AND FOR THE CITY OF MONTICELLO Rec#3oWZa Dater By 2z� Its Secretary _ By Its hairperson 325979v1 JMP MN190-130 STATE OF MINNESOTA COUNTY OF WRIGHT �day The foregoing w acknowledged before me this d o P , 2009, by V and ,,, . the secretary and chairperson f the Housing and Redevelo meat A hority of Monticello, a body politic and corporate under the laws of the State of Minnesota, on behalf of the authority, Grantor. r NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAID SI N Ci AC OwLEBGM PATRICIA K, KOVICH NOTARY PUBLIC-MINNESOTA My Commission Expires Jan.31.2010 Check here if part or all of the land is Registered(Torrens)❑ Tax Statements for the real property described in this instrument should be sent to(include name and address of Grantee): This instrument drafted by: City of Monticello Economic Development Authority Kennedy& Graven, Chartered 505 Walnut Avenue, Suite 1 470 U. S. Bank Plaza Monticello, MN 55362-8822 200 South Sixth Street �0' Minneapolis, MN 55402 325979v1 JMP MN190-130 EDA Agenda: 06/09/21 8. Consideration of Authorizing Cedar Square Site Development Timeline and Developer Review and Selection Process (JaT,JT) A. REFERENCE AND BACKGROUND: Over the past three months, City staff have been receiving inquiries of interest from developers regarding EDA owned property on the Cedar Square site. This 1.39-acre site was previously known for being the location of the Fair Garden Center and in the recent past an older two-story single-family home that had been converted into upper and lower apartment units. The site is listed on the Co-Star online web listing for a price of$389,000. There are no commission requirements for listings on Co-Star. In recent weeks, two developers have followed up on their original inquiries and provided concept sketch layouts and elevation drawings showing their proposed multi-family apartment uses for the site along with letters of interest-intent. They have both indicated that they are ready to move forward on their respective proposals as quickly as the process allows. The Small Area Plan (SAP) adopted by the EDA and City Council in late 2017 shows the site as multi-family housing. The SAP was also incorporated into the Monticello 2040 Comprehensive Plan update adopted by the City Council November 2020. Relevant excerpts from the SAP are attached for reference. Also, during the EDA's discussions about its overall land holdings in its December 2020 workshop, the EDA reiterated that it preferred that the site follow the SAP guidance for multi-family housing. It was also mentioned that considerations for further discussion with prospective developers would tilt toward the details included in specific proposals that may be submitted. With that as background and previous guidance, the EDA is asked to again review and discuss the Cedar Square site, vision and potential next steps in the redevelopment process. In the context of development options for the Cedar Square site guidance as multi-family, the EDA also needs to consider the timing and nature of proposals in the light of the Block 52 redevelopment process (also proposed for multi-family uses). If the EDA chooses to move forward in making the site available to the development community, the following is a suggested process, similar to what has been used in the recent past for gathering developer interest and vetting qualifications and ultimately entering into discussions regarding specific proposals. Step 1. A questionnaire regarding the pertinent critical design features and challenges would be provided to each of the developers. Step 2. EDA workshop to review the responses to the submitted RFQs. Step 3. EDA workshop with preferred developer candidate(s) to evaluate whether stated goals and ideas are mutually shared and discuss realistic project design and task delivery. EDA Agenda: 06/09/21 Step 4. EDA enters into a Development Agreement with selected developer reflecting workshop discussion points Step 5. Other steps as identified by staff or EDA during discussion and feedback session. If the above outline is acceptable, a questionnaire will be developed in final form and provided to developers for consideration of submitting responses and possible further involvement with the EDA regarding the Cedar Square redevelopment efforts. Al. STAFF IMPACT: The staff impacts in reviewing the Cedar Square redevelopment vision and process are fairly modest. A2. BUDGET IMPACT: There is a minimal cost involved in the Cedar Square site redevelopment process presentation and discussion. The minimal cost includes staff time and minor copying expenses which are covered in the EDA General Fund budget. B. ALTERNATIVE ACTIONS: 1. No motion; discussion of the development site and feedback of vision, timeline and process for Cedar Square site. 2. Motion of other as determined by the EDA. C. STAFF RECOMMENDATION: Staff defers to the EDA for action. D. SUPPORTING DATA: a. Small Area Plan Excerpts referencing Cedar Square Site development guidance b. Cedar Square Site Concept Sketch provided by Anderson Engineering c. Cedar Square Aerial and Property Information d. December 09, 2020 EDA Workshop— EDA Land Holdings Summary Information e. DRAFT Redevelopment RFQ Questionnaire (short form) b N � blD r !I a• y� > a+'49 7 �` ' N r G a Y ' H — �. A '- P- 0'mod o v 3 «p Ol it V 0 u a a G . 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E n o c '.. a > > m > > E E E > m'.6 f w w o 0 3 2 ° 2 O O w 3 5 o c U Y U Y U 0 C CO w w v w - w - w w a 1 -av o ovo aw zm a w 'E x x 0- 3 3 X 3 X 3 w x Q 0 _m 0o u c 'C N '"^ O O N N N N 0 0 0 M O U U U E< o< K K U U U G w m N 0 Vi N Y m M1 r W in N 3 3 3 3 3 3 w N >W mws� v v0 m00 m0 A0 R+omo 3 vo m m m c$ vc 0.C W W > jn U •j O M N V1 V 111 c-1 O) H O C1 s O• d e-1 N N N 0N EDA Workshop Meeting—12-09-20 - 4:30 p.m. Academy Room and Go-To Item 3-Exh B- EDA Owned Land Development Priority Discussion Summary Information Downtown Block 52: Interest by developers remains strong; land assembly is the first priority as per EDA discussion at the November review of Block 52. It is possible that the City-EDA may be able to apply for MN-DEED Redevelopment Grant funds in mid-2021. After the Johnson property acquisitions,the EDA and City will control approximately 73 percent of the entire land area in the Block. This will allow a creative footprint for prospective developers. Downtown Block 34: Undefined future interest has been expressed by a developer. The main work on pursuing redevelopment of the Block is likely 24 months or possibly more into the future. The key challenge remains the small engineering firm located in the middle of several EDA owned properties. Staff remain optimistic that the right opportunity may be attractive to all impacted parties. ag""p Cedars �'feropers have inquired about the parcel ja tb + ears. � 44 #;f ,rea.Study as rt lti-famif}tfic rsr rg:' t`tjft 'jSf 9ke'tch was completed by Anderson Engineering indic 0g'4. Jti=.tarC i4y4evelopment with a!IvpAl cpm.er Commercial area. East 41"Street Property: These three parcels total about 1.63 acres in size. The surrounding area properties are single family uses. There is an apartment building along Cedar Street just to the west of the site. For a moderate level of density the site would need to be rezoned to something other than R- 2. 7tn Street Parcel alone 1-94: There was brief interest in late 2019 for a dense multi-family development at the nearly 16-acre site. Changes in the MHFA funding process seem to affected the level of interest by the prospective developer. In late summer, a housing developer that works on independent living projects asked about the site. DRAFT Cedar Square Redevelopment Questionnaire 06-09-21 • What is the developer's previous experience in working on downtown or urbanized redevelopment projects? • Is the developer interested in a long-term commitment as an owner of multi-family residential property in Cedar Square? • Is the developer comfortable with constructing a higher-end multi-family building? How many units would be proposed? • What kind of finishes does the developer consider high-end in multi-family buildings? • Would commercial square footage be proposed? If so, how much? • Is the developer open to entering into a Preliminary Development Agreement with the EDA to further define Cedar Square steps? ' • What is the developer's estimate regarding value of total investment in Cedar Square? • Would the developer want or need tax increment flow as a component of overall project financing or is any other financial assistance anticipated? • Is the developer willing to pay the EDA for land that it has acquired to alleviate cost for the EDA? EDA Agenda: 06/09/21 9. Economic Development Director's Report (JT) A. City Volunteer Picnic—June 24, 2021 at 6:00 p.m. West Bridge Park (see attached informational flyer; Exhibit A) B. Drone Video Footage of EDA Sites: Otter Creek Business Park Shovel Ready Lots: https://youtu.be/ecuQ8FU0lf4 The OCBP drone video flight was funded courtesy of Wright County Economic Development Partnership 4t" Street: https://youtu.be/XSshXMetn3E Cedar Square: https://Youtu.be/giLYPBZ9Hvk The drone video of the two core city EDA owned sites is a fee for service with an estimated cost of$650. C. Prospect List: Please see the updated Prospect List as Exhibit B. 1 T(ou andyourfamify are PLLY s 1 I ■ 0 ;'7*END �J VOLUNTEER mw_ - MMEMMIN.- THURSDAY, JUNE 24 TH 6 . 7:30 PM RSVP to HR@ci.monticello.mn.us by June 22nd ! ! I ! 2 ! # » ! » ! # » a ! » ! ) ! ! ! ! » » \ y � ■ ■ k n § # k § / � ■ M + ■ k § / ) § k , 2 ! \ § # ! K r ! § / , a } ! ! 2 f } ! f } ■ = e ! \ \ \ k k * ; ! ! 2 ! ! ! ! ! ! ! ! ! ! � \ ! - !!; , § } ! �