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IEDC Agenda 06-01-2021 AGENDA INDUSTRIAL&ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, June 1, 2021 —7:00 a.m. North Mississippi Room,Monticello Community Center In keeping with safe practices and minimizing contact and potential community spread of the COVID-19 virus, the IEDC meeting will be conducted as a virtual online meeting. Participants can attend remotely via Go-To: Web Link: https://global.gotomeeting.com/join/294416277 Phone Dial In #: United States: +1(571) 317-3112 Access Code: 294-416-277 Members: Chairperson-Randy Skarphol, Vice Chairperson Liz Calpas, Joni Pawelk, Brian Hudgins, Darek Vetsch, Kevin Steffensmeier, Steve Johnson, Wayne Elam, Luke Dahlheimer, Dick Van Allen, Don Roberts, Andrew Tapper, Mike Carr, Meghan Hanson, Thomas Conboy, Sarah Kortmansky Liaisons: Rachel Leonard, Angela Schumann, Jim Thares, Jacob Thunander, Marcy Anderson, Jolene Foss, Dave Tombers, Tim Zipoy 1. Call to Order 2. Approve Minutes: a. May 4, 2021 meeting minutes 3. Consideration of Adding Items to the Agenda 4. Table Topic —#1. Darek Vetsch,Wright County American Rescue Plan funding #2. Tom Conboy—Xcel MNGP Facility Update 5. Restaurant Subcommittee Update—Draft Meeting Minutes (4-23-21 Meeting) 6. Reports (Verbal Reports): a. Economic Development • Projects Update • Prospects List • Volunteer Picnic — 06-24-21 West Bridge Park (See Information Flyer) b. Planning Commission Agenda(attached) c. City Council d. Wright County Economic Development Partnership e. Chamber of Commerce 7. Adjournment(8:00am) MINUTES INDUSTRIAL& ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, May 4,2021— 7:00 a.m. North Mississippi Room, Monticello Community Center Participants attended remotely. Members Present: Chair Randy Skarphol, Vice-Chair Liz Calpas,Joni Pawelk, Darek Vetsch, Kevin Steffensmeier, Brian Hudgens, Steve Johnson, Mike Carr, Thomas Conboy, Luke Dahlheimer, Wayne Elam, Don Roberts, Andrew Tapper, Dick Van Allen, Meghan Hanson, Sarah Kortmansky Liaisons Present: Marcy Anderson, Jolene Foss, Rachel Leonard,Jim Thares, Dave Tombers 1. Call to Order Randy Skarphol called the regular meeting of the IEDC to order at 7 a.m. 2. Approve Minutes: a. April 6,2021 meeting minutes LIZ CALPAS MOVED TO APPROVE THE APRIL 6, 2021 MEETING MINUTES.MOTION SECONDED BY WAYNE ELAM. MOTION CARRIED UNANIMOUSLY, 16-0. 3. Consideration of Adding Items to the Agenda a. In June or July, Darek Vetsch said he would like to bring forward discussion about the American Rescue Plan (ARP) and how the County should use the $26.3 million and whether some of it can or should be used for infrastructure. b. Suggestions for an update from a state rep to talk to the group about the political aspects of what is happening at the Capitol in St. Paul. Darek Vetsch said that he will touch base with Representative O'Neil to see if she is willing to speak to the group at the June meeting. 4. Meeting format for June 2021 and August thru December 2021 Report Jim Thares said he wanted to provide and update and structure of the meetings going forward. The plan right now is to have the June meeting be the last solely virtual meeting. Typically,the IEDC skips its meeting in July, so starting in August, the meeting would be in person provided everyone is comfortable gathering again. Unless something unforeseen happens intensifying the COVID-19 crisis in the early summer, that is the plan. Several members asked if it would be possible as a convenience factor and comfort level, members could still attend remotely; can there be a combination virtual and in-person meeting format? It was noted that this flexibility may help to increase attendance at the meetings. 5. Wright County Economic Development Partnership Report—Jolene Foss Jolene Foss provided an update on the Wright County Economic Development Partnership and what they have been working on. Highlights include: • Continuing work on marketing and promoting all businesses in Wright County. • Received a $10,000 grant from the Initiative Foundation to continue the work on the Workforce Pathways Initiative reboot. A lot of businesses are hiring, and the partnership will be attending business expos and other events as they open to help promote the program and direct the public to the website. Some key items for the group: o Chamber summits: these will be recorded and posted on their website. o New website launch next week, the link will be emailed to members. o Capacity building seminars (aka, learning luncheons). June 91" is the next seminar, and it will be about business financing options in Wright County. o Wright County EDA: marketing properties owned by the county. o $5,000 grant received for training licensed in-home daycare providers in first aid and CPR. This is a "no cost certification" for daycare providers, and the grant allows for 50 providers to be trained and certified. • Promotional video for shovel ready locations in Wright County. Currently 3 sites are shovel ready in Monticello. Jim Thares said that Kraus Anderson (K-A)did the drone flyover last week for the 3 shovel ready areas in Otter Creek Business Park (OCBP) and that short video clip is being put together. The partnership will promote that through the website and various social media platforms. • Broadband speed test: Commissioner Vetsch touched on this a bit more and he explained that Wright County is looking to lay fiber in the ground to get internet service providers to offer new or upgraded service to the areas in the county (primarily in the western portion) that have the slowest broadband speeds. As part of this effort, the county is asking residents to take an internet speed test through the Minnesota Rural Broadband Coalition. The speed test takes just a couple of minutes and will help county planners identify areas that have the greatest need. The link to the speed test can be found on the Wright County website or visit https://mnruralbroadbandcoaIition.com/speedtest. Jolene said they are working to get the word out and encourage more people to take the speed test. With the results, the county can prioritize where to put the infrastructure. • Increased development:Throughout the county there is an increased number of single- family home building permits. A lot of commercial development in communities along the freeway. This is all positive. 6. Table Topic—2020 US Census Results for Minnesota—Megan Dayton, MN state Demographic Center Megan Dayton was unable to attend due to a family emergency, so her presentation will be rescheduled to the August meeting. Thares discussed the press release that was included in the agenda packet. 7. Reports(Verbal Reports): a. Economic Development • Proiect Update: Jim Thares reviewed. • Prospects List:Jim Thares reviewed. • Building Permits Update: Jim Thares reviewed. b. Planning Commission Agenda (attached):Jim Thares reviewed. c. City Council: Rachel Leonard provided updates as follows: • Waiving liquor license fees for 15 businesses in the community to help compensate a little bit for the effects from the closures the last year. • Chelsea Commons: Council approved additional study and analysis of the project. Originally was a small area plan but given the interest in the different areas of the project, requested funding for a more in-depth traffic analysis, financial analysis, as well as a stormwater and grading plan, and those have all been approved. There is a joint workshop tonight with Planning Commission & City Council to look at the preferred concept for the larger project area. • Haven Ridge 2nd:47 single family homes. This has been approved. • Storage Link: Council approved PUD, final plat, and development agreement with storage link to develop at the corner of Chelsea Rd &90t" Street. d. Chamber of Commerce: Marcy Anderson provided updates as follows: • The Chamber Annual Fundraiser Golf Tournament, June 12, 2021, is nearly full with participants. The Tournament will be held at the Monticello Country Club. It filled sooner than expected. It might be an indication that people are feeling comfortable getting backto together. All information can be found on the Chamber website. • Good Morning Monticello: This has just started back after a full pause year. The first one was well attended which is promising for the business community. • Housing Needs: Marcy said she has been getting a lot of comments and questions about housing in Monticello, so she has been sending information out on the Haven Ridge development and sharing that contact information. • Business Community Staffing Issues: The business community is really hurting and having a difficulttime finding sufficient workers to allow them to be open for regular hours. Some businesses are compromised and need to close certain days due to staffing.They are desperate for help and it is going to be a hard summer if they cannot get help. Marcy said she will be working with Jolene Foss to try and get the word out to connect people with the jobs; it will be a group effort. 8. Adjournment: ANDREW TAPPER MOVED TO ADJOURN THE MEETING AT 8:01 A.M. MOTION SECONDED BY SARAH KORTMANSKY. MOTION CARRIED UNANIMOUSLY, 16-0. Recorder: Beth Green Approved: April 6, 2021 Attest: Jim Thares, Economic Development Director IEDC Restaurant Committee Mtg.-10:00 a.m.04-23-21 — Rive rwood Bank Conference Room Mtg.Attendees: 1. Randy Skarphol 2. Marcy Anderson 3. Darek Vetsch 4. Wayne Elam 5.Jim Thares Initial discussion focused on challengesthat restaurants have been takingon in the time of the pandemic. It was noted thatthose who have been creative and adaptive are doing betterthan those who made few if any changes to schedules or menus or service format. Drive through windows seem to be a very important service offeringthat have allowed some restaurants to thrive duringthe pandemic. Wait staff and kitchen staff costs are increasing very rapidly right now. The larger retailers in the community are paying more per hour and that forces restaurants to compete with similar wages. The new cost structures make it very challenging to compete and be profitable. Randy noted that he has talked to some experienced restaurant operators located in the Twin City metro area and they indicate that it takes a solid demographic profile and the right threshold of household income to entice anew mid-tierto uppertier restaurant into anew location. The question is does Monticello have the data to show that it can meet the criteria required to support a new restaurant? There is a popular successful restaurant in the St. Cloud area called Coyote Moon Grill that maybe an attractive prospect to approach regarding the potential to establish avenue in Monticello. Randyand Jim indicated that they have eaten at the restaurant and it is a very nice establishment. Jim indicated that there has been some past effort to reach out to the owners about Monticello possibilities. The goal of the committee is to outline the steps and process and perhaps assistance package(s)that maybe needed to help attract anew uppertier restaurant. The committee members expressed that it was betterto attract a small regional chain or unique independent restaurant ratherthan a national chain. The larger national chains typically have a set formula related to population and income metrics and thresholds which they look at before they even consider exploring a community in more depth. Smaller capacity facilities are going to be more profitable and sustainable ratherthan a larger footprint operation. Offering private meeting room is also a key feature to carry business activity through the slower days of the week. The larger footprints of6,000 square feet will be very difficult to sustain. Smaller footprints of 3,000 to 3,500 square feet will probably be able to survive. Smaller kitchens pared with catering will help anew restaurant survive also. Aland grant assistance package should be considered as an inducement to a desired owner-operator. This would generally equate to about 10 to 15 percent of a total project investment and can help make a project successful. Rough estimates of cost fora 3,500 square foot facility equals about$1,200,000. Costs fora 4,000 to 6,000 square foot restaurant equate to about$2,500,000 to$3,000,000. Anew restaurant may need or want to be near an existing or new hotel. Anew hotel would help Monticello capture more of the business traffic that is now leaving and staying in the Maple Grove area. There is really not a great restaurant option in the community right now fora birthday or anniversary celebration type of meal. The committee may wantto ask the City or the EDA if it would have an interest or the ability to acquire property and hold it for a future new restaurant. As we emerge from the pandemic economic activity will increase though it could be a 2 to 3 years yet before a hotel and restaurant would be willing to come into Monticello(2023 or 2024). Restaurant staffing issues will gradually equalize and settle into a more sustainable model;hopefully that occurs by 2023 or 2024. Location and partnerships are also keyfactors in a successful restaurant. Jim updated members on two prospective small entrepreneurial restaurant concepts that are currently looking forspace in the core downtown area. Members agreed that an assistance package of approximately$400,000 to$500,000 would be needed to help a restaurant decide to locate in Monticello. The assistance could be in the form of a land grant. Jim noted that there are loan programs such as the G MEF that can be provided to support new restaurants. Perhaps the County may have some fundingto assist also. A targeted marketingflyerwould also be beneficial It should include the following information: A. Community demographics and growth features B. Location options C. 2023 Development Goals D. Traffic flow relative to site options E. Building costs in our region F. Labor supply information It was noted that maybe the Wright County Economic Development Partnership(WCEDP) has some funds that could be offered as well. Darek will look into this. Also, members would like to add Jolene Foss,WCEDP Executive Director,to the committee as well going forward. Next meetingwill be in late July or August. Jim will coordinate with Randy on time and location. IEDC Agenda: 06/01/21 6. Project Update(JT) A. UMC Expansion Project Update: UMC started construction of its 58,000 square foot expansion project on April 14, 2021. The nearly 11,000,000 project is rapidly progressing with completion expect to be in late 2021. As part of the financial assistance through the Minnesota Investment Fund (MIF), UMC has agreed to hire 47 new FTE (fulltime equivalents) by January2023. UMC's current headcount is approximately 200 staff. UMCis currentlythe fifth largest employer in the City of Monticello. B. Block 52 Update: The EDA directed City staff to prepare a Preliminary Development Agreement with the Developer who is currently working on the Deephaven Apartment Phase 1 building in the north area of what is now being referred to as Chelsea Commons for consideration at the June 9, 2021 meeting. The EDA will also hold a workshop with the developer discussing more specific layout and timeline for the full Block redevelopment prior to the regular meeting on June 9, 2021. C. Prospect List Update: Please see the updated Prospect List 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 AGENDA REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday,June 1,2021 - 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Paul Konsor, John Alstad, Andrew Tapper,Alison Zimpfer, and Eric Hagen Council Liaison: Charlotte Gabler Staff: Angela Schumann, Steve Grittman (NAC), and Ron Hackenmueller 1. General Business A. Call to Order B. Consideration of approving minutes a. Regular Meeting Minutes— May 4, 2021 C. Citizen Comments D. Consideration of adding items to the agenda E. Consideration to approve agenda 2. Public Hearing A. Public Hearing—Consideration of a Requestfor Preliminary and Final Platfor Deephaven 2 and Conditional Use Permitfor Cross and Joint Access and Parking Applicant: Mark Buchholz 3. Regular Agenda A. Consideration of a request for a six-month extension of an amendment to Conditional Use Permit for accessory structure in an A-O (Agriculture/Open Space) District to accommodate an open, covered patio over existing outdoor entertainment space. Applicant: Monticello Country Club B. Consideration to find that the disposal (sale) of Lot 2, Block 1, Jefferson Commons 15t Addition by the City of Monticello is consistent with the Monticello 2040 Comprehensive Plan C. Consideration of an update on City and EDA-related Downtown Activities D. Consideration of the Community Development Director's Report 4. Added Items 5. Adjournment PROSPECT LIST 06/01/2021 Date of Contact Company Name Business Category Project Description Building-Facility RMained lob2 To[el Investment Project Status 11/12/2016 MN DEED Prospect Metal Mfg. Exist Facility+Equip 65,000 sq.ft. 0 55-100 $2,500,000 Active Search 11/17/2016 Project No-v2 Precision Machining New Facility Constr.+Equip 52,000 sq.ft. $10,831,000 Construction Project N6580 Metal Mfg. New Facility C-A, 70,000 sq.,. $5,480,00_� On Hold 10/4/2017 Project Shepherd Tool Mfg. New Construction 70,000 sq.ft. 60 50 $5,900,o00 On-Hold 10/17/2017 Project Ted Equipment Mfg. New Equipment N/A 45 $650,000 Concept Stage 5/22/2019 Karlsburger Foods Food Products Mfg. Facilty Expansion 20,000 sq.ft. 49 3+/- $2,500,000 Act-Plan-Fin 7/3/2018 Projectsynergy Office New Construction 15,000 to 20,0o0 sq.ft. 15 $3,000,000 Concept Stage 7/30/2018 Projectsaturn Plastic Products Mfg. New Construction 5,000+/-sq.ft. 4+/- $830,000 Active Search 8/10/2019 Projectfupiter Metal Mfg. New Ca--ion 5,00o sq.ft.+/- 3 $800,000 Active Search 11/29/2018 Project Blit- Precision Machining Exist Bldg or New Conrt. 12,000 sq.ft. 10 $1,200,000 Concept stage 12/14/2018 Project Comet Commercial Bus New Umt. 1,200 sq.ft.+/- ] $200,000 Active Search 3/28/2019 Project Nutt Co-Working Space Exi.ing Building Concept stage 5/9/2019 Project FsJP Light Mfg-Res.Lab New Construction 20,000 sq.ft. 0 20+/- $1,400,000 Active Search 8/16/2019 Projecttaguar Office New Construction 22,000 ml.ft. 22 4 $2,700,000 Active Search 8/25/2019 Ausco Design Prod. Exi.mg Building 8,00o m.ft. 4 3 $665,00o Concept stage 9/19/2019 Project Kata Service New Construction 22,000 to 35,0o0 sq.ft. 0 25 $7,900,000 Concept stage 1/20/2020 P� Service{hild Care New Construction 3/31/2020 Project Giasaurus Medical Prod.Mfg. New Canrtru m )ktiv25earcY 4/7/2020 Project Copperhead. t0fiby FitLd4kB1RF,Pd.Mfg. Expansion of Exirting Bldg. ,.. Construction S/21/2020 Verde Plus lawn Care Service Existing or New Construction 4,000 to 6,000 sq.ft. 0 3 $550,wo Active Search 8/27/2020 Project Nuss Combo Servict`sale New CanshuRion 20,000 sq.ft. 0 20 to 30 $3,500,000 Concept Stage 12/23/2020 Project TD Industrial Existing or New Con -ion 10,000 to 15,000 sq.ft. 0 5to7 $800,000 Concept Stage 11/5/2020 Project Flower Office Existing 7,0008,000 ml.ft. 0 12 $750,000 Concept Stage 2/16/2021 Project Cold Industrial-Warehouse-Distri New CanshuRion 80,000 ml.ft. 0 21 $12,000,000 Conceptstage 2/18/2021 Project Shay Loung�Restau M Existing Bldg. 2,200 0 4 $150,000 Conceptstage 2/18/2021 Project Counsel Of6-s-ice New Construction 5,600 sq.ft. 24 3 $1,120,000 Concept Stage 3/19/2021 Project Orion Warehouse-Distribution New Construction 832,500 sq.ft. 0 500 $125,000,000 Active Search 4/23/2021 1 Project Emma Light lnd-Assembly New Cttnshu m 20,000 sq.Ff. 0 4 $1,350,000 Active Search Co--:M=02 WD=11