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EDA Agenda 12-08-2021
AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 8th, 2021— 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Executive Director Jim Thares, Angela Schumann, Sarah Rathlisberger 1. Call to Order 2. Roll Call 3. Consideration of additional agenda items 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes— November 10, 2021 b. Consideration of Approving Workshop Meeting Minutes — November 10, 2021 c. Consideration of Payment of Bills Regular Agenda 5. Consideration of Business Subsidy Affordable Housing Tax Increment Financing (TIF) Application from Headwaters Development for Multi -family and Twin -home patio homes on EDA owned land located at Country Club Addition, Outlot A and Authorizing EDA staff and Consultants to draft TIF Plan and a DRAFT Purchase and Development Contract for the sale and development of the land 6. Consideration of Resolution #2021-14 Calling for City Council to hold a Public Hearing related to establishing an Affordable Housing TIF District, #1-42 7. Consideration of Northland Securities, Inc. Financial Services Agreement related to Tax Increment Financing (TIF) "But -For" Analysis and Plan preparation for proposed Affordable Housing TIF District, #1-42 8. Consideration of Feedback and Direction of Proposed Marketing Plan -Strategy for 2022- 2023 9. Economic Development Manager's Report 10. Adjourn MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 10th, 2021— 6:00 p.m. Mississippi Room, Monticello Community Center Members Present: President Steve Johnson, Treasurer Tracy Hinz, 011ie Koropchak-White, Mayor Lloyd Hilgart and Councilmember Jim Davidson Members Absent: Vice President Jon Morphew and Hali Sittig Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. Call to Order President Steve Johnson called the regular meeting of the Monticello Economic Development Authority to order at 6:00 p.m. 2. Roll Call 3. Consideration of additional agenda items None 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes — October 13, 2021 b. Consideration of Payment of Bills c. Consideration of Authorizing a Donation to the Initiative Foundation for use in Community Economic Development Programs in the amount of $2,390 from the 2022 EDA General Fund Budget d. Consideration of approving Billboard Lease agreements with Lamar Companies and Reagan Outdoor Advertising MAYOR LLOYD HILGART MOVED TO APPROVE THE CONSENT AGENDA; JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. Regular Agenda 5. Consideration of Resolution #2021-13 Authorizine enterine into a Purchase Aereement with KC & the Boys, LLC for acquisition of real property located at 113 West Broadway in the amount of $528,000 Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. The 8,552 square foot property is located in the middle of Block 52 and fronts on Broadway and given its location it is critical the EDA's goals of redeveloping Block 52. The proposed purchase price is $528,000. The acquisition of the parcel will give the EDA and City control of 83 percent of the land area in the Block. The two tenants in the building, Elevated Wellness and Preferred Title, will each receive relocation assistance as required in the Federal Uniform Relocation and Assistance Act (URA). EDA Members expressed their appreciation and gratitude towards Cindy Heaton, the seller of the property. TRACY HINZ MOVED TO APPROVE RESOLUTION 2021-13, AUTHORIZING ENTERING INTO A PURCHASE AGREEMENT WITH KC & THE BOYS, LLC FOR ACQUISITION OF PROPERTY LOCATED AT 113 WEST BROADWAY IN THE AMOUNT OF $528,00 FOR THE PURPOSE OF BLOCK 52 REVITALIZATION EFFORTS, CONTINGENT ON PLANNING COMMISSION REVIEW FOR CONFORMITY WITH THE COMPREHENSIVE PLAN. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. 6. Consideration of Shared Parking and Cross -Access Proposal in Block 34, Mike Mitchell, Nicollet Investments, 154 East Broadway Jim Thares provided an overview of the agenda item to the EDA and the public. Mike Mitchell sent a letter requesting the EDA consider selling some of the land held by the City and/or EDA to Nicollet Investments, LLC, the entity that recently purchased the former Barracks rental apartment building located at 154 East Broadway. The main concern for Nicollet Investments is that there is limited parking serving the needs of the renters in the building. The sketch provided by Mr. Mitchell was reviewed and commented on by the EDA members. Community Development Director Angela Schumann summarized the situation by stating that the property owner brought this to staff's attention. Referring to the sketch illustration, she noted the parking spaces that are proposed to be added specifically for tenants would be on the City-EDA owned parcel to the East. Staff do not believe the proposal would be in the long-term best interest of the City-EDA and therefore recommend not approving the reconfiguration of parking on the site. As to the potential for adding diagonal parking spaces directly along the west side of the building Mr. Mitchell owns, staff further noted that if this is the direction and becomes the best solution, the Nicollet owners would likely still need to comply with city standards for parking in the respected district of the City. Also, if cross -access was supported by the EDA, a Conditional Use Permit would be necessary to proceed. Councilmember Jim Davidson asked why there is a sudden need for parking on this site. Angela Schumann said that the city has never asked the property owner to add parking to the site, but it is assumed that there would be more of an appeal to potential residents if parking was included. Jim Davidson said that he is not in favor of doing anything that will potentially harm future redevelopment on the block. Tracy Hinz noted that she was not in favor of selling any piece of the parking lot to the property owner. Steve Johnson noted that if this were to be approved, it would add value to his building, but would affect the EDA and the City's future potential for the block as a whole. Angela Schumann mentioned that the only way to access the parking on Mr. Mitchell's site is through City -owned property. Ms. Schumann also entertained the idea of angled parking on Cedar Street for the tenants of Mr. Mitchell's building. While difficult to accomplish, Mr. Mitchell was opened to the idea. Lloyd Hilgart noted that Cedar Street has the opportunity for angled parking all the way to 3rd street by the current DMV building. If angled parking were to happen for Mr. Mitchell's property, there is potential for it to extend down to 3rd Street. Angela Schumann said that if diagonal parking were to happen on Cedar Street, it would still be public parking due to it being in the public right of way. The City cannot give Mr. Mitchell any exclusive parking on the angled parking spots. It would add more spaces adjacent to his building, but it does not give his tenants the exclusivity Mr. Mitchell is requesting. Lloyd Hilgart said that he does not want to sell any land on this block because of how important it will be for redevelopment. Hilgart asked if the stalls adjacent to his building currently are on City property. Angela Schumann said that the many of the stalls proposed on the illustration are on Mr. Mitchell's property, but the City and the EDA would be asked to approve a cross - access proposal for Mr. Mitchell's tenants because they would need to use City owned property to access the parking spaces. Jim Davidson asked if this were to be considered by the City, and the City said the agreement is good until redevelopment is ready to take place, is that something that can happen. 011ie Koropchak-White said that she appreciated the upkeep of the building on site, she also asked about how many parking spaces there would be if angled parking were to happen on cedar street. Angela Schumann said that her best guess would be four parking spaces. Steve Johnson wonders if the agreement were to take place, is there potential for constriction of redevelopment on the block; he would caution that this could make it difficult to eventually proceed with a meaningful redevelopment proposal. Jim Davidson asked if this was just a discussion on the subject. Angela Schumann clarified that there is no action necessary, decision would be at a City Council meeting. The EDA is being provided the opportunity to offer feedback to Mr. Mitchell. Jim Thares noted that Mr. Mitchell's business partner was present at the meeting. Steve Johnson provided Ethan Johnson the opportunity to speak on the item at hand. Ethan Johnson said that the goal is to find a permanent parking solution for their tenants on site. Lloyd Hilgart said that they cannot predict what will happen in the future regarding the block. Hilgart also noted that it would be beneficial to look at some potential layouts of the block for redevelopment. There may be potential to work with the owners of the building in the future. He understands the appeal parking has to the tenants in the building. Angela Schumann clarified that the building sits on top of the right of way. Jim Davidson agreed that he would entertain the idea Mr. Hilgart brought up though he would rather see the right of way access be on Cedar and not Broadway. Steve Johnson mentioned that the county would agree with Mr. Davidson and would not want to see an access on Broadway Street. Angela Schumann clarified staff will continue working on alternatives to bring back for discussion to the EDA. Steve Johnson asked if EDA members and staff were comfortable with that and to move forward. EDA members and staff confirmed. Steve Johnson asked Mr. Johnson if he had anything else to say. Ethan Johnson noted that he and Mr. Mitchell are committed to bringing high quality tenants to this part of the downtown area and that guaranteed parking will only help the process. Steve Johnson assured Ethan Johnson that if anything were to happen on the block, property owners will be notified ahead of time. 7. Economic Development Manager's Report Jim Thares provided an overview of the Economic Development Manager's Report to the EDA and the public. Steve Johnson made the comment referring to the Multi -Family Development Projects - Proposal Summary that potential residential projects could change the complexion of Monticello, having almost 1,000 new units added to the City. Jim Thares said that if all the proposals move forward that it may end up bringing more retail businesses to the City as well. Lloyd Hilgart asked when Jim would know if Duffy received their federal tax credit. Jim Thares said that staff is planning to reach out to them to touch base. Steve Johnson asked if the City will be ready to proceed if and when that development gets approved for funding by Minnesota Housing Finance Agency (MHFA). Jim Thares confirmed and said that there will be a lot of review and approval steps yet to complete by the EDA, Planning Commission and the City Council. 8. Adjourn TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 6:55 P.M. Recorder: Hayden Stensgard Approved: Attest: Jim Thares, Economic Development Director MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November loth, 2021— 5:00 p.m. Academy Room, Monticello Community Center Members Present: President Steve Johnson, 011ie Koropchak-White and Councilmembers Lloyd Hilgart and Jim Davidson Members Absent: Treasurer Tracy Hinz, Vice President Jon Morphew, Hali Sittig Staff Present: Executive Director Jim Thares, Angela Schumann and Hayden Stensgard 1. Call to Order President Steve Johnson called the workshop meeting of the Monticello Economic Development Authority to order at 5:01 p.m. 2. Roll Call Steve Johnson called the roll of the EDA. 3. 2022 Budtet Review in Context of Goals/Objectives Jim Thares provided an overview of the update of the EDA General Fund budget in the context of large expenditure commitments and potential goals and objectives as outlined in the current EDA Workplan extending out over the next 24 months. Jim noted that the financial statements were provided by Sarah Rathlisberger, the Finance Director, City of Monticello. Staff and EDA members reviewed and discussed the future budget items and balances with a goal of getting familiar with limitations and tie ins to accomplish objectives stated in the current EDA Workplan and what the future Workplans may possibly look like. 4. Adiournment OLLIE KOROPCHAK-WHITE MOVED TO ADJOURN THE WORKSHOP MEETING OF THE MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY. JIM DAVIDSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 4-0. MEETING ADJOURNED AT 5:37. Recorder: Hayden Stensgard Approved: Attest: Jim Thares, Economic Development Director Accounts Payable CITY F Y Transactions b Account 1b User: Debbie.Davidson onti effo Printed: 11/03/2021 - 1:08PM Batch: 00202.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-155020 TRAVELERS Prepaid Work Comp Ins 10/10/21 - 10, 11/09/2021 124749 2,172.00 Vendor Subtotal for Dept:00000 2,172.00 213-46301-415100 TRAVELERS Work Comp Ins 10/10/21 - 10/10/22 11/09/2021 124749 724.00 Vendor Subtotal for Dept:46301 724.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Sept 2021 11/09/2021 124727 340.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] GMEF Loan - Car Wash -Sept 2021 11/09/2021 124727 154.00 Vendor Subtotal for Dept:46301 494.00 213-46301-431990 WSB & ASSOCIATES INC 2021 Economic Development Service; 11/09/2021 0 196.00 Vendor Subtotal for Dept:46301 196.00 213-46301-431993 WSB & ASSOCIATES INC 2021 Economic Development Service: 11/09/2021 0 850.00 213-46301-431993 WSB & ASSOCIATES INC Downtown Redevelopment Project - S 11/09/2021 0 230.00 Vendor Subtotal for Dept:46301 1,080.00 Subtotal for Fund: 213 4,666.00 AP -Transactions by Account (11/03/2021 - 1:08 PM) Page 1 Account Number Vendor Description GL Date Check No Report Total: Amount PO No 4,666.00 AP -Transactions by Account (11/03/2021 - 1:08 PM) Page 2 Accounts Payable Transactions by Account CITY F �User: Julie.Cheney effo Printed: 11/19/2021 - 2:02PM Batch: 00203.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-157010 OLD REPUBLIC TITLE Ernest Money Deposit - 113 W Broadi 11/23/2021 124816 5,000.00 Vendor Subtotal for Dept:00000 5,000.00 213-46301-443990 DEMVI LLC Parking Lot Maintenance - Nov 2021 11/23/2021 124793 198.02 Vendor Subtotal for Dept:46301 198.02 Subtotal for Fund: 213 5,198.02 Report Total: 5,198.02 AP -Transactions by Account (11/19/2021 - 2:02 PM) Page 1 Accounts Payable Transactions by Account CITY F �User: Debbie.Davidson effo Printed: 11/17/2021 - 11:22AM Batch: 00201.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 11/15/2021 0 19.25 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 11/15/2021 0 37.97 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 11/15/2021 0 37.97 Vendor Subtotal for Dept:46301 95.19 213-46301-443990 US BANK CORPORATE PMT SYS Cornerstone Cafe - Cater Manufacture 11/15/2021 0 1,425.31 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Sept Lunch (JT) 11/15/2021 0 15.00 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Oct Lunch (JT) 11/15/2021 0 15.00 213-46301-443990 US BANK CORPORATE PMT SYS Caribou - (10) gift cards Manufacturer 11/15/2021 0 50.00 Vendor Subtotal for Dept:46301 1,505.31 Subtotal for Fund: 213 1,600.50 Report Total: 1,600.50 AP -Transactions by Account (1l/17/2021 - 11:22 AM) Page 1 Accounts Payable CITY F Transactions by Account 1b User: Debbie.Davidson onti effo Printed: 12/01/2021 - 11:35AM Batch: 00215.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 11/30/2021 0 48.89 Vendor Subtotal for Dept:46301 48.89 Subtotal for Fund: 213 48.89 Report Total: 48.89 The preceding list of bills payable totaling $11,513.41 was reviewed and approved for payment. Date: 12/8/2021 Approved by Tracy Hinz- Treasurer AP -Transactions by Account (12/01/2021 - 11:35 AM) Page 1 Accounts Payable CITY F Y Transactions b Account 1b User: Debbie.Davidson onti effo Printed: 11/03/2021 - 1:08PM Batch: 00202.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-155020 TRAVELERS Prepaid Work Comp Ins 10/10/21 - 10, 11/09/2021 124749 2,172.00 Vendor Subtotal for Dept:00000 2,172.00 213-46301-415100 TRAVELERS Work Comp Ins 10/10/21 - 10/10/22 11/09/2021 124749 724.00 Vendor Subtotal for Dept:46301 724.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Sept 2021 11/09/2021 124727 340.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] GMEF Loan - Car Wash -Sept 2021 11/09/2021 124727 154.00 Vendor Subtotal for Dept:46301 494.00 213-46301-431990 WSB & ASSOCIATES INC 2021 Economic Development Service; 11/09/2021 0 196.00 Vendor Subtotal for Dept:46301 196.00 213-46301-431993 WSB & ASSOCIATES INC 2021 Economic Development Service: 11/09/2021 0 850.00 213-46301-431993 WSB & ASSOCIATES INC Downtown Redevelopment Project - S 11/09/2021 0 230.00 Vendor Subtotal for Dept:46301 1,080.00 Subtotal for Fund: 213 4,666.00 AP -Transactions by Account (11/03/2021 - 1:08 PM) Page 1 Account Number Vendor Description GL Date Check No Report Total: Amount PO No 4,666.00 AP -Transactions by Account (11/03/2021 - 1:08 PM) Page 2 TRAVELERS�J NORTH RISK PARTNERS LLC 622 ROOSEVELT RD STE 240 ST CLOUD MN 56301-6363 01692 -L2 Page 01 of 03 Account Bill Account No. 4481E1159 Date of This Bill 10/21/21 CITY OF MONTICELLO 505 WALNUT STREET, SUITE 1 MONTICELLO MN 55362 TOTAL BALANCE $152,306.00 MINIMUM DUE $152,306.00 PAYMENT MUST BE RECEIVED BY: NOVEMBER 10, 2021 ACCOUNT BILLING SUMMARY POLICY TYPE POLICY PERIOD MIN. DUE BALANCE CO 4J499168 UB Workers Comp TOTAL BALANCE TRANSACTIONS SINCE LAST STATEMENT 10/10/21-10/10/22 $152,306.00 _ $152,306.00 04 $152,306.00 $152,306.00 Total Transactions (See Transaction Detail Section) +152,306.00 TOTAL BALANCE $152,306.00 TRANSACTION DETAIL POLICY NUMBER 4J499168 UB Workers Comp 10/10/21 Renewal 10/10/21 MN Comp Fund TOTAL TRANSACTIONS CONTINUED ON NEXT PAGE 147,690.00 4,616.00 $152,306.00 Please detach the payment coupon and mail with your payment in the enclosed envelope to: TRAVELERS CL REMITTANCE CENTER, PO BOX 660317, DALLAS, TX 75266-0317. 648842H 2O21294 0107 06R OGF549 Payment Coupon Make checks payable to: TRAVELERS NORTH RISK PARTNERS LLC CITY OF MONTICELLO 4481E1159 F-1 Include Account Number on the check. Charge of Address? Place an "X" here. Print changes on reverse side PAYMENT MUST BE RECEIVED BY TRAVELERS CL REMITTANCE CENTER NOVEMBER 10, 2021 PO BOX 669317 DALLAS, TX 75266-0317 -1111,1111111110111111111111411-01 „l1'11„(„111111FIllII&I 9934343831053131353940393939399401523060001520060098 TOTAL BALANCE $152,306.00 MINIMUM DUE $152,306.00 AMOUNT ENCLOSED OV- PL-9837 Page 02 of 03 Customer Service Contacts Billing Questions MONDAY to FRIDAY 8:00 AM EST - 8:00 PM EST Your Account Number: 4481E1159 Automated Inquiry: 24 hrs a day, 7da.;w a week PolicyOueytionsNORTH RISK PARTNERS LLC Claim Ouestions BUSINESS INSURANCE CONSTRUCTION NATIONAL ACCOUNTS BOND & FINANCIAL PRODUCTS Code Insuring Company 04 FARMINGTON CASUALTY COMPANY 800-252-2268 800-252-2268 320-253-1122 800-238-6225 800-828-4132 800-832-7839 800-842-8496 CLCBBILI Policyholder CITY OF MONTICELLO Account No. 4481EII59 Page 03 of 03 Date of This Bill: 10/21/21 SPECIAL MESSAGES Hassle Free Payments - Call 877-307-4202 to make a quick and simple payment. For all other customer service inquiries (other than making a payment) please call 800-252-2268. The minimum due and total balance do not reflect any down payment that you may have made. If you did make a down payment, please deduct the amount of your down payment from the minimum due and total balance. Make payments on-line! With our on-line payment options you can make single payments or You can schedule Automatic Recurring Payments. It's fast and easy, enroll today! To learn more visit our website - https://selfservice.travelers.com/business/registration. If you are paying with a check from a Personal Checking Account, you either use information from your check to make a one-time electronic Your account or to process the payment as a check. If you are paying Business Checking account, we will process the Payment as a check, authorize us to funds transfer from with a check from a 648842H 2O21294 0107 06R OGF549 CLDBILL2 TRAVELERS J� ONE TOWER SQUARE HARTFORD CT 06183 CLASSIFICATION SCHEDULE: CLASSIFICATIONS CODE NO WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY TYPE v INFORMATION PAGE WC 00 00 Oi ( A) POLICY NUMBER: UB-4J499168-21-PB-G PREMIUM BASIS ESTIMATED RATES ESTIMATED TOTAL ANNUAL PER $100 OF ANNUAL REMUNERATION REMUNERATION PREMIUM SEE EXTENSION OF INFORMATION PAGE - SCHEDULE(S) SIC -CODE: 9199 NAICS: 921190 STANDARD TOTAL ESTIMATED ANNUAL STANDARD PREMIUM $ 154427 PREMIUM DISCOUNT 7412 0900-22 EXPENSE CONSTANT 160 TERRORISM 515 TOTAL ESTIMATED PREMIUM 147690 TAXES AND SURCHARGES 4616 DEPOSIT AMOUNT DUE 152306 Minimum Premium: $ 850 EMPLOYERS LIABILITY MINIMUM: $120 DATE OF ISSUE: 10-04-21 KA OFFICE: SP-ST PAUL 06R PRODUCER: NORTH RISK PARTNERS LLC GF549 COUNTERSIGNED -AGENT TRAVELERS ONE TOWER SQUARE HARTFORD CT 06183 INSURER: FARMINGTON CASUALTY COMPANY INSURED'S NAME:CITY OF MONTICELLO EXP. MOD. EFFECTIVE DATE: 10-10-21 WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY EXTENSION OF INFO PAGE -SCHEDULE WC 00 00 01 ( A) POLICY NUMBER: UB-4J499168-21-PB-G CLASSIFICATION CODE LOCATION 001 FEIN 416005385 ENTITY CD 001 00 STATE UNEMPLOYMENT IDENTIFIER 000007975675 CITY OF MONTICELLO 505 WALNUT ST SUITE 1 MONTICELLO , MN 55362 NAICS: 921190 STREET OR ROAD CONSTRUCTION: PAVING OR REPAVING & D DRIVERS AND THEIR HELPERS NOC-COMMERCIAL--VOLUNTARY COMP WATERWORKS OPERATION & DRIVERS FIRE FIGHTERS -VOLUNTEER-& D STORE: RETAIL NOC CONSTRUCTION OR ERECTION PERMANENT YARD CLERICAL OFFICE EMPLOYEES NOC SWIMMING POOL -PUBLIC - OPERATION BUILDINGS OPERATION -ALL OTHER EMPLOYEES ICE-SKATING RINK OPERATION & D YMCA, YWCA, YMHA, OR YWHA, INSTITUTION -ALL EMPLOYEES & CLERICAL PARK NOC-ALL EMPLOYEES & DRIVERS MUNICIPAL EMPLOYEES NOC 22640-MN RATE BUREAU ID: 000415847 PREMIUM BASIS ESTIMATED RATES ESTIMATED TOTAL ANNUAL PER $100 OF ANNUAL REMUNERATION REMUNERATION PREMIUM 5506 570918.00 7.88 44988 7380 18319.00 7.90 1447 7520 272223.00 3.80 10344 7708 20295.00 35.67 7239 8017 508789.00 2.16 10990 8227 69380.00 5.51 3823 8810 1570055.00 0.15 2355 9015 84880.00 4.46 3786 9015 73131.00 4.46 3262 9016 2440.00 4.23 103 9063 447868.00 1.41 6315 9102 545065.00 4.44 24201 9410 497311.00 3.33 16560 DATE OF ISSUE:10-04-21 KA SCHEDULE NO: 1 OF 2 TRAVELERS WORKERS COMPENSATION AND ONE TOWER SQUARE EMPLOYERS LIABILITY POLICY HARTFORD CT 06183 EXTENSION OF INFO PAGE -SCHEDULE WC 00 00 01 ( A) POLICY NUMBER: UB-4J499168-21-PB-G MN MANUAL PREMIUM $ 135413 1.10% EMPL. LIAR. INCREASED LIMITS(9812) $ 1490 TOTAL PREMIUM SUBJECT TO EXPERIENCE MOD. 136903 EXPERIENCE MODIFICATION:1.20 MODIFIED PREMIUM 164284 -6.00% SCHEDULE CREDIT(9887) -9857 TOTAL ESTIMATED ANNUAL STANDARD PREMIUM 254427 -4.80o PREMIUM DISCOUNT(0064) -7412 EXPENSE CONSTANT(0900) 160 TERRORISM(9740) 515 TOTAL ESTIMATED PREMIUM 147690 2.81% SPECIAL FUND SURCHARGE 4616 TOTAL PREMIUM 152306 DEPOSIT AMOUNT DUE 152306 DATE OF ISSUE' 10-04-21 KA SCHEDULE NO: 2 OF 2 TRAVELERS WORKERS COMPENSATION AND ONE TOWER SQUARE EMPLOYERS LIABILITY POLICY HARTFORD CT 06183 ENDORSEMENT WC 00 00 Oi (A) POLICY NUMBER: UB-4J499168-21-PB-G LISTING OF ENDORSEMENTS EXTENSION OF INFO PAGE We agree that the following listed endorsements form a part of this policy on its effective date. WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 00 01 A - 001 WC 00 03 11 A - 001 WC 00 04 06 A - 001 WC 00 04 14 A - 001 WC 00 04 22 C - 001 WC 00 04 24 00 - 001 WC 00 04 25 00 - 001 WC 00 04 19 00 - 001 WC 22 00 00 A - 001 WC 22 03 01 00 - 001 WC 22 04 01 00 - 001 WC 22 06 01 D - 001 INFORMATION PAGE INFORMATION PAGE 2 EXTENSION OF INFORMATION PAGE - SCHEDULE ENDORSEMENT LISTING VOLUNTARY COMP AND EMPLOYERS LIAB COV PREMIUM DISCOUNT ENDORSEMENT NOTIFICATION OF CHG IN OWNR ENDT TERRORISM RISK INS PROG REAUTH ACT ENDT AUDIT NONCOMPLIANCE CHARGE ENDORSEMENT EXPER RATING MOD FACTOR REVISION ENDT PREMIUM DUE DATE ENDORSEMENT MN AMENDATORY ENDT MN COMPLIANCE WITH APPLICABLE TRADE LAW MINNESOTA CONTRACTING PREM ADJ ENDT MINNESOTA CANC AND NON RENEWAL ENDT DATE OF ISSUE: 10-04-21 ST ASSIGN: Page 1 of 1 2022 Budget Adapted - EXPENDITURES Workers Compensation Distribution 155020 ACCOUNT NUMBER COUNCIL Payable Expense Prepaid 101-41110-415100 Workers Compensation Insurance 1,253,00 313.00 940.00 101-41310-415100 Workers Compensation Insurance 348,00 87.00 261.00 101-41410-415100 Workers Compensation Insurance 125.00 31.00 94.00 101-41520-415100 Workers Compensation Insurance 366.00 92.00 274,00 101-41800-415100 Workers Compensation Insurance 110.00 28.00 82.00 101-41910-415100 Workers Compensation Insurance 160,00 40.00 120,00 101-41920-415100 Workers Compensation Insurance - - - 101-41940-415100 Workers Compensation Insurance - - - 101-42200-415100 Workers Compensation Insurance 9,274.00 2,319,00 6,955,00 101-42400-415100 Workers Compensation Insurance 10,758.00 2.690.00 8,068.00 101-43110-415100 Workers Compensation insurance 2,866,00 717.00 2,149,00 101-43111-415100 Workers Compensation Insurance - - - 101-43115-415100 Workers Compensation Insurance 9,323,00 2,331.00 6,992.00 101-43120-415100 Workers Compensation Insurance 18.282.00 4,571.00 13,711.00 101-43125-415100 Workers Compensation Insurance 10,384,00 2,596.00 7,788.00 101-43127-415100 Workers Compensation Insurance 7,306.00 1,827.00 5,479.00 101-43130-415100 Workers Compensation Insurance - - - 101-43140-415100 Workers Compensation Insurance - - - 101-45201-4151❑0 Workers Compensation Insurance 19,918,00 4,980.00 14,938.00 101-45501-415100 Workers Compensation Insurance - - - 101-46102A15100 Workers Compensation Insurance 2,410.00 603.00 1,807.00 101-46500-415100 Workers Compensation Insurance - - - 101-49240-415100 Workers Compensation insurance - - - Fund 101 Total 92,883.00 23,225.00 69,668.00 213-46301-415100 Workers Compensation insurance 2,896.00 724.00 2,172.00 217-41990-415100 Workers Compensation Insurance 606.00 152.00 454.00 226-45122-415100 Workers Compensation Insurance 8,991.00 2,248.00 6,743.00 226-45124-415100 Workers Compensation Insurance 6,173.00 1,543.00 4,630.00 226-45126-415100 Workers Compensation Insurance 9.981,00 2,495.00 7,486.00 Fund 226 Total 25,145.00 6,286.00 18,859.00 601-49440-415100 Workers Compensation Insurance 7,414.00 1.854.00 5,560.00 601-49441-415100 Workers Compensation Insurance 72.00 18.00 54,00 Fund 601 Total 7,486.00 1,872.00 5,614.00 602-49490-415100 Workers Compensation Insurance 7,948,00 1,987.00 5,961.00 602-49491-415100 Workers Compensation Insurance 71.00 18.00 53.00 Funs! 602 Total 8,019.00 2,005.00 6,014.00 609-49754-415100 Workers Compensation Insurance 9,141.00 2,285.00 6,856.00 652-49880-415100 Workers Compensation Insurance 2,180.00 545.00 1,635.00 652-49881-415100 Workers Compensation Insurance 1,646.00 412.00 1,234.00 652-49883-415100 Workers Compensation Insurance 2,304.00 576.00 1,728.00 Fund 652 Total 6,130.00 1,533.00 4,597.00 152,306.00 38,077.00 114,229.00 Page: 1 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 City of Monticello September 30, 2021 MN190-00101 General EDA Matters Through September 30, 2021 For All Legal Services As Follows: Hours Amount 9/1/2021 MNI Office conference with L Kantner regarding open matters 0,30 63.00 for Monticello 9/1/2021 MNI Phone conversation with J Thares regarding possible 0.40 8400 "finder's fee" scenario in connection with Otter Creek prospect 9/16/2021 MNI VoicerrmaR from J Thares regarding possible new economic 0.20 42,00 development TIF district; voicemail to J Thares regarding same 9/16/2021 MNI Phone conversation with J Thares regarding new TIF 0.30 63.00 prospect, status of Karlsburger and car wash deals 9/20/2021 LJK Preparation for Monticello financing call, participate in 1.10 176.00 financing call, draft reimbursement resolution for Chelsea Commons Development 9/21/2021 LJK Send Chelsea Commons reimbursement resolution to the 0.10 16.00 city 9/21/2021 MNI Review reimbursement resolution for Chelsea Commons 0.10 21 00 bonds. Total Services: $ 465.00 Total Services and Disbursements: $ 465.00 From: Angela Schumann To: Julie Chenev Subject: RE: Kennedy & Graven (2) Date: Monday, November 1, 2021 12:22:59 PM Attachments: image001.Dng OK to pay. 41910- 430400 Angela Schumann Community Development Director City of Monticello www.ci.monticello.mn.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices act and may be disclosed to third parties. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, October 27, 20213:41 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Subject: FW: Kennedy & Graven (2) Angela Please see the attached invoice from Kennedy & Graven. Okay to pay $125.00? Thanks Julie From: Jim Thares<Jim.TharesCcDci.monticello.mn.us> Sent: Wednesday, October 27, 2021 11:59 AM To: Julie Cheney <Julie.Cheney(@ci.monticello.mn.us> Subject: RE: Kennedy & Graven (2) Hi Julie, the invoice in the amount of $154.00 is okay to pay. Please see coding below. The invoice in the amount of $465.00 is broken out with just the EDA responsible for $340.00 (see attached). Please see coding below. From: Julie Cheney <Julie.Cheney(@ci.monticello.mn.us> Sent: Monday, October 25, 20213:33 PM To: Jim Thares <Jim.Thares(@ci.monticello.mn.us> Subject: Kennedy & Graven (2) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101 —General EDA - $465.00 213-46301-430400 Inv# M N 325-00046 — G M E F Loan -$154.00 213-46301-430400 Okay to pay? Please provide coding. Thank you. Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticello.mn.us CITY �01F 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. Page: 1 Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 Monticello EDA September 30, 2021 MN325-00046 GMEF loan - car wash Through September 30, 2021 For Afi Legal Services As Follows: Hours Amount 9/22/2021 LJK Revise loan documents with updated closing date; Send 0.30 54.00 loan documents to Monticello 9/22/2021 MNI Monticello GMEF intercreditor agreement review. 0.40 100.00 Total Services: $ 154.00 Total Services and Disbursements: $ 154.00 From: Jim Thares To: Julie Cheney Subject: RE: Kennedy & Graven (2) Date: Wednesday, October 27, 2021 11:59:02 AM Attachments: imaae001.a_na K&G invoice Breakout 10-26-21.odf Hi Julie, the invoice in the amount of $154.00 is okay to pay. Please see coding below. The invoice in the amount of $465.00 is broken out with just the EDA responsible for $340.00 (see attached). Please see coding below. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Monday, October 25, 2021 3:33 PM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: Kennedy & Graven (2) Jim Attached are the following invoices from Kennedy & Graven: Inv# MN190-00101 —General EDA - $465.00 213-46301-430400 Inv# M N 325-00046 — G M E F Loan -$154.00 213-46301-430400 Okay to pay? Please provide coding. Thank you. Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Chenev@ci.n �TZ - • MIUM 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 S SUITE 300 MINNEAPOLIS, MN 55416 � L 21 r^F`" XWO City of Monticello October 26, 2021 Attn: Sarah Rathlisberger, CPFO Finance Manager Project/Invoice: R-017641-000 - 9 505 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 # 213,46301.431993 Professional Services from Setotember 1 2021 to September 30 2021 Phase 001 2021 Economic Development Services Monthly Retainer Monthly Retainer 850 / Lum Sum Fee $10,200 for this task. Fee Total Fee 10,200.00 Percent Complete Concept Drawings 75.00 Total Earned Previous Fee Billing Current Fee Billing Total Fee Gedrose, Jordan 9/2/2021 industrial building concept graphic Totals Total Labor Outstanding Invoices l� `30 . 7,650.00 ZJ� .�" 6.800.00 850.00 Jf 850.00 Total this Task Hours Rate Amount 2.00 98.00 196.00 2.Q0 196.00 Total this Task Total this Phase $850.00 ��3• 196.00 $196.00 $1,046.00 Total this Invoice $1,046.00 Invoice Number Date Balance 8 9/30/2021 1,002.00 Total 1,002.00 Total Now Due $2,048.00 Billings to Date Current Prior Total Fee 850.00 6,800.00 7,650.00 Labor 196.00 6,051.50 6,247.50 Project R-017641-000 MONT - 2021 Economic Development Service Invoice 9 Add -on 0.00 -93.00 -93.00 Totals 1,046.00 12,758.50 13,804.50 Page 2 From: Jim Thares To: Julie Cheney Subject: RE: WSB (2) Date: Thursday, October 28, 2021 12:07:49 PM Attachments: imacae001.inq Hi Julie, these invoices are okay to pay with coding as noted. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, October 28, 2021 10:38 AM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WSB (2) Jim Attached are the following invoices from WSB for September services: Inv# R014511-000 17 — Downtown Redevelop Project - $230.00 Inv# R017641-000 9 — 2021 Economic Development Services - $1,046.00 Okay to pay as coded? Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY *�F0 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. s sull'r 3f)o MINNEAPOLIS, MN 55416 wsb City of Monticello October 26, 2021 Attn: Sarah Rathlisberger, CPFO Finance Manager Project/Invoice: R-014511-000 - 17 505 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 # 213.46301.431993 Professional Services from September 1 2021 to September 30 2021 Phase 001 Downtown Redev. Project Acquisition Assistance Services Hours Rolf, Penny 9/1/2021 .50 Cal! w/Cindy Heaton and email to Jim at EDA Rolf, Penny 9/9/2021 .25 call to Preferred Tax to set up a time to meet Rolf, Penny 9/22/2021 .50 call w/ Cindy Heaton - update email to Jim at EDA Totals 1.25 Total Labor Billing Limits Total Billings Limit Remaining Outstanding Invoices Invoice Number 16 Total Date 9/30/2021 Current 230.00 Balance 112.00 112.00 Rate Amount 184.00 92.00 184.00 46.00 184.00 92.00 230.00 230.00 Total this Task $230.00 Total this Phase $230.00 Prior To -Date 6,065.45 6,295.45 10,208.00 3,912.55 Total this Invoice $230.00 Total Now Due $342.00 From: Jim Thares To: Julie Cheney Subject: RE: WSB (2) Date: Thursday, October 28, 2021 12:07:49 PM Attachments: imacae001.inq Hi Julie, these invoices are okay to pay with coding as noted. From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Thursday, October 28, 2021 10:38 AM To: Jim Thares <Jim.Thares@ci.monticello.mn.us> Subject: WSB (2) Jim Attached are the following invoices from WSB for September services: Inv# R014511-000 17 — Downtown Redevelop Project - $230.00 Inv# R017641-000 9 — 2021 Economic Development Services - $1,046.00 Okay to pay as coded? Thanks, Julie Cheney Finance Assistant City of Monticello 763-271-3205 Julie.Cheney@ci.monticello.mn.us AP@ci.monticel lo.mn.us CITY *�F0 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. Accounts Payable Transactions by Account CITY F �User: Julie.Cheney effo Printed: 11/19/2021 - 2:02PM Batch: 00203.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-00000-157010 OLD REPUBLIC TITLE Ernest Money Deposit - 113 W Broadi 11/23/2021 124816 5,000.00 Vendor Subtotal for Dept:00000 5,000.00 213-46301-443990 DEMVI LLC Parking Lot Maintenance - Nov 2021 11/23/2021 124793 198.02 Vendor Subtotal for Dept:46301 198.02 Subtotal for Fund: 213 5,198.02 Report Total: 5,198.02 AP -Transactions by Account (11/19/2021 - 2:02 PM) Page 1 CITE' OF MONTICELLO VOUCHER Please complete, sign, and submit to Accts Payable by due date for check run. ® Disb. Ck. Batch Pay by: VENDOR: N a rn e ©m Address i (p���, J �Q e-,nu , tl-7 k Address 2 City/ST/Zip p Statement 4a ! Invoice No: DISTRIBUTION OF EXPENS1: cr,• 0.0 OTAL: $ �l .00o APPROVED BY DATE: 11 9 I /Zo Z ) VDUcher.x1s MEMORANDUM DATE: November 17, 2021 TO: Julie Cheney, Finance Assistant FROM: Jim Thares, Economic Development Manager SUBJECT: Earnest Money Payment = $5,000 —for EDA Purchase of real estate property from KC & the Boys, LLC The EDA approved the purchase agreement for the acquisition of a land parcel located at 113 West Broadway at its regular meeting on 11-10-21. The $5,000 earnest money deposit should be made out to Old Republic Title Insurance Company which the seller has indicated it desires to administer the closing process. The Coding for the entire amount is to be determined by Sarah. if you have any questions, let me know. Thank you. PURCHASE AGREEMENT 113 West Broadway, Monticello, Minnesota This Purchase Agreement ("Agreement") is made as of this 10th day of November, 2021, by and between KC & the Boys, LLC, a Minnesota limited liability company ("Seller") and the City of Monticello Economic Development Authority, a public body politic and corporate under the laws of the State of Minnesota (`Buyer"). 1. PROPERTY. Seller is the owner of property located at 113 West Broadway Street in the City of Monticello, Minnesota, which is legally described on the attached Exhibit A ("Property"). 2. OFFER/ACCEPTANCE. In consideration of and subject to the terms and provisions of this Agreement, Buyer offers and agrees to purchase, and Seller agrees to sell and hereby grants to Buyer the exclusive right to purchase -the Property and all improvements thereon, together with all appurtenances, All fixtures located on the Property on the date of this Agreement are included in the purchase of the Property. Personal property is not included in the sale of the Property. 3. PURCHASE PRICE FOR PROPERTY AND TERMS. a. PURCHASE PRICE: The total purchase price for the Property, representing the fair market value of the Property plus any compensation attributable to Seller's relocation benefits pursuant to paragraph 18 hereof, is: Five Hundred Twenty_ Eight Thousand and 00/1 OOths Dollars ($528,000.00) ("Purchase Price"). b. TERMS: 1. EARNEST MONEY: Earnest money in the amount of five Thousand and no/100 Dollars ($5,000) (the "Earnest Money") shall be deposited by Buyer into escrow with Old Republic Title Insurance Company ("Title") within five business days after this Agreement has been executed by both parties. The Earnest Money is refundable to the extent provided herein. 2. BALANCE DUE SELLER: Buyer agrees to pay the Purchase Price to the Seller by check or wire transfer on the Closing Date (defined hereafter) according to the terms of this Agreement. 3. DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller agrees to execute and deliver to Buyer a Warranty Deed conveying marketable fee simple title to the Property, free and clear of any mortgages, liens or encumbrances other than matters created by or acceptable to Buyer, subject only to the following exceptions: i. Building and zoning laws, ordinances, state and federal regulations; MN3251451704028.v5 EDA: I l / 10/21 5. Consideration of Adovting Resolution #2021-13 Authorizing Entering into a Purchase Agreement with KC & the Boys, LLC for Acquisition of Real Property Located at 113 West Broadwav in the Amount of 528 000 (JT) A. REFERENCE AND BACKGROUND: The EDA is being asked to consider adopting Resolution #2021-13 authorizing entering into a purchase agreement with KC & the Boys, LLC for real property located at 113 West Broadway. The property is located in Block 52 which is the focus of the FDA's downtown redevelopment efforts. This parcel is located in the middle of the Block and is crucial to a successful redevelopment effort in Block 52. With the purchase of the 8,552 square foot property, the EDA will have contiguous parcels fronting on Broadway allowing a redevelopment footprint with viable potential commercial space. Like previous purchases of property in Block 52, this parcel has an older, economically obsolete building with an inefficient floor plate. The 4,896 square foot building was constructed in 1940. The 2021 County assessed valuation of the parcel is $259,000 or $30.29 per square foot. Per the Downtown Small Area Study, adopted by the EDA and City Council in Iate 2017, Block 52 was recommended as a realistic consideration of the FDA's redevelopment efforts. The Study cited the proximity to West Bridge Park, an attractive river park amenity in the community, as a key factor in pursuing mixed -use, multi -family residential and commercial redevelopment in quarter or half block scale projects. The fact that the City and EDA already owned land parcels in Block 52 was also noted as an advantage in potential land assembly steps. The City parcel in the northwest corner of Block 52 has been used as a public parking lot for many years. Since early 2017, the EDA has been able to acquire several other parcels in the Block. As of today, the City and EDA, combined, own a total of 81,984.77 square feet or approximately 76 percent of the Block 52 land area. With the purchase of 113 West Broadway, the City-EDA owned land area will increase to 90,536.69 square feet or 83 percent of the Block. Key terms of the proposed purchase agreement are noted below: I. Purchase price = $528,000 (price = $61.74/sq. ft. [$528,000/8,552 square feet]) 2. Earnest money deposit = $5,000 3. EDA purchase of property = "as is, where is"; (building will be demolished as part of future redevelopment efforts) 4. Seller waives all rights to relocation benefits under the Federal Uniform Relocation Act (URA) 5. Seller is also the principal owner of Preferred Title which will enter into a lease and management agreement at the rate of $0/month through May 15, 2022, or longer if mutually agreeable to Seller and EDA 6. Tenant, Elevated Wellness, is also located in a 1,974 square foot suite; EDA to be assigned the existing month -to -month lease Contract; per the Contract all rental receipts ($1,200/month) go to the EDA, effective upon transaction closing date EDA: 11 / 10/21 7. EDA to offer Relocation Benefits to Preferred Title and Elevated Wellness, as required under the Federal URA 8. Seller pays typical "Seller" title commitment and transaction closing costs (Section 11, page 6) 9. Closing to occur on or before December 31, 2021 In the Block 52 land assembly efforts, the EDA has engaged WSB as its relocation consultant. WSB has been actively engaged in the process with this and previous land purchases regarding conformance to URA requirements. As part of the typical land purchase steps by the EDA, the Planning Commission is required, by State Statute, to hold a public hearing and consider whether the EDA's acquisition of the property conforms to the comprehensive plan. If the EDA approves acquiring the KC & the Boys, LLC property, it will be contingent on the Planning Commission's findings of such conformity. The Planning Commission will hold the public hearing and consider findings of conformity at its December 7, 2021, meeting. Also to be noted is that the Property Lease and Management Agreement which is attached as Exhibit C may not be in the final form since the seller's legal counsel is still reviewing it and may make minor changes. In the acquisition consideration process, the EDA should establish a public purpose when purchasing property. Revitalization and economic development objectives are identified as the public purpose goals in the attached approval resolution (Section 1.04). While the EDA has entered into a Preliminary Development Agreement (PDA) with Deephaven Development, LLC, to bring forward a mixed -use development format in Block 52, the exact timeline of any redevelopment activities is not yet deternnined. Al, STAFF IMPACT: In house and consultant staff time involved in considering approving the purchase of the property is estimated to be approximately 46 hours +/-. The tasks include negotiation discussions, process steps identification by staff, reviewing potential funding sources, drafting -reviewing -revising the purchase agreement and preparation of the EDA report and the actual EDA meeting time. No other staff are needed to complete the property purchase work tasks. A2, BUDGET IMPACT: The budget impact from considering approving the purchase of the KC & the Boys, LLC property is to the EDA General Fund and/or the restricted "Available TIF Dollars" program Funds. The total outlays for the acquisition of the real property consist of the purchase price of $528,000 plus the closing fees estimated to be approximately S3,000 +/-. Legal fees will be billed at the conclusion of the purchase and are estimated to be in a range of $2,200 to $2,500 +/-. Additionally, associated relocation costs to be incurred in 2022 are estimated at least $125,000. The EDA has previously reviewed available funding sources for the property purchases in budget workshop discussions. 2 EDA: 11 /10/21 B. ALTERNATIVE ACTIONS: Motion to approve Resolution 42021-13 authorizing entering into a Purchase Agreement for the acquisition of real property located at 113 West Broadway in the amount of $528,000 for the purpose of Block 52 revitalization efforts, contingent on Planning Commission review for conformity with the Comprehensive Plan. 2. Motion to table consideration of Adopting Resolution #2021-13 for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. Purchasing the KC & the Boys, LLC parcel is a crucial step to allow the EDA to pursue a meaningful redevelopment in Block 52. The EDA has been taking modest steps for approximately 4 years to implement the Small Area Study vision for the Downtown area. The Downtown Small Area Study Implementation Steps Summary identified acquisition of the Block 52 properties as important/critical goals (Exhibit E). Block 52 is a prime redevelopment area due to its proximity to West Bridge Park and because the City and EDA, combined, currently own approximately 76 percent of the Block. By consolidating additional land area under the EDA umbrella, it will allow a more scalable and meaningful redevelopment proposal to be concepted and presented for future consideration. The EDA's offer price of $528,000 is equal to $61.74 per square foot. The proposed price is a 51 percent premium to the taxable value. The price reflects the strategic location of the parcel in Block 52 as it relates to the EDA's overall redevelopment objectives. Negotiated prices for previous EDA property acquisitions (including relocation costs) in Block 52 have ranged from $33.00 to $70.00 per square foot over the past few years. D. SUPPORTING DATA: a. Resolution #2021-13 b. Purchase Agreement c. Property Management and Lease Agreement d. Block 52 Aerial Photo e. Small Area Study Perspective Illustration f Downtown Small Area Study Implementation Summary EDA RESOLUTION NO. 2021-13 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 113 WEST BROADWAY STREET BY THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED BY the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01, The Authority and KC & the Boys, LLC (the "Seller"), desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain property located at 113 West Broadway Street (the "Property") in the City of Monticello (the "City") from the Seller for economic development purposes related to the revitalization of the downtown area. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Property from the Seller for a total purchase price of $528,000 plus related closing costs. 1.03. Pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Planning Commission of the City will meet on December 7, 2021, to review the proposed acquisition and its conformity to the City's Comprehensive Plan (the "Comprehensive Plan"). 1.04. Subject to the Planning Commission's formal finding, the Authority finds that acquisition of the Property conforms to the Comprehensive Plan and further finds that such acquisition conforms to the City's downtown small area plan, as approved by the City and Authority, and will facilitate the economic development and revitalization of this portion of the downtown area of the City by allowing the Authority to convey the Property to a private developer for the construction of a mixed -use rental housing and retail facility. Section 2. Purchase Agreement Approved. 2.01. The Authority hereby approves the Purchase Agreement in substantially the form presented to the Authority, subject to the required finding by the Planning Commission that the acquisition conforms to the Comprehensive Plan, and further 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 Purchase Agreement by those officials shall be conclusive evidence of their approval. 2.02. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached MN325%451756523.v3 to the Purchase Agreement, and any other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement. Approved this 10�' day of November, 2021 by the Board of Commissioners of the City of Monticello Economic Development Authority. President ATTEST: N N3251451756523,v3 EXHIBIT A Legal Description of Pro Lot 6 and the East 18 feet and 10 inches of Lot 5 in Block 52 in the Town or Townsite of Monticello, according to the plat by John 0. Haven of record. (That part of Lot 5 being more particularly described as follows: Begin at the Southerly point of said Lot S; thence Northwesterly along the Southwesterly side of said Lot 5, 18 feet, 10 inches; thence Northeasterly and parallel to the Southeasterly side of said Lot 5 to the Northeasterly line of said Lot 5; thence Southeasterly 18 feet, I0 inches to the most Easterly point of said Lot 5; thence Southwesterly to the point of beginning. Excepting therefrom: Those parts of Lots 5 and 6, Block 52, Monticello, according to the recorded plat thereof, Wright County, Minnesota described as follows: Commencing at the most easterly corner of said Lot 6; thence on an assumed bearing of North 64 degrees 58 minutes 26 seconds West along the northeasterly line of said Lot 6 a distance of 3.06 feet to an outside building line being the point of beginning of the land to be described; thence South 24 degrees 18 minutes 51 seconds West along said outside building line, a distance of 0.27 feet to a building corner; thence North 65 degrees 40 minutes 10 seconds West along said outside building line, a distance of 44.00 feet to a building corner; thence North 24 degrees 18 minutes 51 seconds East along said outside building line, a distance of 0.81 feet to the northeasterly line of said Lot 5; thence South 64 degrees 58 minutes 26 seconds East along said northeasterly lime of said Lots 5 and 6, a distance of 44.00 feet to the point of beginning. 1 l3 West Broadway, Monticello, MN 55362 MN3251451756523.v3 Julie Cheney From: Bullseye Property Management & Realty <mail@managebuilding.com> Sent: Sunday, November 21, 2021 3:05 AM To: AP Subject: Lease statement for Broadway Parking Easement - COMMERCIAL - 2 as of 11/21/2021 Bullseye Property Management & Realty Lease statement as of 2021-11-21 City of Monticello Economic Development Authority Account #: 00405914 35 Lake St Suite 500 Big Lake, MN 55309 Date Memo Amount Balance Prior balance $0.00 8/27/2021 Payment ($198.02) ($198.02) 9/1/2021 Common Area Maintenance $198.02 $0.00 9/30/2021 Payment ($198.02) ($198.02) 10/1/2021 Common Area Maintenance $198.02 $0.00 10/28/2021 Payment ($198.02) ($198.02) 11/1/2021 Common Area Maintenance $198.02 $0.00 12/1/2021 Common Area Maintenance $198.02 $198.02 13 . 301, Balance due: $198.02 Payment is due on the 28th of the month. If payment isn't received, a one-time fee equal to 8% of recurring charges will be charged on the 4th of each month. Manage your account online: http://bultseyeproperties.managebuilding.com Bullseye Property Management & Realty 763-295-6566 Buildium@bullseye411.com Stay connected with the Resident Center app 1 Accounts Payable Transactions by Account CITY F �User: Debbie.Davidson effo Printed: 11/17/2021 - 11:22AM Batch: 00201.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 11/15/2021 0 19.25 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 11/15/2021 0 37.97 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 11/15/2021 0 37.97 Vendor Subtotal for Dept:46301 95.19 213-46301-443990 US BANK CORPORATE PMT SYS Cornerstone Cafe - Cater Manufacture 11/15/2021 0 1,425.31 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Sept Lunch (JT) 11/15/2021 0 15.00 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Oct Lunch (JT) 11/15/2021 0 15.00 213-46301-443990 US BANK CORPORATE PMT SYS Caribou - (10) gift cards Manufacturer 11/15/2021 0 50.00 Vendor Subtotal for Dept:46301 1,505.31 Subtotal for Fund: 213 1,600.50 Report Total: 1,600.50 AP -Transactions by Account (1l/17/2021 - 11:22 AM) Page 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Thursday, October 7, 2021 8:03 AM AP Your bill from City of Monticello, MN is ready. 10-1-21 WEB INSERT.pdf 007256-004 MONTICELLO EDA (213-46301) 130 BROADWAY E 9/1/2021 to 9/30/2021 (30 days) 10/6/2021 11/1/2021 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: 11/1/2021 $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: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading Serial Current Charges noreply@merchanttransact.com Thursday, October 7, 2021 8:03 AM AP Your bill from City of Monticello, MN is ready. 10-1-21 WEB INSERT.pdf Previous Reading Date Reading Water: Water: CITY WATER - NON-TAXABLE Water: ACH CREDIT - AUTO PAY Water: EBILL CREDIT Water: WATER - STATE CONNECTION FEE Sewer: SEWER - COMMERCIAL Stormwater: STORMWATER / NON-RESIDENTIAL Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 11/1/2021 * This was the amount due at the time of billing. 007256-007 MONTICELLO EDA (213-46301) 103 PINE ST 9/1/2021 to 9/30/2021 (30 days) 10/6/2021 11/1/2021 Current Reading Date Reading 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. Cons $0.00 $7.81 ($1.25) ($0.50) $0.81 $10.10 $21.00 $37.97 $37.97 $37.97 $0.00 $37.97 $37.97 1 Debbie Davidson From: Sent: To: Subject: Attachments: City of Monticello, MN 505 Walnut St, Ste 1 Monticello, MN 55362 763.271.3228 8 AM to 4:30 PM Account Information Account: Name: Service Address: Service Period: Billing Date: Due Date: Meter Reading noreply@merchanttransact.com Thursday, October 7, 2021 8:03 AM AP Your bill from City of Monticello, MN is ready. 10-1-21 WEB INSERT.pdf Previous Reading Serial Date Reading 68621907 9/1/2021 43886 Current Charges Water: Water: CITY WATER - NON-TAXABLE Consumption Water: CITY WATER - NON-TAXABLE Water: ACH CREDIT - AUTO PAY Water: EBILL CREDIT Water: WATER - STATE CONNECTION FEE Sewer: SEWER - COMMERCIAL Consumption Sewer: SEWER - COMMERCIAL Stormwater: STORMWATER / NON-RESIDENTIAL Total Current Charges: Bill Summary Previous Balance: Payments Received: Adjustments: Current Charges: * Total Amount Due by: 11/1/2021 * This was the amount due at the time of billing. 007256-008 MONTICELLO EDA (213-46301) 112 RIVER ST W 9/1/2021 to 9/30/2021 (30 days) 10/6/2021 11/1/2021 Current Reading Date Reading Cons 10/1/2021 43888 2 $0.00 $0.00 $7.81 ($1.25) ($0.50) $0.81 $0.00 $10.10 $21.00 $37.97 $37.97 $37.97 $0.00 $37.97 $37.97 To view your amount due at the current time and make a payment click here. i Auto payment is setup for this customer account, do not pay. Vendor Date of Transaction 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 $ � ]`r:;� Circle purchaser name: T ryErgen icki Ledo Rac hard Sarah Rathlisberger Jennifer Schreiber Angela Schumann Jim Thares Beth Green Liz Lindrud Haley Foster Special Project # or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 101-41800 101-41910 101-41920 101-41940 213-46500 213-46301 702-00000 Circle expense code: 421990 431950 431990 4322.00 433100 443300 4437QO_ 443990D Other City Council Administration City Clerk:/Elections Finance Human Resources Planning and Zoning Data Processing City Hall Economic Development HRA Central iT General Operating Supplies Newsletter Services Miscellaneous Prof Services Postage Travel/Training Expense Dues Membership & SubscOp Licenses and Permits Misc. Other Expense l,gIx t3e�,bl .Ofi %k CAFE ssa'[rr SROV. +r prTt[C11p• rw sS3 Mill pi33W3Y3E6a 5 Tee. 1P: 1 w.,rn.nt rp: rsi nears CORNERSTfNECLAA Phone order Sale curer Appreciation Breakfast G'E W=MD343 Em: WXX VISA Entry Method. Keytd of 154 West Broadway Amint; ; 1,4 . i tering@cornerstonecafe Morrlicel oor lo; www cornerstonecate.com ___._____. _ _ an Price per Total jpt}l; les potatoes and mini baked goods) $ 999 5 649,35 10�1� 14,2i,�4 service (wilh creamers. Sugar. stirshck) 5 2.25 $ 146 25 4�atud: On�int Batc�+�; MIN $ . S 6.49 S 7788 PIC 1: � $ 030 S 19.50 S 0.79 $ 51351 $ - SIri3 $ S - LA UETiAMU&MO WMIFT Or FINDS THE A14W OF THE TOTAL INDICATED" IN rOTED r p p WIREW'iIlBATIMS M W ISSIXR r[s�nrn [aAr Lescription: Full Service Notes. - Payment arrangements: Food Total $ 1,106.18 ServicelGratuifyloeiivery $ 22124 Subtotal $ 1,327.42 7,375 % Sales Tax $ 97.90 Total = $ 1,425.31 V Vendor m—+ U&M bell — Date of Transaction 61111 � CITY OF MONTICEuo Ghost Card Transaction Please attach the invoice/ receipt and any other available documentation to this form. To be completed by purchaser: Amount $ � �) . ()o Circle purchaser name: Debbie Davidson CJu�ie Chene 4Signre Expense Code a Q f �39 C! 0 Monticello Chamber of Commerce and Industry 205 Pine Street PO Box 192 Monticello, MN 55362 (763) 295-27094 fax: (763) 295-2705 r_fo@ mor4icellocci.com Monticello City of Accounts Payable 505 Walnut Street Suite #1 Monticello, MN 55362 Thank you for coming to our event. Description 2021 Chamber Lunch-9/2112021-Wright Cty Law Enforcement: Chamber Lunch, Member (Jim Thares) Invoice Invoice Date: 9/30/2021 Invoice Number: 7404 Account ID: Terms Due Date Net 15 10/15/2021 Quantity Rate Amount 1 $15.00 $15.00 Subtotal: $15.00 Tax: $0.00 Total: $15.00 Payment/Credit Applied: $0.00 Balance: $15.00 Julie Cheney From: Jim Thares Sent: Monday, October 4, 2021 1:06 PM To: Julie Cheney Subject: RE: Invoice from Monticello Chamber of Commerce and Industry Yes, this okay to pay. From: Julie Cheney Julie.Cheney@ci.monticekio.mn.us> Sent: Monday, October 4, 2021 11:37 AM To: Jinn Thares <Jim.Thares@ci.monticeilo.mn.us> Subject: FW; Invoice from Monticello Chamber of Commerce and industry Jim Please see the attached invoice from the Chamber of Commerce for the lunch you attended in Sept. Okay to pay $15.00? Thanks Julie From: Marcy Anderson <marc monticellocci.com> Sent: Thursday, September 30, 2021 10:43 AM To: AP SAP@ci.monticello.mn.us> Subject: Invoice from Monticello Chamber of Commerce and Industry DearJim Your invoice for the September 21, 2021 Chamber lunch is attached. Thank you for supporting our Chamber event. Please remit payment at your earliest convenience. You will find a fink 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 hills online, please click here This email was sent on behalf of Monticello Chamber of Commerce and Inoustry 205 Pine Street Mtnticedo. 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 nfD monticelloccrcom. Julie Chene From: Sent: Subject: info@monticelIocci.com Monday, October 11, 2021 1:34 PM 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: 63291601909 Last 4 of Acct Number: 8769 Amount: $15.00 Description Items Total P 1 Quant'ty Amount Payment for Invoice #7404 2021 Chamber Lunch-9/21/2021-Wright Cty Law [Monticello City of] Enforcement: Chamber Lunch. Member (Jim Thares) 1 $15 00 $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 PC Box 192 Monticello, MIS 55362 (763) 295-2700 info @ monticellocci.com http://www.monticellocci.com 1 Julie Chen From: Sent: To: Subject: Auto -Receipt <norepiy@mail.authorize.net> Monday, October 11, 2021 1:34 PM AP Transaction Receipt from Monticello Chamber of Commerce & Industry for $15.00 (USD) Description: Payment for Invoice #7404 (Monticello City of) : 2021 Chamber Lunch-9/21/2021-Wright Cty Law Enforcement: Chamber Lunch, Member (Jim Thares) $15.00{Class: ] Invoice Number 8311823 Billing information Julie Cheney Monticello City of 505 Walnut Street Suite 1 Monticello, MN 55362 us ap@ci.monticello.mr).us 763-271-3205 Shipping Information Total: $15,00 (USD) Date/Time: 11-Oct-2021 11 34:28 PDT Transaction ID: 632916019o9 Payment Method: Visa xxxx8769 Transaction Type: Purchase Auth Code: 092385 Monticello Chamber of Commerce 8, Industry Monticello, MN 55362 us marcy@monticeJlocci.com Vendor Date of Transaction CITY OIL MONTICELLO Ghost Card Transaction Please attach the invoice/ receipt and any other available documentation to this form. To be completed by purchaser: Amount $ % . 0 U (L5-.0,0X-X) Circle purchaser name: Debbie Davidson r l Julie Cheney) J Expense Code o% 3990 S IS- 02> Monticello Chamber of Commerce and Industry Invoice 205 Pine Street PC Sox 192 Invoice Date: 10/22/2021 Monticello, MN 55362 Invoice Number: 7467 (763) 295-2700 1 fax: (763) 295-2705 info@monticellocci,com Account ID: Monticello City of Accounts Payable 505 Walnut Street Suite #1 Monticello, MN 55362 Thank you for coming to our event. Terms Due Date Net 15 11l612021 Description Quantity Rate Amount 2021 Chamber Lunch-10/1912021-Fire Marshal Dan Kleln- Fire Inspection Program: Chamber Lunch, Pre -paid 1 $0.00 $0.00 Registration (Dan Klein) 2021 Chamber Lunch-10/19/2021-Fire Marshal Dan Klein - Fire Inspection Program: Chamber Lunch, Member (Ron 1 $15.00 $15.00 Hackenmueller) Subtotal: $15.00 Tax: $0.00 Total: $15.00 Payment./Credit Applied: $0.00 Balance: $15.00 Julie Cheney From: Ron Hackenmueller Sent: Wednesday, October 27, 2021 3:38 PM To: Julie Cheney Subject: RE: Monti Chamber $15 Okay to pay the $15 invoice. Thank you, OL" 5CI i CIIImtieL ' Chief Building Official/ Zoning Administrator B0002915 763-271-3253 From: Julie Cheney <Julie.Cheney@ci.monticello.mn.us> Sent: Wednesday, October 27, 2021 3:07 PM To: Ron Hackenmueller <Ron.Hackenmueller@ci.monticello.mn.us> Subject: Monti Chamber $15 Ron Please see the attached invoice from the Monticello Chamber for the lunch you attended. Okay to pay $15.00? Thanks Julie From: Scanning <scanning@ci.monticello.mn.us> Sent: Wednesday, October 27, 2021 3:12 PM To: Julie Cheney <Julie, Cheney@ci,monticello.mn.us> Subject: Scan from City of Monticello - City Hall Monticello Chamber of Commerce and Industry 205 Pine Street PO Box 192 Monticello, MN 55362 (763) 295-2700 1 fax: (763) 295-2705 info@monticellocci.com Monticello City of Accounts Payable 505 Walnut Street Suite #1 Monticello, MN 55362 Thank you for coming to our event. Description 2021 Chamber Lunch-10/19/2021-Fire Marshal Dan Klein - Fire Inspection Program: Chamber Lunch, Member (Jim Thares) Invoice Invoice Date: 10/22/2021 Invoice Number: 7468 Account ID: Terms Due Date Net 15 11/6/2021 Quantity Rate Amount 1 $15.00 $15.00 Subtotal: $15.00 Tax: $0.00 Total: $15.00 Payment/Credit Applied: $0.00 Balance: 1 $15.00 Julie Cheney From: Jim Thares Sent: Friday, October 22, 2021 12:21 PM To: Julie Cheney Subject: RE. Invoice from Monticello Chamber of Commerce and Industry Hi Julie, yes, this is okay to pay. From: Julie Cheney <Julie.Cheney@ci.monticelio.mn.us> Sent: Friday, October 22, 2021 12:10 PM To: Jim Thares<Jim.Thares@ci.monticello.mn.us> Subject: FW: Invoice from Monticello Chamber of Commerce and Industry Jim See the attached invoice from the Chamber for the October lunch meeting you attended. Okay to pay $15.00? Thanks Julie From: Marcy Anderson <marcy@monticellocci.com> Sent: Friday, October 22, 2021 10:53 AM To: AP <AP@ci.monticello.mn.us> Subject: Invoice from Monticello Chamber of Commerce and Industry Dear Jim Your invoice for the October 2021 Chamber lunch is attached. Thank you for supporting our Chamber event. 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 yo.i have questions or comments concerning this email or services in general, please contact us by email at infoAmonticellocci com 1 Julie Cheney From: Auto -Receipt <noreply@mail.authorize.i Sent: Wednesday, October 27, 2021 149 PM To: AP Subject: Transaction Receipt from Monticello Chamber of Commerce & Industry for $30.00 (USD) Description: Payment for Invoice 47468 (Monticello City of) : 2021 Chamber Lunch-10/19/2021-Fire Marshal Dan Klein -Fire Inspection Program: Chamber Lunch, Member (Jim Thares) $15.00{Class: } Payment for Invoice #7467 (Monticello City of) : 2021 Chamber Lunch -10/ Invoice Number 8381621 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: $30.00 (l Date/Time: 27-Oct-2021 13:49:21 PDT TransactionlD: 63322473300 Payment Method: Visa xxxx8769 Transaction Type: Purchase Auth Code: 067779 Monticello Chamber of Commerce & Industry Monticello, MN 55362 US marcy@monticellocci.com Julie Cheney From: Sent: Subject: info@monticeIIocci.com Wednesday, October 27, 2021 3:49 PM 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: 63322473300 Last 4 of Acct Number: 8769 Amount: $30.00 Description Item(s) Quantity Total Amount Payment for Invoice 2021 Chamber Lunch-10/19/2021-Fire Marshal Dan Klein -Fire #7467 (Monticello City Inspection Program: Chamber Lunch, Member (Ron 1 $15.00 of) Hackenmueller) $15.00{Class' ) Payment for Invoice 2021 Chamber Lunch-10/19/2021-Fire Marshal Dan Klein -Fire #7468 (Monticello City Inspection Program: Chamber Lunch. Member (Jim Thares) 1 $15.00 of) $15.00(Clas& ) Grand Total: $30 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 Vendor Date of Transaction 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: D4 Amount $ Circle purchaser name: Deb Cole Tracy Ergen Vicki Leerhoff Rachel Leonard Sarah Rathlisberger Jennifer Schreiner Angela Schumann Jim T ares e Green Liz Lindrud Haley Foster Trevor Mack Ua4en Stensgard Fmakrveijzrapme Supftvgor SignAure l Date. ppro Special Project # or Description Circle department code: 101-41110 101-41310 101-41410 101-41520 101-41800 101-41910 101-41920 213-46500 213-46301 702-00000 Circle expense code: City Council Administration City Clerk/Elections Finance Human Resources Planning and Zoning Data Processing y CitHall _. Economic Development HRA Central IT 421990 General Operating Supplies 431950 Newsletter Services 431990 Miscellaneous Prof Services 432200 Postage 433100 Travel/Training Expense 443300 Dues Membership & Subscrip 443700 Licenses and Permits 44 Misc, Other Expense Other § @ f / _ 2 3 -51 u \ » @ & § r @ z e / / 4 \ 0 ca) § � j u / / § ! § S 2 c ] ) j § / E 2 ra ° \ \ 5 S @ § } . S 2 _ ^ / § 2 E / 61�® } / / ! ) LU z ± = W z 2 w ƒ § ƒ § i z_ u y ± z \ \ \ 6 » 6 / \ / / \ \ \ E \ ° \ 2r� e § = \ c = c o \ ro ¢�< 2m/ 2�/ 2�/ \�/ / G e \e/ uQm << Q s <�< zg3 <�< �m <&< FE2/ «/a $9f em Q#m o� u#m ekq / \ \ / \ \ \ CD § \ \ § * m e Q e Q 9 e � \ - / § _ - / \ / » / 0 / § \ 2 m § ) 0 2LrI S w z u w z u | ± £ E 6 / § ] % / fa { \m/ jLo§ t/ \Nr$ ¢72 ukm mk 2 C § § CD j a.\ \ CD\ 6F). \ 0 0 0\ k CL k§ \2 OCT. 14, 2021 • 7 A.M. • MISSISSIPPI ROOM, MONTICELLO COMMUNITY C fil W-AA 7 : 0 0 • SIGN IN & BREAKFAST BUFFET LINE OPENS 7:15 • 7:20 • r 7:25 • w 7:35 • r 8:10 • 8:15 • INTRODUCTIONS & EVENT PROCEEDINGS OVERVIEW Jim Thares, City of Monticello Economic Development Manager EVENT ANNOUNCEMENTS & SPEAKER INTRODUCTIONS Randy Skarphol, Chair, City of Monticello Industrial & Economic Development Committee (IEDC) FIRST SPEAKER PRESENTATION Brian Koslofsky, Executive Director, Wright Technical Center, Buffalo, MN } KEYNOTE SPEAKER Bob Kill, CEO and President, Enterprise Minnesota TRIVIA PRIZE WINNER ANNOUNCEMENT .k , " Randy Skarphol, IEDC Chair CLOSING REMARKS Randy Skarphol, IEDC Chair ( 1 I) (il Monticello Accounts Payable CITY F Transactions by Account 1b User: Debbie.Davidson onti effo Printed: 12/01/2021 - 11:35AM Batch: 00215.11.2021 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 11/30/2021 0 48.89 Vendor Subtotal for Dept:46301 48.89 Subtotal for Fund: 213 48.89 Report Total: 48.89 AP -Transactions by Account (12/01/2021 - 11:35 AM) Page 1 NORTHERN STATES POWER COMPANY Page 1 of 6 Xcel Energy RESPONSIBLE BY NATOREC QUESTIONS ABOUT YOUR BILL? See ourwebsite: xcelenergy.com Email us at: Customerservice@xcelenergy.com Please Call: 1-800-481-4700 Hearing Impaired: 1-800-895-4949 Fax: 1-800-311-0050 Or write us at: XCEL ENERGY PO BOX 8 EAU CLAIRE WI 54702-0008 PREMISES SUMMARY MAILING ADDRESS ACCOUNT NUMBER CITY MONTICELLO ECONOMIC DEV AUTH WALNUT ST STE 1 MONTICELLO MN 55362-8831 51-0013295413-8 STATEMENTNUMBER STATEMENTDATE751448539 ;/;04/202;1505 10/08/2021 ACCOUNT BALANCE (Balance de su cuenta) Previous Balance As of 09/01 $112.23 Payment Received Auto Pay 10/05 -$112.23 CR Balance Forward $0.00 Current Charges $111.06 Amount Due (Can6dad a pagar) $111.06 PREMISES NUMBER PREMISES IDENTIFIER PREMISES DESCRIPTOR CURRENT BILL 302923602 103 PINE ST EDA $48.89 303409149 112 W RIVER ST PW Split $62.17 Total $111.06 INFORMATION ABOUT YOUR BILL Thankyoufor you rpayment. RETURN BOTTOM PORTION WITH YOUR PAYMENT • PLEASE DO NOT USE STAPLES, TAPE OR PAPER CLIPS Xcel Energy ACCOUNT NUMBER DUE DATE �r ffl 11 1 r 51-0013295413-8 11/04/2021 $111.06 Automated Bank Payment Your bill is paid through an automated bank payment plan. 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 ------ manifest line --------- 21 22 23 24 25 26 27 1"11111"1'1'1'11'1111111111�1'11��111�1��11�111�1�1'111111'I I I' 28 29 30 CITY MONTICELLO ECONOMIC DEV AUTH 505 WALNUT ST STE 1 MONTICELLO MN 55362-8831 1"I�III"�'I'�'�I'IIIIIII�II�I'11��111�1��11�111�1�1'I�IIII'I��' XCEL ENERGY P.O. BOX 9477 MPLS MN 55484-9477 M 32 51110421 00132954138 0000001110600000011106 7 Xcel Energy MAILING ADDRESS ACCOUNT NUMBER 1111:11JAN CITY M0NTICELLO ECONOMIC DEV AUTH 505 WALNUT ST 5TE 1 MONTICELLO MN 55362-0831 51-0013295413-8 11/04/2021 STATEMENT NUMBER STATEMENT DATE I + 751448539 10/08/2021 $111.06 SERVICE ADDRESS: 1M PINE ST MONTICELLD, MN 55=4564 NEXT READ DATE: I1 /031'11 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 302923602 INVOICE NUMBER: 0927712989 READINGMETER I I METER 3632365 - Multiplisr x 40 flead Dates: 09/01/21-10/03/21 132 {lays) DESCRIPTION CURRENT READING PREVIOUS READING MEASURED USAGE BILLED USAGE Total Energy 21475 Actual 21421 Actual 4 18O kWh Demand Actual 0A kW Billable Demand 0 kW ELECTRICITY CHARGES RATE: Sm Gen Svc (Metered) DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $10.00 Energy Charge Summer 145 kWh $0.092560 $13.42 Energy Charge Winter 15 kWh $0.077570 $1.16 Fuel Cost Charge 160 kWh $0.031125 $4.98 Sales True Up 160 kWh $0,008510 $1.36 Affordability Chrg $1.27 Resource Adjustment $2.27 Subtotal $34.45 City Fees $5.50 Total $39.96 OTHER RECURRING CHARGES DETAILS INVOICE NUMBER: 927712960 ADDRESS: 103 PINE ST MONTICELLO, MN 55362-8554 UNIT DESCRIPTION USAGE UNITS CHARGE OTV CHARGE Install Number 157123 09/01/21 to 10102121 100 WATT HPS AREA CO OWN GET DOUBLE REBATE AMOUNTS ON LINEAR TUBES! _ GET 25% BONUS REBATES ON SCREW -IN LAMPS! �~ If you've been thinking about upgrading the lighting in your businass to energy -saving m:; LEDs, we've got great news for you. 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Don't miss your chance to earn more cash back. l - • Visit xcelenergy.corn/LightingEfficiency for details and links to rebate forms. 1 ■ Contact your account manager or an energy advisor at 855-839-8862 or EnergyEfficiency,'Oxcelenergy.com with any questions. a PIPC 3 ni $ �& Xcel Energy OTHER RECURRING CHARGES DETAILS INVOICE NUMBER: 927712960 ADDRESS: 103 PINE ST MAILING ADDRESS ACC 1)UNT NUMBER CITY MONTICELLO ECONOMIC OEV AUTH 505 WALNUT 5T 5TE 1 MONTICELLO MN 55382-8831 51-0013295413-8 11/04/2021 STATEMENT NUMBER STATEMENT DATE 751448539 10/08/2021 $111.06 MONTICELLO, MN 55362-8564 UNIT DESCRIPTION USAGE UNITS CHARGE GTY CHARGE Auto Protective Lgt 42 kWh $7.41 1 $7.41 Fuel Cost Charge $1,01 Resource Adjustment $0.51 Total $8.93 Premises Total DAILY AVERAGES Last Year Temperature 55° F Electricity kWh 5.3 i Electricity Cost $1.35 INFORMATION ABDUT YOUR BILL $48.89 Effective Oct.1, 2021, the Resource Adjustment line item on your bill has increased due to a change in the Conservation Improvement Program (CIP) factor. The electric C I portion of the Resource Adjustment is $0,003521 per kilowatt-hour (kWh). For an average non -demand customer, fib% of your bill refers to power plant costs, 15% to high voltage line costs, and 17%to the cost of IocaI wires connected to your business. Foran average demand -billed customer, 78% of yourtotal bill refers to power plant costs, 14% to high voltage lines, and 8% to the cost of local wires connected to your business. U VFQs CAN HELP DRIVE SAVINGS Variable frequency drives IVFDsj are used across industries to increase the efficiency of HVAC and motor -driven systems. If you haven't submitted a rebate yet, you have 24 months from date of invoice. Xcel Energy rebates can be used to buy down first costs and range from $440 to $8A00 per unit, depending on horsepower. Connect with an energy advisor at 855.839-8862 or visit xcelenergy.cvrnIHVACR to (earn more. pw P.]ni6 Xcel Energym DAILY AVERAGES Last Year Temperature W F Electricity kWh 0.5 r Electricity Cost $2.19 MAILING ADDRESS ACCOUNT NUMBER 1 CITY MONTICELLD ECONOMIC 0EV AUTH 505 WALNUT 5T 5TE T MONTICELLO NON 55362-8831 51-0013295413-8 111U412021 STATEMENT NUMBER STATEMENT DATE 751448539 10/08/2021 $111.N SERVICE ADDRESS: 112 W RIVER ST MDIYTICELLO. MN 55362-8766 NEXT READ DATE: 11/03/21 ELECTRICITY SERVICE DETAILS PREMISES NUMBER: 303409149 INVOICE NUMBER: 0927711798 READINGMETER i METER 15052258 Read Dates- 09/01/21- IO/M21 132 Daysl DESCRIPTION CURRENT READING PREVIOUS READING USAGE Total Energy 69329 Actual 69319 Actual 10 kWh Demand Actual 1.19 kW Billable Demand 0 kW ELECTRICITY CHARGES RATE: General Service DESCRIPTION USAGE UNITS RATE CHARGE Basic Service Chg $25.84 Energy Charge 10 kWh $0.034070 $0.34 Fuel Cost Charge 10 kWh $0,030000 $0.30 Sales True Up 10 kWh $0.008780 $0.09 Energy Chg Crd 10 kWh - $0.015180 - $0.15 CR Demand Charge Summer 0 kW $14.790000 $0.00 Demand Charge Winter 0 kW $10.490D00 $0.00 Affordability Chrg $3.60 Resource Adjustment $1.35 Subtotal $31.17 City Fees $31.00 Tota 1 $62.17 Premises Total $62.17 INFORMATION ABOUT YOUR BILL Effective Oct.1, 2021, the Resource Adjustment line item on your bill has increased due to a change in the Conservation Improvement Program jCIPy factor. Thee I ectric C I portion of the Resource Adjustment is $0.003521 per kilowatt-hour (kWh). For an average non -demand customer, 58% of your bill refers to power plant costs, 151A to high voltage line costs, and 17% to the cost of local wires connected to your business. For an average demand -billed customer, 78% of yourtotal bill refers to power plant costs, 14%to high voltage lines, and 8%to the cost of local wires con nacted to your business. COOLY U R REFRIGERATION COSTS Upgrading to energy -efficient refrigeration equipment and systems can save energy and lower operating casts. We have rebates available on qualifying display cases, doors, defrost controls for walk-in coolers and mor$_ To get s#arted, go to xcelenergy.cam/Ref rig oration to c0rnplete the digital appiiCatian for a free, orrsite refrigeration assessment. The assessment will help identify energy -saving opportunities at your facility. RDr more information call an energy specialist ;�t 855-839-8862 or email us at EnergyEfficL-ncy,@xaeieneqW.com. �7 Xcel Energy TXO KOJ C V NOI THEM H LUAV TAWS X B UAS SIV RAU TUB YEES KOM TSAW Hloov kho cov cuab yeej siv hluav taws xob t hia b cov tub yees korn zoo this] txuag tau hluav taws xob thiab txo tau cov nqi bluav taws xob kom tsag dua. Peb rnual tus r1gi luv rau cov tub xaus (cov tub ntirn khoorn tso rau chav tsev loj), cov ghov roof, cov khoorn tswi kev tso cov dej khov tam rau hauvcov tshuab ua kom txiasthiab ntau yam. Txhawm rau pib, rnus rau ntawm xcetenergV.cornl Refrigeration txha m rau us kom tisv daim ntawvv thou hauv lub cuab yvej siv hluav taws xob {digital} rau ib ghor kev ntsuarn xyvas lub tub yees nyob lwrn ghov chew salt nraud yam tsis tau them nqi. Qhov kev ntsuam xyuas yuav pib txheeb xyuas I u b cib f i m kev txua g hluav taws xob nyob ntawm koj lubtsev. og xav paub cov ntaub ntawv ghia ntau ntxiv ces hu rau tus kws paub tshai txog hIuav taws xob tau rrtawm 855-839-8862 los sis s a u ernaiI rau peh tau ntawm EnergyEffic la ncy g xceianerg y,i:om . op M N M 0 nel4rwrgy,cpm I'P 202P ill Energy Inr ikcoi Energy15 a regissered Trademerk A Xcei EnVUy Inc i 1021ON06 11": EDA: 12/08/21 5. Consideration of Headwaters Development TIF Business Subsidy Application and Authorizing EDA Staff and Consultants to draft a TIF Plan for an Affordable Housing TIF District and Purchase and Development Contract for the sale and development of the 16.71-acre Country Club Addition, Outlot A parcel (JT) A. REFERENCE AND BACKGROUND: Headwaters Development, Lakeville, MN, has submitted a TIF Business Subsidy Application for a multi -family development proposal on the 16.71-acre Country Club Addition site along 7t" Street West. The EDA is asked to consider accepting the application and authorizing EDA and consultant staff to begin drafting the TIF Plan and a DRAFT Purchase and Development Contract necessary for the sale and development of the land needed to allow the proposal to move forward. Under the existing land use map, the site is guided "Mixed -Density Residential" and is zoned R-3, Medium Density residential. The site is bounded on both sides by public roadways. On the north lies 71" Street West. Along the south side of the property lies 4-lane Interstate 94. This stretch of 1-94 is currently being expanded, adding a third lane in each direction. Headwaters Development is indicating that it will pursue the development through the City's Planned Unit Development (PUD) ordinance. Headwaters Development is proposing to build a total of 168 new housing units in three sequential phases. The housing would consist of a 108-unit affordable senior (age 55 +) apartment building in the western portion of the site and 60 rental twin -home units (30 pad sites), also targeting the age 55 + demographic on the eastern half of the parcel. To comply with the TIF statute, they are proposing to offer 40 percent of the units to households with incomes at 60 percent of the area median income (AMI) for Wright County. The twin -homes will be single story patio style structures consisting of 1,200 square feet +/- with attached two stall garages. The apartment building will be four stories with a parking garage included on the ground floor. The 168 units equate to a density of 10.60 units per acre. A site proposal concept is included in the Summary Overview document which is attached to this report. The total development cost is expected to be approximately $44,000,000. The per acre average cost is equal to $2,634,730 per acre. The per unit cost for the full proposal is $262,500 +/-. To offset site grading, utilities, road construction and building construction costs, Headwaters is proposing that an affordable housing TIF District (potential 26-year district) be established to assist with development costs. They are requesting $4,700,000 +/- in pay -go increment (10.6 percent of total cost) for qualified development costs. The developer equity contribution is $10,050,000 or about 23 percent of the total development cost. The developer indicates that they will be unable to finance the proposal without TIF assistance as without it, they fall under the typical debt service coverage ratio of 1.20. An initial review of the proposal indicates that the development may generate increment more than the requested $4,700,000. Additional analysis of the financial statements will be required by Northland Securities as it reviews the "but for" test and the tax increment potential. EDA: 12/08/21 As noted in Headwaters' submittal, they are asking to have the EDA land conveyed for the price of $1.00. The County currently lists the land value for taxable market purposes as $386,100 or ($23,105 per acre). As noted in previous reports, there is also the matter of outstanding assessments which are intended to be recovered. The EDA has owned this property for some time. The property was originally part of a residential development with public improvement assessments. The developer shifted the bulk of the assessments to the vacant linear parcel adjacent to 1-94. After that occurred, and as the development climate slowed, the property went in tax forfeiture with the assessments unpaid. The EDA was eventually able to obtain title to the property and is the current owner. The unpaid assessments levied against this parcel total $232,209 +/-. A preliminary TIF estimate for the project indicates sufficient tax increment flow from the full build -out to fund requested development costs, land acquisition and outstanding assessments. As part of its consideration, City staff would recommend that the EDA hold a closed meeting in the near future to discuss the land value and pricing and the offer that Headwaters has put forward through its TIF Application. It can then respond to Headwaters with a counteroffer or confirm acceptance of the price. Staff believes the EDA should receive compensation for the "full market value" of the property. The TIF District would provide a mechanism for that to occur. Initial review of the development proposal indicates that there may be sufficient tax increment generated through the new valuation allowing the EDA to capture a full market rate price for the land parcel over the life of a TIF District. Headwaters Development is an experienced developer, and the City of Monticello has recently had a positive development experience with them as they completed the Willows Landing Assisted Living facility. Willows Landing is a $16,000,000 - 96-unit assisted living facility, in Monticello located at located 9872 Hart Boulevard. The developer believes the Monticello market is capable of further absorption of senior housing units. They reviewed the 2020 Housing Study and believe the concept proposal will fill a portion of the demand for senior units in the community. The Study findings indicate the City has an unmet demand for approximately 241 senior units, ranging from active to assisted and at varying affordability -price ranges. The signed TIF Application is attached to this report. A Summary Overview which includes an illustration of the proposed development and the development budget indicating a funding gap is also attached for your review. The development proposal will also require land use application and approval. Staff understands that Headwaters is progressing toward a Preliminary Plat and Development Stage PUD application for January. EDA: 12/08/21 Al. STAFF IMPACT: Staff involved in this stage of the review of the TIF Application consists of the Community Development Director, Economic Development Manager, the EDA attorney and the financial advisor, Northland Securities. Time commitments to date have been related to initial discussions about the proposal along with review and organization of the proposal materials as part of preparing the staff report for EDA review. If the EDA approves the TIF Application and authorizes staff to move forward with tasks related to the proposal, staff will start the process of drafting plans and documents needed for the next review steps and final consideration by the EDA and City Council. An estimate of in-house staff time that will be committed to the entire process is approximately 65 hours. Northland Securities has also reviewed the proposal and provided an initial TIF flow estimate based on the proposal cost and the phasing. A2. BUDGET IMPACT: There is a limited budget impact in considering the Headwaters Development TIF Application. Headwaters has paid the initial $10,000 fee to cover consultant costs involved in the review process. Any costs incurred by the EDA (consultant fees) beyond the $10,000 escrow submittal will be invoiced to Headwaters Development. As currently proposed, the EDA would receive land sale revenue through the flow of tax increment into its General Fund that can be used for other worthy future economic development projects. B. ALTERNATIVE ACTIONS: 1. Motion to accept the TIF Application and authorize staff and EDA consultants to draft TIF Plan and related documents and a DRAFT Purchase and Development Contract for the sale and development of the 16.71-acre Country Club Addition, Outlot A parcel. 2. Motion to table accept the TIF Application and authorize staff and EDA consultants to Draft TIF Plan and related documents and a DRAFT Purchase and Development Contract for the sale and development of the 16.71-aver Country Club Addition, Outlot A parcel. 3. Motion of other as directed by the EDA. C. STAFF RECOMMENDATION: Staff recommends Alternative #1. Headwaters Development's estimated $44,000,000 proposal would support continued diversification of the Monticello housing market, addressing the senior -aged housing needs. The City of Monticello 2020 Housing Study indicates an unmet demand of approximately 241 housing units of varying styles and costs for seniors (55 +). Headwaters Development is proposing to develop affordable housing units equating to 40 percent of the total 168 new units. The 40 percent figure equals 68 units and fills over half of the documented need of 103 subsidized senior units in the City. EDA: 12/08/21 Also, the proposed use of the EDA owned land parcel seems appropriate given the EDA's role as the City's Housing & Redevelopment Authority and would move a parcel that has been in the EDA land inventory for many years into productive use and eventually onto the tax rolls. D. SUPPORTING DATA: a. TIF Application b. Summary Overview —168 Housing Units, 55 + with Development Cost Budget c. Aerial Photo of Site d. County Property Information Report e. 2020 Housing Study, Excerpts CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT FINANCING (TIF) PRE -APPLICATION BUSINESS SUBSIDY APPLICATION BUSINESS ASSISTANCE FINANCING Legal name of applicant: Headwaters Development LLC Address: 6511 Nez Perce Drive, Chanhassen, MN 55317 612-438-2727 Telephone number: Name of contact person: Michael Hoagberg 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 Applicant's signature: Date: November 29, 2021 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Application for Tax Increment Financing (TIF) Assistance GENERAL INFORMATION: Business Name: Headwaters Development LLC 6511 Nez Perce Drive Address: Chanhassen, MN 55317 Type (Partnership, etc.): Limited Liability Company Authorized Representative: Michael Hoagberg Description of Business: Real Estate Development Legal Counsel: Fabyanske, Westra, Hart & Thomson P.A. 333 South Seventh Street, Suite 2600 Address: Minneapolis, MN 55402 FINANCIAL BACKGROUND: No 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? Date: November 29, 2021 612-438-2727 Phone: Phone: 612-359-7600 4. List financial references: American National Bank, Hayley Monnens, Director, Private and Professional Services Banking, a. 612-238-4823 b. Minnwest Bank, Brad Steiner, SVP, 952-230-9800 Bridgewater Bank, Chris Myers, AVP Commercial Lending, 952-737-4747 C. 2 5. Have you ever used Business Assistance Financing before? If yes, what, where and when? PROJECT INFORMATION: 7`' Street West and Golf Course Road 1. Location of Proposed Project: No Land contribution, $4.7mm TIF (NPV), reduction 2. Amount of Business Assistance requested? of fees 3. Need for Business Assistance: To provide affordable housing to seniors 55+ 4. Present ownership of site: City of Monticello 5. Number of pennanent jobs created as a result of project? 6. Estimated annual sales: Present: $0 Approximately 10 FTEs $3.5 million Future: 7. Market value of project following completion: We estimate the value to around $25 million for the The multifamily project and about $22 million for the villa project 8. Anticipated start date: May 2022 FINANCIAL INFORMATION: 1. Estimated project related costs (Multifamily): December 2023 Completion Date: $ 1.00 a. Land acquisition **Incl. in Building Cost b. Site development $20,500,000.00 c. Building cost $300,000.00 d. Equipment $250,000.00 e. Architectural/engineering fee $50,000.00 f. Legal fees $2,500,000.00 g. Off -site development costs 3 2. Source of financing (Multifamily): $ 15,250,000.00 a. Private financing institution b. Tax increment funds 3,000,000.00 c. Other public funds 0.00 d. Developer equity 5,350,000.00 1. Estimated project related costs (Senior Villas): $ 1.00 a. Land acquisition **Incl. in Building Cost b. Site development $16,700,000.00 c. Building cost $30,000.00 d. Equipment $150,000.00 e. Architectural/engineering fee $50,000.00 f. Legal fees $3,570,000.00 g. Off -site development costs 2. Source of financing (Senior Villas): $ 14,100,000.00 a. Private financing institution b. Tax increment funds 1,700,000.00 c. Other public funds 0.00 d. Developer equity 4,700,000.00 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 Monticello Affordable Senior Community 168 Unit Senior Housing Monticello, MN Statement of Confidentiality & Disclaimer This is a confidential memorandum intended solely for your own limited use. You agree to treat confidentially the information contained in this memorandum (the "Information"). You agree that you will not knowingly use the Information in any way detrimental to Headwaters Development, LLC ("HWD") and all affiliates (collectively the "Sponsor") and that such Information will be kept confidential by you and agents or advisors retained by you; provided however, that any such Information may be disclosed to your directors, officers, employees, and representatives and to individuals acting in similar capacities on your behalf who need to know such Information (it being understood that such agents, advisors, directors, officers, employees and representatives shall be informed by you of the confidential nature of such Information and shall be directed by you to treat such Information confidentially). Although the Information has been prepared in good faith and is believed to be accurate, you understand that the Sponsor has not made any expressed or implied representations or warranties as to the accuracy or completeness of the Information. You agree that the Sponsor shall not have any liability to you or any of your representatives or agents resulting from the use of the Information. This confidential memorandum shall not be deemed an indication of the state of affairs of the Sponsor, nor constitute an indication that there has been any change in the business or affairs of the Property or the Sponsor since the date of preparation of this memorandum. For additional Information, please contact: Michael J. Hoagberg Headwaters Development President E: mhoagberg@headwatersdevelopment.com W: (612) 438-2727 C: (612) 723-3330 Brian T. McCaw Headwaters Development Chief Financial Officer E: bmccaw@headwatersdevelopment.com W: (612) 438-2831 C: (917) 587-7275 Project Summary Headwaters Development, LLC is proposing a 168 unit senior 55+ community on the approximately 16.5 acre site located at the corner of Golf Course Road and 7t" Street West. The project will consist of 100 unit multifamily building and 30 twin home villas (60 units) — single story living. The project projects at least 40% of all units will be considered affordable based on 60% AMI levels for Wright County. The project took into consideration in its design, unit mix and rental rates, the housing study completed by the City of Monticello in 2020. .r • F #- A,- i. A3 Application Addendum — Site Map with Boundaries Club C-- P—'I E:1 Site Boundary Application Addendum —Proposed Watershed PROPOSED LAND USE DATA WATERSHED IMPERVIOUS AREA{AL) PERVTOIIS AREA (AC) TOTAL AREA. (AC) P 1 2-951 2315 5.266 P-2 0.639 Dim 1.465 R3 1.874 1.852 3.726 P4 CLOM 1.713 1.71 P3 2.351 2.171 VZ / j 1 y' j\ 1 j P-4 / PROPOSED INFILTRATION BASIN SERVING P-3 AND OVERFLOW FROM P-2 BASIN PROPOSED INFILTRATIONS / BASINS SERVING P-1 \ \ - 4 PROPOSED WATERSHED EXHIBIT HEADWATERS DEVELOPMENT - MONTICELLO, MN PROPOSED INFILTRATION BASIN SERVING P-2 Application Addendum — General Description The project will be broken into two main projects (two separate lots); with the twin home site further divided into zero lot lines for each villa residential unit. All units are expected to be for rent, not for re -sale. Project 2 Project Size: $23.6 million Two Phase: 108 units total Type: Multi -family Parking: 75 on -grade; 100 covered Project 1 Project Size: $20.5 million Two Phase: 60 units total Type: single story villas Parking: 2-car garages Application Addendum — Expected Calendar The Developer plans to roll -out the build in multiple phase in order to stagger the overall construction of each unit type. Below is the rough proposed timeline for each of the Phases: Alternate Phasing: to delay start of one TIF District Application Addendum - MULTI FAM PROJECT• Project Pro Forma Total VILLAS PROJECT• SOURCES OF FUNDS First Mortgage 64.6% $ 15,250,000 TIF Capital 12.6% 2,979,740 Equity 22.8% 5,370,260 TOTAL SOURCES OF FUNDS 100.00% $ 23,600,000 USES OF FUNDS Land Costs Land Purchase (Contributed) $ 2.84 $ 370,260 Environmental - Assessment $ 0.02 2,000 Survey & Geotech $ 0.06 7,500 Site Appraisal $ 0.04 5,000 Total Land Costs $ 2.95 $ 384,760 Soft Costs Architecture $ 1.91 $ 250,000 City Fees- Planning & Zoning $ 5.68 741,980 Liability Insurance $ 0.11 15,000 Legal $ 0.15 20,000 Market Study $ 0.01 1,500 Pre -Open Working Capital (Incl Marketing) $ 1.53 200,000 Operating Deficit $ 1.53 200,000 Title & Recording $ 0.19 25,000 Title Company Draw Fees $ 0.04 5,000 Capital Interest $ 0.96 125,000 Soft Cost Contingency $ 0.19 25,000 Total Soft Costs $ 12.32 $ 1,608,480 Hard Costs Construction Amount - Multifamily $ 155.00 $ 20,237,265 Design Management $ 0.96 125,000 FF&E $ 2.26 294,495 Project Management $ 0.57 75,000 Total Hard Costs $ 158.79 $ 20,731,760 Total Financing Fees $ 6.70 $ 875,000 TOTAL USES OF FUNDS $ 180.76 1 $ 23,600,000 eadwaters Development, Total SOURCES OF FUNDS First Mortgage 68.9% $ 14,133,830 TIF Capital 8.3% 1,700,000 Equity 22.8% 4,666,170 TOTAL SOURCES OF FUNDS 100.00% $ 20,500,000 USES OF FUNDS Land Costs Land Purchase (Contributed) $ 21.36 $ 1,666,170 Environmental - Assessment $ 0.03 2,000 Survey & Geotech $ 0.10 7,500 Site Appraisal $ 0.06 5,000 Total Land Costs $ 21.55 $ 1,680,670 Soft Costs Architecture $ 0.96 $ 75,000 City Fees- Planning & Zoning $ 8.31 648,480 Liability Insurance $ 0.19 15,000 Legal $ 0.26 20,000 Market Study $ 0.02 1,500 Pre -Open Working Capital (Incl Marketing) $ 1.92 150,000 Operating Deficit $ 1.92 150,000 Title & Recording $ 0.32 25,000 Title Company Draw Fees $ 0.06 5,000 Capital Interest $ 0.83 65,000 Soft Cost Contingency $ 0.32 25,000 Total Soft Costs $ 15.13 $ 1,179,980 Hard Costs Construction Amount - Multifamily $ 211.91 $ 16,529,350 Design Fee $ 1.60 125,000 FF&E $ 0.38 30,000 Project Management $ 0.96 75,000 Total Hard Costs $ 214.86 $ 16,759,350 Total Financing Fees $ 11.28 $ 880,000 TOTAL USES OF FUNDS $ 262.82 1 $ 20,500,000 Application Addendum — Statements Comprehensive Guide Plan • The parcel is currently zoned R-3 - Medium Density Residence District. The purpose of this district is to provide a range of housing choices and affordability through varying housing densities, types and designs including accessory dwelling units. Headwaters' proposed development meets the intent and required overall standards of the R-3 Zoning District through its blended multi -family apartment and twin -home patio style development featuring a total of 168 units. Our plan is to work with City staff and pursue our development approval through the City's PUD (Planned Unit Development) ordinance to allow for nuances in density in the specific portions of the proposal. Use of Assistance • The project will utilize public assistance to support the construction and operations of the senior community. The assistance will further support the project's ability to offer a minimum of 40% of its units to seniors meeting affordability requirements. Without the assistance, the project is not viable and will not be able to secure sufficient private funding (bank construction loans). Public Benefits • First and foremost, this project will be a part of solving the cities need for affordable senior housing. By providing this option to the residents of Monticello and surrounding communities, it allows those seniors to stay in a community they have been a part of for a long time. They are able to move into a more manageable residence, their existing homes turnover to the younger generation and ultimately supports future growth for the city. This project also expects to create more than $35 million of incremental property value on a site that has been owned by the city for a long time and has had essentially no market value. This project will allow the city to capture the value of the land over time, which it has been unable to do over the past several years. Application Addendum — Development Team The developer represents one of the strongest senior housing teams in the country ■ The most important aspects of a senior housing development is ensuring the entire team has a deep understanding of the product and has substantial experience building and operating communities specifically designed for the senior population ■ The developer team has a long and successful track record of designing, developing and operating senior housing communities HEADWATERS DEVELOPMENT ' Development,` Construction and Operations experts D E LTA MODULAR JAYBIRD CONSTRUCTION SENIOR LIVING Headwaters Development Headwaters Development is a full service real estate development company dedicated exclusively to the senior housing segment Our partners have substantial senior housing experience, including senior housing real estate development and operations, and over $4 billion of portfolio debt and equity transactions Headwaters Development brings a depth of knowledge to the senior housing space unmatched by most generalist real estate developers in the market. It's our ability to seamlessly source project capital (both debt and equity), identify premiere locations for new project developments, execute construction management and provide operational oversight that sets us apart from our competition ■ Capital Markets: Ability to efficiently access both debt and equity providers to meet necessary capital requirements for each project ■ Market Feasibility: Analyzing markets to identify key supply and demand dynamics and demographics critical to locating the right market to initiate a new senior housing project ■ Construction Management: Coordination of development partners with a proven track record in senior housing. The development relationship plays a critical role in building the budget, creating the architectural design, obtaining appropriate permitting and licenses, and coordinating construction of the new community ■ Operations: Getting involved as early as possible to ensure the building design is optimal for the market being served and the expected level of acuity of the senior population. Coordinate community operations from fill -up through stabilization HEADWATE" -[JEVELOI'MENT- Award Winning Senior Living — Stonehaven • Voted best Senior Apartment in 2020 and 2021 • Developed by Headwaters Development, is a 97 unit senior living community offering the complete continuum of care, 78 independent living and assisted living units, 15 memory care units, and 4 rehabilitative care suites — Filled in 12 months ■ Amenities throughout the community, including a fitness center, beauty salon, library & game room, gourmet kitchen, club room, theater, arts & crafts room and a spiritual reflection room Award Winning Senior Living — Riley Crossing ■ Voted 2019 Business of the Year ■ Riley Crossing Senior Living is a Class A senior living community and Child Daycare center offering an Intergenerational experience that enhances the quality of life for both the seniors and the children ■ Developed by Headwaters Development, a 153 unit senior living community offering the complete continuum of care, 101 independent living and assisted living units, 28 memory care units, 8 rehabilitative care suites, and 16 twin homes — 45% pre -leased (Opened November 2019) — 100 student child daycare center ��1 El 2019 New Member f L,! of the Y. Award Riley Crossing Child & Senior Living southwest ►tne+rev CHAMBER OF COMMERCE Unmatched Quality — Willows Landing Senior Living • Developed by Headwaters Development, Willows Landing is a 93 unit senior living community offering the complete continuum of care, 78 independent living and assisted living units and 15 memory care units ■ Situated on the bluffs overlooking the beautiful Mississippi River valley. This community was specifically built to blend into the surrounding residential neighborhoods and the natural waterways of the Mississippi. ■ Amenities throughout the community, including a fitness center, beauty salon, library & game room, gourmet kitchen, club room, arts & crafts room and a spiritual reflection room ■ Opened December of 2020, nearly reached stabilization within the first year of operations a T Monticello Senior Community Senior Housing Development Specialist fM 0,,,,Beacon Wright County, MN Overview Legend Roads — CSAHCL — CTYCL MUNICL --6 PRIVATECL -- TWPCL Highways Interstate State Hwy US Hwy City/Township Limits ❑c ❑t Parcels Date created: 12/2/2021 Last Data Uploaded: 12/2/20218:31:27 AM Developed by" Schneider GEOS?ATIAL 12/2/21, 9:51 AM Beacon -Wright County, MN - Report: 155033900010 f%Beacon Wright County, MN Summary Parcel ID 155033900010 Property Address Sec/Twp/Rng 10-121-025 Brief Tax Description Sect-10 Twp-121 Range-025 COUNTRY CLUB MANOR OUTLOT A (Note: Not to be used on legal documents) Deeded Acres 0.00 Class 958 - (NON-HSTD) MUNICIPAL PUB -OTHER District (1101) 1101 CITY OF MONTICELLO 882 H School District 0882 Creation Date 01/01/0001 Note: Class refers to Assessor's Classification Used For Property Tax Purposes Owner Primary Taxpayer City Of Monticello Eda Executive Director 505 Walnut St Ste 1 Monticello, MN 55362 GIS Acreage Parcel: 155033900010 Acres: 16.71 Acres USAB: 16.71 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 728,012.60 Land Unit Seq Description Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Adj 4 1 RES B 0 0 0 14.710 AC 35,000.000 1.00 1.00 1.00 0.75 Total 14.710 Recent Sales In Area Sale date range: From: 12/02/2018 To: 12/02/2021 Sales by Neighborhood 1500 3 Feet v ' Sales by Distance Transfer History Grantor CITY OF MONTICELLO HRA Eff Rate Div 26,249.966 1.000 Grantee Doc Date Transfer Date Doc Type Doc No CITY OF MONTICELLO EDA 1/2/2008 2/21/2008 QCLDEED 1080161 Value 386,137 386,137 Sale Price $0 https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=1310&KeyValue=155033900010 1/2 12/2/21, 9:51 AM Taxation Beacon -Wright County, MN - Report: 155033900010 Estimated Market Value - Excluded Value - Homestead Exclusion Taxable Market Value Net Taxes Due + Special Assessments = Total Taxes Due Change Taxation (Preliminary 2022 Taxes Payable) Estimated Market Value Excluded Value Homestead Exclusion = Taxable Market Value Net Taxes Due + Special Assessments = Total Taxes Due Change Taxes and Special Assessments Payable in 2022 are preliminary. Map 2021 Payable 2020 Payable 2019 Payable 2018 Payable $386,100 $257,400 $220,700 $198,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00% 0.00% 0.00% 0.00% 2022 Proposed 2021 Payable $386,100 $386,100 $0 $0 $0 $0 $0 $0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.00% 0.00% No data available for the following modules: Land GA/RP, Buildings, Extra Features, Sales, Valuation, Taxes Paid, Photos, Sketches. The information provided on this site is intended for reference purposes only. The information is not suitable for legal, engineering, or F),,-,, c f u 3ed by surveying purposes. Wright County does not guarantee the accuracy of the information contained herein. Schneider User Privacy Policy CaEOSPATIAL GDPR Privacy Notice Last Data Upload: 12/2/2021, 7:31:27 AM Version 2.3.164 https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=1310&KeyValue=155033900010 2/2 107 SENIOR UNIT TYPE DEMAND 10 Active Adult Housing Demand for market rate, active living senior housing comes from those household that prefer this type of unit and can afford it, either because they have sufficient current income or because they have sufficient savings, most often in the form of home sale equity. All households in this demand category, both current and projected, have at least one household member above the age of 55. Many active adult housing communities are age -restricted and become available once a household member reaches the limit (typically 55), while other are not restricted - solely marketing themselves as active adult communities to ensure inclusivity. sow It is important to note that indicated demand for this market type does not include units that already exist within the market, and should be adjusted accordingly. Market Rate Active Adult Demand 2020 2025 Number of Households wiih Qualifying Incomes 437 641 Potentially Qualifying Households with Home Sale Equity 110 112 Base Demand 547 753 Unit Type Preference 6.5% 6.5% Existing City Resident Demand 36 49 New City Resident Demand 24 34 Total unit demand 60 units 83 unit Subsidized Independent Living;` Ilk Subsidized independent living refers to income -restricted independent living developments. This offers opportunity for income -limited and fixed -income households to have access to those services they require as they continue to age. Demand is calculated by measure of fixed- and income -restricted households without the potential for home sale equity. This is then adjusted to the average percentage of households who prefer or need to live in this style housing in 55+ age categories. It is important to note that indicated demand for this market type does not include units that already exist within the market, and should be adjusted accordingly. Subsidized Independent Living Demand 2020 2025 Number of Households with Qualifying Incomes 493 548 Base Demand 493 548 Unit Type Preference 12.5% 12.5% Existing City Resident Demand 62 69 New City Resident Demand 30 34 —Total unit demand 92 units 103 writs Unit Demand & Recommendations io8 SENIOR UNIT TYPE DEMAND Market Rate Independent Livin Market Rate independent living refers to non -income restricted independent living developments. This offers opportunity for higher -income senior households and those with potential home sale equity to have access to required services as they continue to age. It is important to note that indicated demand for this market type does not include units that already exist within the market, and should be adjusted accordingly. Market Rate Independent Living Demand 2020 2025 Number of Households with Qualifying Incomes 219 246 Potentially Qualifying Households with Home Sale Equity 74 84 Base Demand 293 330 Unit Type Preference 10% 10% Existing City Resident Demand 29 33 New City Resident Demand 18 22 Total unit demand 41 units 55 units Market Rate Assisted Living Market Rate assisted living refers to assisted living development for households with a higher - income or access to potential home sale equity. Demand is calculated by measure of income - qualified households, as well as potentially qualifying household with access to home sale equity. This is then adjusted based on the local number of single -person senior households in Monticello, and filtered by the estimated percent of households who can continue in -home care as opposed to assisted living. It is important to note that indicated demand for this market type does not include units that already exist within the market, and should be adjusted accordingly. Market•.- Assisted Living Demand2020 2025 Persons in Need with Potential Home Sale Equity 368 480 Percent of Households with Qualifying Incomes 41 % 41 % Number of Income Qualified Households 221 221 Base Demand 370 416 Demand from Current Single Person Households 167 187 Demand from Current Two Person Households 204 229 Unit Type Preference/Need 40% 40% Existing City Resident Demand 148 166 New City Resident Demand 60 76 Total unit demand 208 units 242 units City of Monticello Housing Needs and Demand EDA: 12/08/21 6. Consideration of Adopting Resolution #2021-14 Requesting the City Council call for a Public Hearing related to establishing an Affordable Housing TIF District #1-42 (JT) A. REFERENCE AND BACKGROUND: This item asks the EDA to consider adopting Resolution #2021-14 requesting the City Council call for a Public Hearing related to the proposed establishment of a new affordable housing Tax Increment Financing (TIF) District, #1-42. Headwaters Development recently submitted a Business Subsidy TIF Application for review and discussion at the December 8, 2021, EDA meeting. Consideration of the application and related follow-up action is the subject of a corresponding staff report. Headwaters is proposing to develop 168 housing units on a 16.70-acre EDA owned property located along 71" Street West. They plan to construct 60 twin -homes on 30 pad sites (like slab -on -grade patio homes) and a 108-unit multi -family apartment building. The project for both styles of housing would be completed in two phases over a 24-to-28-month time frame starting in spring of 2022. The total project cost would be approximately $44,000,000 Headwaters TIF application indicates that they have a funding gap of approximately $4,700,000 +/- and will not be able to proceed with the development without TIF assistance. State statutes for TIF review steps include a public hearing held by the City Council. Several years ago, the City Council assigned TIF District review and administration to the EDA. The City Council is still responsible for the final approval step in authorizing the creation of a new TIF District. The EDA last established an affordable housing TIF District in 2018 when it approved the establishment of TIF District #1-40 which it used to support the Briggs Companies development of a 47-unit apartment known as Rivertown Residential Suites in Block 36, in the core downtown area of Monticello. The Briggs development was recently sold to an investment group based in St. Cloud and is now managed by Granite City Real Estate. The development contract was also transferred to the new ownership group. Under the terms of the contract, 10 units must remain affordable and be rented to households with incomes at or below 50 percent of the area median income (AMI) for Wright County. Al. STAFF IMPACT: There is a limited staff impact in considering the resolution requesting the City Council call for a public hearing to consider establishing a new affordable housing TIF District. The EDA Resolution was drafted by the EDA attorney. In-house staff have been involved in the discussions with the developer. In-house staff have consulted with the EDA attorney and Northland Securities, Inc., the City financial advisor, regarding process and documentation steps at the outset of receipt of the TIF Business Subsidy Application from Headwaters. As the TIF review and approval process unfolds, there will be considerable additional time commitments from in-house staff as well as legal and financial advisory consultants. EDA: 12/08/21 A2. BUDGET IMPACT: The TIF application fee of $10,000 which Headwaters Development submitted with its application will cover the cost of the initial steps in the TIF review and approval process. All costs incurred through the TIF review and approval process will be invoiced to Headwaters. The budget impact of the development project itself is positive in that the EDA has expressed a desire to be paid a market rate price through annual increment capture, for the 16.7-acre parcel. Over time, the increment capture will flow into the EDA General Fund and allow it to pursue other housing and industrial projects as needed. Also, Headwaters is not requesting a waiver of standard fees such as SAC, WAC, Trunk Fees, Park Dedication, etc. Ultimately, TIF increments are derived from new tax revenue from "new development" valuation. If a project never occurs, the community does not gain any new real property tax base, property tax payments nor tax increment flow. B. ALTERNATIVE ACTIONS: 1. Motion to adopt Resolution #2021-14 requesting the City Council call for a Public Hearing related to establishing Affordable Housing TIF District #1-42. 2. Motion to table adoption of Resolution #2021-14 requesting the City Council call for a Public Hearing related to establishing Affordable Housing TIF District #1-42. 4. Motion of other as determined by the EDA. C. STAFF RECOMMENDATION: Staff recommends that the EDA proceed per Alternative #1. The TIF Business Subsidy Application materials submitted by Headwaters Development indicate that it needs substantial assistance to proceed with the proposed development. If the EDA determines that it wants to use Affordable Housing TIF to support the proposal, then the initial step is to ask the City Council to call for a Public Hearing to consider public input in its deliberation of establishing a new Affordable Housing TIF District. D. SUPPORTING DATA: a. Resolution # 2021-14 b. TIF Approval Calendar c. EDA TIF Guidelines CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.2021-14 RESOLUTION REQUESTING A PUBLIC HEARING ON THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-42 BE IT RESOLVED, by the Board of Commissioners (the "Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: WHEREAS, the City Council (the "Council") of the City of Monticello, Minnesota (the "City") previously established its Central Monticello Redevelopment Project No. 1 (the "Redevelopment Project") and has previously created multiple tax increment financing districts within the Redevelopment Project, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"), in an effort to encourage the redevelopment of certain designated areas within the City; and WHEREAS, the City has transferred the administration and control of its tax increment financing districts to the Authority; and WHEREAS, the Authority recognizes an ongoing need to encourage economic development and redevelopment opportunities within the Redevelopment Project, as well as a need for affordable housing; and WHEREAS, the Authority is proposing the creation of Tax Increment Financing District No. 1-42 (the "TIF District"), a housing district, within the Redevelopment Project, and the approval of a Tax Increment Financing Plan ("TIF Plan") for the TIF District, pursuant to and in accordance with Section 469.175 of the TIF Act, for the purpose of assisting the construction of multifamily rental housing and townhomes within the City; and WHEREAS, the creation of tax increment financing districts must be approved by the City Council of the City after a duly noticed public hearing. NOW, THEREFORE BE IT RESOLVED by the Board as follows: The Authority hereby requests that the Council call for a public hearing to be held on February 14, 2022, to consider the proposed establishment of the TIF District and the adoption of a TIF Plan for the TIF District, and to cause notice of said public hearing to be given as required by law. 2. The Authority directs the Executive Director to transmit copies of the TIF Plan to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed TIF Plan is in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. MN190\163\764466.v1 3. The Executive Director of the Authority is hereby directed to submit a copy of the TIF Plan to the Council for its approval. 4. The Authority directs the Executive Director to transmit the TIF Plan to Wright County and Independent School District No. 882 (Monticello Public Schools) not later than January 14, 2022. 5. Staff and consultants are authorized and directed to take all other steps necessary to prepare the TIF Plan and related documents and to undertake other actions necessary to bring the TIF Plan before the Council. Adopted by the Board of Commissioners of the City of Monticello Economic Development Authority this 8th day of December, 2021. President Attest: Executive Director MN190\163\764466.v1 S M T W T F S 1 2 3 4 5 6 7` 8 9 10 11 12 - 14 15 16 17 18 19 20 21 F22 23 24 25 26 - 28 29 30 31 S M T W T F S 1 2 3 4 5 6 7 8 9 11 111 12 13 14 15 16 17 18 19 20 21 22 230 25 M 27 28 29 30 31 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 - 15 16 17 18 19 20 21 22 23 24 25 26 27 - S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 City of Monticello Central Monticello Redevelopment Project No. 1 Establishment of Tax Increment Financing District No. 1-42 Housing TIF District Headwaters Public Hearing on February 14 December 8 EDA request City Council call for hearing December 13 City Council calls for public hearing January 4 Last day for written notice to County Commissioner January 14 Last day for notice and TIF plan and fiscal implications to County and School District January 31 Last day to submit public hearing notice to newspaper, by 4pm February 1 Planning Commission review February 3 Public hearing notice published in the newspaper February 9 EDA approval of TIF, subject to Council approval February 14 Public hearing and establishment of TIF District March 15 Request certification by County March 15 Submit plan to State June 30 Certification of TIF District by this Date Notes: 1 City Council regular meeting dates. 2 Economic Development Authority (EDA) regular meeting dates. 3 Planning Commission regular meeting dates. 4 City publication dates need to be confirmed and added to calendar. TIF for Housing NORTHLAND PUBLIC FINANCE 11/22/2021 EDA: 12/08/21 7. Consideration of approving Contract with Northland Securities, Inc. for Financial Planning Services related to creation of Affordable Housing Tax Increment Financing District #1-42 in the amount of $10,535 (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider approving a specific project -based Contract with Northland Securities, Inc. (NSI) related to creation of an Affordable Housing Tax Increment Financing (TIF) District #1-42. Headwaters Development has submitted a Business Subsidy TIF Application The application submittal by Headwaters Development warrants EDA consideration of entering into a contract with NSI to obtain financial planning and analysis services as well as guidance in the required steps in establishing a new TIF District. The attached proposal outlines services related to development parcel valuation data, review of the developer finance structure and the critical "but for" findings. It also covers preparation and distribution of various notices, planning documents, completion of a TIF Plan and attendance at two key meetings. It does not include legal documents such as resolutions and development agreements. Headwaters Development previously met with the EDA in a TIF Pre -Application review meeting (August 11, 2021) wherein it provided an overview of its proposed development. At that meeting, the EDA expressed interest in accepting a future final TIF Business Subsidy application from Headwaters for the 168-unit apartment and twin - home development proposal. The 16.71-acre site that Headwaters is proposing to develop is currently owned by the EDA. The EDA took ownership to the property many years ago after the City received title through a tax forfeiture process. Analysis work completed by NSI will help inform the EDA as to the amount of available increment from the full development, under current tax laws, and further guide a purchase agreement structure with Headwaters Development. If a new Housing TIF District is not the desired assistance tool for the proposed development, NSI will only bill for actual work performed based on an hourly rate of $215. NSI will also coordinate with the City's legal counsel as required for the project. Al. STAFF IMPACT: TIF Districts are extremely complicated tax -based financial assistance tools used to support new development. There are several legal and critical financial review steps that are required in establishing a new TIF District. Under the proposed contract, NSI will analyze property value and financing data and prepare a TIF Plan specifically tailored to the proposal and the site. They will also prepare the essential "but - for" findings. In-house staff will support and collaborate with NSI by providing application submittal materials and guidance as to EDA discussion regarding the policy of using TIF for a housing development. EDA: 12/08/21 A2. BUDGET IMPACT: The funds to pay for the proposed NSI contract will come from the $10,000 TIF application fee paid by Headwaters Development. Ultimately, Headwaters will be invoiced for the additional cost of NSI financial services which at this time appear to be an additional $535 plus any legal fees the EDA incurs in the TIF review and approval process. B. ALTERNATIVE ACTIONS: 1. Motion to approve Northland Securities, Inc's. Financial Planning Agreement for services related to creation of an Affordable Housing TIF District. 2. Motion to table consideration of the NSI Financial Planning Agreement for services related to creation of an Affordable Housing TIF District. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The NSI Financial Planning Services Agreement is essential to ensure the EDA stays within the bounds of all required steps and notices when creating a new TIF District. TIF districts have impacts across several taxing jurisdictions. Therefore, it important that staff have the support of consultants such as NSI to perform specialized TIF Plan analytical work and preparation of specific documents that are part of a creating a new TIF District. D. SUPPORTING DATA: a. NSI Financial Planning Services Agreement 2 FINANCIAL PLANNING AGREEMENT BY AND BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND NORTHLAND SECURITIES, INC. TAX INCREMENT FINANCING DISTRICT (HOUSING) This Agreement made and entered into by and between the City of Monticello Economic Development Authority, Minnesota (hereinafter the "EDA") and Northland Securities, Inc., of Minneapolis, Minnesota (hereinafter "NSI"). WITNESSETH WHEREAS, the EDA desires to use the services of NSI for financial planning assistance related the establishment of a new tax increment financing housing district (the "TIF District") to provide financial assistance for the construction of an approximate 168-unit multi -family apartment and 60 twin -home units, together an affordable housing project (the "Project"). WHEREAS, the Project is intended solely for financial planning and NSI is not providing advice on the timing, terms, structure or similar matters related to a specific bond issue. WHEREAS, NSI desires to furnish services to the EDA as hereinafter described. NOW, THEREFORE, it is agreed by and between the parties as follows: SERVICES TO BE PROVIDED BY NSI The scope of work will undertake the process and financial planning to establish the TIF District. Legal services to review the plan for the establishment of the TIF District (the "TIF Plan"), resolutions, and agreements are not provided by NSI and are not subject to this agreement. Any inspection services that may be needed to determine if the project meets the definition of "Substandard Building" as defined by Minnesota Statutes, Section 469.174, subdivision 10, are not provided by NSI and are not subject to this agreement. NSI will provide the following services: 1. Collect data for the TIF District and the Project, including: a. Parcel identification numbers for all parcels within the Development District and the TIF District. b. Estimated market value and tax capacity value for all parcels within the TIF District. c. Current property tax rates for all jurisdictions. d. Map showing project location and parcel boundaries. Agreement (Housing TIF District) Page I 2. Evaluate and advise the EDA on the type of tax increment financing district and provide guidance on statutory finding 4. Collect data about the Project, including: a. Type, size, value, and timing of proposed development. b. Activities and estimated costs (project budget) to be paid by the TIF District. 5. Review basis for findings for establishing TIF District, including: a. Statutory criteria for proposed district. b. Developer justification ("but for") for the use of tax increment. c. Review and analyze Developer construction pro forma and operating pro forma for the Project. d. Prepare memorandum for the EDA presenting the findings. 6. Determine basic understanding of key criteria for the process including: a. Boundaries of Development District and the TIF District. b. Specific development objectives to address in the planning documents beyond the Project, including decertification of an existing tax increment financing district. c. Official newspaper and publication schedule. 7. Obtain any additional data not collected in item #1, including: a. Building permits issued for parcels in the TIF District over the past 18 months. b. Current comprehensive plan. 8. Set and distribute calendar of meetings and key dates. 9. Prepare notice of hearing and comply with statutory requirements for mailing and publication. 10. Assist the EDA's attorney with drafting of the development agreement for the Project. 11. Prepare planning documents including modification of the Development Program for the Development District and Tax Increment Financing Plan for the TIF District. 12. Distribute draft planning documents with letter of explanation and other supporting information to county and school district. 13. Assist with preparation of resolutions authorizing the TIF District and approving the TIF Plan. 14. Prepare and distribute resolution for planning commission findings, if necessary (scope does not include NSI attendance at planning commission meeting). 15. Prepare and distribute packet for public hearing including the TIF Plan and approving resolution. 16. Attend and facilitate the EDA meeting to consider approval of the TIF District and agreement for the Project. Agreement (Housing TIF District) Page 2 16. Attend and facilitate the public hearing and City Council meeting to consider approval of the TIF District. 17. Prepare TIF transcript (electronic document). 18. Submit district for certification by the county. 19. File district with the State of Minnesota. The scope of services includes NSI attendance at two (2) meetings. COMPENSATION The budget for undertaking the tasks in this agreement is an amount not to exceed $10,535. The amount is based on the estimated number of hours required to complete these tasks at an hourly billing rate of $215 per hour plus reimbursable expenses for travel, printing, and mailing. NSI will bill on a monthly basis for actual services performed and reimbursable expenses. The EDA may at its discretion authorize NSI to undertake additional tasks, including meeting attendance, beyond the tasks listed above. Additional planning services will be billed monthly at a rate of $215 per hour. Invoices will detail the work performed, requested compensation for the period and show amounts previously billed. ASSIGNED NSI EMPLOYEE The NSI employee responsible for providing services pursuant to this agreement and for the services performed is Tammy Omdal, Managing Director. SUCCESSORS OR ASSIGNS The terms and provisions of this Agreement are binding upon and inure to the benefit of the EDA and NSI and their successors or assigns. DISCLAIMER In performing service under this agreement, NSI is relying on the accuracy of information provided by the developer for the proposed project and the EDA and the services provided by NSI are based on current State Law. The parties agree that the Minnesota property tax system and other laws may change and may affect the accuracy and validity of services provided by NSI. NSI will perform its work using the best available information. The EDA recognizes and accepts that future property values, tax levies and tax rates may vary from the assumptions used by NSI and such changes may affect the work product produced and provided by NSI. TERM OF THIS AGREEMENT This Agreement may be terminated by thirty (30) days written notice by either the EDA or NSI. In the event of early termination by the EDA, NSI shall provide the EDA with an itemized hourly statement of services already provided. All billable hours by NSI shall be billed at the stated hourly rates should early termination occur. Agreement (Housing TIF District) Page 3 Dated this day of December, 2021. Northland Securities, Inc. By: Tam Omdal Managing Director City of Monticello Economic Development Authority Title Agreement (Housing TIF District) Page 4 EDA: 12/08/21 8. Consideration of Feedback of Potential 2022-2023 EDA Marketing Strategy -Plan Direction (JT) A. REFERENCE AND BACKGROUND: This agenda item is to engage the EDA to review and discuss marketing strategies and direction over the next 24 months. The City received the $500,000 Community Energy Transition (CET) grant award in March 2021 with a budget that included $25,000 for marketing materials -activities. Those dollars are to be assigned to the EDA when the funds are drawn down in the spring of 2022 (the grant dollars are reimbursement based, so the marketing materials - activities will need to be paid for prior to the draw down). The approved 2022 EDA General Fund budget also allocated $10,000 for marketing expenditures as determined by the EDA. In anticipation of the ability and need to use the $25,000 CET grant funding and EDA budget dollars, City staff recently held a conference call with AE2S Communications and recommends that the EDA consider interviewing them to further develop a marketing plan -strategy. AE2S is a Grand Forks, ND, based Engineering and Communications firm. In the realm of marketing and communications, they have worked with the City of Burnsville, MN and Victoria, MN in the Twin Cities metro area as well as numerous communities in northern MN. They also received an award for the "Way Cooler Than You Think" marketing - branding for the campaign for the City of Grand Forks, ND. A PowerPoint presentation they provided to EDAM (Economic Development Association of MN) Conference attendees is attached as well. In staff discussion with AE2S, the following elements were identified as potential plan - strategy items. 1. Employee Recruitment and Retention — Focusing on strong work ethic, excellent quality of life and recreation, location between Twin City and St. Cloud markets 2. Executive Leadership Positions Recruitment — Focusing on strong school district with unique educational opportunities, quality of life and recreation, business community, health care 3. Manufacturer Retention, Recruitment and Attraction - Focusing on Small/Precision Manufacturing retention and recruitment, building off existing businesses and supply chain, geographic location; encouraging and expressing appreciation for those already located and growing in Monticello 4. Redevelopment — Revitalization stories and opportunities for Block 52, Block 34 and Cedar and Palm Street, reinvigorated Broadway EDA: 12/08/21 5. Relationship Building - Focusing on marketing programs to realtors, site selectors and banks utilizing strengths noted above Marketing the City assets and the development opportunities that Monticello can offer existing and prospective businesses is an important goal of the EDA. Actualizing the marketing goal is accomplished via the budget using staff and consultant efforts. A variety of effective marketing activities will also support other EDA goals and objectives as well. Al. STAFF IMPACT: Staff impacts associated with engaging the EDA for feedback of marketing strategies and efforts is part of the normal staff duties. The primary staff commitment to this point consisted of a conference call with AE2S consultants. They are willing to meet with the EDA at the January 12, 2021, meeting or possibly in a workshop (same date) to further discuss marketing strategies and direction. City staff has the view that AE2S has experienced staff, a proven track record and can fulfill the need to create a solid multi -dimensional marketing plan -strategy. A2. BUDGET IMPACT: The expected budgetary impact from developing a marketing plan -strategy could be in the range of approximately $25,000 to $35,000. The bulk of the funding will come through the CET grant. B. ALTERNATIVE ACTIONS: 1. No motion required — informational only C. STAFF RECOMMENDATION: Staff is asking the EDA to engage in the discussion. D. SUPPORTING DATA: a. CET Grant Budget b. AE2 Materials and References 2 IzN31Z/ Vph-�e WCAJ (c) Provide evidence to the State prior to the closeout of the grant th the budgeted activities in Section 4.1(a) below have been completed. (d) Adhere to all other requirements of this grant contract agreement. 2.2 Provisions for Contracts and Sub grants. (a) Contract Provisions The Grantee must include in any contract and sub -grant, in addition to provisions that define a sound and complete agreement, such provisions that require contractors and sub -grantees to comply with applicable state and federal laws. Along with such provisions, the Grantee must require that contractors performing work covered by this grant be in compliance with all applicable OSHA regulations. (b) Ineligible Use of Grant Funds. The dollars awarded under this grant contract agreement are grant funds and shall only be used by Grantee or awarded by Grantee to third parties as grant funds and cannot take the form of a loan under any circumstance. Grantee shall not use, treat, or convert the grant funds into an interest bearing loan, a non -interest bearing loan, a deferred loan, a forgivable deferred loan or any other type of loan. Further, Grantee shall include in any contract or sub -grant awarding the grant funds to a third party all the provisions and requirements of this grant contract agreement, including the requirement that these dollars are grant funds only and cannot be used, treated or converted into any type of loan. (c) Job Listing Agreements. Minn. Stat. § l 16L.66, subd.1, requires a business or private enterprise to list any vacant or new positions with the state workforce center if it receives $200,000 or more a year in grants from the State. If applicable, the business or private enterprise shall list any job vacancy in its personnel complement with MinnesotaWorks.net at www.minnesotaworks.net as soon as it occurs. (d) Payment of Contractors and Subcontractors. The Grantee must ensure that all contractors and subcontractors performing work covered by this grant are paid for their work that is satisfactorily completed. 3 Time The Grantee must comply with all the time requirements described in this grant contract agreement. In the performance of this grant, time is of the essence. 4 Consideration and Payment 4.1 Consideration. State will pay the Grantee under this grant contract agreement as follows: (a) Eligible Costs. The following table represents the total Eligible Costs. Activities Amount Strategic Transition Plan $190,000 Survey of Identified ED/Industrial Sites $50,000 Financing Model $45,000 AUAR and Environmental Studies of Identified ED/Industrial Sites $75,000 Predesi n of Utilities/Roads for Identified ED Sites $100,000 Marketing Materials for New ED Sites and Loo net Subscription Fees $25,000 Legislative and Resource Initiatives $15,000 TOTAL $5009000 2of7 BUILDING A COMMUNITY � nwl:"i z I C Taylor Corbett and Nicole Gaustad AE2S Communications LET'S START WITH THE FACTS WORKFORCE Challenges across the US, but especially locally. M . UAS Needed to hire hundreds for people, including relocation of employees. M STAKEHOLDERS Got together to discuss and develop a strategy. • Goggle q Search Googfe artype a URL Y 14 �% - �z 4 .1 WWI 7 HOW IT STARTED? •jPk • rt � Develop, fund, and implement a sustainable recruitment and retention toolkit • Create a "portal" into Grand Forks used to direct interested recruits WHAT THEY KNEW: • They have a story to tell. • Collaboration is key. • Show how people live. V P M' , - Fl CELEBRATING WHAT MAKES US. US! Show personality and Create opportunities to Don't shy away from the embrace our reality show everyday life weather or location WHERE DO WE START? ❑ PAST DATA I-E ❑ SURVEYS MARKET ANALYSIS FOCUS GROUPS aims{{{ " '�, PEOPLE Grand Forks Air Force Base UND and Northland Technical College 3 P's PERSONALITY • Hardy and resilient • Genuine • Helpful • Connected • Quirky PLACE • Flat • Red River Valley • Big, Small Town • Greenway • All seasons f + fw y ! 1 , do • !! r t ' �• ` +do it 1 r un Wa i � 4r THE PROCESS IIIIIIIIIIIIIIIIIIIII NIIIIIIIIIIIIIII E: 1 2 > 33D 4! Develop Add Color Design Tagline Logo Palette Materials kc � �dCpR��Yy �• — r+�jcrenw.V[ctt Ld.L�S i i1" �� r �lrrr,.li, ,,r .�r•,•,. n71[c7;}+:+6:1r ������d��`s [udm} �r • � � Tate r.xGyk wan x•.ie:e g4estiunS ISew�� we r,A.y 11 {J GRA+vo a ,r FdRKS rive( Am k `4 �,,,r ^ Sorkin dctkor�ce �c�`I tA �YIi1� THE RESULT WAY COOLER THAN YQII THINK GREATER GRAND FORKS SOME C00L FACTS FYENACE lANlWRT SNOIYfILL UINCNES r �" rr w14� WAY COOLER THAN YOU THINK GREATER GRAND FORKS LAUNCH • Toolkit • Social Media • Digital Ads • Articles and News Releases • Community Presentations 1 ! 1 r l YOU THINK We know Grealef Gr arid Forks Is Way ool. but WO rleedod a way to share that iessage with people looking to relocate I people we need to recruit to the area. 'his campaign and all the tools created e far use by any organization locking to owcase the Grearl er Grand Forks area in Your re[rlli[rllent efforts. IYXYf.CANgFCRI(81f CCCIERCCM Q WEBSTTE Pkle fepen ell the cad Ne Greaser Greed EmNs has to onto ana <seaVd a webute thM Past to sMrP'Mti ppp:niWl pmplgpps All yoJ haw le do Is send rhom to 0 [01r SOCIAL MEDIA W.Y. included pots for Face hook. iwrt[er. alb hrslagam that mu can upload Iron your own counts. Lke.7olaw usm ery of rhmevlmro.1 el sgfiwle. end feel free to reshereemrent also rEelk mbk to Vie tie M,=g TAGLHEARTWORK WEBSITE BUTTON ih: [aglow was aonuafty dDW� in tap as simple Want to soar: a idle to Mo wtAWrn v 007 Move as prA9Irw myou can us:l1 wm your :H59ig In[Iudod a Altar you caninclud: on your own inat—Is. wo hs w v : noyrsl:tt:r. AG ARTWORK STYLE GUIDE Whelher you went to ed.erii,e dowt, u in print. Unsure of how to use the conlml provided?Easy. fuss r<e here adrelssemenr a+twaN reedy tow c R the Waded stole Aide. 1 1 I 1 1 1 1 1 1 1 1 44,000 Unique website visits averaging 1:13 6018 Followers on social media 16183 People have used #GFisCooler on Instagram ' rya, i - • �.,�' cs� �� �'� .: .r •�,. �, � • �„�b• -.tom. � 'r"� ��r" eD 151, i4w�'. a � p e*�' �, ,ter •�. - �' , �" iti► O l / hin ��ior ii„n9.>r�yhw 'whora��srwCen� �_ ©©hnr n/nkos �n"erife � Ra ® ® this reran co /ivPhpr r^OOon �M I yf DR/A f SYJIFMS *TA7R4r/pN U Spy/q� ZOpER� W Rs HpfK NFgloN O,gkFORCE ,RUc L'PF p#4 q 4crrrrrES �, � s b � 4pERsyrP FQ�S f�, OKI w LAND OFOPIS AND DREAMS C110LER THAN YOU IH + * FAIF.'IC:.E? LIYIN6 - 5?IARiEN SCII�OLS • gETifR 6PPURZIIrF>iIEB • HEALTHIER PE[1PLf - LYJEL _' FYfxiS • '�.�. � � L ICP I4 TES, DEFENSE COMM-,,i mITIES Its WiRICA ;.°,T ` - kssoc AT m 4F DEFENSE CflV�i�IUNiTIESrq BETTER OPPORTI1MMES I j GREATER GRAND OKS w 4 VIBEB 814RIES React le St Mc t+wetank*' ` WHAT'S COOLER TODAY? CHECK OUT GFlSCOOLER.COM/WHATS-COOLER-TODAY w i �. p�llRi!- •� :.RTIE- �..•�-FaF�]- l i i 1 #GFISCOOLER THE WHY • Identify identity and purpose. • Differentiates your community from its neighbors. • Create a collective feeling, brings people together. • Support your strategic plan(s) as a City. • Provide direction for future experiences. fit . 1 S11RilsY�L STY NCII 1 -Now, KEEP THIS IN MIND SOMETIMES IT'S EASIEST TO SEETHE BEAUTY OF A PLACE WHEN YOU ARE AN OUTSIDER, SEEING IT FOR THE FIRST TIME. - PASTOR DOM]N10uf BIICHHOU. SHARON±UFHERANCNIVER • Authenticity is extremely important. Community must identify with the brand. • Community support is important because they are the "unofficial spokespeople". • Builds confidence and trust in community. START HERE 1. Identify Goals 2. Create Committee {}*.: '- ? '�}• J;} _ , 3. Involve Doers 4. Identify Focus Groups 5. Budget, Budget, Budget 16 kkk -r �w �j 1111Wk5L 'ra4•w.yw FARGO ti�■,wti.r Lfl US KAw w1111 MlR iA 're at &jp-!1,60rs! A G fow'ng Gry E Sci,00�al EDA Agenda: 12/08/21 9. Economic Development Director's Report (JT) A. The EDA attorney has announced that she will be retiring from Kennedy & Graven as a full- time partner with the firm at the end of February 2022. She is seeking to be an Of Counsel associate with the firm beyond that time. As noted in her email, she will be transferring all City of Monticello files to Gina Fioroni, an experienced partner with the firm. Libby Kantner, an associate, will also be assigned to work on Monticello files as well. Please refer to Exhibit A for additional information on this update. B. The EDA will be closing on the purchase of a key property in Block 52 in mid -December 2021. This acquisition consolidates EDA and City owned parcels and provides a meaningful contiguous land area to be planned for redevelopment. The EDA is committed to following the vision in the Small Area Plan that for the downtown that was adopted by the EDA and the City Council in late 2017. The EDA previously entered into a Preliminary Development Agreement with Deephaven Development, LLC, Fargo, ND, to begin exploring and collaborating on a potential mixed -use development featuring residential rental units and new commercial space. The EDA will likely undertake initial redevelopment plan steps in 2022 with the goal of creating a new TIF District and entering into a binding Purchase and Development Contract with the developer as 2022 gets underway. Please refer to Exhibit B for Block 52 land ownership. C. OCBP Stormwater Engineering Work - Shovel Ready Site Certification Steps — Platting Steps Update: Work activities consisting of surveys and environmental studies are continuing. An illustrations of new lot configurations and the extended Dalton Way are attached as Exhibit C. D. Prospect List Update: Please see the updated Prospect List as Exhibit D. Jim Thares From: Ingram, Martha N. <Mingram@Kennedy-Graven.com> Sent: Thursday, December 2, 2021 3:01 PM To: Jim Thares Cc: Fiorini, Gina A.; Angela Schumann; Sarah Rathlisberger Subject: RE: Your Pending Retirement Status Sure, happy to: I will be retiring as a full partner from the firm on January 31, 2022. 1 am currently negotiating an of -counsel agreement with our management that would allow me to continue working on current matters through May 1, 2022. That agreement has not yet been formally approved, but I have no reason to expect that it won't be approved within the next few weeks. As you know, Libby Kantner has been working with me on your files for the last several months (and doing a terrific job!). I have also talked to Gina Fiorini, one of my partners in our department, and she would be delighted to serve as your lead attorney moving forward, with Libby serving as second. Gina is a highly -experienced economic development attorney and bond counsel, and I expect the transition to working with Gina and Libby to be as seamless as possible. I have copied Gina on this email so you have her email address. Her full signature block is copied below. I will be sure to invite Gina to sit in on our next monthly call if she is available, so you can meet each other. Please let me know if you have any questions or concerns about any of this, or would like any further information. It has been a real pleasure to work with you for the past few decades! Martha Gina Fiorini Kennedy & Graven, Chartered 150 South 5th Street, Suite 700 Minneapolis, N1N 55402 Phone: (612) 337-9210 Fax: (612) 337-9310 gfiorini2kennedy-aavT�n. corn Please note that our address has recently changed From: Jim Thares <Jim.Thares@ci.monticello.mn.us> Sent: Thursday, December 2, 2021 2:06 PM To: Ingram, Martha N. <Mingram@Kennedy-Graven.com> Subject: Your Pending Retirement Status Hi Martha, we are wondering if we could get a summary email from you (please only do this task if you have time; not a major problem if you do not!!) regarding your pending retirement situation and how the transition of your workload will be handled and names of the attorneys who will be assigned to the City of Monticello EDA as legal Counsel. Note: If you do not have time, don't worry. I can write up a brief summary based on your statement to us at the November 15, 2021 Conference Call. Thank you considering; either way! j'i'-• 3r-� �: 6`�St ,i I\ 9- .3� 4: I F r it % I �- _ i a.. r r v V. kk • T 4 - I r, Y- r a .. • - '<� ,'; a .' [. K, 4 _ • }. [ - Y F• 4 J II r, a T }� • 4 2 . . . ..+ t.4 ryn� s �' #�,%a Y t'ik� t T : t - ♦� \\ �:':. / • f ,t /ejRj .�` f f, _ • � 9 , ; ' ., ..may_ �,�_�•.. 4. f�" t••4: '��,: � - t. _ k e 2 • a 3 a W T' i Cfl co'- + _ - Lo y - t - ' 2 b • - S ,few I a \ - , ot- `♦♦cp a I �r 1 t F r KEYNOTES: O DELINEATED WETLAND LINE O EXISTING POWER POLE 0 80' RIGHT OF WAY O 45' ROAD (BACK TO BACK) O PROPOSED POND N 0 100 200 H SCALE IN FEET le, CEMPTERY 4. 17 a� ..9 60 { l.` �o A lit lbO 10' , c y yK05 r coall R , F' •'r f v 1' 0 8 WS b � Monticello SCALE: DESIGN BY: PLAN BY: CHECK BY: Z 0 _Ln w W o� W LU "zoo N W p p z a_Oap g�awa w z � }Fz� am<FDT w U D p F W z cr J Q z Q R J az =wzo0 w y~aoNw lL . 2 W ¢ N N �<5;- aw'ow w�a•a= >puiwL x W W LU I U H S _0p7-i3 p J Q O J W W 0 � U z> z W W O Lij of LL � O U Y O UJ < U O 11 -24-21 WSB PROJECT NO. 019102-000 SHEET 1 OF 1 11/17/2016 6/22/2017 10/17/2017 5/22/2018 7/30/2018 8/10/2018 11/29/2018 12/14/2018 3/28/2019 5/9/2019 8/16/2019 9/19/2019 1/20/2020 PROSPECT LIST Company Name Business Category Project Description MN DEED Prospect Metal Mfg. Exist Facility + Equip Project Armstrong- Precision Machining New Facility Constr. + Equip UMC Project #6580 Metal Mfg. New Facility Constr. Project Ted Equipment Mfg. New Equipment Karlsburger Foods Food Products Mfg. Facilty Expansion Project Saturn Plastic Products Mfg. New Construction 12/03/2021 Building -Facility Retained Jobs New Jobs Total Investment Project Status 65,000 sq. ft. 0 55 - $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Construction 70,000 sq. ft. 0 49 $5,480,000 On Hold N/A 45 ? $650,000 Concept Stage 20,000 sq. ft. +/- 42 10 to $4,500,000 Act -Plan -Fin 20 5,000 +/- sq. ft. 4+/- $830,000 Active Search Project Jupiter Metal Mfg. New Construction 5,000 sq. ft. +/- 3 $800,000 Active Search Project Blitzen Precision Machining Exist Bldg or New Const. 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet Commercial Bus New Const. 1,700 sq. ft. +/- 7 $700,000 Active Search Project Nutt Co -Working Space Existing Building ? ? ? ? Concept Stage Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 20+/- $1,400,000 Active Search Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Active Search Project Kata Service New Construction 22,000 to 35,000 sq. a 0 25 $7,900,000 Concept Stage Project Panda v3 Service -Child Care New Construction 10,500 sq. ft. 0 21 $4,100,000 Active Search 3/31/2020 8/27/2020 12/23/2020 11/5/2020 2/16/2021 2/18/2021 2/18/2021 3/19/2021 4/23/2021 6/3/2021 Project GiaSaurus Medical Prod. Mfg. New Construction 175,000 sq. ft. 0 Project Nuss Combo Service -sale New Construction 30,000 sq. ft. 0 Project TO Industrial Existing or New Construction 10,000 to 15,000 sq. 0 ff Project Flower Office Existing 7,000-8,000 sq. ft. 0 Project Cold Industrial -Warehouse -Di New Construction 80,000 sq. ft. 0 stri Project Shay Lounge -Restaurant Existing Bldg. 2,200 0 Project Counsel Office -Service New Construction 5,600 sq. ft. 24 Project Orion Warehouse-Distributi New Construction 832,500 sq. ft. 0 on 75 $50,000,000 Active Search 20 to $3,500,000 Concept Stage 30 5 to 7 $800,000 Concept Stage 12 $750,000 Concept Stage 21 $12,000,000 Concept Stage 4 $150,000 Concept Stage 3 $1,120,000 Concept Stage 500 $125,000,000 Active Search Project Emma Light Ind -Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active Search Project FCW Service New Construction w Redev 4,000 sq. ft. 0 9 $4,619,000 Concept Sta 6/16/2021 Project UBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 6/30/2021 Project Ecosphere Industrial Tech Mfg. New Construction 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search 7/29/2021 Project BA710 Lt Assem-Distribute New Construction 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search 8/12/2021 Project Integrity New Construction 100,000 sq. ft. 0 60 $14,800,000 Active Search Precision Mfg. 10/28/2021 Project Stallion Technology Service New Construction? 30,000 to 40,000 sq. ft. 10 $3,000,000 Active Search