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Planning Commission Agenda - 02/02/2022AGENDA REGULAR MEETING - MONTICELLO PLANNING COMMISSION Wednesday, February 2, 2022 - 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Paul Konsor, Andrew Tapper, Alison Zimpfer, Eric Hagen and Teri Lehner Council Liaison: Charlotte Gabler Staff: Angela Schumann, Steve Grittman (NAC), Hayden Stensgard, and Ron Hackenmueller 1. General Business A. Call to Order B. Consideration of approving minutes a. Joint Workshop Minutes —January 4, 2021 b. Regular Meeting Minutes —January 4, 2021 C. Citizen Comments D. Consideration of adding items to the agenda E. Consideration to approve agenda 2. Public Hearing A. Public Hearing — Consideration of a Conditional Use Permit for Cross Easement for Parking in the Central Community District (CCD) Applicant: Bill & Penny Burt B. Public Hearing — Consideration of adopting 2022 City of Monticello Official Zoning Map 3. Regular Agenda A. Introduction of Fire Marshal Dan Klein & Fire Inspection Program Overview B. Consideration of Adopting Resolution PC-2022-05 and Resolution PC-2022-06, a Resolution Finding that the Establishment of TIF Districts 1-42 and 1-43 and the Proposed Conveyance of Certain Land by the City of Monticello Economic Development Authority are Consistent with the City of Monticello Comprehensive Plan (Monticello 2040 Vision + Plan) C. Consideration of adoption of the 2022-2025 Planning Commission Workplan D. Consideration of the Community Development Director's Report 4. Added Items 5. Adjournment AGENDA SPECIAL MEETING - MONTICELLO PLANNING COMMISSION Tuesday, January 4th, 2022 — 4:30 p.m. Mississippi Room, Monticello Community Center City Council Members Present: Mayor Lloyd Hilgart, Charlotte Gabler, Jim Davidson, Sam Murdoff, Bill Fair Planning Commissioners Present: Paul Konsor, Andrew Tapper, Eric Hagen Planning Commissioners Absent: Staff Present: 1. General Business A. Call to Order Alison Zimpfer, Terri Lehner Angela Schumann, Steve Grittman (NAC), Rachel Leonard, Ron Hackenmueller, Hayden Stensgard Mayor Lloyd Hilgart called the special meeting of the Monticello City Council and Planning Commission to order at 4:33. 2. Joint Meeting Agenda A. Concept Stage Planned Unit Development Proposal for a 180-unit Single -Family Residential Development Proposer: Tamarack Land Development Community Development Director Angela Schumann emphasized that this was a concept review meeting aimed at providing helpful feedback to the developers that presented the concept. Notices were sent out for this meeting to the surrounding area of where the development is proposed. Ms. Schumann noted that the meeting did not involve a public hearing, but if time allows, residents present may address the group. City Planner Steve Grittman provided an overview of the meeting format and continued with an overview of the agenda item 2A. The project is proposed on roughly 62 acres of land between 2 abutting parcels South of Cardinal Hills in the Monticello Orderly Annexation Area (MOAA). There are two different types of houses proposed, roughly 125 two-story single-family homes on 65-foot lots and roughly 55 single-family homes on 45-foot lots. The net density of the project is about 4 units per acre. This level of density is consistent with the comprehensive plan. The site plan of the project shows connection points to existing neighborhoods to the north, connecting to Tanager Circle and Pelican Lane. The project also provides the opportunity for connection points at the South end of the development to connect future development. Mr. Grittman said that due to smaller than average lot sizes in this concept, streetscape and landscape design will play a big role in the layout of the neighborhood. Councilmember Charlotte Gabler asked if there was a buffer of some sort between the abutting backyards in the middle blocks of the development. Jim Osterberg, of Tamarack Land Development, said that would be under the discretion of the builder. Staff noted this as a recommendation for plans. Ms. Gabler asked if it was possible to include a park inside the development. Clay Montgomery, Developer, said that adjustments like that can be made if necessary. Councilmember Bill Fair asked the developers who they see as their primary market for these homes. Mr. Osterberg said that the 45-foot villas can be considered great starter homes, based on price point and size of the home itself. The 65-foot lot homes would be potentially for younger families looking to grow into the home. Mr. Fair also asked if there were to be any rules regarding accessory uses/structures on the property. Ms. Schumann noted that things like accessory uses in the neighborhood can be written into the PUD language, or it can be described within the scope of a homeowner's association etc. Mr. Fair asked the developers if they were comfortable with including higher standards to landscape design, if this were to be a PUD. Mr. Osterberg said it is not uncommon for things like that to be included in development guidelines. Planning Commission Chair Paul Konsor noted that having a pathway between homes can be confusing to members of the community, whether that path is public or private. Mr. Osterberg said there can be signage added to the pathways to help with that confusion. Staff noted that landscaping along pathway sides can also serve as a buffer. Mayor Lloyd Hilgart asked if there were only two lot sizes proposed in the concept. Mr. Grittman said that widthwise, there are two sizes proposed, the lengths of the lots get larger when part of the cul-de-sacs. Councilmember Sam Murdoff asked if there are sidewalks planned to be a part of the area. Ms. Schumann confirmed and noted that it is required to have sidewalk on at least one side of the road. Mr. Fair asked about the annexation process and how far along the developers were with it. Mr. Montgomery said that the plan is to run the annexation process at the same time as the land use process. Ms. Schumann explained that the annexation petition by the property owner is needed before the developers submit any land use applications. This helps assure that the city is ready to service the area with utilities by the time the development is approved at the council level for final plat. Mr. Grittman noted that staff has requested the developers to ghost plat the remaining 5 acres of land on the property, to better understand where the utility stubs need to be when it comes time to serve that portion of the property. Andrew Tapper asked about the status of 85t" Street, to the south of the property. Ms. Schumann said it is a line road and to a certain point, the City is required to service. Mr. Murdoff asked if the 65 foot lots are a typical size. Mr. Grittman said that it really depends on any given builder's models of homes. It is continuing to become more common. Mr. Murdoff followed by asking if it is necessary to compare this potential PUD to the R-1 or R-2 zoning standards. Mr. Grittman said that the comparison is mainly for a frame of reference. Mr. Fair asked if there are multiple floor plans for both sizes of lots. Mr. Osterberg said that the villa -style homes have 3 different exterior looks and are slab on grade, but the floor plans do not change very much. Mr. Konsor asked the developers if they have used the villa -style homes before in prior developments. Mr. Osterberg confirmed. The consensus among Council and Commission was that an HOA should be required for the villas. Councilmember Jim Davidson said that he would support staffs' direction on the standards of the pathways, landscaping and streetscape as this project continues. Mayor Hilgart emphasized the importance of adding two-story homes to the dynamic of Monticello's housing opportunity. The 15% brick and stone requirement was also noted. Planning Commissioner Hagen asked if the villas can be considered affordable. Mr. Osterberg confirmed and noted that they might be more expensive currently, due to the housing market and average price points of similar homes in the area. Mr. Hagen also noted the performance standards on the front of the homes, and looks to see that in the PUD language. Mayor Hilgart opened the floor to the public. Public Comment Jon Bauman, resident on 85t" Street, asked about how fencing the neighborhood will be dealt with. Three sides of his property would abut the development and he is concerned about screening standards. Councilmember Gabler noted there are standards indicated in the Code regarding fencing. Ms. Schumann added to that, noting certain fencing may require review and approval of the Monticello Building Department. Standards can also be addressed via the PUD. Public Comment James Quast and Lisa Saturley, of Cardinal Hills, expressed concerns of the new neighborhood resident needing to drive through Cardinal Hills to get to School Boulevard and worried about the amount of traffic that will be added to the neighborhood. They also asked if a street assessment will be necessary for this project. Mr. Grittman noted that the streets will be built by the developers so no assessment will be needed. Public Comment Sandra Hindermann-Hennessey of Cardinal Hills expressed concerns about the stormwater ponds to the North of where this development is proposed and if they will be able to maintain the added amount of water and prevent damage to nearby homes. Public Comment Loren O'Brien, abutting land owner asked that the utility services will be built to continue developing to the East of the concept area. Mr. Grittman confirmed. Mr. O'Brien asked about the capacity of the utility lines to the northeast of the concept area. Ms. Schumann noted that there was not an engineer present at the meeting to answer that question, but the question was noted will be addressed. Public Comment Sandra Hindermann-Hennessey asked how the City will be able to prevent vandalism on the properties near the pathways in the area. Mr. Fair believed that added signage on the pathways should help with that. 3. Adjournment Meeting was adjourned at 6:02 p.m. January 4, 2022 MINUTES REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday, January 4th, 2022 - 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: Paul Konsor, Andrew Tapper, Alison Zimpfer, and Eric Hagen Commissioners Absent: Teri Lehner Council Liaison Present: Charlotte Gabler Staff Present: Angela Schumann, Steve Grittman (NAC), Hayden Stensgard, and Ron Hackenmueller 1. General Business A. Call to Order Chairperson Paul Konsor called the regular meeting of the Monticello Planning Commission to order at 6:09 p.m. B. Consideration of approving minutes a. Regular Meeting Minutes — December 3, 2021 ERIC HAGEN MOVED TO APPROVE THE DECEMBER 3, 2021, REGULAR MEETING MINUTES OF THE MONTICELLO PLANNING COMMISSION. ANDREW TAPPER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 4-0. C. Citizen Comments None D. Consideration of adding items to the agenda None E. Consideration to approve agenda ANDREW TAPPER MOVED TO APPROVE THE AGENDA FOR THE JANUARY 4, 2022, PLANNING COMMISSION REGULAR MEETING. ERIC HAGEN SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 4-0. 2. Public Hearing A. Public Hearing — Consideration of a Conditional Use Permit for Cross Access and Preliminary and Final Plat of Deephaven 3rd Addition in the B-4 Regional Business District. Applicant: Deephaven Development, LLC City Planner Steve Grittman provided an overview of public hearing item. The property is bordered by Chelsea Road to the North, and Cedar Street to the West and is the northern -most part of the Pointes at Cedar Small Area Plan. The applicants are looking to plat the remaining outlot of this property for commercial space. The Southwest section of the parcel has already been 113 January 4, 2022 platted and has a commercial office building being built. The applicants are also the developers of the apartment buildings being constructed directly South of this parcel. There are no specific developments for these four proposed plats, but the intent is to seek development following the platting of the parcels. Mr. Grittman noted there are some access difficulties to this property. One access to this parcel will be shared with residential apartment building adjacent to these parcels. The lots along Cedar will also propose shared access. As developments begin to express interest in these plats, it will not be surprising if the proposed lot lines shift a bit. The outlot to the Northwest was retained for a future public plaza and will provide signage for The Pointes at Cedar project. Paul Konsor asked if the access to all of these parcels will be through the shared access on Edmonson Avenue, or if there will be access from Chelsea Road. Mr. Grittman said that at the moment it is unclear where all the access to this plat will be. Part of it will depend on uses of the properties as well as the layout of the developments. Councilmember Charlotte Gabler asked if the outlot that is intended to be a public plaza, will be part of the Pointes at Cedar zoning district. Mr. Grittman said that the plaza is part of the public improvements for the Pointes at Cedar and also within the scope of service WSB is doing at the moment. Andrew Tapper asked if these plans for the plats leave enough right of way near the intersections for future road expansions in that area. Community Development Director Angela Schumann said that question will be discussed with engineering. Ms. Schumann recommended to the Planning Commission to add a condition of approval in exhibit Z, referencing the City Engineer's comment letter and adding confirmation of review of right of way for future intersection improvements. Mr. Konsor opened the public hearing portion of the agenda item and hearing none, closed the public hearing. ANDREW TAPPER MOVED ADOPT RESOLUTION NO. PC 2022-001, RECOMMENDING APPROVAL OF A PRELIMINARY PLAT OF DEEPHAVEN 3, BASED ON THE FINDINGS IN SAID RESOLUTION AND SUBJECT TO THE CONDITIONS IN EXHIBIT Z WITH THE ADDED CONDITION OF CONFIRMING REVIEW OF RIGHT OF WAY ACCESS OF THIS PRELIMINARY PLAT FOR FUTURE INTERSECTIONS. PAUL KONSOR SECONDED THE MOTION, MOTION CARRIED UNANIMOUSLY, 4-0. ANDREW TAPPER MOVED TO ADOPT RESOLUTION NO. PC 2022-002, RECOMMENDING APPROVAL OF A CONDITIONAL USE PERMIT FOR CROSS ACCESS FOR DEEPHAVEN 3, BASED ON THE FINDINGS IN SAID RESOLUTION AND SUBJECT TO THE CONDITIONS IN EXHIBIT Z. PAUL KONSOR SECONDED 213 January 4, 2022 THE MOTION. MOTION CARRIED UNANIMOUSLY, 4-0. 3. Regular Agenda A. Introduction of Fire Marshal Dan Klein Item was removed from the agenda and will be brought back to the planning commission at the next meeting. B. Consideration of the Community Development Director's Report Community Development Director Angela Schumann provided an overview of the Community Development Director's Report. Ms. Schumann noted the Planning Commission's recent recommendation had been approved by City Council, such as the Runnings Supply building expansion, and the preliminary plat of the Twin Pines Apartment complex. The Council also approved the final plat of the Monticello Lakes project, 2 100-unit apartment buildings on the Southeast section of The Pointes at Cedar. Ms. Schumann noted that the next regular scheduled meeting of the Planning Commission is supposed to be February 1, 2022. Due to February 1st being a caucus day, meetings are not able to be held after 6:00 p.m. The next regular scheduled meeting of the Planning Commission will be held on Wednesday, February 2, 202Z at 6:00 p.m. Ms. Schumann continued into discussing the Planning Commission's workplan and noted that it has changed from a one-year plan to a five-year plan. It was requested that the Planning Commissioners find time to provide feedback on the workplan prior to the next meeting. 4. Added Items None 5. Adjournment ANDREW TAPPER MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO PLANNING COMMISSION. PAUL KONSOR SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 4-0. MEETING ADJOURNED AT 6:37. 313 Planning Commission Agenda — 02/02/2022 2A. Public Hearing — Consideration of a Conditional Use Permit for Cross Easement for Parking in the Central Community District. Applicant: Bill & Penny Burt Prepared by: Northwest Associated Meeting Date: Council Date (pending Consultants (NAC) Commission action): 02/02/2022 02/28/2022 Additional Analysis by: Community Development Director, Chief Building and Zoning Official, Community & Economic Development Coordinator, Project Engineer, Fire Marshal ALTERNATIVE ACTIONS 1. Motion to adopt Resolution No. PC 2022-03 recommending a Conditional Use Permit for Joint/Cross-Parking for PIDS 155-010-032020 (Schlenner Wenner) and 155-010-035040 (Rustech), based on findings in said resolution, and with the Conditions identified in Exhibit Z of this report. 2. Motion to deny the adoption of Resolution No. PC 2022-03 recommending a Conditional Use Permit for Joint/Cross-Parking for PIDS 155-010-032020 (Schlenner Wenner) and 155-010-035040 (Rustech), based on findings to be identified by the Commission following the public hearing. 3. Motion to table action on Resolution No. 2022-03, subject to submission of additional materials from the applicant or staff. REFERENCE AND BACKGROUND Property: Legal Description: Portions of Lots 4 &5, Block 35, Original Plat Monticello PID: 155-010-035040 and 155-010-032020 Planning Case Number: 2022-004 Request(s): Conditional Use Permit for Joint/Cross-Parking Deadline for Decision: March 13, 2022 (60-day deadline) May 12, 2022 (120-day deadline) Land Use Designation: Downtown Mixed Use Zoning Designation: CCD, Central Community District 1 Planning Commission Agenda — 02/02/2022 Overlays/Environmental Regulations Applicable: Current Site Uses: NA Production Brewery/Taproom and Professional Office Surrounding Land Uses: North East: South West: Project Description ANALYSIS: CCD — Commercial Buildings CCD — Commercial Buildings (Hwy 25) CCD — Commercial Buildings (3rd Street) CCD — Public Parking The applicant proposes to expand the current Brewery/Taproom facility into the adjoining commercial space of the existing building. By doing so, parking will need to be provided for the use, but is unavailable on the current site. The applicant proposes to utilize an existing private commercial parking lot south/southwest of the site (across 3rd Street) to meet that requirement. A Conditional Use Permit is necessary for this arrangement, which also requires a formal agreement between the applicant and the neighboring property owner of the parking lot. The proposed use is the expansion of a "Production Brewery/Taproom", defined as a facility that manufactures, processes and warehouses beer for wholesale distribution in off -sale packages to retail liquor establishments and may retail beer product for on -site consumption in a taproom for off -site consumption as growlers. Production Brewery/Taprooms are a permitted use in the CCD zoning district. The applicants are seeking a Conditional Use Permit to accommodate off -site shared parking for the expansion of their facility, adding 2,000 gross square feet to the current 2,000 square foot use. About 650 square feet of this will be additional table/bar seating area, and the remainder will be cooler, restroom, office, gaming, music stage, and corridor space. For 650 square feet of bar or restaurant floor space, the zoning ordinance applies a parking standard of one space per 40 square feet of floor area, a total requirement of 16 spaces. In addition, storage and office uses as shown will each add one space to the new demand. Applying the retail requirement (1 space per 200 square feet to the gaming/open areas and the stage portion of the layout), an additional 4 spaces are added, based on capacity. 2 Planning Commission Agenda — 02/02/2022 In total, based on the arrangements of uses in the expansion area, the project will have the effect of increasing the required parking for the facility by a total of 22 additional parking spaces. The applicants had previously worked with the City to provide parking for the original 2,000 square foot facility through a combination of revised on -site parking, overflow parking on the adjoining City parking lot, and payment into the City's downtown parking fund for remaining shortage. Because the applicants had agreed to accommodate public parking on their property as allowed by the zoning ordinance, their net parking demand requirement was reduced to 60% of the original code calculation. At the time of the prior CUP, the on -site parking, combined with the local public parking and the parking fund payment was calculated to meet the requirement. That parking total was 11 spaces on -site, plus three additional spaces paid for into the parking fund. As such, the applicant has accounted for 14 spaces of their demand. It is noted that four of the on -site spaces are currently occupied by outdoor seating. The applicants will be providing some new parking on the site, but by expanding the patio areas on the property, there is no net gain of spaces overall. With this, the additional 22 spaces must be provided as a condition of expansion approval. However, because the applicants have provided the public cross -easement, their actual increased parking supply (60% of code) is 13 new spaces. The CUP requested by the applicants would be processed as a joint parking agreement with the "Schlenner-Wenner" property across 3rd Street from the Rustech facility. Schlenner-Wenner has 57 current parking spaces on site. The zoning ordinance provides forjoint parking by CUP under the following provisions: (3) Joint Facilities for Commercial, Industrial & Civic/Institutional Uses: The City Council may, after receiving a report and recommendation from the Planning Commission, approve a conditional use permit for one (1) or more businesses to provide the required off-street parking facilities by joint use of one (1) or more sites where the total number of spaces provided are less than the sum of the total required for each business should they provide them separately. When considering a request for such a permit, the Planning Commission shall not recommend that such permit be granted nor the Council approve such a permit except when the following conditions are found to exist: (a) Up to fifty (50) percent of the parking facilities required for a theatre, bowling alley, dance hall, bar, or restaurant may be supplied by the off-street parking facilities provided by types of uses specified as a primarily daytime use in subparagraph (d) below. Planning Commission Agenda — 02/02/2022 Staff comment: The proposal meets the 50% threshold. The applicants have accounted for 14 spaces attributable to their site (through provided parking, public parking easement and parking fund payments), and are seeking to add a demand of 13 new spaces off site, 17 is counting the spaces currently utilized by outdoor seating. The proposed location can supply more than 40 easily accessible spaces, far beyond the calculation. As noted, the proposed use is a brewery taproom, with its primary hours being weekend and evening use. The proposed site is comprised almost exclusively of office space where usage is weekday activity. (b) Up to fifty (50) percent of the off-street parking facilities required for any use specified under (d) below as primary daytime uses may be supplied by the parking facilities provided by the following nighttime or Sunday uses: Auditoriums incidental to a public or parochial school, churches, bowling alleys, dance halls, theatres, bars, or restaurants. NA (c) Up to eighty (80) percent of the parking facilities required by Section 4.8 for a church or for an auditorium incidental to a public or parochial school may be supplied by off-street parking facilities provided by uses specified under (d) below as primarily daytime uses. NA (d) For the purpose of this section, the following uses are considered as primarily daytime uses: Banks, business offices, retail stores, personal service shops, household equipment or furniture shops, clothing or shoe repair or service shops, manufacturing, wholesale, and similar uses. (e) Conditions required forjoint use: (i) The building or use for which application is being made to utilize the off-street parking facilities provided by another building or use shall be located within three hundred (300) feet of such parking facilities with the following exception: For theatres located in the Original Plat of Monticello, theatre parking provided by another use shall be located within five hundred (500) feet of said theatre. Staff Comment: 41 spaces in the "Schlenner-Wenner" parking lot are within 300 feet of Rustech's main entrance. (ii) The applicant shall show that there is no substantial conflict in the principal operating hours of the two (2) buildings or uses for which joint use of off-street parking facilities is proposed. Staff Comment: The applicant has provided hours of operation primarily weekend and weekday evening hours; along with typical 4 Planning Commission Agenda — 02/02/2022 business hours of operation of the off -site parking area which are weekday hours. No conflict is foreseen. (iii) A properly drawn legal instrument executed by the parties concerned for joint use of off-street parking facilities, duly approved as to form and manner of execution by the City Attorney, shall be filed with the City Administrator and recorded with the County Recorder, Wright County. Staff Comment: This document will be a condition of approval, requiring City review and approval to record with the Conditional Use Permit. The uses match the requirements of this ordinance. The proposed site providing the overflow "joint" parking is almost exclusively a day -use office facility. The applicant has provided operating hours of the current tenants to confirm consistency with the intent of this section. The lot area is more than adequate to meet the requirements of the applicant's need and is within the prescribed proximity per the Ordinance. The City Engineer and Chief Building Official have noted a recommendation for additional accessible stall space and configuration. As a condition of approval, the applicant will be required to meet accessibility standards. Staff believes that the shared parking proposed by this application is directly within the intent of the Zoning Ordinance and the Downtown Monticello Small Area Plan, which envisions minimizing the amount of areas required for vehicle parking, while ensuring that adequate space is available to promote business success through cross -parking arrangements. With the 2018 amendments to the zoning ordinance for the CCD adopted following the adoption of the Downtown Small Area Plan, Production Breweries w/Taprooms, as well as Brew Pubs, became permitted uses in throughout the CCD. Therefore, no amendment to the original CUP is required, as such uses are now permitted. However, the applicant will be required to verify that they meet all liquor license requirements including those outlined per the zoning ordinance standards. It is noted that there is a conflict between the introductory language for the use standards in Chapter 5.2 that will need to be addressed during recodification to match the allowances identified in the use table. STAFF RECOMMENDED ACTION Staff recommends approval (Alternative 1) of the Conditional Use Permit for joint parking as proposed by this application. The use, and the demands of the off -site parking location, meet the technical requirements and policy objectives of the zoning ordinance and the City's 5 Planning Commission Agenda — 02/02/2022 Comprehensive Plan. The Conditions in Exhibit Z (attached) related to final verification of the building layout and the controlling recordable documents. SUPPORTING DATA A. Resolution PC-2022-03 B. Aerial Site Image C. Applicant Narrative and Site Layout D. Hours of Operation Information Z. Conditions of Approval EXHIBIT Z Conditions of Approval Joint Parking for PIDS 155-010-032020 (Schlenner Wenner) and 155-010-035040 (Rustech) 1. Building Permit reviews verify layout and use of the expansion area to substantially meet that of the application. 2. Applicant verifies compliance with the requirements of the Brewery/Taproom limits for production and. 3. The applicant meets the accessible parking space requirements. 4. The applicant and the owner of the subject parking lot execute and record an acceptable instrument providing for the applicant's right to use the subject property for parking, and the terms thereof. 5. Other conditions recommended by Staff or Planning Commission. 0 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC 2022-03 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MONTICELLO RECOMMENDING APPROVAL OF A CONDITIONAL USE PERMIT FOR JOINT/SHARED PARKING FOR RUSTECH BREWERY AS FOLLOWS: PARCEL ID 155-010-032020 (JOINT PARKING AREA) PARCEL ID 155-010-035040 (BUSINESS LOCATION) WHEREAS, Rustech Brewery has requested approval of an expansion of its existing brewery taproom facility, with parking to be supplied on a nearby commercial parcel; and WHEREAS, the joint parking site has adequate areas for parking to accommodate both existing and anticipated parking demand; and WHEREAS, the joint parking between the subject properties is required to facilitate adequate shared parking arrangements between the two uses; and WHEREAS, the joint parking facilitates joint and shared parking uses between the commercial uses in the development area; and WHEREAS, the joint parking meets the requirements of the City's zoning ordinance and the policies of the City's Comprehensive Plan for the downtown area in which it is located; and WHEREAS, the Planning Commission has reviewed the application for Conditional Use Permit pursuant to the regulations of the Monticello Zoning Ordinance; and WHEREAS, the Planning Commission held a public hearing on February 2, 2022 on the application and the applicant and members of the public were provided the opportunity to present information to the Planning Commission; and WHEREAS, the Planning Commission has considered all of the comments and the staff report, which are incorporated by reference into the resolution the following Findings of Fact in relation to the recommendation of approval: 1. The proposed uses are consistent with the intent and purpose of the CCD zoning district applying to the two parcels. 2. The proposed uses are consistent with the existing and future land uses in the area in which they are located. 3. The impacts of the improvements are those anticipated by the existing and future land uses and are addressed through standard review and ordinances as adopted. 4. The proposed shared parking meets the intent and requirements of the applicable zoning regulations, pursuant to the conditions attached to the Conditional Use Permit. 5. The proposed joint parking is not anticipated to negatively impact surrounding commercial properties, and instead may encourage future commercial development in the downtown area. 6. Approval of the CUP for joint parking will not result in the need for additional road or utility infrastructure and should not otherwise negatively impact the health or safety of the community. 7. Parking will be adequate based on the available and future off-street parking on the subject properties, and enhanced by the shared parking allowances. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of Monticello, Minnesota recommends to the City Council that the proposed Conditional Use Permit be approved, subject to the conditions of Exhibit Z of the staff report, as follows: I . Building Permit reviews verify layout and use of the expansion area to substantially meet that of the application. 2. Applicant verifies compliance with the requirements of the Brewery/Taproom limits for production and distribution (or a separate Conditional Use Permit for the use is sought). 3. The applicant and the owner of the subject parking lot execute and record an acceptable instrument providing for the applicant's right to use the subject property for parking, and the terms thereof. 4. Other conditions recommended by Staff or Planning Commission. ADOPTED this 2nd day of February, 2022 by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING COMMISSION 51 ATTEST: Paul Konsor, Chair Angela Schumann, Community Development Director c J 1 • � � iiPP 1 Ir 1 1 . 1 Narrative for Parking RUSTECH BREWING COMPANY LLC 105 W 3rd ST Monticello MN 55362 PARKING 12-28-2021 Bill and Penny Burt Introduction This narrative is to serve as information related to conditional use permit application for cross - parking. Summary Rustech Brewing Company bring patrons a warm and inviting experience for the local residents, tourists, and visitors, while contributing to the economic growth of the Monticello Community. Rustech Brewing is in need of additional seating because we are turning customers away on the weekends because of insufficient seating. • Rustech Brewing Company is looking to use additional parking at Schlenner Wenner & Co parking lot at busy times. • Cory Ritter at Schlenner Wenner & Co has already agreed for us to use the parking lot since when we are open, they are all closed. The Application has been signed by Cory. • Our location is now 4000 SQ FT 40' by 100' (Previously was 2000 SQ FT, 40' by 50'). • We will move the additional handicap spot to the left if needed. • Operations include the manufacturing of malt liquor, daily operations, and direct sales through the taproom. Customer seating currently holds 49 customers. With the new taproom the seating will add additional 49 seats. Rustech Hours of Operation Monday: Closed Tuesday: 4:00pm - 9:00pm Wednesday: 4:00pm - 9:00pm Thursday: 4:00pm - 10:00pm Friday: 3:00pm - 10:00pm Page 1 1 Saturday: 12:OOpm - 10:OOpm Sunday: 12:OOam-6:OOpm Number of Employees • 2 full time employees and 14 part time employees. Rnthrnnmc- • (Existing) One Men's bathroom at the brewery with (1) Sink and (1) toilet. • (Existing) One Woman's bathroom at the brewery with (1) Sink and (1) toilet. • (NEW) One Universal bathroom at the expansion taproom with (1) Sink and (1) toilet. Number of parking stalls at Rustech Kustecn Aerial Image Page 1 2 U 1 2 3 4 5 6 7 0 0 11 total Rustech Parking spots. 7 - Parking places south side of building. 3 — three spots lost and paid into the parking fund. 4 - Spaces west of building. Under patio because of Covid Number of parking stalls at Schlenner Wenner & Co 57 total parking spots • Schlenner Wenner & Co — 5210 square feet — office • Foster White — 5056 square feet — office • AOMS — 2748 square feet — medical • Edward Jones — 1307 square feet - office ' Schlenner Wenner & Co. Aerial Image cmaim Mcityd Mef lallo Page 13 Existing Brewery No changes to exsisting brewery other than a (% wall hallway) to the new taproom. Sac Determination for the new side of Brewery i� - --------------- ■;IE N ■IG■ Page 15 � • o RIM URN 6 c >>> Expansion »»» New L i Bathroom gesi Fr � ]O Sq Ft`�,ll 11 {I �y Hauwaynt (� � Sq Ft � Walk in Cooler Manufacturing 22' by 23' Sq Ft 506 Sq Ft �\ Hallway rt2 \ 11a Sq Ft ■ Y ■o■ ■O■ ■�■ M n l•a� Brewhall low . 1057 Sq Ft ■ ■ a If .:■ ■�■ M11 M Brewery Office Taproom 1057 48 Manufacturing 506 Hallway #1 70 Hallway #2 110 Bathroom 70 1813 48 RUSTECH BREWING COMPANY LLC 105 W 3rd ST Monticello MN 55362 CROSS BUSINESS PARKING HOURS 1-13-2022 Schlenner Wenner & Co — 5210 square feet — office Business Hours: Monday — Friday 8:00 AM — 6 PM Saturday 8:00 AM — 12:00 PM Sunday - Closed Foster White — 5056 square feet — office Business Hours: Monday — Friday 8:30 AM — 5 PM Saturday Closed Sunday - Closed AOMS — 2748 square feet — medical Business Hours: Monday — 7:30 AM — 5 PM Tuesday — 7:30 AM — 5 PM Wednesday — 7:30 AM — 5 PM Thursday — 7:30 AM — 5 PM Friday — 7:00 AM — 1 PM Saturday Closed Sunday - Closed Edward Jones — 1307 square feet — office Business Hours: Monday — Friday 8:00 AM — 4:30 PM Saturday Closed Sunday - Closed Rustech Brewing Company — 4000 square feet — Brewery Business Hours: Monday — Closed Tuesday — 4 PM — 9 PM Wednesday — 4 PM — 9 PM Thursday — 4 PM — 9 PM Friday — 3 PM — 9 PM Saturday 12 PM — 10 PM Sunday - 12 PM — 6 PM Planning Commission Agenda: 02/02/22 2113. Public Hearing — Consideration to adopt Resolution PC-2022-04 recommendation adoption of the 2022 City of Monticello Official Zoning Map Prepared by: Northwest Associated Meeting Date: Council Date (pending Consultants (NAC) 02/02/2022 Commission action): 02/28/2022 Additional Analysis by: Community Development Director, Chief Building and Zoning Official, Community & Economic Development Coordinator ALTERNATIVE ACTIONS 1. Motion to adopt Resolution No. PC-2022-04 recommending the adoption of Ordinance No. 8XX for the 2022 City of Monticello Official Zoning Map, including Shoreland/MWSRR/Flood plain companion map, based on the findings in said resolution. 2. Motion of other. REFERENCE AND BACKGROUND The Planning Commission is asked to review the proposed City of Monticello 2022 Official Zoning Map and consider recommending the map for adoption by the City Council. The map included for review reflects rezoning actions which have occurred since the adoption of the last official map in January 2021. The map proposed includes those rezoning amendments adopted in 2021, as follows: Ordinance 754 — Nuss Truck & Equipment PUD Ordinance 759 - Rezoning Haven Ridge 2nd Addition to R-1 Ordinance 760 — Nuss Truck & Equipment PUD Amendment Ordinance 761 - Storage Link Monticello PUD Ordinance 763 — Stony Brook Village PUD Ordinance 764 - Shoreland Overlay District (correction to boundary) Ordinance 767— Monticello Lakes PUD In recommending adoption of the Official Zoning Map, the Planning Commission will also recommend adoption of the Shoreland Overlay District/MWSRR/Flood plain Overlay District map, the boundaries for which are in accordance with requirements of both State Statute and the Zoning Ordinance. This map was recently corrected in October of 2021, with the ordinance number noted above. The map attached for adoption is the same as that adopted by the City with the corrective amendment in October 2021. Planning Commission Agenda: 02/02/22 STAFF RECOMMENDATION Staff recommends adoption of the 2022 Official Zoning Map. The updated map is reflective of the map amendment actions taken by the City over the prior year. SUPPORTING DATA A. Resolution PC-2022-04 B. Ordinance 8XX, Draft —Adoption of Official Zoning Map C. 2022 Proposed Official Zoning Map D. 2022 Shoreland — MWSRR — Floodplain Map E. Ordinances for Rezoning, 2021 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC-2022-04 RECOMMENDING THAT THE CITY COUNCIL ADOPT AN AMENDMENT TO THE ZONING MAP IN ITS ENTIRETY WHEREAS, the Zoning Map of the City of Monticello requires amendment; and WHEREAS, the proposed map accommodates and furthers the intentions and policies of the Comprehensive Plan; and WHEREAS, the proposed zoning is consistent with the intent of the City's Comprehensive land use plan; and WHEREAS, the Planning Commission of the City of Monticello finds that the proposed zoning map will be consistent with the intent of the proposed zoning districts; and WHEREAS, the Planning Commission has conducted a public hearing on February 2°d, 2022 to review the requests and receive public comment on the zoning map amendment; and WHEREAS, the Planning Commission finds that the proposed zoning map has met the requirements for adoption as found in the zoning ordinance and state law; NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of Monticello, Minnesota: The Planning Commission recommends that the City Council adopt the zoning map amendment to be identified as Ordinance No. 8 ADOPTED this 2nd day of February, 2022 by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING COMMISSION Paul Konsor, Chair ATTEST: Angela Schumann, Community Development Director ORDINANCE NO.8XX CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING AND ADOPTING THE 2021 OFFICIAL ZONING MAP FOR THE CITY OF MONTICELLO THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. The zoning map amendments attached hereto and incorporated herein as Exhibit "A" are adopted as the Official Zoning Map under Title 10, Section 3.1 of the Zoning Ordinance for the City of Monticello. Section 2. This Ordinance shall take effect and be in full force from and after its passage and publication. Revisions will be made online after adoption by Council. Copies of the complete Zoning Ordinance are available online and at Monticello City Hall upon request. ADOPTED AND APPROVED FOR PUBLICATIONBYthe Monticello City Council this 14th day of February, 2022 CITY OF MONTICELLO Lloyd Hilgart, Mayor ATTEST: Rachel Leonard, City Administrator VOTING IN FAVOR: VOTING IN OPPOSITION: ORDINANCE NO.8XX EXHIBIT "A" Following are the approved amendments to the Official Zoning Map Ordinance 754 and 760 —Lot 1, Block 1, plat of Nuss Truck and Equipment Ordinance 759 — Lot 1-20, Block 1; Lots 1-16; Block 2, Lots 1-11; Block 3, plat of Haven Ridge 2nd Addition Ordinance 761 - Lot 1, Block 1, plat of Storage Link Monticello Ordinance 763 — Lots 1-29, Block 1, plat of Stony Brook Village Ordinance 764 - Shoreland Overlay District (correction to boundary) Ordinance 767— Lot 1, Block 1, Monticello Eighth Addition - Monticello Lakes Planned Unit Development y%v r O 1 . mom....:. ORDINANCE NO. 754 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE, KNOWN AS THE ZONING ORDINANCE, BY AMENDING SECTION 3.8, ADDING THE "NUSS TRUCK AND EQUIPMENT INDUSTRIAL PUD", A ZONING DISTRICT IN THE CITY OF MONTICELLO, THE CITY COUNCIL OF THE CITY OFMONTICELLO HEREB Y ORDAINS. Section 1. Section 3.8 - Planned Unit Developments, Title 10 - Zoning Ordinance is hereby amended to read as follows: 3.8 (13) Nuss Truck and Equipment Industrial PUD (a) Purpose. The purpose of the Nuss Truck and Equipment PUD District is to provide for the development of certain real estate subject to the District for industrial land uses. (b) Permitted Uses. Permitted principal uses in the Nuss Truck and Equipment Industrial PUD District shall be machinery/truck repair and sales as found in Section 5.2 (F)(1 1) of the Monticello Zoning Ordinance, Section, subject to the approved Final Stage Development Plans dated January 25, 2021, and development agreement dated January 25, 2021 asmay be amended. (c) Accessory Uses. Accessory uses shall be those commonly accessory and incidental to industrial uses, and as specifically identified by the approved final stage PUD plans. (d) District Performance Standards. Performance standards for the development of any lot in the Nuss Trucking Industrial PUD District shall adhere to the approved final stage PUD plans and development agreement. In such case where any proposed improvement is not addressed by the final stage PUD, then the regulations of the 1-1, Industrial District shall apply. (e) Amendments. Where changes to the PUD are proposed in the manner of use, density, site plan, development layout, building size, mass, or coverage, or any other change, the proposer shall apply for an amendment to the PUD under the terms of the Monticello Zoning Ordinance, Section 2.4 (P)(10). The City may require that substantial changes in overall use of the PUD property be processed as a new ORDINANCE NO.754 project, including a zoning district amendment. Section 2. The zoning map of the City of Monticello is hereby amendment to rezoned the following described parcels from its current district(s) to Nuss Truck and Equipment Industrial PUD, Planned Unit Development District: Lots 1, Block 1, Nuss Truck and Equipment Addition. Section 3. The City Clerk is hereby directed to mark the official zoning map to reflect this ordinance. The map shall not be republished at this time. Section 4. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intended effect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section 5. This Ordinance shall take effect and be in full force from and after its passage and publication. The ordinance in its entirety and map shall be posted on the City website after publication. Copies of the complete Ordinance and map are available online and at Monticello City Hall for examination upon request. ADOPTED BY the Monticello City Council this 251h day of January, 2021. rz-4&4A- Lloyd Hilgart, Mayor ATTEST: e fifer Sc eiber ity Clerk AYES: Davidson, Gabler, Hilgart, and Murdoff NAYS: ORDINANCE NO. 759 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE, KNOWN AS THE ZONING ORDINANCE, BY REZONING THE FOLLOWING PROPERTY FROM A-O, AGRICULTURAL OPEN SPACE DISTRICT TO R-1, SINGLE FAMILY RESIDENCE DISTRICT: HAVEN RIDGE 2nd ADDITION THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. The zoning map of the City of Monticello is hereby amended to rezone the following described parcels from A-O, Agricultural Open Space to R-1, Single Family Residence District: PID NUMBER: 155-259-000020 Outlot D, Haven Ridge, to be platted as: Lots 1-20, Block 1, Haven Ridge 2nd Addition Lots 1-16, Block 2, Haven Ridge 2nd Addition Lots 1-11, Block 3, Haven Ridge 2nd Addition Section 2. The City Clerk is hereby directed to mark the official zoning map to reflect this ordinance. The map shall not be republished at this time. Section 3. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intended effect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section 5. This Ordinance shall take effect and be in full force from and after its passage and publication. The ordinance in its entirety and map shall be posted on the City website after publication. Copies of the complete Ordinance and map are available online and at Monticello City Hall for examination upon request. ADOPTED BYthe Monticello City Council this 26t" day of April, 2021. ORDINANCE NO. 759 ATTEST: r Je nifer Schreiber, City Clerk AYES: Davidson, Gabler, Hilgart, Hudgins, and Murdoff NAYS: None. ORDINANCE NO. 760 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE,KNOWN AS THE ZONING ORDINANCE, NUSS TRUCK & EQUIPMENT PUD,PLANNED UNIT DEVELOPMENT: THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. Section 3.8 — Planned Unit Developments, Title 10 — Zoning Ordinance is hereby amended by adding the following: 1.8 (13) Nuss Trucking Industrial PUD (a) Permitted Uses. Permitted principal uses in the Nuss Trucking Industrial PUD District shall be machinery/truck repair and sales as found in Section 5.2 (F)(11) of the Monticello Zoning Ordinance, Section, subject to the approved Final Stage Development Plans datedApril 191", 2021, the amended landscaping plan dated1. 2021, and development agreement dated January 25th, 20211 as may be amended. Section 2. The City Clerk is hereby directed to mark the official zoning map to reflect this ordinance. The map shall not be republished at this time. Section 3. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intendedeffect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section 4. This Ordinance shall take effect and be in full force from and after its passageand publication. The ordinance in its entirety and map shall be posted on the City website after publication. Copies of the complete Ordinance and map areavailable online and at Monticello City Hall for examination upon request. ADOPTED BYthe Monticello City Council this 101" day of May, 2021. ORDINANCE NO. 760 ATTEST: L'1��1v►�I��lkFaMill AYES: NAYS: ORDINANCE NO. 761 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE, KNOWN AS THE ZONING ORDINANCE, BY AMENDING SECTION 3.8, ADDING THE "STORAGELINK MONTICELLO PUD", A ZONING DISTRICT IN THE CITY OF MONTICELLO, THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. Section 3.8 — Planned Unit Developments, Title 10 — Zoning Ordinance is hereby amended to read as follows: 3.8 (13) Storagelink Monticello PUD (a) Purpose. The purpose of the Storagelink Monticello PUD District is to provide for the development of certain real estate subject to the B-3 (Highway Business) District for commercial land uses. (b) Permitted Uses. Permitted principal uses in the Storagelink Monticello PUD District shall be commercial self -storage as found in Section 5.2 (F)(11) of the Monticello Zoning Ordinance, subject to the approved Final Stage Development Plans dated , and development agreement dated , 20_, as may be amended. (c) Accessory Uses. Accessory uses shall be those commonly accessory and incidental to commercial uses, and as specifically identified by the approved final stage PUD plans. (d) District Performance Standards. Performance standards for the development of any lot in the Storagelink Monticello PUD District shall adhere to the approved final stage PUD plans and development agreement. In such case where any proposed improvement is not addressed by the final stage PUD, then the regulations of the B-3, (Highway Business) shall apply. (e) Amendments. Where changes to the PUD are proposed in the manner of use, density, site plan, development layout, building size, mass, or coverage, or any other change, the proposer shall apply for an amendment to the PUD under the terms of the Monticello Zoning ORDINANCE NO. 761 Ordinance, Section 2.4 (P)(10). The City may require that substantial changes in overall use of the PUD property be processed as a new project, including a zoning district amendment. Section 2. The zoning map of the City of Monticello is hereby amendment to rezoned the following described parcels from its current district(s) to StorageLink Monticello PUD, Planned Unit Development District: Lots 1, Block 1, StorageLink Monticello. Section 3. The City Clerk is hereby directed to mark the official zoning map to reflect this ordinance. The map shall not be republished at this time. Section 4. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intended effect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section S. This Ordinance shall take effect and be in full force from and after its passage and publication. The ordinance in its entirety and map shall be posted on the City website after publication. Copies of the complete Ordinance and map are available online and at Monticello City Hall for examination upon request. ADOPTED BYthe Monticello City Council this 10th day of May, 2021. r'z ' h 14'xt Lloyd Hilgart, ayor ATTEST: Y Je nif4SJreibe"-r/, City Clerk AYES: Davidson, Gabler, Hilgart, Hudgins, and Murdoff NAYS: None. 2 ORDINANCE NO. 763 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE, KNOWN AS THE ZONING ORDINANCE, BY AMENDING THE TEXT AND ZONING MAP, ESTABLISHING THE STONY BROOK VILLAGE PUD DISTRICT, AND REZONING THE FOLLOWING PROPERTY FROM R-2, SINGLE AND TWO-FAMILY RESIDENTIAL DISTRICT TO STONY BROOK VILLAGE PLANNED UNIT DEVELOPMENT DISTRICT: BLOCK 1, LOTS 1-29, STONY BROOK VILLAGE THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. Section 3.8, Planned Unit Development Districts, of the Zoning Ordinance of the City of Monticello is hereby amended to add the following: (13) Stony Brook Village PUD District (a) Purpose. The purpose of the Stony Brook PUD District is to provide for the development of certain real estate subject to the District for two-family residential land uses. (b) Permitted Uses. Permitted principal uses in the Stony Brook PUD District shall be two-family residential uses as found in the R-2 Single and Two -Family Residential District of the Monticello Zoning Ordinance, subject to the approved Final Stage Development Plans dated August 23rd, 2021, and development agreement dated August 23rd, 2021, as may be amended. The introduction of any other use from any district shall be reviewed under the requirements of the Monticello Zoning Ordinance, Chapter 2, Section (0) — Planned Unit Developments for Development Stage PUD and Final Stage PUD. (c) Accessory Uses. Accessory uses shall be those commonly accessory and incidental to residential uses, and as specifically identified by the approved final stage PUD plans. (d) District Performance Standards. Performance standards for the development of any lot in the Stony Brook PUD District shall adhere to the approved final stage PUD plans and development agreement. In such case where any proposed improvement is not addressed by the final stage PUD, then the regulations of the R-2, Single and Two -Family Residential District shall apply. (e) Amendments. Where changes to the PUD are proposed in the manner of use, density, site plan, development layout, building size, mass, exterior building materials or colors, lot coverage, or any other change, the proposer shall apply for an amendment to the PUD under the terms of the Monticello Zoning ORDINANCE NO.763 Ordinance, Section 2.4 (13)(10). The City may require that substantial changes in overall use of the PUD property be processed as a new project, including a zoning district amendment. Section 2. The zoning map of the City of Monticello is hereby amended to rezone the following described parcels from A-0, Agricultural Open Space to R-1, Single Family Residence District: PID NUMBERS: 155-500-101402 Lots to be plated as BLOCK 1, LOTS 1-29, STONY BROOK VILLAGE Section 2. The City Clerk is hereby directed to mark the official zoning map to reflect this ordinance. The map shall not be republished at this time. Section 3. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intended effect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section 5. This Ordinance shall take effect and be in full force from and after its passage and publication. The ordinance in its entirety and map shall be posted on the City website after publication. Copies of the complete Ordinance and map are available online and at Monticello City Hall for examination upon request. ADOPTED BYthe Monticello City Council this 13th day of September, 2021. Lloyd art, a or ATTEST: )t�m� v(viya", nifer Sc eiber, City Clerk AYES: Davidson, Hilgart, Hudgins, and Murdoff NAYS: None. Absent: Gabler 2 ORDINANCE NO. 764 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING AND CORRECTING THE OFFICIAL ZONING MAP FOR FLOODPLAIN, SHORELAND, AND MISSISSIPPI WILD SCENIC AND RECREATIONAL RIVER OVERLAY DISTRICT FOR THE CITY OF MONTICELLO THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. The corrective zoning map amendments to the Shoreland Overlay District attached hereto and incorporated herein as Exhibit "A" are adopted with the Official Zoning Map under Title 10, Section 3.1 of the Zoning Ordinance for the City of Monticello. Section 2. This Ordinance shall take effect and be in full force from and after its passage and publication. Revisions will be made online after adoption by Council. Copies of the complete Zoning Ordinance are available online and at Monticello City Hall upon request. ADOPTED AND APPROVED FOR PUBLICATION BY the Monticello City Council this 25th day of October, 2021. CITY OF MONTICELLO MAMMON, Who-■/IVA • • ATTEST: r] ia�� - kr� yly nnifer Schreiber, City Clerk VOTING IN FAVOR: Davidson, Gabler, Fair, Hilgart, and Murdoff VOTING IN OPPOSITION: None. ORDINANCE NO. 764 EXHIBIT "A" Corrective amendment to the boundaries of the Shoreland Overlay District within the City of Monticello. ORDINANCE NO. 767 CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA AN ORDINANCE AMENDING TITLE 10 OF THE MONTICELLO CITY CODE, KNOWN AS THE ZONING ORDINANCE, BY AMENDING THE TEXT AND ZONING MAP, ESTABLISHING THE MONTICELLO LAKES PUD DISTRICT, AND REZONING THE FOLLOWING PROPERTY FROM B-4, REGIONAL BUSINESS DISTRICT TO PUD, MONTICELLO LAKES PLANNED UNIT DEVELOPMENT DISTRICT: LOT 1, BLOCK 1, MONTICELLO BUSINESS CENTER 8T" ADDITION THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS: Section 1. Section 3.8, Planned Unit Development Districts, of the Zoning Ordinance of the City of Monticello is hereby amended to add the following: (15) Monticello Lakes PUD District (a) Purpose. The purpose of the Monticello Lakes PUD District is to provide for the development of certain real estate subject to the District for multiple -family residential land uses. (b) Permitted Uses. Permitted principal uses in the Monticello Lakes PUD District shall be a maximum of 200 units of multiple -family residential uses as found in the R-4 Medium and High Density Residential District of the Monticello Zoning Ordinance, subject to the approved Final Stage Development Plans dated , 2021, and development agreement dated , 2021, as may be amended. The introduction of any other use or change in density shall be reviewed under the requirements of the Monticello Zoning Ordinance, Chapter 2, Section (0) — Planned Unit Developments for Development Stage PUD and Final Stage PUD. (c) Accessory Uses. Accessory uses shall be those commonly accessory and incidental to residential uses as listed in the R-4 District, and as specifically identified by the approved final stage PUD plans. (d) District Performance Standards. Performance standards for the development of any lot in the Monticello Lakes PUD District shall adhere to the approved final stage PUD plans and development agreement. In such case where any proposed improvement is not addressed by the final stage PUD, then the regulations of the R-4, Medium and High Density Multiple -Family Residential District shall apply. (e) Amendments. Where changes to the PUD are proposed in the manner of use, ORDINANCE NO. 767 density, site plan, development layout, building size, mass, exterior building materials or colors, lot coverage, or any other change, the proposer shall apply for an amendment to the PUD under the terms of the Monticello Zoning Ordinance, Section 2.4 (13)(10). The City may require that substantial changes in overall use of the PUD property be processed as a new project, including a zoning district amendment. Section 2. The zoning map of the City of Monticello is hereby amended to rezone the following described parcels from B-4, Regional Business District to PUD, Monticello Lakes PUD District: Lot 1, Block 1, Monticello Business Center 8th Addition Section 2. The City Clerk is hereby directed to mark the official zoning map to reflect this ordinance. The map shall not be republished at this time. Section 3. The City Clerk is hereby directed to make the changes required by this Ordinance as part of the Official Monticello City Code, Title 10, Zoning Ordinance, and to renumber the tables and chapters accordingly as necessary to provide the intended effect of this Ordinance. The City Clerk is further directed to make necessary corrections to any internal citations that result from said renumbering process, provided that such changes retain the purpose and intent of the Zoning Ordinance as has been adopted. Section 5. This Ordinance shall take effect and be in full force from and after its passage and publication. The ordinance in its entirety and map shall be posted on the City website after publication. Copies of the complete Ordinance and map are available online and at Monticello City Hall for examination upon request. ADOPTED BYthe Monticello City Council this 13th day of December, 2021. Lloyd Hilgart, Ma or ATTEST: u� Jinnifer §chr, r, City Clerk AYES: Davidson, Fair, Gabler, Hilgart, and Murdoff NAYS: None 2 Planning Commission Agenda: 02/02/22 3B. Consideration to adopt Resolution PC-2022-05 findine that the establishment of TIF District 1-42, TIF Plan and Land Conveyance conforms to the Monticello 2040 Comprehensive Plan Consideration to adopt Resolution PC-2022-06 finding that the establishment of TIF District 1-43, TIF Plan and Land Conveyance conforms to the Monticello 2040 Comprehensive Plan Prepared by: Community Meeting Date: Council Date (pending Development Director 2/02/2022 Commission action): Multiple Dates Additional Analysis by: Economic Development Manager, Community & Economic Development Coordinator ALTERNATIVE ACTIONS Decision 1: 1. Motion to adopt Resolution PC-2022-05 finding that the establishment of TIF District 1-42 and TIF Plan for TIF District 1-42 and Land Conveyance Therein conforms to the Monticello Comprehensive Plan. 2. Motion of other. Decision 2: 1. Motion to adopt Resolution PC-2022-06 finding that the establishment of TIF District 1-43 and TIF Plan for TIF District 1-43 and Land Conveyance Therein conforms to the Monticello Comprehensive Plan. 2. Motion of other. A. REFERENCE AND BACKGROUND The Planning Commission is asked to consider a resolution finding that establishment of TIF Districts 1-42 and 1-43 and the TIF Plans for District No. 1-42 and 1-43 conform to the Monticello 2040 Comprehensive Plan. This review is part of the required process for the establishment of a new tax increment financing districts. As the EDA is the current property owner of the proposed TIF district development site, Outlot A of County Club Manor, the Planning Commission is also asked to review the proposed conveyance for conformance to the Comprehensive Plan. Headwaters Development is proposing a multi -family development on the 16.71-acre Country Club Addition parcel along Th Street West. Headwaters Development is proposing to build a total of 168 new housing units. The housing would consist of a 108- Planning Commission Agenda: 02/02/22 unit affordable senior (age 55 +) apartment building in the western portion of the site, to be established as TIF District 1-42. Headwaters also proposes to develop 60 rental twin - home units (30 pad sites), also targeting the age 55 + demographic on the eastern half of the parcel. The twin -home area would be established as TIF District 1-43. 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. To comply with the TIF statute, Headwaters is proposing to offer 40 percent of the both the apartment and twin -home units to households with incomes at 60 percent of the area median income (AMI) for Wright County. While the City's Economic Development Authority is the primary board responsible for working with the developer in the drafting of the TIF Plan and companion contract for Redevelopment, the TIF Plans are provided to the Planning Commission as a reference document on the TIF District function and the required minimum improvements in relationship to the goals and objectives of the Comprehensive Plan. The EDA and City Council will take their respective actions related to the specifics of the project financing and TIF District establishment. At this time, Planning Commission's role is solely to determine conformity with the Comprehensive Plan in relationship to the purpose of the TIF Districts and land conveyance. The developer will submit a plat and planned unit development applications at a later date, which will come before the Commission for recommendation. The developer is working through the TIF process as a first step to determine and confirm project financing prior to submittal of the required land use applications. The purpose of the creation of both TIF District 1-42 and 1-43 will be to create TIF housing districts to assist the developer with eligible project development costs. As the basis for this assistance, the developer proposes to offer 40 percent of the units to households with incomes at 60 percent of the area median income (AMI) for Wright County in both the apartment and townhome components. 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 City adopted its current Comprehensive Plan in 2020. The proposed TIF Districts and conveyance meets the following goals and objectives of the Monticello 2040 Comprehensive Plan. Mixed Density Residential: The parcel is guided Mixed -Density Residential in the Monticello 2040 Plan. This designation "Applies to areas of the City where mixed housing types and medium to high density housing are appropriate. Housing types could include attached housing such as apartments, townhomes, 2 Planning Commission Agenda: 02/02/22 condominiums and multi -family buildings. It also includes areas appropriate for small -lot single-family homes and cottage homes. Densities generally range between 8 to 25 units per acre corresponding to site area allowances of 1,700- 5,000 square feet per unit. Allowed density is dependent on adjacent land uses, existing building form and character and other factors." With a mix of unit types and a gross density of 10 units/acre, this project is well within the guidance and density allowance. The developer proposes the higher -density apartment at the west end of the site, directly adjacent to CSAH 39 and medium -density residential to the north. The townhome component of the project has the largest street frontage along 71" Street, adjacent to the existing single-family. The proposed concept also provides an appropriate transition between the existing residential and 1-94. o Complete Neighborhoods/Neighborhood Diversity & Life -Cycle Housing: Within the Monticello 2040 Implementation chapter, this goal and policy encourages opportunities for residents to stay in Monticello, with additional options for estate residential, senior living, and other life -cycle options. Also included is a companion strategy small -lot single family homes, neo-traditional housing styles, and cottage homes. o Complete Neighborhoods/Locations for Higher Density Housing: The Implementation chapter suggests locating new "higher density housing and mixed -use development in proximity to Downtown where there is good access to parks and open space, proximity to local -serving commercial uses, and proximity to the transportation network. Consider impacts to over concentration of multi -family uses in specific locations." This project is located close to the core of the community and is an ideal location in terms of proximity to amenities and commercial for the targeted senior demographic. o Life -Cycle Housing: This section specifically cites that Monticello will be a community with a wide variety of housing options including senior housing to support new and existing residents. This Goal also includes a strategy for use of TIF and application of available housing TIF dollars per the City's 2016 TIF Management Plan and the adopted Policy Statements for Available TIF Funds. In summary, the City's adopted 2040 Comprehensive Plan and its supporting documents provide the basis for the development of the proposed housing. The Plan further identifies that there may exist a need for financial resources, such as tax increment financing, to support the achievement of housing development. C. STAFF RECOMMENDATION: City staff supports Alternative #1 above. Staff believes that the proposed project and its principal uses are consistent with the City's long-range plans. Planning Commission Agenda: 02/02/22 The EDA has long held this property specifically to provide an opportunity to meet goals for affordable housing opportunity. The proposed development provides not only the opportunity for needed affordable housing, but also provides that opportunity specific to a needed life -cycle component — senior housing, The City's adopted Comprehensive Plan and Housing Study each provide a foundation for the establishment of the proposed two TIF Districts, which will create affordable senior housing for the community. The Planning Commission will make other recommendations related to other planning and zoning -related items (such as density, landscaping, building design, parking, etc.) through the Planned Unit Development and plat processes the developer will be undertaking. D. SUPPORTING DATA: A. Resolution PC-2022-05 — Establishment of TIF District 1-42 and Conveyance B. Resolution PC-2022-06 — Establishment of TIF District 1-43 and Conveyance C. Aerial Image D. Concept Plan E. Monticello 2040 Plan, Excerpts F. 2020 Monticello Housing Study, Excerpts G. TIF Plans, TIF 1-42 and TIF 1-43 M CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC 2022-05 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MONTICELLO RECOMMEDING APPROVAL OF A PROPOSED TAX INCREMENT FINANCING DISTRICT AND THE CONVEYANCE THEREIN WHEREAS, the proposal by the City of Monticello, Minnesota (the "City") and the Monticello Economic Development Authority (the "EDA") to establish Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project) (the "TIF District") and adopt the Tax Increment Financing Plan relating thereto (the "TIF Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, 469.124 to 469.133 and Sections 469.174 to 469.1794, as amended (the "TIF Act"), has been submitted to the City of Monticello Planning Commission (the "Commission"); and WHEREAS, the EDA proposes to convey title to a portion of certain real property with parcel ID number 155-033-900-010 at the corner of Golf Course Road and 7th Street West (the "Property") to Headwaters Development LLC, or an affiliate thereof or entity related thereto (the "Redeveloper"); and WHEREAS, the Developer proposes to acquire the Property from the EDA for purposes of constructing an approximately 108-unit rental multi -family housing facility for seniors, with approximately 75 on -grade and 100 covered parking stalls (the "Project") on the Property; and WHEREAS, Minnesota Statutes, Section 462.356, subdivision. 2 requires the Commission to review the proposed acquisition or disposal of publicly -owned real property within the City prior to its acquisition or disposal, to determine whether in the opinion of the Commission, such acquisition or disposal is consistent with the comprehensive municipal plan; and WHEREAS, the Commission has reviewed the proposed conveyance of the Property to the Developer, and has determined the proposed acquisition is consistent with the City's comprehensive municipal plan; WHEREAS, in addition, the Commission has reviewed the TIF Plan to determine the consistency of the TIF Plan with the comprehensive plan for the City; and WHEREAS, the Commission's review of the TIF Plan and the conveyance of the Property relates solely to compliance with the TIF Act and Minnesota Statutes, Section 462.356. The Commission shall undertake a detailed review of the proposed project described in the TIF Plan as part of the City's normal planning process on a later date. NOW THEREFORE, BE IT RESOLVED, by the City of Monticello Planning Commission that the TIF Plan and the proposed conveyance of the Property are consistent with the comprehensive plan for the City of Monticello and conform to general plans for development or redevelopment of the City as a whole. lulLIfKOW1030b1 Firm ADOPTED this 2nd day of February, 2022, by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING COMMISSION ME ATTEST: Paul Konsor, Chair Angela Schumann, Community Development Director MN190-170-775487A CITY OF MONTICELLO WRIGHT COUNTY, MINNESOTA PLANNING COMMISSION RESOLUTION NO. PC 2022-06 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MONTICELLO RECOMMEDING APPROVAL OF A PROPOSED TAX INCREMENT FINANCING DISTRICT AND THE CONVEYANCE THEREIN WHEREAS, the proposal by the City of Monticello, Minnesota (the "City") and the Monticello Economic Development Authority (the "EDA") to establish Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villages Project) (the "TIF District") and adopt the Tax Increment Financing Plan relating thereto (the "TIF Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, 469.124 to 469.133 and Sections 469.174 to 469.1794, as amended (the "TIF Act"), has been submitted to the City of Monticello Planning Commission (the "Commission"); and WHEREAS, the EDA proposes to convey title to a portion of certain real property with parcel ID number 155-033-900-010 at the corner of Golf Course Road and 7th Street West (the "Property") to Headwaters Development LLC, or an affiliate thereof or entity related thereto (the "Redeveloper"); and WHEREAS, the Developer proposes to acquire the Property from the EDA for purposes of constructing an approximately 60 rental housing units for seniors, with attached two -car garages to the units (the "Project") on the Property; and WHEREAS, Minnesota Statutes, Section 462.356, subdivision. 2 requires the Commission to review the proposed acquisition or disposal of publicly -owned real property within the City prior to its acquisition or disposal, to determine whether in the opinion of the Commission, such acquisition or disposal is consistent with the comprehensive municipal plan; and WHEREAS, the Commission has reviewed the proposed conveyance of the Property to the Developer, and has determined the proposed acquisition is consistent with the City's comprehensive municipal plan; and WHEREAS, in addition, the Commission has reviewed the TIF Plan to determine the consistency of the TIF Plan with the comprehensive plan for the City; and WHEREAS, the Commission's review of the TIF Plan and the conveyance of the Property relates solely to compliance with the TIF Act and Minnesota Statutes, Section 462.356. The Planning Commission shall undertake a detailed review of the proposed project described in the TIF Plan as part of the City's normal planning process on a later date. NOW THEREFORE, BE IT RESOLVED, by the City of Monticello Planning Commission that the TIF Plan and the proposed conveyance of the Property are consistent with the comprehensive plan for the City of Monticello and conform to general plans for development or redevelopment of the City as a whole. IUILIIK#315 201..11EE01 ADOPTED this 2nd day of February, 2022, by the Planning Commission of the City of Monticello, Minnesota. MONTICELLO PLANNING COMMISION Paul Konsor, Chair ATTEST: Angela Schumann, Community Development Director MN190-163-775444A 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 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 — 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 GROWTH STRATEGY MAP FUTURE LAND USE MAP MIXED -DENSITY RESIDENTIAL (MDR) The Mixed -Density Residential designation applies to areas of the City where mixed housing types and medium to high density housing are appropriate. Housing types could include attached housing such as apartments, townhomes, condominiums and multi -family buildings. It may also includes areas appropriate for small -lot single-family homes and cottage homes. Densities generally range between 8 to 25 units per acres corresponding to site area allowances of 1,700-5,000 square feet per unit. Allowed density is dependent on adjacent land uses, existing building form and character and other factors. Higher densities are permitted at the discretion of the City. These areas have mixed housing types and reflect a denser, more urban environment. Buildings in these areas are generally between two to five stories and may have surface parking. Other compatible uses, such as schools, nursing homes, parks and religious facilities may also locate in this designation. Residential Medium to High Density (Residential characterized by a wide mix of housing types) • Senior Living Facility Public/institutional • Schools Recreational • Parks/Playgrounds Open Space • Sensitive Habitat Primary Mode Vehicular (slow speeds) Secondary Mode Pedestrian paths and trails Bicycle facilities and parking Transit or Shuttle Service • Density - 8 - 25+ units/acre 2018 Correlating (Medium to High Zoning District Density Residential) R-3 • Height - Medium Density 1-5 stories Residential District • Lot Area - R-4 Medium -High Density 1,700-5,000 Residence District sq. ft. per unit LAND USE, GROWTH AND ORDERLY ANNEXATION IMPLEMENTATION CHART: LAND USE, GROWTH AND ORDERLY ANNEXATION SHORT- I LONG- ONGOING THEME TERM TERM I I Policy2.1. Neighborhood Strategy2.1.1- Adopt zoning regulations Diversity & Life -Cycle Housing • • that allow for a wider diversity of housing types, identify character defining features and O O • • • • • - • Sustain a diverse array of encourage a center of focus for • - - • • - neighborhood character and each neighborhood. • • • • . - housing types throughout . • • • • • - - • • • Monticello. These will range from • • - - • - . • estate residential to established Strategy2.1.2- Encourage opportunities for residents to stay in Monticello, with additional O �a - • - - • • - • • • • - • traditional neighborhoods, to options for estate residential, senior living, and • • . - • • • • • new planned subdivisions and other life -cycle options. Strategy2.1.3 - Amend zoning regulations as • • • . - - • • - conservation development, and • . - • - • • - - • • neighborhoods oriented around r or actiity rthat • .. •• • necessary to allow for small -lot single family homes, neo-traditional housing styles, cottage O • ' -•• • - • , , • The unique design elements homes, accessorydwellingunits (ADUs), and - • • . • • . • define each neighborhood should mansion style condos. . • • • • be protected and enhanced in the future including its housing stock, Strategy2.1.4 - Encourage housing options which incorporate Universal Design to promote O (0) parks and public infrastructure. housing equity in choice. Strategy2.1.5 - Consider allowing Accessory Dwelling Units (ADUs). O Monticello's neighborhoods help define the city's form and sense of place. The city's neighborhoods will continue to evolve in the years ahead. In areas where the basic development pattern is already established continued reinvestment in the housing stock and infrastructure is encouraged with an emphasis on sustainable design in terms of private property improvement and investment, as well as capital improvements. In the outlying areas of the city where the development pattern is still evolving, new neighborhoods will be safe, healthy, attractive with a diverse population and housing stock. The planning objective for all Monticello residential areas is to make each neighborhood "complete" — with a variety of housing choices, proximity to neighborhood- scaled commercial services, community services, and neighborhood parks that serve as an identifiable center and gathering place for its neighbors and future residents. MONTICELLO 2040 VISION + PLAN IMPLEMENTATION CHART: LAND USE, GROWTH AND ORDERLY ANNEXATION SHORT- I LONG- ONGOING THEME TERM TERM Policy2.7. Locations for Higher Strategy2.7.1-Amend the Zoning Map to be Density Housing consistent with the Future Land Use Map and Generally, locate new higher identify areas where mixed -density residential density housing and mixed uses are appropriate. use development in proximity to Downtown where there is good access to parks and open space, proximity to local -serving commercial uses, and proximity to the transportation network. O �i Consider impacts to over concentration of multi -family uses in specific locations. Conversely, the City should discourage the use of vacant sites with these attributes for new low employee intensity or low value land uses. PolicyZ8: Equitable Planning Ensure that no single neighborhood or population group is disproportionately O a impacted by flooding or environmental burdens, city services, incompatible uses, neighborhood constraints or potential hazards. Policy2.9 - Neighborhood Design Strategy2.9.1- Integrate open space, parks, Support the development of street trees, landscaping, and natural features into Monticello's neighborhoods to enhance O neighborhoods with a strong set of their visual quality, create inviting and safe amenities which enhance quality spaces, and improve access to nature of life, retain residents and support and recreation. continued investment. Strategy2.9.2- Create and maintain a Neighborhood Conservation Overlay zoning district to identify areas that should O be developed in a manner consistent with conservation style development. 202 IMPLEMENTATION IMPLEMENTATION CHART: ECONOMIC DEVELOPMENT SHORT- I LONG- ONGOING THEME TERM TERM • • • • Policy4.2. Revitalization Strategy 4.2.1 -Evaluate any development related processes or fees which could be r\r\r\ modified to support or encourage reinvestment O JJl Support revitalization efforts for in targeted areas. publicly owned properties and other opportunity sites Strategy 4.2.2-Research and develop reinvestment programs for targeted housing throughout the community. areas and other sites throughout the community O for long-term investment. Strategy4.2.3- Use strategies identified in the Community Character, Design and the Arts O ((( Chapter in revitalization projects. 1Il • Policy5.1. Strategy 5.1.1 - Continue to market workforce Housing to Support Employment housing development on EDA-owned land along East 4th Street and Outlot A of Country O Actively promote and seek Club Manor, or at other suitable sites in the City, ' opportunities for the development including the Downtown. - of a wide variety of housing types, styles and price points as Strategy5.1.2-Maintain and update annually a mechanism to support and property availability maps for residential O housing sites as identified in the attract employment. 2020 Housing Report. Strategy5.t3- Support efforts by private and non-profit entities to develop affordable housing O projects utilizing state and federal programs based on housing supply and demand data. Strategy5.1.4- Examine use and application of available housing TIF dollars per the 2016 O TIF Management Plan and the adopted Policy Statements for Available TIF Funds. Strategy5.1.5- Complete updates to the 2020 Housing Study and regular and O appropriate intervals. Strategy5.t6- Continue to periodically examine housing stock for aging or blighted properties and research development O of programs for redevelopment and/or revitalization of existing housing. MONTICELLO 2040 VISION + PLAN 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 DRAFT CITY OF MONTICELLO, MINNESOTA TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 (HEADWATERS APARTMENT PROJECT) CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 PROPOSED TO BE ADOPTED BY CITY OF MONTICELLO AND CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY (EDA) PUBLIC HEARING DATE: , 2022 PLAN APPROVED BY EDA DATE: , 2022 PLAN APPROVED BY CITY COUNCIL DATE: , 2022 PLAN CERTIFICATION REQUEST DATE: , 2022 PLAN CERTIFIED DATE: , 2022 NORTHLAND y SECURITIES Northland Securities, Inc. 150 South Fifth Street, Suite 3300 Minneapolis, MN 55402 (800)851-2920 Member NASD and SIPC Registered with SEC and MSRB TABLE OF CONTENTS ARTICLE I - INTRODUCTION AND DEFINITIONS.........................................................I Section 1.01 Introduction......................................................................................1 Section 1.02 Definitions.........................................................................................1 Section 1.03 Plan Preparation...............................................................................1 ARTICLE II - TAX INCREMENT FINANCING PLAN.........................................................2 Section 2.01 Statutory Authority..........................................................................2 Section 2.02 Planned Development.....................................................................2 2.02.1 Project Description......................................................................................3 2.02.2 City Plans and Development Program .................................................... 3 2.02.3 Land Acquisition.........................................................................................3 2.02.4 Development Activities..............................................................................2 2.02.5 Need for Tax Increment Financing........................................................... 2 Section 2.03 Tax Increment Financing District...................................................3 2.03.1 Designation.................................................................................................. 3 2.03.2 Boundaries of TIF District..........................................................................3 2.03.3 Type of District............................................................................................3 Section 2.04 Plan for Use of Tax Increment........................................................3 2.04.1 Estimated Tax Increment............................................................................3 2.04.2 Project Costs.................................................................................................4 2.04.3 Estimated Sources and Uses of Funds.....................................................5 Figure2-1......................................................................................................5 2.04.4 Administrative Expense.............................................................................5 2.04.5 County Road Costs.....................................................................................6 2.04.6 Bonded Indebtedness................................................................................. 6 2.04.7 Election of First Year of Increment and Duration of TIF District ......... 6 2.04.8 Estimated Impact on Other Taxing Jurisdictions...................................6 2.04.9 Prior Planned Improvements.................................................................... 7 ARTICLE III —ADMINISTERING THE TIF DISTRICT......................................................7 Section 3.01 Filing and Certification....................................................................7 Section 3.02 Modifications of the Tax Increment Financing Plan....................7 Section 3.03 4-Year Knockdown Rule..................................................................8 Section 3.04 Pooling/5-Year Rule..........................................................................8 Section 3.05 Financial Reporting and Disclosure Requirements .....................8 Section 3.06 Business Subsidy Compliance........................................................8 EXHIBITS........................................................................................................................... 9 Exhibit I - Present Value Analysis............................................................................9 Exhibit II - Projected Tax Increment......................................................................10 Exhibit III - Impact on Other Taxing Jurisdictions..............................................11 Exhibit IV - Estimated Tax Increment Over Life of District...............................12 Exhibit V - Map of TIF District...............................................................................13 Exhibit VI - Map of Central Monticello Redevelopment Project No. 1 ............14 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 ARTICLE I — INTRODUCTION AND DEFINITIONS SECTION 1.01 INTRODUCTION The City of Monticello and the City of Monticello Economic Development Authority propose to provide tax increment financing assistance through the establishment of Tax Increment Financing (Housing) District No. 1-42 to assist with the financing of certain project costs for the construction of an approximate 108-unit rental housing facility, with an affordable component, by a private developer. This document contains the plan for achieving the objectives of the Central Monticello Redevelopment Project No. 1 through the establishment of Tax Increment Financing District No. 1-42. SECTION 1.02 DEFINITIONS For the purposes of this document, the terms below have the meanings given in this section, unless the context in which they are used indicates a different meaning: 1. "Authority" means the City of Monticello Economic Development Authority. 2. "City" means the City of Monticello, Minnesota. 3. "City Council" means the City Council of the City. 4. "County" means Wright County, Minnesota. 5. "Developer" means the private party undertaking construction within the TIF District. 6. "Public Development Costs" means the cost of the development activities that will or are expected to occur within the Project Area or the TIF District. 7. "Project" means the construction by the Developer of an approximate 108-unit rental housing facility, with approximately 75 on -grad and 100 covered parking stalls, to be located at the corner of Golf Course Road and 7th Street West within the City. 8. "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project, as the same may, from time to time, be amended or supplemented. 9. "Redevelopment Project" means Central Monticello Redevelopment Project No. 1 of the Authority, as the same may, from time to time, be amended or supplemented. 10. "School District" means Independent School District No. 882 (Monticello Public Schools). 11. "State" means the State of Minnesota. 12. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. 13. "TIF District" means Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project). 14. "TIF Plan" means the tax increment financing plan for the TIF District (this document). SECTION 1.03 PLAN PREPARATION The document was prepared for the City and the Authority by Northland Securities, Inc. DRAFT JANUARY S, 2021 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 ARTICLE II - TAX INCREMENT FINANCING PLAN SECTION 2.01 STATUTORY AUTHORITY The TIF District and the TIF Plan are established under the authority of the TIF Act. SECTION 2.02 PLANNED DEVELOPMENT 2.02.1 Project Description The Project includes construction of an approximate 108-unit rental housing facility, with approximately 75 on -grad and 100 covered parking stalls, to be located at the corner of Golf Course Road and 7th Street West within the City. The proposed four-story apartment building will include approximately 16 studio units, 64 one -bedroom units, and 28 two -bedroom units, with an affordable rent component. The property where the Project will be built is currently vacant and owned by the Authority. 2.02.2 City Plans and Development Program In addition to achieving the objectives of the Redevelopment Plan, the Project is consistent with and works to achieve the development objectives of the City. The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The City has adopted land use controls to guide the use of property. The proposed development plans for the Project in the TIF District have been reviewed by the Planning Commission and the City Council. 2.02.3 Land Acquisition The Authority owns the land within the TIF District. The Authority plans to sell/convey land to the Developer for the Project. 2.02.4 Development Activities As of the date of approval of this TIF Plan, there are no development activities proposed in this TIF Plan that are subject to contracts. 2.02.5 Need for Tax Increment Financing In various materials the Developer has demonstrated that the proposed use of tax increment financing is needed to offset the high construction costs of high -quality low- to moderate - income housing and associated infrastructure required to support the facility. Without the proposed assistance, these initial up -front costs would make it infeasible for the Developer to be able to charge the affordable rents required for low -to moderate -income residents. Thus, it is the opinion of the City and the Authority that the proposed development would not reasonably be expected to occur solely through private investment within the foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the estimated tax increments for the maximum duration of the TIF District permitted by the TIF Plan. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above and is shown in Exhibit I. This analysis, which is not required by the TIF Act for approval of a housing district, indicates that the increase in estimated market value of the proposed development (less the present value of the estimated tax increments for the maximum duration permitted by the TIF Plan) exceeds the estimated market value of the site prior to the establishment of the TIF District. DRAFT JANUARY S, 2021 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 SECTION 2.03 TAX INCREMENT FINANCING DISTRICT 2.03.7 Designation This TIF District is designated Tax Increment Financing (Housing) District No. 1-42 (Headwaters Apartment Project). 2.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in Exhibit V. The TIF District will include a portion of what is currently parcel 155-033-900-010, along with the adjacent roads and right-of- way. The property to be included within the TIF District is described as follows: • [A description will be inserted here.] The property will need to be platted and a new parcel identification number assigned by the County prior to the certification of the TIF District. 2.03.3 Type of District The TIF District is designated as a "housing" district pursuant to Section 469.174, subdivision 11 of the TIF Act. For the designation, of a tax increment financing housing district, the Developer of the Project will need to commit to the following: 1. Satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. This requirement applies for the duration of the tax increment financing district. The Fiscal Year 2021 Area Median Family Income (AMI) for the County is $104,900. The developer will commit to provide (a) 40% or more of units for occupancy by persons at 60% or less of AMI (based on household size). These income thresholds may change over the life of the TIF District. 2. Provide that no more than 20% of the square footage of building to receive assistance from tax increments consist of commercial, retail, or other nonresidential uses. Revenue derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in Section 469.174, subdivision 11 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the Authority may be included in the cost of a housing project. 3. Failure to comply with these income limitations is subject to the enforcement provisions of Section 469.1771 of the TIF Act. SECTION 2.04 PLAN FOR USE OF TAX INCREMENT 2.04.7 Estimated Tax Increment The original net tax capacity of value of the TIF District will be set by the County upon request for certification. For the purposes of this Plan, the estimated original net tax capacity is $899. This amount is estimated based on the most recent published estimated market value of $386,137 for Parcel 155-033-900-010; with tax capacity value calculated for residential rental property and the assumption that 18.6% of the valuation of this existing parcel will be attributed to the new parcel that will be established for the Project and included in the TIF District. The total tax capacity value of the property for the first estimated year of tax increment (for taxes payable in 2025) is estimated to be $163,620. This amount is based on a total estimated market value of $13,089,600 with property classified as residential rental property. The estimated difference between the total tax capacity value after development completion (for taxes payable in 2025) and the original net tax capacity value is the captured tax capacity value ($162,721) for the creation of tax increment. The total local tax rate for taxes payable in 2021 is 95.949%. The TIF Plan assumes that this rate DRAFT JANUARY 5, 2021 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 will be set as the original local tax rate for the TIF District. At the time of the certification of the original net tax capacity for the TIF District, the county auditor shall certify the original local tax rate that applies to the TIF District. The original local tax rate is the sum of all the local tax rates, excluding that portion of the school rate attributable to the general education levy under Minnesota Statutes section 126C.13, that apply to a property in the TIF District. The local tax rate to be certified is the rate in effect for the same taxes payable year applicable to the tax capacity values certified as the TIF District's original tax capacity. The resulting tax capacity rate is the original local tax rate for the life of the TIF District. Under these assumptions, the estimated annual tax increment will be $156,129 in the first year of tax increment collection. The actual tax increment will vary according to the certified original tax capacity value and original tax rate, the actual property value produced by the proposed development and the changes in property value and State tax policy over the life of the district. It is the intent of the City and the Authority to retain 100% of the captured tax capacity value for the duration of the TIF district. Exhibit II contains the estimated tax increment over the life of the District. 2.04.2 Public Development Costs The Authority will use tax increment to pay Public Development Costs. The Authority anticipates the use of tax increment to pay administrative expenses for the TIF District and to reimburse the Authority and the Developer on a pay -go basis for Public Development Costs. A contract between the Authority and the Developer will define the means for verifying Public Development Costs to be incurred by the Developer that will be eligible for reimbursement from tax increments and the means of disbursing tax increments collected by the Authority to the Developer. The Authority may also use tax increments to pay financing costs. The interest rate payable on bonds, the definition of bonds includes tax increment financing revenue notes, to be issued will be set pursuant to a contract with the Developer. The City and the Authority reserve the right to modify the TIF Plan to provide authority to expend tax increment from the TIF District on other qualified housing projects that meet the criteria for establishing a housing TIF district. Section 469.174, subdivision 11 of the TIF Act defines a housing districts consisting of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income. The requirements for the establishment of a housing TIF district are contained in Section 469.1761 of the TIF Act. The primary criteria are income related. The criteria are different for owned and rental housing. The practical application of this authority includes: • The use of tax increment is not limited by pooling restrictions or the five-year rule. • The tax increment can be spent on activities outside of the TIF district, but within the Development District No. 1. • This authority does not extend the maximum statutory duration of the TIF district. • The tax increment must be used solely to finance the cost of the "housing project" as defined by the TIF Act. The cost of public improvements directly related to the housing project and the allocated administrative expenses of the Authority may be included in the cost of the housing project. • No more than 20% of the square footage of buildings that receive TIF assistance may consist of commercial, retail, or other nonresidential uses. Potential applications of this authority include: • Individual housing projects avoiding the need for a new TIF district. DRAFT JANUARY S, 2021 4 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 • Supplementing the revenues of another housing TIF district. • Assistance for the renovation of existing housing. • Acquisition of land for housing. • Assistance to make public improvements more affordable. 2.04.3 Estimated Sources and Uses of Funds The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City and Authority reserve the right to administratively adjust the amount of any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long as the total Estimated Tax Increment Project Costs amount, not including financing costs, is not increased. FIGURE 2-1 ESTIMATED SOURCES AND USES OF FUNDS Total Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the County 4,596,000 Interest and investment earnings 50,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 4,646,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition 384,760 Site improvements/preparation costs - Utilities - Other public improvements - Construction of affordable housing 2,614,240 Small city authorized costs, if not already included above - Administrative costs 100,000 Estimated Tax Increment Project Costs 3,099,000 Estimated financing costs Interest expense 1,547,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment 4,646,000 Estimated Financing Total amount of bonds to be issued 2.04.4 Administrative Expense 4,646,000 The Authority reserves the right to spend up to ten percent (10%) of tax increment revenues distributed from the County on qualified administrative expenses pursuant to the requirements in the TIF Act. The Authority will use these monies to pay for and reimburse the Authority for costs of administering the TIF district allowed by the TIF Act. The estimated amount of tax DRAFT JANUARY 5, 2021 5 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 increment revenue planned to pay administrative expense is shown in Figure 2-1. Anticipated administrative expenses of the TIF District include annual audit of the fund for TIF District, preparation of annual reporting, legal publication of annual report, and administration of the development agreement, among other qualified purposes. 2.04.5 County Road Costs The proposed development will not substantially increase the use of county roads and necessitate the need to use tax increments to pay for county road improvements. 2.04.6 Bonded Indebtedness The total amount of bonds estimated to be issued is shown in Figure 2-1. The City will not issue any general obligation bonded indebtedness as a result of the TIF Plan. The Authority intends to use tax increment financing to reimburse the Developer on pay-as- you-go basis for Public Development Costs pursuant to a contract with the Developer. The City or the Authority may advance or loan money to finance expenditures under Section 469.176, subdivision 4 of the TIF Act, from the general funds of the City or the Authority or any other fund under which there is legal authority to do so, subject to the following provisions: (a) Not later than 60 days after money is transferred, advanced, or spent, whichever is earliest, the loan or advance must be authorized by resolution of the City or of the Authority, whichever has jurisdiction over the fund from which the advance or loan is authorized. (b) The resolution may generally grant to the City or the Authority the power to make interfund loans under one or more tax increment financing plans or for one or more districts. The resolution may be adopted before or after the adoption of the tax increment financing plan or the creation of the tax increment financing district from which the advance or loan is to be repaid. (c) The terms and conditions for repayment of the loan must be provided in writing. The written terms and conditions may be in any form, but must include, at a minimum, the principal amount, the interest rate, and maximum term. Written terms may be modified or amended in writing by the City or the Authority before the latest decertification of any tax increment financing district from which the interfund loan is to be repaid. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or 549.09 are from time to time adjusted. Loans or advances may be structured as draw - down or line -of -credit obligations of the lending fund. (d) The Authority shall report in the annual report submitted under Section 469.175, subdivision 6 of the TIF Act: (1) the amount of any interfund loan or advance made in a calendar year; and (2) any amendment of an interfund loan or advance made in a calendar year. 2.04.7 Election of First Year of Increment and Duration of TIF District The duration to collect and spend tax increments on eligible purposes is set at the maximum duration of 25 years after the date of receipt of the first tax increment or 26 years of tax increment collection. The first year of increment is elected to be year 2025. Based on the elected first year of increment, the estimated decertification date is 12/31/2050. 2.04.8 Estimated Impact on Other Taxing Jurisdictions Exhibits III and IV show the estimated impact on other taxing jurisdictions if the maximum DRAFT JANUARY 5, 2021 6 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 estimated retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City and the Authority believe that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The City and the Authority anticipate minimal impact of the proposed development on city -provided services. A manageable increase in water and sewer usage is expected. It is anticipated that there may be a slight but manageable increase in police and fire protection duties due to the development. 2.04.9 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. The Authority will include this statement with the request for certification to the County Auditor. ARTICLE III —ADMINISTERING THE TIF DISTRICT SECTION 3.01 FILING AND CERTIFICATION The filing and certification of the TIF Plan consists of the following steps: 1. Upon adoption of the TIF Plan by the City and the Authority, the Authority shall submit a copy of the TIF Plan to the Minnesota Department of Revenue and the Office of the State Auditor. 2. The Authority shall request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. SECTION 3.02 MODIFICATIONS OF THE TAX INCREMENT FINANCING PLAN The City and the Authority reserve the right to modify the TIF District and the TIF Plan. Under the TIF Act, the following actions can only be approved after satisfying all the necessary requirements for approval of the original TIF Plan (including notifications and public hearing): 1. any reduction or enlargement of geographic area of the Project or TIF District that does not meet the requirements of Section 469.175, subdivision 4, paragraph (e) of the TIF Act. 2. increase in amount of bonded indebtedness to be incurred; 3. a determination to capitalize interest on the debt if that determination was not a part of the original plan; 4. increase in the portion of the captured net tax capacity to be retained by the Authority; 5. increase in the estimate of the cost of the Project, including administrative expenses, that will be paid or financed with tax increment from the TIF District; or 6. designation of additional property to be acquired by the Authority. Other modifications can be made by resolution of the Authority. In addition, the original approval process does not apply if (1) the only modification is elimination of parcels from the TIF District and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City and the DRAFT JANUARY 5, 2021 7 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 Authority agree that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. Upon approval by the City, the Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. SECTION 3.03 4-YEAR KNOCKDOWN RULE Since the TIF District is anticipated to consist of a single parcel, development of the Project as planned prevents any loss of value from the 4-Year Knockdown Rule. The 4-Year Knockdown Rule requires that if after four years from certification of the TIF District no demolition, rehabilitation, renovation or site improvement, including a qualified improvement of an adjacent street, has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City, Authority, or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. SECTION 3.04 POOLING/5-YEAR RULE As permitted under Section 469.1763, subdivision 2(b) and subdivision 3(a)(5) of the TIF Act, any expenditures of increment from the TIF District to pay the cost of a "housing project" as defined in Section 469.174, subdivision 11 of the TIF Act will be treated as an expenditure within the district for the purposes of the "pooling rules" and the "five year rule". It is not anticipated that tax increments will be spent outside the TIF District (except allowable administrative expenses), but such expenditures are expressly authorized in the TIF Plan. SECTION 3.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The Authority will comply with the annual reporting requirements of the TIF Act pursuant to the guidelines of the Office of the State Auditor. Under current law, the Authority must prepare and submit a report on the TIF district on or before August 1 of each year. The Authority must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district. The reporting and disclosure requirements outlined in this section begin with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returned to the county for redistribution. Failure to meet these requirements, as determined by the State Auditors Office, may result in suspension of distribution of tax increment. SECTION 3.06 BUSINESS SUBSIDY COMPLIANCE The Project is exempt from the business subsidies requirements specified in Minnesota Statutes, Sections 116J.993 to 116J.995 because the intended assistance for the Project specified in this document is anticipated to be 100% for housing assistance. DRAFT JANUARY 5, 2021 8 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 Exhibit I City of Monticello Tax Increment Financing District No. 1-42 Present Value Analysis 3 Section 469.175(3)(2) of the TIF Act Headwaters Apartment Project 1 Estimated Future Market Value w/ Tax Increment Financing 16,620,319 ' 2 Payable 2021 Market Value 71,932 3 Market Value Increase (1-2) 16,548,387 4 Present Value of Future Tax Increments 2,928,146 5 Market Value Increase Less PV of Tax Increments 13,620,241 6 Estimated Future Market Value w/o Tax Increment Financing 92,248 ' 7 Payable 2021 Market Value 71,932 8 Market Value Increase (6-7) 20,316 9 Increase in MV From TIF 13,599,925 Z ' Assume 1.00% annual appreciation over 26 year life of district. Z Statutory compliance achieved if increase in market value from TIF (Line 9) is greater than or equal to zero. 3 Section 469.175(3)(2) of the TIF Act does not require this present value analysis for a housing tax increment financing district. This analysis is provided for information purposes. DRAFT JANUARY 5, 2021 9 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 Exhibit II City of Monticello Monticello Tax Increment Financing District No. 1-42 (Housing) Headwaters Apartment Project Projected Tax Increment Cash Flow Less Taxable Present TIF Taxes Original Captured Original Less Market Net Tax Captured Available Value of District Payable Value Capacity Net Tax Net Tax Tax Rate TIF State TIF e Available Year Year Capacity Capacity a z Fee s (TMV)' a TIF 1 2025 13,089,600 163,620 899 162,721 95.949% 156,129 (562) 155,567 142,630 2 2026 13,220,496 165,256 899 164,357 95.949% 157,699 (568) 157,131 282,468 3 2027 13,352,701 166,909 899 166,010 95.949% 159,285 (573) 158,712 419,568 4 2028 13,486,228 168,578 899 167,679 95.949% 160,886 (579) 160,307 553,983 5 2029 13,621,090 170,264 899 169,364 95.949% 162,504 (585) 161,919 685,767 6 2030 13,757,301 171,966 899 171,067 95.949% 164,137 (591) 163,546 814,970 7 2031 13,894,874 173,686 899 172,787 95.949% 165,787 (597) 165,190 941,644 8 2032 14,033,823 175,423 899 174,524 95.949% 167,454 (603) 166,851 1,065,837 9 2033 14,174,161 177,177 899 176,278 95.949% 169,137 (609) 168,528 1,187,598 10 2034 14,315,903 178,949 899 178,050 95.949% 170,837 (615) 170,222 1,306,975 11 2035 14,459,062 180,738 899 179,839 95.949% 172,554 (621) 171,933 1,424,014 12 2036 14,603,652 182,546 899 181,647 95.949% 174,288 (627) 173,661 1,538,761 13 2037 14,749,689 184,371 899 183,472 95.949% 176,040 (634) 175,406 1,651,262 14 2038 14,897,186 186,215 899 185,316 95.949% 177,809 (640) 177,169 1,761,559 15 2039 15,046,158 188,077 899 187,178 95.949% 179,595 (647) 178,948 1,869,695 16 2040 15,196,619 189,958 899 189,059 95.949% 181,400 (653) 180,747 1,975,714 17 2041 15,348,585 191,857 899 190,958 95.949% 183,222 (660) 182,562 2,079,656 18 2042 15,502,071 193,776 899 192,877 95.949% 185,063 (666) 184,397 2,181,563 19 2043 15,657,092 195,714 899 194,815 95.949% 186,923 (673) 186,250 2,281,473 20 2044 15,813,663 197,671 899 196,772 95.949% 188,800 (680) 188,120 2,379,427 21 2045 15,971,800 199,647 899 198,748 95.949% 190,697 (687) 190,010 2,475,462 22 2046 16,131,518 201,644 899 200,745 95.949% 192,613 (693) 191,920 2,569,616 23 2047 16,292,833 203,660 899 202,761 95.949% 194,547 (700) 193,847 2,661,925 24 2048 16,455,761 205,697 899 204,798 95.949% 196,502 (707) 195,795 2,752,427 25 2049 16,620,319 207,754 899 206,855 95.949% 198,475 (715) 197,760 2,841,155 26 2050 16,786,522 209,832 899 208,932 95.949 0 200,469 (722)1 199,747 2,928,146 4,612,852 (16,606) 4,596,246 2,928,146 TOTAL = Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $71,932, NTC calculated for Apartment classification. 5 Present value is calculated based on semi-annual payments, 3.0% rate, and date of 12/1/2022. 6 Available TIF is after deducting State Auditor Fee of 0.36%. DRAFT JANUARY 5, 2021 10 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 Exhibit III City of Monticello Monticello Tax Increment Financing District No. 1-42 Impact on Other Taxing Jurisdictions (Taxes Payable 2021) Headwaters Apartment Project Annual Tax Increment Estimated Annual Captured Tax Capacity (Full Development) $187,178 Payable 2021 Local Tax Rate 95.949% Estimated Annual Tax Increment $179,595 Percent of Tax Base Net Tax Captured Percent of Capacity (NTC) Tax Capacity Total NTC City of Monticello Wright County ISD # 882 31,796,124 191,418,817 42,943,725 187,178 187,178 187,178 0.59% 0.10% 0.44% Dollar Impact of Affected Taxing Jurisdictions Net Tax Tax Added Local Capacity % of Total Increment Tax Rate (NTC) Share City of Monticello 35.659% 37.165% 66,746 0.210% Wright County 43.719% 45.565% 81,832 0.043% ISD # 882 15.390% 16.040% 28,807 0.067% Other 1.181% 1.231% 2,211 Totals 95.949% 100.000% 179,596 NOTE NO. 1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even if the City does not create the Tax Increment District, the creation of the District will reduce tax capacities and increase the local tax rate as illustrated in the above tables. NOTE NO. 2: Assuming that NONE of the captured tax capacity would be available to the taxing jurisdiction if the City did not create the Tax Increment District, then the plan has virtually no initial effect on the tax capacities of the taxing jurisdictions. However, once the District is established, allowable costs paid from the increments, and the District is terminated, all taxing jurisdictions will experience an increase in their tax base. DRAFT JANUARY 5, 2021 11 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 Exhibit IV City of Monticello Tax Increment Financing (Housing) District No. 1-42 Headwaters Apartment Project Estimated Tax Increments Over Maximum Life of District Based on Pay 2027 Tax Rate = 95.949% 35.659% 43.779% 75.390% 7.787% New Estimated City County School Other TIF Taxes Taxable New Base Captured Total TIF TIF TIF TIF District Payable Market Tax Tax Tax Tax Related Related Related Related Year Year Value Capacity Capacity Capacity Increment Share Share Share Share 1 2025 13,089,600 163,620 899 162,721 156,129 58,025 71,140 25,043 1,921 2 2026 13,220,496 165,256 899 164,357 157,699 58,608 71,855 25,295 1,941 3 2027 13,352,701 166,909 899 166,010 159,285 59,197 72,578 25,549 1,961 4 2028 13,486,228 168,578 899 167,679 160,886 59,793 73,307 25,806 1,980 5 2029 13,621,090 170,264 899 169,364 162,504 60,394 74,044 26,065 2,001 6 2030 13,757,301 171,966 899 171,067 164,137 61,001 74,789 26,327 2,020 7 2031 13,894,874 173,686 899 172,787 165,787 61,614 75,541 26,592 2,040 8 2032 14,033,823 175,423 899 174,524 167,454 62,233 76,300 26,859 2,062 9 2033 14,174,161 177,177 899 176,278 169,137 62,859 77,067 27,129 2,082 10 2034 14,315,903 178,949 899 178,050 170,837 63,491 77,842 27,402 2,102 11 2035 14,459,062 180,738 899 179,839 172,554 64,129 78,624 27,677 2,124 12 2036 14,603,652 182,546 899 181,647 174,288 64,773 79,414 27,955 2,146 13 2037 14,749,689 184,371 899 183,472 176,040 65,424 80,212 28,236 2,168 14 2038 14,897,186 186,215 899 185,316 177,809 66,082 81,018 28,520 2,189 15 2039 15,046,158 188,077 899 187,178 179,595 66,746 81,832 28,807 2,210 16 2040 15,196,619 189,958 899 189,059 181,400 67,416 82,655 29,096 2,233 17 2041 15,348,585 191,857 899 190,958 183,222 68,094 83,485 29,388 2,255 18 2042 15,502,071 193,776 899 192,877 185,063 68,778 84,324 29,684 2,277 19 2043 15,657,092 195,714 899 194,815 186,923 69,469 85,171 29,982 2,301 20 2044 15,813,663 197,671 899 196,772 188,800 70,167 86,027 30,283 2,323 21 2045 15,971,800 199,647 899 198,748 190,697 70,872 86,891 30,587 2,347 22 2046 16,131,518 201,644 899 200,745 192,613 71,584 87,764 30,895 2,370 23 2047 16,292,833 203,660 899 202,761 194,547 72,303 88,645 31,205 2,394 24 2048 16,455,761 205,697 899 204,798 196,502 73,029 89,536 31,518 2,419 25 2049 16,620,319 207,754 899 206,855 198,475 73,762 90,435 31,835 2,443 26 2050 16,786,522 209,832 899 208,932 200,469 74,503 91,343 32,155 2,468 Total 4,612,852 1,714,346 2,101,839 739,890 56,777 Note: The Estimated Total Tax Increment shown above is before deducting the State Auditor's fee, which is payable at a rate of 0.36% of the Total Tax Increment collected. Exhibit II provides Estimated Total Tax Increment after deducting for the State Auditor's fee. DRAFT JANUARY 5, 2021 12 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 EXHIBIT V Boundaries of Tax Increment Financing District No. 1-42 within Central Monticello Redevelopment Project No. 1 TIF District is inclusive of parcels within the TIF District and the adjacent roads and right of way V) -4 - U a--+ V) 0 C') N c1 LL N O Q O L a DRAFT JANUARY S, 2021 13 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-42 EXHIBIT VI Boundaries of Central Monticello Redevelopment Project No. I n [D QJ as 0 rC � a o C T n Cri p 0 0 LA 2 (D 3 rr rD n 3> M w 4t DRAFT JANUARY 5, 2021 14 DRAFT CITY OF MONTICELLO, MINNESOTA TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 (HEADWATERS VILLAS PROJECT) CENTRAL MONTICELLO REDEVELOPMENT PROJECT NO. 1 PROPOSED TO BE ADOPTED BY CITY OF MONTICELLO AND CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY (EDA) PUBLIC HEARING DATE: , 2022 PLAN APPROVED BY EDA DATE: , 2022 PLAN APPROVED BY CITY COUNCIL DATE: , 2022 PLAN CERTIFICATION REQUEST DATE: , 2022 PLAN CERTIFIED DATE: , 2022 NORTHLAND y SECURITIES Northland Securities, Inc. 150 South Fifth Street, Suite 3300 Minneapolis, MN 55402 (800)851-2920 Member NASD and SIPC Registered with SEC and MSRB TABLE OF CONTENTS ARTICLE I - INTRODUCTION AND DEFINITIONS.........................................................I Section 1.01 Introduction......................................................................................1 Section 1.02 Definitions.........................................................................................1 Section 1.03 Plan Preparation...............................................................................1 ARTICLE II - TAX INCREMENT FINANCING PLAN.........................................................2 Section 2.01 Statutory Authority..........................................................................2 Section 2.02 Planned Development.....................................................................2 2.02.1 Project Description......................................................................................3 2.02.2 City Plans and Development Program .................................................... 3 2.02.3 Land Acquisition.........................................................................................3 2.02.4 Development Activities..............................................................................2 2.02.5 Need for Tax Increment Financing........................................................... 2 Section 2.03 Tax Increment Financing District...................................................3 2.03.1 Designation.................................................................................................. 3 2.03.2 Boundaries of TIF District..........................................................................3 2.03.3 Type of District............................................................................................3 Section 2.04 Plan for Use of Tax Increment........................................................3 2.04.1 Estimated Tax Increment............................................................................3 2.04.2 Project Costs.................................................................................................4 2.04.3 Estimated Sources and Uses of Funds.....................................................5 Figure2-1......................................................................................................5 2.04.4 Administrative Expense.............................................................................5 2.04.5 County Road Costs.....................................................................................6 2.04.6 Bonded Indebtedness................................................................................. 6 2.04.7 Election of First Year of Increment and Duration of TIF District ......... 6 2.04.8 Estimated Impact on Other Taxing Jurisdictions...................................6 2.04.9 Prior Planned Improvements.................................................................... 7 ARTICLE III —ADMINISTERING THE TIF DISTRICT......................................................7 Section 3.01 Filing and Certification....................................................................7 Section 3.02 Modifications of the Tax Increment Financing Plan....................7 Section 3.03 4-Year Knockdown Rule..................................................................8 Section 3.04 Pooling/5-Year Rule..........................................................................8 Section 3.05 Financial Reporting and Disclosure Requirements .....................8 Section 3.06 Business Subsidy Compliance........................................................8 EXHIBITS........................................................................................................................... 9 Exhibit I - Present Value Analysis............................................................................9 Exhibit II - Projected Tax Increment......................................................................10 Exhibit III - Impact on Other Taxing Jurisdictions..............................................11 Exhibit IV - Estimated Tax Increment Over Life of District...............................12 Exhibit V - Map of TIF District...............................................................................13 Exhibit VI - Map of Central Monticello Redevelopment Project No. 1 ............14 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 ARTICLE I — INTRODUCTION AND DEFINITIONS SECTION 1.01 INTRODUCTION The City of Monticello and the City of Monticello Economic Development Authority propose to provide tax increment financing assistance through the establishment of Tax Increment Financing (Housing) District No. 1-43 to assist with the financing of certain project costs for the construction of approximately 60 rental villa housing units, with an affordable component, by a private developer. This document contains the plan for achieving the objectives of the Central Monticello Redevelopment Project No. 1 through the establishment of Tax Increment Financing District No. 1-43. SECTION 1.02 DEFINITIONS For the purposes of this document, the terms below have the meanings given in this section, unless the context in which they are used indicates a different meaning: 1. "Authority" means the City of Monticello Economic Development Authority. 2. "City" means the City of Monticello, Minnesota. 3. "City Council" means the City Council of the City. 4. "County" means Wright County, Minnesota. 5. "Developer" means the private party undertaking construction within the TIF District. 6. "Public Development Costs" means the cost of the development activities that will or are expected to occur within the Project Area or the TIF District. 7. "Project" means the construction by the Developer of approximately 60 rental villa housing units, to be located at the corner of Golf Course Road and 7th Street West within the City. 8. "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project, as the same may, from time to time, be amended or supplemented. 9. "Redevelopment Project" means Central Monticello Redevelopment Project No. 1 of the Authority, as the same may, from time to time, be amended or supplemented. 10. "School District" means Independent School District No. 882 (Monticello Public Schools). 11. "State" means the State of Minnesota. 12. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. 13. "TIF District" means Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project). 14. "TIF Plan" means the tax increment financing plan for the TIF District (this document). SECTION 1.03 PLAN PREPARATION The document was prepared for the City and the Authority by Northland Securities, Inc. DRAFT JANUARY S, 2021 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 ARTICLE II - TAX INCREMENT FINANCING PLAN SECTION 2.01 STATUTORY AUTHORITY The TIF District and the TIF Plan are established under the authority of the TIF Act. SECTION 2.02 PLANNED DEVELOPMENT 2.02.1 Project Description The Project includes construction of approximately 60 rental villa housing units, to be located at the corner of Golf Course Road and 7th Street West within the City. The proposed single story living units will include two bedrooms and two -car garages. The property where the Project will be built is currently vacant and owned by the Authority. 2.02.2 City Plans and Development Program In addition to achieving the objectives of the Redevelopment Plan, the Project is consistent with and works to achieve the development objectives of the City. The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The City has adopted land use controls to guide the use of property. The proposed development plans for the Project in the TIF District have been reviewed by the Planning Commission and the City Council. 2.02.3 Land Acquisition The Authority owns the land within the TIF District. The Authority plans to sell/convey land to the Developer for the Project. 2.02.4 Development Activities As of the date of approval of this TIF Plan, there are no development activities proposed in this TIF Plan that are subject to contracts. 2.02.5 Need for Tax Increment Financing In various materials the Developer has demonstrated that the proposed use of tax increment financing is needed to offset the high construction costs of high -quality low- to moderate - income housing and associated infrastructure required to support the facility. Without the proposed assistance, these initial up -front costs would make it infeasible for the Developer to be able to charge the affordable rents required for low -to moderate -income residents. Thus, it is the opinion of the City and the Authority that the proposed development would not reasonably be expected to occur solely through private investment within the foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the estimated tax increments for the maximum duration of the TIF District permitted by the TIF Plan. A comparative analysis of estimated market values both with and without establishment of the TIF District and the use of tax increments has been performed as described above and is shown in Exhibit I. This analysis, which is not required by the TIF Act for approval of a housing district, indicates that the increase in estimated market value of the proposed development (less the present value of the estimated tax increments for the maximum duration permitted by the TIF Plan) exceeds the estimated market value of the site prior to the establishment of the TIF District. DRAFT JANUARY S, 2021 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 SECTION 2.03 TAX INCREMENT FINANCING DISTRICT 2.03.1 Designation This TIF District is designated Tax Increment Financing (Housing) District No. 1-43 (Headwaters Villas Project). 2.03.2 Boundaries of TIF District The boundaries of the TIF District are depicted in Exhibit V. The TIF District will include a portion of what is currently parcel 155-033-900-010, along with the adjacent roads and right-of- way. The property to be included within the TIF District is described as follows: • [A description will be inserted here.] The property will need to be platted and a new parcel identification number assigned by the County prior to the certification of the TIF District. 2.03.3 Type of District The TIF District is designated as a "housing" district pursuant to Section 469.174, subdivision 11 of the TIF Act. For the designation, of a tax increment financing housing district, the Developer of the Project will need to commit to the following: 1. Satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. This requirement applies for the duration of the tax increment financing district. The Fiscal Year 2021 Area Median Family Income (AMI) for the County is $104,900. The developer will commit to provide (a) 40% or more of units for occupancy by persons at 60% or less of AMI (based on household size). These income thresholds may change over the life of the TIF District. 2. Provide that no more than 20% of the square footage of building to receive assistance from tax increments consist of commercial, retail, or other nonresidential uses. Revenue derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in Section 469.174, subdivision 11 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the Authority may be included in the cost of a housing project. 3. Failure to comply with these income limitations is subject to the enforcement provisions of Section 469.1771 of the TIF Act. SECTION 2.04 PLAN FOR USE OF TAX INCREMENT 2.04. 7 Estimated Tax Increment The original net tax capacity of value of the TIF District will be set by the County upon request for certification. For the purposes of this Plan, the estimated original net tax capacity is $3,928. This amount is estimated based on the most recent published estimated market value of $386,137 for Parcel 155-033-900-010; with tax capacity value calculated for residential rental property and the assumption that 81.4% of the valuation of this existing parcel will be attributed to the new parcel that will be established for the Project and included in the TIF District. The total tax capacity value of the property for the first estimated year of tax increment (for taxes payable in 2025) is estimated to be $156,234. This amount is based on a total estimated market value of $12,498,750 with property classified as residential rental property. The estimated difference between the total tax capacity value after development completion (for taxes payable in 2025) and the original net tax capacity value is the captured tax capacity value ($152,307) for the creation of tax increment. The total local tax rate for taxes payable in 2021 is 95.949%. The TIF Plan assumes that this rate DRAFT JANUARY 5, 2021 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 will be set as the original local tax rate for the TIF District. At the time of the certification of the original net tax capacity for the TIF District, the county auditor shall certify the original local tax rate that applies to the TIF District. The original local tax rate is the sum of all the local tax rates, excluding that portion of the school rate attributable to the general education levy under Minnesota Statutes section 126C.13, that apply to a property in the TIF District. The local tax rate to be certified is the rate in effect for the same taxes payable year applicable to the tax capacity values certified as the TIF District's original tax capacity. The resulting tax capacity rate is the original local tax rate for the life of the TIF District. Under these assumptions, the estimated annual tax increment will be $146,137 in the first year of tax increment collection. The actual tax increment will vary according to the certified original tax capacity value and original tax rate, the actual property value produced by the proposed development and the changes in property value and State tax policy over the life of the district. It is the intent of the City and the Authority to retain 100% of the captured tax capacity value for the duration of the TIF district. Exhibit II contains the estimated tax increment over the life of the District. 2.04.2 Public Development Costs The Authority will use tax increment to pay Public Development Costs. The Authority anticipates the use of tax increment to pay administrative expenses for the TIF District and to reimburse the Authority and the Developer on a pay -go basis for Public Development Costs. A contract between the Authority and the Developer will define the means for verifying Public Development Costs to be incurred by the Developer that will be eligible for reimbursement from tax increments and the means of disbursing tax increments collected by the Authority to the Developer. The Authority may also use tax increments to pay financing costs. The interest rate payable on bonds, the definition of bonds includes tax increment financing revenue notes, to be issued will be set pursuant to a contract with the Developer. The City and the Authority reserve the right to modify the TIF Plan to provide authority to expend tax increment from the TIF District on other qualified housing projects that meet the criteria for establishing a housing TIF district. Section 469.174, subdivision 11 of the TIF Act defines a housing districts consisting of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income. The requirements for the establishment of a housing TIF district are contained in Section 469.1761 of the TIF Act. The primary criteria are income related. The criteria are different for owned and rental housing. The practical application of this authority includes: • The use of tax increment is not limited by pooling restrictions or the five-year rule. • The tax increment can be spent on activities outside of the TIF district, but within the Development District No. 1. • This authority does not extend the maximum statutory duration of the TIF district. • The tax increment must be used solely to finance the cost of the "housing project" as defined by the TIF Act. The cost of public improvements directly related to the housing project and the allocated administrative expenses of the Authority may be included in the cost of the housing project. • No more than 20% of the square footage of buildings that receive TIF assistance may consist of commercial, retail, or other nonresidential uses. Potential applications of this authority include: • Individual housing projects avoiding the need for a new TIF district. DRAFT JANUARY S, 2021 4 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 • Supplementing the revenues of another housing TIF district. • Assistance for the renovation of existing housing. • Acquisition of land for housing. • Assistance to make public improvements more affordable. 2.04.3 Estimated Sources and Uses of Funds The estimated sources of revenue, along with the estimated Public Development Costs of the TIF District, are itemized in Figure 2-1 that follows. Such costs are eligible for reimbursement from tax increments from the TIF District. The City and Authority reserve the right to administratively adjust the amount of any of the Estimated Tax Increment Project Cost line items listed in Figure 2-1, so long as the total Estimated Tax Increment Project Costs amount, not including financing costs, is not increased. FIGURE 2-1 ESTIMATED SOURCES AND USES OF FUNDS Total Estimated Tax Increment Revenues (from tax increment generated by the district) Tax increment revenues distributed from the County 5,733,000 Interest and investment earnings 60,000 Sales/lease proceeds - Market value homestead credit - Total Estimated Tax Increment Revenues 5,793,000 Estimated Project/Financing Costs (to be paid or financed with tax increment) Project costs Land/building acquisition 1,680,670 Site improvements/preparation costs Utilities - Other public improvements - Construction of affordable housing 3,179,330 Small city authorized costs, if not already included above - Administrative costs 100,000 Estimated Tax Increment Project Costs 4,960,000 Estimated financing costs Interest expense 833,000 Total Estimated Project/Financing Costs to be Paid from Tax Increment 5,793,000 Estimated Financing Total amount of bonds to be issued 2.04.4 Administrative Expense 5,793,000 The Authority reserves the right to spend up to ten percent (10%) of tax increment revenues distributed from the County on qualified administrative expenses pursuant to the requirements in the TIF Act. The Authority will use these monies to pay for and reimburse the Authority for costs of administering the TIF district allowed by the TIF Act. The estimated amount of tax DRAFT JANUARY 5, 2021 5 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 increment revenue planned to pay administrative expense is shown in Figure 2-1. Anticipated administrative expenses of the TIF District include annual audit of the fund for TIF District, preparation of annual reporting, legal publication of annual report, and administration of the development agreement, among other qualified purposes. 2.04.5 County Road Costs The proposed development will not substantially increase the use of county roads and necessitate the need to use tax increments to pay for county road improvements. 2.04.6 Bonded Indebtedness The total amount of bonds estimated to be issued is shown in Figure 2-1. The City will not issue any general obligation bonded indebtedness as a result of the TIF Plan. The Authority intends to use tax increment financing to reimburse the Developer on pay-as- you-go basis for Public Development Costs pursuant to a contract with the Developer. The City or the Authority may advance or loan money to finance expenditures under Section 469.176, subdivision 4 of the TIF Act, from the general funds of the City or the Authority or any other fund under which there is legal authority to do so, subject to the following provisions: (a) Not later than 60 days after money is transferred, advanced, or spent, whichever is earliest, the loan or advance must be authorized by resolution of the City or of the Authority, whichever has jurisdiction over the fund from which the advance or loan is authorized. (b) The resolution may generally grant to the City or the Authority the power to make interfund loans under one or more tax increment financing plans or for one or more districts. The resolution may be adopted before or after the adoption of the tax increment financing plan or the creation of the tax increment financing district from which the advance or loan is to be repaid. (c) The terms and conditions for repayment of the loan must be provided in writing. The written terms and conditions may be in any form, but must include, at a minimum, the principal amount, the interest rate, and maximum term. Written terms may be modified or amended in writing by the City or the Authority before the latest decertification of any tax increment financing district from which the interfund loan is to be repaid. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or 549.09 are from time to time adjusted. Loans or advances may be structured as draw - down or line -of -credit obligations of the lending fund. (d) The Authority shall report in the annual report submitted under Section 469.175, subdivision 6 of the TIF Act: (1) the amount of any interfund loan or advance made in a calendar year; and (2) any amendment of an interfund loan or advance made in a calendar year. 2.04.7 Election of First Year of Increment and Duration of TIF District The duration to collect and spend tax increments on eligible purposes is set at the maximum duration of 25 years after the date of receipt of the first tax increment or 26 years of tax increment collection. The first year of increment is elected to be year 2025. Based on the elected first year of increment, the estimated decertification date is 12/31/2050. 2.04.8 Estimated Impact on Other Taxing Jurisdictions Exhibits III and IV show the estimated impact on other taxing jurisdictions if the maximum DRAFT JANUARY 5, 2021 6 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 estimated retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City and the Authority believe that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The City and the Authority anticipate minimal impact of the proposed development on city -provided services. A manageable increase in water and sewer usage is expected. It is anticipated that there may be a slight but manageable increase in police and fire protection duties due to the development. 2.04.9 Prior Planned Improvements There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. The Authority will include this statement with the request for certification to the County Auditor. ARTICLE III —ADMINISTERING THE TIF DISTRICT SECTION 3.01 FILING AND CERTIFICATION The filing and certification of the TIF Plan consists of the following steps: 1. Upon adoption of the TIF Plan by the City and the Authority, the Authority shall submit a copy of the TIF Plan to the Minnesota Department of Revenue and the Office of the State Auditor. 2. The Authority shall request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. SECTION 3.02 MODIFICATIONS OF THE TAX INCREMENT FINANCING PLAN The City and the Authority reserve the right to modify the TIF District and the TIF Plan. Under the TIF Act, the following actions can only be approved after satisfying all the necessary requirements for approval of the original TIF Plan (including notifications and public hearing): 1. any reduction or enlargement of geographic area of the Project or TIF District that does not meet the requirements of Section 469.175, subdivision 4, paragraph (e) of the TIF Act. 2. increase in amount of bonded indebtedness to be incurred; 3. a determination to capitalize interest on the debt if that determination was not a part of the original plan; 4. increase in the portion of the captured net tax capacity to be retained by the Authority; 5. increase in the estimate of the cost of the Project, including administrative expenses, that will be paid or financed with tax increment from the TIF District; or 6. designation of additional property to be acquired by the Authority. Other modifications can be made by resolution of the Authority. In addition, the original approval process does not apply if (1) the only modification is elimination of parcels from the TIF District and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City and the DRAFT JANUARY 5, 2021 7 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 Authority agree that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. Upon approval by the City, the Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. SECTION 3.03 4-YEAR KNOCKDOWN RULE Since the TIF District is anticipated to consist of a single parcel, development of the Project as planned prevents any loss of value from the 4-Year Knockdown Rule. The 4-Year Knockdown Rule requires that if after four years from certification of the TIF District no demolition, rehabilitation, renovation or site improvement, including a qualified improvement of an adjacent street, has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City, Authority, or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. SECTION 3.04 POOLING/5-YEAR RULE As permitted under Section 469.1763, subdivision 2(b) and subdivision 3(a)(5) of the TIF Act, any expenditures of increment from the TIF District to pay the cost of a "housing project" as defined in Section 469.174, subdivision 11 of the TIF Act will be treated as an expenditure within the district for the purposes of the "pooling rules" and the "five year rule". It is not anticipated that tax increments will be spent outside the TIF District (except allowable administrative expenses), but such expenditures are expressly authorized in the TIF Plan. SECTION 3.05 FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS The Authority will comply with the annual reporting requirements of the TIF Act pursuant to the guidelines of the Office of the State Auditor. Under current law, the Authority must prepare and submit a report on the TIF district on or before August 1 of each year. The Authority must also annually publish in a newspaper of general circulation in the City an annual statement for each tax increment financing district. The reporting and disclosure requirements outlined in this section begin with the year the district was certified, and shall end in the year in which both the district has been decertified and all tax increments have been spent or returned to the county for redistribution. Failure to meet these requirements, as determined by the State Auditors Office, may result in suspension of distribution of tax increment. SECTION 3.06 BUSINESS SUBSIDY COMPLIANCE The Project is exempt from the business subsidies requirements specified in Minnesota Statutes, Sections 116J.993 to 116J.995 because the intended assistance for the Project specified in this document is anticipated to be 100% for housing assistance. DRAFT JANUARY 5, 2021 8 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 Exhibit I City of Monticello Tax Increment Financing District No. 1-43 Present Value Analysis 3 Section 469.175(3)(2) of the TIF Act Headwaters Villas Project 1 Estimated Future Market Value w/ Tax Increment Financing 21,160,128 ' 2 Payable 2021 Market Value 314,205 3 Market Value Increase (1-2) 20,845,923 4 Present Value of Future Tax Increments 3,637,507 5 Market Value Increase Less PV of Tax Increments 17,208,416 6 Estimated Future Market Value w/o Tax Increment Financing 402,947 ' 7 Payable 2021 Market Value 314,205 8 Market Value Increase (6-7) 88,742 9 Increase in MV From TIF 17,119,674 Z ' Assume 1.00% annual appreciation over 26 year life of district. Z Statutory compliance achieved if increase in market value from TIF (Line 9) is greater than or equal to zero. 3 Section 469.175(3)(2) of the TIF Act does not require this present value analysis for a housing tax increment financing district. This analysis is provided for information purposes. DRAFT JANUARY 5, 2021 9 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 Exhibit II City of Monticello Monticello Tax Increment Financing District No. 1-43 (Housing) Headwaters Villas Project Projected Tax Increment Cash Flow Less Taxable Present TIF Taxes Original Captured Original Less Market Net Tax Captured Available Value of District Payable Net Tax Net Tax Tax Rate State Year Year Value Capacity Capacity Capacity a z TIF Fee TIF Available (TMV)' a TIF s 1 2025 12,498,750 156,234 3,928 152,307 95.949% 146,137 (526) 145,611 133,502 2 2026 16,831,650 210,396 3,928 206,468 95.949% 198,104 (713) 197,391 309,168 3 2027 16,999,967 212,500 3,928 208,572 95.949% 200,123 (720) 199,403 481,418 4 2028 17,169,966 214,625 3,928 210,697 95.949% 202,162 (728) 201,434 650,319 5 2029 17,341,666 216,771 3,928 212,843 95.949% 204,221 (735) 203,486 815,934 6 2030 17,515,082 218,939 3,928 215,011 95.949% 206,301 (743) 205,558 978,327 7 2031 17,690,233 221,128 3,928 217,200 95.949% 208,402 (750) 207,652 1,137,561 8 2032 17,867,136 223,339 3,928 219,412 95.949% 210,523 (758) 209,765 1,293,697 9 2033 18,045,807 225,573 3,928 221,645 95.949% 212,666 (766) 211,900 1,446,794 10 2034 18,226,265 227,828 3,928 223,901 95.949% 214,831 (773) 214,058 1,596,913 11 2035 18,408,528 230,107 3,928 226,179 95.949% 217,017 (781) 216,236 1,744,111 12 2036 18,592,613 232,408 3,928 228,480 95.949% 219,224 (789) 218,435 1,888,443 13 2037 18,778,539 234,732 3,928 230,804 95.949% 221,454 (797) 220,657 2,029,965 14 2038 18,966,325 237,079 3,928 233,151 95.949% 223,707 (805) 222,902 2,168,733 15 2039 19,155,988 239,450 3,928 235,522 95.949% 225,981 (814) 225,167 2,304,799 16 2040 19,347,548 241,844 3,928 237,917 95.949% 228,279 (822) 227,457 2,438,217 17 2041 19,541,023 244,263 3,928 240,335 95.949% 230,599 (830) 229,769 2,569,036 18 2042 19,736,433 246,705 3,928 242,778 95.949% 232,943 (839) 232,104 2,697,308 19 2043 19,933,798 249,172 3,928 245,245 95.949% 235,310 (847) 234,463 2,823,081 20 2044 20,133,136 251,664 3,928 247,737 95.949% 237,701 (856) 236,845 2,946,406 21 2045 20,334,467 254,181 3,928 250,253 95.949% 240,116 (864) 239,252 3,067,328 22 2046 20,537,812 256,723 3,928 252,795 95.949% 242,554 (873) 241,681 3,185,894 23 2047 20,743,190 259,290 3,928 255,362 95.949% 245,018 (882) 244,136 3,302,151 24 2048 20,950,622 261,883 3,928 257,955 95.949% 247,505 (891) 246,614 3,416,143 25 2049 21,160,128 264,502 3,928 260,574 95.949% 250,018 (900) 249,118 3,527,914 26 2050 21,371,729 267,147 3,928 263,219 95.949 0 252,556 (909)1 251,647 3,637,507 5,753,452 (20,712) 5,732,740 3,637,507 TOTAL = Key Assumptions for Cash Flow: 1 Taxable market value (TMV) annual growth assumption = 1.00% 2 Original Tax Rate estimated based on Taxes Payable Year 2021. 3 Election for captured tax capacity is 100.0% 4 Original Net Tax Capacity is calculated based on a TMV = $314,205, NTC calculated for Apartment classification. 5 Present value is calculated based on semi-annual payments, 3.0% rate, and date of 12/1/2022. 6 Available TIF is after deducting State Auditor Fee of 0.36%. DRAFT JANUARY 5, 2021 10 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 Exhibit III City of Monticello Monticello Tax Increment Financing District No. 1-43 Impact on Other Taxing Jurisdictions (Taxes Payable 2021) Headwaters Villas Project Annual Tax Increment Estimated Annual Captured Tax Capacity (Full Development) $235,522 Payable 2021 Local Tax Rate 95.949% Estimated Annual Tax Increment $225,981 Percent of Tax Base Net Tax Captured Percent of Capacity (NTC) Tax Capacity Total NTC City of Monticello Wright County ISD # 882 31,796,124 191,418,817 42,943,725 235,522 235,522 235,522 0.74% 0.12% 0.55% Dollar Impact of Affected Taxing Jurisdictions Net Tax Tax Added Local Capacity % of Total Increment Tax Rate (NTC) Share City of Monticello 35.659% 37.165% 83,985 0.264% Wright County 43.719% 45.565% 102,968 0.054% ISD # 882 15.390% 16.040% 36,247 0.084% Other 1.181 % 1.231 % 2,782 Totals 95.949% 100.000% 225,982 NOTE NO. 1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even if the City does not create the Tax Increment District, the creation of the District will reduce tax capacities and increase the local tax rate as illustrated in the above tables. NOTE NO. 2: Assuming that NONE of the captured tax capacity would be available to the taxing jurisdiction if the City did not create the Tax Increment District, then the plan has virtually no initial effect on the tax capacities of the taxing jurisdictions. However, once the District is established, allowable costs paid from the increments, and the District is terminated, all taxing jurisdictions will experience an increase in their tax base. DRAFT JANUARY 5, 2021 11 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 Exhibit IV City of Monticello Tax Increment Financing (Housing) District No. 1-43 Headwaters Villas Project Estimated Tax Increments Over Maximum Life of District Based on Pay 2021 Tax Rate = 95.949% 35.659% 43.719% 15.390% 1.781 New Estimated City County School Other TIF Taxes Taxable New Base Captured Total TIF TIF TIF TIF District Payable Market Tax Tax Tax Tax Related Related Related Related Year Year Value Capacity Capacity Capacity Increment Share Share Share Share 1 2025 12,498,750 156,234 3,928 152,307 146,137 54,311 66,587 23,440 1,799 2 2026 16,831,650 210,396 3,928 206,468 198,104 73,624 90,266 31,775 2,439 3 2027 16,999,967 212,500 3,928 208,572 200,123 74,375 91,186 32,099 2,463 4 2028 17,169,966 214,625 3,928 210,697 202,162 75,132 92,115 32,426 2,489 5 2029 17,341,666 216,771 3,928 212,843 204,221 75,898 93,053 32,757 2,513 6 2030 17,515,082 218,939 3,928 215,011 206,301 76,671 94,001 33,090 2,539 7 2031 17,690,233 221,128 3,928 217,200 208,402 77,451 94,958 33,427 2,566 8 2032 17,867,136 223,339 3,928 219,412 210,523 78,240 95,925 33,767 2,591 9 2033 18,045,807 225,573 3,928 221,645 212,666 79,036 96,901 34,111 2,618 10 2034 18,226,265 227,828 3,928 223,901 214,831 79,841 97,887 34,458 2,645 11 2035 18,408,528 230,107 3,928 226,179 217,017 80,653 98,883 34,809 2,672 12 2036 18,592,613 232,408 3,928 228,480 219,224 81,474 99,889 35,163 2,698 13 2037 18,778,539 234,732 3,928 230,804 221,454 82,302 100,905 35,521 2,726 14 2038 18,966,325 237,079 3,928 233,151 223,707 83,139 101,932 35,882 2,754 15 2039 19,155,988 239,450 3,928 235,522 225,981 83,985 102,968 36,247 2,781 16 2040 19,347,548 241,844 3,928 237,917 228,279 84,839 104,015 36,615 2,810 17 2041 19,541,023 244,263 3,928 240,335 230,599 85,701 105,072 36,988 2,838 18 2042 19,736,433 246,705 3,928 242,778 232,943 86,572 106,140 37,364 2,867 19 2043 19,933,798 249,172 3,928 245,245 235,310 87,452 107,219 37,743 2,896 20 2044 20,133,136 251,664 3,928 247,737 237,701 88,340 108,308 38,127 2,926 21 2045 20,334,467 254,181 3,928 250,253 240,116 89,238 109,408 38,514 2,956 22 2046 20,537,812 256,723 3,928 252,795 242,554 90,144 110,519 38,905 2,986 23 2047 20,743,190 259,290 3,928 255,362 245,018 91,060 111,642 39,300 3,016 24 2048 20,950,622 261,883 3,928 257,955 247,505 91,984 112,775 39,699 3,047 25 2049 21,160,128 264,502 3,928 260,574 250,018 92,918 113,920 40,102 3,078 26 2050 21,371,729 267,147 3,928 263,219 252,556 93,861 115,077 40,509 3,109 Total 5,753,452 2,138,241 2,621,551 922,838 70,822 Note: The Estimated Total Tax Increment shown above is before deducting the State Auditor's fee, which is payable at a rate of 0.36% of the Total Tax Increment collected. Exhibit II provides Estimated Total Tax Increment after deducting for the State Auditor's fee. DRAFT JANUARY S, 2021 12 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 EXHIBIT V Boundaries of Tax Increment Financing District No. 1-43 within Central Monticello Redevelopment Project No. 1 TIF District is inclusive of parcels within the TIF District and the adjacent roads and right of way V) -4 - U a--+ V) 0 C') N c1 LL N O Q O L a DRAFT JANUARY S, 2021 13 TAX INCREMENT FINANCING (HOUSING) DISTRICT NO. 1-43 EXHIBIT VI Boundaries of Central Monticello Redevelopment Project No. I n [D QJ as 0 rC � a o C T n Cri p 0 0 LA 2 (D 3 rr rD n 3> M w 4t DRAFT JANUARY 5, 2021 14 AS m.rmommula.i i ioo� { I r_ni sp�ec PROGRAM PURPOSE: The Monticello Fire Department's Fire Inspection Program is aimed at enhancing public safety through fire prevention. One of the best methods for preventing fires is to enforce fire code regulations. The program facilitates a proactive approach to enforcement that helps prevent fire & hazardous material emergencies that endanger lives and damage property. HISTORY OF THE INSPECTION PROGRAM • Began 15 years ago as a part-time program • In 2018 the city decided to pursue a more formal full- time program to make businesses safer for employees and customers • Hired a full-time fire marshal in late 2018 • Initiated surveys to all commercial properties in 2019 • Current Fire Inspection Program was developed and adopted by City Council in 2020. • Inspection schedule is developed based on hazard class • Frequency of inspections varies — shortest period is annually and longest period is every 5 years INSPECTION PROCESS • Inspection request letters mailed with a general checklist • Business calls to schedule inspection • Inspection occurs • Post inspection letter provided with details of findings and next steps • Business corrects findings — timeframe based on seriousness of the finding • Business schedules re -inspection • Re -inspection completed • Pre -plan is finalized M INSPECTION STATS: (June 1, 2020-Dec. 31, 2021) • Total number of inspections: 981 • Number of inspection complete: 260 • Number of violations found: 19,392 • Number of violations resolved: 17,304 • Number of inspection letters sent: 1056 • Estimated number of inspections remaining: 25 WONi��-- � L C COMMON VIOLATIONS FOUND: • Sprinkler or fire alarm systems not tested annually • No fire key box on building or wrong keys inside • Exit lighting not working or missing • Hood systems or cooking suppression systems not cleaned or inspected on a regular basis • Fire extinguishers not tagged or inspected annually : -F &\- W7,W-, -(' I,) WHERE WE ARE TODAY WITH THE PROGRAM: • Goal is to do all occupancies for the first time by the end of the year • 98% of the occupancies have received inspection notices • 95% of the top 3 hazard types have been inspected and issues corrected _ -s i 1�iNT OI C E L Z • M FIRES DEPT. Of � L C FOOD TRUCK INSPECTIONS: • Required by 2020 Fire Code • Is part of the permit application process • Will accept other cities inspections • Fee recommended $50 • Will begin Spring 2022 r-W �_ J mosaic_ o �-� Aja it 1 P& AFTER HOURS CONTACTS: • Tim, 763-245-1694 • Jeff, 763-331-5092 • Jarid, 507-384-1827 oNTicE�� 0 FIRE D E PST. t ii • re De — Monticello Fil — .I Planning Commission Agenda — 02/02/22 3C. Consideration to adopt the 2022-2025 Planning Commission Workplan REFERENCE AND BACKGROUND Staff is requesting that Planning Commission review and adopt the 2022-2025 Planning Commission Workplan. The purpose of the Planning Commission workplan is to connect the work of the Commission to the overall goals of the city and community. The workplan outlines activities of the Commission which lie beyond its required review of land use applications. The workplan is reflective of the direction of the Monticello 2040 Vision + Plan and the input of the Planning Commission. ALTERNATIVE ACTIONS 1. Motion to adopt the 2022-2025 Planning Commission workplan as drafted. 2. Motion to recommend changes to the 2022-2025 Planning Commission Workplan as directed by the Commission. 3. Motion of other. STAFF RECOMMENDATION Subject to any comment of the Commission, staff recommends adoption of the workplan. SUPPORTING DATA A. 2022-2025 Workplan, Draft 1 CITY OF Monticello Monticello Planning Commission 2021-2025 Workplan 2022 UPDATE - DRAFT The Monticello Planning Commission is established to advise the Mayor, Council and Community Development Department in matters concerning planning and land use matters; to review and make recommendations regarding the Monticello 2040 Vision + Plan, subdivision and zoning ordinances and other planning rules and regulations; to establish planning rules and regulations; and to conduct public hearings. Purpose Statement: The Planning Commission will support efforts to implement the Monticello 2040 Vision + Plan. The Planning Commission will work collaboratively with the City Council, other City boards and commissions, and community stakeholders in its work to achieve the Plan and the strategic goals of the city. Organizational & Training Activities: • Continue to support regional planning as identified by the Monticello 2040 Vision + Plan. o Implementation Chapter, Land Use, Growth & Orderly Annexation ■ Strategy 1.10.1- Consider the outcomes of regional planning initiatives and participate in processes resulting from the efforts of the Central Mississippi River Regional Planning Partnership. • Consistent with Policy 1.2 for Agency Coordination, monitor opportunity for engagement in roadway and pathway connectivity planning across jurisdictions. • Initiate and/or facilitate organizational projects in support of the Monticello 2040 Vision + Plan. o Implementation Chapter, Land Use, Growth & Orderly Annexation ■ Strategy 1.1.1 - Facilitate biannual meetings to serve as a "Development Forum" with interested property owners, realtors, builders and developers to discuss long-term planning, real estate market conditions. ■ Strategy 1.1.2 - Develop and publish a 'Development Opportunity Map' for use by the public, property owners and development community that identifies vacant and potential development opportunity sites, as well as pending and approved projects with the City and MOAA. Comprehensive Plan Activities: • Support the implementation of the Monticello 2040 Vision + Plan through implementation of the Goals, Policies and Strategies identified within the Plan. o Review industrial land inventory and planning consistent with Monticello 2040 Land Use policies for: 11Page ■ 1.1 (Land Use) and 8.1 (Economic Development) - Opportunity Areas ■ 1.2 - Growth Management (Land Use) ■ 5.1 - Land Supply and Employment Growth (Land Use) ■ 2.1 Diverse Economic Sectors (Economic Development) ■ 2.4 — Industrial and Business Site Analysis and Availability (Economic Development) • Support the priority projects set by the City Council, including the small area planning for Chelsea Commons (now The Pointes at Cedar) area and reinvestment in Block 52 in Downtown Monticello. Zoning Ordinance/Map Activities: Complete the recodification of the Monticello Zoning Ordinance, including consideration of amendments as recommended in the Goals, Policies and Strategies of the Implementation Chapter of the Monticello 2040 Comprehensive Plan. o Review and revise the zoning ordinance consistent with the 2022-2023 Zoning Ordinance Strategy priorities set by the Planning Commission per Appendix A. Noted priorities: Review opportunities for larger lot development and other life -cycle housing consistent with Monticello 2040 Policy 2.1 for Neighborhood Diversity and Life - cycle Housing. Review regulations for outdoor storage and open sales. • Consider amendments to the Monticello Official Zoning Map in support of the Monticello 2040 Vision + Plan guided land use, including, but not limited to the following. o Implementation Chapter, Land Use, Growth & Orderly Annexation ■ Strategy 2.7.1 - Amend the Zoning Map to be consistent with the Future Land Use Map and identify areas where mixed -density residential uses are appropriate. Subdivision Ordinance Activities: • Complete a review and amendment of the Monticello Subdivision Ordinance, including consideration of amendments as recommended in the Goals, Policies and Strategies of the Implementation Chapter of the Monticello Comprehensive Plan as follows. o Implementation Chapter, Land Use, Growth & Orderly Annexation ■ Strategy 2.5.1- Implement measures to slow down or "calm" traffic on local streets by using design techniques and measures to improve traffic safety, provide eyes on the street, and enhance the quality of life in Monticello's neighborhoods. ■ Strategy 3.8.2 - Require pedestrian and bike connections in new commercial development. ■ Strategy 6.5.1- Conduct regular review of parkland allocation and ensure sufficient amount of land is designated for parks and recreation activities in the City as the population increases. 21Page Research & City Department Update Topics As resources and time allow, the Planning Commission will consider research and information related to the following topic areas. Topic Annexation Process Transportation update Overview of economic development initiatives for business retention and employment attraction Status of municipal infrastructure Tree preservation —Zoning ordinance section 4.2 Discuss next steps for East Bertram Planning Area and Northwest Planning Areas identified in Monti 2040 31Page 2021-2022 Monticello Planning Commission Workplan: Monticello 2040 Vision + Plan Zoning Strategies ATTACHMENT A Goal 1: Growth & Change Policy 1.7: Zoning to Manage Growth Strategy 1.7.1 - Use Floor Area Ratio (FAR) and building height standards in commercial, industrial, and mixed - use areas to control the intensity of development. Use residential density standards (units/acre) in residential Goal 2: Complete Neighborhoods Policy 2.1: Neighborhood Diversity & Life -Cycle Housing Strategy 2.1.1 - Adopt zoning regulations that allow for a wider diversity of housing types, identify character defining features and encourage a center of focus for each neighborhood. Strategy 2.1.2 - Encourage opportunities for residents to stay in Monticello, with additional options for estate residential, senior living, and other life -cycle options. Goal 3: Commercial Centers and Corridors Policy 3.1: Connected Neighborhood Shopping Centers Strategy 3.1.1 - Amend zoning to allow small, neighborhood serving shopping centers and commercial uses in the Mixed Neighborhood (MN) land use designation. In the MN designation surrounding Downtown, these uses would typically be very small up to 1,000 square feet, while other areas designated MN may have larger neighborhoods which necessitate larger neighborhood centers. Policy 3.5: Redevelopment & Adaptation of Commercial Corridors Strategy 3.5.2 - Broaden permitted land uses in commercial centers to adapt to changing commercial demand while activating these spaces. Consider educational, medical office or other compatible uses. Policy 3.6: Commercial Building & Site Design Strategy 3.6.2 - Review and consider amendments to the City's commercial parking requirements based on changes in shopping and consumer behavior. Encourage the use of shared parking in along corridors and commercial centers, rather than independent parking lots on each commercial property. This can reduce the total land area dedicated to parking, result in more efficient land uses, and create a more pedestrian -friendly environment. Policy 3.8: Commercial Uses & Public Health Strategy 3.8.1 - Promote tood access by amending zoning regulations to allow retail and service based tood uses in all commercial districts and some residential districts as appropriate. These uses may include food stores, markets, community gardens and farmer's markets. Goal 5: Active Employment Centers Policy 5.4: Employment Generating Land Use Design & Regulation Strategy 5.4.1 - Utilize and maintain higher floor area ratio and building height allowances in certain industrial areas for manufacturing and warehouses than for other building types, due to their unique function and space requirements. Strategy 5.4.3 - Continue to support quality site design for industrial uses as an investment in the community and employment districts, including materials, landscaping and architecture. Policy 5.6: Industrial Land Use Compatibility Strategy 5.6.2 - Improve the visual quality and sustainability of industrial areas through requirements such as screening of storage areas, landscaping, prompt elimination of trash and roadside debris, and ongoing maintenance of buildings and properties. Chapter 8 - Community Character, Design & The Arts Goal 2: Site Design & Architecture Policy 2.1 High Quality Design Strategy 2.1.1 - Through zoning and PUD applications, encourage the location of infill new commercial, residential, or mixed -use developments where appropriate and needed to provide definition to the street and promote pedestrian activity. Strategy 2.1.5 - Continue to evaluate the zoning ordinance for opportunities to enhance design through landscaping, signage and building materials in all districts. Page 1 Planning Commission Agenda — 02/02/22 3D. Community Development Director's Report Council Action on/related to Commission Recommendations • Consideration to approve a Conditional Use Permit for Cross Access and to adopt Resolution No. 2022-07 approving the Preliminary Plat of Deephaven 3, a commercial plat in the B-4 Regional Business District. Applicant: Deephaven Development, LLC Approved on the consent agenda on January 241", 2022. Council also called for a public hearing on February 28t", 2022 for the following, to be reviewed in conjunction with the final plat for each. • Accepting a petition and calling for a public hearing on February 28, 2022 for vacation of a temporary easement as legally described for Deephaven 2 (for platting of Deephaven 3) • Accepting a petition and calling for a public hearing on February 28, 2022 for vacation of a drainage and utility easement as legally described for Monticello Business Center 6th Addition, to be platted as the Twin Pines First Addition Planning Commission Special Meeting A special meeting of the Commission has been scheduled for Tuesday, February 22nd at 6:00 PM to review a Conditional Use Permit application relating to a tenant relocation from Block 52 to another location in the community. Block 52 A website post has ben prepared providing an overview and update related to activities on this block. https://www.ci.monticello.mn.us/Blog.aspx The Pointes at Cedar Project Updates Detailed planning efforts continue for The Pointes with consultant WSB and staff focusing on Dundas Road coordination, well requirements and location, exposure and connectivity to larger community, viewsheds and vignette areas, and public engagement. The next full project update will be posted to https://www.ci.monticello.mn.us/276/The-Pointes-at-Cedar-Small-Area-Plan the week of January 31St. The update will be provided to the Planning Commission at their meeting. Upcoming Meetings/Events: Zoning Ordinance Work Group: 2/7 at 5:00 PM Compass Committee: 2/16 at 6:00 PM Public Engagement at MontiGlo Parade: 2/26 Public Engagement at Farmers Market: 3/12 Planning Commission Agenda — 02/02/22 Staff also intends to set property owner meetings in February to discuss the pending changes to the zoning ordinance for The Pointes. A Look Ahead City Engineer Matt Leonard is scheduled to present an update at the March meeting on the City's infrastructure, including a focus on transportation. Resource Information The City Council held their regular Administrative Overview on January 23th. The session focuses on the Council's role and responsibilities. A portion of the material presented to the Council related to Planning Commission's earlier inquiry on specific resources for meeting protocols, social media activity, etc. That information is provided below and with this report. https://www.imc.org/servant-leadership/ For more City updates, visit the City Blog: https://www.ci.monticello.mn.us/Blog.aspx 2 ellillsomile" Purpose: Annually revisit common guidelines and best practices for City Council, highlighting important reminders and providing additional context as council members gain experience. Overview: City Council Authority Refresher League of MN Cities Guidance and Resources General Reminders r� CITY OF �, Monticello • Authority is vested in the City Council as a whole, rather than individual council members. • Individual council members cannot speak for the City or the City Council. Distinguish when you're speaking for yourself and when you're speaking about something the City Council has voted for or against as a group. • In addition, council members do not have individual administrative authority. dW .Rry' !'° `;RruA'`�b°!' 7`dA' �'�i".�4 ,�'" Vll � ! '� r�'SRA i�i,R►t ��} � 1 i` t ..©f ,, 4c 9% J� a 12; R ( i. 7K"` i�9t� �i�c �' �1. `• t 3 ��0.Ydd g; ♦ Qi j � Am � � • � � � • � , v'.f �VD®/D�D�1`YD�d�J�d�d�l ai �l+N. �t Z � .�`l}��., � t �,J '� _ �jo.:.. eta 1,620 g` t _ INTEGRITY & ETHICS Always acting with integrity, honesty, and fairness. Actively demonstrating the values and mission of your city. COMMUNICATION Sharing information & fostering the exchange of ideas with fellow elected officials, city staff, and the public. COMMUNITY Reaching out to the community to involve them in local ENGAGEMENT government in meaningful and sustainable ways. EQUITY & INCLUSION Working to create an environment that is respectful, ❑pen, and welcoming to diverse ideas, backgrounds, and talents. Working to create equitable policies and practices. 77 sa [ r ! ilk,4. }p �fys.�M,,a , ,� /p■y■A bad: ',yp i5� 1 Val VIA� q� • a — - \Al MIN . f` STRATEGIC PLANNING & DECISION -MAKING r p- POLICYMAKING MANAGING RISK Developing a vision; identifying priorities and resources required to achieve that vision. Examining all factors affecting an issue and taking informed action. Working with others to create and implement policies that achieve common goals and advance the mission of your city. Understanding legal requirements and complying with applicable laws. Mitigating risky situations. 77 sa [ r ! ilk,4. }p �fys.�M,,a , ,� /p■y■A bad: ',yp it 5� 1 Val VI���: q� /�_ t ,� ��j{�, y�'�� S � / � }•gyp � T . • ' • • ;fie " p%�� . . f` 0 9 FA Ap,­ MEETING FACILITATION FINANCIAL LITERACY PERSONNEL MANAGEMENT Running effective meetings. Financial decision -making and accountability. Preparing a budget that reflects the values and vision of the community. Consistently implementing employee policies and fair practices. Motivating employees to fulfill their potential. VFW—% R Man, REGULAR AGENDA CONSENT AGENDA ADDING TO THE AGENDA • New item deviating from plans • Existing item At the meeting • Not in the budget & CIP • In the budget & CIP Prior to the meeting • Expenditure amount above • Expenditure amount below Purchasing Policy threshold Purchasing Policy threshold • Controversial • Non -controversial • Non -unanimous in board or • Unanimous commission commission recommendation recommendation • Dissenting staff • Administrative recommendations • Public Interest DIT's I I a MA 0 1 OPEN MEETING LAW REMINDERS City discussions should only occur at city meetings Conversations with even 2 different councilmembers about the same topic at different times is a violation �Individual councilmembers are responsible for knowing and following the rules Use the city administrator as a resource to determine the best way to bring an ',0: idea forward N OML applies to social media! J CITY OF Monticello ¥��� ®`�� r � \• � �� �e�_; D a o ► i .R C � � .� i>: v- Uzi 4��� � 51 `� �n a�ib% �►-y�� � 56'. n� MTA WA 1i w a 1i • Incumbent councilmembers cannot use city resources for any kind of campaigning. • City -sponsored event reminders • City publications and websites cannot contain a link to blogs, websites, etc. for candidates, political committees, political parties, etc. '0Is1_\ ■�/la I 4- 4/ W 9�n `����1 �.2�w •rLfl��� � ;y�4rC �„'�s`'`i9Sw4s.a N���: i oR U sijut! A't1� '� 1s.gR Fr^• 11 • MN's Government Data Practices Act is intended to balance the public's right to know what its government is doing, the right to privacy, and the government's need to function responsibly &efficiently. • City clerk is Monticello's responsible authority. • Many messages are transitory but always be aware of what and how you are communicating. If we have the record and it's public, we have it provide it. OEM Hi 19 DURN I IN 16V HL 2 RA I 10 1 R ME. ot; .M g , n 4 It;, W14 Ait `4 AA Tol 41' . . . . . . . . . . . . . . . . . . . . .... Owl R 7F-1 VW 10 Av t4§k ­�l -..gag Questions 014 or Comments? CITY OF iceflo Monticello City Council Meeting Guidelines WELCOME to the Monticello City Council Meeting. To ensure order and assist public and council participation in the meeting, these guidelines have been adopted by the City Council. City Council Members Staff Normally in Attendance Mayor: Lloyd Hilgart Rachel Leonard, City Administrator Jim Davidson Sarah Rathlisberger, Finance Director Bill Fair Charlotte Gabler Sam Murdoff Angela Schumann, Comm. Dev. Director Matt Leonard, City Engineer Jennifer Schreiber, City Clerk Agenda The agenda is published the Thursday before the meeting. The agenda packet is available for public viewing at the entrance to the meeting room, and copies of the agenda are available for the public. The agenda can also be viewed at City Hall or online at: www.ci.monticello.mn.us. Council Procedure The Council uses Parliamentary Procedure and Roberts Rules of Order to conduct business. Ordinarily, the Council will address items as they appear on the agenda and pass motions to take official action. Three of the five Council members are required to be present to conduct a meeting, and most motions require a simple majority vote of the council members in attendance. Citizen Comments • An open forum, listed as Citizen Comments on the agenda, is intended to allow attendees the opportunity to speak about issues not on the agenda. The Mayor will announce the Citizen Comments portion of the meeting and people wishing to speak should follow the Mayor's instructions. Issues requiring a decision by the City Council will usually be referred to staff to be placed on a future agenda. People who wish to speak about a particular agenda item should wait until that item is addressed during the meeting. Addressing the City Council • Citizens who wish to speak should approach the podium and speak to the Mayor when recognized. Please clearly state your name and address. • The Mayor may set a time limit per speaker and may limit the number of speakers. • Speakers are discouraged from distributing information at the meeting. Information should be provided to the council members prior to the meeting through the City Administrator. If copies are distributed, there must be 8 copies available. Additional Information • Regular City Council meetings are held the second and fourth Mondays of the month at 6:30 p.m. in the Mississippi Room at the Monticello Community Center. • Contact the Administrator to request adding an item to the agenda for a future meeting. • The Mayor reserves the right to modify these rules as required to effectively chair the meeting.