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EDA Agenda - 04/27/2022AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, April 27th, 2022 — 7:00 a.m. Academy Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Tracy Hinz, 011ie Koropchak-White, Hali Sittig and Councilmembers Lloyd Hilgart and Jim Davidson Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Sarah Rathlisberger and Hayden Stensgard 1. Call to Order 2. Roll Call 7:00 a.m. 3. Consideration of Additional Agenda Items 4. Consent Agenda a. Consideration of Adopting EDA Resolution No. 2022-11 authorizing entering into a MN -DEED Redevelopment Grant Agreement related to the Block 52 Redevelopment Funding Award in the amount of $517,500 Regular Agenda 5. Consideration of Update and Direction regarding Mike Mitchel's dba Nicollet Investments request for permanent parking solution — 154 East Broadway (Block 34) 6. Consideration of Adopting Revised Fagade Improvement Grant Program Guidelines 7. Consideration of Discussion of Draft Pooled TIF Allocation and Spending Plan 8. Consideration of Update - Industrial Land Study — CET Grant Work Component, Bolton & Menk Staff 9. Economic Development Director's Report 10. Adjourn EDA: 04/27/22 4a. Consideration of adopting Resolution No. 2022-11 authorizing the EDA to enter into a Redevelopment Grant Agreement with MN -DEED governing use of Grant funds in the amount of 5517.500 related to Deeahaven Development's Block 52 Mixed Use Re- development proposal (1T) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting Resolution No. 2022-11 authorizing entering into a Redevelopment Grant Agreement with MN -DEED governing the use of Redevelopment Grant funding in the amount of $517,500 related to Deephaven Development's Block 52 mixed-use redevelopment proposal. The Grant Agreement references the redevelopment proposal and as described in the Grant Application and the related work elements. It specifically identifies the intended -eligible use of the funding as proposed in the Grant Application. Intended eligible uses of the $517,500 in grant funding include the following: ✓ Hazardous Materials mitigation work tasks (estimated at $152,000), ✓ Structure demolition in Block 52 (estimated at $442,000) ✓ Land acquisition ($259,00 match component), and ✓ Public Infrastructure improvements to MN-TH#25 ($670,000 match component only) The Grant Agreement allows a subgrant of the funding to necessary contractors tasked with the duties of the above proposal components. Funds must be drawn in the form of a progress payment by June 30, 2023. Reporting requirements will continue related to the proposal components and job creation for a period of five years or until all goals - objectives have been completed. Al. STAFF IMPACT: The EDA attorney reviewed the Grant Agreement. The format is a standard State of Minnesota contract document. The attached resolution was also prepared by the EDA attorney. The Community Development Director and the Economic Development Manager were also involved in review of the Grant Agreement. No other staff are needed for the consideration of the EDA authorizing the State Redevelopment Grant Agreement. A2. BUDGET IMPACT: The cost related to consideration of the Redevelopment Grant Agreement consists of time incurred by the EDA attorney reviewing the Grant Agreement and preparing the resolution authorizing the EDA to enter into the Grant Agreement. A ballpark estimate of those costs are approximately $500. The EDA general fund has sufficient dollars to cover the cost of the legal fees associated with these tasks. EDA: 04/13/22 B. ALTERNATIVE ACTIONS: 1. Motion to adopt EDA Resolution No. 2022-11 authorizing the EDA to enter into the Redevelopment Grant Agreement with MN -DEED related to the Block 52 mixed use redevelopment proposal. 2. Motion to table consideration of adopting EDA Resolution No. 2022-11 authorizing entering into the Redevelopment Grant Agreement for further research and/or discussion. C. STAFF RECOMMENDATION: Staff recommends Alternative 1. The receipt of the Redevelopment Grant will help the EDA achieve its goals for redevelopment of Block 52. The Grant funding in the amount of $517,500 will help complete key work tasks such as Hazardous Materials Mitigation and structure demolition activities. D. SUPPORTING DATA: a. EDA Resolution No. 2022-11 b. MN -DEED Redevelopment Grant Agreement 2 CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2022-11 RESOLUTION APPROVING A REDEVELOPMENT GRANT IN CONNECTION WITH THE BLOCK 52 REDEVELOPMENT WHEREAS the City of Monticello Economic Development Authority (the "Authority") applied for a redevelopment grant from the Minnesota Department of Employment and Economic Development ("DEED") in connection with the Block 52 Redevelopment Project; and WHEREAS, Authority staff submitted a redevelopment grant application to DEED and the Authority has been awarded an Redevelopment Grant in the amount of $517,500 (the "Grant"); and WHEREAS, DEED presented the Authority with a Redevelopment Grant Contract Agreement for Grant No: RDGP-22-0009-o-FY22 (the "Agreement") in connection with the Grant in substantially the form presented to the Authority, and Authority staff has reviewed the Agreement and recommend its approval; and WHEREAS the Authority agrees that it will comply with all applicable laws and regulations as provided in the Agreement in its administration of the Grant. NOW THEREFORE BE IT RESOLVED THAT the Monticello Economic Development Authority approves the Agreement in substantially the form presented to the Authority, and authorizes the President and Executive Director to execute on behalf of the Authority the Agreement and any other documents requiring execution by the Authority in order to give effect to the Agreement. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution, including without limitation the negotiation of a contract with the Developer providing for the disbursement of grant proceeds consistent with the Agreement. Adopted by the Board of Commissioners of the City of Monticello Economic Development Authority this 27th day of April, 2022. President ATTEST: Executive Director 549602v21b1NI RS275-16 STATE OF MINNESOTA SC #: 210963 GRANT CONTRACT AGREEMENT DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION Redevelopment Grant Contract Agreement Grant No: RDGP-22-0009-o-FY22 Block 52 Redevelopment Project This grant contract agreement is between the State of Minnesota, acting through the Department of Employment and Economic Development, Business and Community Development Division (State), and the Monticello Economic Development Authority (Grantee). Recitals 1. Under Minn. Stat. § 116J.571 the State is empowered to enter into this grant. 2. The State is in need of programs to do the following: create new jobs, increase the tax base and provide other public benefits by redeveloping underused or unproductive sites. 3. The Grantee represents that it is duly qualified and agrees to perform all services described in this grant contract agreement to the satisfaction of the State. Grant Contract Agreement Term of Grant Contract Agreement 1.1 Effective date: April 1, 2022, or the date the State obtains all required signatures under Minn. Stat. § 1613.98, Subd. 5, whichever is later. Per Minn. Stat. § 16B.98, Subd. 7, no payments will be made to the Grantee until this grant contract agreement is fully executed. The Grantee must not begin work under this grant contract agreement until this contract is fully executed and the Grantee has been notified by the State's Authorized Representative to begin the work. 1.2 Expiration date: June 30, 2025, or until all obligations have been satisfactorily fulfilled, whichever occurs first. 1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this grant contract agreement: 8. Liability; 9. Accounting; 10. Government Data Practices; 12. Publicity and Endorsement; 13. Governing Law, Jurisdiction, and Venue; 15. Grant Repayment; 16. Data Disclosure; 17. Reporting; 18. Conflict of Interest; and 19. Minnesota Business Subsidy Law. 2 Grantee's Duties 2.1 Duties, Deliverables, and Completion Dates. The Grantee, who is not a state employee, will perform the following duties and provide the deliverables as outlined below. (a) Administer these grant funds in accordance with Minn. Stat. §§ 116J.551— 559 and the application submitted on February 1, 2022, for funding for the Block 52 Redevelopment Project, which is incorporated into this grant contract agreement and the provisions of this grant contract agreement. Any modification made to the approved application must be approved by the State. 1 of 8 (b) Promptly notify the State of any proposed material change in the scope of the project as submitted in the grant application, budget as defined in Section 4.1(a) below, or entire project's completion date, which must be approved by the State, prior to implementation. (c) Provide evidence to the State prior to the closeout of the grant that the Redevelopment activities have been completed. (d) It is expected that the site will be redeveloped as proposed in the grant application and upon which funding was based. Any material change in the development plans for the site must be presented to the State and approved. (e) Adhere to all other requirements of this grant contract agreement. 2.2 Provisions for Contracts and Sub grants. (a) Contract Provisions. The Grantee must include in any contract and sub -grant, in addition to provisions that define a sound and complete agreement, such provisions that require contractors and sub -grantees to comply with applicable state and federal laws. Along with such provisions, the Grantee must require that contractors performing work covered by this grant be in compliance with all applicable OSHA regulations. (b) Ineligible Use of Grant Funds. The dollars awarded under this grant contract agreement are grant funds and shall only be used by Grantee or awarded by Grantee to third parties as grant funds and cannot take the form of a loan under any circumstance. Grantee shall not use, treat, or convert the grant funds into an interest bearing loan, a non-interest bearing loan, a deferred loan, a forgivable deferred loan or any other type of loan. Further, Grantee shall include in any contract or sub -grant awarding the grant funds to a third party all the provisions and requirements of this grant contract agreement, including the requirement that these dollars are grant funds only and cannot be used, treated or converted into any type of loan. (c) Job Listing Agreements. Minn. Stat. § I I6L.66, subd.1, requires a business or private enterprise to list any vacant or new positions with the state workforce center if it receives $200,000 or more a year in grants from the State. If applicable, the business or private enterprise shall list any job vacancy in its personnel complement with MinnesotaWorks.net at www.minnesotaworks.net as soon as it occurs. (d) Payment of Contractors and Subcontractors. The Grantee must ensure that all contractors and subcontractors performing work covered by this grant are paid for their work that is satisfactorily completed. 3 Time The Grantee must comply with all the time requirements described in this grant contract agreement. In the performance of this grant, time is of the essence. 4 Consideration and Payment 4.1 Consideration. State will pay the Grantee under this grant contract agreement as follows: 2of8 (a) Redevelopment Costs. The following table represents the total Redevelopment Costs. Activities Amount Demolition $442,000 Hazardous Materials Survey and Removal $152,000 Public Acquisition Match only) $259,000 Turn Radius Improvements Match only) $670,000 TOTAL $1,523,000 (b) Total Obligation. The total obligation of the State for all compensation and reimbursements to the Grantee under this grant contract agreement will not exceed $517,500. In accordance with Minn. Stat. § 116J.575, subd. 1, the grant may pay for up to 50 percent of the eligible costs for a qualifying site. This requires a local match of at least 50 percent. For the purpose of this project, based on the budget above, the local match portion is at least $1,005,500 which may come from any other money available to the municipality. 4.2. Payment (a) Invoices. The State will disburse funds to the Grantee pursuant to this Contract, based upon payment requests submitted by the Grantee and reviewed and approved by the State. Payment requests must be accompanied by supporting invoices that relate to the activities in the approved budget. The amount of grant funds requested by the Grantee cannot exceed fifty percent (50%) of the total approved Redevelopment costs incurred by the Grantee as supported by invoices. The State will provide payment request forms. Every effort should be made to submit invoices within the same fiscal year the costs were incurred. In order to ensure that all funds are drawn prior to the expiration date of the grant, all payment requests must be received at least 30 days prior to the grant -term expiration date. (b) Eligible Costs. Eligible costs include the costs identified in the Section 4.1(a) of this Contract. The Grantee may not use these funds to provide loans to other entities or for administrative costs associated with managing the project this grant is funding. (c) Travel Expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by the Grantee as a result of this grant contract agreement are considered administrative in nature and not permitted. This does not include costs for contractors to complete the activities listed in Section 4.1(a), which may be considered eligible at the discretion of the State. (d) Program Income. Program income generated from grant -funded activities on hand at the end of the grant period must be returned to the State unless the State has approved a re -use of the income. 4.3 Contracting and Bidding Requirements. Grantees that are municipalities must comply with Minn. Stat. § 471.345 if they are contracting funds from this grant contract agreement for any supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or personal property. The Grantee must not contract with vendors who are suspended or debarred in Minnesota: http://www.mmd.admin.state.mn.us/debarredreport.asp 3of8 5 Conditions of Payment All services provided by the Grantee under this grant contract agreement must be performed to the State's satisfaction, as determined at the sole discretion of the State's Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. 6 Authorized Representative The State's Authorized Representative is Claudia Ursulescu Kracht, Project Manager, 332 Minnesota Street, Suite E200, St. Paul, MN 55101, 651-259-7448, Claudia.ursulescu.kracht@state.mn.us or his/her successor, and has the responsibility to monitor the Grantee's performance and the authority to accept the services provided under this grant contract agreement. If the services are satisfactory, the State's Authorized Representative will certify acceptance on each invoice submitted for payment. The Grantee's Authorized Representative is Jim Thares, Economic Development Manager, 505 Walnut Street, Suite 1, Monticello, MN 55362, 762-271-3254, jim.thares(a�ci.monticello.mn.us. If the Grantee's Authorized Representative changes at any time during this grant contract agreement, the Grantee must immediately notify the State. 7 Assignment, Amendments, Waiver, and Grant Contract Agreement Complete 7.1 Assignment. The Grantee shall neither assign nor transfer any rights or obligations under this grant contract agreement without the prior written consent of the State, approved by the same parties who executed and approved this grant contract agreement, or their successors in office. 7.2 Amendments and Adjustments. (a) Amendments. Any amendments to this grant contract agreement, with the exception of Grant Adjustment Notices (GANs), must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original grant contract agreement, or their successors in office. (b) Grant Adjustment Notices (GANs). GANs must be approved by the State in writing, and require a written change request by the Grantee. A GAN may be used for the purposes of transferring budget amounts between line items that do not change the awarded value, or other grant status activity. All other changes require a formal amendment as stated in paragraph 7.2(a). 7.3 Waiver. If the State fails to enforce any provision of this grant contract agreement, that failure does not waive the provision or the State's right to enforce it. 7.4 Grant Contract Complete. This grant contract agreement contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this grant contract agreement, whether written or oral, may be used to bind either party. 8 Liability Subject to the provisions and limitations of Minn. Stat. § 466, the Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes of action, including attorney's fees incurred by the State, arising from the performance of this grant contract agreement by the Grantee or the Grantee's agents or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the State's failure to fulfill its obligations under this grant contract agreement. 4of8 9 Accounting Under Minn. Stat. § 1613.98, subd. 8, the Grantee's books, records, documents, and accounting procedures and practices of the Grantee or other parry relevant to this grant contract agreement or transaction are subject to examination by the State and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this grant contract agreement, receipt and approval of all final reports, or the required period of time to satisfy all state and program retention requirements, whichever is later. The Grantee shall maintain adequate financial records consistent with generally accepted accounting principles. The Grantee shall submit accounting system records that track the use of grant proceeds and all matching funds by eligible Redevelopment Costs for each year in which grant disbursement and expenditures were made. The records shall reflect both expenditures and revenues and shall be submitted after all grant proceeds and matching funds have been expended or at the State's request. 10 Government Data Practices and Intellectual Property 10.1 Government Data Practices The Grantee and State must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by the State under this grant contract agreement, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this grant contract agreement. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting party before the data is released. The Grantee's response to the request shall comply with applicable law. 10.2 Intellectual Property Representations. The Grantee represents and warrants that Grantee's intellectual property used in the performance of this Contract does not and will not infringe upon any intellectual property rights of other persons or entities. Notwithstanding Clause 8, the Grantee will indemnify; defend, to the extent permitted by the Attorney General; and hold harmless the State, at the Grantee's expense, from any action or claim brought against the State to the extent that it is based on a claim that all or part of Grantee's intellectual property used in the performance of this Contract infringe upon the intellectual property rights of others. The Grantee will be responsible for payment of any and all such claims, demands, obligations, liabilities, costs, and damages, including but not limited to, attorney fees. If such a claim or action arises, or in the Grantee's or the State's opinion is likely to arise, the Grantee must, at the State's discretion, either procure for the State the right or license to use the intellectual property rights at issue or replace or modify the allegedly infringing intellectual property as necessary and appropriate to obviate the infringement claim. This remedy of the State will be in addition to and not exclusive of other remedies provided by law. 11 Workers' Compensation The Grantee certifies that it is in compliance with Minn. Stat. § 176.181, subd. 2, pertaining to workers' compensation insurance coverage. The Grantee's employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers' Compensation Act on behalf of these employees and any claims made by any third parry as a consequence of any act or omission on the part of these employees are in no way the State's obligation or responsibility. 5of8 12 Publicity and Endorsement 12.1 Publicity. Any publicity regarding the subject matter of this grant contract agreement must identify the State as the sponsoring agency. For purposes of this provision, publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Grantee individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this grant contract agreement. For DEED logos and formatting, please contact Laura Winge at 651-259-7173 or laura.winge(kstate.mn.us. 12.2 Endorsement. The Grantee must not claim that the State endorses its products or services. 13 Governing Law, Jurisdiction, and Venue Minnesota law, without regard to its choice -of -law provisions, governs this grant contract agreement. Venue for all legal proceedings out of this grant contract agreement, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 14 Termination 14.1 Termination by the State. The State may immediately terminate this grant contract agreement with or without cause, upon 30 days' written notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed. 14.2 Termination for Cause. The State may immediately terminate this grant contract agreement if the State finds that there has been a failure to comply with the provisions of this grant contract agreement, that reasonable progress has not been made or that the purposes for which the funds were granted have not been or will not be fulfilled. To validate that reasonable progress has been made, a Payment Request, as outlined in Section 4.2 must be submitted to the State before June 30, 2023, or the State's obligation to fund the Grant may be terminated. Invoices must be for eligible costs incurred after the grant contract agreement is fully executed. The State may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. 14.3 Termination for Insufficient Funding. The State may immediately terminate this grant contract agreement if- (a) £(a) It does not obtain funding from the Minnesota Legislature; or, (b) If funding cannot be continued at a level sufficient to allow for the payment of the services covered here. Termination must be by written or fax notice to the Grantee. The State is not obligated to pay for any services that are provided after notice and effective date of termination. However, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent that funds are available. The State will not be assessed any penalty if the contract is terminated because of the decision of the Minnesota Legislature, or other funding source, not to appropriate funds. The State must provide the Grantee notice of the lack of funding within a reasonable time of the State's receiving that notice. 15 Grant Repayment If a project fails to substantially provide the public benefits listed in the grant application within five years from the date of the grant award, the commissioner may require that 100 percent of the grant amount be repaid by the development authority over a term not to exceed ten years. The commissioner may exercise discretion to require repayment of only a portion of the grant amount taking into account the public benefits generated by the completed development. 6of8 16 Data Disclosure Under Minn. Stat. § 270C.65, subd. 3, and other applicable law, the Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any. Other Provisions 17 Reporting Grantee must submit to the State annual reports on the use of funds and the progress of the Project covering July 1St through June 30th of each year. The reports must be received by the State no later than July 25th of each year. The reports must identify specific Project goals listed in the application and quantitatively and qualitatively measure the progress of such goals. Grant payments shall not be made on grants, or subsequent grant awards made to the grantee, with past due progress reports. In addition, the Grantee shall submit a final report. The State will provide reporting forms. 18 Conflict of Interest The State will take steps to prevent individual and organizational conflicts of interest in reference to Grantees per Minn. Stat. § 1613.98 and Department of Administration, Office of Grants Management, Policy Number 08-01 Conflict of Interest Policy for State Grant -Making. When a conflict of interest concerning State grant -making is suspected, disclosed, or discovered, transparency shall be the guiding principle in addressing it. In cases where a potential or actual individual or organizational conflict of interest is suspected, disclosed, or discovered by the Grantee throughout the life of the grant contract agreement, they must immediately notify the State for appropriate action steps to be taken, as defined above. 19 Minnesota Business Subsidy Law The Grantee must comply, if appropriate, with the Minnesota Business Subsidy Law, Minn. Stat. §§ 1161993 —116J.995. (The rest of this page is left intentionally blank) 7of8 1. STATE ENCUMBRANCE VERIFICATION Individual certifies that funds have been encumbered as required by Minn. Stat. 16A.15. By: Signed: Ka Vue Digitally signed by K. Vue D.te: 2022.M.2011:5]0] -05'00' 3. STATE AGENCY (with delegated authority) Title: Deputy Commissioner Date: 4/20/22 Date: SWIFT Contract/PO No(s).210963 PR 68457 PO 3000467677 2. GRANTEE The Grantee certifies that the appropriate person(s) have executed the grant contract agreement on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. By: Title: Date: By: Title: Date: Grantee: Monticello Economic Development Authority Grant Name: Block 52 Redevelopment Grant Number: RDGP-22-0009-o-FY22 8of8 Distribution: Agency Grantee State's Authorized Representative - Photocopy EDA: 04/27/22 5. Consideration of Update and Discussion regarding Shared Parking and Cross -Access Proposal in Block 34 — Mike Mitchell, 154 East Broadway (JT/AS) A. REFERENCE AND BACKGROUND: The EDA is being provided an update regarding the request to accommodate private parking and/or access to parking by Mike Mitchell, owner of the multi -family apartment building located at 154 East Broadway. At the November 10, 2021 meeting, the EDA was asked to consider options for providing access to parking to be constructed on the multi -family site, or to allow for cross parking on existing City lots, including access. Following discussion in November, the EDA asked staff to further review an option for construction of diagonal parking within the Cedar Street right of way. Since that time, staff has completed research indicating that the diagonal parking option has substantial drawbacks in the form of unanticipated costs and limited benefits. Mr. Mitchell's interest stems from his recent purchase of the building at the northeast corner of the block. The building is a former hotel that housed military recruits and then became an extended stay motel/apartment complex with modest to inexpensive rates. A portion of the first floor has also been used for varied commercial purposes. The building is located on a parcel with no existing on-site parking. Staff was clear with Mr. Mitchell at the time of his interest in acquisition that the site had no private parking. Since that time, Mr. Mitchell has been evaluating options to add off-street parking spaces to accommodate the 11 residential units. In the interim period, Mr. Mitchell has remodeled the facility, upgraded rooms and created some units with two bedrooms. He also remodeled the small restaurant area on the main floor into commercial office suites available for rent. The EDA and the City together own approximately 73 percent of Block 34. The timeline for Block 34 to become a primary focus of redevelopment efforts for the EDA is likely in 2025 and ensuing years. Block 34 is also a highly visible location, and it may draw more developer interest after work on the proposed Block 52 redevelopment is completed. If the EDA comes to a consensus on a parking solution, the next step for the request will be with the City Council. The City Council will be asked to consider authorizing either the cross -parking and access application or a parking license arrangement. These may then also be reviewed by the Planning Commission as well. Al. STAFF IMPACT: There is a limited staff impact in reviewing the findings from staff efforts regarding a diagonal on -street parking solution along with the idea of a time limited parking license arrangement. Time commitments have been related to initial discussions and follow up research regarding solutions and preparing report for presentation to the EDA. Future steps would involve the Planning Commission and City Council as it would require a Conditional Use Permit (CUP). The EDA may have other ideas to solve the parking challenges that Mr. Mitchell has identified and presented for discussion. EDA: 04/27/22 A2. BUDGET IMPACT: There is a minor budget impact involved in a review of the proposal submitted by Mr. Mitchell. B. ALTERNATIVE ACTIONS: 1. No motion. Seeking EDA feedback only. 2. Motion of other as directed by the EDA. C. STAFF RECOMMENDATION: =The addition of on -street diagonal parking along Cedar has been found to have limited benefit. The number of spaces that could be added is minimal given the street width and current placement of utilities. In addition, the spaces within a public right of way are recommended by staff to be available in full to the public, not reserved for permit parking. If the EDA is interested in allowing some measure of parking availability for the request, staff including the City Attorney would recommend a leased parking consideration, with strict limitations on term and usage. Terms would include: • City/EDA determine location and number of stalls to be leased. • Lessee accepts the parking in its current condition. • Lessee accepts the parking maintenance as currently provided. • Lessee must provide insurance and indemnification per the City's requirements. • The lease agreement gives the adjacent property owner no future rights to parking or access. The City will not enforce parking by unauthorized users of the spaces. • The lessee and City will coordinate on signage, which will be paid for by the lessee and subject to approval by the City and removal at the time of termination of lease. • City/EDA will reserve all rights relating to term of lease ad termination provisions The overriding background issue impacting the parking options discussion arises from the EDA's goal to maintain its ability to complete a future redevelopment project in Block 34 and not be hindered by commitments related to the shared parking and cross easement concept proposal. D. SUPPORTING DATA: a. Letter from Mike Mitchell b. Illustration of Shared Parking and Cross Easement Access c. Discussion on Cedar Street Diagonal Parking Costs and Limitations d. #1 Aerial Photo of Block 34; #2 Aerial Photo of Block 34 showing ownership e. Small Area Study Perspective Illustration f. EDA Staff Report — November 10, 2021 Meeting 154 East Broadway Street Monticello Parking Lot Plan Dear: EDA We are looking to purchase a small amount of land from the lot next door where the old Zoo Bar use to be located. We would like to construct a small parking lot with 15 or so parking spots. We are hoping to buy the land and hopefully not just have an easement from the city. We believe that being able to buy this little bit of land and construct a small parking lot that will help us to attract better tenants and in turn those tenants will spend their money in the local downtown businesses. We currently have 1 off street parking spot and it creates a big problem for tenants who are looking to rent from us who drive. We are hoping that city can help us to work together and come up with a good plan so we can have permanent parking. Since owning the building, we have done lots of improvements and turned the old front restaurant into 9 small private offices that we rent at affordable rates with flexible terms to small business that also bring people into the downtown area who then shop and spend money in the downtown area. We are committed to our building and constantly improving it and being good stewards of the city of Monticello. Thank you very much for the consideration Mike Mitchell Owner of 154 East Broadway Street Monticello Building W F- LU W W Ir H CEDAR STREET Nm 7" RAN IBA 8CMUM0 LAYOUT, NOT M W UM FOR 8TM N OR PUWM PIJRP08E8. ALL PROP6 UEB d MM MMSWM 1® TO W VU FM o M LOCATION DATE W d 154 E BROADWAY ST 09/08/21 JO Mfn MONTICELLO THA � w MINNESOTA TN TRUMAN O'Jv'E_L �'�F SCHWA(OPTION 1J �� Y T = Q N. a i I(OPTIONV��c VFW SQUARE FOOTAGES 4,576 SF - HALF DRIVE 5,732 SF - FULL DRIVE EDAFN' 5T 14 0 15 30 60 GRAPHIC SCALE From: Ryan Melhouse To: Angela Schumann Cc: Matthew Leonard Subject: RE: Phone Call Date: Tuesday, February 1, 2022 10:35:52 AM Good Morning Angela, This section of Cedar does not appear to be the best fit for diagonal parking. To accommodate diagonal parking and a 6' sidewalk the street would most likely need to be narrowed and the sidewalk would be tight to the building. Based on the current driveway locations and power pole locations between 3rd and Broadway it looks like it would be the same number of parking spots that currently exist as parallel parking, possibly one additional. Thank you, Ryan Melhouse, PE City of Monticello — Project Engineer 763-271-3227 ryan.melhouse@ci.monticello.mn.us Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. -----Original Message ----- From: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Sent: Monday, January 31, 2022 8:51 AM To: Ryan Melhouse <ryan.melhouse@ci.monticello.mn.us> Subject: FW: Phone Call Would any diagonal parking be allowed on Block 34 along the west side of Cedar Street? If so, would it be possible to prepare a draft illustration of where and how many stalls? Angela Schumann Community Development Director City of Monticello www.ci.monticello.nm.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices act and may be disclosed to third parties. -----Original Message ----- From: Hayden Stensgard <Hayden.Stensgard@ci.monticello.mn.us> Sent: Friday, January 28, 2022 1:37 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Subject: RE: Phone Call Angela, From what I gather, the EDA was not in favor of a cross easement for shared parking, because that could affect the future redevelopment of the block. If right of way access were to be done, it seemed the EDA would prefer to have the access be off Cedar St. They also entertained the idea of diagonal parking going down Cedar St. The EDA would be looking for layouts that would show potential allowance for cross access off Cedar St only, to the parking that would be added on the property of 154 W Broadway. No shared parking of the existing public parking and the potential ability to install diagonal parking on Cedar St. An issue with the diagonal parking on Cedar St would be a potential need for more right of way, but the building seems to be in the right of way. The understanding at the end of the discussion was that staff would research information on the current right of way and develop concepts that better fit the EDA's interest on the block. Hayden Stensgard Community and Economic Development Coordinator City of Monticello, MN Direct: 763-271-3206 "Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties." -----Original Message ----- From: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Sent: Friday, January 28, 2022 12:02 PM To: Hayden Stensgard <Hayden.Stensgard@ci.monticello.mn.us> Subject: FW: Phone Call Can you listen to this portion of the EDA meeting and let me know what you think the direction was for parking at 155 Broadway? I think the meeting was back in late 2021. Angela Schumann Community Development Director City of Monticello www.ci.monticello.mn.us 763-271-3224 Email correspondence to and from the City of Monticello government office is subject to the Minnesota Government Data Practices act and may be disclosed to third parties. -----Original Message ----- From: Mike Mitchell <mike@mitchellmanage.com> Sent: Tuesday, January 25, 2022 1:54 PM To: Angela Schumann <Angela.Schumann@ci.monticello.mn.us> Subject: Phone Call Angela - Hope all is well I wanted to track on when we are going to have the call and what else can I do to get the wheels of progress moving? Thank you Mike Mitchell Mitchell Realty mike@mitchellmanage.com 612-296-5483 Www.mitchellrealtypro. com Block 34 April 9, 2019 fig " ♦ f 1 t "► 1. s .� Sr O vi fir 11111f% r City Boundary CITY OF Monticello Bryan Pittman • 1 inch = 94 feet Map Powered by DataLink from WSB & Associates EDA: 11/10/21 5. Consideration of Shared Parking and Cross -Access Proposal in Block 34 — Mike Mitchell, 154 East Broadway (JT/AS) A. REFERENCE AND BACKGROUND: Mike Mitchell, owner of the multi -family apartment building located at 154 East Broadway, has submitted to a letter to City staff in which he proposes a shared parking and cross easement access agreement in Block 34. Mr. Mitchell's interest stems from his recent purchase of the building at the northeast corner of the block. The building is a former hotel that housed military recruits and then became an extended stay motel/apartment complex with modest to inexpensive rates. A portion of the first floor has also been used for varied commercial purposes. The building is located on a parcel with no existing on-site parking. In 2020 Mr. Mitchell purchased the property and began dialoguing with City staff regarding potential methods to add off-street parking spaces to accommodate rental offering the 11 residential units to tenants who owned motor vehicles. In the interim period since then, Mr. Mitchell has remodeled the facility, upgrading rooms and creating some units with two bedrooms. He also remodeled the small restaurant area on the main floor into commercial office suites available for rent. An illustration of the shared parking and cross easement proposal that Mr. Mitchell has submitted is attached. Mr. Mitchell's initial proposal illustrates utilizing the existing access from Broadway, shifting it to the west, and using this entrance point to access parking spaces he intends to construct on his site. With the adjustment of the access, Mr. Mitchell further proposes to reconfigure the parking on the City's adjacent parking lot for his use. If the EDA is inclined to consider the request, staff would make the following recommendations. 1. The existing access shall remain as is and not be relocated. Relocation o the access would likely require review by Wright County would be best considered at the time of future redevelopment activity. 2. The access may be shared between the City and Mr. Mitchell but would only be subject to the terms and conditions outlined in item 6 below. 3. The existing parking on the City property is not recommended to be reconfigured as proposed, however, the City/EDA may consider allowing the short-term use of the existing spaces directly adjacent to the former "Zoo" property, but only subject to the terms and conditions of item 6 below. 4. Construction of the parking stalls on the apartment site shall meet the requirements of City Ordinance. EDA: 11/10/21 5. Mr. Mitchell will need to follow the required process for application for a conditional use permit for cross easement parking and access per City Ordinance. 6. An agreement for cross access and parking would be required. Mr. Mitchell would be solely responsible for the maintenance of the parking area on his property. The allowance for access and shared parking would be only until such time as the City and/or the EDA enter into a preliminary development agreement for the block. At that time, the City and EDA will endeavor to allow access to the created parking stalls, although the final location of the access and access route for the stall will be determined by the City/EDA with redevelopment planning. 7. Maintenance and condition of the access and City parking area would be solely at the discretion of thew City and further defined in the agreement based on the recommendation of the City Public Works Director/City Engineer. Staff would like to get feedback from the EDA regarding the proposal as it may affect future discussions and redevelopment plans for Block 34. If the EDA is supportive of the proposal, the next step for the request will be the City Council. The City Council will be asked to consider authorizing the cross -parking and access application, which will then be heard before Planning Commission and City Council. Al. STAFF IMPACT: There is a limited staff impact in considering the concept shared parking and cross easement access proposal at this time. Time commitments have been related to initial discussions about the proposal along with preparation of the staff report for presentation to the EDA. The EDA review of the concept is the first of what could be many steps on the way to approval if the EDA feels that the proposal is worthy and does not pose a conflict with potential future redevelopment in Block 34. Future steps would involve the Planning Commission and City Council as it would require a Conditional Use Permit (CUP). There may be other modifications to the proposal that may make it more appealing to the EDA and do not hinder future redevelopment proposals. A2. BUDGET IMPACT: There is a minor budget impact involved in a review of the proposal submitted by Mr. Mitchell. B. ALTERNATIVE ACTIONS: 1. No motion. Seeking EDA feedback only. 2. Motion of other as directed by the EDA. C. STAFF RECOMMENDATION: Staff believes that the EDA should review and offer feedback on the proposal. The main concern is that the ability to complete a future redevelopment project on the block be preserved and not hindered by commitments related to the shared parking and cross easement EDA: 11/10/21 concept proposal. Staff have discussed a variety of ideas with Mr. Mitchell previously and his proposal presents a potential solution to the parking challenges that he faces. D. SUPPORTING DATA: a. Letter from Mike Mitchell b. Illustration of Shared Parking and Cross Easement Access c. #1 Aerial Photo of Block 34; #2 Aerial Photo of Block 34 showing ownership d. Small Area Study Perspective Illustration EDA: 04/27/22 6. Consideration of Amended Facade Improvement Grant Program Guidelines (JT/AS) A. REFERENCE AND BACKGROUND: Per EDA direction, amended Fagade Improvement Grant Program (FIGP) Guidelines are proposed. The amended guidelines expand the opportunity for facade improvement projects into Block 52 along with the prior inclusion of properties in Block 35. The idea of enlarging the geographic focus for the program is to offer the Block 52 property owners not participating in the redevelopment footprint the opportunity to upgrade their building facades. This will be a chance for existing properties to make architectural enhancements to their properties.. Since the EDA approval of the FIGP, one property in Block 35 (142 West Broadway) has completed a fagade improvement project. That property received the maximum $50,000 grant. The balance in the fund now stands at $200,000. The EDA originally committed $200,000 to the program and shortly after the initial commitment increased the funding commitment to $250,000 based on the level of interest. The COVID-19 pandemic crises and related business restrictions significantly impacted several of the businesses in Block 52, sidelining some of their goals to participate FIGP. Discussions with several businesses hoping to use the funding were occurring with City staff just prior to the pandemic. Now with COVID-19 slowly receding into the background, several property owners in Block 35 have indicated a renewed interest in the program. The amended Guidelines specifically expand the geographic area by including Block 52 and also clear up a couple of minor language sections regarding the review and approval steps and processes. Al. STAFF IMPACT: There is a limited staff impact in presenting amended FIGP Guidelines to the EDA for consideration of approval. Staff involved in this effort include the Community Development Director, Economic Development Manager and Community Economic Development Coordinator. A2. BUDGET IMPACT: There is a no budget impact related to the proposed amended FIGP Guidelines. B. ALTERNATIVE ACTIONS: 1. Motion to approve amended Fagade Improvement Grant Program Guidelines. 2. Motion to table consideration of approving amended Fagade Improvement Grant Program Guidelines for further research and/or discussion. 3. Motion of other as directed by the EDA. EDA: 04/27/22 C. STAFF RECOMMENDATION: Staff recommends Alternative #1. The proposed amendment to the Fagade Improvement Grant Program Guidelines is an expansion of the geographic area, adding Block 52. The EDA's Block 52 redevelopment efforts are gaining momentum. The goal of the developer and the EDA is to complete a catalyst project with notable architectural features that creates a dynamic core area of the downtown. Through the amendment, the three properties in the block remaining untouched by redevelopment activities have the chance to benefit from the assistance for facade updates. The funding allocation to the program is unchanged from the EDA's earlier commitment of dollars to the program. D. SUPPORTING DATA: a. Amended Facade Improvement Grant Program Guidelines b. Original Fagade Improvement Grant Program Guidelines flil' OF Monticello MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY DOWNTOWN FACADE IMPROVEMENT GRANT PROGRAM GUIDELINES AMENDED APRIL 27, 2022 POLICY PURPOSE The City of Monticello Economic Development Authority ("EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this grant program is to support a visually and financially appealing Downtown and greater Monticello community by providing grants to improve the fagade of existing Downtown commercial and retail buildings. ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Facade Improvement Grant ("Grant") as further defined herein. The area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52 following redevelopment. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $200,000 for the initial Grant program. This is a pilot program, and additional areas and allocations will be considered at a future date. GRANT FUND TERMS & CONDITIONS Grant Structure & Amount Individual grants may be made in an amount ranging from $5,000450,000. The Grantee must provide at least 5% of the project cost in cash. The Grantee percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the grant program to determine responsibilities and commitment for application and its components. The owner of the property must be a cosignatory to the application and Grant agreement. 1 I Page The property owner must carry current property insurance both at the time of application and through completion of approved Grant improvements. Property taxes on the subject site must be current for the duration of the Grant. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Grant per building. Concurrent Grants & Loans The concurrent use of different EDA grant or loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Grant Uses Exterior renovation of front and corner side facades of principal use retail or commercial buildings. An architectural rendering supplied by one of the following is required: an EDA selected architect, applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for use in determining final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering shall not be included in the Grant amount. Architectural renderings will be considered for preparation after initial letter of interest by an applicant. Fagade renovation may include, but is not limited to: windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering: Interior side renovation proposals may be considered on a case-by-case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Grant documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. The cost of the building permit for the approved Grant project will be included in the final Grant amount. 2 1 P a g e CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Facade Improvement Grant Program to comply with the City's building standards for the Downtown/Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the Grant application and the Grant agreement. Any costs incurred prior to execution of the Grant agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Grant disbursements shall be as provided for within the Grant agreement and shall be made directly to the grantee/owner's contractor. The Grant agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Grant program, discuss the project, and obtain application forms. The applicant shall complete and submit a letter of interest to the EDA. After review, the EDA will consider authorization of the facade rendering by the EDA's architectural consultant. Once the architect and applicant have completed the rendering process, the applicant must submit a formal application to the EDA for review. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. 3 1 P a g e The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal grant application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. c. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. e. All other information as required in the application and/or additional information as may be requested by the EDA staff. f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. c. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF GRANT APPLICATION The EDA, at its sole discretion, may deny any application if it is found not consistent with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. GRANT POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. 4 1 P a g e COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 116J.993 to 116J.995. GRANT AGREEMENT If the application for a Grant is approved, the applicant/property owner will be required to enter into a Grant agreement to proceed. The Grant agreement will specify the terms and conditions of the Grant as identified herein. DISBURSEMENT OF GRANT FUNDS Upon approval of a Grant application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Grant plans. Contracts shall be consistent with the procedures and requirements herein. Grant funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Fagade Improvement Grant Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Facade Improvement Grant Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; 5 1 P a g e 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Grant agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180 -day time period shall not be exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Grant agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: 1. Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Grant agreement. 2. Lien waivers are required for all contractors and sub -contractors before payment will be made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Grant project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. 6 1 P a g e PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Grant plans. 7 1 P a g e EXHIBIT A Geographic Program Limits Downtown Fa4ade Improvement Grant Program Eligibility Area Created by: City of Monticello EXHIBIT B Permitted Fund Uses — Visual Reference Elements of the Facade CorniceMMMI -__u. Upper Frieze Lintel Upper Windows - - Sill � - Middle Frieze k Transom Door tk Display Window Base Panel __Im X939. �G AFI sy F E 'E E Possible Improvements to building on Broadway Overview of the Program The Monticello EDA has developed a Downtown Facade Im- provement Grant Program to support property owners in their efforts to reinvest in their buildings and in the historic building fabric of downtown Monticello. The purpose of the grant pro- gram is to improve the aesthetics of the Downtown and to make it a place that is comfortable and appealing to more people throughout the day, week and year. The grant program offers up to $50,000 in grant funding to individual building property owners or building tenants to make front and corner side building facade improvements in the eligi- ble area shown below. The program is a grant, with no repayment of the funds re- quired, with a minimal financial commitment by the property owner or tenant. The EDA's goal is for at least 70% of the proper- ty owners in the area to take advantage of the grant. Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development City of Monticello, MN 763-271-3224 Angela.Schumann@ci.monticello.mn.us Downtown Facade Improvement Grant Program An Implementation Step of the Downtown Small Area Plan Investing In Our Downtown x Monticello Design Threads The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting., Facades with large windows and well-designed storefronts are comfortable to walk along side and intriguing to look into.They create visual interest to both drivers and walkers. Three Dimensionality/ Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewak are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was buit over time. Today's buildings reflect a variety of eras and no one particular style. Improve- ments to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block 36 Sample Illustration General Design Considerations A renovation or fa4ade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. However they should not appear to be of poor quality, of temporary nature, or ill-suited for the area (vinyl or aluminum sidin). - If a building has historic or architectural merit, improvements should be designed to reveal the buildings original style form and materials, whenever posisble. - Architectural services will be offered at no charge to grant fund applicants. AND 7RW A I r Facade Improvement Possibilities paint and signage corner treatments integrated signage J restored brickwork murals welcoming fronts C )F Monticello MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY DOWNTOWN FACADE IMPROVEMENT GRANT PROGRAM GUIDELINES POLICY PURPOSE The City of Monticello Economic Development Authority ("EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this grant program is to support a visually and financially appealing Downtown and greater Monticello community by providing grants to improve the fagade of existing Downtown commercial and retail buildings. ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Fagade Improvement Grant ("Grant") as further defined herein. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $200,000 for the initial Grant program. This is a pilot program, and additional areas and allocations will be considered at a future date. GRANT FUND TERMS & CONDITIONS Grant Structure & Amount Individual grants may be made in an amount ranging from $5,000450,000. The Grantee must provide at least 5% of the project cost in cash. The Grantee percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the grant program to determine responsibilities and commitment for application and its components. The owner of the property must be a co- signatory to the application and Grant agreement. The property owner must carry current property insurance both at the time of application and through completion of approved Grant improvements. 1 I Page Property taxes on the subject site must be current for the duration of the Grant. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Grant per building. Concurrent Grants & Loans The concurrent use of different EDA grant or loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Grant Uses Exterior renovation of front and corner side facades of principal use retail or commercial buildings. An architectural rendering supplied and paid for by the EDA is required for use in determining final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering is a service of the EDA and shall not be included in the Grant amount. Architectural renderings will be considered for preparation after initial letter of interest by an applicant. Fagade renovation may include, but is not limited to: windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering: Interior side renovation proposals may be considered on a case-by-case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Grant documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. The cost of the building permit for the approved Grant project will be included in the final Grant amount. CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Fagade Improvement Grant Program to comply with the City's building standards for the Downtown/Central Community 2 1 P a g e District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the Grant application and the Grant agreement. Any costs incurred prior to execution of the Grant agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Grant disbursements shall be as provided for within the Grant agreement and shall be made directly to the grantee/owner's contractor. The Grant agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Grant program, discuss the project, and obtain application forms. The applicant shall complete and submit a letter of interest to the EDA. After review, the EDA will consider authorization of the facade rendering by the EDA's architectural consultant. Once the architect and applicant have completed the rendering process, the applicant must submit a formal application to the EDA for review. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal grant application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: 3 1 P a g e a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, time lines and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. c. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. e. All other information as required in the application and/or additional information as may be requested by the EDA staff. f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. c. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF GRANT APPLICATION The EDA, at its sole discretion, may deny any application if it is found not consistent with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. GRANT POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 116J.993 to 116J.995. GRANT AGREEMENT If the application for a Grant is approved, the applicant/property owner will be required to enter into a Grant agreement to proceed. The Grant agreement will specify the terms and conditions of the Grant as identified herein. 4 1 P a g e DISBURSEMENT OF GRANT FUNDS Upon approval of a Grant application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Grant plans. Contracts shall be consistent with the procedures and requirements herein. Grant funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Fagade Improvement Grant Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Fagade Improvement Grant Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Grant agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180 -day time period shall not be 5 1 P a g e exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Grant agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: 1. Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Grant agreement. 2. Lien waivers are required for all contractors and sub -contractors before payment will be made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Grant project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. PROJECT COMPLETION The city's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Grant plans. 6 1 P a g e EXHIBIT A Geographic Program Limits ElighIe Area - DRAf I' Jm� , EXHIBIT B Permitted Fund Uses — Visual Reference Elements of the Facade Cornice Upper Frieze -- Lintel Upper Windows F: Sill Middle Frieze r - Transom Door Display Window— Base Panel t: I� +lil ii i axvdmimvnmmv masa s■as gr— og Possible Improvements to building on Broadway T �=_ Overview of the Program The Monticello EDA has developed a Downtown Facade Im- provement Grant Program to support property owners in their efforts to reinvest in their buildings and in the historic building fabric of downtown Monticello. The purpose of the grant pro- gram is to improve the aesthetics of the Downtown and to make it a place that is comfortable and appealing to more people throughout the day, week and year. The grant program offers up to $50,000 in grant funding to individual building property owners or building tenants to make front and corner side building facade improvements in the eligi- ble area shown below. The program is a grant, with no repayment of the funds re- quired, with a minimal financial commitment by the property owner or tenant. The EDA's goal is for at least 70% of the proper- ty owners in the area to take advantage of the grant. Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development City of Monticello, MN 763-271-3224 Angela.Schumann@ci.monticello.mn.us Downtown Facade Improvement Grant Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown n Monticello Design Threads The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting., Facades with large windows and well-designed storefronts are comfortable to walk along side and intriguing to look into.They create visual interest to both drivers and walkers. Three Dimensionality / Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewak are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was buit over time. Today's buildings reflect a variety of eras and no one particular style. Improve- ments to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block 36 General Design Considerations A renovation or fa4ade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. However they should not appear to be of poor quality, of temporary nature, or ill-suited for the area (vinyl or aluminum sidin). - If a building has historic or architectural merit, improvements should be designed to reveal the buildings original style form and materials, whenever posisble. - Architectural services will be offered at no charge to grant fund applicants. Sample Illustration Ai = i.s 49 1A Facade Improvement Possibilities paint and signage corner treatments integrated signage �rD f1 �i �urc 1 ais m5i rss murals welcoming fronts i T - EDA: 04/27/22 7. Consideration of Discussion and Feedback of Proposed DRAFT Pooled TIF Allocation Plan (JT/AS) A. REFERENCE AND BACKGROUND: The EDA is being asked to consider providing feedback and/or direction regarding a proposed DRAFT Pooled TIF Allocation and Spending Plan. The EDA currently administers all TIF Districts utilized for housing, redevelopment, and economic development projects in the City of Monticello. The genesis of the available and projected Pooled TIF increment dollars was discussed during the EDA Workshop Meeting on April 13, 2022. It was noted that there are sizeable, pooled resources available for housing and redevelopment efforts. There will possibly be additional Affordable Housing and Redevelopment pooled dollars in the future years depending on the EDA disposition and/or decisions related to the Interfund loan linking TIF District 1-6 and TIF District 1-41 and the decertification dates of the existing Affordable Housing TIF Districts. During the Workshop, it was noted that there may be a benefit to directly identify projects for potential fit and use of the Pooled increment funds. Adopting such a Plan may also lead to a reduction of in-house administrative tasks stemming from the annual TIF District reporting requirements through the decertification (closure) of older TIF Districts. Staff is seeking EDA feedback on the attached DRAFT Pooled TIF Allocation and Spending Plan. The Plan identifies more intentionally how and where to use the extra Pooled dollars. Several of Housing and Redevelopment TIF Districts have sizeable extra available TIF dollars that can be allocated or Pooled to support projects currently in motion or in the early planning stages. An allocation timeline of 24 months starting June 30, 2022 is the benchmark date in the plan. Previously, as a follow up to the 2016 TIF Management Plan approval, the EDA discussed and reviewed potential uses of the Pooled TIF dollars and directed drafting of Policy Statements for the Management of Available (Pooled) Tax Increment Funds. The Policy Statement was reviewed and approved at the January 10, 2018 meeting. That document is broadly worded and purposefully flexible. It is also attached as Exhibit B. The Pooled TIF Allocation Plan would replace the Policy Statements. Al. STAFF IMPACT: There is a limited staff impact in presenting a DRAFT Pooled TIF Allocation and Spending Plan for consideration at this time. Staff involved in the early consideration of the Plan includes the City Administrator, Community Development Director, Economic Development Manager, Finance Director, and the EDA -City financial advisor, Northland Securities, Inc, as well as the EDA attorney. A2. BUDGET IMPACT: There is a modest budget impact related to the proposed DRAFT Pooled TIF Allocation and Spending Plan as presented. If the Plan or some form of it is adopted, the budgetary impacts will reflect in adjustments to the various TIF Districts and related support for potential proposals -projects identified in the Plan. There may also be a EDA: 04/27/22 small budget benefit due to reduced reporting requirement stemming from several older TIF Districts that could be decertified in the near future. B. ALTERNATIVE ACTIONS: 1. No motion; staff is seeking EDA discussion and direction on the proposed Plan. 2. Motion to table consideration of the Pooled TIF Allocation and Spending Plan for further research and/or discussion. 3. Motion of other as directed by the EDA. C. STAFF RECOMMENDATION: No recommendation is offered. Staff is seeking feedback and direction from the EDA to the DRAFT Pooled TIF Allocation and Spending Plan. The comments and/or direction provided by the EDA will help with the next steps as the EDA determines the strategy or plan to utilize the pooled TIF increment that it has access to in the various existing TIF Districts. D. SUPPORTING DATA: a. DRAFT Pooled TIF Allocation and Spending Plan b. TIF Policy Statements (adopted 1-10-2018) c. TIF Management Plan Spreadsheet w/ 12-31-21 Fund Balances and Future Yr. projections Pooled Tax Increment Financing (TIF) Allocation and Spending Plan 04-27-22 The City of Monticello Economic Development Authority (the "EDA") administers the Tax Increment Financing Districts in the City of Monticello. Several TIF Districts have fulfilled increment payment completed obligations and Extra Pooled TIF increment dollars are currently available for "Pooled" use pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF Act"). To better utilize the available resource of Pooled TIF increment dollars, the EDA proposes to adopt an Allocation and Spending Plan utilizing the Pooled TIF dollars in the various TIF Districts. The purpose of the Allocation and Spending Plan is to provide assistance to development proposals through the use of the Pooled TIF increment funds to offset eligible costs related to the identified proposals or projects. The proposals -projects must achieve the objectives of affordable housing, economic development with tax base and job creation and redevelopment, eliminating blight conditions and increasing tax base and creating new jobs. Several identified proposals -projects are anticipated to commence development within the next 24 months (cutoff date of June 30, 2024). With that knowledge, the EDA sets forth in the Allocation and Spending Plan specific Proposals -Projects and dollars amounts of Pooled TIF increment dollars that it can allocate towards eligible costs in those Proposals -Projects. The EDA defines "Pooled -Extra TIF funds" as both current and future projected dollars legally available within established TIF funds, and not committed to existing obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF Act"). Allocation and Spending Plan commitments are shown in the various type of TIF District categories below. Redevelopment TIF Districts: The EDA will commit Pooled TIF funds to Redevelopment Proposals -Projects as shown below: A. Block 52 Redevelopment TIF District 1-45 1. TIF District 1-6: 12-31-21 Balance= $18,001— Allocate $18,001 to Block 52 Redevelopment TIF District 1-45 with the goal of paying for eligible developer and public costs. Page 1 1 April 27, 2022 2. TIF District 1-20: 12-31-21 Balance= $104,220 -Allocate $104,220 to Block 52 Redevelopment TIF District 1-45 with the goal of paying for eligible developer and public costs. 3. TIF District 1-22: 12-31-21 Balance= $145,512 -Allocate $145,512 to Block 52 Redevelopment TIF District 1-45 with the goal of paying for eligible developer and public costs. 4. TIF District 1-34: 12-31-21 Balance= $54,503 —Allocate $54,503 to Block 52 Redevelopment TIF District 1-45 with the goal of paying for eligible developer and public costs. 5. TIF District 1-40: 12-31-21 Balance= $1,598 —Allocate $1,598 to Block 52 Redevelopment TIF District 1-45 with the goal of paying for eligible developer and public costs. Total Pooled TIF increment dollars allocated to Block 52 Redevelopment TIF 1-45 to pay for eligible developer and public costs = $323,834 B. Block 34 Renovation and Renewal TIF District 1-## 1. TIF District 1-06: 12-31-21 Balance = Projected increment dollars and Interfund Loan Repayment from TIF District 1-41 = $215,000 — Allocate $215,000 to Block 34 TIF District 1-## with the goal of paying for eligible developer and public costs. Total Pooled TIF increment dollars allocated to Block 34 TIF 1-## to pay for eligible developer and public costs = $215,000 Affordable Housing Projects: The EDA will commit Pooled TIF funds to Affordable Housing Proposals -Projects as shown below: A. Headwaters Development Affordable Housing TIF District 1-42 and 1-43: 1. TIF District 1-19: 12-31-21 Balance = $131,947 — Allocate $131,947 to Headwaters Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of paying for eligible developer and public costs. Page 12 April 27, 2022 2. TIF District 1-22: 12-31-21 Balance = $170,361— Allocate $170,361 to Headwaters Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of paying for eligible developer and public costs. 3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to Headwaters Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of paying for eligible developer and public costs. 4. TIF District 1-29: 12-31-21 Balance= $193,964 —Allocate $194,964 to Headwaters Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of paying for eligible developer and public costs. 5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to Headwaters Development Affordable Housing Development TIF District 1-42 and 1-43 with the goal of paying for eligible developer and public costs. Total Pooled TIF increment dollars allocated to Headwaters Development Affordable Housing TIF District 1-42 and 1-43 to pay for eligible developer and public costs = $783,494 B. Duffy Development LIHTC Muti-Family Development Proposal (no new TIF District) 1. TIF District 1-19: 12-31-21 Balance= $131,947 —Allocate $131,947 to Duffy Development Affordable Housing Development Proposal (no new TIF District created) with the goal of paying for eligible developer and public costs. 2. TIF District 1-22: 12-31-21 Balance = $170,361—Allocate $170,361 to Duffy Development Affordable Housing Development Proposal (no new TIF District created) with the goal of paying for eligible developer and public costs. 3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to Duffy Development Affordable Housing Development Proposal (no new TIF District created) with the goal of paying for eligible developer and public costs. 4. TIF District 1-29: 12-31-21 Balance = $193,964 — Allocate $194,964 to Duffy Development Affordable Housing Development Proposal (no new TIF District created) with the goal of paying for eligible developer and public costs. 5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to Duffy Development Affordable Housing Development Proposal (no new TIF District created) with the goal of paying for eligible developer and public costs. Page 13 April 27, 2022 Total Pooled TIF increment dollars allocated to Duffy Development Affordable Housing Development Proposal (no new TIF District created) with the goal of paying for eligible developer and public costs = $783,494 or a greater or lessor amount as determined by the EDA. C. 4th Street East -Future Affordable Housing Development TIF District 1-##? 1. TIF District 1-19: 12-31-21 Balance= $131,947 —Allocate $131,947 to 4th Street East Future Affordable Housing Development TIF District 1-## with the goal of paying for eligible developer and public costs. 2. TIF District 1-22: 12-31-21 Balance = $170,361— Allocate $170,361 to 4th Street East Future Affordable Housing Development TIF District 1-## with the goal of paying for eligible developer and public costs. 3. TIF District 1-24: 12-31-21 Balance = $174,076 - Allocate $174,076 to 4th Street East Future Affordable Housing Development TIF District 1-## with the goal of paying for eligible developer and public costs. 4. TIF District 1-29: 12-31-21 Balance= $193,964 —Allocate $194,964 to 4th Street East Future Affordable Housing Development TIF District 1-## with the goal of paying for eligible developer and public costs. 5. TIF District 1-30: 12-31-21 Balance = $113,146 — Allocate $113,146 to 4th Street East Future Affordable Housing Development TIF District 1-## with the goal of paying for eligible developer and public costs. Total Pooled TIF increment dollars allocated to 41n Street East Future Affordable Housing Development TIF District 1-## to pay for eligible developer and public costs = $783,494 or a grater or lessor amount as determined by the EDA. In adopting the Pooled TIF Allocation and Spending Plan, the EDA, as needed, may amend the budget set forth in the Tax Increment Financing Plans for the TIF Districts as necessary to provide for the assistance authorized by the Plan. The EDA may also take any other action necessary and authorized under the Act in connection with the Plan above as required. The components of the Plan are subject to Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Law"), if applicable, and shall be subject to the City's Business Subsidy Policy. Page 14 April 27, 2022 Policy Statements for Management of Available Tax Increment Financing (TIF) Funds The City of Monticello Economic Development Authority (the "EDA") has prepared the following policy statements to guide both staff and EDA members to make consistent and informed financial decisions regarding the use of available tax increment financing (TIF) funds. The policy statements are intended to be a guide. The EDA may determine to allocate funds to other types of projects, not included below, based on other criteria and factors that may exist. The EDA defines "available TIF funds" as both current and future projected dollars legally available within established TIF funds, and not committed to existing obligations, for the EDA to spend on redevelopment and/or assisting affordable housing projects, all pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, inclusive, as amended (the "TIF Act"). POLICY STATEMENTS: Redevelopment Projects The EDA will consider allocating available TIF funds, without priority order, to the following types of redevelopment projects: 1. Acquisition of property — Block 52 to facilitate redevelopment consistent with the objectives of the Downtown Small Area Study. 2. Acquisition of Property — Block 34 to facilitate redevelopment consistent with the objectives of the Downtown Small Area Study. 3. Acquisition of Property - Other downtown sites that provide relatively immediate development opportunities that support the objectives of the Comprehensive Plan and the Downtown Small Area Study. 4. Masters Fifth Avenue Site —Assistance for underground or structured parking improvements for a development consistent with the objectives of the Comprehensive Plan, the Downtown Small Area Study, the TIF Plan and the existing Contract for Private Development, and approved by the EDA. 5. Assistance for installation of public or private infrastructure and value-added site improvements such as underground or structured parking for redevelopment projects consistent with the objectives of the Comprehensive Plan and/or the Downtown Small Area Study and approved by the EDA. Page 1 1 January 10, 2018 (Revised) 508678v2 MNI MN190-101 Affordable Housing Projects The EDA will consider allocating available TIF funds, without priority order, to the following types of affordable housing projects: 1. Assistance to lower overall project costs via reimbursement of TIF -eligible expenses related to projects that meet the EDA's value-added standards/criteria. 2. Block 52 — Assistance for underground or structured parking and/or value added site improvements in connection with a market -rate, multi -family housing with an affordable component. 3. City Core - Establishment of a scattered -site owner -occupied rehabilitation program. 4. Downtown Area - Assistance for underground or structured parking and/or value added site improvements in connection with development of market -rate, multi -family projects with an affordable component. 5. City-wide — Assistance for the installation of public or private infrastructure serving sites to be developed with market rate, multi -family housing with an affordable component 6. Acquisition of property for purposes of facilitating development of a market -rate, multi- family housing project with an affordable component consistent with the goals and objectives of the Comprehensive Plan. Page 12 January 10, 2018 (Revised) 508678v2 MNI MN190-101 EXHIBI' PRELIMINARY FOR DISCUSSION ONLY City of Monticello Tax Increment Financing Districts Year -End Cash Balance 1,3 Cash Available as as of Year End 2021 (preliminary, un -audited) FUTURE - Cash Balance Estimates as of Year End 20306 Funds TIF District Available Funds for for Available Affordable Returned Funds ..• to Lccal Total Funds TIF District for for Affordable Total Funds Redevelopment .• .. Housing Projects Projects Jurisdictions Projects Projects TIF 1-6 5 18,001 18,001 TIF 1-6 5 468,001 468,001 TIF 1-19 131,947 131,947 TIF 1-19 194,615 194,615 TIF 1-20 104,220 104,220 TIF 1-20 117,795 117,795 TIF 1-22 145,512 170,361 188,359 504,232 TIF 1-22 7 258,302 222,804 481,106 TIF 1-24 174,076174 076 TIF 1-24 TIF 1-29 TIF 1-30 TIF 1-34 TIF 60,440 387,986 391,284 110,983 53,388 387,986 391,284 110,983 60,440 53_,388 TIF 1-29 193,964 - 193,964 TIF 1-30 113,146 113,146 TIF 1-34 54,503 54,503 TIF 1-40 1,598 1,598 TIF 1-41 -41 z 904,539 -31,060 0 2,265,599 Total 323,834 783,494 188,359 r 1,295,687 1 Notes: 1. The facts for each individual TIF district should be reviewed and confir a : spending of fu, 2. These districts are not planned to be decertified before year 2030. The L, ice shown is as estimated as of year-end 2030. 3. Available funds must be spent within the bo! indaries of Redevelopment Prc,. No. 1 or pursuant to the TIF law and any temporary laws that may apply. 4. The funds for TIF 1-6 are shown here as available for "Redevelopmer P, ejects". The funds are also available to pay for housing or economic development project costs, should the EDA so determine. The analysis assumes TIF 41 will generate sufficient tax increment to repay TIF 1-6 the outstanding interfund loan. 5. The amounts shown are : ker use of funds to meet existing ,uligations. EDA may captitalize on future flow of funds with approval by resolution. EDA may reimburse itself throu,,' i interfund TIF Ioap 6. The balance does not include fund that m --v be available if land held for resale is sold. The land held for resale at the end of 2020 was valued at $163,200. The balances shown do not take i nio account the spend -down of these funds prior to Year End 2030; there are no specific plans at this time for use of this projected Future Cash Balance. 7. Funds may be available for spending pursuant to "Temporary Transfer Authority (2021 Law)" subject to confirmation with State Auditor and potential change in statement of position by the State Auditor. 8. Analysis assumes that payments due on Pay -go TIF Notes have been recorded as of December 31, 2021, and that the year-end cash balances do not include funds obligated to outstanding notes payble on February 1. NORTHLAND Pusu- FINANci 2/23/2022 EDA: 04/27/22 8. Consideration of Update of Industrial Site Study through the CET Grant Scope of Work — Bolton & Menk Staff (JT) A. REFERENCE AND BACKGROUND: Bolton and Menk, Inc., the consultant under contract to complete the Industrial Land Analysis under the Community Energy Transition (CET) Grant scope of work, is progressing in its analysis of two potential areas that may be options as future industrial development sites. The goal of the update presentation is to provide the EDA with insights and information about the content and format of the study and allow feedback to the consultant team regarding its findings and possible recommendations. The consultant staff will use a power point format to during the meeting. They will also have a first draft available for distribution and review at the meeting. The Contract document outlining the Study scope of work is attached as Exhibit A. The funding source for the Study is through the CET Grant. Al. STAFF IMPACT: There is a limited staff impact in presenting an update of the DRAFT Industrial Land Analysis Study to the EDA. A2. BUDGET IMPACT: The budget for the Industrial Land Analysis Study is derived through the CET Grant. There is no incremental budget impact from providing an update to the EDA. The cost of update presentations to the EDA and Planning Commission was built into the approved Budget and Scope of Work in the Study Contract. B. ALTERNATIVE ACTIONS: 1. No motion; staff is seeking EDA discussion and input into the Industrial Land Analysis Study. C. STAFF RECOMMENDATION: No recommendation is offered. Staff is seeking to apprise the EDA of the Study findings and recommendations at this point in time. The EDA's comments will help inform Bolton and Menk as it completes the Study in the next 35 to 45 days. D. SUPPORTING DATA: a. Industrial Land Analysis Study Contract w/ Bolton and Menk PROFESSIONAL SERVICES AGREEMENT AGREEMENT made this day of March, 2022, by and between the CITY OF MONTICELLO, a Minnesota municipal corporation ("City") and BOLTON & MENK, INC., a Minnesota corporation (hereinafter referred to as "Engineer"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. SCOPE OF SERVICES. The City retains Engineer for professional engineering services regarding the Monticello Industrial Land Use Feasibility Analysis ("Project"). The Engineer agrees to furnish and perform services in connection with the Project as described in Exhibit "A", Scope of Services, attached hereto. Upon mutual agreement of the parties, additional services may be authorized and this Agreement will be revised in writing and signed by the City and Engineer. 2. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents," all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Professional Services Agreement; B. Insurance Certificate; C. Engineer's Proposal dated January 28, 2022 ("Proposal"). In the event of conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts, with Contract Document "A" having the first priority and Contract Document "C" having the last priority. 3. COMPENSATION. Engineer shall be paid by the City for the services described in Exhibit "A" in accordance with the Schedule of Fees attached hereto as Exhibit "B". Compensation shall not exceed Forty Thousand and no/100ths ($40,000.00) Dollars, inclusive of expenses. Engineer shall bill the City as the work progresses. Payment shall be made by the City within thirty-five (35) days of receipt of an invoice. In the event the City changes or is required to change the scope or duration of the Project from that described in Exhibit "A", and such changes require additional services by the Engineer, the Engineer shall be entitled to additional compensation at the applicable hourly rates set forth in Exhibit "A". To the fullest extent practical, the Engineer shall give notice to the City of any additional services, prior to furnishing such additional services. Except for additional services required to address emergencies or acts of God that impact the Project, the Engineer shall furnish an estimate of additional cost, prior to authorization of the changed scope of services. 2209980 4. DOCUMENT OWNERSHIP. All reports, plans, models, diagrams, analyses, and information generated in connection with performance of this Agreement shall be the property of the City. The City may use the information for its purposes. 5. CHANGE ORDERS. All change orders, regardless of amount, must be approved in advance and in writing by the City. No payment will be due or made for work done in advance of such approval. 6. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Engineer shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 7. STANDARD OF CARE. Engineer shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional Engineer under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Engineer's services. 8. INDEMNIFICATION. Engineer shall indemnify and hold harmless the City, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of the execution or performance of the services provided for herein and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising hereunder. 9. INSURANCE. A. The Engineer agrees to maintain, at Engineer's expense a commercial general liability (CGL) and excess or umbrella general liability insurance policy or policies insuring Engineer against claims for bodily injury, death or property damage arising out of Engineer's general business activities. The general liability coverage shall provide limits of not less than $2,000,000 per occurrence and not less than $2,000,000 general aggregate. Coverage shall include Premises and Operations Bodily Injury and Property Damage; Personal and Advertising Injury; Blanket Contractual Liability; Products and Completed Operations Liability. B. The Engineer also agrees to maintain, at Engineer's expense, a single limit or combined limit automobile liability insurance and excess or umbrella liability policy or policies insuring owned, non -owned and hired vehicles used by Engineer under this Agreement. The automobile liability coverages shall provide limits of not less than $1,000,000 per accident for property damage, $2,000,000 for bodily injuries, death and damages to any one person and $2,000,000 for total bodily injury, death and damage claims arising from one accident. C. City shall be named Additional Insured for the above CGL and Auto liability policies. 2 2209980 D. The Engineer agrees to maintain, at the Engineer's expense, statutory worker's compensation coverage together with Coverage B, Employer's Liability limits of not less than $500,000 for Bodily Injury by Disease per employee, $500,000.00 for Bodily Injury by Disease aggregate and $500,000 for Bodily Injury by Accident. E. The Engineer also agrees to maintain, at Engineer's expense, Professional Liability Insurance coverage insuring Engineer against damages for legal liability arising from a negligent act, error or omission in the performance of professional services required by this Agreement during the period of Engineer's services and for three years following date of final completion of its services. The professional liability insurance coverage shall provide limits of not less than $2,000,000 per claim and an annual aggregate of not less than $2,000,000 on a claims -made basis. F. City shall maintain statutory Workers Compensation insurance coverage on all of City's employees and other liability insurance coverage for injury and property damage to third parties due to the City's negligence. G. Prior to commencement of this Agreement, Engineer will provide the City with certificates of insurance, showing evidence of required coverages. All policies of insurance shall contain a provision or endorsement that the coverage afforded will not be canceled or reduced in limits by endorsement for any reason except non-payment of premium, until at least 30 days prior written notice has been given to the Certificate Holder, and at least 10 days prior written notice in the case of non-payment of premium. 10. INDEPENDENT CONTRACTOR. The City hereby retains Engineer as an independent contractor upon the terms and conditions set forth in this Agreement. Engineer is not an employee of the City and is free to contract with other entities as provided herein. Engineer shall be responsible for selecting the means and methods of performing the work. Engineer shall furnish any and all supplies, equipment, and incidentals necessary for Engineer's performance under this Agreement. City and Engineer agree that Engineer shall not at any time or in any manner represent that Engineer or any of Engineer's agents or employees are in any manner agents or employees of the City. Engineer shall be exclusively responsible under this Agreement for Engineer's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 11. SUBCONTRACTORS. Engineer shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Engineer shall comply with Minnesota Statutes § 471.425. Engineer must pay subcontractors for all undisputed services provided by subcontractors within ten (10) days of Engineer's receipt of payment from City. Engineer must pay interest of one and five -tenths percent (1.5%) per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). 3 220998v1 12. CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Carver County Minnesota. 13. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Engineer must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Engineer pursuant to this Agreement. Engineer is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Engineer receives a request to release data, Engineer must immediately notify City. City will give Engineer instructions concerning the release of the data to the requesting party before the data is released. Engineer agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Engineer's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 14. COPYRIGHT. Engineer shall defend actions or claims charging infringement of any copyright or software license by reason of the use or adoption of any software, designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting therefrom. 15. PATENTED DEVICES, MATERIALS AND PROCESSES. If the Contract requires, or the Engineer desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, the Engineer shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, the Engineer shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the Contract, and shall indemnify and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 16. RECORDS. Engineer shall maintain complete and accurate records of hours worked and expenses involved in the performance of services. 17. ASSIGNMENT. Neither party shall assign this Agreement, or any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 4 220998v1 EXHIBIT "A" To Professional Service Agreement Task 1: Project Management, Coordination, and Meetings Our team thrives on working toward solutions that are well -supported by stakeholders, implementable, and technically strong. We will develop a project management plan to bring this project to a successful conclusion. Task l .1: Project Management and Meetings We will manage all project administration, coordination, timely document delivery, meeting preparation and convening, and quality assurance/quality control (QA/QC) planning and functions. This will include regular check -ins with city staff as needed throughout the process. We anticipate biweekly meetings with staff and up to two presentations to the planning commission and/or city council. Task 1.2: Joint Session Meeting with City Council, EDA and Industrial and Economic Development Committee After completing the two site analyses, the team will conduct a work session with the Councill, EDA and IEDC. The results from the work session will be used to complete the final deliverable. Task 1 Deliverables: Meeting agenda, notes, and other materials; facilitated kickoff meeting; finalized scope of work and schedule Task 2: Industrial Land Use and Trend Analysis Task 2.1: Land Use and Trend Analysis An important part of this study will be to determine the range of acceptable uses within the study area. We will conduct a high-level market assessment of the range of uses that may be suitable here (from logistics to maker spaces), their site needs, and preferences. Factors to be considered in this analysis will include, but not be limited to • Expected property value and jobs per acre for each development type • Examples of comparable industrial/mixed-use developments from peer communities • Best practices related to sustainable development models, such as eco -industrial districts • Best practices for industrial parks with amenities that differentiate them from others • Assessment of how industrial park and employment uses can be functionally and physically integrated with communities • Discussion of the relationship between feasible development types and city policy goals • Discussion of a cost / benefit methodology The outcome of this task will be a graphic -oriented summary memo outlining the findings from this analysis and implications for the two subsequent tasks. Task 2 Deliverables: Graphic summary memo 6 22o99svi 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof, as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Engineer. In the event of termination, the City shall be obligated to the Engineer for payment of amounts due and owing including payment for services performed or furnished to the date and time of termination. Dated: Ma y Gh 1(2� , 2022. CITY OF MONTICELLO By: oyd H i gait, Wyor And Rac el Le a , City ministrator Dated: 92022. BOLTON & MENK, INC. am 5 2209980 �A(� '?— - )�\oy Haila Maze, Principal Planner Task 3: East Monticello Area Industrial Feasibility Task 3.1: Site Characteristics and Constraints - We will conduct a site assessment and suitability analysis for the East Monticello site. This will include evaluation of topography, existing and planned transportation access, wetlands, shoreland, floodplain, utility corridors and easements, primary soil types, and known environmental hazards. These elements will be mapped, along with narrative describing any major considerations and constraints. Unbuildable areas will be identified, as well as any potential needs for mitigation or site improvement needed prior to development. Task 3.2: Land Use Plan We will develop three alternative approaches (schematic layouts) for the East Monticello study area based on site characteristics, transportation, utility corridor planning, and community integration. This will include identifying the size and general configuration of parcels, site layouts, and circulation patterns best suited for the area, as well as recommendations regarding land use types. We will evaluate the three alternatives for workability, tax value, urban design, transportation and circulation, environmental, and infrastructure. This task will include consideration of existing zoning and land use guidance, including identifying any changes needed to accommodate a proposed development plan. The task will also include high level estimates of added tax base, jobs, and other benefits to the local economy and community from the proposed development in the land use plan. Task 3.3: Infrastructure Plan Using our prior experience with the Northwest Metro Mississippi River Crossings Feasibility Analysis and other work along the I-94 corridor, we will describe the state of planning around the I-94 interchange area and its implications for site development plans. We will review and summarize how adjacent jurisdiction plans identify future partnering options for major transportation improvements and the implications for land use development. This will include consideration of potential connections with existing and planned road network in Wright County and the Cities of Monticello, Otsego, and St. Michael. The team will also develop high level cost estimates for public utility and transportation improvements needed to serve the development. This will be compared with the high-level benefits generated in Task 3.2 to provide a general cost -benefit assessment of the proposed development. This will be completed in parallel with the Northwest Monticello Site so they can be compared to each other Task 3 Deliverables: Graphic summary memo with related maps, graphics, and exhibits 7 220998v1 Task 4: Northwest Monticello Area Industrial Feasibility Task 4.1: Site Analysis Review While analysis has already been completed for this area, changes in market conditions, infrastructure planning, and additional information available make it advisable to renew the approach. We will review, consolidate, and confirm the previous land use analysis that has been conducted for the Northwest Monticello area. This will include consideration of general site characteristics and constraints, topography, general soil types, existing and planned transportation access, wetlands, shoreland, floodplain, utility corridors, and any known environmental hazards. As needed, these elements will be mapped, along with narrative describing any major considerations and constraints. Unbuildable areas will be identified, as well as any potential needs for mitigation or site improvement needed prior to development. Task 4.2: Land Use Plan Review and Update Based on this analysis, we will reconfirm and/or update planned industrial uses for the Northwest Monticello area. This may include up to two alternative development scenarios. This will include identifying the size and general configuration of parcels, site layouts, and circulation patterns best suited for the area, and recommendations regarding land use types. This task will include consideration of existing zoning and land use guidance, including identifying any changes that would be needed to accommodate a proposed development plan. The task will also include high level estimates of added tax base, jobs, and other benefits to the local economy and community from the proposed development in the land use plan. The team will also develop high level cost estimates for public utility and transportation improvements needed to serve the development. This will be compared with the high-level benefits generated to provide a general cost -benefit assessment of the proposed development. This will be completed in parallel with the East Monticello Site so they can be compared to each other Task 4 Deliverables: Summary memo with related maps, graphics, and exhibits 8 220998v1 EXHIBIT "B" To Professional Service Agreement Detailed Cost Estimate 44 Task Work Task Description Total No. Cost 1.0 Project Management, Coordination, and Meetings $7,800 2.0 Land Use & Trend Analysis $6,240 3.0 East Monticello Industrial Feasibility $15;,040 4.0 1 Northwest Monticello Area Industrial Feasibility $10,760 Subtotal 1 $39,840 220998v1 EDA Agenda: 04/27/22 9. Economic Development Director's Report (JT) A. Prospect List Update: Please see the updated Prospect List as Exhibit A. B. Redevelopment Grant Conference Information: April 28 and 29, 2022 — Breezy Point, MN C. MN -DEED Redevelopment Grant Awards Press Release Date of Contact L/12/2016 L/17/2016 /22/2017 /22/2018 1/29/2018 12/14/2018 3/28/2019 5/9/2019 8/16/2019 9/19/2019 1/20/2020 8/27/2020 12/23/2020 11/5/2020 04/22/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55- $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet PROSPECT LIST Company Name Business Category Project Description MN DEED Prospect Metal Mfg. Exist Facility + Equip Project Armstrong Precision Machining New Facility Constr. + Equip UMC Co -Working Space Project #6580 Metal Mfg. New Facility Constr. Karlsburger Foods Food Prod uc Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. 04/22/2022 Building -Facility Retained lobs New lobs Total Investment Project Status 65,000 sq. ft. 0 55- $2,500,000 Active Search 100 58,000 sq. ft. 205 60 $10,831,000 Almost Done 70,000 sq. ft. 0 49 $5,480,000 On Hold 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 12,000 sq. ft. 10 $1,200,000 Concept Stage Project Comet Commercial Bus New Const. 1,700 sq. ft. +/- 7 $700,000 Active Search Project Nutt Co -Working Space Existing Building ? ? ? ? Concept Stage Project FSJP Light Mfg -Res. Lab New Construction 20,000 sq. ft. 0 20+/- $1,400,000 Active Search Project Jaguar Office New Construction 22,000 sq. ft. 22 4 $2,700,000 Active Search Project Kata Service New Construction 22,000 to 35,000 sq. 0 25 $7,900,000 Concept Stage ft. Project Panda v3 Service -Child Care New Construction 10,500 sq. ft. 0 21 $4,100,000 Active Search Project Nuss Combo Service -sale New Construction 30,000 sq. ft. 0 20 to $3,500,000 Almost Done 30 Project TO Industrial Existing or New Construction 10,000 to 15,000 sq. 0 5 to 7 $800,000 Concept Stage ft. Project Flower Office Existing 7,000-8,000 sq. ft. 0 12 $750,000 Concept Stage 2/16/2021 3/19/2021 2/28/2022 6/16/2021 6/30/2021 7/29/2021 10/28/2021 Project Cold Industrial -Warehouse -Di New Construction 80,000 sq. ft. 0 21 $12,000,000 Concept Stage stri Project Orion Warehouse-Distributi New Construction 832,500 sq. ft. 0 500 $125,000,000 Active Search on Project Emma II Light Ind -Assembly New Construction 20,000 sq. ff. 0 4 $1,350,000 Active Search Project UBAA Child Care Services New Construction or Exist 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search Project Ecosphere Industrial Tech Mfg. New Construction 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search Project BA710 Lt Assem-Distribute New Construction 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search Project Stallion Technology Service New Construction 42,000 sq. ft. 40 $3,600,000 Active Search 2/7/2022 Project Shepherd Lt Assembly Distribution New Construction 75,000 sq. ft. III Contacts: M =08 YTD = 09 75 $10,500,000 Active Search BROWNFIELDS AND BEYOND: THURSDAY, APR IL28 -FRIDAY, APR IL29,2022 PROGRAM m EMPLOYMENT AND ECONOMIC DEVELOPMENT CONFERENCE SCHEDULE -THURSDAY, APR IL28 7:30 AM Registration Opens 7:45 AM - 8:45 AM Breakfast Buffet and Networking 8:45 AM -9:00 AM Welcome 9:00 AM -10:15 AM KEYNOTE PLENARY Mark Ethen, Northeast Bank Filling Empty Buildings and Lots: John Lichter, Carlson McCain Practical Ideas and Answers 10:15 AM -10:30 AM Networking Break 10:30 AM -11:45 AM CONCURRENT Heidi Peper, Stantec BREAKOUT SESSION Vapor Intrusion and Legal Liability Steve Grove, DEED Issues 10:30 AM -11:45 AM CONCURRENT John Hinzman, City of BREAKOUT SESSION Hastings Show me the Money 11:45 AM -12:45 PM Lunch 12:45 PM - 1:00 PM PLENARY SESSION DEED Commissioner Address 1:00 PM - 2:00 PM PLENARY SESSION When is that ^&'$ Building Going to Develop? 2:00 PM - 2:15 PM Networking Break 2:15 PM - 3:15 PM CONCURRENT BREAKOUT SESSION Environmental Justice 2:15 PM - 3:15 PM CONCURRENT BREAKOUT SESSION Redevelopment Roundtable 3:15 PM - 3:30 PM Networking Break 3:30 PM - 4:30 PM PLENARY SESSION Building Community: A Cooperative Effort to Redevelopment 4:30 PM - 4:35 PM Day 1 Wrap Up Evening Reception 5:00 - 7:00 PM Hosted by Inland Development Partners, Braun Intertec Lakeside Ballroom, located in the Marina II Building on the second floo Kristin Lukes, DEED Deb Brown, SaveYour.Town Breezy Point Lobby Whitebirch Foyer, I, and II Whitebirch I, II Whitebirch I, II Dan Schleck, Messerli Kramer Minnesota I Mark Ethen, Northeast Bank John Lichter, Carlson McCain Chris Goscinak, MPCA Kristin Lukes, DEED Minnesota 11 Heidi Peper, Stantec Whitebirch I, II Steve Grove, DEED Whitebirch 1, II Commissioner John Hinzman, City of Whitebirch 1, 11 Hastings Kristin Prososki, SEH Ned Brooks, MPCA Minnesota I Shanna Schmitt, MPCA Amy Schremmp, DEED Minnesota II (Moderator) Sarina Otaibi, Department of Whitebirch I, II Public Transformation Melissa Peterson, Bluenose Gopher Public House Kristin Lukes, DEED Whitebirch I, II For full descriptions, bios and presentations, scan the QR Code, or go to https://mn.gov/deed/events/brownfields CONFERENCE SCHEDULE -FRIDAY, APRIL 29 8:00 AM - 8:45 AM Breakfast Buffet and Networking sxaP a PE Whitebirch Foyer, I, and II 8:45 AM - 9:00 AM Welcome and Recap of Day 1 Meredith Udoibok, DEED Whitebirch I, II 9:00 AM -10:15 AM PLENARY SESSION Monte Hilleman, Port Whitebirch I, II WHITEBIRCH 1 Then and Now: Market Drivers Consulting/Saint Paul Port of Land Use and Economic Authority .E, Development 10:15 AM -10:30 AM Networking Break 10:30 AM -11:45 AM PLENARY SESSION Samantha DiMaggio, City of Whitebirch I, II The Good, the Bad and the Farmington Ugly: Behind the Scenes of a Elissa Hansen, Northspan Development Deal Adam Kienberger, City of Rosemount Amanda Othoudt, Benton Econ Partnership, Inc Julie Wischnack, City of Minnetonka Jordan Zeller, Renville County HRA/EDA 11:45 AM -12:00 PM Closing Kristin Lukes, DEED Whitebirch I, II CONFERENCE MAPS Convention Center Lower Level sxaP a PE MINNESOTA I rneH MINNESOTA II Convention Center Upper Level IAL a�M WHITEBIRCH 1 .E, WHITEBIRCH 11 THURSDAY LUNCH :■ LOUCKS THURSDAY BREAKFAST CARLSON ��N M!;CAI N e"ci"seam. \ 1— spa --\ —IR .""e"r- FRIDAY BREAKFAST ® Stantec NETWORKING BREAKS MESSERLI I KRAMER ATTORNEYS & ADVISORS wsb� KEYNOTE SPEAKER BRAUN INTERTEC The Science You Build On. PLENARY SPONSOR 101,E LANDMARK 9■1N Environmental Brown to Green, Guaranteed. `" ©AMERICAN ENGINEERING - TESTING, INC. 5 E H 0 SOUTHWEST INITIATIVE FOUNDATION aStoel RiveSLLP CONFERENCE SUPPORTERS Brainerd Lakes Area Economic Development Corporation Minnesota Brownfields # BROWN FI ELDSAN DBEYON D BreezyPoint (open) M EMPLOYMENT AND ECONOMIC DEVELOPMENT 4/21/22, 4:14 PM News News / Minnesota Department of Employment and Economic Development EMPLOYMENT ND ECONOMIC DEVELOPMENT Find news from prior years in DEED's digital library (https://deed.contentdm.ocic.orgLgital/collection/p16105co111).. View entire list DEED Awards More than $3.08 Million in Grants and Loans to Restore Blighted Lands to Productive Use April 20, 2022 1 Economic Development St. Paul —The Minnesota Department of Employment and Economic Development (DEED) awarded more than $3.08 million in grants and loans to aid in the redevelopment of blighted or dilapidated properties. "These grants are an excellent tool for turning previously unusable sites into space for future businesses," said DEED Commissioner Steve Grove. "In partnership with forward -thinking cities, the awards will spark future business growth in nine communities across Minnesota." https://mn.gov/deed/newscenter/press-releases/?id=525664 1/4 4/21/22, 4:14 PM News / Minnesota Department of Employment and Economic Development The grants and loans are expected to create 263 jobs and retain 224 jobs in nine Minnesota communities. Eight of these projects are Redevelopment Grants Program (https://mn.gov/deed government/financial- assistance/cleanup redevelopmentgrantprogram.jsp). awards that help communities with the cost of redeveloping blighted industrial, residential or commercial sites. The ninth project is funded by the Demolition Loan Program (https: mn.gov deed govern ment/financial- assistance/cleanup/demolition.jsp), with an award of $109,900. The Demolition Loan Program assists communities with the removal of dilapidated or unsafe structures to prep sites for future development. Details for all nine projects are listed below: Redevelopment Grant Program Bloomington — Gyropolis Investments, LLC The city of Bloomington is awarded $58,400 in Redevelopment Grant funds for demolition and infrastructure improvements on this 0.74 -acre site. Formerly used for retail and as a service station, the site will be redeveloped into a 1,300 sq. ft. expansion of an adjacent existing restaurant. The project is anticipated to create 10 jobs, retain 18 jobs, increase the tax base by $23,302, and leverage $1.3 million in private investment. Matching funds will be provided by tax increment financing and the developer. Local contact — Barbara Wolff, (952) 563-4706 Browns Valley — ToughAg Redevelopment The City of Browns Valley is awarded $117,000 in Redevelopment Grant funds for demolition, asbestos abatement, and public infrastructure improvements on this 0.28 -acre site. Historically used as commercial, office, and residential space, this site will be redeveloped into a 10,600 sq. ft. warehouse, distribution and office space. The project is anticipated to create five jobs, retain seven jobs, increase the tax base by $22,899, and leverage over $2.5 million in private investment. Matching funds will be provided by tax increment financing. Local contact—Jodi Hook -Hansen, (320) 695-2110 Duluth Economic Development Authority — Historic Duluth Armory The Duluth Economic Development Authority (DEDA) is awarded $672,918 in Redevelopment Grant funds for abatement and building demolition on this 1.81 -acre site. Historically used by the Naval Militia and National Guard, and vacant for nearly 20 years, the 93,217 sq. ft. building will be renovated and repurposed with shared commercial kitchen, food hall and brewery, entertainment, training and exhibit space, and leasable office space. The project is anticipated to create 26 jobs, retain 37 jobs, increase the tax base by $279,055, and leverage $13.7 million in private investment. Matching funds will be provided by the developer. Local contact — Chris Fleege, (218) 730-5297 https://mn.gov/deed/newscenter/press-releases/?id=525664 2/4 4/21/22, 4:14 PM News / Minnesota Department of Employment and Economic Development Edina — 7001 France Avenue The city of Edina is awarded $650,000 in Redevelopment Grant funds for abatement, demolition, and infrastructure improvements on this 5.7 -acre site. Historically part of a gravel and sand pit, then used for office, this site will be redeveloped into a 24 -story, 267 -unit apartment building, a seven -story office/retail building totaling 293,000 sq. ft., an 8 -story parking garage, and a 6,000 sq. ft. bank. The project is anticipated to create 143 jobs, retain 126 jobs, increase the tax base by $4,062,918, and leverage over $228 million of private investment. Matching funds will be provided by the developer. Local contact — Scott Neal, (952) 826-0401 Faribault — Farmer Seed and Nursery The city of Faribault is awarded $611,455 in Redevelopment Grant funds for demolition, abatement and geotechnical soil corrections on this 1.3 -acre site. Formerly used for a seed and nursery, the site will be redeveloped into 60 apartments and 48,470 sq. ft. of climate -controlled storage. The project is anticipated to create two jobs, increase the tax base by $151,429, and leverage $10.6 million in private investment. Matching funds will be provided by tax increment financing and the developer. Local contact — Deanna Kuennen, (507) 333-0376 Mankato — Range Street Redevelopment The City of Mankato is awarded $299,479 in Redevelopment Grant funds for demolition and public infrastructure improvements on this 6.6 -acre site. Formerly occupied industrial and commercial uses, this site will be redeveloped into two, four-story mixed-use buildings including 104 residential units and 20,000 sq. ft. of commercial space and a separate 4,000 sq. ft. commercial building. The project is anticipated to create 14 jobs, increase the tax base by $306,916, and leverage $21.4 million in private investment. Matching funds will be paid by the developer. Local contact — Courtney Kramlinger (507) 387-8711 Monticello Economic Development Authority — Block 52 Redevelopment The Monticello Economic Development Authority is awarded $517,500 in Redevelopment Grant funds for asbestos abatement, demolition, and public infrastructure improvements on this 2.09 -acre site. Historically used for multiple commercial purposes, the site will be redeveloped into a five -story, 87 -unit housing complex with 10,500 sq. ft. of office space and approximately 20,000 sq. ft. of ground level commercial. The project is anticipated to create 45 jobs, retain 36 jobs, increase the tax base by $284,510, and leverage $26.3 million in private investment. Matching funds will be provided by the developer, local sources, tax increment financing and other grant sources. Local contact—Jim Th ares (763) 2 71 -3254 https://mn.gov/deed/newscenter/press-releases/?id=525664 3/4 4/21/22, 4:14 PM News / Minnesota Department of Employment and Economic Development St Paul —176 South Robert Street The city of St. Paul is awarded $158,196 in Redevelopment Grant funds for demolition on this 2.86 -acre site. Historically used for multiple commercial purposes and most recently a blood donation center, this site will be redeveloped into a 5 -story mixed-use building with 178 affordable units and 9,561 sq. ft. of commercial space. The project is anticipated to create 18 jobs, increase the tax base by $314,316, and leverage $60.4 million in private investment. Matching funds will be provided by the developer. Local contact — Marylin Rosendahl (651) 266-6702 Demolition Loan Program: Minnesota Statute § 1161.571 gives DEED the authority to award loans under the Demolition Loan Program. This program runs at the same time and funds are awarded from the same account as the Redevelopment Grant Program. The Demolition Loan Program assists communities with the removal of dilapidated, unsafe structures to prepare the site for a future, unnamed development. This round, DEED awarded one Demolition Loan to the City of Winnebago, in the amount of $109,900. To date, 13 Demolition Loans have been awarded totaling over $2.4 million in loan awards and reclaiming 39 acres of blighted property. City of Winnebago - SuperValu The City of Winnebago is awarded $109,900 in Demolition Loan funds for abatement and demolition of the former SuperValu grocery store. This 0.25 -acre site has the potential for a mixed-use, multi -building development. The City plans to issue an abatement bond to secure and repay the loan. Local contact—Angie Stier, (612) 799-8129 Permalink: http: mn.gov/deed/newscenter/press-releases/index.jsp?id=1045-525664 (http://mn.gov/deed/newscenter/press- releases/index jsp?id=1045-525664). View entire list Archives Categories Tags view as cloud RSS feed (/deed/rest/rss/Press Releases?id=1045-35332&detailPage=/deed/newscenter/press-releaseshndex.jsp). https://mn.gov/deed/newscenter/press-releases/?id=525664 4/4