EDA Agenda - 03/08/2023AGENDA
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, March 8, 2023 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig,
011ie Koropchak-White, and Councilmembers Lloyd Hilgart and
Tracy Hinz
Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Sarah
Rathlisberger and Hayden Stensgard
1. Call to Order
2. Roll Call 6:00 p.m.
3. Consideration of Additional Agenda Items
4. Consent Agenda
a. Consideration of Approving Regular Meeting Minutes— February 08, 2023
b. Consideration of Approving Payment of Bills
Regular Agenda
5. Consideration of WSB Economic Development Services Update Report
6. Consideration of Recommending new EDA Board Members for City Council Approval
7. Economic Development Director's Report
8. Adjourn
MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, February 8, 2023 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, 011ie
Koropchak-White, Hali Sittig, Councilmember Tracy Hinz
(Treasurer)
Commissioners Absent: Mayor Lloyd Hilgart
Staff Present: Executive Director Jim Thares, Hayden Stensgard
1. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order at
6:00 p.m.
2. Roll Call 6:00 p.m.
Mr. Johnson called the roll.
3. Annual Business Meeting
a. Consideration of electing EDA Officers
Executive Director Jim Thares provided an overview of the agenda item to the
EDA and the public. The EDA is asked to elect officers on an annual basis in
February, those offices are President, Vice -President, and Treasurer. Historically,
City Staff has been the Secretary for the EDA, and will continue to do so unless
otherwise specified by the EDA. Mr. Thares also noted that the councilmembers
on the EDA are eligible to hold an EDA office.
Mr. Johnson entertained nominations for President.
011ie Koropchak-White nominated Steve Johnson for EDA President.
JON MORPHEW MOVED TO CLOSE NOMINATIONS FOR EDA PRESIDENT. HALI
SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0.
Mr. Johnson entertained nominations for EDA Vice -President.
Steve Johnson nominated Jon Morphew for EDA Vice -President.
HALI SITTIG MOVED TO CLOSE NOMINATIONS FOR EDA VICE-PRESIDENT. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 5-0.
Mr. Johnson entertained nominations for EDA Treasurer.
Tracy Hinz nominated Hali Sittig for EDA Treasurer.
JON MORPHEW MOVED TO CLOSE NOMINATIONS FOR EDA TREASURER. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY, 5-0.
By consensus vote, the nominees were elected to their respective offices
unanimously, 5-0.
b. Consideration of reviewing EDA Bylaws
Staff and the EDA reviewed the EDA Bylaws and found there to be no revisions
necessary.
c. Consideration of reviewing EDA Enabling Resolution
Staff and the EDA reviewed the EDA Enabling Resolution and found there to
revisions necessary.
d. Consideration of EDA Financial Statements and Fund Balance Information
Executive Director Jim Thares provided an overview of the EDA 2022 financial
statements and fund balance information. The funding balance information
provided in the Statements is for year-end 2022.
Councilmember Tracy Hinz asked about the status of TIF District 1-22 in the
downtown area. Mr. Thares clarified that the decertification date of that TIF
district is within the next two years, and staff has been monitoring and preparing
accordingly.
4. Consideration of Additional Agenda Items
None
5. Consent Agenda
a. Consideration of Approving Regular Meeting Minutes —January 11, 2023
b. Consideration of Approving Payment of Bills
c. Consideration of Adopting Resolution 2023-01 Rescinding Purchase Agreement
with Powersports. LLC (Moon Motors) for a 1.46 -acre Darcel located at 9699
Fallon Avenue
d. Consideration of Adopting Resolution 2023-02 Rescinding Land Sale Option
Agreement with Washburn Computer Group connected to a 1.46 -acre parcel
located at 9699 Fallon Avenue
e. Consideration of Adopting Resolution 2023-03 Rescinding Preliminary
Development Agreement (PDA) between Moon Motors, LLC for a 9.64 -acre
parcel. Lot 1. Block 1. Otter Creek Crossing 7th Addition. located in Otter Creek
Business Park for a Dotential warehouse development
TRACY HINZ MOVED TO APPROVE THE FEBRUARY 8, 2023, REGULAR MEETING CONSENT
AGENDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0.
Regular Agenda
6. Economic Development Director's Report
Mr. Thares provided an overview of the agenda item. Mr. Thares gave an update of the
prospect list included in the agenda, and also noted that the EDA has received two
applications for the vacant position. It was anticipated the EDA will hold interviews prior
to its regular meeting on March 8, 2023.
Jon Morphew asked for clarification on how City staff is notified of the prospects within
the prospect list. Mr. Thares clarified that some of the inquiries are either directly to the
City or provided by the Minnesota Department of Employment and Economic
Development (MN -DEED). Often, Jim Gromberg WSB, is the source of the prospect
information because he is on MN-DEED's distribution list.
Mr. Thares also mentioned that the Economic Development Association of Minnesota
(EDAM) Day at the Capitol event is scheduled for February 22, 2023, and welcomed all
commissioners to attend.
7. Adjourn
TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA.
HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0, MEETING
ADJOURNED AT 6:33 P.M.
EDA Agenda: 3/7/23
4b. Consideration of Approving Payment of Bills
A. REFERENCE AND BACKGROUND:
Accounts Payable summary statements listing bills submitted during the previous month
are included for review.
B. ALTERNATIVE ACTIONS:
1. Motion to approve payment of bills through February 2023.
2. Motion to approve payment of bills through February 2023 with changes as
directed by the EDA.
C. STAFF RECOMMENDATION:
Staff recommends approval of Alternative #1.
D. SUPPORTING DATA:
A. Accounts Payable Summary Statements
Accounts Payable
Transactions by Account
User: Julie.Cheney
Printed: 02/10/2023 - 9:27AM
Batch: 00205.02.2023
Account Number
Vendor
Description
CITY3tjMSo!nti cello
GL Date Check No
Amount PO No
213-00000-220110
KENNEDY AND GRAVEN CHAR]
TIF1-44 - Washburn POS Expansion I 12/31/2022
126714
14.70
Vendor Subtotal for Dept:00000
14.70
213-46301-430400
KENNEDY AND GRAVEN CHAR]
Moon Motors Warehouse Developmer 12/31/2022
126714
231.00
213-46301-430400
KENNEDY AND GRAVEN CHAR]
General EDA- Dec 2022 12/31/2022
126714
306.00
213-46301-430400
KENNEDY AND GRAVEN CHAR]
Business Facade Grant Program - Dec 12/31/2022
126714
1,686.00
213-46301-430400
KENNEDY AND GRAVEN CHAR]
GMEF Loan - Monti RV Center - Dec 12/31/2022
126714
144.00
213-46301-430400
KENNEDY AND GRAVEN CHAR]
GMEF Loan - Car Wash - Dec 2022 12/31/2022
126714
1,954.00
Vendor Subtotal for Dept:46301
4,321.00
213-46301-431993
WSB & ASSOCIATES INC
Downtown Redevelopment Project - L 12/31/2022
0
154.50
213-46301-431993
WSB & ASSOCIATES INC
2022 Economic Services - Dec 2022 12/31/2022
0
2,148.00
Vendor Subtotal for Dept:46301
2,302.50
213-46301-433100
JAMES THARES
Mileage Reimbursement EDAM Conf 02/14/2023
0
136.24
213-46301-433100
JAMES THARES
Mileage Reimbursement Ehler Finana 02/14/2023
0
81.22
Vendor Subtotal for Dept:46301
217.46
213-46301-433100
HAYDEN STENSGARD
Mileage Reimbursement - EDAM Cor 02/14/2023
0
138.60
Vendor Subtotal for Dept:46301
138.60
AP -Transactions by Account (02/10/2023 - 9:27 AM) Page 1
Account Number
213-46301-461500
Vendor
Description
GL Date Check No
INNOVATIVE STUCCO INC Relocation Benefit - Final Claim 02/14/2023
Vendor Subtotal for Dept:46301
Subtotal for Fund: 213
Report Total:
126711
Amount PO No
4,500.00
4,500.00
11,494.26
11,494.26
AP -Transactions by Account (02/10/2023 - 9:27 AM) Page 2
Accounts Payable
CITY F
Y
Transactions b Account 1b
User: Julie.Cheney 3tjMSo!nti effo
Printed: 02/22/2023 - 12:05PM
Batch: 00206.02.2023
Account Number Vendor Description GL Date Check No Amount PO No
213-46301-433100 HAYDEN STENSGARD Mileage Reimbursement - 95.7 miles 02/28/2023 0 62.68
Vendor Subtotal for Dept:46301 62.68
Subtotal for Fund: 213 62.68
Report Total: 62.68
AP -Transactions by Account (02/22/2023 - 12:05 PM) Page 1
Accounts Payable
Transactions by Account
User: Julie.Cheney
Printed: 02/21/2023 - 2:24PM
Batch: 00201.02.2023
Account Number
Vendor
Description
CITYMonticello
GL Date Check No
Amount PO No
213-46301-433100
US BANK CORPORATE PMT SYS
Ehlers - Public Finance Seminar (HS)
02/15/2023
0
315.00
213-46301-433100
US BANK CORPORATE PMT SYS
EDAM - 2023 Winter Conference Reg
02/15/2023
0
700.00
213-46301-433100
US BANK CORPORATE PMT SYS
Ehlers - Public Finance Seminar (JT)
02/15/2023
0
315.00
Vendor Subtotal for
Dept:46301
1,330.00
213-46301-438200
CITY OF MONTICELLO
7256-004 - 130 Brdwy- Stormwtr
12/31/2022
0
26.25
213-46301-438200
CITY OF MONTICELLO
7256-007 - 103 Pine St- EDA
12/31/2022
0
0.00
213-46301-438200
CITY OF MONTICELLO
7256-008 - 112 River St. W EDA
12/31/2022
0
45.50
213-46301-438200
CITY OF MONTICELLO
7256-0010 - 101 Brdwy W -EDA
12/31/2022
0
0.00
213-46301-438200
CITY OF MONTICELLO
7256-0011 107 Brdwy W- EDA
12/31/2022
0
0.00
213-46301-438200
CITY OF MONTICELLO
7256-013 - 113 Brdwy W - EDA
12/31/2022
0
45.50
213-46301-438200
CITY OF MONTICELLO
7256-014 - 121 Brdwy W - EDA
12/31/2022
0
45.50
Vendor Subtotal for Dept:46301 162.75
213-46301-443300 US BANK CORPORATE PMT SYS EDAM - 2023 Membership Renewal ( 02/15/2023 0 95.00
Vendor Subtotal for Dept:46301 95.00
213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Jan Lunch (JT) 02/15/2023 0 20.00
Vendor Subtotal for Dept:46301 20.00
Subtotal for Fund: 213 1,607.75
AP -Transactions by Account (02/21/2023 - 2:24 PM) Page I
Account Number
Vendor
Description
GL Date Check No
Report Total:
Amount PO No
1,607.75
AP -Transactions by Account (02/21/2023 - 2:24 PM) Page 2
Accounts Payable
Transactions by Account
User: Julie.Cheney
Printed: 03/01/2023 - 2:49PM
Batch: 00207.02.2023
Account Number
" CITY O F
3tjMSo!nti
Vendor Description GL Date Check No Amount PO No
213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 02/28/2023
Vendor Subtotal for Dept:46301
213-46301-443990 DEMVI LLC Parking Lot Maintenance - Feb 2023 02/28/2023
Vendor Subtotal for Dept:46301
Subtotal for Fund: 213
Report Total:
The preceding list of bills payable totaling $13,378.55 was approved for payment.
Date: 3/8/23 Approved by:
Tracy Hinz - Treasurer
0 0.00
0.00
0 213.86
213.86
213.86
213.86
AP -Transactions by Account (03/01/2023 - 2:49 PM) Page 1
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Memorandum
To: Jim Thares, Economic Development Manager
From: Jim Gromberg, Economic Development Coordinator
Date: March 2, 2023
Re: Project Updates
Thank you for the opportunity to continue to assist the City of Monticello in their continued efforts
to provide economic vitality for the community and the residents. Below are updates on some of
the projects and insights to the trends currently facing the city.
The city currently has several projects in progress for the continued growth the commercial -
industrial tax base. In addition to the tax base growth these projects will allow for the continued
availability of employment opportunities in Monticello.
Currently contained in the Governor's budget is significant funding increases for the marketing of
the state to potential business attraction. Should these funds be allocated, the state could
potentially see a significant demand for new industrial sites. The city currently limited sites
available for new large projects (majority of RFI's from DEED are in excess of 50 acres) so the
EDA should consider the development of new industrial park areas for projects. The budget also
contains funding for a number of DEED programs to continued to assist in the development of the
Minnesota economy. Funding for the infrastructure programs BDPI, TEDI, Redevelopment Grants
etc. will be in any bonding bill that may be passed before the end of the session. The
administration has indicated that these programs will be significantly recapitalized in the bonding
bill.
Project Updates:
Moon Motors Expansion:
• The EDA has terminated the option agreements on the lot in Otter Creek Business Park
(OCBP).
• The company is currently working with their lender to determine the structure of a
potential expansion on the OCBP lot.
• The company and lender re intending to submit an application for potential assistance
from the city in the next few months.
• It should be noted that regardless of the decision on the potential expansion, there would
be no changes to the current operations in Monticello.
Project Singularity: No changes DEED is awaiting a response from the Company.
• German Manufacturing Company that is looking for 50 -acre site.
• RFP was received from the state and was the second round of sites to be reviewed.
• Monticello was not part of the first round of sites submitted by the state in 2021 as the city
did not meet the criteria for the project.
• The criteria have changed to include any sites with a labor shed of 150,000 within 45 -
minute drive.
• Capex is estimated to be $90 million with a workforce of 500 employees.
• The state has been notified that the sites submitted for the project are still being
considered with a decision in early 2023.
Monticello EDA
March 2, 2023
Page 2
Project Wafer: No changes DEED is awaiting a response from the Company.
• Project Wafer is a manufacturing project RFI that was received by the city in October.
• The proposed project site requires 100 acres with the expansion possibility of 20
additional acres.
• Capex would be an estimated $630 million with the creation of 1,500 employees for
phase 1.
• One of the significant requirements for the project was a location within 20 minutes of an
interstate or major highway.
• The city submitted a potential site in the newly identified "concept" eastern industrial park.
Shovel Ready Site Update:
• All the information has been submitted to the state for their review and comments.
• The contract for the review of the of information "certification" has expired and DEED will
be issuing an RFP for those services.
• After the state has determined the contractor and completed the implementation of a
contract, they will be arranging for a site visit which should be in 2023.
• Upon the DEED's completion of the review of information , the city will be submitting the
application fee for the certification.
Outlook:
• The inflation rate has been trending down over the last few quarters with a slight uptick
(5.3% to 5.4%) for last month.
• Federal Reserve has indicated that the rate increases may continue, though at a slower
rate as inflation seems to be slowing.
• Gas prices are moderating and are currently stabilizing at $3.10-$3.25 per gallon.
Traditionally, prices are reduced as refineries switch from making winter products to gas.
• Minnesota's unemployment rate is currently at 2.9% compared to the national rate of
3.4%.
• Wright County's unemployment rate is 3.2% compared to Sherburne County's 3.5%.
• Minnesota's labor participation rate is 68.1% compared to a national average of 62.4%.
• GDP grew at a 2.1 % for 2022 compared to the projected growth rate of 2.7%.
• 30 -year mortgage rate is around 6.875% - 7.00%
• Residential real estate market remains strong; however, the days on the market are
increasing up from 41 days in January 2022 to 60 days in January 2023. In the last 30
days, 41 % of the listings have seen a price adjustment.
Please let me know if you have any questions concerning the above projects or require additional
information on the projects. In addition, let me know if you have additional projects that should be
reviewed and included.
City Council Agenda— 03/08/23
6. Consideration to approve EDA Appointment Recommendations to the City Council for
terms ending on 12-31-2024 and 12-31-2028 (JT)
A. REFERENCE AND BACKGROUND:
Per the EDA's Enabling Resolution and By Laws, members recommended for
appointment to the EDA are to be formally appointed/ratified by the City Council. There
are two vacancies on the EDA due to the very recent resignation of 011ie White (letter is
attached as Exhibit C) as well as the expiration of Council Member Tracy Hinz's term on
12-31-2022. Ms. Hinz ran for City Council, winning a seat in the 2022 general election.
She was then appointed by Mayor Hilgart to serve as a Council representative on the
EDA. It should be noted that Commissioner White indicated that she would serve on the
EDA until a replacement member is appointed.
So, at this time, the EDA will need to recommend two new members to the City Council.
The EDA vacancies were posted on the City website throughout the months of January
and February 2023. Four applications were received. Interviews were held in a Special
Workshop meeting prior to the March 8, 2023, regular EDA meeting. The remainder of
Commissioner White's six-year term is a period of 21 months ending on 12-31-2024.
The non -council seat previously held by Council Member Tracy Hinz is a six-year term
that ends on 12-31-2028 (5 years and 9 months remaining).
Al. STAFF IMPACT: There is a minimal staff impact in considering approving the
recommendation of replacement members on the EDA.
A2. BUDGET IMPACT: There is no budgetary impact from the consideration of
appointing new members to the EDA. The non -City Council EDA members currently
receive a $50.00 per regular meeting stipend. The approved 2023 budget reflected an
expectation of a full slate of board members (5 eligible for stipend payments) for the
entire 2023 calendar year.
B. ALTERNATIVE ACTIONS:
1. Motion to approve recommending the appointment of to the
EDA for a six-year term ending on 12-31-2024 and
the EDA for a six-year term ending on 12-31-2028.
2. Motion to table the recommendation of EDA appointments for further research
and/or discussion.
to
C. STAFF RECOMMENDATION:
Staff defer to the EDA in making the new member appointment recommendations for
City Council approval.
SUPPORTING DATA:
A. EDA Enabling Resolution
B. EDA By Laws
C. Resignation Letter from Commissioner 011ie White
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2013-010
AMENDED AND RESTATED RESOLUTION ENABLING THE CREATION OF THE
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
BE IT RESOLVED by the City Council of the City of Monticello, Minnesota ("City") as
follows:
Section 1. Background and Findings
1.01. The City is authorized by Minnesota Statutes, Sections 469.090 to 469.1081 (the
"EDA Act") to establish an economic development authority to coordinate and administer economic
development and redevelopment plans and programs for the City.
1.02. By Ordinance No. 172, approved April 10, 1989 and codified in the City Code as
Title II, Chapter 3 (the "Enabling Ordinance"), the City established the City of Monticello
Economic Development Authority ("EDA"), for the purpose of coordinating and administering
economic development activities in and for the City.
1.03. By resolutions approved on October 22, 2007 and January 14, 2008, the City
transferred to the EDA the control, authority and operation of all projects administered by the
Housing and Redevelopment Authority in and for the City of Monticello and adopted an Amended
and Restated Enabling Resolution (the "Enabling Resolution"), which superceded the Enabling
Ordinance in all respects.
1.04. The City Council further amended the Enabling Resolution after a duly noticed
public hearing on February 27, 2012.
1.05. The City Council has now determined to revise and clarify certain provisions of
the Enabling Resolution by the adoption of this resolution.
1.06. The City Council has, in accordance with Minnesota Statutes Section 469.093,
provided public notice and conducted a public hearing on the date hereof, at which all persons
wishing to be heard were given an opportunity to express their views, concerning the proposed
modifications to the Enabling Resolution.
1.07. This resolution constitutes an amendment and restatement of the Enabling
Resolution of February 27, 2012, and supercedes such Enabling Resolution in all respects.
Section 2. Enabling Authority.
2.01. The EDA was established pursuant to the EDA Act under the Enabling Ordinance as
adopted April 10, 1989 and codified as Title II, Chapter 3 of the City Code, as amended and restated
by this resolution.
2.02. The EDA shall be composed of 7 commissioners to be appointed by the Mayor and
confirmed by the City Council.
2.03. Two of the commissioners shall be members of the City Council. The terms of office
of the two members of the City Council shall coincide with their terms of office as members of the
City Council. The remaining five (5) commissioners shall be initially appointed for terms of one,
two, three, four, and five years respectively. Thereafter, all non -Council commissioners shall be
appointed for six-year terms.
2.04. A vacancy is created in the membership of the EDA when a City Council member of
the board of commissioners ends Council membership, when any commissioner ends EDA
membership prior to expiration of his or her term of office, on the day following the expiration of a
commissioner's term of office, or when a commissioner is removed by the City Council subject to
the terms of Section 2.07 hereof . A vacancy for this or any other reason must be filled for a new
term or the balance of the unexpired term, as applicable, in the manner in which the original
appointment was made.
2.05. All of the commissioners who are not members of the City Council must be either
residents of the City, business -owners in the City, or property -owners in the City.
2.06. All commissioners shall serve at the pleasure of the City Council, subject to the
terms of Section 2.07 hereof. Vacancies shall be filled by appointment by the Mayor with the
confirmation of the City Council.
2.07. A commissioner may be removed by the City Council for inefficiency, neglect of
duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the
charges must be given to the commissioner at least 10 days before the hearing. The commissioner
must be given an opportunity to be heard in person or by the counsel at the hearing. When written
charges have been submitted against the commissioner, the City Council may temporarily suspend
the commissioner. If the City Council finds that those charges have not been substantiated, the
commissioner shall be immediately reinstated. If a commissioner is removed, a record of the
proceedings together with the charges and findings shall be filed in the office of the City
Administrator.
2.08. The City Council shall make available to the EDA such appropriations as it deems
fit for salaries, fees, and expenses necessary in the conduct of its work. The EDA shall have
authority to expend all budgeted sums so appropriated and recommend the expenditures of other
sums made available for its use from grants, gifts, and other sources for the purposes and activities
authorized by this resolution.
Section 3. Officers and Meetings.
3.01. The EDA shall elect a president, vice president, treasurer, assistant treasurer, and
secretary annually. A commissioner must not serve as president and vice president at the same
time. The other offices may be held by the same commissioner. The other offices of the secretary
and assistant treasurer need not be held by a commissioner.
3.02. The EDA shall adopt rules and procedures not inconsistent with the provisions of
this Enabling Resolution or as provided in Minnesota Statutes, Section 469.096, and as may be
necessary for the proper execution and conduct of its business. The EDA shall adopt bylaws and
rules to govern its procedures and for the transaction of its business and shall keep a record of
attendance at its meetings and/or resolutions, transactions, findings, and determinations showing the
vote of each commissioner on each question requiring a vote, or if absent or abstaining from voting,
indicating such fact. The records of the EDA shall be a public record, except for those items
classified by law as nonpublic data.
3.03. The EDA shall meet at least quarterly. Special meetings may be called by the
president as needed.
3.04. All administrative procedures, including contract for services, purchases of
supplies, and financial transactions and duties shall be outlined in the bylaws of the EDA.
Section 4. Staff.
4.01. The City Administrator, or any other person designated in writing by the City
Administrator and approved by a majority of the EDA commissioners, shall be designated as
Executive Director of the EDA.
4.02. Subject to limits set by the appropriations or other funds made available, the EDA
may employ such staff, technicians, and experts as may be deemed proper, and may incur such
other expenses as may be necessary and proper for the conduct of its affairs.
Section 5. Functions, Powers, and Duties.
5.01. Except as specifically limited by the provisions of Section 6 of this Enabling
Resolution, the EDA shall have the authority granted it pursuant to the EDA Act.
5.02. The EDA shall manage the Greater Monticello Enterprise Fund (the 'Fund") the
purpose of which is to encourage economic development by making loans to private businesses.
The EDA shall make loans to eligible businesses, and such loan(s) shall serve a public purpose
as defined in the Greater Monticello Enterprise Fund Guidelines (Fund Guidelines). The Fund
Guidelines are hereby adopted by reference and included in the bylaws of the EDA. No changes
to the fund Guidelines shall be made without approval of the City Council.
5.03. The EDA may be a limited partner in a partnership whose purpose is consistent
with the EDA's purpose.
5.04. The EDA may issue general obligation bonds and revenue bonds when authorized
by the City Council and pledge as security for the bonds the full faith, credit, and resources of the
City or such revenues as may be generated by projects undertaken by the EDA.
5.05. The EDA may cooperate with or act as agent for the federal or state government
or a state public body, or an agency or instrumentality of a government or other public body to
carry out the powers granted it by the EDA Act or any other related federal, state, or local law in
the area of economic development district improvement.
5.06. The EDA may annually develop and present an economic development strategy
and present it to the City Council for consideration and approval.
5.07. The EDA may join an official, industrial, commercial, or trade association or
other organization concerned with such purposes, hold reception of officials who may contribute
to advancing the City and its economic development, and carry out other appropriate public
relations activities to promote the city and its economic development.
5.08. The EDA may perform such other duties which may be lawfully assigned to it by
the City.
All city employees shall, upon request and within a reasonable time, furnish the EDA or its
employees or agents such available records or information as may be required in its work. The EDA
or its employees or agents may, in the performance of official duties, enter upon lands and make
examinations or surveys in the same manner as other authorized City agents or employees and shall
have such other powers as are required for the performance of official functions in carrying out the
purposes of this resolution.
Section 6. Limitations of Power.
6.01. The following limits apply to the EDA and its operation:
(a) The sale of bonds or other obligations of the EDA must be approved by the
City Council.
(b) The EDA must follow the budget process for City departments in accordance
with City policies, ordinances, and resolutions and the City charter.
(c) Development and redevelopment actions of the EDA must be in conformity
to the City comprehensive plan and official controls implementing the comprehensive plan.
(d) The EDA must submit its plans for development and redevelopment to the
City Council for approval in accordance with City planning procedures and laws.
(e) Except when previously pledged by the EDA, the City Council may, by
resolution, require the EDA to transfer any portion of the reserves generated by activities of
the EDA that the City Council determines are not necessary for the successful operation of
the EDA to the debt service funds of the city to be used solely to reduce tax levies for
bonded indebtedness of the City.
(f) The administrative structure and management practices and policies of the
EDA must be approved by the City Council.
(g) The EDA shall submit all planned activities for influencing the action of any
other governmental agency, subdivision, or body to the City Council for approval.
6.02. The EDA may exercise all the powers under the EDA Act, including, but not
limited to, the following:
(a) all powers under the HRA Act.
(b) all powers of a city under Minnesota Statutes, Section 469.124 to 469.134.
(c) all powers and duties of a redevelopment agency under Minnesota Statutes,
Sections 469.152 to 469.165 for a purpose in the HRA Act or the EDA Act, and all powers
and duties in the HRA Act and the EDA Act for a purpose in Minnesota Statutes, Sections
469.152 to 469.165.
(d) the authority to acquire property, exercise the right of eminent domain; make
contracts for the purpose of redevelopment and economic development; serve as a limited
partner in a partnership whose purpose is consistent with the EDA's purpose; buy supplies
and materials needed to carry out development within the EDA Act; and operate and
maintain public parking facilities.
(e) the authority to issue bonds in accordance with the EDA Act and the HRA
Act.
(f) the authority to levy special benefit taxes in accordance with Section
469.033, subdivision 6 of the HRA Act in order to pay or finance public redevelopment
costs (as defined in the HRA Act), subject to approval by the City Council in accordance
with Section 469.033, subdivision 6.
(g) all powers under Minnesota Statutes, Sections 469.474 to 469.179.
6.03. As provided in the EDA Act, it is the intention of the City Council that nothing in this
resolution nor any activities of the EDA are to be construed to impair the obligations of the City or
HRA under any of their contracts or to affect in any detrimental manner the rights and privileges of
a holder of a bond or other obligation heretofore issued by the City, the EDA or the HRA.
Section 7. Implementation.
7.01. The City Council will from time to time and at the appropriate time adopt such
ordinances and resolutions as are required and permitted by the EDA Act to give full effect to this
resolution.
7.02. The Mayor, the City Administrator, and other appropriate City officials are
authorized and directed to take the actions and execute and deliver the documents necessary to give
full effect to this resolution.
7.03. Nothing in this resolution is intended to prevent the City from modifying this
Enabling Resolution to impose new or different limitations on the EDA as authorized by the EDA
Act.
ADOPTED BYthe City Council of the City of Monticello on this 25th day of March, 2013
CITY OF MONTICELLO
Clint Herbst, Mayor
ATTEST:
Jeft,0XV11, City Administrator
BYLAWS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
ARTICLE I - THE AUTHORITY
Section 1. Name of Authority. The name of the Authority shall be the "City of
Monticello Economic Development Authority."
Section 2. Office of Authority. The office of the Authority shall be at the City Hall
in the City of Monticello, State of Minnesota, but the Authority may hold its meetings at such
other place or places as it may designate by resolution.
Section 3. Seal of Authority. The seal of the Authority shall be in the form of a
circle and shall bear the name of the Authority and the year of its organization.
Section 4. Establishment. The City of Monticello Economic Development Authority
is established pursuant to Minnesota Statutes, Section 469.090 to 469.108 1, as amended.
ARTICLE II - THE COMMISSIONERS
Section 1. Appointment, Terms, Vacancies, Pay, and Removal. Shall be in
accordance with the Amended and Restated Resolution Enabling the Creation of the City of
Monticello Economic Development Authority dated October 22, 2007 and as it may be amended
(the "Enabling Resolution") and Section 2-3-1 of Ordinance Amendment No. 172, Chapter 3,
City of Monticello, Wright County, Minnesota.
ARTICLE III - THE OFFICERS
Section 1. Officers. The Authority shall elect a president, a vice president, a
treasurer, a secretary, and an assistant treasurer at the annual meeting. A commissioner must not
serve as president and vice president at the same time. The other offices may be held by the
same commissioner. The offices of secretary and assistant treasurer need not be held by a
commissioner.
Section 2. President. The President shall preside at all meetings of the Authority.
Except as otherwise authorized by resolution of the Board of Commissioners, the President and
the Executive Director (the Assistant Treasurer, in the Executive Director's absence or
incapacity) shall sign all contracts, deeds, and other instruments made or executed by the
Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant
Treasurer. At each meeting the President shall submit such recommendations and information as
he or she may consider proper concerning the business, affairs, and policies of the Authority.
Section 3. Vice President. The Vice President shall perform the duties of the
President in the absence or incapacity of the President, including signing all contracts, deeds, and
other instruments executed by the Authority; and in the case of the resignation or death of the
3255990 MNI MN 190-130
President, the Vice President shall perform such duties as are imposed on the President until such
time as the Board shall select a new President.
Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board
and shall maintain all records of the Authority. The office of Secretary may be held by the
Executive Director upon approval thereof by the Authority.
Section 5. Treasurer's Duties. The treasurer:
(1) shall receive and is responsible for Authority money;
(2) is responsible for the acts of the assistant treasurer;
(3) shall disburse Authority money by any Authority -approved method,
including without limitation check, wire transfer, or credit card;
(4) shall keep an account of the source of all receipts and the nature, purpose,
and authority of all disbursements;
(5) shall file the Authority's detailed financial statement with its secretary at
least once a year at times set by the Authority; and
(6) shall prepare and submit an annual report describing the Authority's
activities and providing an accurate statement of its financial condition to the City
of Monticello by no later than one month following the annual meeting of the
Authority.
Section 6. Assistant Treasurer. The assistant treasurer has the powers and duties of
the treasurer if the treasurer is absent or incapacitated.
Section 7. Public Money. Authority money is public money.
ARTICLE IV - EXECUTIVE DIRECTOR
The City Administrator, or any other person designated in writing by the City Administrator and
approved by a majority of the EDA commissioners, shall be designated as Executive Director of
the EDA.
Section 1. Duties. The Executive Director shall have general supervision over the
administration of the Authority's business and affairs subject to the direction of the Authority.
The Executive Director in his or her own name and title shall keep the records of the Authority,
shall act as recorder of the meetings of the Authority and record all votes, and shall keep record
of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and
shall perform all duties incident to the office. The Executive Director shall, with the President,
sign all contracts, deeds, and other instruments executed by the Authority, and shall keep in sole
custody the seal of the Authority and shall have power to affix such seal to all contracts and
2
325599v6 MNI MN190-130
instruments authorized to be executed by the Authority.
Any person appointed to fill the office of Executive Director, or any vacancy herein, shall have
such terms as the Authority fixes, but no commissioner of the Authority shall be eligible to serve
as the Executive Director.
ARTICLE V - MEETINGS
Section 1. Regular Meetings. Regular meetings shall be held on the 2"d and 0
Wednesdays of each month.
Section 2. Annual Meeting. The annual meeting of the Authority shall be held in
conjunction with the regular February meeting at the regular meeting place of the Authority. The
August regular meeting shall include final fund balances reviewed at the Annual Meeting.
Section 3. Special Meetings. Special meetings of the Authority may be called by the
President, two members of the Authority, or the Executive Director for the purpose of transacting
any business designated in the call. All commissioners of the Authority shall be notified.
Section 4. Quorum. At any meeting of the Authority, the presence of four
commissioners shall constitute a quorum. If a quorum is not present at any meeting, those
present shall have power to adjourn the meeting from time to time without notice other than
announcement at such meeting until the requisite number of votes shall be present to constitute a
quorum. At any such adjourned meeting at which a quorum is present, any business may be
transacted which might have been transacted at the meeting as originally called. Any resolution,
election, or other formal action of the Authority shall be adopted upon the affirmative vote of a
majority of the Authority membership.
Section 5. Rules of Procedure. Unless otherwise specified in the Enabling
Resolution or in these bylaws, all meetings of the Authority shall be conducted in accordance
with Roberts' Rules of Order revised.
Section 6. Manner of Voting. The voting on all questions coming before the
Authority shall be voice unless the President calls for a roll call vote. The yeas and nays shall be
entered upon the minutes of such meetings.
ARTICLE VI - EMPLOYEES; SERVICES; SUPPLIES
Section 1. Employees. Subject to limits set by the appropriations or other funds
made available, the Authority may employ such staff, technicians, and experts as may be deemed
proper and may incur such other expenses as may be necessary and proper for the conduct of its
affairs.
Section 2. Contract for Services. The Authority may contract for services of
consultants, agents, public accountants, and other persons needed to perform its duties and
exercise its powers.
3
3255990 MNI MN190-130
hire a general counsel for its legal needs. The city attorney or general counsel, as determined by
the Authority, is its chief legal advisor.
Section 4. Supplies. The Authority may purchase the supplies and materials it needs
to carry out its function pursuant to Minnesota Statutes, Sections 469.090 to 469.1081.
Section 5. City Purchasing_ The Authority may use the facilities of its city's
purchasing department in connection with construction work and to purchase equipment,
supplies, or materials.
Section 6. City Facilities, Services. The City may furnish offices, structures and
space, and stenographic, clerical, engineering, or other assistance to the Authority.
Section 7. Delegation Power. The Authority may delegate to one or more of its
agents or employees powers or duties as it may deem proper.
ARTICLE VII - POWERS
Section 1. Functions, Powers, and Duties. Shall be in accordance with the
Enabling Resolution.
Section 2. Limitations of Power. Shall be in accordance with the Enabling
Resolution.
ARTICLE VIII - AMENDMENTS
Section 1. Amendment to Bylaws. The bylaws of the Authority shall be amended by
a majority vote of the Authority membership at a regular or special meeting. The amendments
must be in written form.
Section 2. Conflicts. In any instance where these bylaws are in conflict with the
Enabling Resolution, the Enabling Resolution shall control.
Section 3. Effective Date. These bylaws are effective upon their adoption by the
Authority.
Dated: August 14, 2019.
Signed:
Preside
(Seal)
xecutive Director
4
325599v9MN190-130
FEBRUARY 9, 2023
DEAR MAYOR HILGART AND COUNCIL MEMBERS:
IT'S BEEN AN HONOR TO HAVE SERVED AS A COMMISSIONER OF THE MONTICELLO EDA THE
PAST FEW YEARS. COUNCIL, CITY STAFF, EDA COMMISSIONERS, AND OTHERS HAVE GUIDED
THE CITY TOWARDS A BETTER FUTURE.
AT THIS TIME, 1 SUBMIT MY RESIGNATION AS A COMMISSIONER OF THE MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY. IT'S BEEN A PLEASURE.
WITH REGARDS,
OLLIE WHITE
EDA Agenda: 03/08/23
7. Economic Development Director's Report (JT)
A. Article about Manufacturing in Mpls-St. Paul Business Journal - See Exhibit A
B. MN -DEED funding Programs Update — See Exhibit B
C. EDAM 2022 Day at the Capitol Event — Rescheduled to March 15, 2023 — See Exhibit C
D. Prospect List Update — See Exhibit D
E. City Council Update Power Point Presentation (02-27-23) — See Exhibit E
•
IAt�s
S
The CHIPS Act, the Inflation Reduction Act and the Infrastructure Act will all pour billions
of dollars into domestic manufacturing. But there's a huge question lurking, and the
stakes are high.
GLOWIMAGES
^ o�
MANXa c+"vr11 O
IN THIS ARTICLE
Commercial Real Estate
Industry
Government & Regulations
Industry
Playbook
Topic
National
Topic
By Andy Medici
Senior Reporter, The Playbook,
Feb 28, 2023
O Listen to this article 12 min
Ford Motor Co. is planning a $700 million investment in a
manufacturing plant in Louisville, Kentucky — and another
$11.4 billion investment in two separate nearby battery
plants.
In October, Micron announced it would invest up to $loo
billion in upstate New York to build the largest
semiconductor fabrication facility in the United States.
President Joe Biden touted $30o billion
in announced investments in American
manufacturing facilities over the next few years in his
annual State of the Union Address to Congress — and
promised a bright future for American manufacturing in
general.
But even as politicians argue about whether American
manufacturing is poised for a comeback — or if it ever really
left at all — hundreds of billions of dollars in federal
incentives, state governments and local investments are
poised to potentially transform the manufacturing
landscape, the thousands of business owners that a part of
that supply chain and the tens of millions of workers it
represents.
The stakes are high. An analysis by the McKinsey Global
Institute says that restoring manufacturing growth could
boost America's GDP by 15% over the current decade,
potentially creating 1.5 million new jobs.
Many are optimistic, but some significant obstacles remain.
"Anyone who says manufacturing is dead in this country
doesn't know what they're talk about;" said Farzad Dibachi,
a former Oracle executive -turned serial founder and
current CEO of industrial maketplace and services
company Inxeption. "There is not a single country that
would not love to buy American if they could:'
He said while lower -end and consumer manufacturing is
now dominated by countries such as China, the increasing
technological content of manufacturers' goods gives
American manufacturing an edge. He stressed that
American manufacturers are best able to take advantage of
a trend in which products increasingly are rich in features —
such as GPS, electronics and more.
"There are not many countries on this planet that can
innovate around these features;' Dibachi said, adding that
the United States cannot compete on cost but on overall
technological quality. "When the technology content goes
up, there is no question that we win that fight all the time,
every time:'
But he stressed that politicians and government officials
should not focus on the number of jobs created as
automation and technology makes sheer numbers less
important — and instead focus on creating favorable
conditions for the next wave of manufacturing innovation.
"The conversation should be around embracing the next
movement as opposed to lamenting the number of jobs. If
we did that, this would be a much more positive
conversation, and it results in better results for the country
as a whole," Diabchi said.
Some experts are not so sure.
"I don't think we are;" said Steven Blue, CEO of
manufacturer Miller Ingenuity, and author of "American
Manufacturing 2.0: What went wrong and how to make it
right"
He said American manufacturing cannot compete on price
with items produced overseas, including China, even with
significant tariffs or subsidies. Any manufacturing
comeback would have to be predicated on helping
manufacturers by reducing trade barriers.
"The biggest obstacle to manufacturing in a global business
world is trade barriers;" Blue said. "Now is not a trendy
time politically to remove that barrier:'
Instead, manufacturing companies should work on
reducing their debt and strengthening their balance sheet
by cutting costs and making sure their workforce is as
productive as possible, Blue said.
"What are you going to do when the net pandemic arrives?
I don't know if it's gonna be an economic pandemic. I do
know a big shock is coming next because they always
come. Don't be surprised when it happens;" Blue said.
Are American manufacturing jobs coming back?
Biden focused a lot on the number and quality of jobs in his
State of the Union Address. He stressed the country added
800,000 "good -paying manufacturing jobs:' He pointed to
Intel's intention to build a semiconductor factory outside of
Columbus, Ohio, that would create 3,000 permanent
factory jobs.
"Jobs paying an average of $130,000 a year, and many do
not require a college degree. And jobs — because we (43
worked together, these jobs where people don't have to
leave home to search for opportunity," Biden said.
Biden is not the only politician that has stressed the
number of manufacturing jobs. One of the biggest political
drivers around American manufacturing is the promise to
bring back jobs lost over the decades. In January 2023, the
manufacturing industry reported roughly 12.99 million
jobs, the highest it has been since November 2008.
It's also slightly above the pre -pandemic manufacturing
workforce, which took a big hit from Covid-19 and plunged
to about 11.4 million workers in April 2020.
Of course, while absolute jobs are growing, the share of
manufacturing jobs as a percentage of the overall economy
has shrunk from a peak of roughly 39% in the 1940s — the
height of World War II — to roughly roughly 8.4% in
January 2023.
Overall, manufacturing's share of nominal gross domestic
product has fallen from around 27% in the early 1950s to
about 11%.
But, as a study by the St. Louis Branch of the Federal
Reserve shows, manufacturing as a share of real GDP,
which removes pricing effects from the data, shows
changes in GDP over the decades come from changes in
pricing — and U.S. manufacturing output has remained
largely the same over the decades, hovering at about 12% or
"Since 1947, the price level for the overall economy has
grown 3.2% per year on average, while prices for
manufacturing have grown just 2.2% per year;"the St. Louis
Fed said in a 2017 report.
And even if American manufacturing were to bounce back,
experts say a combination of automation and cost will
likely mean that the number of jobs will be limited.
Shanton Wilcox, U.S. manufacturing lead at PA Consulting,
said the new manufacturing push into semiconductors,
electric vehicles and batteries isn't so much about adding
workers as it is transforming the workforce to compete in
these highly automated industries.
"It's not a net new increase but a new shift in the skills and
in the wages relative to those skills," Wilcox said. "It's a
transformation of the manufacturing sector but not a
comeback form a volume point of view:'
The assembly line for an electric vehicle is far different
from a traditional vehicle, he added, and the addition of
robots and automation means less need for the same
workers as older vehicles.
But the manufacturing industry — like most American
industries right now — still suffers from a shortage of
workers, he added.
The National Association of Manufacturers says job
openings in the United States average about 81000 per
month over the last year — which pushed the group to
launch "Creators Connect;' a digital career services
platform to showcase opportunities to students, parents
and career influencers.
The labor shortage has been ongoing since the Covid-19
pandemic. In fact, despite the economic headwinds, job
openings actually increased from 10.44 million at the end
of November to about 11 million at the end of December,
according to the new Job Openings and Labor Turnover
Report from the Bureau of Labor Statistics. That matches
levels seen in July 2022, but is still down from the 11
It's also significantly higher than the average 7 million to 8
million range typically seen before the pandemic, and some
experts say employers should get used to it and the
challenges the dynamic is causing — especially with a
smaller Gen Z entering the workforce and the large baby
boomer generation aging out.
The metros it
where Gen Z
could be a
particularly
tough
challenge
30 METROS WHERE GEN Z
COULD BE A BIG CHALLENGE
VIEW SL.IDESHOW
Q 31 phn{n
Here are the 30 metros with the
largest gaps between those ages
10-24 and those ages 25-39,
according to data from the 2020
Census.
The CHIPS Act, Infrastructure Act and the Inflation
Reduction Act — and the future of American
manufacturing
Experts agree the future of American manufacturing is
closely tied to national security and hundreds of billions of
dollars of government investment.
The CHIPS Act, or "Creating Helpful Incentives to Produce
Semiconductors and Science Act of 2022;' authorized $280
billion in tax credits, research and development, loans and
other related programs to bolster the creation of chips
stateside. The $1.2 trillion Infrastructure Act contained tax
credits for electric vehicles, charging infrastructure,
research and development, and money to bolster high-
speed internet, roads and more.
The Inflation Reduction Act created direct loan programs
for re-equipping, expanding or building a manufacturing
facility in the U.S. to help build "low -emission" vehicles,
among other items.
Dibachi said the subsidies and tax breaks can often help
push new entrants to try their hand in a nascent industry, 07
or boost purchases of a new product a certain — but
ultimately the new industries have to sink or swim on their
own.
"I think subsidies are great;' Dibachi said. "They make
politicians feel good about themselves. But ultimately, if
the Tesla car was not interesting to people, they wouldn't
have bought it. On the fringes, they help:'
But Wilcox said the subsidies are great for temporarily
lowering the cost of producing goods made in America and
boosting manufacturers' decisions to produce those
products — such as the next generation of computer chips.
The national security implications of homemade
production of computer chips also made ramping of
domestic production a more bipartisan issue.
"The political competition of us versus China and the
disruption in supply of those chips — you add that political
national security tag — and you have more bipartisan
support for [this] legislation," Wilcox said, adding there are
even calls to limit other products produced by China. "Hey,
we have to build that capability here."
The Covid-19 pandemic also played a role in showcasing
how important domestic manufacturing and the global
supply chain was — nobody seemed to enjoy hunting for
toilet paper or waiting months for a car.
"As we moved through 2020 and 2021 and the pandemic
period, we experienced a lot of pandemic -induced global
supply chain stress," said Moody's Analytics' Senior
Economist Ermengarde Jabir. "This was both for
intermediate goods in the manufacturing process and also
final goods, both of which were out of stock for prolonged
periods of time. That played a large role in having the
highest inflation we had seen in the U.S. in 40 years:'
She said manufacturing has been a "superstar" of the
commercial real estate industry over the last two years as
office space has slumped and as demand for warehouses
and specialized infrastructure continues into 2023.
"The industrial sector is continuing to thrive. It's been the
absolute superstar of CRE over the past few years now. And
developers and landlords are definitely willing to build out
specialized infrastructure and warehouses to meet tenant
manufacturing needs as they develop and improve
domestic manufacturing;' Jabir said.
But efforts to transform manufacturing processes or pivot
to new technologies won't be a quick process. New
factories take years to fire up and workers need to be
trained, Wilcox said. Thousands of smaller manufacturing
suppliers need to find a way to make the jump from old
products and services, such as the ones needed for
traditional gas vehicles, to the ones needed for electric
vehicles or other products, he said.
And, as demand for new products increase, there will be
secondary impacts, Wilcox said. For example, increased
demand for electric vehicles will require stronger electric
grids.
"It will be a retooling and re -skilling of existing
manufacturing resources. All of that is going to take time.
Five, 10, 15 years those are the types of intervals we need to
be looking at;" Wilcox said.
And manufacturing is moving in the right direction, Jabir
said.
"Strong manufacturing definitely matters for a heathy
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ECONOMIC DEVELOPMENT
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DEED Announces Neela Mollgaard as New Executive
Director of Small Business Development
March 1, 2023
St. Paul — Neela Mollgaard, the current director of Launch Minnesota at the
Department of Employment and Economic Development (DEED), has been
appointed the agency's new Executive Director of Small Business
Development, DEED announced today.
In her new position, Mollgaard will lead DEED initiatives to serve
Minnesota's small business sector, including entrepreneurs, startups and
small businesses. This new position brings together four offices of DEED:
the Small Business Development Centers, Office of Small Business
Partnerships, Small Business Assistance Office and Launch Minnesota. She
will be charged with connecting Minnesota's small businesses and entrepreneurs and the organizations across
the state that support them to DEED resources, including research and information, grantmaking to partner
organizations, technical assistance and leadership development.
"Minnesota's small businesses have a strong ally in Neela," said DEED Commissioner Steve Grove. "As the
director of Launch Minnesota, she has been a fierce advocate and reliable resource for our state's start-up
founders. She will bring that same passion and expertise to Minnesota's entire small business ecosystem,
helping our state's economy continue to grow and thrive."
"Small businesses are the bedrock of Minnesota's economy. They provide good -paying jobs to millions of
Minnesotans and help make Minnesota's business culture unique," said Kevin McKinnon, Deputy
Commissioner of Economic Development. "With Neela's help, thousands of entrepreneurs will be able to
realize their dreams of starting a business and making an impact in Minnesota."
At Launch Minnesota, Mollgaard raised the visibility and importance of entrepreneurship for individuals and
communities statewide, building the infrastructure and connectivity to better support businesses across the
state. Under her leadership, Launch Minnesota increased access to capital, awarding over $6.5 million to
businesses that went on to raise almost $80 million.
Mollgaard has experience working in corporate, government and the nonprofit sector. Before joining DEED,
Mollgaard founded and led the nonprofit Red Wing Ignite, helping small businesses in the Greater Minnesota
community succeed. She also believes strongly in giving back to her community and has served in numerous
leadership roles including the Governor's Task Force on Broadband and chair and a founder of Women Cents.
Small businesses are a core part of Minnesota's economy, employing three out of every four workers in the
state. Entrepreneurs continue to see new opportunity across Minnesota: small business starts have increased
by nearly one-third in Minnesota since 2019, and businesses are launching faster than they did before the
COVID-19 pandemic. In 2022, new business starts totaled over 61,000, nearly 15% above 2020 and nearly 32%
above 2019.
Last year, DEED announced nearly $100 million to support small businesses through the State Small Business
Credit Initiative (SSBCI). The initiative includes six new programs to provide additional financing support to
Minnesota small businesses.
DEED also launched an online small business hub to serve as a one -stop -shop for all of DEED's small business
resources. The hub a comprehensive list of DEED programs to support small businesses. It can be found
joinusmn.com/smalibusiness(https.Lljoinusmn.com/smallbusiness)..
One Minnesota Budget Provisions to Help Small Businesses
Mollgaard's appointment comes as DEED advocates for several high -impact small business programs in
Governor Tim Walz and Lieutenant Governor Peggy Flanagan's One Minnesota budget. These include:
• Revitalizing Minnesota Main Streets: The Main Street Economic Revitalization Fund is one of the ways
Governor Walz, Lieutenant Governor Flanagan and DEED are reinvesting in Minnesota communities that
were hit hard by the events of 2020. By partnering with local economic development nonprofits, DEED
has provided $80 million since 2021 to catalyze investments in business corridors — neighborhoods and
main streets — where they can make a big difference for individual businesses and communities as a
whole. The One Minnesota Budget includes nearly $85 million in new funding to multiply the positive
impacts of this program across the state.
• New Funding for Small Business Programs: The Governor and Lieutenant Governor recommend new
funding for the Small Business Navigation Program, Small Business Development Centers, and the Small
Business Partnerships Program. These programs provide the funding, coaching, and consulting small
businesses deeply need — and the programs target communities facing systemic barriers to growth. All of
these programs are proven ways to help Minnesota's small businesses thrive.
• Expanding Opportunity Fund for Small Businesses: Small business owners and entrepreneurs are often
unable to obtain the loan capital they need to start or expand their businesses — a critical miss for job
creation as the state emerges from the pandemic. Governor Walz and Lieutenant Governor Flanagan
recommend $40 million for an Expanding Opportunity Fund, which will vastly accelerate capital flowing
into small businesses through partnerships with nonprofit lenders. The fund would provide additional
capital for nonprofit lenders so the state can maximize its access to federal funds and benefit over 1,000
businesses with access to capital.
• Innovation Investing via the Angel Tax Credit: The Angel Tax Credit is Minnesota's primary economic
development tool for assisting and attracting early-stage businesses. It has already resulted in over $500
million in private investment for Minnesota startups focused on new technologies or services in specified
fields. Expanding the tax credit will incentivize investment in companies with founders who are women,
veterans, people of color, Indigenous people and those headquartered in Greater Minnesota.
• Empowering Entrepreneurs at Launch Minnesota: DEED's Launch Minnesota supports innovation and
entrepreneurship by increasing access to capital, creating a connected and collaborative culture, and
expanding entrepreneurial talent and expertise. Investing in Launch Minnesota will connect more start-
ups to funding, expand entrepreneurial expertise, jumpstart commercialization and cultivate
collaboration with business leaders.
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NEW DATE'
Day at the Capitol
Wednesday March 15
8:30 am -3:00 pm
Minnesota State Capitol, 3rd Floor
Cass Gilbert Library, Room 317A
75 Rev Dr Martin Luther King Jr Boulevard
St. Paul 55155
We are excited bring back the in-person Day at the
Capitol event in 2023! Join us for education,
networking, and a chance to meet with legislators.
No prior legislative or political experience necessary - this is a great way
to learn more about the advocacy process and get more comfortable at the
Capitol! We encourage you to invite your board chair, supervisor, colleagues,
or elected officials to join you!
AGENDA
(Specifics subject to change)
• 8:30 - 9:00 am * Parking, getting settled in Cass Gilbert Library (3rd Floor of
Capitol, Room 317A)
• 9:00 -10:00 am * Hear from Economic Development Chairs (invited)
• 10:00 -11:00 am * Understanding EDAM's legislative priorities & legislative
meeting practice (no prior legislative or political experience needed)
• 11:00 -11:30 am * Networking with EDAM members & legislative meetings
• 11:30 am -12:00 pm * Lunch at Department of Transportation Cafeteria (light lunch
provided)
• 12:00 - 3:00 pm * Legislative meetings*
*EDAM lobbyists will help schedule legislative meetings for participants.
COST
There is no cost to attend, but participants must pre -register.
PARKING
Capitol Complex Parking Map - We recommend parking in lot AA.
This address for the church directly across from lot AA can be plugged into GPS for
directions: 441 Rice Street, St. Paul, MN 55103
STAY CONNECTED
no
-]
www.edam.org
Date of
Company Name
Business Category
Project Description
Contact
IL
Retained lobs New lobs
Total Investment
5/22/2018
Karlsburger Foods
Food Products Mfg.
Facilty Expansion
11/29/2018
Project Blitzen
Precision Machining
Exist Bldg or New Const.
3/28/2019
Project Nutt
Co -Working Space
Existing Building
5/9/2019
Project FSJP
Light Mfg -Res. Lab
New Construction
8/16/2019
Project Jaguar
Office
New Construction
1/20/2020
Project Panda v3
Service -Child Care
New Construction
12/23/20- 6-
Project TDBBST
Industrial
New Construction
30-22
$1,400,000
Active Search
22,000 sq. ft.
2/16/2021
Project Cold
Industrial -Warehouse -Di
New Construction
10,500 sq. ft.
0
stri
$4,100,000
3/19/2021
Project Orion
Warehouse-Distributi
on
New Construction
2/28/2022
Project Emma II
Light Ind -Assembly
New Construction
6/16/2021
Project UBAA
Child Care Services
New Construction or Exist
6/30/2021
Project Ecosphere
Industrial Tech Mfg.
New Construction
03/03/2023
Project BA710
Lt Assem-Distribute
New Construction 6,500 to 7,000 sq. ft 0
10 $650,000
Building -Facility
Retained lobs New lobs
Total Investment
Project Status
New Construction 42,000 sq. ft.
40 $3,600,000
Active Search
2/7/2022
Project Shepherd
III
20,000 sq. ft. +/-
42
10 to
$4,500,000
On Hold
Project Cougar
Precision Machining -Mfg.
20
38 $4,700,000
Active Search
12,000 sq. ft.
10
$1,200,000
Concept Stage
?
?
?
?
Concept stage
20,000 sq. ft.
0
20+/-
$1,400,000
Active Search
22,000 sq. ft.
22
4
$2,700,000
Active Search
10,500 sq. ft.
0
21
$4,100,000
Active Search
10,000 to 15,000 sq.
0
9
$1,850,000
Concept Stage
ft.
80,000 sq. ft.
0
21
$12,000,000
Concept Stage
832,500 sq. ft.
0
500
$125,000,000
Active Search
20,OOOsq. ff.
0
4
$1,350,000
Active Search
5,000 sq. ft.
0
14 to 19
$2,000,000
Act Search
1,000,000 sq. ft.
0
1122
$85,000,000
Act Search
7/29/2021
Project BA710
Lt Assem-Distribute
New Construction 6,500 to 7,000 sq. ft 0
10 $650,000
Active Search
10/28/2021
Project Stallion
Technology Servicer
New Construction 42,000 sq. ft.
40 $3,600,000
Active Search
2/7/2022
Project Shepherd
III
Lt Assembly Distribution
New Construction 75,000 sq. ft.
75 $10,500,000
Active Search
4/28/2022
Project Cougar
Precision Machining -Mfg.
New Construction 35,000 to 45,000 sq. ft.
38 $4,700,000
Active Search
8/11/2022
Project Sing
Precision Machining
New Construction
400,000 sq. ft.
0 500
$90,000,000
Active Search
10/28/2022
Project IAG
Mfg.
New Construction
300,000 sq. ft.?
0 50?
$70 to $80,000,000
Active Search
11/9/2022
Project Tea
Mfg
New Construction
25,000 sq. ft.
55 20
$5,800,000
Active Search
12/13/2022
Project Love
Mfg
New Construction
250,000
130
$24,000,000
Active Search
Contacts: M =03 YTD = 5
ECONOMIC DEVELOPMENT UPDATE
FEBRUARY 27, 2023
,r
.pf
A YEAWOF PROJECTS
0
• Block 52
• Headwaters
07th street
• Wiha Tools
• Washburn
• Suburban
ig
2022 EDA WORK PLAN FOCUS
(FROM MONTICELLO 2040 VISION + PLAN)
Downtown Redevelopment
Industrial/Commercial
Development
Housing Development
Labor Force Development
MON
ELLO
Monticello
rJ
�MONTICELLO EDA ,,
2022 GUIDING
FRAMEWORK
• Match projects with tools &programs
• Keep goal line in mind
• Policy, workplan, and scorecard
data guidance
• "T's" & "Eyes"
• Collaboration: internal and
external partners
n
BLOCK 52 REDEVELOPMENT
Jh
M_
• Mixed use commercial -residential
• 87 market rate apartment units
• 301000 sq. ft. commercial space
• Project cost: $26.5 million
•TIF and MN -DEED Redevelopment Grant
• $225,000 annual new taxes + 45 FTE jobs
• Senior (55+) housing
development
102 -unit apartment building
LF
• 41 affordable units (income
threshold 60 % or < ami)
Project cost: $22.5 million
• Affordable Housing TIF 1-42
• 60 Twin homes (30 pad
'
_....�. - sites)
• 24 affordable units (income
threshold 60 % or < ami)
• Project cost: 20.5 million
HEAD TERS• Affordable Housing TIF 1-43
DEVELOPMENT WEST I ig
WIHA TOOLS WAREHOUSE FACILITY
• Two phase project— Phase 1: 75,000 sq. ft. -12 -acre site
• Project development cost $13,000,000 +/-
• 41 new fte jobs; current fte employee 68
•Job Creation Fund (JCF) Grant (MN -DEED) $660,000
• MN Investment Fund (MIF) Grant (MN -DEED) $220,000
• Economic Development TIF District 1-46
• Phase 1 Annual Tax Increase: $112,000
• Phase 2: 80,000 sq. ft. in 2028 + 25 more new fte jobs
OTHER PROJECTS
Industrial/Commercial Development
11-11151f,11
• Project Suburban —Site
Sale (OCBP) 21,400 sq. ft.
• Project Stallion Expansion
(43,000 sq. ft. —Prelim
funding steps including
initial TIF Steps
• Project Singularity Site
Search Packet
• Project Wafer Site Search
Packet
• Project CET (Community
Energy Transition) —
Grant -Deliverables
Studies-Rpts. ig
2022 ECONOMIC IMPACT SUMMARY
• Total Project Costs = $88,602,000
• Private Capital Leveraged = $78,003,538
• Total Awarded State Funding Assistance = $1,611,500
• Projected TIF Assistance (5 TIF Districts) _ $8,753,962
• Project Based EDA Grant Awards = $447,400
• New FTE job creation = 137
• Annual Property Tax Increase = $690,000
ECONOMIC DEVELOPMENT TOOL KIT
• TIF (TAX INCREMENT FINANCING)
• LOAN PROGRAMS (2); GMEF and SCDP
• FACADE IMPROVEMENT LOAN PROGRAM
• COLLABORATIVE PARTNERS (WC, IF)
• STATE ASSIST PROGRAMS; MIF, JCF, BDPI,,
• TAX ABATEMENT
• FEDERAL ASSIST PROGRAMS; EDA, RD
TED
v
ECONOMIC
DEVELOPMENT
OVERVIEW
TIF Districts Established
Site -Development Assistance
Land Acquisitions
Land Sales
GMEF Loans (Amended)
SCDP Loans
State Grants Received
* Time frame 12-01-21 to 12-31-22 (13 months)
FOLLOW UP PROJECT ADMINISTRATION
(Ongoing through Project Closeout)
• 3 GMEF Loans (loans are current)
• 1 SCDP Equipment Loan (loan is current)
• 8 TIF District Compliance Reports
• 6 Business Subsidy Compliance Reports
• CET Grant Admin Activities
• Admin - MN -DEED Redevelopment Grant
• 2 MIF Grants
ig
IEDC ACTION PLAN
.. .
7.
• Business retention
and expansion
• Workforce training
• Marketing plan
review and
implementation
• Manufacturing
recognition event
ig
King eanaian, Ph.d.
_ vrafn,or of E --in a oras of the
Schaal of Public Affairs at SCSU
IEDC 2
-.mm
• Business retention and/or
expansion visits (2)
• Review and comment on
the Integrated Marketing &
Communications Plan
(IMCP)
• Review and comment on
the Comprehensive
Economic Development
Strategy (CEDS)
• 2022 Manufacturer's
Recognition Breakfast Event
*ACCOMPLISHMENTS I ig
fP1APZM1#YAA1P&1
EDA Meetings
IEDC Meetings
20 Regular Meetings
13 Special Meetings
1 Joint Meeting
11 Regular Meeting
JAI
CITY OF
Monticello
Monticello EDA Meeting Decer.I*r 1�d� 2C22
QUESTIONS?
Jim Thares,, Economic Development Manager
763-271-3254 1 jim.thares@ci.Monticello.mn.us