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EDA Agenda - 04/12/2023AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, April 12, 2023 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger 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. Swearing in Rick Barger as new EDA Commissioner 4. Consideration of Additional Agenda Items 5. Consent Agenda a. Consideration of Approving Workshop Meeting Minutes — March 1, 2023 b. Consideration of Approving Special Meeting Minutes— March 8, 2023 c. Consideration of Approving Regular Meeting Minutes— March 8, 2023 d. Consideration of Approving Payment of Bills Regular Agenda 6. Consideration of adopting Resolution No. 2023-04 authorizing an Architectural Services Contract with Rhet Architecture, Fargo, ND, in the amount of $10,000 for building renderings in connection with Fagade Improvement Program proposals for Block 52 properties 149 and 155 West Broadway 7. Economic Development Director's Report 8. Adjourn MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) WORKSHOP Wednesday, March 1, 2023 — 4:30 p.m. Monticello Community Center Members Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, and Councilmembers Lloyd Hilgart and Tracy Hinz Staff Present: Executive Director Jim Thares, Angela Schumann 1. Call to Order President Steve Johnson called the workshop meeting of the Monticello EDA to order at 4:30 p.m. 2. Roll Call Mr. Johnson called the roll. 3. Facade Improvement Forgivable Loan Application Submittals and relationship to Block 52 Redevelopment Goals Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. Two existing buildings (Lucille Murray's Studio of Dance and Sleep Concepts) on the south side of Block 52 along West Broadway are prepared to move forward with facade improvement applications this year. The applicants have been working with the Block 52 development team to explore options related to the building improvements. Mr. Thares noted, for efficiency purposes, these applications could be combined into one project. The EDA currently has $200,000 dollars of available funds, following the recently completed project in Block 35, the Agosto Building. Jon & Lucille Murray, owners of 155 West Broadway St, Monticello, MN 55362, addressed the EDA regarding their letter of intent for the Downtown Facade Improvement Forgivable Loan Program. As lifelong residents of Monticello, Mr. Murray noted they are excited to work with the EDA to bring the project to fruition. He also mentioned the difficulty of collecting bids for specific work on the building. They hve continued to work with contractors, however, most have said they are not capable of completing the work requested. Community Development Director Angela Schumann mentioned that when the original project area was established in Block 35 on the south side of West Broadway Street, the EDA worked with a consultant to complete historical architectural renderings for each eligible building. At this time, there are no historical renderings completed for Block 52. Though the program has established guidelines and eligibility requirements, the EDA has the latitude to allow for some funding to be used for the completion of architectural renderings, as well as allowing improvements to include the rear walls of both buildings. Essentially, the two -building project would encompass three sides of each building (the fourth side is a common wall connecting the two buildings and is not visible as such). Mayor Lloyd Hilgart said that it would be beneficial to reach out to the group that completed the previous renderings, or alternatively, the architect of the Block 52 Redevelopment Project, to see if either of them would be able to do renderings for the two subject buildings. Ms. Schumann noted that staff has gathered historical pictures of the Block as a reference for this project. The previous consultant may have the ability to review and see which parts of the buildings in the pictures should be highlighted during the renovations. Mr. Johnson mentioned the idea of blending both the historical drawings and the new building's (mixed use redevelopment building) design into the proposed renderings for the existing buildings. This may help alleviate the concern that reflecting the historical pictures into the design entirely would result in buildings not blending into the Block. Mr. Johnson also mentioned that the case could be to have the two buildings be combined into one project that can utilize the $200,000 currently available through the program. Mr. Thares asked the EDA if the 5% applicant match would still be necessary as part of this combined application along with any additional owner equity contribution necessary in the event the total cost of work exceeds $200,000. Mayor Hilgart noted the 5% match should still apply for the project, but it would be up to the applicants to understand if they would want to pay the remainder of the costs if it does exceed $200,000. Ms. Schumann reiterated that the EDA's program includes a guideline that requires two contractor quotes for work at the time of application submittal. The EDA does have the ability to waive that requirement upon request by the applicant. It is still the intention of the program to maintain each building's uniqueness within the downtown, and not to make improvements that cause all the buildings to look the same at the end of the process. Mayor Hilgart noted that he believes there are a lot of benefits to getting the Block 52 construction group and their architect involved in this project to help streamline the goals intended for this program. The EDA was in consensus to pay for the cost of architectural renderings for 155 W. Broadway Street and 149 W. Broadway Street, due to the EDA providing architectural renderings to the properties included in the original eligibility area. The renderings would include all three sides of both subject buildings. Staff are expected to reach out to the Block 52 Redevelopment architect to get a professional services proposal for renderings of the two buildings. In addition, the EDA was also in consensus as to waiving the two -quote requirement in favor of Buchholz Construction providing a construction quote for both buildings, and capping the EDA contribution for both buildings at $200,000 in total. Any costs beyond the $200,000 will need to be covered by the applicants -building owners. 4. Adjournment Tracy Hinz Moved to adjourn the workshop meeting of the Monticello EDA. 011ie Koropchak-White Seconded the motion. Motion carried unanimously, 6-0. The meeting was adjourned at 5:15 p.m. MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING Wednesday, March 8, 2023 —4:15 p.m. Monticello Community Center Members Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, and Councilmembers Lloyd Hilgart and Tracy Hinz Staff Present: Executive Director Jim Thares, Hayden Stensgard 1. Call to Order President Steve Johnson called the special meeting of the Monticello EDA to order at U= 2. Roll Call Mr. Johnson called the roll. Councilmember Tracy Hinz arrived at 4:22 p.m., shortly after roll call. 3. Interviews a. Rick Barger b. Joe Kounkel c. Dean Parker d. Veronica Ye The EDA interviewed 3 candidates for an open seat on the Monticello EDA. Dean Parker withdrew his application prior to the meeting being held. In order, the EDA interviewed Rick Barger, Joe Kounkel, and Veronica Ye. The open position was previously held by Tracy Hinz, prior to her addition to the City Council. Councilmember Hinz was appointed to one of the Council positions on the EDA in January 2023, leaving her original at -large position open. The position to be filled is for a 6 -year term ending on December 31, 2028. 4. Discussion and decision for appointment The EDA discussed each candidate following the interviews. At the end of the discussion, the EDA was in consensus of the candidate they wished to recommend to the City Council for approval. That motion was carried out at the March 8, 2023, regular meeting. 5. Adjournment TRACY HINZ MOVED TO ADJOURN THE SPECIAL MEETING. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. MEETING ADJOURNED AT 6:03 P.M. MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 8, 2023 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, and Councilmember Tracy Hinz 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 6:07 p.m. 2. Roll Call 6:00 D.m. Mr. Johnson called the roll. 3. Consideration of Additional Agenda Items None 4. Consent Agenda a. Consideration of Approving Regular Meeting Minutes — February 08, 2023 b. Consideration of Approving Payment of Bills Prior to a motion being made, Executive Director Jim Thares explained a discrepancy in the "Payment of Bills" portion of the consent agenda related to utility bills for land previously owned by the EDA. Staff planned to meet with finance to discuss steps necessary to resolve the discrepancy. Hali Sittig moved to approve the March 8, 2023, Consent Agenda. 011ie Koropchak-White seconded the motion. Motion carried unanimously, 5-0. Regular Agenda 5. Consideration of WSB Economic Development Services Update Report Mr. Thares provided an overview of the agenda item to the EDA and the public. Jim Gromberg, of WSB & Associates, submitted a summary report to EDA regarding assistance activities. The summary touched on projects that Monticello is currently involved in, as well as an economic outlook for the months ahead. This summary report is included in the EDA agenda on the City's website. 6. Consideration of Recommendine new EDA Board Members for Citv Council ADDroval Mr. Johnson provided an update regarding the anticipated resignation of 011ie Koropchak-White from the EDA, and that it is her intention to remain on the EDA for the foreseeable future. This left one position still to be filled. JON MORPHEW MOVED TO RECOMMEND THE APPOINTMENT OF RICK BARGER TO THE MONTICELLO EDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. The EDA's recommendation was forwarded to the City Council for final approval. 7. Economic Development Director's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. Economic Development Association of Minnesota's (EDAM) Day at the Capitol was postponed in February due to the weather, and has since been rescheduled to March 15, 2023. He encouraged members of the EDA to reach out if they are interested in attending. Mr. Thares walked through the Monticello Economic Development Update power point presentation that was previously presented to the City Council. 8. 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 6:42 p.m. EDA Agenda: 4/12/23 5d. 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 March 2023. 2. Motion to approve payment of bills through March 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: 03/08/2023 - 3:35PM Batch: 00202.03.2023 Account Number Vendor Description GL Date Check No CITYonticello Amount PO No 213-46301-430400 KENNEDY AND GRAVEN CHAR] Washburn POS Expansion Land Aquis 03/14/2023 126788 140.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Jan 2023 03/14/2023 126788 225.50 213-46301-430400 KENNEDY AND GRAVEN CHAR] Business Facade Grant Program -Jan : 03/14/2023 126788 574.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] Moon Motors Warehouse Developmer 03/14/2023 126788 50.00 Vendor Subtotal for Dept:46301 989.50 Subtotal for Fund: 213 989.50 Report Total: 989.50 AP -Transactions by Account (03/08/2023 - 3:35 PM) Page 1 Accounts Payable CITY F Y Transactions b Account 1b User: Julie.Cheney�� Printed: 03/22/2023 - 3:01PM onti ffo Batch: 00204.03.2023 Account Number Vendor Description GL Date Check No Amount PO No 213-46301-431990 WSB & ASSOCIATES INC Downtown Redevelopment Project - J 03/28/2023 0 613.25 Vendor Subtotal for Dept:46301 613.25 213-46301-431993 WSB & ASSOCIATES INC 2023 Economic Development Service: 03/28/2023 0 1,510.00 Vendor Subtotal for Dept:46301 1,510.00 213-46301-433100 JAMES THARES Mileage Reimbursement - EDAM Da} 03/28/2023 0 62.88 Vendor Subtotal for Dept:46301 62.88 Subtotal for Fund: 213 2,186.13 Report Total: 2,186.13 AP -Transactions by Account (03/22/2023 - 3:01 PM) Page 1 Accounts Payable Transactions by Account User: Julie.Cheney Printed: 03/17/2023 - 1:14PM Batch: 00201.03.2023 Account Number Vendor Description CITY3tjMSo!nti cello GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 03/15/2023 0 29.75 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 03/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 03/15/2023 0 49.85 213-46301-438200 CITY OF MONTICELLO 7256-0010 - 101 Brdwy W -EDA 03/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-0011 107 Brdwy W- EDA 03/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-013 - 113 Brdwy W - EDA 03/15/2023 0 49.85 213-46301-438200 CITY OF MONTICELLO 7256-014 - 121 Brdwy W - EDA 03/15/2023 0 49.85 Vendor Subtotal for Dept:46301 179.30 213-46301-443990 US BANK CORPORATE PMT SYS Domino's - Food for Special EDA Met 03/15/2023 0 40.69 213-46301-443990 US BANK CORPORATE PMT SYS Domino's - Food for Special EDA Met 03/15/2023 0 48.09 213-46301-443990 US BANK CORPORATE PMT SYS Gold Medallion Award - Plaque (OW) 03/15/2023 0 56.75 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Annual Banquet (JT 03/15/2023 0 70.00 Vendor Subtotal for Dept:46301 215.53 Subtotal for Fund: 213 394.83 Report Total: 394.83 AP -Transactions by Account (03/17/2023 - 1:14 PM) Page 1 Accounts Payable Transactions by Account User: Julie.Cheney Printed: 04/04/2023 - 8:08AM Batch: 00203.03.2023 Account Number " CITY O F onti effo Vendor Description GL Date Check No Amount PO No 213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 03/31/2023 Vendor Subtotal for Dept:46301 213-46301-443990 DEMVI LLC Parking Lot Maintenance - March 202 03/31/2023 Vendor Subtotal for Dept:46301 Subtotal for Fund: 213 Report Total: The preceding list of bills payable totaling $3,784.32 was approved for payment. Date: 4/12/23 Approved by: Tracy Hinz - Treasurer 0 0.00 0.00 0 213.86 213.86 213.86 213.86 AP -Transactions by Account (04/04/2023 - 8:08 AM) Page 1 EDA Agenda: 04/12/23 6. Consideration of Adopting Resolution 2023-04 Authorizing a Contract with Rhet Architecture, Fargo, ND, in the amount of $10,000 for facade renderings connected to Block 52 Facade Improvement Project proposals for 149 and 155 West Broadway (JT) A. REFERENCE AND BACKGROUND: The EDA is asked to consider adopting resolution 2023-04 authorizing a professional services contract with Rhet Architecture, Fargo, ND, in the amount of $10,000 for building fagade renderings connected to Block 52 fagade improvement proposals for 149 West Broadway and 155 West Broadway. Both identified property owners desire to participate in the Fagade Improvement Forgivable Loan Program and need architectural sketch renderings to achieve full completed application submittal status. The EDA previously funded the Block 35 architectural renderings for the buildings in that block. The purpose of the renderings is to provide the applicants and the EDA clarity on the intended appearance of the finished fagade. The renderings are used as a reference for the contractor on the required project components and materials. Under the contract proposal, the fee charge would be $5,000 per building for a total cost of $10,000. The deliverables resulting from the proposed contract include: • Three (3) exterior renderings for Mattress Store (149 West Broadway) • Three (3) exterior renderings for Lucille Murray's Dance Studio (155 West Broadway) • Wall section drawings as required to communicate building materials Staff also interviewed Rhet Fiskness, owner of Rhet Architecture, to ensure that he understood the EDA's overall objectives of the Fagade Improvement Program as well as the desire to have the Block 52 buildings be uniquely individualized and retain a certain level of historic characteristics. Please note that since this is a professional services contract, the EDA is allowed — by statute - to forgo soliciting competitive quotes for the requested services. The submittal deadline for architectural drawings is proposed is May 1, 2023. This would allow the EDA to review the renderings at the regular meeting on May 10, 2023. Based on this timeline, the fagade improvement funding approval considerations for each building would be on the May 24 or June 14 regular meetings. If the EDA authorizes the fagade loan funding at either of these meetings, construction of the projects could start in June or July. Al. Budget Impact: The cost of the scope of work outlined in the proposal is $10,000. Funding for the architectural renderings would be sourced through the EDA General Fund budget line item for Redevelopment related activities. This EDA Agenda: 04/12/23 line item currently has sufficient funding available to pay for the proposed contract total fee. The EDA Attorney reviewed the contract for format and revised it to reflect EDA standard liability language limitations, etc. The anticipated cost for legal counsel review of the contract is expected to range from $650 to $825. A2. Staff Workload Impact: The Community & Economic Development Coordinator and Economic Development Manager have time allocated to tasks involved in coordinating and guiding this effort. No other staff are needed to complete these work tasks. B. ALTERNATIVE ACTIONS: 1. Motion authorizing a contract with Rhet Architecture, Fargo, ND, in the amount of $10,000 for facade renderings connected to Block 52 Facade Improvement Project proposals for buildings located at 149 and 155 West Broadway. 2. Motion of other. C. STAFF RECOMMENDATION: City staff recommends Alternative #1. Rhet Architecture, Fargo, ND, is the firm that Buchholz Construction and Block 52 Holdings utilized in the design and layout of the Block 52 mixed-use redevelopment project. Rhet Architecture has a strong working relationship with Buchholz Construction and continues to perform work on final, minor details of the redevelopment project. Since Buchholz Construction/Block 52 Holdings is involved in the fagade funding request through its likely ownership of the east wall of the mattress store at this time (new structural east wall was constructed on Block 52 Holdings property), it makes sense to utilize the partner team that designed the mixed use building as well. A. Resolution No. 2023-04 B. Rhet Architecture Contract C. Site Aerial K EDA RESOLUTION NO. 2023-04 RESOLUTION APPROVING A CONTRACT FOR ARCHITECTURAL SERVICES BETWEEN THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY AND RHET ARCHITECTURE BE IT RESOLVED BY the Board of Commissioners ('Board") of the City of Monticello Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority recognizes the need to encourage investment in commercial and retail buildings in the downtown area of the City of Monticello, Minnesota (the "City") in order to maintain the economic viability of the City and its Downtown/Central Community District and as such, has established a program to provide forgivable loans to eligible properties in the City's downtown to improve the facades of existing commercial and retail buildings (the "Facade Program") and on November 9, 2022, the Authority adopted revised guidelines for the Fagade Program (the "Guidelines"). 1.02. The Guidelines require that prior to granting a loan (a "Loan") under the Fagade Program, the Authority must receive architectural renderings of the farade(s) in order to determine the final scope of work with the applicant and the applicant's contractor. 1.03. The Authority has received letters of interest from multiple applicants stating their desire to apply for a Loan or Loans to pay a portion of the costs of certain fagade improvements including structural and aesthetic work (the "Improvements") at certain real property located at 149 and 155 West Broadway Street in the City (the "Property"). 1.04. To determine the scope of work of the Improvements and comply with the Guidelines, the Authority wishes to enter into a contract for limited architectural services with Rhet Architecture, a North Dakota corporation, a form of which is presented to the Board (the "Contract"). Section 2. Contract Approved. 2.01. The Authority hereby approves the Contract in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Contract (the "Contract Documents"). 2.02. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Contract Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the 1 MN325\40\867108.v1 Authority's obligations thereunder when all conditions precedent thereto have been satisfied. The Contract Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Contract Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Contract Documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Contract Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Contract Documents. 2.04. This resolution and the execution of the Contract Documents does not guarantee that a Loan will be granted for the Improvements. The Authority reserves the right to approve or reject Fagade Program applications on a case-by-case basis, taking into consideration factors considered appropriate by the Authority, in addition to established polices, criteria, and potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or denial of an application, including one for the Improvements, is at the sole discretion of the Authority. APPROVED this 12th day of April, 2023, by the Board of Commissioners of the City of Monticello Economic Development Authority. Steve Johnson, EDA President ATTEST: Jim Thares, Executive Director MN325\40\867108.v 1 RHET ARCHITECTURE Proposal for Limited Architectural Services Agreement Date: March 23, 2023 Project Name: Broadway Storefront facelifts Project Client: Monticello Economic Development Authority Client Address: 505 Walnut Street, Monticello, MN 55362 Phone Number/s (763)295-2711 Email Project Address: Broadway Ave, Monticello, MN Proposal Type: Limited Architectural Service Project Summary: Exterior storefront face-lift Basic $5,000.00 Fixed Fee — Sleep Concepts Mattress Compensation: Store $5,000.00 Fixed Fee — Lucille Murray Dance Studio The Client and the Architectural Firm RHET Architecture, LLC shall agree to the following limited architectural service proposal: I. SCOPE OF SERVICES: Services not set forth and listed in this Agreement are specifically excluded from the scope of the Firm's services. The Firm assumes no responsibility to perform any services not specifically listed. a. Budget Construction Budget (not specified) For Limited Architectural Service, the Firm is not responsible for construction budget and cannot control variables related, including but not limited to construction costs and material selection. b. Project Team Owner: City of Monticello Economic Development Authority (EDA) Owner's Representative: Jim Thares, Monticello EDA Owner's Representative: Hayden Stensgard, Monticello EDA City of Monticello Economic Development Authority (EDA) Project Manager: Mark Buchholz, Buchholz Construction Architect: Rhet Fiskness, RHET Architecture www.RHET-ARCH.com MN325\40\864913.v2 c. Services Builders Construction Drawings: • (3) Exterior renderings per building • Wall section drawings as required to communicate building materials d. Timeline March 31 - EDA agenda deadline April 12 - EDA fee proposal approval meeting April 29 - Architectural drawings deadline May 1 - EDA agenda deadline May 10 - EDA design review meeting e. SERVICE LIMITATIONS: Design in this proposal does not include: 1. Construction details unless requested by owner; 2. Interior design/decorating or detailing; 3. Bidding or Negotiation; 4. Preliminary estimate of construction cost; 5. Site survey, soil survey; 6. Civil, mechanical or electrical engineering; 7. Selection of materials; 8. Exterior and interior finish products to be suggested but not specified. 9. Construction observation, verification, or testing. ADDITIONAL SERVICES: Additional Services offered, in addition to the proposal at the hourly rates may include any of the following services: 1. Drawing revisions due to changes in pre -design and programming instructions, project size, quality or complexity or Client's failure to make decisions in a timely manner; 2. Not used. 3. Additional design renderings; 4. Assist in obtaining bids or negotiated proposals: bidding requirements, fixtures allowances, general conditions and supplementary conditions, specifications and supplementary drawings; Establish a list of prospective bidders or contractors; Respond to or provide clarifications to prospective bidders; and Evaluate proposals and determine successful bids or proposals. Minimum fee: $ 2,500.00. 5. Selection of any interior and exterior materials, windows, doors, etc.; 6. Contractor Negotiations assistance; 7. Availability for questions and clarifications; 8. Shop Drawings review; 9. Selection of any colors and finishes; 10. Selection of light fixtures, lighting layout; 11. Observation of the Construction Work for compliance with plans; 12. Review Monthly Requests for Payment; 13. Interior Furnishing Design / Furniture Design & Selection Services; 14. Assemble final punchlist for contractor/s; or 15. Final Inspection. For the above -listed Additional Services, the Client shall compensate the Firm at the hourly rate listed below. Current Hourly Compensation $140.00 Principal Architect Rate www.RHET-ARCH.com MN325\40\864913.v2 $130.00 Project Architect Rate $120.00 Project Manager Rate $105.00 Project Designer $65.00 Administrative Staff Rate and Travel time II. BASIC COMPENSATION: Flat fee for Services of $5,000 for each property. Modifications to the drawings during the construction that results in redesign and re -issuing the architectural drawings shall be compensated on an hourly basis. III. CADD PLAN FILES DISCLAIMER: The information contained on the electronic files for the above listed project have been created by RHET Architecture to assure the accuracy of these documents, yet RHET Architecture cannot guarantee that these documents contain the complete and accurate information or that no changes or modifications have been made to these documents. The recipient(s) of these file types agrees that RHET Architecture cannot be held responsible for problems arising from files which have been converted for use in non-native applications. (for example AutoCAD files converted to Micro Station, REVIT, etc.). Since revisions or additions to the design fields may occur at any time, the recipient agrees to indemnify, defend, and hold harmless RHET Architecture, its officers, agents and employees from and against any and all claims, suits, losses, damages or costs, including reasonable attorney's fees, arising from the use of outdated CADD design files. IV. GENERAL CONDITIONS: The Firm shall perform the services outlined in this agreement for the stated fee arrangement. Where applicable, proposed fees constitute our best estimate of the charges required to perform the services defined. Except as provided otherwise, the project scope will not be modified without written mutual agreement. Where project scope is expanded by the Client, Client will be responsible for payment for all services resulting there from. For those projects involving conceptual or process development services, activities often cannot be fully defined during initial planning. As the project progresses, if facts are uncovered which may alter the scope, the Firm will inform the Client of such situation so that changes in scope and compensation can be negotiated as required. The Firm will provide all services in accordance with generally accepted professional practices. The Firm will not provide or offer to provide services inconsistent with or contrary to such practices nor make any warranty or guarantee, expressed or implied, nor have any agreement or contract for services subject to the provisions of any uniform commercial code. V. CODE COMPLIANCE: The Firm shall exercise usual and customary professional care in its efforts to comply with applicable laws, codes and regulations in effect as of the date of this Agreement. Design changes made necessary by newly enacted laws, codes and regulations after this date shall entitle the Firm to a reasonable adjustment in the schedule and additional compensation in accordance with the Additional Services provisions of this Agreement. VI. DISPUTE RESOLUTION: In an effort to resolve any conflicts that arise during the design of the Project the Client and the Firm agree that all disputes between them arising out of or relating to this Agreement or the Project shall be submitted to nonbinding mediation. VII. PAYMENT DUE: Invoices shall be submitted by the Firm monthly and are due within thirty (30) calendar days of the receipt. The Firm will not provide backup documentation with submitted invoices. If the Client takes exception to any part of the invoice, including the amount or estimated work complete, the Client will notify the Firm within thirty (30) days. Without notification, the Client agrees not to dispute any part of the invoice or withhold any payment. VIII. INTEREST: If payment in full is not received by the Firm within thirty (30) calendar days of the www.RHET-ARCH.com MN325\40\864913.v2 due date, invoices shall bear interest at one -and -one-half (1.5) percent (or the maximum rate allowable by law, whichever is less) of the PAST DUE amount per month, which shall be calculated from the invoice due date. Payment thereafter shall first be applied to accrued interest and then to the unpaid principal. IX. COLLECTION COSTS: If the Client fails to make payments when due and the Firm incurs any costs in order to collect overdue sums from the Client, the Client agrees that all such collection costs incurred shall immediately become due and payable to the Firm. Collection costs shall include, without limitation, legal fees, collection agency fees and expenses, court costs, collection bonds and reasonable staff costs at standard billing rates for the Firm's time spent in efforts to collect. This obligation of the Client to pay the Firm's collection costs shall survive the term of this Agreement or any earlier termination by either party. X. SUSPENSION OF SERVICES: If the Client fails to make payments when due or otherwise is in breach of this Agreement, the Firm may suspend performance of services upon thirty (30) calendar days' notice to the Client. The Firm shall have no liability whatsoever to the Client for any costs or damages as a result of such suspension caused by any breach of this Agreement by the Client. Upon payment in full by the Client, the Firm shall resume services under this Agreement, and the time schedule and compensation shall be equitably adjusted to compensate for the period of suspension plus any other reasonable time and expense necessary for the Firm to resume performance. XI. TERMINATION: In the event of termination of this Agreement by either party, the Client shall, within thirty (30) calendar days of the date of termination, pay the Firm for all services rendered and all reimbursable costs incurred by the Firm up to the date of termination, in accordance with the payment provisions of this Agreement. The Client may terminate this Agreement for the Client's convenience and without cause upon giving the Firm not less than seven (7) calendar days' written notice. Either party may terminate this Agreement for cause upon giving the other party not less than seven (7) calendar days written notice for any of the following reasons: • Substantial failure by the other party to perform in accordance with the terms of this Agreement and through no fault of the terminating party; • Assignment of this Agreement or transfer of the Project by either party to any other entity without the prior written consent of the other party; • Suspension of the Project or the Firm's services by the Client for more than ninety (90) calendar days, consecutive or in the aggregate; • Material changes in the conditions under which this Agreement was entered into, the Scope of Services or the nature of the Project, and the failure of the parties to reach agreement on the compensation and schedule adjustments necessitated by such changes. XII. SET -OFFS, BACKCHARGES, DISCOUNTS: Payment of invoices shall not be subject to any discounts or set -offs by the Client unless agreed to in writing by the Firm. Payment to the Firm for services rendered and expenses incurred shall be due and payable regardless of any subsequent suspension or termination of this Agreement by either party. XIII. INDEMNIFICATION: The Firm agrees, to the fullest extent permitted by law, to indemnify and hold harmless the Client, its officers, directors and employees (collectively, Client) against all damages, liabilities or costs, including reasonable attorneys' fees and defense costs, to the extent caused by the Firm's performance of professional services under this Agreement and that of its subconsultants or anyone for whom the Firm is legally liable. www.RHET-ARCH.com MN325\40\864913.v2 The Client agrees, to the fullest extent permitted by law, to indemnify and hold harmless the Firm, its officers, directors, employees and subconsultants (collectively, Firm) against all damages, liabilities or costs, including reasonable attorneys' fees and defense costs, to the extent caused by the Client's negligent acts in connection with the Project and the acts of its contractors, subcontractors or consultants or anyone for whom the Client is legally liable. Neither the Client nor the Firm shall be obligated to indemnify the other party in any manner whatsoever for the other party's own negligence or for the negligence of others. XIV. CERTIFICATIONS GUARANTEES AND WARRANTIES: The Firm shall not be required to execute any document that would result in its certifying, guaranteeing or warranting the existence of conditions whose existence the Firm cannot ascertain. The Client also agrees not to make resolution of any dispute with the Firm or payment of any amount due to the Firm in any way contingent upon the Firm signing any such certification. XV. OWNERSHIP OF INSTRUMENTS OF SERVICE: All reports, drawings, specifications, computer files, field data, notes, models and other documents and instruments prepared by the Firm as instruments of service shall remain the property of the Firm and the Client. The Firm and the Client shall retain all common law, statutory and other reserved rights, including, without limitation, the copyrights thereto. XVI. PROMOTIONAL RIGHTS: The Firm shall maintain the right to include photographic and artistic representations of the Project design for promotional and professional materials. The Firm shall be given reasonable access to the Project to make such representations. The promotional materials shall not include the Client's confidential or proprietary information. The Client shall provide professional credit for the Firm in the Client's promotional materials for the Project. XVII. USE OF INNOVATIVE DESIGN AND TECHNOLOGIES: The Client understands and agrees that state- of -the -art or innovative products, technologies or methods may be used on the Project and that these lack a proven history of successful application and performance. The Client acknowledges that these technologies are being incorporated into the Project to accomplish recognized objectives, but due to their unproven and innovative nature, there is a significant possibility that those objectives may not be realized and may result in undesirable consequences. The Firm will conduct a reasonable level of investigation and analysis, and this is the limitation of the Firm's obligation for the performance of these technologies. The Client has weighed the relative risks and rewards and accepts the risk of incorporating the innovation(s) into the project. XVIII. ASSIGNMENT: Neither party to this Agreement shall transfer, sublet or assign any rights or duties under or interest in this Agreement, including but not limited to monies that are due or monies that may be due, without the prior written consent of the other party. Subcontracting to subconsultants, normally contemplated by the Firm as a generally accepted business practice, shall not be considered an assignment for purposes of this Agreement. XIX. LIMITATION OF LIABILITY: In recognition of the relative risks and benefits of the Project to both the Client and the Firm, the risks have been allocated such that the Client agrees, to the fullest extent permitted by law, to limit the liability of the Firm to any action by the Client, and the Firm agrees to limit the liability of the Client to any action by the Firm, for any and all claims, losses, costs, damages of any nature whatsoever or claims expenses from any cause or causes, including attorneys' fees and costs and expert -witness fees and costs, so that the total aggregate liability of the Firm to the Client and/or the Client shall not exceed the Firm's total fee for services rendered on this Project. www.RHET-ARCH.com MN325\40\864913.v2 XXII. INSURANCE. Prior to starting the Services and during the full term of this Agreement, the Firm shall procure and maintain, at Firm's expense, as follows: a. Workers Compensation insurance in accordance with Minnesota law; b. Professional Liability Insurance covering any damages caused by an error, omission or any negligent act C. Automobile insurance for owned, hired and non -owned vehicles]; Coverage shall be sufficiently broad to cover to all duties and obligations undertaken by the Firm in this Agreement including duties related to indemnification. Insurance must be on an "occurrence" basis, and, other than Workers Compensation, the limits of such policies must be no less than $1,000,000 per occurrence and $1,500,000 aggregate. XXIII. DATA PRACTICES ACT COMPLIANCE. The Firm acknowledges that all data provided, produced, or obtained under this Agreement shall be protected, maintained, and administered in accordance with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13 (the "Act"), and that with regard to such data The Firm must comply with the Act as if it were a government entity. The Firm will immediately report to the City any requests from third Parties for information relating to this Agreement. XXIV. AUDIT DISCLOSURE. Under Minn. Stat. § 16C.05, subd. 5, The Firm's books, records, documents, and accounting procedures and practices relevant to this Agreement, including books and records of any approved subcontractors, are subject to examination by the City and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years after the termination of this Agreement. XXV. OWNERSHIP OF DOCUMENTS. All plans, diagrams, analysis, reports and information generated in connection with the performance of this Agreement (the "Information") shall become the property of the City, but the The Firm may retain copies of such documents as records of the services provided. The City may use the Information for any reasons it deems appropriate without being liable to the Firm for such use. The Firm shall not use or disclose the Information for purposes other than performing the Work contemplated by this Agreement without the prior consent of the City. XXVI. GOVERNING LAW. This Agreement shall be controlled by the laws of the State of Minnesota. Any disputes, controversies, or claims arising under this Agreement shall be heard in the state or federal courts of Minnesota and the Parties waive any objections to jurisdiction. www.RHET-ARCH.com MN325\40\864913.v2 I have read and understand the contract: The signature indicates that you have read and understand the contract. The following signatures indicate this proposal is acceptable and in agreement with your understanding. Please retain a copy for your records and return the other signed copy to Rhet Fiskness, Architect. XX. Offered by: "41e� 3/28/2023 Rhet Fiskness, AIA Date Accepted by: Signature Date www.RHET-ARCH.com MN325\40\864913.v2 �^ co C z T�f p�rr�m.�ent f4,,Beacon T M Wright FRO,PPO:5aA Date created: 4/5/2023 Last Data Uploaded: 4/5/20231:58:04 PM Developed by4� Schneider GEOSPATIAL Z cr.2,3 Legend Roads — CSAHCL — CTYCL MUNICL — PRIVATECL — TWPCL Highways Interstate -- State Hwy --R US Hwy City/Township Limits ® c ❑t [71 Parcels Torrens EDA Agenda: 04/12/23 7. Economic Development Director's Report (JT) A. Water — Sewer Service Billing Adjustments: See attached March 16, 2023, letter from Pat Kovich, the City of Monticello Utility Billing Clerk regarding the requested clarifications of City sewer and water bills for the Block 52 property which was conveyed to Block 52 Holdings (Buchholz Construction team) on September 19, 2022. This clarification and internal financial adjustments effort explanation from Pat Kovich was very helpful. — Exhibit A B. Headwaters Development -CHC — 7t" Street West Villa Twin homes update: Headwaters submitted the required documentation for the EDA Grant intended to reimburse the developer for costs related to the removal of the contaminated soil. The documentation included a 36 - page report prepared by Braun-Intertec describing the soil mitigation plans, handling procedures and locations of the on-site burial (deep burial at certain locations away from buildings is allowed for this minor level of contamination). The $80,000 payment voucher packet included documentation as per the terms of the contract for Private Development (TIF Development Agreement). Concrete Pad sites for 10 new Twin Home units are being poured in the near future. These pads will accommodate the modular residential units being fabricated and assembled in the Advanced Volumetric Alliance facility in Albertville in the days to follow. C. Economic Development Legislation Summary Update: Community Energy Transition (CET) Legislation and Other Economic Development Legislative Funding — See attached Exhibit B1 and B2. D. Prospect List Update: Please see the updated Prospect List as Exhibit C. -�'KMonticello March 16, 2023 Monticello EDA 505 Walnut St., Suite 1 Monticello, MN 55362 PHONE: 763-295-2711 FAx:763-295-4404 505 Walnut Street I Suite 11 Monticello, MN 55362 Re: Refund of credit balances; Sewer/Water Accounts: #007256-008 (112 River St. W.); #007256-013 (113 Broadway W.); #007256-014 (121 Broadway W.) — All located in Monticello, MN 55362. Dear Sir or Madam, Attached is a refund for the three properties listed above for $186.35 each, for a total of $559.05. These properties had received a minimum bill for November and December 2022 and January — March 2023, after the property was sold. After finding the water had been capped off for the two properties located at 113 and 121 Broadway W., I adjusted off the November - March bills. The March bill had not yet been paid. These accounts now have a zero balance due. The water is not capped off for the property located at 112 River St. W., so I will back bill Lot 52 Holdings, LLC for bills from November 2022 through March 2023 on that property. They will continue to received a minimum monthly water bill until the service is capped off. If you have any questions regarding this refund, please contact me at (763) 271-3203. Sincerely, CITY OF MONTICELLO Pat Kovich Utility Billing Enc. Cc: file www.ci.monticel lo.m n.us Becker * Cohasset • Granite Falls * Hoyt Lakes * Monticello * Oak Park Heights • Red Wing Subject: Legislative update — April 3, 2023 CUC Members: With the legislature set to take a short break before returning to act on its omnibus bills, this update is meant to inform CUC members on the status of key legislation. Please feel free to share these updates with your city councils and to contact me at (651) 295-1123 or SAZahrt@flaherty-hood.com with any questions. House File 1398/Senate File 1173 — Community Energy Transition Grants Summary: Bill would provide $10 million for additional grants to host communities, while also making programmatic enhancements. Update: CUC's full funding request and policy language are included in omnibus bills in both the House and Senate. House: $10 million from the general fund and all policy language from HF 1398 are included in the House Workforce Omnibus bill (CLICK HERE; see lines 4.18 — 4.22; 27.20 — 29.2). Senate: $5 million from the renewable development account in the Senate Energy omnibus bill (CLICK HERE; see lines 16.29 —17.2); $5 million from the general fund and all policy language from SF 1173 are included in the Senate Jobs and Economic Development omnibus bill (CLICK HERE; see lines 4.8 — 4.12; 95.1— 96.13). House File 1427/Senate File 1172 — Electric Generation Transition Aid to Local Governments Summary: Bill would create a transition aid program that would provide tax base replacement aid for communities in which an investor-owned power plant retires. Update: The bill has seen positive movement in both bodies. House: The full text of HF 1427 is included in the House Property Tax Division Report (CLICK HERE; see lines 39.1— 41.11). Senate: SF 1172 was heard by the Senate Taxes Committee; the Senate has not yet released its omnibus tax bill. Extension of the Energy Transition Advisory Committee Also included in the House Workforce omnibus and Senate Jobs and Economic Development omnibus bills is language that would extend the existence of the Energy Transition Advisory Committee (ETAC), which was convened as a result of the 2021 legislation that created the state's Energy Transition Office. This language was not included in a standalone bill but was brought forward by DEED and the Governor's Office in March after they determined that legislation would be needed to extend the existence of the stakeholder group. CUC supports the continuation of the ETAC because the advisory committee helped to broaden consensus around host community proposals. Concerning Legislation: House File 178/Senate File 369 — Property Tax Exemption for Energy Storage Systems Summary: The bill would exempt energy storage systems from personal property taxation. CUC is concerned that the bill could undermine the property tax base in our communities, as we know that the sites of existing generation facilities are likely to be the sites for utility scale battery storage projects. Action: The bill received hearings in the House Property Tax Division and Senate Taxes Committee. CUC submitted comments in both committees and the City of Becker testified with concerns in the Senate. Status: The bill has been laid over for possible inclusion in omnibus tax bills. At this stage, the bill has not been included in the House property tax report, but we have indications it could be added back later— although modified to protect the tax base of host communities. The Senate has not yet released its tax bill. It E DAM ECONOMIC DEVELOPMENT ASSOCIATION of MINNESOTA rt;F EDAM'S TOP PRIORITIES Redevelopment Grant Program: Increase Funding • The Redevelopment Grant Program is essential to fostering state, regional and local business collaboration, resulting in projects that achieve community revitalization goals and are consistent with state economic development plans. • Redevelopment funds assist communities with their redevelopment projects by filling the financial gap that often prevents recycling land for more vibrant uses, that would benefit the community and local businesses. Redeveloping previously built sites, where there are often dilapidated structures, is more complex and costly compared to undeveloped parcels. Funds allow small and new businesses to partake in these projects and be leaders in reimagining their communities. • The Program has spurred the redevelopment of over 1,450 acres of land, created or retained over 30,000 jobs, and added over 8,500 housing units across the State. • The $80 million in Redevelopment funds awarded to date have leveraged over $3.5 billion in business investment and increased local tax bases by almost $59 million. Job Creation Fund (JCF) • JCF encourages business investment and job creation by providing awards after the business meets performance commitments related to capital expenditures and full- time job creation. • JCF is a performance-based program that is a complementary program to MIF. • Without this program Minnesota is at a competitive disadvantage compared to our neighboring states. • Since FY18, the program has made 90 JCF awards valued at more than $31.1 million. This is a valuable program for the entire state as nearly 60% of the projects (55) are in Greater Minnesota. • The JCF awards are expected to leverage $1.26 billion and create 5,011 jobs. Minnesota Investment Fund (MIF) • MIF is a unique financing tool as repayments of MIF loans seed local revolving loan funds which are then used to leverage additional private financing. • This has been critical to fueling job creation, business expansion and new tax bases. • Communities in both Greater Minnesota and Metro Areas rely on this program to remain competitive with neighboring states in their effort to bring jobs and tax base to Minnesota. • Since FY18, DEED has made 84 MIF awards valued at more than $37.2 million touching all corners of the state (expected to leverage more than $1.66 billion and create 4,499 jobs). eiDAMM 2023 LEGISLATIVE PRIORITIES ASSOCIATION of MINNESOTA To address critical economic development needs and workforce shortages, EDAM STRONGLY SUPPORTS: Workforce Development • Expand career and technical education training (including earn -and -learn(. • Incentivize employers that create career pathways to upskill workers. • Fund scholarship programs that assist low-income individuals with the cost of obtaining a qualifying degree or credential in high -demand fields. • Incentivize community and technical colleges to more closely partner with local industries and businesses. • Increase state funding to match federal programs such as Workforce Innovation and Opportunity Act (WIOA) or SNAP Employment and Training (E&T) program. • Increase investments in youth, for example career programming in schools and no -cost driver license obtainment programs. Child Care • Expand Child and Dependent Care Tax Credits. • Expand Early Learning Scholarship Program. • Support continuation of programs with direct financial incentives to care providers (i.e. Peacetime Emergency Child Care Grants, Child Care Stabilization Grants, Financial Hardship Grants, Child Care Facility Revitalization Grants, and Child Care Aware Regional Grants(. Housing • Support continuation and increased funding to workforce housing programs; i.e. Economic Development and Housing Challenge Program (EDHC) and Workforce Housing Development Program. • Support reinstatement of the State Historic Tax Credits. • Increase appropriations for Housing Infrastructure Bonds (HIB( and expansion of eligible uses to include workforce housing. • Support homebuyer and homeowner assistance programs (i.e. First -Time Homebuyer Program, Repeat Homebuyer Program, Down Payment and Closing Cost Programs Loan assistance for first-time home buyers). Date of Contact 22/201 /29/20 /28/201 /9/201'. 116/201 /20/202 23/20- 30-22 /16/202 119/202 128/202 116/202 130/202 129/202 /28/20, /7/202, Company Name Business Category Project Description Karlsburger Foods Food Products Mfg. Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. Project Nutt Co -Working Space Existing Building Project FSJP Light Mfg -Res. Lab New Construction Project Jaguar Office New Construction Project Panda v3 Service -Child Care New Construction Project TDBBST Industrial New Construction Project Cold Industrial -Warehouse -Di New Construction ? stri 20,000 sq. ft. Project Orion Warehouse-Distributi New Construction Active Search on 22 Project Emma II Light Ind -Assembly New Construction Project UBAA Child Care Services New Construction or Exist Project Ecosphere Industrial Tech Mfg. New Construction Project BA710 Lt Assem-Distribute New Construction Project Stallion Technology Service New Construction Project Shepherd Lt Assembly Distribution New Construction III 04/05/2023 Building -Facility Retained Jabs New Jobs Total Investment Project Status 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold 20 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 20,000 sq. 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 Active Search 6,500 to 7,000 sq. ft 0 10 $650,000 Active Search 42,000 sq. ft. 40 $3,600,000 Active Search 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 = 8