EDA Agenda - 06/14/2023AGENDA
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, June 14, 2023 — 6:00 p.m.
Mississippi Room, Monticello Community Center
SPECIAL MEETING — ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Monticello Community Center — North Mississippi
4:00 p.m. Tax Increment Financing (TIF) and Tax Abatement Overview
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, Hayden
Stensgard
1. General Business
A. Call to Order
B. Roll Call 6:00 p.m.
C. Consideration of Approving Regular Meeting Minutes— May 10, 2023
D. Consideration of Additional Agenda Items
2. Consent Agenda
A. Consideration of Approving Payment of Bills
B. Consideration of funding contribution for the IEDC Business Roundtable Showcase
Event (September 14, 2023) in the amount of $300
3. Public Hearing
4. Regular Agenda
A. Consideration of Authorizing Professional Services Contract with MSA Professional
Services in the amount of $21,200 to complete a Housing Needs and Demands Study
Update
B. Consideration of Authorizing a Professional Services Contract with Stephen Sherf,
Hospitality Consulting Services, LLC to complete a 2023 Hotel -Hospitality Study
Update
5. Other Business
A. Consideration of Economic Development Manager's Report
6. Adjournment
MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, May 10, 2023 — 6:00 p.m.
Mississippi Room, Monticello Community Center
SPECIAL MEETING — ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Monticello Community Center — Academy Room
5:15 p.m. Discussion of Downtown Fagade Improvement Forgivable Loan
Program Application Submittals
Review of EDA landholdings
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, 011ie
Koropchak-White, Rick Barger and Councilmembers Lloyd Hilgart
and Tracy Hinz
Commissioners Absent: Treasurer Hali Sittig
Staff Present: Executive Director Jim Thares, Rachel Leonard, Angela Schumann,
Hayden Stensgard
1. General Business
A. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order
at 6:07 p.m.
B. Roll Call 6:00 a.m.
Mr. Johnson called the roll.
C. Consideration of Additional Agenda Items
None
2. Consent Agenda
A. Consideration of Approving Payment of Bills
B. Consideration of Aaarovine Regular Meeting Minutes — Aoril 12. 2023
C. Consideration of Authorizing Art Project —130 East Broadway, Block 34 (EDA
Owned
D. Consideration of Authorizing Wright County Sheriff's Office temporary use of
vacant OCBP lots for K-9 Training in Spring -Summer of 2023
TRACY HINZ MOVED TO APPROVED THE CONSENT AGENDA. JON MORPHEW
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
3. Regular Agenda
A. Consideration of LOST (Local Option Sales Tax) Update — Rachel Leonard, City
Administrator
City Administrator Rachel Leonard provided an overview of the agenda item to the
EDA and the public. Ms. Leonard gave an update on the status of Monticello's efforts
to get authorization to propose a Local Option Sales Tax (LOST) to the Monticello
residents. Provided at the meeting also was a presentation related to an analysis of
the proposed Monticello LOST completed by the University of Minnesota Extension
Office. This presentation has since been posted to the EDA agenda page on the City
of Monticello's website.
Jon Morphew asked if surrounding communities have implemented a LOST. Mayor
Hilgart confirmed that there are many surrounding communities that implemented
already or are in the process of obtaining authorization for LOST.
No action was taken on the item.
B. Consideration of Authorizing funding for a Tourism Economic Impact Study by the
University of MN in the amount of $3,000
Community Development Director Angela Schumann provided an overview of the
agenda item to the EDA and the public. The proposed economic impact analysis
would help quantify both the existing and future economic impact of the athletic
park on the Monticello community and local economy. The analysis would help staff
better understand the overall economic contribution of the Bertram Chain of Lakes
to the Monticello community. Understanding these impacts will also help guide
necessary future Park development phasing steps for the Bertram Chain of Lakes.
Mr. Morphew asked if the Pointes at Cedar area would be included in this study. Ms.
Schumann clarified that it had been discussed with the University of Minnesota,
however, the methods of analysis that are to be used do not accurately quantify
economic impacts for prospective projects.
JON MORPHEW MOVED TO SUPPORT COMPLETION OF AN ECONOMIC IMPACT
ANALYSIS OF SPORTS TOURISM BY THE UNIVERSITY OF MINNESOTA TOURISM
CENTER WITH AN EDA ALLOCATION OF $3,000. LLOYD HILGART SECONDED THE
MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
C. Consideration of Authorizing a Housing Market Needs and Demand Study Update
Executive Director Jim Thares provided an overview of the agenda item. The Study
Update proposed stems from a workshop that the City Council had where staff
provided an update on housing information for Monticello. It was understood that
an update to the housing study would provide helpful information to policy makers
and staff regarding housing trends and economic factor influencers as there are
indications that additional multi -family concept proposals may be submitted to the
City for consideration in the near future. The Study Update was originally
contemplated as being a 2024 Work Plan task. The EDA is being asked to move the
Study Update forward by 12 months to 2023.
OLLIE KOROPCHAK-WHITE MOVED TO AUTHORIZE A HOUSING NEEDS AND MARKET
DEMAND STUDY UPDATE, INCLUDING A SPECIFIC SCOPE OF WORK AND FURTHER
AUTHORIZING NEGOTIATIONS WITH CONSULTING FIRMS REGARDING
PROFESSIONAL SERVICE CONTRACT QUOTES...
Discussion
Jon Morphew asked if this decision is related to engaging in discussion of a housing
update, not authorizing an update. Mr. Thares confirmed and noted that a quote for
the update would be provided to the EDA for review and consideration at a later
meeting.
...RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
D. Consideration of Adopting Resolution No. 2023-05 amending the 2022 Pooled TIF
Allocation Plan
Mr. Thares provided an overview of the agenda item to the EDA and the public. This
item is a financial tracking paperwork housekeeping technical item and is related to
a previously approved action item for the Headwaters Senior Housing development
wherein the EDA authorized a total of $80,000 towards contaminated soil mitigation
efforts on the previously EDA owned parcel in which the Headwaters West Senior
Residential Development is being built on. The reason for amending the allocation
plan is that it will allow the EDA to use the pooled TIF funds to cover the cost, rather
than using funds from the general fund.
LLOYD HILGART MOVED TO ADOPT RESOLUTION NO. 2023-05, AMENDING THE 2022
POOLED TIF ALLOCATION PLAN INCREASING THE POOLED AFFORDABLE HOUSING TIF
ALLOCATION INTO TIF DISTRICTS 1-42 AND 1-43 BY $80,000, TO $880,000. OLLIE
KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-
0.
4. Other Business
A. Economic Development Manager's Report
Mr. Thares provided an overview of the agenda item to the EDA and the public.
Mayor Hilgart noted that the EDA should consider an update to the Hotel Study
from 2020.
The EDA was in consensus to direct staff to begin efforts to update the 2020
Hotel Study.
5. Adjournment
TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA.
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED
AT 7:08 P.M.
EDA Agenda: 6/14/23
2A. Consideration of Approving Payment of Bills
Prepared by:
Meeting Date:
❑ Regular Agenda Item
Community & Economic Development
6/14/2023
❑x Consent Agenda Item
Coordinator
Reviewed by:
Approved by:
N/A
Economic Development Director
REFERENCE AND BACKGROUND:
Accounts Payable summary statements listing bills submitted during the previous month are
included for review.
ALTERNATIVE ACTIONS:
1. Motion to approve payment of bills through May 2023.
2. Motion to approve payment of bills through May 2023 with changes as directed by the
EDA.
STAFF RECOMMENDATION:
Staff recommends approval of Alternative #1.
SUPPORTING DATA:
A. Accounts Payable Summary Statements
Accounts Payable
CITY F
Y
Transactions b Account 1b
User: Julie.Cheney 3tjMSo!nti effo
Printed: 05/04/2023 - 11:23AM
Batch: 00205.05.2023
Account Number Vendor Description GL Date Check No Amount PO No
213-46301-433100 JAMES THARES Mileage Reimbursement (79 Miles) 05/09/2023 0 51.76
Vendor Subtotal for Dept:46301 51.76
213-46301-443990 BLOCK 52 HOLDINGS LLC MN DEED Redevelopment Grant Fun 05/09/2023 126958 284,122.50
Vendor Subtotal for Dept:46301 284,122.50
Subtotal for Fund: 213 284,174.26
Report Total: 284,174.26
AP -Transactions by Account (05/04/2023 - 11:23 AM) Page 1
Accounts Payable
CITY F
Y
Transactions b Account 1b
User: Julie.Cheney��
Printed: 05/19/2023 - 3:31PM onti
ffo
Batch: 00203.05.2023
Account Number Vendor Description GL Date Check No Amount PO No
213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- March 2023 05/23/2023 127032 694.00
213-46301-430400 KENNEDY AND GRAVEN CHAR] Business Facade Grant Program - M& 05/23/2023 127032 456.50
Vendor Subtotal for Dept:46301 1,150.50
213-46301-431990 RHET FISKNESS ARCHITECT LL Facade Concepts - 149 & 155 W Broa 05/23/2023 0 10,000.00
Vendor Subtotal for Dept:46301 10,000.00
213-46301-431993 WSB & ASSOCIATES INC 2023 Economic Development Service: 05/23/2023 0 1,425.00
Vendor Subtotal for Dept:46301 1,425.00
213-46301-435100 ECM PUBLISHERS INC PH Business Subsidy Ad# 1313667 05/23/2023 0 166.50
Vendor Subtotal for Dept:46301 166.50
Subtotal for Fund: 213 12,742.00
Report Total: 12,742.00
AP-Transactions by Account (05/19/2023 - 3:31 PM) Page I
Accounts Payable
CITY F
Y
Transactions b Account 1b
User: Julie.Cheney 3tjMSo!nti effo
Printed: 05/17/2023 - 11:29AM
Batch: 00201.05.2023
Account Number Vendor Description GL Date Check No Amount PO No
213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 05/15/2023 0 29.75
213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 05/15/2023 0 0.00
213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 05/15/2023 0 0.00
213-46301-438200 CITY OF MONTICELLO 7256-0010 - 101 Brdwy W-EDA 05/15/2023 0 0.00
213-46301-438200 CITY OF MONTICELLO 7256-0011 107 Brdwy W- EDA 05/15/2023 0 0.00
213-46301-438200 CITY OF MONTICELLO 7256-013 - 113 Brdwy W - EDA 05/15/2023 0 0.00
213-46301-438200 CITY OF MONTICELLO 7256-014 - 121 Brdwy W - EDA 05/15/2023 0 0.00
Vendor Subtotal for Dept:46301 29.75
213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - March Lunch (JT) 05/15/2023 0 20.00
Vendor Subtotal for Dept:46301 20.00
Subtotal for Fund: 213 49.75
Report Total: 49.75
AP -Transactions by Account (05/17/2023 - 11:29 AM) Page 1
Accounts Payable
Transactions by Account
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Printed: 06/01/2023 - 4:02PM
Batch: 00204.05.2023
Account Number
" CITY O F
' 4
effo
Vendor Description GL Date Check No Amount PO No
213-46301-438100 XCEL ENERGY 51-13295413-8 - 103 Pine St 05/31/2023
Vendor Subtotal for Dept:46301
213-46301-443990 DEMVI LLC Parking Lot Maintenance - May 2023 05/31/2023
Vendor Subtotal for Dept:46301
Subtotal for Fund: 213
Report Total:
The preceding list of bills payable totaling $297,179.87 was approved for payment.
Date: 6/14/23 Approved by:
Hali Sittig - Treasurer
0 0.00
0.00
0 213.86
213.86
213.86
213.86
AP -Transactions by Account (06/01/2023 - 4:02 PM) Page 1
EDA Agenda: 06/14/23
213. Consideration of approving funding for the IEDC Business Roundtable -Showcase Event
(September 14, 2023) in the amount of $300
Prepared by:
Meeting Date:
❑ Regular Agenda Item
Economic Development Manager
06/14/23
❑x Consent Agenda Item
Reviewed by:
Approved by:
Community Development Director,
City Administrator
Economic Development Coordinator
ACTION REQUESTED
Motion to authorize funding supporting the IEDC Business Roundtable Showcase Event in the
amount of $300.
Motion of other.
REFERENCE AND BACKGROUND
The IEDC's 2023 Action Plan identifies a goal of promoting communication and engagement
with Monticello business and prospects. In support of that goal, the Industrial Economic
Development Committee (IEDC) is seeking funding from the EDA in the amount of $300 to hold
a Business Roundtable Showcase Event on September 14, 2023. The event is planned as a
platform for discussion and information sharing about financial assistance programs,
development entitlement processes and labor training funding resources, consistent with the
Action Statement.
The event is planned as an afternoon business casual format from 3:00 p.m. to 5:00 p.m. at
Nordic Brewpub. Nordic has sufficient space to hold an event allowing several display and
discussion tables to be set up along with seating for attendees. The primary topic of the event is
a review of financing programs solutions offered by non-bank financial assistance providers.
Speakers from MN -DEED, IF and WCEDP have committed to participate in the event. The goal is
to attract an audience totaling between 50 to 70. Attendance levels above that figure could be
accommodated and would be a positive outcome. Event sponsors committing funding include:
1. North Star Bank, Monticello, MN
2. Riverwood Bank, Monticello, MN
3. First Bank Elk River, Elk River, MN
4. North Risk Partners, Monticello, MN
Funding participation by the EDA would increase the total dollars supporting the event to $1,500
($300 x 5 = $1,500).
EDA Agenda: 06/14/23
Budget Impact: The total event cost is estimated at $1,500. The private sector sponsors
are being asked to each contribute $300 to the event as well. The 2023 EDA General
Fund Budget contains Advertising -Marketing dollars in the amount of $37,500. The cost
of the marketing materials needed for the event should be relatively modest as in-house
staff will complete these tasks.
II. Staff Workload Impact: The Community and Economic Development Coordinator, and
Economic Development Manager have been involved in the work tasks related to the
event. Additionally, the Marketing and Communications Coordinator is involved in the
event marketing and promotional tasks.
III. Comprehensive Plan Impact: The Monticello 2040 + Plan's Economic Development
Chapter includes statements illustrating a focus on supporting existing businesses and
attracting new ones. The Plan states that.... -it is the City's intention to maintain a strong
Business Retention and Expansion Program." In addition, there is a recognition in the
Plan that this effort "will allow the City to facilitate continued growth and expansion of
businesses as well as the continued relationship between the City and existing
businesses."
STAFF RECOMMENDED ACTION
Staff recommend approval of the funding contribution towards the IEDC Business Roundtable
Showcase Event in the amount of $300. If the EDA contributes funds along with the private
sector businesses, the total event funding of $1,500 should be sufficient to cover the expected
costs of the event which is comprised of food and beverages. Marketing materials will be
produced by in-house staff.
SUPPORTING DATA
A. Event Logistics information
B. 2023 IEDC Action Statements
IEDC Business Roundtable Showcase Event
Business Assistance Loan and Grant Programs
Industrial & Economic Development Committee (IEDC) is planning to host
an event sharing information with the Monticello business community related
to business assistance loans and grant programs offered through multiple
entities. The details of the event format are still being finalized, though it may
include a panel discussion from representatives of the following organizations
that offer various business assistance programs.
Wright County Economic Development Partnership
Minnesota Department of Employment & Economic Development
Initiative Foundation
City of Monticello Economic Development Authority
Minnesota Business Finance Corporation
Date: Thursday, September 14, 2023
Time: 3 p.m. to 5 p.m.
Location: Nordic BrewPub (530 Cedar Street, Monticello, MN 55362)
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE
2023 ACTION STATEMENTS
Mission Statement: The Monticello IEDC will advocate industrial and economic growth within
the City of Monticello by promoting awareness and communication efforts on behalf of the
business community.
Goal:
The IEDC is dedicated to being pro -active in following the objectives and policies established in
the Monticello Comprehensive Plan. It is the intention of the IEDC to work within the areas
identified below as supporting objectives and actions.
Objective: Workforce Development, Job Creation and Retention
1. Encourage and Support Business Retention within Monticello.
a. In collaboration with Wright County Economic Development Partnership
(WCEDP), conduct Business Retention (BR&E) visits with key business in the
community to help grow stronger relationships between businesses and
Governmental units.
b. Using shared information and relevant data points obtained in BR&E visits,
assemble a Business Retention Action Plan and present to policy makers as needed.
c. Market and present various assistance programs available via the City and EDA.
2. Enhance Workforce Development through Partnerships with Local Educators,
Businesses, Organizations and Agencies.
a. Based on the need of the businesses, partner with Wright County and key leaders of
our local businesses, educators, and others to develop and execute a Workforce
Development Plan.
b. Collaborate with and support the Monticello School District in growing their
initiatives to bring businesses into the classrooms.
c. Explore and support ways business can bring relevance to educational classes &
programs.
d. Collaborate with the Wright Technical Center (WTC), Buffalo, in developing and
promoting career training programs and courses.
e. Continue to engage stakeholders to raise awareness of labor force demographics
and potential solutions such as youth career building initiatives.
f. Support residential land development and workforce housing as it correlates to
workforce development.
3. Recognize the contributions of Monticello manufacturers through organization of
and participation in industry -related events.
a. Promote and organize Manufacturer's Week 2023 events.
b. Organize and hold a Manufacturer's Week Appreciation Breakfast.
Objective: Industrial Growth and Tax Base Expansion Through Recruitment and Retention
1. Support the recruitment of business which further the goals and objectives for the
community as guided by the Comprehensive Plan.
a. Participate in implementing the Integrated Marketing and Communications Plan
(IMCP).
b. Support exploration of development of an incubator -accelerator as way of
supporting start-up businesses and entrepreneurs into the community.
2. Continue to lead the City in moving forward key transportation projects which
support economic development.
a. Participate in the "Business Day at the Capitol" event(s) and lobby on behalf of
the Monticello community to help City staff bring attention to our local
transportation needs.
b. Support and collaborate in the creation of a needs -based transportation priority
statement for lobbying/support purposes.
c. Encourage and support key transportation projects which improve product delivery
for businesses, such as interchange, freeway, and bridge crossing projects.
d. Identify specific benefits of a 3rd interchange to businesses and/or community and
support policy encouraging future development of the interchange.
e. Monitor the CMRRPP (Central Mississippi River Regional Planning Partnership)
initiative and offer comments on various land and transportation system development
plans.
3. Identify, evaluate, and provide recommendations in an advisory capacity to the City
regarding general land use, industrial land supply and availability, tax base matters
and economic development.
a. Periodically evaluate current property inventory and uses for Industrial properties
with the objective of better marketing efforts.
b. Monitor industrial land availability with the following metrics:
1. Total acreage with developed infrastructure, zoned, and available to purchase
and the maximum acreage of a contiguous, buildable lot.
2. Total acreage with undeveloped infrastructure, zoned, and available to purchase.
Owner contact information.
3. Total acreage preserved in Land Use Plan for future development.
c. Monitor and support periodic review of accessibility to Interstate 94 and State
Highway 25 and utility capabilities.
d. Monitor and provide comments of the site selection process related to locating
future industrial -business park development.
e. Monitor the status of the Monticello Nuclear Generating Plant in relation to its
license renewal in 2030 and as it relates to potential NW Interchange (Orchard
Road) Land Use and Environmental Studies.
4. Support community quality of life initiatives which enhance Monticello's objectives
for high quality development across the land use spectrum, including residential,
commercial, industrial, and civic uses.
a. Support and encourage the development of the Bertram Chain of Lakes Regional
Park and recommend the development of a pathway connection to Monticello
Businesses.
b. Promote CentraCare Health Monticello to industrial businesses.
c. Develop a visioning worksheet to get IEDC members views on residential,
commercial, and industrial needs and challenges related to needed future planning
and ordinance changes.
d. Review and coordinate public and private actions with parks and trails.
e. Support review of childcare services barriers, opportunities, programs, and
collaborate, as needed, with partner entities in lobbying to enhance and support
efforts to bring economical childcare services into the community.
f. Support and enhance efforts to recruit a new restaurant and lodging facility into the
City.
5. Support and facilitate regional development plans and initiatives.
a. Support the implementation of the Regional 2022 CEDS (Comprehensive
Economic Development Strategy) Update Plan through strategy review, feedback,
and identification of local projects for federal funding support.
b. Monitor the CMRRPP (Central Mississippi River Regional Planning Partnership)
initiative and provide comments, as appropriate, on various stages of plan
development.
�i. Promote communications & engagement with lo businesses and nrosneaA
a. Create and host a Monticello business round table event which will offer businesses
a platform for discussion and information sharing about financial assistance
programs, development entitlement processes and labor training funding resources.
b. Facilitate "Industrial Round Tables" allowing sharing of information about
available industrial sites, development financial assistance programs, labor training
funding programs and entitlement review and approval processes.
c. Sponsor networking individually and in small groups for input.
EDA Agenda: 06/14/23
4A. Consideration of Authorizing Professional Services Contract with MSA Professional
Services in an amount up $26,400 to complete a Housing Needs and Demands Study
Update
Prepared by:
Meeting Date:
® Regular Agenda Item
Economic Development Manager
06/14/23
❑ Consent Agenda Item
Reviewed by:
Approved by:
Community Development Director,
City Administrator
Community Economic Development
Coordinator
ACTION REQUESTED
Motion to authorize a professional services contract with MSA Professional Services in the
amount of $21,200 to complete a Housing Needs and Demands Study Update.
Motion to authorize a professional services contract with MSA Professional Services in the
amount of $26,400 to accommodate the additional scope of services.
Motion of other.
PREVIOUS ACTION
At the May 10, 2023, EDA meeting, Commissioners directed to staff to dialogue with MSA
Professional Services regarding the possibility of getting a proposal and quote for the
completion of a Housing Study Update with new demand projections and recommendations in
various housing categories.
REFERENCE AND BACKGROUND
Following the May 10, 2023, EDA meeting, City staff had a discussion about the desired for the
Housing Update Study with MSA Professional Services, Madison, Wisconsin. As a result of that
discussion, MSA P -S's scope of work proposal, quote and contract is attached. The proposed
scope of work builds on the key elements of the City's existing housing study completed in mid-
summer of 2020 by MSA P -S. Specifically, the major work tasks include:
✓ Community and Regional Data Updates
✓ Rental Market Updates
✓ Ownership Market Updates
✓ Overall Housing Sector Factors Updates
✓ Local Market Factors Updates
EDA Agenda: 06/14/23
✓ Unit Demand by various categories w/ commentary about changes from the 2020
projections (includes interest rate and construction cost trends and impacts on single
family and multi -family housing construction)
Completing the study update will provide City policy makers and staff with data driven
indicators that will be useful in discussions and decision-making for housing proposals. A
notable study component relates to regional and national housing factors, including the recent
spike in mortgage interest rates and inflationary impact on construction cost and how they are
influencing other study components, including affordability in all housing sectors, single-family
housing starts and the demand for multi -family units.
The additional scope items, totaling $5,200 would provide information on other affordability
factors in the housing market. These include availability of townhome units, which are often a
first-time homebuyer's entry into the marketplace, City development fees compared to other
municipalities in the area, and the impact of the interest rates and construction cost on the
single-family development.
I. Budget Impact: The quote provided by MSA Professional Services is $21,200. The 2023 EDA
General Fund Budget has a line item for Professional Services in the amount of $31,700. Per
the proposal, the EDA has the option of several additional al -a -carte add-on work tasks. If
these three items are added, the Study Update cost would increase to $26,400. The Study
Update would use approximately 57.1 percent of the budget line item. Through March 31,
2023, a total of $2,127 had been expended in this line item. The EDA's budget, which
includes a Redevelopment line item for general redevelopment related activity, has
sufficient capacity to absorb the proposed project cost.
It should be noted that a new housing study was originally contemplated for calendar year
2024, not in 2023. A 2023 April City Council workshop review and discussion about housing
trends and proposals prompted the EDA to consider moving the study into CY 2023. This
would allow policy makers to gain a better understanding of the current market demand
and provide guidance and direction to developers.
II. Staff Workload Impact: The Community and Economic Development Coordinator,
Economic Development Manager and Community Development Director have been
involved in the work tasks related to completing a 2023 Housing Study Update. As noted in
the proposal, moving forward with the Study Update will require some staff time
commitment for several meetings as well as a presentation by the consultant at an EDA
meeting in August (as per the proposed schedule).
III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 + Plan is to
create a friendly and safe community which is inclusive and fosters a sense of belonging.
The City has adopted a strategy for housing which includes developing a range of housing
EDA Agenda: 06/14/23
choices and opportunities. As residents move through their career paths and family status,
their housing needs change. As an actively developing community, Monticello seeks to
provide opportunities for a full range of "life cycle" housing options allowing them to stay
and grow with our community. The 2020 Housing Study is already three years old. Some of
the projected demand figures have been exceeded well ahead of the presumed timeline.
This situation presents itself as a void of reliable information for decision making for the City
Council and the EDA. The proposed Housing Study Update will help answer questions about
current demand levels in various housing sectors and in the context of current financial
markets with the goal of informing policy, program, and development objectives.
STAFF RECOMMENDATION
Staff recommend authorizing the proposal and contract with MSA Professional Services in the
amount of $26,400. Completing the Housing Study Update now rather than in 2024 will guide
the City Council and EDA in decision steps related to concept housing development proposals
previewed by city policy makers and staff. In addition to an update of the previous information
based on recent construction and market changes, the optional scope items offer the
opportunity for additional context on factors influencing affordability of housing that will be
useful for decision-making.
SUPPORTING DATA
A. MSA Professional Services 2023 Housing Study Update Proposal and Contract
MSA
June 8, 2023
Jim Thares, Economic Development Manager
City of Monticello
505 Walnut Street
Monticello, MN 55362
Re: 2023 Housing Study Update
Dear Jim,
1702 Pankratz St.
Madison, WI 53704
P: (608) 242-7779
TF: (800) 446-0679
Thank you for the invitation to consider again housing market conditions in Monticello. As we've
discussed, the local market is lively. You have multiple large-scale multifamily developments approved
and interest from other developers for even more. Meanwhile, single family ownership housing continues
to lag. An updated study is desired to consider the impact of the recent and pending construction and
estimate the City's capacity for more units of all types. With this information the City can decide how best
to promote development opportunities and guide the speed of development and phasing at Monticello
Lakes.
Our proposal, in brief, is to update and augment the 2020 study with more current data, to understand
recent market dynamics and revise demand projections for the next 5 years. Our intent is to collect
critical data, including fresh interviews of local housing experts and then to update the majority of the
sections in the plan. The attached scope describes which sections we propose to update (and a few
which don't likely need an update at this time). Also included are a few optional tasks that you
requested. These are identified in parentheses in the scope and as specific add-on costs in the contract.
We estimate a cost of $21,200 for this update, plus any of the additional tasks.
Please contact me with any questions you may have about this proposal.
Sincerely,
MSA Professional Services, Inc.
F ��
Jason Valerius, AICP
Senior Team Leader
0valerius(a)msa-ps.com 1608-242-6629
Professional Services Agreement
MSA Project Number: 13731006
This AGREEMENT (Agreement) is made effective June 8, 2023 by and between
MSA PROFESSIONAL SERVICES, INC (MSA)
Address: 1702 Pankratz St., Madison, WI 53704
Phone: 608.242.6629
Representative: Jason Valerius Email: jvalerius@msa-ps.com
CITY OF MONTICELLO, MN
Address: 505 Walnut Street, Monticello, MN 5536
Phone: 763.271.3254
Representative: Jim Thares, Economic Development Manager
Email: Jim.Thares@ci.monticello.mn.us
Project Name: City of Monticello Housing Study Update
The scope of the work authorized is: See Attachment A: Scope of Services
The schedule to perform the work is: Approximate Start Date: June 15, 2023
Approximate Completion Date: August 13, 2023
The lump sum fee for the work is: $21,200
Additional services identified in Attachment A City Initials
Development Fees Comparative Review $2,500
Townhome Demand Evaluation $1,200
SF Construction Trends and Factors Review $1,500
Total
All services shall be performed in accordance with the General Terms and Conditions of
MSA, which is attached and made part of this Agreement. Any attachments or exhibits
referenced in this Agreement are made part of this Agreement. Payment for these
services will be on a lump sum basis.
Approval: Authorization to proceed is acknowledged by signatures of the parties to this
Agreement.
CITY OF MONTICELLO
Jim Thares
Economic Development Manager
Date:
MSA PROFES IONAL SERVICES, INC.
Ja on Valerius
Senior Team Leader
Date: June 8, 2023
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MSA PROFESSIONAL SERVICES, INC. (MSA)
GENERAL TERMS AND CONDITIONS OF SERVICES (PUBLIC)
1. Scope and Fee. The scope of Owner's Project (the "Project"), scope of MSA's services (the "Work"),
and quoted fees for those services are defined in Attachment A. The scope and fee constitute a good faith
estimate of the tasks and associated fees required to perform the services defined in Attachment A. This
agreement upon execution by both parties hereto, can be amended only by written instrument signed by both
parties. For those projects involving conceptual or process development service or involve renovation of an
existing building or structure, activities often cannot be fully defined during initial planning. As the Project
progresses, facts uncovered may reveal a change in direction which may alter the Work. MSA will promptly
inform the OWNER in writing of such situations so that changes in this agreement can be made as required.
2. Owner's Responsibilities.
(a) Prosect Scope and Budget
The OWNER shall define the scope and budget of the Project and, when applicable, periodically update the
Project budget, including that portion allocated for the cost of the Work. The Project budget shall include
contingencies for design, development, and, when required by the scope of the Project, construction of the
Project. The OWNER shall not significantly increase or decrease the overall Project scope or schedule, the
portion of the budget allocated for the cost of the Work, or contingencies included in the overall budget or a
portion of the budget, without the agreement of MSA to a corresponding change in the Project scope, quality,
schedule, and compensation of MSA.
(b) Designated Owner Representative
The OWNER shall identify a Designated Representative who shall be authorized to act on behalf of the OWNER
with respect to the Project. OWNER's Designated Representative shall render related decisions in a timely
manner so as to avoid unreasonable delay in the orderly and sequential progress of MSA's services. MSA shall
not be liable for any error or omission made by OWNER, OWNER's Designated Representative, or OWNER's
consultant.
(c) Tests, Inspections, and Reports
When required by the scope of the Project, the OWNER shall furnish tests, inspections, and reports required by
law or the Contract Documents, such as planning studies; preliminary designs; structural, mechanical, or
chemical tests; tests for air, water, or soil pollution; and tests for hazardous materials.
(d) Additional Consultants
MSA's consultants shall be identified in Attachment A. The OWNER shall furnish the services of other
consultants other than those designated in Attachment 1, including such legal, financial, accounting, and
insurance counseling services as may be required for the Project.
(e) OWNER Provided Services and Information
MSA shall be entitled to rely on the accuracy and completeness of services and information furnished by the
OWNER, Designated OWNER Representative, or Consultant. MSA shall use reasonable efforts to provide
prompt written notice to the OWNER if MSA becomes aware of any errors, omissions, or inconsistencies in such
services or information.
3. Billing. MSA will bill the OWNER monthly with net payment due upon receipt. Balances due past thirty
(30) days shall be subject to an interest charge at a rate of 12% per year from said thirtieth day. In addition,
MSA may, after giving seven days written notice, suspend service under any agreement until the OWNER has
paid in full all amounts due for services rendered and expenses incurred, including the interest charge on past
due invoices.
4. Costs and Schedules. Costs (including MSA's fees and reimbursable expenses) and schedule
commitments shall be subject to change for delays caused by the OWNER's failure to provide specified facilities
or information or for delays caused by unpredictable occurrences including, without limitation, fires, floods, riots,
strikes, unavailability of labor or materials, delays or defaults, by suppliers of materials or services, process
shutdowns, pandemics, acts of God or the public enemy, or acts of regulations of any governmental agency.
Temporary delays of services caused by any of the above which result in additional costs beyond those outlined
may require renegotiation of this agreement.
5. Access to Site. Owner shall furnish right -of -entry on the Project site for MSA and, if the site is not owned
by Owner, warrants that permission has been granted to make planned explorations pursuant to the scope of
services. MSA will take reasonable precautions to minimize damage to the site from use of equipment, but has
not included costs for restoration of damage that may result and shall not be responsible for such costs.
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6. Location of Utilities. Owner shall supply MSA with the location of all pre-existent utilities and MSA has
the right to reasonably rely on all Owner supplied information. In those instances where the scope of services
require MSA to locate any buried utilities, MSA shall use reasonable means to identify the location of buried
utilities in the areas of subsurface exploration and shall take reasonable precautions to avoid any damage to the
utilities noted. However, Owner agrees to indemnify and defend MSA in the event of damage or injury arising
from damage to or interference with subsurface structures or utilities which result from inaccuracies in information
of instructions which have been furnished to MSA by others.
7. Professional Representative. MSA intends to serve as the OWNER's professional representative for
those services as defined in this agreement, and to provide advice and consultation to the OWNER as a
professional. Any opinions of probable project costs, reviews and observations, and other recommendations
made by MSA for the OWNER are rendered on the basis of experience and qualifications and represents the
professional judgment of MSA. However, MSA cannot and does not warrant or represent that proposals, bid or
actual project or construction costs will not vary from the opinion of probable cost prepared by it.
8. Construction. When applicable to the scope of the Project, the OWNER shall contract with a licensed
and qualified Contractor for implementation of construction work utilizing a construction contract based on an
EJCDC construction contract and general conditions appropriate for the scope of the Project and for the delivery
method. In the construction contract, the OWNER shall use reasonable commercial efforts to require the
Contractor to (1) obtain Commercial General Liability Insurance with contractual liability coverage insuring the
obligation of the Contractor, and name the OWNER, MSA and its employees and consultants as additionally
insureds of that policy; (2) indemnify and hold harmless the OWNER, MSA and its employees and consultants
from and against any and all claims, damages, losses, and expenses ("Claims"), including but not limited to
reasonable attorney's fees and economic or consequential damages arising in whole or in part out of the
negligent act or omission of the contractor, and Subcontractor or anyone directly or indirectly employed by any
of them. This agreement shall not be construed as giving MSA, the responsibility or authority to direct or
supervise construction means, methods, techniques, sequence, or procedures of construction selected by the
contractors or subcontractors or the safety precautions and programs incident to the work, the same being the
sole and exclusive responsibility of the contractors or subcontractors.
9. Standard of Care. In conducting the services, MSA will apply present professional, engineering and/or
scientific judgment, which is known as the "standard of care". The standard of care is defined as that level of
skill and care ordinarily exercised by members of the same profession practicing at the same point in time and
in the same or similar locality under similar circumstances in performing the Services. The OWNER
acknowledges that "current professional standards" shall mean the standard for professional services, measured
as of the time those services are rendered, and not according to later standards, if such later standards purport
to impose a higher degree of care upon MSA.
MSA does not 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. Similarly, MSA will not accept those terms
and conditions offered by the OWNER in its purchase order, requisition, or notice of authorization to proceed,
except as set forth herein or expressly agreed to in writing. Written acknowledgement of receipt, or the actual
performance of services subsequent to receipt of such purchase order, requisition, or notice of authorization to
proceed is specifically deemed not to constitute acceptance of any terms or conditions contrary to those set forth
herein.
10. Municipal Advisor. MSA Professional Services, Inc. is not acting as a `Municipal Advisor' to the owner
pursuant to Section 15B of the Exchange Act. For financial advice related to the corresponding project, the client
is encouraged to discuss their finances with internal and/or external advisors and experts before making
decisions incurring debt and/or supporting those obligations. MSA desires to serve each client well by providing
the best information publicly available and is providing information as part of its engineering responsibilities to
inform client options. The information is not intended to provide financial advice or recommendations and is not
bound by the formal Municipal Advisor fiduciary duty.
11. Conduct Expectations. Owner and MSA understand their respective obligations to provide a safe,
respectful work environment for their employees. Both parties agree that harassment on the job (unwelcome
verbal, physical or other behavior that is related to sex, race, age, or protected class status) will not be tolerated
and will be addressed timely and in compliance with anti -harassment laws.
12. Electronic Documents and Transmittals. Owner and MSA agree to transmit and accept project
related correspondence, documents, text, data, drawings and the like in digital format in accordance with MSA's
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Electronic Data Transmittal policy. Each party is responsible for its own cybersecurity, and both parties waive
the right to pursue liability against the other for any damages that occur as a direct result of electronic data
sharing.
13. Building Information Modelling (BIM). For any projects, and not limited to building projects, utilizing
BIM, OWNER and MSA shall agree on the appropriate level of modelling required by the project, as well as the
degree to which the BIM files may be made available to any party using the Electronic Document Transmittal
provisions of section 10 of this Agreement.
14. Construction Site Visits. If the scope of services includes services during the Construction Phase,
MSA shall make visits to the site as specified in Attachment A— Scope of Services. MSA shall not, during such
visits or as a result of such observations of Contractor's work in progress, supervise, direct or have control over
Contractor's work nor shall MSA have authority over or responsibility for the means, methods, techniques,
sequences or procedures of construction selected by Contractor, for safety precautions and programs incident
to the work of Contractor or for any failure of Contractor to comply with laws, rules, regulations, ordinances,
codes or orders applicable to Contractor's furnishing and performing the work. Accordingly, MSA neither
guarantees the performance of any Contractor nor assumes responsibility for any Contractor's failure to furnish
and perform its work in accordance with the Contract Documents.
15. Termination. This Agreement shall commence upon execution and shall remain in effect until terminated
by either party, at such party's discretion, on not less than thirty (30) days' advance written notice. The effective
date of the termination is the thirtieth day after the non -terminating party's receipt of the notice of termination. If
MSA terminates the Agreement, the OWNER may, at its option, extend the terms of this Agreement to the extent
necessary for MSA to complete any services that were ordered prior to the effective date of termination. If
OWNER terminates this Agreement, OWNER shall pay MSA for all services performed prior to MSA's receipt of
the notice of termination and for all work performed and/or expenses incurred by MSA in terminating Services
begun after MSA's receipt of the termination notice. Termination hereunder shall operate to discharge only those
obligations which are executory by either party on and after the effective date of termination. These General
Terms and Conditions shall survive the completion of the services performed hereunder or the Termination of
this Agreement for any cause.
This agreement cannot be changed or terminated orally. No waiver of compliance with any provision or
condition hereof should be effective unless agreed in writing and duly executed by the parties hereto.
16. Betterment. If, due to MSA's error, any required or necessary item or component of the Project is omitted
from the construction documents, MSA's liability shall be limited to the reasonable costs of correction of the
construction, less what OWNER'S cost of including the omitted item or component in the original construction
would have been had the item or component not been omitted. It is intended by this provision that MSA will not
be responsible for any cost or expense that provides betterment, upgrade, or enhancement of the Project.
17. Hazardous Substances. OWNER acknowledges and agrees that MSA has had no role in identifying,
generating, treating, storing, or disposing of hazardous substances or materials which may be present at the
Project site, and MSA has not benefited from the processes that produced such hazardous substances or
materials. Any hazardous substances or materials encountered by or associated with Services provided by MSA
on the Project shall at no time be or become the property of MSA. MSA shall not be deemed to possess or
control any hazardous substance or material at any time; arrangements for the treatment, storage, transport, or
disposal of any hazardous substances or materials, which shall be made by MSA, are made solely and
exclusively on OWNER's behalf for OWNER's benefit and at OWNER's direction. Nothing contained within this
Agreement shall be construed or interpreted as requiring MSA to assume the status of a generator, storer,
treater, or disposal facility as defined in any federal, state, or local statute, regulation, or rule governing treatment,
storage, transport, and/or disposal of hazardous substances or materials.
All samples of hazardous substances, materials or contaminants are the property and responsibility of
OWNER and shall be returned to OWNER at the end of a project for proper disposal. Alternate arrangements
to ship such samples directly to a licensed disposal facility may be made at OWNER's request and expense and
subject to this subparagraph.
18. Insurance. MSA will maintain insurance coverage for: Worker's Compensation, General Liability, and
Professional Liability. MSA will provide information as to specific limits upon written request. If the OWNER
requires coverages or limits in addition to those in effect as of the date of the agreement, premiums for additional
insurance shall be paid by the OWNER. The liability of MSA to the OWNER for any indemnity commitments, or
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for any damages arising in any way out of performance of this contract is limited to such insurance coverages
and amount which MSA has in effect.
19. Reuse of Documents. Reuse of any documents and/or services pertaining to this Project by the
OWNER or extensions of this Project or on any other project shall be at the OWNER's sole risk. The OWNER
agrees to defend, indemnify, and hold harmless MSA for all claims, damages, and expenses including attorneys'
fees and costs arising out of such reuse of the documents and/or services by the OWNER or by others acting
through the OWNER.
20. Indemnification. To the fullest extent permitted by law, MSA shall indemnify and hold harmless,
OWNER, and OWNER's officers, directors, members, partners, consultants, and employees (hereinafter
"OWNER") from reasonable claims, costs, losses, and damages arising out of or relating to the PROJECT,
provided that any such claim, cost, loss, or damage is attributable to bodily injury, sickness, disease, or death,
or to injury to or destruction of tangible property (other than the Work itself) including the loss of use resulting
therefrom but only to the extent caused by any negligent act or omission of MSA or MSA's officers, directors,
members, partners, employees, or Consultants (hereinafter "MSA"). In no event shall this indemnity agreement
apply to claims between the OWNER and MSA. This indemnity agreement applies solely to claims of third
parties. Furthermore, in no event shall this indemnity agreement apply to claims that MSA is responsible for
attorneys' fees. This agreement does not give rise to any duty on the part of MSA to defend the OWNER on any
claim arising under this agreement.
To the fullest extent permitted by law, OWNER shall indemnify and hold harmless, MSA, and MSA's officers,
directors, members, partners, consultants, and employees (hereinafter "MSA") from reasonable claims, costs,
losses, and damages arising out of or relating to the PROJECT, provided that any such claim, cost, loss, or
damage is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible
property (other than the Work itself) including the loss of use resulting therefrom but only to the extent caused
by any negligent act or omission of the OWNER or the OWNER's officers, directors, members, partners,
employees, or Consultants (hereinafter "OWNER"). In no event shall this indemnity agreement apply to claims
between MSA and the OWNER. This indemnity agreement applies solely to claims of third parties. Furthermore,
in no event shall this indemnity agreement apply to claims that the OWNER is responsible for attorneys' fees.
This agreement does not give rise to any duty on the part of the OWNER to defend MSA on any claim arising
under this agreement.
To the fullest extent permitted by law, MSA's total liability to OWNER and anyone claiming by, through, or
under OWNER for any cost, loss or damages caused in part or by the negligence of MSA and in part by the
negligence of OWNER or any other negligent entity or individual, shall not exceed the percentage share that
MSA's negligence bears to the total negligence of OWNER, MSA, and all other negligent entities and individuals.
21. Accrual of Claims. To the fullest extent permitted by Laws and Regulations, all causes of action arising
under this Agreement will be deemed to have accrued, and all statutory periods of limitation will commence, no
later than the date of Substantial Completion; or, if Engineer's services do not include Construction Phase
services, or the Project is not completed, then no later than the date of Owner's last payment to Engineer.
22. Dispute Resolution. OWNER and MSA desire to resolve any disputes or areas of disagreement
involving the subject matter of this Agreement by a mechanism that facilitates resolution of disputes by
negotiation rather than by litigation. OWNER and MSA also acknowledge that issues and problems may arise
after execution of this Agreement which were not anticipated or are not resolved by specific provisions in this
Agreement. Accordingly, both OWNER and MSA will endeavor to settle all controversies, claims, counterclaims,
disputes, and other matters in accordance with the Construction Industry Mediation Rules of the American
Arbitration Association currently in effect, unless OWNER and MSA mutually agree otherwise. Demand for
mediation shall be filed in writing with the other party to this Agreement. A demand for mediation shall be made
within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the
demand for mediation be made after the date when institution of legal or equitable proceedings based on such
claim, dispute or other matter in question would be barred by the applicable statute of limitations. Neither
demand for mediation nor any term of this Dispute Resolution clause shall prevent the filing of a legal action
where failing to do so may bar the action because of the applicable statute of limitations. If despite the good
faith efforts of OWNER and MSA any controversy, claim, counterclaim, dispute, or other matter is not resolved
through negotiation or mediation, OWNER and MSA agree and consent that such matter may be resolved
through legal action in the court having jurisdiction as specified in section 29 of this Agreement.
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23. Exclusion of Special, Indirect, Consequential and Liquidated Damages. MSA shall not be liable, in
contract or tort or otherwise, for any special, indirect, consequential, or liquidated damages including specifically,
but without limitation, loss of profit or revenue, loss of capital, delay damages, loss of goodwill, claim of third
parties, or similar damages arising out of or connected in any way to the Project or this contract.
24. Limitation of Liability. Neither MSA, its Consultants (if any), nor their employees shall be jointly,
severally, or individually liable to the OWNER in excess of the amount of the insurance proceeds available.
25. Successors and Assigns. The successors, executors, administrators, and legal representatives of
Owner and Engineer are hereby bound to the other party to this Agreement and to the successors, executors,
administrators and legal representatives (and said assigns) of such other party, in respect of all covenants,
agreements, and obligations of this Agreement. Neither party may assign, sublet, or transfer any rights under
or interest (including, but without limitation, claims arising out of this Agreement or money that is due or may
become due) in this Agreement without the written consent of the other party, which shall not be unreasonable
withheld, except to the extent that any assignment, subletting, or transfer is mandated by law.
26. Notices. Any notice required under this Agreement will be in writing, and delivered: in person (by
commercial courier or otherwise); by registered or certified mail; or by e-mail to the recipient, with the words
"Formal Notice" or similar in the e-mail's subject line. All such notices are effective upon the date of receipt.
27. Survival. Subject to applicable Laws and Regulations, all express representations, waivers,
indemnifications, and limitations of liability included in this Agreement will survive its completion or termination
for any reason.
28. Severability. Any provision or part of the Agreement held to be void or unenforceable under any Laws
or Regulations will be deemed stricken, and all remaining provisions will continue to be valid and binding upon
Owner and MSA.
29. No Waiver. A party's non -enforcement of any provision will not constitute a waiver of that provision,
nor will it affect the enforceability of that provision or of the remainder of this Agreement.
30. State Law. This agreement shall be construed and interpreted in accordance with the laws of the State
of Wisconsin.
31. Jurisdiction. OWNER hereby irrevocably submits to the jurisdiction of the state courts of the State of
Wisconsin for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement.
OWNER further consents that the venue for any legal proceedings related to this Agreement shall be Sauk
County, Wisconsin.
32. Understanding. This agreement contains the entire understanding between the parties on the subject
matter hereof and no representations. Inducements, promises or agreements not embodied herein (unless
agreed in writing duly executed) shall be of any force or effect, and this agreement supersedes any other prior
understanding entered into between the parties on the subject matter hereto.
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ATTACHMENT A:
SCOPE OF SERVICES
HOUSING STUDY UPDATE TASKS
The following tasks will be included in the 2023 update to the 2020 Housing Needs and Market Demand Study.
STAKEHOLDER ENGAGEMENT
Interviews — we will conduct interviews with up to 6 individuals or small groups to understand current conditions and
trends in the local market.
• Developers
• Property managers
• Other City staff or officials
Staff working meetings — 3 meetings with Economic Development Staff (remote)
• A kickoff discussion about data, interviews, and schedule details
• A preliminary review of findings (tentatively the week of July 24)
• A review of the final document (tentatively the week of August 28)
Economic Development Authority — 1 results presentation (remote)
Review of findings and recommendations (tentatively August 9)
CONTENT UPDATES
We will be updating and augmenting the 2020 Study document as follows:
ABOUT
• Study Process — update as appropriate to add the 2023 activities
• Community Basics — NO UPDATE
• Market Activity Overview (NEW) — a concise narrative of housing development activity (proposal, approvals,
constructed units) from January 2020 to June 2023
• Population, Households, Age Cohorts — update to most current available ACS data
• Population and Household Projections — update to incorporate and adjust for the most current available ACS
data
• Age Cohort Projections, Income Trends, Employment Indicators, Local Employment, Occupational
affordability — add a note to indicate NO UPDATES
• Commuting Trends — update to incorporate the most current available ACS data
• Regional Growth — update to incorporate the most current available ACS data
• Affordable Housing — update income categories with current HUD data
• Workforce Housing — update affordability limits tables
RENTAL MARKET
• Affordability Limits — update with current HUD data
• Tenure — update to incorporate the most current available ACS data
• Rental Housing Stress — update to incorporate the most current available ACS data
• Rental Unit Consumption — update with most recent available HUD data
• Rental Unit Types — update to incorporate the most current available ACS data
• Affordability Trends — update to incorporate the most current available ACS data
• Rental Housing Cost — update to incorporate the most current available ACS data
• Vacancy Rate — update to incorporate the most current available ACS data
• Rental Housing Size — update to incorporate the most current available ACS data
• Rental Units and Buildings — update to incorporate recent construction
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• Multi -Unit Rental Age — update to incorporate the most current available ACS data
• Examples — update to incorporate the most current available ACS data
OWNERSHIP MARKET
• Affordability Limits — update with current HUD data
• Tenure - update to incorporate the most current available ACS data
• Owner Housing Stress - update to incorporate the most current available ACS data
• Owner Unit Consumption — update with most recent available HUD data
• Spatial Affordability — update with current assessment data
UPDATES
• Affordability Trends — update with current MLS data
• Entry Level Affordability — update with current MLS data
• House Availability — update with current MLS data
• House Sales — update with current MLS data
• Mortgage Status — add a note to indicate NO UPDATES
• Ownership Unit Types — update to incorporate the most current available ACS data
• Ownership Housing Size — add a note to indicate NO UPDATES
OTHER MARKET SECTORS
• Homelessness — add a note to indicate NO UPDATES
• Aging Populations — update to incorporate the most current available ACS data
• Disability, Accessibility — add a note to indicate NO UPDATES
LOCAL IMPACTS
• New Construction — update to incorporate current City data
• New Unit Affordability — update to incorporate current City data
• Valuation, Improvement Value Ratio, Available Lots, Residential Platted Lots — add a note to indicate NO
UPDATES
• Development Fees, (optional service — review of development fees compared to nearby communities)
• Zoning — add a note to indicate NO UPDATES
UNIT DEMAND
• Owner Demand estimates — update, with commentary about changes from the projections made in 2020
(additional service - evaluation of townhome demand) (additional service — interest rate and construction
cost trends and impacts on SF construction)
• Ownership findings and recommendations — update and draw attention to 2023 findings
• Rental Demand estimates — update, with consideration of the pending approved units, with commentary
about changes from the projections made in 2020
Rental findings and recommendations — update and draw attention to 2023 findings
Senior Unit Demand — update, plus focus on demand for continuum of care, with commentary about
changes from the projections made in 2020
ROLE OF CITY STAFF
MSA asks the following of Monticello City staff during this process:
• Help identify and recruit interview participants and provide contact information for each (email and phone).
• Assist with promotion and notifications for the Zoom public meeting arrangements.
• Assist in data collection including MLS reports, county and municipal data, etc.
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• Review and feedback on draft survey
• Review of draft report and recommendations.
We value local perspective, knowledge, and leadership, and we see staff as critical stakeholders. Working knowledge of
current conditions and other stakeholder needs is your daily work — and we see your input as vital to project success. As
such, we are open to continual dialogue and project refinement in order to ensure the highest quality and most effective
plan possible.
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EDA Agenda: 06/14/23
4B. Consideration of Authorizing Professional Services Contract with Hospitality
Consulting Services, LLC (Stephen Sherf) to complete a 2023 Hotel -Hospitality Study
Update
Prepared by:
Meeting Date:
® Regular Agenda Item
Economic Development Manager
06/14/23
❑ Consent Agenda Item
Reviewed by:
Approved by:
Community Development Director,
City Administrator
Community Economic Development
Coordinator
ACTION REQUESTED
Motion to authorize a professional services contract with MSA Professional Services Stephen
Sherf, Hospitality Consulting Services, LLC to complete a Hotel -Hospitality Study Update.
Motion of other.
REFERENCE AND BACKGROUND
The EDA is asked to consider entering into a contract with Hospitality Consulting Group, LLC
(Stephen Sherf) to complete a 2023 Hotel and Hospitality Study Update. During the regular May
10, 2023, meeting, members discussed the value of having a Hotel -Hospitality Study Update
completed. The consensus of thought among the members was that with a recent spate of
hotel development inquiries as noted by staff, it may be helpful to understand the market
demands and influencing factors. The information in the Study would also allow the City Council
and EDA to have an early sense of the potential community economic impacts and further
gauge the cost -benefits in the event a developer seeks fee waivers, concessions, or some other
form of financial assistance.
The study would analyze several potential hotel development sites in the City of Monticello and
illustrate the performance metrics that may be expected if hotels were located at these sites.
These sites include a parcel of land located north of 1-94 near Runnings, a land tract along the
east entry gateway into Monticello adjacent to 1-94 as well as several parcels of land near the
current Best Western Hotel.
Completing the Study Update will provide City policy makers and staff with data driven indicators
that will be useful in discussions and decision steps if one or more hotel development proposals
are submitted to the City in the next 12 to 18 months. It should be noted that due to Mr. Sherf's
schedule, he was not able submit his proposal on Friday (06-09-23). He indicated that he could
submit the proposal to staff early in the week of June 12, 2023.
EDA Agenda: 06/14/23
I. Budget Impact: The cost of the 2020 Hotel -Hospitality Study (an update of the 2015 Study)
was $5,550. This figure is about 39 percent more than the 2015 Study ($4,000). A 2023
Study Update by Hospitality Consulting Group, LLC may carry a price tag with a similar
percentage increase over the 2020 Study. The 2023 EDA General Fund Budget has a line
item for Professional Services in the amount of $31,700. Presently, the EDA is also
considering other potential expenditures that may draw from that line item. This may
require the use of dollars in other available line items in the EDA's 2023 General Fund
budget. Some of the other code lines may have a smaller amount of expenses allocated to
them and thus offer availability to cover much of the proposed Study Update cost. Staff will
reconcile the specific budget lines with expenditures and monitor the entire 2023 EDA
General Fund Budget to avoid tapping into un -restricted reserve funds in the EDA General
Fund.
II. Staff Workload Impact: The Community and Economic Development Coordinator,
Economic Development Manager and Community Development Director have been
involved in the work tasks related to completing a 2023 Hotel -Hospitality Study Update.
The in-house staff time commitment to complete the Study Update is modest. Staff time
involves discussions with the consultant regarding the desired scope of work tasks and the
optimal timeline. Additional time to this effort involves report preparation and EDA meeting
presentation. No other staff are required to complete the work in this effort.
III. Comprehensive Plan Impact: Completing a Hotel -Hospitality Study Update fits with the
vision adopted as part of the Monticello 2040 + Plan as expressed in the following Value
Statement "A diversified and strong local economy competitive at regional, state and
national levels." The Monti 2040 Plan's Economic Development chapter includes numerous
statements aligning with pro -active support for business expansion and ensuring a local
economic environment with outcomes of business retention, reinvestment, and tax base
growth. The proposed Hotel -Hospitality Study Update will help answer questions about
current demand and further identify promising sites for successful hotel proposals with the
goal of informing policy, program, and development objectives.
STAFF RECOMMENDATION
Staff recommend the EDA authorize entering into a professional services contract for a 2023
Hotel -Hospitality Study Update based on the proposed scope of work and contract submitted by
Hospitality Consulting Group, LLC. The City has seen recent changes in commercial,
residential and recreational amenities development which may cause changes in the demand for
hotel and hospitality facilities. Updated data and findings may provide helpful information
to prospective developers as well as guide policy makers and staff in discussions related
to potential hotel development efforts.
EDA Agenda: 06/14/23
SUPPORTING DATA
Hospitality Consulting Services, LLC Study Update Proposal and Contract — Note:
Proposal and Contract to Be Provided
Hospitality
CONSULTING GROUP
June 12, 2023
Jim Thares
Economic Development Manager
City of Monticello
505 Walnut Street
Monticello, MN 55362
Dear Mr. Thares:
Hospitality Consulting Group is pleased to present the following proposal to update
the hotel market study for Monticello, Minnesota that we conducted in August 2015
and partially updated in May 2020 before the study was halted due to the disruption
that Covid was having on the hotel industry. We understand that the City is interested
in re-examining the economic feasibility of a new hotel to be located within the
community and that four potential sites have been identified. The purpose of this study
will be to re-evaluate the market potential that exists for a new hotel and, if market
justified, identify the type and quality level of hotel that will best meet the lodging
demand and prepare operating and financial projections for the recommended hotel
concept. This letter presents our understanding of the assignment, the services which
we propose to provide, the timing and fees required and the conditions and limitations
under which we would work.
BACKGROUND AND UNDERSTANDING
We understand that the City of Monticello is interested in encouraging the
development of a new hotel. Accordingly, the City is interested in determining
whether a new lodging facility can be market justified.
Based on its findings from the study performed in 2020, the Hospitality Consulting
Group concluded that a new upper midscale hotel would have the greatest
possibility for economic success. Key findings of the study included:
1. The Monticello lodging market experienced a number of capacity nights in
the summer when tourist traffic on I-94 peaked, during certain community
events, and when maintenance crews were working at the Xcel Energy power
plant; and
5315 Eureka Road
Excelsior, MN 55331
Phone (612) 867-1649 hcgroup2@gmail.com
Mr. Jim Thares
Page 2
2. Upscale demand was leaving the market in favor of higher quality hotels in
Albertville and Maple Grove.
SCOPE OF SERVICES
The scope of services that we propose to update our evaluation of the hotel
development potential in Monticello is detailed below:
- Meet with you and other city officials to obtain information on recent and
proposed developments that may have an impact on lodging demand;
- Obtain information regarding the future plans for changes at the Xcel power
plants that may impact area lodging demand;
- Update current economic and demographic data pertaining to the local and
regional market to evaluate the present economic climate and to estimate
future growth potential, particularly as it relates to lodging demand;
- Obtain current data regarding the performance of the local hotel market and re-
interview several of the local employers who utilize lodging accommodations in
order to quantify the current overall demand for hotel rooms in the market
area and demand that is deterred from the market;
- Inspect the existing hotels in Monticello and evaluate them with respect to their
age, facilities and amenities, rate structure and their relative competitiveness;
- Identify other proposed hotel developments in the area and assess their
probability of completion and the degree to which they would compete with a
new hotel in Monticello;
- Identify the type and quality of hotel that would be most successful, given the
nature of Monticello's lodging demand and the existing hotel supply;
- Prepare estimates of future lodging demand and likely market penetration for
the recommended hotel, from which utilization (occupancy and average rate)
will be prepared for their first five years of operation;
- Comment on the suitability of the four potential hotel sites that have been
identified;
5315 Eureka Road
Excelsior, MN 55331
Phone (612) 867-1649 hcgroup2@gmail.com
Mr. Jim Thares
Page 3
Prepare estimates of room revenue, other revenue, and operating expenses
for the recommended hotel project to the level of cash flow available for debt
service, for their first five years of operations; and
- Based on estimated hotel development costs, prepare a feasibility analysis that
evaluates the ability of the recommended hotel to meet its debt service
obligations under likely financing assumptions.
At the conclusion of the market study we will review our findings, conclusions and
recommendations with you.
Final Report
We will prepare a final written report that will contain our findings, conclusions, hotel
facility description and financial projections, as well as the underlying data and
documentation supporting the analysis. The report will contain sufficient information
and analysis to assist potential developers in determining their level of interest in
pursuing a hotel development. The report will be provided in draft form for your
review and comment, prior to finalization.
ESTIMATED FEES AND TIME FRAME
Based on the scope of the work outlined, the fee required for this engagement will be
$6,000. This fee includes the cost or purchasing hotel data and all other expenses
associated with the assignment. Our fee includes three bound copies of the final report
along with an electronic copy. If additional bound copies are requested, we will
provide them to you at our reproduction cost.
Our fees for this engagement will not exceed $6,000 unless the scope of our work is
significantly expanded. If additional work in excess of the scope described above is
requested, we will discuss the matter with you so that a mutually acceptable revision
may be made. Of course you may terminate this engagement at any time by so
informing us, in which case you would only be responsible for the fees and expenses
incurred to that point.
The remaining $6,000 fee will be due upon receipt of the draft report and must be paid
prior to release of the final report. If the project is halted at any time, we will refund
any unused portion of the retainer received.
We anticipate this assignment will take four weeks to complete.
5315 Eureka Road
Excelsior, MN 55331
Phone (612) 867-1649 hcgroup2@gmail.com
Mr. Jim Thares
Page 4
TERMS AND CONDITIONS
Our report will be based on estimates, assumptions and other information developed
from our research of the market, knowledge of the industry and meetings with City
officials. The sources of information and bases of our estimates and assumptions will
be stated in the report. The terms of this engagement are such that we will have no
obligation to revise the report or the projected operating results to reflect events or
conditions that occur subsequent to the completion of our field work in the market.
However, we will be available to discuss the necessity for future revision because of
changes in the economic or market factors affecting the proposed project.
Some assumptions inevitably will not materialize, and unanticipated events and
circumstances may occur; therefore, actual results achieved during the periods
covered by our prospective analyses will vary from those described in our report, and
the variations may be material. Our report will contain a statement to this effect.
Further, we will not be responsible for future marketing efforts and other management
actions upon which actual results will depend.
Our report is intended for the information of the City of Monticello and may be
provided to interested hotel developers. It may also be used in its entirety in support
of financing efforts for a specific hotel project in the community. However, neither the
report nor its contents may be referred to or quoted in any registration statement,
prospectus, private placement memorandum, appraisal or other investment document
without our prior review and written consent. It is agreed that the liability of
Hospitality Consulting Group and its employees is limited to the amount of fee paid
as liquidated damages.
ACCEPTANCE PROCEDURE
If this proposal meets with your approval, please return a signed copy of this
engagement letter along with a retainer check as authorization to proceed with the
engagement.
5315 Eureka Road
Excelsior, MN 55331
Phone (612) 867-1649 hcgroup2@gmail.com
Mr. Jim Thares
Page 5
If you have any questions or would like to discuss this proposal further, please feel free
to call. We look forward to working with you on this project.
Sincerely,
HOSPITALITY CONSULTIING GROUP
Stephen W. Sherf
President
ACCEPTED BY:
TITLE:
DATE:
5315 Eureka Road
Excelsior, MN 55331
Phone (612) 867-1649 hcgroup2@gmail.com
Mr. Jim Thares
Page 6
Profile
Stephen Sherf - President, Hospitality Consulting Group
Stephen Sherf has over 30 years of operational and consulting experience in the hospitality
industry. He spent 15 years with a large national public accounting firm, where he was the
partner -in -charge of the hospitality consulting division for the Upper Midwest. He also
started a gaming consulting company where he worked for 15 years, before founding the
Hospitality Consulting Group in 2000.
Mr. Sherf has an extensive background in hospitality consulting that encompasses market
studies, valuations, appraisals, acquisitions and sales. He has performed market studies and
other advisory services for over 200 hotel projects located mainly throughout the Midwest,
for clients that include developers, lenders, hotel companies, and municipalities.
Prior operating positions held during Mr. Sherf s career include restaurant manager,
auditor, Vice President of Development for a hotel company, and Treasurer for a gaming
company where he oversaw the operations of three Colorado casinos.
Mr. Sherf is known for his hands-on involvement and realistic conclusions. Where
appropriate, development recommendations are backed by an economic feasibility analysis
and a sensitivity analysis to assess risk.
He has provided expert witness testimony relating to the valuation of hotels and
restaurants and business interruption claims. He has taught continuing education seminars
and spoken at gaming, investment, and state appraisal conferences. He has been a guest
lecturer at the University of Minnesota Graduate School of Business and Stout University. He
is frequently quoted in local newspapers and business magazines.
Mr. Sherf received an undergraduate degree in economics and an MBA in finance from
Cornell University. He has held a Minnesota real estate license and has completed several
American Appraisal Institute courses. He is a Certified Public Accountant (inactive), has
participated in the Minnesota Lodging Association, served on the planning commission for
the City of Minnetrista, and has held a Colorado gaming license.
5315 Eureka Road
Excelsior, MN 55331
Phone (612) 867-1649 hcgroup2@gmail.com
EDA Agenda: 06/14/23
5A. Consideration of Economic Development Managers Report
Prepared by:
Meeting Date:
® Regular Agenda Item
Economic Development Manager
06/14/23
❑ Consent Agenda Item
Reviewed by:
Approved by:
Community Development Director,
City Administrator
Community Economic Development
Coordinator
ACTION REQUESTED
No Motion — Informational Update Only.
REFERENCE AND BACKGROUND
1. Volunteer Recognition Picnic Update:
The 2023 Volunteer Recognition Picnic will be held on June 22, 2023, from 6:00 p.m. to 7:30
p.m. at Ellison Park Log Shelter. EDA members are encouraged to attend the picnic and meet
some of the other volunteers serving on the Park and Recreation Committee, Planning
Commission, etc. Please see attached flyer, exhibit a.
2. 2023 EDAM Summer Conference Update:
City staff, Jim Thares, and Hayden Stensgard, have both registered for the 2023 EDA Summer
Conference in Rochester, MN. The EDAM Summer Conference has often been held in Duluth or
near Brainerd, MN. This is a first time that Rochester is hosting the Conference in many, many
years. It will be interesting to learn how Rochester and the DMC (Destination Medical Center)
EDA and leadership teams are collaborating on economic development activities and proposals.
The total cost for the Conference registration, lodging and travel (milage reimbursement) is
about $1,750. Per the City purchasing policies, no prior authorization is required as this does
not involve out-of-state travel. Staff will share the materials and information from the
Conference at a future EDA meeting. The dates of the Conference are June 28, 29 and 30, 2023.
The Conference Agenda is attached as exhibit b.
3. Projects Update:
Various active development projects are summarized herein. Please see exhibit c.
EDA Agenda: 06/14/23
4. Prospects List Update:
The Prospect List is updated and reflects call -inquiries activity through May 31, 2023. Please see
exhibit d.
S. Cedar Fair Site (owned by EDA) Update:
Staff have had in-house discussions involving the City Public Works Department regarding the
clean-up of the 1.36 -acre (59,242 square feet) parcel along Broadway Street East. As a result of
those discussions, an initial debris removal effort of loose pavement chucks, garbage -debris
was completed in the last week or May 2023. The parcel has a small clump of shrub trees
surrounded by a wire fence on the east edge of the property which also has a small amount of
debris in it. That does not appear to have been cleaned up perhaps because it is difficult to
access with the fence in place. The EDA may want to further discuss and direct staff as to the
next immediate steps, if any, for this parcel. This site is very visible and highly marketable in its
current state. In the future, staff would suggest that the EDA discuss and provide guidance
regarding the site's most desired future development and use and timeframe. See photos in
exhibit e.
6. Broadway Street Improvements Project Update:
On May 22, 2023, the City Council authorized moving forward with the downtown roadway
improvements including streets near Block 52. The link from the May 22, 2023 City Council
Report is shown below:
https://www.ci.monticeIIo.mn.us/Agenda Center/ViewFile/Item/675?fileID=9025
volunteer recognition
0 NI
F) 11:7, r
As a BIG THANK YOU...
City of Monticello volunteers and their
families are invited to join us for a picnic at
Ellison Park Log Shelter!
Rain or Shine
(In case of rain the picnic will be moved indoors to the Community Center)
Please RSVP with number attending to
HR@ci.monticello.mn.us by June 18th.
AMi�&o
o
EDAM Summer Conference
Event Schedule
Wed, Jun 28, 2023
2:00 PM Walking Tours
Q 2:00 PM - 4:00 PM, Jun 28
Join us for walking tours of Rochester development led by the Destination Medical Center team. Tours details
coming soon.
4:00 PM Lodging check-in at hotels
Cli 4:00 PM - 11:00 PM, Jun 28
i
Registration
O 4:00 PM - 8:00 PM, Jun 28
4:30 PM Emerging Professionals, New Members, Mentorship & First -Time Attendee Meet -
up
0 4:30 PM - 5:00 PM, Jun 28
i�aia:tel'; ; t r
Attention emerging professionals, new members, mentorship participants and first-time conference attendees!
Join us for a casual and informative happy hour designed to connect, mentor, and empower. Meet industry
leaders, gain valuable insights, and network with like-minded peers. Don't miss this chance to enhance your
conference experience and kickstart your professional journey.
i
i
5:00 PM President's Welcome Reception
0 5:00 PM - 8:00 PM, Jun 28
.a I.f filT*�
Thu, Jun 29, 2023
i
6:45 AM 5k Fun Run
O 6:45 AM - 7:45 AM, Jun 29
I
i
7:15 AM Breakfast
0 7:15 AM - 8:15 AM, Jun 29
Registration
Ce' 7:15 AM - 4:30 PM, Jun 29
8:15 AM Welcome by EDAM President
O 8:15 AM - 8:30 AM, Jun 29
i
8:30 AM Advancing Diversity, Equity & Inclusion Through Partnerships
0 8:30 AM - 9:30 AM, Jun 29
1.0 AICP credit
In 2021 the City of Rochester was awarded a $1M grant to put a plan in place to help women of color develop
well -paying, viable careers in the built environment. The plan involves multiple components — supporting
construction contractors to create inclusive environments where people from all backgrounds can thrive and
shine, as well as working with BIPOC women to develop skills, qualifications, and experience.
Join us for a panel discussion facilitated by Kraus -Anderson Constriction Company and featuring stakeholder
partners from the City of Rochester, Destination Medical Center (DMC) and the construction industry as we talk
about the award, the vision, the challenges and the results — and how you can help bring back benchmarks and
key ]earnings to your organization to make sustainable change.
1* Speakers
Julie Brock
Workforce Development, Inc.
Now
Chao Mwatela
Diversity, Equity & Inclusion Director
City of Rochester
Wafa Elkhalifa
Equitable Development Coordinator
Destination Medical Center
Laurie Trousil
Director of Inclusion and Diversity
Kraus -Anderson
Jinny Rietmann
Executive Director
Workforce Development, Inc.
Utilizing Resourcetainment to Retain Workers and Encourage Economic
Development
O 8:30 AM - 9:30 AM, Jun 29
1.0 AICP credit
Learn how to utilize your county's lakes, rivers, and streams to create "resourcetainment" events that bring about
economic development. The session will highlight a case study from multiple counties where people kayaked and
canoed the Mississippi river and then participated in a social hour, with the goal of promoting local economic
development.
'* Speaker
Y.
Tim Terrill
Executive Director
Mississippi Headwaters Board
9:30 AM Break with Exhibitors
G 9:30 AM - 9:45 AM, Jun 29
9:45 AM ]Elevate Business: supporting Business Growth 'Through Uommunity Basecl
Economic Development
Cl 9:45 AM - 10:45 AM, Jun 29
' ' '
1.0 AICP credit
i
As the COVID-19 pandemic caused chaos for Hennepin County residents and businesses, the county sought a
way to help its businesses understand and connect with government resources. The outcome was Elevate
Business, a centralized resource hub to serve as a single point of entry online. Any business or emerging
entrepreneur in the county can visit the site with a question or a problem and get connected to the resources and
technical assistance they need. Today, the county is contracting with more than 20 business advisors that offer in-
depth, transformative technical assistance, back-office support for complex fundamentals like accounting and
business planning as well as expert guidance on legal issues, technology, marketing, and finding access to capital
and targeted, cohort -based programming for specific stages of business growth for disadvantaged business
enterprises and emerging construction businesses.
Join us to learn how to incorporate technical assistance in your business retention strategies to strengthen your
business community and economy.
'* Speakers
�t,yr Mary Matze
Business Programs Coordinator
Hennepin County
0 Tashie George
Small Business Navigator
Hennepin County
Pam Bishop
Vice President of Economic Development
Southern Minnesota Initiative Foundation
Sarah Swedburg
Business Development Manager
Kandiyohi County & City of Willmar EDC
i
The Confluence Hotel - Hastings
O 9:45 AM - 10:45 AM, Jun 29
OranlM
1.0 AICP credit
Join us for a case study about the renovation of The Confluence, a 100,000 s.f. factory building along the
Mississippi Riverfront that will be complete in 2023. Development includes a hotel, apartments, banquet facility,
and restaurant and is the culmination of over 14 years of work. Collaboration between the City of Hastings as site
owner, Confluence Development, MN SHPO, MN DEED, the Met Council, Dakota County CDA, Dakota County
Environmental Services, and the U.S. EPA was key to turning a community vision into development reality. Site
development was made possible through the acquisition of 20 grants totaling $4.9 million for environmental
cleanup, partial demolition, construction of a parking ramp, and development of a new riverfront park.
1-1 Speaker
John Hinzman
City of Hastings
10:45 AM Break with Exhibitors
0 10:45 AM - 11:00 AM, Jun 29
11:00 AM Where Are the Workers? Flipping the Model on Workforce Development and
Talent Acquisition
0 11:00 AM - 12:00 PM, Jun 29
1.0 AICP credit
The world of work has changed dramatically over the past few years, with the pandemic's impacts influencing an
acceleration of talent shortages, skill misalignments, movement toward remote work, and more. But the
pandemic is arguably a catalyst for accelerated change, not the cause.
This session will highlight how the existing labor shortages came to exist, and how they are transforming our
labor market forever. From Minnesota's changing demographics to immigration patterns and macro -level social
trends, we will tell the story of how we got to where we are today and suggest how public-private partnerships are
uniquely positioned to drive impactful incremental change toward greater workforce alignment.
Key topics will include:
• The pre- and post -pandemic picture of talent shortage in Minnesota
• What job posting and candidate profile data, labor market information, and employer insights can tell us
about the changing workplace and what that means for talent opportunities in the face of challenges such
as childcare access, housing, postsecondary education affordability, transportation, and foundational
digital skills and technology access
• The importance of addressing job quality as a feature of economic development in the "new normal"
• How communities in Minnesota are applying successful national models of collaborative, cross -sector
approaches for improving the quality, diversity, and quantity of applicants (talent pipeline management)
and addressing the high cost of postsecondary education (talent finance)
• How groups of employers, together with their talent partners, utilize the Talent Pipeline Management
model to establish talent pools that better engage opportunity populations and accelerate access to high
paying, high demand careers
1a Speaker
4FErin Olson
Senior Director of Strategic Research
RealTime Talent
Spotlight on Destination Medical Center
0 11:00 AM - 12:00 PM, Jun 29
With Mayo Clinic at its heart, Destination Medical Center (DMC) is the largest public-private economic initiative
in Minnesota and the catalyst for growth in Rochester. Join us to hear from the DMC team about current progress
and plans for the future.
12:00 PM Lunch & Break with Exhibitors
0 12:00 PM - 1:00 PM, Jun 29
i
1
1:00 PM Keynote * Creating Shared Meaning: A Critical Foundation to More Effective DEI
Practices
O 1:00 PM - 2:00 PM, Jun 29
1.0 AICP credit
Culturally responsive professionals who are paying attention to the nation's pulse know how important it is to
recognize human differences. Whether you are a novice or advanced practitioner, it is imperative to have the
skills and mindset to promote a culture of safety and belonging. Instead of feeling ill-equipped to manage cultural
differences, you can invest in your growth to effectively navigate human differences that champion your mission,
vision, and values.
This interactive keynote will introduce participants to the different approaches to diversity & inclusion work and
common words, language, definitions and their current meanings. Participants will gain a deeper understanding of
how diversity & inclusion work has changed and evolved over the years and the current impact on their ability to
be more effective across cultural commonalities and differences. j
i
i
VJ Speaker
Phyllis Braxton
CEO & Founder
PINK Consulting, LLC
2:00 PM Break with Exhibitors
O 2:00 PM - 2:15 PM, Jun 29
i
2:15 PM
21st Century Intercultural Leadership: A Self -Assessment of Your Readiness
0 2:15 PM - 3:15 PM, Jun 29
1.0 AICP credit
Drawing on over 25 years of international experience and touchpoints with tens of thousands of people, Phyllis
Braxton will introduce you to a proven framework for greater effectiveness in leading across cultural differences,
the Intercultural Development Continuum. In this interactive experience you will have time for intentional
reflection, self-assessment, and strategizing next steps for increased intercultural competence to examining how
your life experiences and culture help or hinder your interactions and successes. The world needs empathic and
inclusive professionals — the intercultural awareness you gain in this session will help you become one.
If* Speaker
Phyllis Braxton
CEO & Founder
PINK Consulting, LLC
The Forge, Where Ideas Take Shape
G 2:15 PM - 3:15 PM, .tun 29
1.0 AICP credit
Itasca Economic Development Corporation embraced the opportunity to work with regional and local partners
and develop The Forge, where ideas take shape. The Forge is a collaboration with education, workforce
development, innovation and business development under one roof. The panel will outline the path to funding
including state (MN Targeted Communities Grant), federal (RISE Grant), and local opportunities. They will also
highlight their partnerships and their importance to developing a sustainable long-term strategy for their region.
The Forge will be home to students, workforce seeking upskilling and training, and budding entrepreneurs
bringing life to their innovative ideas. This location is the epitome of cross -utilization of space, equipment and
ideas; a think tank that will inspire future workers, entrepreneurs and business owners.
I
Speaker
Tamara Lowney
c Itasca Economic Development Corporation
r
3:15 PM Break with Exhibitors
0 3:15 PM - 3:30 PM, Jun 29 j
i
3:30 PM Renewable Energy Infrastructure
U 3:30 PM - 4:30 PM, Jun 29
i
i
1.0 AICP credit
This session will survey the current state of infrastructure as it relates to the transition from fossil fuels to
renewable energy. Highlights include:
• What is Minnesota's current carbon footprint?
• What is the composition of energy sources in Minnesota (for all uses), and from where is the energy
drawn?
• What are the opportunities and challenges to facilitating further transition from fossil fuels to renewable
energy?
• What actions can cities, counties, and the state take to maximize renewable energy use?
• How can renewal infrastructure development aid in meeting the labor force challenges?
1* Speakers
Derrick Miedaner
Director of Economic Development
Civic Intelligence
Jeremy Peichel
Public Policy Principal
Civic Intelligence
Waterfront Parks and Economic Development in Wayzata
0 3:30 PM - 4:30 PM, Jun 29
1.0 AICP credit
Wayzata is a small lakeside village (population 4,434) transforming its waterfront from surface parking lots to a
park destination with multiple amenities that support its downtown area. Wayzata's downtown is focused on Lake
Street, which has many restaurant and shopping attractions. However, the development of the railroad between
Lake Street and Lake Minnetonka has inhibited direct connection to the water.
Panoway on Wayzata Bay is a multi -phased project, the first of which was completed in 2020. The second phase
was scheduled for completion in 2022, and a third phase is anticipated. Panoway includes a boardwalk along
ecologically restored lakeshore, public parks, public docks, and restored historic buildings. The vast majority of
Lake Minnetonka shoreline is privately owned. The City of Wayzata's long stretch of publicly -owned shoreline
will be transformed into a public boardwalk adjacent to local businesses. Unique solutions related to funding,
community engagement, and construction management will be shared.
This session will highlight the unique approaches to urban design and landscape architecture, tourism and
economic development, operations and maintenance of public facilities, climate change resilience, environmental
stewardship, and historic preservation. Attendees will:
• Gain insights from a decade-long waterfront planning and visioning process in Wayzata that is grounded in
thoughtfid economic growth, environmental stewardship, historic preservation, and public access to Lake
Minnetonka.
• Learn how a small -city government's actions — reconstructing Lake Street and replacing surface parking
lots with public plazas — draw visitors from throughout the region.
• Learn about the inherent tension found in growing the number of visitors to a regional destination and its
effect on local residents.
• Learn about the complex TIF District on Lake Street that supports investments in Panoway and special
legislation secured for that effort.
• Learn about the public-private partnership (City of Wayzata/Wayzata Conservancy) created to fund
operations, maintenance, expansion, and advocacy.
• Learn how planners partner with experts in landscape architecture, law, finance, and engineering to do
waterfront planning and construction.
• Learn from the Community Development Director about how they influence decision-making in
waterfront planning by providing input, vision, direction, and guidance to elected decision makers.
Tl Speaker
isEmily Goellner
City of Wayzata
4:30 PM Break (on your own)
0 4:30 PM - 6:00 PM, Jun 29
6:00 PM Evening Networking Event
0 6:00 PM - 8:00 PM, Jun 29
Fri, Jun 30, 2023
7:30 AM
8:30 AM
Breakfast
0 7:30 AM - 8:30 AM, Jun 30
i
Registration
0 7:30 AM - 12:00 PM, Jun 30
l
I
Housing is Economic Development
f 0 8:30 AM - 9:30 AM, Jun 30
I
1.0 AICP credit
j
Housing is central to economic development in communities large and small. Availability of housing options can
have an impact on both stability and growth of a community's economy. Housing production plays a central role
in workforce development; and housing is critical to reducing intergenerational poverty and increasing economic
mobility. In short, a community cannot plan for economic growth if the workforce does not have access to quality
and affordable housing.
I
This session will discuss the nexus of housing and economic development and present ways in which economic
developers in communities large and small can proactively be involved in solutions that facilitate economic
growth and housing market recovery.
T1 Speaker
Mikaela Huot
Director
Baker Tilly
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An Inclusion Learning Cohort Model for Fostering Diverse & Inclusive
Communities
' 0 8:30 AM - 9:30 AM, Jun 30
9:30 AM
1.0 AICP credit
What message do you hope newcomers receive when they come into your community? Probably the opposite of
"Move away as fast as you can!". Yet this is an example of advice given over social media to a new resident in
one of our rural communities in Northeast Minnesota.
Regional population decline and accompanying economic impacts are topics that have been discussed in
community gatherings across the state, but what are the solutions to interrupting cycles of community exclusion
that can lead to declines? Fostering inclusive, diverse, and welcoming communities is part of the answer. In the
last decade, demographic trends have shown that the population in Northeast Minnesota is one of increasing
diversity. How are those from diverse backgrounds experiencing their communities and what can we do to make
Northeast Minnesota a place they want to continue to call home?
In 2022, with consultation from the Welcoming Communities Project in Southern Minnesota, Northspan
embarked on establishing Inclusion Leaming Cohorts in two rural communities in Northeast Minnesota. The
seven-month cohort purpose is centered on building relationships between community members from diverse
backgrounds, providing opportunities for learning inclusive community practices, discussing gaps in inclusion in
the community, and identifying a community project related to inclusion to move forward together.
In this session, we will present the process of establishing Inclusion Learning Cohorts, successes and challenges
in meeting the above stated goals, and outcomes and leamings from these two initial cohorts. We will discuss
how an Inclusion Learning Cohort can be the spark to ignite needed conversations related to experienced
exclusion, and how the investment in community members to foster inclusion can have long term economic
benefits.
T* Speakers
Amber Lewis
` Lead for Minnesota Fellow
Northspan
Elissa Hansen
President & CEO
Northspan
i
i
Miriam Kero
Senior Consultant & Northland Connection Program Manager
i
Northspan
Ali Bilden-Camps
isConsultant & NORTHFORCE Program Manager
Northspan
Break with Exhibitors
9:30 AM - 9:45 AM, Jun 30
i
9:45 AM Small Area, Big Plan
(D 9:45 AM - 10:45 AM, Jun 30
1.0 AICP credit
In July 2022, the Rochester City Council unanimously adopted the Rochester Small Area Plan for a central
waterfront property that links together several civic, cultural and government assets to the heart of downtown
Rochester and the Mayo Clinic. NEOO Partners analyzed the commercial, office, retail, and housing sectors and
identified potential risks and impacts of development as part of the Small Area Plan. The NEOO team also led the
community engagement efforts including facilitating focused conversation with community members, leading the
community co -design process and culminating the engagement process with an interactive walking tour and ice
cream social as a site activation event.
In this session we will explore the major factors that contributed to the final recommendations, lessons learned
and strategies that were employed throughout the project. Ultimately, you will walk away with learning how
coupling economic analysis with intentional community engagement can be used to derive a holistic approach that
builds community through shared visions and values.
755 Speakers
D'Angelos Svenkeson
i
Co -Founder & CEO
NEOO Partners
Sharice McCain
Senior Community Engagement Specialist
NEOO Partners
Jasmine Carey
Public Engagement Specialist
NEOO Partners
How to Provide Appropriate Levels of Development Incentives
0 9:45 AM - 10:45 AM, Jun 30
1.0 AICP credit
Local and state governments regularly offer development incentives for redevelopment, affordable housing, and
job creation. The amount, type, and term of assistance should be negotiated, but does not have to be a long and
arduous process. To determine the appropriate level of assistance, a city must understand the various issues within
the given product and market. That is, how does a developer view the market and needed returns? What does a
bank look at in a development proforma when lending to a particular developer and how do they evaluate the
risk? This session will walk you through completed development projects and the analysis that went into
determining the amount of assistance needed.
1Q Speakers
0 i
Keith Dahl
Municipal Advisor
Ehlers j
Jason Aarsvold i
Senior Municipal Advisor
Ehlers
10:45 AM Break with Exhibitors
G 10:45 AM - 11:00 AM, Jun 30
11:00 AM DEED & Legislative Session Update
0 11:00 AM - 12:00 PM, Jun 30
EDA Agenda: 06/09/23
3A. Project Update
Block 52 Mixed Use Commercial -Residential Redevelopment:
Progress is continuing on the construction of the 5 -story mixed use commercial -residential
development. The next phase of construction activities involves the roof being added to the
top floor to seal up the building. This work is also accompanied by the HVAC, plumbing and
electrical and fire sprinkler works tasks. next phase of construction. Insulation and interior
framing will be the following tasks. Municipal sewer and water services are also being stubbed
into the structure on the Broadway side, thus the Broadway Street road closure until early
June. The pace of the project is moving along faster than was projected. It is possible that the
project will be ready to open in early 2024 versus the previously projected date of May 2024.
On the building lease up front, the developer has informed staff that discussions have been
occurring with prospective commercial tenants. The developer is hoping to entice a restaurant
to locate on the north end of the commercial space (facing the park) with an outside patio. The
Business Subsidy component of the Purchase and TIF Development Contract requires 53 new
jobs to be created by the development (by the new businesses that are located in the building).
Wiha Tools Warehouse Facility Development:
Wiha broke ground on its new 74,000 square foot assembly and warehouse facility
development in early May. Site excavation and grading is nearing completion and structure
footings have been poured. The new facility will house Wiha Tools' assembly, warehouse,
distribution, sales, and administrative functions. Wiha received $880,000 in funding assistance
from the MIF and JCF programs for equipment and building (MN -DEED) as well as City -EDA TIF
assistance to offset land acquisition and site prep costs. Under the Business Subsidy
component of the TIF Development Agreement, Wiha is required to create 59 FTE new jobs
over the next 5 years. The company is also planning to complete a second phase addition of
79,000 square feet in the future at the 12 -acre 7t" Street East site. An additional 21 FTE jobs
are expected to be created in the phase 2 project increasing the total workforce at the facility
to approximately 142 +/-.
Scooters Coffee Shop:
A groundbreaking event was held on May 25, 2023, for Scooters Coffee drive up coffee shop.
The Scooters site is located on the east side of the Cub grocery store, just east of the Poncho
Villa Restaurant. The Scooters building is approximately 845 square feet in size.
EDA Agenda: 06/09/23
Deephaven Third - West Metro Ophthalmology:
A 10,000 square foot building is newly under construction at the southeast corner of Cedar and
Chelsea Road for a new ophthalmology clinic. The building has room for a second tenant as the
eye clinic will occupy about 60 to 65 percent of the space. West Metro is relocation from 504
Pine Street (adjacent to Papa Murphy's Pizza).
Sunny Days Therapy — 7t" Street East:
Construction of the Sunny Day's Therapy occupational and speech therapy facility is
progressing and in the final phase. City of Monticello building inspections staff estimate the
progress of completion at approximately 65 percent.
Headwaters Villa Twinhomes:
The 60 -unit twinhome housing development project for ages 55 + is well underway at the
former 16.70 -acre EDA parcel along 71h Street West. Currently, excavating and grading for
infrastructure (utilities and roads) is occurring. Specific pad sites are also being prepped.
Headwater's goal is to complete the placement and finish of 10 units (the units are modular
fabricated at the AVA facility in nearby Albertville) by late July. The balance of the 50 units
would be placed and finished throughout the remainder of 2023.
Headwaters Apartments:
Construction of the 102 -unit apartment building for ages 55 + is expected to begin in the fall of
2023 and progress through the entirety of 2024. The building has ground level covered parking
with four floors of rental units above the parking structure. Attached are illustrations from the
plan set approval packet showing the building.
Monticello Lakes Apartments:
A two building, 200 -unit apartment development at a parcel on the west side of Edmunson Ave
NE in the Pointes At Cedar (PAC) Master Plan Planned Community District is expected to see
construction begin in mid -summer 2023. This a market rate housing development and will help
fulfil the demand estimates that were projected in the 2020 Housing Needs and Demand Study.
A new Study is being considered by the EDA at its June 14, 2023, meeting to better understand
the needs and demands for the next several years. The PAC water amenity features are and
proximity to restaurants and shopping are expected to be a strong leasing draw for this
development.
2
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
06/01/2023
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
4/20/2023
Project Lodge DH1
Lodging -Service
New Construction
?
?
?
$9,500,000 to
$12,500,000
Active Search
4/20/2023
Project Lodge RS2
Lodging Service
New Construction
?
?
?
$9,500,000 to
$12,500,000
Active Search
4/26/2023
Project Lodge DO
Lodging Service
New Construction
?
?
?
$9,500,000 to
$12,500,000
Active Search
5/30/2023
Project Flower -M
&M
Commercial
Concept Expansion
?
?
?
?
Concept
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