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EDA Agenda - 12/13/2023AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 13, 2023 — 6:00 p.m. Mississippi Room, Monticello Community Center SPECIAL MEETING — ECONOMIC DEVELOPMENT AUTHORITY Monticello Community Center 5:00 p.m. 1. EDA Property Maintenance Discussion 2. EDA Property Review — Summary Report 3. Downtown Fagade Improvement Loan Program 4. Tax Abatement Scoring 6:00 p.m. CLOSED Meeting Consideration of Offers or Counteroffers for the Purchase or Sale or lease 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 Additional Agenda Items 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Workshop Meeting Minutes — September 13, 2023 C. Consideration of Approving Regular Meeting Minutes — November 8, 2023 D. Consideration of Approving Workshop Meeting Minutes — November 8, 2023 E. Consideration of Adopting Resolution No. 2023-14 approving Amended TIF Policy F. Consideration of Adopting Resolution No. 2023-15 approving Amended SCDP RLF Policy G. Consideration of Authorizing a Donation to the Initiative Foundation for use in Community Economic Development Programs in the amount of $2,390 from the 2024 EDA General Fund H. Consideration of 2024 Wright County Economic Development Partnership (WCEDP) Membership and Annual Dues in the amount of $3,401 I. Consideration of 2024 WSB Economic Development Assistance Services Contract in the amount of $12,996 3. Public Hearing N/A 4. Regular Agenda A. Consideration of Reappointing Steve Johnson to the EDA for a 6 -year term ending December 31, 2029 5. Other Business A. Consideration of Economic Development Manager's Report 6. Adjournment EDA Agenda: 12/13/23 2A. Consideration of Approving Payment of Bills Prepared by: Meeting Date: ❑ Regular Agenda Item Community & Economic Development 12/13/2023 ® Consent Agenda Item Coordinator Reviewed by: Approved by: N/A Economic Development Manager 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 November 2023. 2. Motion to approve payment of bills through November 2023 with changes as directed by the EDA. STAFF RECOMMENDATION: Staff recommend approval of Alternative 1. SUPPORTING DATA: A. Accounts Payable Summary Statements for November. Accounts Payable Transactions by Account User: julie.cheney Printed: 11/17/2023 - 2:23PM Batch: 00203.11.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-00000-155020 BITCO INSURANCE COMPANIES Prepaid Work Comp Ins 10/23 - 10/24 11/14/2023 127735 1,753.00 Vendor Subtotal: 1,753.00 213-46301-415100 BITCO INSURANCE COMPANIES Work Comp Ins 10/23 - 10/24 11/14/2023 127735 585.00 Vendor Subtotal: 585.00 213-46301-433100 JAMES THARES Mileage Reimbursement (267 miles) 11/14/2023 0 174.87 Vendor Subtotal: 174.87 213-46301-433100 HAYDEN STENSGARD Mileage Reimbursement (176.8 miles) 11/14/2023 0 115.80 Vendor Subtotal: 115.80 213-46301-435100 ECM PUBLISHERS INC PH Business Subsidy Amend Ad# 134 11/14/2023 0 120.25 Vendor Subtotal: 120.25 Subtotal for Fund: 213 2,748.92 Report Total: 2,748.92 AP -Transactions by Account (11/17/2023 - 2:23 PM) Page 1 Accounts Payable Transactions by Account User: julie.cheney Printed: 11/21/2023 - 1:55PM Batch: 00204.11.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Sept 2023 11/28/2023 127831 133.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] 216 Pine St Acquisition -Sept 2023 11/28/2023 127831 948.50 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Sept 2023 11/28/2023 127831 1,995.50 Vendor Subtotal: 3,077.00 213-46301-431993 WSB & ASSOCIATES INC 2023 Economic Development Service: 11/28/2023 0 2,341.00 Vendor Subtotal: 2,341.00 Subtotal for Fund: 213 5,418.00 Report Total: 5,418.00 AP -Transactions by Account (11/21/2023 - 1:55 PM) Page I Accounts Payable Transactions by Account User: julie.cheney Printed: 11/17/2023 - 2:19PM Batch: 00202.11.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-438200 CITY OF MONTICELLO 7256-014 - 121 Brdwy W - EDA 11/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-013 - 113 Brdwy W - EDA 11/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-0010 - 101 Brdwy W -EDA 11/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 11/15/2023 0 29.75 213-46301-438200 CITY OF MONTICELLO 7256-008 - 112 River St. W EDA 11/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-007 - 103 Pine St- EDA 11/15/2023 0 0.00 213-46301-438200 CITY OF MONTICELLO 7256-0011 107 Brdwy W- EDA 11/15/2023 0 0.00 Vendor Subtotal: 29.75 213-46301-443990 US BANK CORPORATE PMT SYS Monti Chamber - Sept Lunch (JT) 11/15/2023 0 20.00 213-46301-443990 US BANK CORPORATE PMT SYS Cub - Flowers, Lemons, Limes - Mfg, 11/15/2023 0 33.93 Vendor Subtotal: 53.93 Subtotal for Fund: 213 83.68 Report Total: 83.68 AP -Transactions by Account (11/17/2023 - 2:19 PM) Page 1 Accounts Payable Transactions by Account User: julie.cheney Printed: 12/06/2023 - 11:16AM Batch: 00205.11.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431991 DEMVI LLC Parking Lot Maintenance - Nov 2023 11/30/2023 0 213.86 Vendor Subtotal: 213.86 Subtotal for Fund: 213 213.86 Report Total: 213.86 The preceding list of bills payable totaling $8,464.46 was approved for payment. Date: 12/13/23 Approved by: Hali Sittig - Treasurer AP -Transactions by Account (12/06/2023 - 11:16 AM) Page 1 MINUTES JOINT WORKSHOP ECONOMIC DEVELOPMENT AUTHORITY/CITY COUNCIL Wednesday, September 13, 2023 — 5:00 p.m. Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger Councilmembers Present: Mayor Lloyd Hilgart, Charlotte Gabler, Tracy Hinz Councilmembers Absent: Sam Murdoff, Lee Martie Staff Present: Jim Thares, Angela Schumann, Sarah Rathlisberger 1. Call to Order President Steve Johnson called the joint workshop meeting of the Economic Development Authority and City Council to order at 5:00 p.m. 2. Roll Call Mr. Johnson called the roll. 3. Tax Abatement Overview and Policies Community Development Director Angela Schumann provided an overview of the agenda item to the EDA, City Council, and the public. Previously, on June 14, 2023, the Monticello EDA held a workshop meeting, during which, Tammy Omdahl, Financial Advisor from Northland Securities Public Finance, gave a presentation on Tax Increment Financing and Tax Abatement and addressed capabilities of implementing tax abatement as part of the City's business subsidy policy overall. City staff provided the group with a draft tax abatement policy for review and discussion. The goals of the proposed policy were defined as to align with the overall economic development goals identified within the Monticello 2040 Vision + Plan (Comp Plan). The City intends to provide tax abatement assistance to encourage desirable development or redevelopment in the City that would not occur but for the abatement, and leverage abatement and other public dollars to maximize private sector investment in the City. Mayor Lloyd Hilgart asked if the City could use tax abatement the same way as they have utilized TIF to reimburse itself for land cost related to development. Ms. Schumann confirmed. Councilmember Charlotte Gabler asked if the annual changes to the City's tax capacity would affect the amount of abatement that can be provided annually. Finance Director Sarah Rathlisberger said yes, and the maximum amount of property taxes that can be abated each year cannot exceed 10 percent of the total capacity. The maximum allowed for abatement is established by state statute. Ms. Schumann clarified that with any project looking to use tax abatement, findings related to the following would be presented to the EDA and City Council prior to approval: Benefits of the project to the City will be equal to or greater than the cost of the Abatement; Project would not be feasible but -for the granting of the Abatement; Project is in conformity with the City's Comprehensive Plan, Land Use Plan and Zoning Ordinances and the Abatement Act. Mayor Hilgart mentioned that it would be good for the City to ensure the proposed Tax Abatement policy aligns with the already established Tax Abatement policy through Wright County. Staff confirmed that that has been a consideration throughout the drafting of the proposed policy document. Councilmember Tracy Hinz noted that she would be interested in seeing a scoring criterion for projects wanting to use the Tax Abatement policy, like the EDA has for other subsidy programs. Ms. Schumann clarified that it is staff's intention to utilize a scoring system that can highlight City policy goals that would be met with proposed projects. Both bodies were in consensus that a policy should be brought forward to the EDA and City Council for adoption. No action was taken on the item. 4. Adjournment TRACY HINZ MOVED TO ADJOURN THE JOINT WORKSHOP OF THE MONTICELLO EDA AND CITY COUNCIL. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 8-0. MEETING ADJOURNED AT 5:54 P.M. MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 08, 2023 — 6:00 p.m. Mississippi Room, Monticello Community Center SPECIAL MEETING — ECONOMIC DEVELOPMENT AUTHORITY 4:00 p.m. - Monticello Community Center • EDA Land Holdings Strategic Planning and Development Objectives Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, 011ie Koropchak- White, Rick Barger, Mayor Lloyd Hilgart and Councilmember Tracy Hinz Commissioners Absent: Vice President Jon Morphew Staff Present: Executive Director Jim Thares, Hayden Stensgard 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:10 p.m. B. Roll Call 6:00 p.m. Mr. Johnson called the roll. C. Consideration of Additional Agenda Items None 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes — October 11, 2023 HALI SITTIG MOVED TO APPROVE THE NOVEMBER 8, 2023 REGULAR MEETING CONSENT AGENDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 3. Public Hearing A. Consideration of adoatine EDA Resolution No. 2023-11 the Monticello Business Subsidy Policy as amended, based on findings in Resolution No. 2023-11 Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. With the City's consideration of instituting the use of Tax Abatement, an amendment to the business subsidy policy was recommended. The amendment identifies the new tax abatement program that is administered by the City. The proposed amendment would also bring the policy's language into alignment with recent statutory requirements, including establishing a minimum wage requirement when job creation is a factor in granting a subsidy. Rick Barger asked staff why the proposed policy includes a minimum wage requirement set at double the state minimum wage. Mr. Thares said that this conclusion resulted from information pointed out within the 2023 housing study update. Monticello is below average in community wages when compared to the rest of Wright County. Mr. Thares said this goal is not necessarily a requirement in every request for tax abatement, though it does establish that the City is committed to raising that average wage number within the community. Mr. Johnson asked if the wage requirement means every job created must be double the state's established minimum wage, or if it is an average of all potential jobs created. Mr. Thares clarified that it would be the average between the total jobs created. Mr. Johnson opened the public hearing portion of the agenda item. Mr. Johnson closed the public hearing portion of the agenda item. TRACY HINZ MOVED TO ADOPT THE MONTICELLO BUSINESS SUBSIDY POLICY AS AMENDED, BASED ON FINDINGS IN RESOLUTION NO. 2023-11. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 4. Regular Agenda A. Consideration of adopting EDA Resolution No. 2023-12 Authorizing a Purchase Agreement with Riverwood Bank in the amount of $415,000 for 14.16 acres of vacant REO land, to be platted as Outlot A, Great River Second Addition, as well as Outlot A. Great River Addition (4.81 acres). alone 7t" St. West (PID #155226000020 (partial) Mr. Thares provided an overview of the agenda item to the EDA and the public. Previously, the EDA met in a closed meeting to discuss potential acquisition of the noted property. Acquisition of the vacant parcel will expand the opportunity for economic development consistent with the Monticello 2040 Vision + Plan. The site's land use designation is Commercial and Residential Flex, allowing for flexibility for compatible and supportive uses. LLOYD HILGART MOVED TO ADOPT RESOLUTION 2023-12 AUTHORIZING A PURCHASE AGREEMENT WITH RIVERWOOD BANK FOR THE ACQUISITION OF PROPERTY TO BE PLATTED AS OUTLOT A, GREAT RIVER SECOND ADDITION (14.16 ACRES) OF VACANT -UNDERUTILIZED LAND AS WELL AS OUTLOT A, GREAT RIVER ADDITION, A 4.81 -ACRE PARCEL WITH A STORMWATER DRAINAGE POND, BOTH OF WHICH ARE LOCATED ON 7T" STREET WEST, IN THE AMOUNT OF $415,000. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. B. Consideration of Requesting the City Council to grant a deferral of Special Assessments payments for 14.16 -acre parcel soon to be platted as Outlot A, Great River Second Addition, along 7th St. West (PID #155226000020 (partial) Mr. Thares provided an overview of the agenda item to the EDA and the public. Connected to the previous item on the agenda, the EDA was asked to formally request that the City Council extend the payment deferral of the special assessments levied against the 14.16 -acre parcel that is anticipated to be purchased by the EDA. Mr. Barger asked for clarification on when these proposed deferred assessments would be paid. Mr. Thares clarified that when the EDA sells the property for development, the deferred assessments would be paid at that time. RICK BARGER MOVED TO REQUEST THE CITY COUNCIL EXTEND DEFERRAL OF PAYMENTS OF PUBLIC IMPROVEMENT SPECIAL ASSESSMENTS LEVIED AGAINST THE 14.16 -ACRE RIVERWOOD BANK PARCEL, SOON TO BE PLATTED AS OUTLOT A, GREAT RIVER SECOND ADDITION, ALONG 7T" STREET WEST, CONTINGENT ON EDA OWNERSHIP OF THE PROPERTY. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. C. Consideration of EDA Resolution No. 2023-13 authorizine an Interfund Loan for advance of certain costs in connection with a Tax Increment Financing (TIF) District related to acquisition of the vacant 14.16 -acre Riverwood Bank parcel, soon to be platted as Outlot A, Great River Second Addition, along 7th Street West Mr. Thares provided an overview of the agenda item to the EDA and the public. By adopting the interfund loan resolution, the EDA's immediate costs of acquiring the Riverwood Bank parcel and other related expenses connected to the purchase are considered a "loan or funding advance" and may be reimbursed through tax increments generated in a future Tax Increment Financing (TIF) district. OLLIE KOROPCHAK-WHITE MOVED TO ADOPT RESOLUTION 2023-13 APPROVING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS RELATED TO EDA ACQUISITION OF REAL PROPERTY LOCATED ALONG 7T" STREET WEST IN CONNECTION WITH A FUTURE TAX INCREMENT FINANCING (TIF) DISTRICT. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 5. Other Business A. Consideration of Economic Development Manager's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. 6. Adjournment TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY. SECONDED THE MOTION. HALI SITTIG MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 7:06 P.M. MINUTES WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, November 08, 2023 — 4:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz and Mayor Lloyd Hilgart Commissioners Absent: Vice President Jon Morphew, Treasurer Hali Sittig Staff Present: Executive Director Jim Thares, Jim Gromberg (WSB), Rachel Leonard, Angela Schumann, Hayden Stensgard 1. General Business President Steve Johnson called the workshop meeting of the Monticello Economic Development Authority to order at 4:00 p.m. Councilmember Tracy Hinz arrived at 4:28 p.m. 2. Public Hearin None. 3. Regular Agenda A. EDA Land Holdings Strategic Planning and Development Objectives i. Review of individual properties a. Confirmation of intended land use b. Confirmation of development goals ii. Prioritization of properties for sale/development, including discussion on each of the following sectors: a. Redevelopment/Downtown b. Industrial c. Housing d. Commercial iii. Strategy guidance for sale/development Executive Director Jim Thares provided an overview of the context of the workshop meeting to the EDA and the public. The purpose of the meeting was for the EDA to review with staff the current land inventory and confirm the existing land use designation for each site and discuss development goals for each. The EDA was asked to prioritize the development of each site, to provide City staff with the necessary direction in order to bring the EDA's development goals to fruition. The EDA received information packets on each piece of developable land they currently own within the City. Community Development Director Angela Schumann reviewed the overall goals identified in the Monticello 2040 Vision + Plan related to economic development with the EDA. Jim Gromberg, Economic Development Coordinator at WSB, was introduced and facilitated the meeting discussion on each subject property. Mr. Gromberg walked the EDA through a series of questions for each property, addressing each of the specifics identified in the agenda item title above. Following discussion of each property, the EDA identified priorities for development of their land, and provided staff with an understanding of their interests in how each property would be developed. Staff informed the EDA that they would summarize the context of their discussion and provide that summary to the EDA for review and additional comment. No action was taken on the agenda item. 4. Other Business None. 5. Adjournment By consensus, the workshop meeting of the Monticello Economic Development Authority was adjourned at 6:02 p.m. EDA Agenda: 12/13/2023 2E. Consideration of Resolution 2023-14 approving amended TIF Policy Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 12/13/2023 ® Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Community & Economic Development Coordinator, Finance Director ACTION REQUESTED Motion to adopt EDA Resolution 2023-14 approving an amended TIF Policy. REFERENCE AND BACKGROUND The EDA is asked to approve an amended Tax Increment Financing (TIF) Policy through adoption of Resolution 2023-14. The Policy provides a framework for the EDA's use of TIF, a key economic development assistance tool, in support of achieving the goals of the Monticello 2040 Vision + Plan. The TIF Policy has been in existence in the form of "Guidelines" since its approval by the City Council in 1999. Staff are now proactively reformatting numerous City and EDA program Guidelines, including the TIF document, into a policy template. There are only very minor changes in the amended TIF Policy, as recommended by the EDA Attorney. The added language relates to a requirement that a TIF Development Contract must be signed by the developer prior to City Council and EDA approval (Section 2.0, TIF Approval Process, item 9). The intent is to discourage developers from seeking language adjustments after the City -EDA approval of the Contract. The City Council also will consider adopting a resolution approving the amended TIF Policy at its December 11, 2023, regular meeting. A draft TIF Policy is attached as an exhibit to this report. Budget Impact: The budget impact to the EDA's General Fund budget related to reformatting the TIF Guidelines into Policies (as well as several additional policies) is projected to be approximately $1,600. II. Staff Workload Impact: The EDA attorney incorporated the TIF Guidelines into the new Policy format. The final draft document was provided to the City attorney for review as well. In-house staff involved in this effort consisted of the Community Development EDA Agenda: 12/13/2023 Director, Economic Development Manager and the Community & Economic Development Coordinator. III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 Vision + Plan outlines a wide range of Economic Development Goals. In order to accomplish this wide-ranging set of goals, it is critical for the EDA and City to consider using the available economic development tools that are authorized through State statutes and to have clear understandable Policies for those tools. STAFF RECOMMENDATION Staff recommend adoption of the amended TIF Policy which is formatted in the City's new "Policy" template. SUPPORTING DATA A. EDA Resolution 2023-14 B. DRAFT Amended TIF Policy CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA RESOLUTION NO. 2023-14 RESOLUTION APPROVING TAX INCREMENT FINANCING POLICY BE IT RESOLVED By the Board of Commissioners (the "Board") of the City of Monticello Economic Development Authority (the "EDA") as follows: Section 1. Recitals. 1.01. Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act"), provides the City of Monticello, Minnesota (the "City") and the EDA with the authority to establish tax increment financing districts ("TIF Districts") within the City. The EDA administers TIF Districts within the City. 1.02. The Board acknowledges that tax increment financing created through the establishment of TIF Districts can be a valuable financing tool to further the development and redevelopment objectives of the City and the EDA, and to that end, the EDA and the City have caused to be updated certain criteria to guide the City and the EDA in awarding tax increment financing pursuant to the TIF Act (the "Tax Increment Financing Policy"). Section 2. Tax Increment Financing Policy Approved. 2.01. The Board hereby approves the Tax Increment Financing Policy on file in City Hall, which criteria supersedes any other prior Tax Increment Financing policy or criteria adopted by the EDA. 2.02. EDA staff is hereby authorized to take all actions necessary to implement the Tax Increment Financing Policy. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 13th day of December, 2023. President ATTEST: Executive Director MN190\101\914886.v1 CITY Monticello SECTION: FINANCE REFERENCE: TITLE: TAX INCREMENT FINANCING POLICY 1.0 Purpose Tax Increment Financing Policy City Policy and Procedure NO: FIN - Date: Next Review Date: Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act"), provides the City of Monticello, Minnesota (the "City") and the City of Monticello's Economic Development Authority (the "EDA"), with the authority to establish tax increment financing districts ("TIF Districts") within the City. The EDA administers TIF Districts within the City. Tax increment financing ("TIF") proposals must meet a public purpose in addition to increasing the tax base; which can include but are not limited to, the creation of livable wagejobs, removal of blight, and environmental cleanup. The EDA will utilize TIF to support the City's long-term economic, redevelopment, and housing goals stipulated in the City's Comprehensive Plan and Zoning Ordinance. TIF proposals will be considered under the Comprehensive Plan and City Code in effect at the time the TIF proposal is received. 2.0 Policy Project Evaluation Criteria The EDA shall use the following guidelines when evaluating a TIF request: • All TIF projects shall meet the "but for" test. The "but for" test means that the project would not develop solely through private investment in the reasonable future. The developer shall provide findings for the "but for" test. • TIF will not be provided to projects that have the financial feasibility to proceed without the benefit of the assistance. In effect, TIF will not be provided solely to broaden a developer's profit margins on a project. • TIF projects should create the highest feasible number of jobs on site from date of occupancy where deemed appropriate. • For manufacturing and warehousing TIF projects, at least 90% of the jobs created must pay at least 160% of the federal minimum wage requirements for individuals over the age of 20 during the term of the assistance. In the case of a recipient with existing jobs, the EDA may determine that the wage goal is satisfied if wages are increased to at least the minimum specified in this paragraph. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. • In the case of a recipient with existing jobs, the EDA may determine that the wage goal is satisfied if wages are increased by a specified amount over the federal minimum wage. Annual written reports are required until termination date. Failure to meet the job and wage level goals require partial or full repayment of the assistance with interest. 0 TIF projects should result in a substantial increase in property value and/or property taxes. Tax Increment Financing Policy • TIF projects should facilitate redevelopment or elimination of "substandard" or "blighted" areas where deemed appropriate. • TIF projects should facilitate the "clean-up" of environmentally unsound property where deemed appropriate. • TIF projects should increase housing options for area residents when appropriate. TIF Project Requirements All new TIF projects considered by the EDA should meet the following minimum approval criteria. However, it should not be presumed that a project meeting these criteria will automatically be approved. Meeting these criteria creates no contractual right on the part of any potential developer or the EDA. • A recipient of TIF must make a commitment to continue operations at the site where the subsidy is used for at least five years after the benefit date. • The EDA may determine job creation or retention is not a goal of the subsidy. In those cases, the recipient must instead meet at least one of the following minimum requirements (in addition to all other criteria in this document other than those relating to jobs and minimum wages): 1. To remove blight and encourage redevelopment in the commercial and industrial areas of the City in order to encourage high levels of property maintenance and private reinvestment in those areas; or The proposed subsidy must result in improvements to public infrastructure or public facilities, including without limitations, sewers, storm sewers, streets, parks, recreational facilities, and other City facilities; or The proposed subsidy must remove physical impediments to development of land, including without limitations poor soils, bedrock conditions, steep slopes, or similar geotechnical problems. Prior to approval by the EDA, the developer shall provide any and all applicable and required market and financial documentation, appraisals, soil boring, information provided to private lenders for the project, and other information or data as requested. TIF Approval Process Below is the general approval process for providing TIF assistance in the City. Each project and request is unique and may require fewer or additional steps: 1. Applicant meets with appropriate City or EDA staff to discuss the scope of the project, define public assistance requested, identify public participation, eligibility, and other information as may be necessary. 2. Staff reviews the request on a preliminary basis as to the feasibility of the project. 3. EDA Board of Commissioners (the "Board") reviews the request and the project; Applicant presents the project and staff present their findings. 4. If the Board review is positive, staff will provide the City Council with an informational concept review. 5. The applicant will execute and submit the Preliminary Development Agreement, accompanied by a deposit per the approved fee schedule. 6. Applicant submits building and site plans to the Community Development Department. 7. Applicant makes Planning and Zoning Commission application, if necessary. 8. Staff prepares the required documents to establish the TIF District and the TIF Plan 9. Staff prepares a Purchase and Development Contract or a Private Redevelopment Contract (either, the "Contract") based upon agreed terms. The City will not present the Contract to the Board for approval until the Contract is in final form and has been signed by the Developer. 10. When action is required for the TIF District and Plan, the Contract, or Zoning/Ordinance; the Board, the Planning Commission and the City Council take appropriate action such as public hearings and consideration of approvals. MN 190\101 \912684.v2 Tax Increment Financing Policy 11. Building permit issued after the TIF District and Plan is approved by the City Council, the Contract is executed by the applicant and EDA, and the Building Permit Fees are paid. Generally TIF project approval takes between ten to twelve weeks from time of authorization to begin drafting plan and contract. 3.0 Scope This policy applies to all projects that apply for and may receive TIF assistance pursuant to the TIF Act. 4.0 MN190\101\912684.v2 HISTORY Approval Date: September 8, 1999 Approved by: City Council Amendment Date: October 4, 2000 Approved by: City Council Amendment Date: May 5, 2004 Approved by: City Council Amendment Date: May 3, 2006 Approved by: City Council Amendment Date: November 12, 2008 Approved by: City Council Amendment Date: March 23, 2009 Approved by: City Council Amendment Date: December 11, 2023 December 13, 2023 Approved by: City Council EDA MN190\101\912684.v2 EDA Agenda: 12/13/2023 2F. Consideration of Resolution 2023-15 approving amended Economic Development SCDP RLF Policy Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 12/11/2023 ® Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Community & Economic Development Coordinator, Finance Director ACTION REQUESTED Motion to adopt EDA Resolution 2023-15 approving an amended Economic Development SCDP RLF Policy. REFERENCE AND BACKGROUND The EDA is asked to approve an amended Economic Development SCDP RLF Policy through adoption of Resolution 2023-15. The Policy provides a framework for the City's use of Economic Development Set Aside SCDP funding as a key economic development assistance tool in support of achieving the goals of the Monticello 2040 Vision + Plan. The Economic Development SCDP RLF Policy has been in existence in the form of "Guidelines" since its approval by the City Council in 2009. Staff are now proactively reformatting numerous City and EDA program Guidelines, including the Economic Development SCDP RLF document, into a policy template. There are very minor updates to the amended Economic Development SCDP RLF Policy, which have been recommended by the EDA's attorney. The added language highlights wide flexibility for usage of the loan funds as noted in Exhibits A and B. The City Council will also consider adopting a resolution approving the amended Economic Development SCDP RLF Policy at its December 13, 2023, regular meeting. A draft Policy document is attached as an exhibit to this report. Budget Impact: The budget impact to the EDA's General Fund budget related to reformatting the Economic Development SCDP RLF Guidelines into a Policy (as well as several additional policies) is projected to be approximately $1,600. II. Staff Workload Impact: The EDA attorney incorporated the Economic Development SCDP RLF Guidelines into the new Policy format. The final draft document was provided to the City attorney for review as well. In-house staff involved in this effort consisted of EDA Agenda: 12/13/2023 the Community Development Director, Economic Development Manager and the Community & Economic Development Coordinator. III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 Vision + Plan outlines a wide range of Economic Development Goals. In order to accomplish this wide-ranging set of goals, it is critical for the City to consider using the available economic development tools that are authorized through State statutes and to have clear understandable Policies for those tools. STAFF RECOMMENDATION Staff recommend adoption of the amended Economic Development SCDP RLF Policy which is formatted in the City's new "Policy" template. SUPPORTING DATA A. EDA Resolution 2023-15 B. DRAFT Amended Economic Development SCDP RLF Policy CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY CITY OF MONTICELLO WRIGHT COUNTY STATE OF MINNESOTA RESOLUTION NO. 2023-15 RESOLUTION APPROVING ECONOMIC DEVELOPMENT REVOLVING LOAN FUND POLICY BE IT RESOLVED By the Board of Commissioners (the "Board") of the City of Monticello Economic Development Authority (the "EDA") as follows: Section 1. Recitals. 1.01. The City of Monticello (the "City") has previously received a grant through the Community Development Block Grant Economic Development Set Aside program (the "Program") and the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant was used to make loans to local businesses. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("Economic Development RLF") and to establish policies and procedures for the RLF. In December 2005, the City Council requested that Minnesota DEED designate the EDA as a Local Development Organization ("LDO") so the Program funds could be transferred to the EDA for the administration of the RLF utilizing Program dollars. A letter response from MN -DEED, dated January 3, 2006, recognizes the EDA as a LDO and therein effectuates the transfer of the Program funds and the administrative authority of those dollars. 1.02. The Board acknowledges that Economic Development RLF can be a valuable financing tool to further the development and redevelopment objectives of the City and the EDA, and to that end, the EDA and the City have caused to be updated certain criteria to guide the EDA in making awards from the Economic Development RLF pursuant to the state and federal requirements (the "Economic Development RLF Policy"). Section 2. Economic Development RLF Policy Approved. 2.01. The Board hereby approves the Economic Development RLF Policy on file in City Hall, which criteria supersedes any other prior Economic Development RLF policy or criteria adopted by the EDA. 2.02. EDA staff is hereby authorized to take all actions necessary to implement the Economic Development RLF Policy. Approved by the Board of Commissioners of the City of Monticello Economic Development Authority this 13th day of December, 2023. President ATTEST: Executive Director MN19o\loiv16117.v1 CITY OF ___1 • 41& i1� City Policy and �mo Procedure SECTION: FINANCE NO: FIN - REFERENCE: Date: Next Review Date: TITLE: ECONOMIC DEVELOPMENT REVOLVING LOAN FUND POLICY 1.0 Purpose The City of Monticello (the "City") has received a grant through the Community Development Block Grant Economic Development Set Aside (SCDP) program (the "Program") and the Minnesota Investment Fund, administered through the Department of Employment and Economic Development ("DEED"). The grant was used to make loans to local businesses. As the recipient of a grant through the Program, the City is authorized to keep all of the principal repayments and interest on the loans it makes. The City is required to use these funds to create a revolving loan fund ("RLF") and to establish policies and procedures for the RLF. In December 2005, the City Council requested that Minnesota DEED designate the City of Monticello Economic Development Authority (the "EDA") as a Local Development Organization (LDO) so the Program funds could be transferred to the EDA for the administration of the RLF utilizing Program dollars. A letter response from MN -DEED, dated January 3, 2006, recognizes the EDA as a LDO and therein effectuates the transfer of the Program funds and the administrative authority of those dollars. PURPOSE OF THE REVOLVING LOAN FUND Funds from the RLF (the "Funds") are to be used for projects ("Projects") that provide financial assistance to for-profit businesses ("Businesses") for the purpose of creating or retaining jobs. This may be accomplished by the following means: 1) Creation or retention of permanent private -sector jobs in order to create above average economic growth; 2) Stimulation or leverage of private investment to ensure economic renewal and competitiveness; 3) Leverage of private investment to ensure economic renewal and competitiveness; 4) Investment in technology and equipment that increase productivity and provide for higher wages; 5) Improve the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs; 6) Increase to the local tax base; 7) Improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living; and 8) Stimulation of productivity growth through improved manufacturing or new technologies. 2.0 Policy ELIGIBLE EXPENDITURES The Funds may be provided to Businesses in the form of grants, loans, loan guarantees, interest buy - downs, and other forms of participation with private sources of financing. The Funds can be for no more than one-half of the cost of the Project. The Funds are subject to all state and federal MIF and CDBG 1 requirements, as partially described in Exhibits A and B attached, as may be updated by DEED from time to time. PROJECT CRITERIA The Project must achieve one or more of the following criteria*: 1) Creation of new jobs or retention of existing jobs; 2) Increase in the tax base; 3) Induce private investment; 4) Provide desired public infrastructure or improvements in connection with the Project; 5) Produce higher wage levels within the community or add to current workforce skills; 6) Retain an existing business; 7) Promotes or advances the green economy. *A Project must meet one of the criteria listed in clauses 1, 3, 4 or 5 to be eligible to receive the Funds. ELIGIBLE PROJECT ACTIVITIES The Funds may be used for the following activities: 1) Purchase of land 2) Construction of buildings or other improvements 3) Renovation of existing buildings to accommodate the business 4) Construction of tenant improvements 5) Purchase of capital equipment 6) Purchase of an existing building 7) Site improvements 8) Working capital 9) Public improvements necessary for the location, expansion, and/or retention of a specific business 10) Microenterprise Assistance, as further described in Exhibit B 11) Developing business incubators, as further described in Exhibit B 12) Workforce development, including job training and placement, as further described in Exhibit B 13) Technical assistance, as further described in Exhibit B 14) Housing Rehabilitation of either owner -occupied or rental housing. INELIGIBLE ACTIVITIES RLF assistance may not be used for the following: 1) Operation or expansion of a casino 2) For a Project related to a sports facility. "Sports facility" means a building that has a professional sports team as its principal tenant. 3) General promotion of the community. 4) Professional sports teams. 5) Privately owned recreational facilities serve a predominantly higher income clientele where the benefit to users clearly outweighs the benefit of jobs created or retained. 6) Acquisition of land for which a specific use has not been identified (i.e. land banking). 7) Assistance to a for-profit business that is, or its owner is, the subject of unresolved findings of noncompliance related to previous CDBG assistance. 2 MN 190\101 \912893.v1 8) For relocation of an out of state business. 9) New housing construction. 10) Planning for economic development projects. 11) Job training that is not part of a CDBG eligible economic development activity to create or retain permanent jobs. PUBLIC BENEFIT A Project receiving the Funds must show at least a minimum level of public benefit. The Funds for a Project must not exceed $50,000 per full-time equivalent, permanent job created or retained by the Project. If the City finds, after a public hearing, that the primary purpose of the Project is not job creation, this provision is not applicable, and instead, the Funds must not exceed $1,000 per low or moderate income person served by the Project. PROJECT COSTS AND FINANCIAL REQUIREMENTS A. Acceptable Private Financing Methods: 1. Companion Direct Loan: The RLF is subordinate to the primary lender. 2. Participation Loan: The RLF participates in a portion of the loan. 3. Guarantee Loans: The RLF guarantees a portion of the bank loan. *Interest rate cap is subject to City approval B. Terms and Conditions: 1. Leveraging: Minimum 60 to 65 % private/ Non-RLF, Maximum 30% RLF, Minimum 5 to 10% equity. 2. Loan Term: Personal property term not to exceed life of equipment (possibly up to 10). Real estate property maximum of 10 -year maturity amortized up to 30 years. Balloon payment at 10 years. 3. Interest Rate: Fixed rate not less than 2% below prime rate or 1% below prime if equity contribution is less than 10 percent of total financing - as published in the Wall Street Journal on date of EDA loan approval, with a minimum interest rate of 1.0% or 2% if equity contribution is less than 10 percent of total financing. 4. Loan Fee: Minimum of $500 but not to exceed 1.5% of the total loan. Fees are to be documented and no duplication of fees between the lending institution and the RLF. Loan fee may be incorporated into project cost. EDA retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant within 5 working days after EDA approval of loan. The fee is non-refundable. C. Other: 1. No penalty for prepayment of loan in whole or in part. 2. Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to by the EDA. 3. Monthly payments may be deferred for a determined period of time upon approval by the EDA. Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the EDA under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the EDA within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the EDA and all such interest will be due and payable at the same time as the amount on which it has accrued. 3 MN 190\101 \912893.v1 4. RLF Loans are not assumable. 5. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines, subject to the type of assistance. 6. Collateral may include: i. Liens on real property in project (mortgage deed). ii. Liens on real property in business (mortgage deed). iii. Liens on real property held personally (subject to EDA approval, homestead exempt). iv. Machinery and equipment liens (except equipment exempt from bankruptcy). V. Personal and/or corporate guarantees (requires unlimited personal guarantees). 7. An approved RLF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. i. The 180 -day non-performance date can be extended up to an additional 120 days, upon approval of the EDA. ii. A written request must be received 30 days prior to expiration of the 180 -day non- performance date. 8. Legal fees are the responsibility of the RLF applicant. 9. Participating Lending Institutions: i. Shall be determined by the RLF applicant. ii. Shall cooperate with the EDA and assist in carrying out the policies of the RLF as approved by the EDA. iii. Shall analyze the formal application and indicate to the EDA at the level at which the lending institution will participate in the finance package. 10. Loan Administration: i. City Staff shall collect applicable RLF payments ii. City Staff shall assure EDA compliance with all applicable terms and conditions of the approved loan. iii. All loan documents shall include the following: a) Definition of loan default, agreements regarding notification of default b) Copy of primary lenders documents c) Provisions allowing the EDA to inquire on the status of the primary loan LOAN APPLICATION PROCEDURES The EDA desires to make the RLF loan application process as simple as possible. However, certain procedures must be followed prior to EDA consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: City Staff: City Staff shall carry out RLF operating procedures as approved by the EDA. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in this policy. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with 4 MN 190\101 \912893.v1 the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the EDA consider approval of the preliminary application at the next regularly scheduled meeting of the EDA. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the EDA. A decision regarding the application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the EDA shall issue said loan. 3.0 Scope This policy applies to all projects that apply for and may receive assistance under the Program. 4.0 5 MN 190\101 \912893.v1 HISTORY Approval Date: March 23, 2009 Approved by: City Council Amendment Date: January 10, 2018 Approved by: City Council Amendment Date: December 11, 2023 December 13, 2023 Approved by: City Council EDA 5 MN 190\101 \912893.v1 July 2014 EXHIBIT A STATE REQUIREMENTS OPERATING GUIDELINES FOR REVOLVING LOAN FUNDS SEEDED BY STATE MINNESOTA INVESTMENT FUND AWARDS A local unit of government may establish a Revolving Loan Fund (RLF) with funds from a variety of sources. The guidelines outlined in this document pertain only to a RLF seeded with funds received through the repayment of a loan provided from the state -funded Minnesota Investment Fund (MIF) or Economic Recovery Fund programs administered through the Department of Employment and Economic Development or its predecessors. The local government must follow the RLF guidelines that were submitted with the initial MIF application and approved by your DEED Senior Loan Officer. Although the guidelines provide the policies and procedures for the reuse of these funds, the RLF policies and procedures must also adhere to the same requirements that are followed by the state's Minnesota Investment Fund program. In addition to the local government's underwriting criteria, the guidelines from Minn. Stat. 116J.8731 (some of which is summarized below) and from the Minnesota Business Subsidy Law (Minn. Stat. 1161. 993 and 1161.994) must be included in the policies and procedures General Purnoses and Guidelines for RLFs Seeded by the Minnesota Investment Fund Purpose and Goals The purpose of the RLF is to provide financial and technical assistance for the creation and retention of new employment. These objectives may be accomplished through the following means: 1. Create/retain permanent private sector jobs to fuel above-average economic growth consistent with environmental protection; 2. Investment in technology and equipment that increase productivity and provide for higher wages; 3. Leverage of private investment to ensure economic renewal and competitiveness; 4. Increase the local tax base to guarantee a diversified industry mix; 5. Improve the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs; 6. Improve employment and economic opportunities and create a reasonable standard of living; and 7. Enhance productivity growth through improved manufacturing or new technologies. One way to meet these objectives is to assist businesses that have location options outside Minnesota. These firms bring income into the state and raise the overall standard of living. Eligible Expenditures The MIF -seeded funds may be used in a variety of ways include example noted below. More information is available in Minn. Stat. 1161.8731 and through conversations with your loan officer. 1. Provide loans, loan guarantees, interest buy -downs, and other forms of participation, ensuring that RLF funds are matched by private financing. 2. Fund strategic investments in renewable energy market development. Any expenditure for external marketing for renewable energy market development is not subject to the matching requirements listed above. 3. Provide entrepreneurs with training, other technical assistance, and financial assistance as defined by federal guidelines. A-1 MN190\101\912893.vl July 2014 Eligible Projects Assistance must be evaluated on the existence of the following conditions as noted in Minn. Stat. 1161.8731: 1. Creation or retention of jobs, or the improvement of jobs as measured by wages, skills or knowledge; 2. Increase in the tax base; 3. Attraction of private funds to the project; 4. Incapacity of local communities and finance partners to finance project; 5. Results in higher wage levels or workforce skills; 6. Supports development of microenterprises, as defined by federal guidelines, through technical assistance or financial assistance. 7. Need for assistance to retain existing business; 8. Importance of assistance to attract out-of-state business; and 9. The project promotes or advances the green economy. The assistance cannot meet solely 7. or 8.; other conditions must also be present. Eligible Activities RLF's may be used to fund a variety of business activities including: 1. Acquisition of land 2. Construction or rehabilitation of facilities 3. Site improvements 4. Utilities or infrastructure 5. Machinery and Equipment 6. Training 7. Working capital Advance approval from DEED is necessary if the local government would like to provide financing for activities not listed above. Approval is more likely to occur in projects that relate to business development and involve other local government funds. Ineligible Activities In contrast to federal MIF funds, there are industry limitations on how state MIF RLFs may be used. State MIF RLFs may not be used for the operation, construction or expansion of a casino, a sport facility that that has a professional sports team as a principal tenant or any firm engaged in retailing merchandise. All assistance should follow the approved RLF guidelines. Please call your loan officer to discuss any prospective financing. Wage Goals Businesses receiving RLF-State MIF assistance must pay each employee total compensation, including benefits not mandated by law, that on an annualized basis is equal to at least 110 % of the federal poverty level for a family of four, which as of February 1, 2014 is $12.61 per hour. Each year's compensation level changes and can be found on DEED's Business Finance MIF website. Other Eligible Uses of the Funds Minn. Stat. 1161.8731 allows local governments to loan or grant RLF funds to a regional development commission, other regional entities, or a certain statewide community capital funds to provide the local match required for capitalization of a regional or statewide RLF. Unlike federal MIF funds, state MIF funds held by local governments never lose their state identify and must follow all applicable laws and regulations. A-2 MN190\101\912893.vl July 2014 The local government must request permission from the DEED before it can commit to providing funds to any of these organizations. The local government does not have the authority to turn over to another entity, such as Port Authority, Economic Development Authority, Housing Authority, etc. revolving loan funds for any purpose; these entities may administer MIF transactions provided the MIF grantee still maintains control over the RLF. Conflict of Interest Minn. Stat. 471.87 and 471.88 provide guidance on conflict of interest in a MIF transaction. An actual conflict of interest shall be deemed to exist when a decision on a MIF transaction would compromise a duty to another party or if special advantage is deemed to occur. Potential conflict of interests shouldl also be considered. Business Subsidy Law As mentioned on page 1, Minn. Stat. 1161.993 and 1161.994 must be followed in the administration of RLF-State MIF. These sections pertain to the definition of a business subsidy, public purpose of the subsidy, criteria, subsidy agreements, wage and job goals, timing of the project, public notice and hearing requirements, failure to meet goals, and reporting of information regarding the outcomes of the subsidy. Job Listing Requirements Per Minn. Stat. 116L.66, a business that receives grants or loans in an amount greater than $200,000 must agree to list any vacant or new positions related to the financial assistance on the MinnesotaWorks.net job bank website. Prevailing Wage Per Minn. Stat. 1161.871, laborers and mechanics at the project site during construction, installation,remodeling, and repairs must be paid the state prevailing wage if the financial assistance is greater than $500,000 for a loan. All contracts for publicly owned infrastructure using the RLF must comply with the prevailing wage provisions. Data Privacy The provision of any information related to any applications for assistance is guided by Minn. Stat. 13.591, particularly Subd 1 and 2. These operating guidelines provide a summary of how to administer revolving loan funds seeded with repayments from Minnesota Investment Fund loons. Specific transactions and RLF administration should be discussed with your DEED Senior Loon Officer. Other applicable state and federal laws and rules must also be followed. A-3 MN190\101\912893.vl EXHIBIT B FEDERAL REQUIREMENTS GUIDELINES forthe RE -USE OF LOCAL REVOLVING LOAN FUNDS (RLF) COMMUNITY DEVELOPMENT BLOCK GRANT ECONOMIC DEVELOPMENT PROGRAM (CDBG-ED) MINNESOTA INVESTMENT FUND STATE OF MINNESOTA DEPARTMENT OF EMPLOYMENTAND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION OFFICE OF BUSINESS FINANCE March, 2014 B-1 M N 190\101\912893.v1 INTRODUCTION The Community Development Block Grant Program (CDBG) administered by the Minnesota Department of Employment and Economic Development (DEED) is funded annually by the U. S. Department of Housing and Urban Development. DEED's Office of Business Finance receives 15% of the states' CDBG annual allocation for the purpose of furthering economic development in the non -entitlement areas of Minnesota. This economic development set aside is operated within the Minnesota Investment Fund (MIF) program, which is supplemented with state funds. (For purposes of this document, the program will be referred to as "CDBG-ED" and the requirements apply only to the federal funds.) HUD establishes the CDBG regulations and requirements for the program and has oversight responsibilities for the use of these funds. CDBG-ED funding is provided to a unit of general purpose local government. (The local unit of government will be referred to as "the local government"). In turn, the local government provides a loan to a business to assist with its start up or expansion. DEED allows the community to retain the loan repayments, including principal and interest. Historically, local governments chose to use the repayments to capitalize a Revolving Loan Fund (RLF) for economic development purposes only. It has been found that for many reasons, (i.e., number of years it has taken to accumulate enough cash to actually use the funds, staff turnover, lost paperwork, confusion over the federal requirements, lack of projects, etc.) many RLF's have been inactive. Fortunately, CDBG rules provide flexibility on the reuse of these funds. To assist local governments in the administration of their RLF, CDBG-ED funds can be used for the following: 1) Revolving Loan Fund (RLF) for Business Financial Assistance; 2) Other CDBG Eligible Activities; and 3) Assistance to a Local Development Organization (LDO). These guidelines will provideeg neral guidance on the requirements for the reuse of the funds. For in-depth information the community must refer to regulations posted by HUD on their website. Before determining how these funds will be used, it is strongly recommended a thorough needs assessment of the community be undertaken. Through this process, the community will have a better understanding of its community and economic development needs and will be positioned to effectively address these needs. B-2 M N 190\101\912893.v1 SECTION I Revolving Loan Fund (RLF) for Business Financial Assistance The establishment of a Revolving Loan Fund within a community is one of several tools available to encourage business development. When establishing a RLF, the local government should begin by determining the economic development needs of their community from which they can develop policies, procedures and guidelines in response to those needs. There is no reason to "reinvent the wheel" as there is a wide array of RLF guidelines, samples of application forms, and legal documents on the web; or DEED's application(s) may be used. Upon completion of the policies and procedures, the grantee must submit them to DEED for approval. When a RLF is capitalized with repaid CDBG-ED loan repayments, the community takes on a major responsibility, as it will be functioning as a lender. The lending responsibilities are similar to those of commercial lenders and include loan marketing, application processing, credit analysis, lending decisions, loan closing and documentation, and loan servicing, in addition to meeting all of the federal, legal and administrative requirements of the CDBG-ED program. Because the RLF dollars are public funds, the local government must demonstrate to the taxpayers (as well as DEED and HUD) that their funds are being used wisely and for a public benefit. If a project fails, there may be a loss of public funds and external scrutiny of the local governments lending practices. It is important for the local government to mitigate these risks through prudent screening, underwriting, structuring and monitoring of business loans. It is strongly recommended that administrators of the RLF take RLF training through organizations such as the National Development Corporation (NDC) or the Council of Development Finance Agencies (CDFA). Local governments with CDBG-ED RLF's must keep the following in mind: The RLF never loses its federal identity. When loans are repaid, all CDBG regulations and requirements that applied during the term of the original project(s) will apply to the RLF. Some of these requirements include, meeting a national objective, public benefit standards, citizen participation, environmental review and Davis -Bacon (prevailing wage). The only exception is when loan repayments are made to a qualified Local Development Organization (See Section 111). In addition, the grantee must report to DEED on the use of the RLF on an annual basis as long as the funds continue to revolve. In compliance with HUD regulations and state rules, the State of Minnesota has chosen to permit the local government receiving CDBG-ED funds to establish a revolving fund to carry out specific, identified activities. A revolving fund, for this purpose, is a separate fund (with a set of accounts that are independent of other program accounts) established to carry out specific activities which, in turn, generate payments to the fund for use in carrying out such activities. These payments to the revolving fund are program income and must be substantially disbursed B-3 M N 190\101\912893.v1 from the revolving fund before additional grant funds can be requested from the State for revolving fund activities. Such program income is not required to be disbursed for non - revolving fund activities. Interest earned on the revolving fund is program income. When using the RLF for Business Financial Assistance, the community's RLF will continue the same activity that the original CDBG-ED assistance was addressed — "financial assistance to a for profit business that will create or retain permanent jobs, of which at least 51% will be taken by or made available to LMI persons." However, in addition to making a direct loan to a business, there are several other activities that are eligible for funding. Eligible Activities The financial assistance to businesses can be provided in the form of grants, loans, loan guarantees, or other assistance determined by the community and detailed in their RLF policies. Following are the activities that CDBG-ED RLF's can be used for: Direct Financial Assistance to Businesses o Direct financial assistance can be provided to private, for profit businesses that intend to create or retain permanent jobs. o Funds under this activity can be used to assist a business with the following: • Project based land acquisition; • Building construction and other improvements; • Renovation of an existing building; • Purchase of capital equipment; • Purchase of an existing building; • Site improvements; • Working capital; • Railroad spurs or similar extensions; • Some types of downtown commercial rehabilitation. • Retail operations are eligible. o For example, a low interest loan can be provided to a business to assist with the purchase of equipment as part of a larger project. • Infrastructure o This includes public works projects necessary for the location, expansion, and/or retention of a specific for-profit business(es). Examples of eligible infrastructure projects are: streets, roads, water, sewer, bridges, sidewalks, parking facilities, drainage systems, railroad spurs, etc. • Microenterprise Assistance o The RLF may provide direct financial assistance, including loans, grants, etc. and technical assistance to assist with the start up or expansion of microenterprise businesses. o A microenterprise is defined as a commercial enterprise that has 5 or fewer employees, of which 1 or more is the owner. B-4 M N 190\101\912893.v1 • Business Incubators o For the development, rehabilitation or property improvement of a building or the actual construction of a building to house the incubator; and/or o Provide assistance to businesses locating within the incubator. • Job Training This involves providing skill building classes to employees or potential employees and can be an important part of an economic development program. It can include: • Training unskilled, low-income persons for specific jobs for which they have been hired and which require skill levels beyond what they now have through a customized training program; • Re-training existing employees of a business as part of a project which qualifies asjob retention. • Technical Assistance (TA) 0 CDBG-ED funds can be used to provide TA in either of the following ways: • To provide training to the local government to carry out the economic development activities; and • To provide technical assistance and training directly to businesses on topics such as business planning or accounting. Administration o Administration is a one-time cost for items directly related to making the loan (consultant or legal fees, etc.), but cannot include staff time. 0 Costs will be capped at 10% of the loan amount or $5,000 — whichever is less. 0 If a loan should default at a later date, legal expenses and collection fees would be eligible, but please contact your DEED loan officer in this instance. 0 If a consultant is hired, the local government must follow the procurement process. Other Requirements Economic Development projects funded by the local government with CDBG-ED funds are subject to a wide range of requirements. The local government is responsible to ensure that the operation of the RLF is in compliance with a whole host of federal and state laws, regulations and executive orders. Following are the major requirements. Additional information on these and all other requirements are detailed on HUD's website. • National Objective o All projects must meet one of three national objectives: • Benefit to persons of low and moderate income (LMI); • To aid in the prevention or elimination of slum and blight; • To meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the B-5 M N 190\101\912893.v1 health or welfare of the community. In the CDBG-ED category, nearly all projects will meet the Benefit to LMI objective. Public Benefit Standards o These standards ensure that at least a minimum level of public benefit is obtained from the expenditure of CDBG-ED funds. Use of these standards is mandatory. o This requirement is separate from the National Objective requirement that 51% of the jobs created or retained be taken by LMI persons. o Basically, the standards are a "cost per job" or "cost per goods and services" calculation used to determine if the financial assistance is appropriate. • "Anti -pirating" of Jobs o CDBG-ED funds cannot be used for employment relocation activities or "job pirating." Job pirating refers to the use of federal funds to lure or attract a business and its jobs from one community to another. Specifically, CDBG-ED funds may not be used to assist businesses if: • The funding will be used to assist directly in the relocation of a plant, facility or operation; and • The relocation is likely to result in a significant loss of jobs in the labor market area from which the relocation occurs. • Environmental Review o All projects are subject to the National Environmental Policy Act (NEPA) which seeks to avoid adverse impacts on the environment by mandating careful consideration of the potential impacts on any project assisted with federal funds. o All projects must have an appropriate environmental review completed prior to project costs being incurred. • Citizen Participation o The local government must include the public in decisions about use of the RLF, as well as each project to be funded. • Acquisition/Displacement and Relocation Requirements o Applies to any acquisition of real property when CDBG-ED funds are used for the acquisition. • Davis Bacon and Related Acts o Includes the Federal Contract Work Hours and Safety Standards Act, and the Copeland "Anti- Kickback" Act; o Applicable when more than $2,000 of CDBG-ED dollars are used for construction, remodeling, site development and equipment installation. • Guidelines and Objectives for Evaluating Project Costs and Financial Requirements. These underwriting guidelines are designed to assist the local government to select economic development projects that are financially viable and will result in the most B-6 M N 190\101\912893.v1 effective use of CDBG-ED funds. The use of these guidelines is voluntary; however, local governments electing not to use these guidelines are expected to conduct basic financial underwriting of projects funded under this eligibility category. There are six criteria that must be evaluated: o Project costs are reasonable; o All sources of project financing are committed; o To the extent practicable, CDBG-ED funds are not substituted for non-federal financial support; o Project is financially feasible; o To the extent practicable, the return of the owner's equity investment will not be unreasonably high; and o To the extent practicable, CDBG-ED funds are disbursed on a pro -rata basis with other finances committed to the project. B-7 M N 190\101\912893.v1 SECTION II Other CDBG Eligible Activities The community may broaden the use of the RLF by establishing a program that supports other community development needs which combines a wide array of activities. These activities must continue to meet the requirements of the CDBG program. When converting CBDG-ED to CDBG- SCDP, the Program Income can only be used as leverage for open active grants or on new applications to SCDP. The community must receive approval from DEED's Office of Business Finance if it chooses to use some or all of its CDBG-ED loan repayments for "Other CDBG Eligible Activities." The written request must include the dollar amount to be transferred and a plan for the use of the funds. The request will be reviewed by DEED's Office of Community Assistance (SCDP) staff) and if approved, the community will transfer the agreed upon amount from its RLF to a "Program Income" account. The administration of the Program Income is then transferred to DEED's Office of Community Assistance staff. Federal Objective o All projects must meet one of three national objectives: • Benefit to persons of low and moderate income (LM I); • To aid in the prevention or elimination of slum and blight; • To meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community. Eligible Use of Funds for "Other CDBG Activities": Community Development is the primary focus of these funds. For more information see the SCDP A -Z guide on the DEED website. You can choose one or a combination of the following activities. • Housing Activities -rehabilitation of housing which includes Lead Based Paint and historical evaluation and remediation. o Homeowner Rehabilitation —to assist existing homeowners with rehabilitation of their homes. o Rental Housing—to rehabilitate rental housing.51%of the units must be occupied by low to moderate incomes at HUD Fair Market Rents. Commercial Rehabilitation: Rehabilitation of non-residential building owned privately or by a non-profit. This activity must come in combination with another activity. B-8 M N 190\101\912893.v1 o Code Violations o Health and Safety Issues o Fa4ade Improvements o Energy Efficiency o Accessibility Access • Public Facilities and Improvements: Activities that are necessary to improve public facilities for communities that have 51% or greater of low and moderate income persons by census or survey area. o Public Improvements include, but is not limited to water and sewer lines, water and wastewater treatment and storage. o Public Facilities such as community centers. • Assessment Abatement: The recovery of the capital costs of a public improvement. o Abatement assessments are provided to households whose family income is 50% or less of the county median income. • Clearance: Usually related to demolishing structures as a result of a disaster or urgent threat to health and safety in the community. o Removal of demolition products (rubble) and other debris. • Conversion — The conversion of a closed building from one use to another. o Conversion of a closed school building to residential or for use as an eligible public facility. • Program Administration — for the planning and execution of CDBG activities. o Eligible costs include staff and related costs required for overall management, coordination, monitoring, reporting, and evaluation. Application preparation is not an eligible activity with any CDBG funds. o This is not a stand- alone or separate budget line item and should be included within the main activity cost. Note: All Disaster activities will be addressed on a case by case basis. 9 B-9 M N 190\101\912893.v1 Other Federal Requirements under the SCDP-Program Income Environmental Review o All projects are subject to the National Environmental Policy Act (NEPA) which seeks to avoid adverse impacts on the environment by mandating careful consideration of the potential impacts on any project assisted with federal funds. o All projects must have an appropriate environmental review completed prior to project costs being incurred. Citizen Participation o The local government must include the public in decisions about use of the program income, as well as each activity or project to be funded. A public hearing is required and if funded a second hearing mid -project is required. Davis Bacon and Related Acts -used in commercial rehabilitation, rental rehabilitation of 8 units or more and public facilities. o Includes the Federal Contract Work Hours and Safety Standards Act, and the Copeland "Anti -Kickback" Act; o Applicable when more than $2,000 of CDBG dollars are used. Acquisition/Displacement and Relocation Requirements o Applies to any acquisition of real property when CDBG-ED funds are used for the acquisition. 10 B-10 M N 190\101\912893.v1 SECTION III Local Development Organizations HUD has recognized the need to lessen the burden to local governments that are administering CDBG-ED funded Revolving Loan Funds (RLF's). Therefore, the Housing and Community Development Act (HCDA) was amended to allow grantees of CDBG-ED funds to sub -grant their award to a qualified non-profit organization to carry out community economic development projects. This process is referred to as "de -federalizing" the funds and by doing so, the RLF is exempt from the CDBG requirements. The local government selects the non-profit organization to carry out the activity and designates it as a Local Development Organization using a LDO agreement. Because of the large number of underutilized RLF's funded with CDBG-ED funds, as well as the complexity of the CDBG requirements, DEED is strongly recommending that local governments with CDBG-ED RLF's consider the use of this process. • Advantages of de -federalization: o Decreases the administrative burden on local governments to comply with the onerous CDBG requirements; o Increased flexibility in the administration of CDBG-ED RLF's; o Maximizes the flexibility of use of CDBG-ED funds, including accommodating regional approaches to the administration of lending programs. o No annual reporting to DEED on the use of the funds. • Local Development Organization Eligibility Requirements: The LDO must meet the requirements of 105(a)(15) of the Housing and Community Development Act. The local government and prospective LDO will be required to complete and submit to DEED a LDO Designation form (attached), indicating that the following requirements related to the eligibility of the LDO have been met: o The organization is organized as a non-profit under the appropriate Internal Revenue Service code for nonprofits; o The organization is organized under state or local law to serve the community/economic development needs of communities; o The organization is independent of the local government; o The LDO will be "carrying out" the specified activity. In order for loan repayments to become de -federalized, the LDO will be the beneficiary of the loan; and o The activity shall not be carried out until DEED has approved the LDO designation and Agreement. 11 B-11 M N 190\101\912893.v1 • Process DEED awards the CDBG-ED grant to the local unit of government who, after executing the LIDO Agreement, grants the funds to the local nonprofit organization that meets the above definition. This entity is now known as the Local Development Organization (LDO). The LIDO lends the funds to the business and the loan repayments are returned to the LDO. This loan is subject to the CDBG-ED requirements; however, subsequent loans made by the LIDO through the repayments of the original loan are not. The local government monitors the LDO for compliance. DEED monitors the local government. When the project is complete DEED administratively closes the project file. Reporting to DEED on the use of the RLF is not required. Though exempt from the CDBG requirements, the LIDO must establish policies and procedures which further economic development in the community. To accomplish this, the local government must provide the following to DEED: o Citizen Participation documentation. A public hearing must be held to discuss the transfer of funds to the LDO. Information to be provided to DEED includes: the public hearing notice, public hearing minutes, passage of a resolution concerning the arrangement with the LIDO including a stipulation regarding the de -federalization of the funds; o Draft agreement that is mutually acceptable to both entities, o IRS documentation establishing the "nonprofit" organization; o Copy of the LDO's proposed RLF policies and procedures; o LIDO Designation form; Upon DEED approval, the agreement may be executed and the RLF policies and procedures finalized. A local government that has an existing RLF capitalized with CDBG-ED funds can also provide some or all of its RLF to an LDO. The LDO's initial use of these funds must meet all CDBG requirements and will not be de -federalized until repaid to the LDO. The process for the transfer of funds to the LIDO is the same as outlined above. Once the transaction is completed and the LDO Agreement is executed, the Grantee cannot recall the funds nor can they instruct the LDO on the use of the funds. Responsibilities for the initial project The Local government is responsible for the following: • Compliance with all CDBG-ED requirements on the initial use of the CDBG-ED funds; • Monitoring the LDO; • Obtaining any necessary records from the LDO; • Submittal of annual reports to DEED while the grant is open. 12 B-12 M N 190\101\912893.v1 Local Development Organization (LDO): Is responsible for "carrying out" the initial project. This primarily means it will undertake the activity of the project directly or through contracts with an entity other than the local government. In any case, the LDO must have and continue to have a direct and controlling interest in the project and have the capacity for ensuring that program requirements are met. It cannot be simply a passive "pass- through" participant for the local government that performs all of the work. Is responsible for the following minimum activities in "carrying out" the program: ■ Owner of all program policies and processes for the implementation of the program; ■ To manage the program. If the LDO does not have adequate staffing to manage the program it can contract for these services with a private contractor. A solicitation process for the contractor must be conducted in accordance with the open and competitive requirements of the state's procurement requirements. These services may include but are not limited to performing the daily accounting, application processing, and construction management duties; ■ To be in control of all decisions regarding the transferred CDBG funds, including final loan decisions; ■ Compliance with all federal and state lending requirements; ■ Owner of the resulting loans and loan repayments; ■ To use any repaid funds as specified in the LDO agreement. If, for some reason the LDO dissolves and an asset reversion occurs, contact DEED for assistance. An asset reversion could change the federal identity of any repaid funds; and ■ Final accountability for all CDBG funds received. No formal procurement process is required for the selection of a LDO. The local government negotiates terms with its selected LDO. It is recommended that the local government use DEED's draft LDO Agreement template. 13 B-13 M N 190\101\912893.v1 EDA Agenda: 12/13/2023 2G. Consideration of authorizing a donation to the Initiative Foundation in the amount of $2,390 from the EDA 2024 General Fund budget Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 12/13/2023 ® Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Community & Economic Development Coordinator, Finance Director ACTION REQUESTED Motion to authorize a 2024 donation to the Initiative Foundation in the amount of $2,390 from the EDA 2024 General Fund budget. REFERENCE AND BACKGROUND The EDA is asked to authorize its 2024 annual donation to the Initiative Foundation in support of Community and Economic Development programs in the amount of $2,390 from its General Fund budget. The proposed 2024 donation amount is the same as the EDA's 2023 contribution to the Initiative Foundation. The Initiative Foundation works with cities to provide favorable opportunities to advance community and economic prosperity and quality of life for its residents. From its inception in 1986 through 2023, the Initiative Foundation has provided a total of $4,615,789 in grants to support non-profit organizations and $5,443,229 in business loans to secure 1,233 jobs in Wright County. Per the attached letter and information flyer, for every local donor dollar, the Initiative Foundation has returned $12.61 back to Wright County communities in grants, loans, and scholarships. Budget Impact: The budget impact to the EDA's General Fund budget related to the 2024 annual donation to the Initiative Foundation is $2,390. This amount was anticipated in formulating the 2024 EDA General Fund budget which was approved by the EDA at its August 9, 2023, meeting. The specific line item which includes the dollars allocated to cover the Initiative Foundation donation is "Dues, Memberships & Subscriptions". II. Staff Workload Impact: The staff impact related to consideration of the 2024 annual donation to the Initiative Foundation is minimal. EDA Agenda: 12/13/2023 III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 Vision + Plan outlines a wide range of Economic Development Goals. In order to accomplish this wide-ranging set of goals, it further envisions collaboration with various regional partners to accomplish the identified strategies and objectives. STAFF RECOMMENDATION Staff recommend the EDA authorize a 2024 annual donation to the Initiative Foundation in support of its community and economic development programs from the EDA's 2024 General Fund Budget. Supporting the Initiative Foundation with a donation is a small reinvestment in the City of Monticello as the Initiative Funding typically returns $12.61 back to Wright County communities in the form of grants or small business loans from every donor dollar it receives. SUPPORTING DATA A. Initiative Foundation letter requesting 2024 donation B. Initiative Foundation flyer - Funding programs and economic impacts in Wright County (320) 632-9255 405 First Street SE Little Falls, MN 56345 June 12, 2023 Jim Thares, Economic Development Manager ifound.org City of Monticello 505 Walnut St Ste 1 Monticello, MN 55362-8822 Dear EDA Board and Mr. Thares, For 37 years, the Initiative Foundation has focused on building strong local economies, vibrant communities, and a lasting culture of generosity in Central Minnesota. Our grantmaking, lending, and programmatic activities support for-profit and nonprofit business growth, empower new entrepreneurs, address workforce shortages, and increase access to quality childcare for the region's workforce. In Wright County, the Initiative Foundation has provided a total of $4,615,789 in grants to support nonprofit organizations and local government projects, as well as $5,443,429 in business loans to secure 1,233 quality jobs. The Foundation's community and economic development services continue to provide essential resources for local cities, and across Central Minnesota. To further our economic and community development efforts and multiply the impact of our work, we also seek funding from sources outside the region. These external funds are combined with our own resources and put to work across Central Minnesota. In 2022 the Foundation secured and then invested into Central Minnesota more than $1.4 million from outside sources to support businesses, nonprofits, childcare providers, and local communities. The Foundation continued to partner with local leaders and state agencies to address ongoing issues, working with the Department of Employment and Economic Development to revitalize economic corridors and support small businesses, and with the Department of Education to explore solutions and implement strategies that create quality, affordable childcare. Financial contributions from cities and counties greatly increase our capacity to support these economic and community development projects. Your support also positions us to seek, secure, and leverage additional resources from outside Central Minnesota, generating a substantial return on your investment in us. For every dollar we raise locally, we have reinvested an average of $4.24 back to the communities we serve in the form of grants, loans, and scholarships. Turning every local dollar donated into more than four dollars for our communities—that's a return on investment to be proud of, and we would be honored by renewal of your support in 2024. We respectfully request that you consider allocating $2,390 to the Initiative Foundation in your 2024 budget. Please contact us if you have any questions or to request a presentation. We sincerely appreciate your past investment and look forward to your continued support in 2024. We can present in person or facilitate an online option. If possible, after your budget for 2024 is finalized, please let us know your decision by signing and returning the enclosed confirmation form. Thank you for your consideration! All the best, -VA*— �4 Matt Varilek Carl Newbanks President Director of Development The Initiative Foundation is a 501(c)(3) nonprofit organization. All contributions to the Foundation are tax-deductible to the extent allowed by law. The Foundation owns and manages all financial contributions for the benefit of communities served in the 14 -county region of Central Minnesota. 0 Powering Possible Equal opportunity Lender, provider and employer. Our Mission: To empower people throughout Central Minnesota to build a thriving economy, vibrant communities and a lasting culture of generosity. 405 First Street SE Little Falls, MN 56345 (877) 632-9255 ifound.org ® Powering Possible Initiative FOUNDATION Initiative Foundation at work in WRIGHT COUNTY $8639915 in local donations to the Initiative Foundation. 10 9 MILLION • returned to Wright County in grants and loans. Return on Investment For every local dollar contributed, the Initiative Foundation has invested $12.61 back into Wright County. Economic Impact [1986 to present] - Delivered 535 grants totaling $4.6 million - Partnered on 80 loans totaling $5.4 million - Created or retained 1,233 quality jobs - Leveraged $40 million in outside capital - Hosted 6 Partner Funds Equal opportunity lender, provider and employer. WRIGHT C Hightight For a full listing of Initiatiue Foundation inuestments in Wright County, Contact us at (877) 632-9255. Grants Thriving Economy, Thriving Communities Wright County Community Action, Inc. Foreclosure Prevention Capacity Central Minnesota Jobs and Training Services, Inc. Federal Reserve Survey True Friends Training Staff for Human Services Jobs Better Greens, LLC" Custom Bagfitters, LLC* Economic Recovery Economic Recovery " Indicates Otto Bremer Trust grant administered by the Initiative Foundation. Business Financing Local Ownership, Quality Jobs Sota Car Wash, LLC, and RRG Holdings, Monticello Service Charitable Funds Activating Generosity Delano Area Community Foundation I Delano Area Emergency Fund I Dorn Family Fund I Minnesota Pioneer Park Endowment Fund I Wright County Historical Society Fund I Childcare & Early Childhood Education Fund Nonprofit Assistance Helping Organizations Thrive Clearwater -Clear Lake Food Shelf Grantwriting Training Monticello Help Center Grantwriting Training Parenting With Grace Grantwriting Training Project Optimist Fundraising School Wight County Community Action Fundraising Training Community Action The Power of Partnership 4 The last of the baby -boom generation will reach retirement age in a few short years. While that introduces the golden years for some, it likely means many small businesses will go up for sale or face closure. The University of Minnesota Extension partnered with the Initiative Foundation and Wright County Economic Development Partnership for a February rural business succession and transition workshop. The event was attended by community leaders who gleaned insights to keep local businesses thriving. 4 Dental issues are painful and can Lead to long-term health issues. With Buffalo's new Wright Smiles for Central Minnesota, thousands will have access to dental care, with a particular focus on the uninsured and those on Medicaid. Twin Cities -based nonprofit Community Dental Care has worked with dozens of partners over the past few years to bring the clinic to fruition. The Initiative Foundation is funding a collaboration with St. Cloud Technical and Community College to staff the facility with diverse dental professionals. 4 When someone is living in a domestic violence situation, they may be financially dependent on their abuser. An Initiative Foundation grant is helping staff at Monticello's Rivers of Hope implement a program that will aid domestic abuse victims on their path to financial independence so they might escape their situation. The mission of Rivers of Hope is to end family violence through advocacy, education and collaboration. 6.14.23 EDA Agenda: 12/13/2023 2H. Consideration of authorizing 2024 Wright County Economic Development Partnership (WCEDP) membership and further approving annual dues in the amount of $3,401 Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 12/13/2023 ® Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Community & Economic Development Coordinator, Finance Director Motion to authorize 2024 Wright County Economic Development Partnership (WCEDP) membership and further approving annual dues in the amount of $3,401. REFERENCE AND BACKGROUND The EDA is asked to authorize 2024 membership in the WCEDP and annual dues in the amount of $3,401. The 2024 dues are the same as the 2023 membership dues. The EDA has been a member of the WCEDP for many years. In collaborating with and supporting the WCEDP, it offers the potential to leverage additional funding for projects through the WCEDP Loan Program. The WCEDP also pays membership fees to organizations that allow the EDA -City to gain access to regional events held by MNCAR and the Minnesota Marketing Partnership, a MN -DEED organized collaborative. As noted in the Monticello 2040 + Comprehensive Plan, collaboration on economic development efforts is a key strategy in achieving local progress. Also, to be noted, the WCEDP is leading the effort in a County -wide workforce development initiative, leading and collaborating with local school districts, businesses, the MN Workforce Center, technical schools, and others related to worker training opportunities and job postings and placement efforts. In addition, WCEDP has also launched its County -wide Business Retention and Expansion (BRE) program effort. In that role, WCEDP staff participate with City staff in conducting BRE visits in the City of Monticello. A total of two collaborative BRE visits were conducted in the past 12 months. Budget Impact: The budget impact to the EDA's General Fund budget related to the 2024 WCEDP membership dues is $3,401. This amount was anticipated in formulating the 2024 EDA General Fund budget which was approved by the EDA at its August 9, 2023, meeting. EDA Agenda: 12/13/2023 II. Staff Workload Impact: The staff impact related to consideration of the 2024 WCEDP membership and annual dues is minimal. III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 Vision + Plan outlines a wide range of Economic Development Goals. In order to accomplish this wide-ranging set of goals, it further envisions collaboration with various regional partners to accomplish the identified strategies and objectives. STAFF RECOMMENDATION Staff recommend authorizing 2024 membership in the WCEDP and further approving the annual dues in the amount of $3,401. By participating in the WCEDP, the EDA benefits through marketing and networking opportunities, BRE visitations, information sharing and collaborating in project funding, as well as workforce training efforts that are more effective on a larger geographic scale. SUPPORTING DATA WCEDP 2024 Annual Dues Statement Wright County Economic Development Partnership Bill to: City of Monticello 505 Walnut Street Suite 1 Monticello MN 55362- jim.thares@ci.monticello.mn.us Item 2024 Dues Please Mail Payment To: Wright County Economic Development Partnership 3650 Braddock Ave NE, Suite 1300 Buffalo, MN 55313 Thank You Wright County Economic Development Partnership cedp Wright County Economic Development Partnership Partnering for Opporluni/ies Qty Price 1 $3,401.00 Invoice Date: Dec 6, 2023 Invoice #10179 Subtotal $3,401.00 Subtotal $3,401.00 Tax $0.00 Total $3,401.00 Due $3,401.00 EDA Agenda: 12/13/2023 21. Consideration of authorizing 2024 WSB Economic Development Services Assistance Contract in the amount of $12.996 Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 12/13/2023 ® Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Community & Economic Development Coordinator, Finance Director ACTION REQUESTED Motion to authorize the 2024 WSB & Associates Economic Development Services Assistance Contract in the amount of $12,996. REFERENCE AND BACKGROUND The EDA is asked to authorize the 2024 WSB & Associates Economic Development Services Assistance Contract. The proposed monthly fee is $1,083 or a total of $12,996 for the year. This is a 10 percent increase from 2023. Staff believe the annual retainer, when compared to expected prices from a non -contract componentized format make it worthwhile to continue working with WSB in the same format as the past several years. 1. Market Engagement Activities has an estimated cost of $4,000 (includes travel and preparation time). 2. Financial Packaging and Site Selection Work Components has an estimated cost of $5,000 to $11,500, depending on projects 3. EDA Interaction and Engagement Components; 2 strategy engagement sessions in the context of EDA meetings (workshop or regular meetings) have an estimated cost of $3,500 4. Quarterly activity and market trend updates has an estimated cost of $1,000 5. Site Design and Illustrations (4 preliminary design sketch illustration) have an estimated cost of $7,000 If the EDA decides to re -new the contract with WSB, the start date will be January 1, 2024, with an end date of December 31, 2024. EDA Agenda: 12/13/2023 Budget Impact: The budget impact to the EDA's General Fund budget related to consideration of the 2024 WSB & Associates Economic Development Services Contract is $12,996. This amount was anticipated in formulating the 2024 EDA General Fund budget which was approved by the EDA at its August 9, 2023, meeting. II. Staff Workload Impact: The staff impact related to consideration of the 2024 WSB & Associate's Economic Development Services Contract is minimal. III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 Vision + Plan outlines a wide range of Economic Development Goals. In order to accomplish this wide-ranging set of goals, it further envisions collaboration with various regional partners and/or services provides to accomplish the identified strategies and objectives. STAFF RECOMMENDATION Staff recommend authorizing 2024 WSB & Associates Economic Development Services Contract in the amount of $12,996. The high level of Mr. Gromberg's expertise in State assistance programs and connections to MN -DEED leadership, Greater MSP, federal agency staff (US -EDA) and metro area developers provides significant value to the EDA. The ability to rely on WSB to carry out the above -noted work components in the retainer contract format is a significant benefit and value for City staff as it allows for more effective use of in-house time as well as the allocation resources on various projects and in communications with prospects. SUPPORTING DATA 2024 WSB & Associates Economic Development Services Contract wsb" December 8, 2023 Jim Thares Economic Development Manager City of Monticello 505 Walnut Avenue, Suite 1 Monticello, MN 56069 Re: Economic Development Services for the City of Monticello Dear Mr. Thares: Thank you for providing WSB the opportunity to submit this proposal to provide Economic o Development Services for the City of Monticello. The community has made considerable progress cD in working towards their goals and project identification over the last year. Z W Based upon our discussions for the focus of the economic development services for 2024 we � have developed the following summary of the proposed Scope of Services for ongoing support. 0 0 a PROPOSED SCOPE OF SERVICES a M Task 1: Market Engagement: 1.1 Active networking with potential market entrants (on-going). The exact meetings attended would be determined by the Economic Development Manager and the WSB staff some of the possible groups would be: Z • EDAM 2 • GSDC cli • GREATERMSP ° Minnesota Marketing Partnership a • a W Wright County Economic Development Partnership Z Z Other Organizations on an as needed basis. Task 2: Marketing Plan Implementation: 0 0 co W 2.1 Assist City Staff, EDA, and City in implementing the adopted marketing plan. o Aid City staff as needed in developing and/or implementing web or illustrative marketing materials. Cn W Task 3: Financial Packaging and Site Selection Technical Assistance Z > 3.1 Economic Development Opportunities - WSB will identify and assist in identifying a potential economic development opportunities: including the following: a Z o Land acquisition. X o Financial incentive opportunities. o Preliminary proposal development. o Assist in closing. Jim Thares December 8, 2023 Page 2 o Function as a conduit for information and resource for prospects and City staff. o WSB will assist in providing development related information to all qualified leads. o Assistance with financial package preparation in consultation with City staff, policy makers, and financial consultant. o Attendance at pre -design meetings associated with leads. Task 4: Preliminary Site Designs: 4.1 WSB will also assist the city staff in the development of up to four preliminary site plan designs for projects that are requested by the city. o Complete or signed drawings would be billed separately on a project basis and not included in the retainer fees. Task 5: EDA Interaction: 5.1 WSB will lead a strategy session at up to 2 EDA meetings focusing on economic development strategy for the city. The sessions are intended to be completed within the structure of the EDA workshop meeting. The resulting strategies will be incorporated into the future work plan for the EDA and economic development staff. FEE FOR SERVICES As outlined in the above Scope of Services, the city has the option to retain WSB for 12 months at the fee of $1083.00 per month, starting January 1, 2024. Travel expenses incurred by WSB within Minnesota as part of the Scope Services offering are included in the monthly fee. Travel expenses incurred by WSB for travel outside of Minnesota shall be paid for according to a negotiated price. Additionally, fees for services outside of the above-described scope may be required from time to time shall be completed at an additional hourly rate. If you agree with the proposed project Scope of Services and Fee, please sign below, and return one copy to our office. If you have any questions or comments regarding the above information, please contact me at (612) 400-3569. Sincerely, WSB & Associates Approval Signature By: Title: Jim Gromberg Economic Development Coordinator Date: EDA Agenda: 12/13/2023 4A. Consideration of Recommending Reappointment of Steve Johnson to the EDA for a six-vear term ending December 31, 2029 Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 12/13/2023 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Community & Economic Development Coordinator, Finance Director Motion to recommend reappointment of Steve Johnson to the EDA for a six-year term ending December 31, 2029. REFERENCE AND BACKGROUND The EDA is asked to recommend reappointment of Steve Johnson to the EDA for a six-year term ending December 31, 2029. Mr. Johnson is aware that his term expires on December 31, 2023, and has expressed interest to City staff in continuing to serve on the EDA for another six-year term. The City Council will consider reappointment of Mr. Johnson, contingent on EDA action, at its regular meeting on December 11, 2023. Budget Impact: There is a minimal budget impact in considering recommending reappointment of Steve Johnson to the EDA for a new six-year term. II. Staff Workload Impact: The staff impact related to consideration of recommending reappointment of Steve Johnson to the EDA for a new six-year term is minimal. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDATION Staff recommend the EDA reappoint Steve Johnson to the EDA for a new six-year term expiring on December 31, 2029 SUPPORTING DATA • Boards and Commissions Appointments Spreadsheet DRAFT - 2024 ANNUAL BOARD AND COMMISSION MEMBERS COMMISSIONS/BOARDS NAME TERM EXPIRES Planning Commission Teri Lehner 3 yr 12/2026 (3 -year staggered terms) VACANCY 3 yr 12/2026 Rick Barger Andrew Tapper 3 yr 12/2024 Council rep Paul Konsor 3 yr 12/2024 Melissa Robeck 3 yr 12/2025 Charlotte Gabler Council liaison 12/2024 Parks, Arts, and Recreation Commission Danielle Murdoff 3 yr 12/2026 (3 -year staggered terms) Daryl Tindle 3 yr 12/2026 Maria Onnen 3 yr 12/2024 Janine Kopff 3 yr 12/2024 Julie Jelen 3 yr 12/2025 Mercedes Turner 3 yr 12/2025 Adam Leiferman 3 yr 12/2025 Sam Murdoff Council liaison 12/2025 Library Board Jamie Driscoll 3 yr 12/2026 (3 -year staggered terms) Shea Roskowiak 3 yr 12/2026 Lisa Bush 3 yr 12/2024 Beth Metzger 3 yr 12/2024 Joan Brezlin 3 yr 12/2025 Bertram Chain of Lakes Advisory Council Charlotte Gabler Council liaison 12/2026 tconomic ueveiopment AUtnority Steve jonnson b yr I Z/zuzy (6 -year staggered terms) 011ie Koropchak-White 6 yr 12/2024 Jon Morphew 6 yr 12/2026 Hali Sittig 6 yr 12/2027 Rick Barger 6 yr 12/2028 Tracy Hinz (voting) Council rep Corey Ritter Llovd Hilqart (votinq) Council rep IEDC: Andrew Tapper 3 yr 12/2026 (3 -year staggered terms) Eric Olson 3 yr 12/2026 Rob Stark 3 yr 12/2026 Tony Velishek 3 yr 12/2026 Corey Ritter 3 yr 12/2026 Sarah Kortmansky 3 yr 12/2026 Jarred Merchant 3 yr 12/2024 Darek Vetsch 3 yr 12/2024 Luke Dahlheimer 3 yr 12/2024 Randy Skarphol 3 yr 12/2024 Elizabeth Calpas Chamber Rep 1212024 Joni Pawelk 3 yr 12/2025 Wayne Elam 3 yr 12/2025 Ryan Schmitz 3 yr 12/2025 Kevin Steffensmeier 3 yr 12/2025 Liz Kokesh 3 yr 12/2025 VACANCY Student Rep VACANCY Student Rep Chamber Director ex -officio Tracy Hinz Councilmember Bertram Chain of Lakes Advisory Council Daryl Tindle Parks rep 12/2026 (3 -year staggered terms) Dawn Larson (at large) 3 yr 12/2025 Tom Vetsch (at large) 3 yr 12/2026 Sam Murdoff (voting) Council rep Economic Development Authority Agenda: 12/13/2023 5A. Economic Development Manager's Report Prepared by: Meeting Date: ❑x Other Business Economic Development Manager 12/13/2023 Reviewed by: Approved by: N/A N/A REFERENCE AND BACKGROUND 1. Parking Lot Easement Snow Removal contract for 2023-2024 winter season: Price information is included in the attached email, Exhibit A and Exhibit B. At the quoted seasonal price received by the property manager (quoted by Up North Irrigation) of $7,500, the EDA's share of the cost equates to $912. 2. At the recommendation of the City of Monticello PARC (Park, Art, and Recreation Commission), the City Council commissioned an Economic Impact Study related to visitation and usage of Bertram Chain Of Lake Regional Athletic Park in the summer of 2023. The report findings of the economic impacts are included in the attached Exhibit C. The findings indicate that the typical daily expenditure per person in the City of Monticello is $50.34 (non -local visitors) and $38.30 (local visitors). The total economic contribution to the City of Monticello is $317,433. A presentation of the summary report was presented to the PARC recently with an opportunity for discussion about related follow up action steps or additional research. The staff report conveying the report information to the City Council is also included as Exhibit D. As a reminder, the EDA authorized a contribution of $3,000 toward the $14,000 cost of the Study at its May 10, 2023, meeting. 3. Projects Update: See attached Projects Update Exhibit D. 4. Prospect List Update: See attached Exhibit E. EDA Owned Vacant Block 36 Lot -.1 Acres - Zoned Broadway Sub -District of CCD Created by: City of Monticello 95509n051020 t � .. 4r75 15509 00 060 59 4F 5 _ r , - 155090 d � App 15,507 UU36069y� �J 155U1OU36061 �4 15501'0036030 Wr !-, 155010036040 �r 59f 15501 035011 �,4 Vacant Block 36 Lot Zoning 1 in=64 Ft City Boundary Pine Street 0 Parcels Riverfront Broadway walnut & Cedar N General CCD A �irr of moiiiAo October 23, 2023 Map Powered By Datafi wsb Vacant Block 36 Lot Utility Location L___] City Boundary 0 Parcels # Water Hydrant Labels On Gate • Water Curb Stop Valves 1 Water Hydrants cirr or j�+1V Gate ll Water Fittings Enclosure Water Lateral Lines 1 in=50 Ft — 6" Sewer Pressurized Mains • Chambers — 8" Sewer Gravity Mains N Enclosure — 12" 0 Storm Manholes • Hubsite — Other ■ Catchbasin ® Node N Sewer Manhole Labels A Standard Inlet • Pedestal n Sewer Gravity Main Labels ♦ Standard Outlet • Fiber Slack Loops ,`\V • Sewer Manholes • Storm Fittings — Undergroundspan October 23, 2023 • Stub —10-- Storm Gravity Mains Fiber Cable Map Powered By Datafi ® Sewer Network Structures - - - - Drain Tile WS b" Wright County, MN Summary Parcel ID 155010036090 Property Address Sec/Twp/Rng 11-121-025 Brief Tax SECT-11TWP-121 RANGE-025ORIGINAL PLAT MONTICELLO LOT - Description 009 BLOCK -036 TH PRT OF LT 9 BLK36 LY NWLY OF LN DRWN Eff PAR/W&5.70FT NWLY FR COMMON LT LN BET LTS8&9 Seq Code (Note: Not to be used on legal documents) Class 958-5E MUNICIPAL -PUBLIC SERVICE -OTHER District (1101) CITY OF MONTICELLO-0882 School District 0882 1 DOWNTOWN (Note: Class refers to Assessor's Classification Used For Property Tax 11.000 Purposes) GIS Acres Parcel: 155010036090 Acres: 0.10 Acres USAB: 0.10 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 4,524.13 Owner PrimaryOwner CITY OF MONTICELLO EDA %EXECUTIVE DIRECTOR 505 WALNUT ST SUITE 1 MONTICELLO MN 55362 Land Sales Unit Eff Seq Code CER Dim 1 Dim 2 Dim 3 Units UT Price Adj i Adj 2 Adj 3 Rate Div % Value 1 DOWNTOWN 0 0 0 0 4,524.000 S 11.000 -11.00 0.00 0.00 9.792 1.000 44,300 2 BLACKTOP 1.50 SF 0 0 0 0 2,275.000 U 1.500 0.00 0.00 0.00 1.495 1.000 3,400 Total 4,524.000 Sale Sale Date Book Page Type Buyer Seller 47,700 Sales Adjusted Multi Instr Qualified Sale Sale Sale Sale S.S. Parcel Type Sale Sale Date Book Page Type Buyer Seller Price Price eCRV # eCRV Type Rcmd. N WD U 10/27/2017 V -Vacant CITY OF RED $34,400 $34,400 740643 V MONTICELLO ROOSTER ECONOMIC PROPERTIES, DEVELOPMENT INC. Y WD U 12/18/2013 1- RED ROOSTER FALCON $95,000 $95,000 123578 1 Improved PROPERTIES NAT'LBANK INC N WD U 3/14/2005 V -Vacant HAMOND MASTERS $20,103 $20,103 94357 V BRUCE FIFTHAVE INC N WD U 10/17/2002 V -Vacant MASTERS CITYOF $17,500 $17,500 80789 V FIFTH AVE INC MONTICELLO N CD U 10/17/2002 V -Vacant HAMOND MASTERS $20,103 $20,103 80790 V BRUCE FIFTH AVENUE INC ❑1 There are other parcels involved in one or more of the above sales: Transact S.S.Rjt.Rsn. Num 03 - GOVERNMENT 21-13ANK/HUD 123578 S 14-CFD/INTPA 94357 03- 80789 GOVERNMENT 03- 80790 GOVERNMENT Recent Sales In Area Sale date range: From: 10/23/2020 To 10/23/2023 Sales by Neighborhood Sales by Subdivision 1500 Feet Sales by Distance Transfer History Grantor Grantee Recorded Date Doc Type Doc No RED ROOSTER PROPERTIES INC CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY 11/1/2017 WAR 1357152 FALCON NATIONAL BANK RED ROOSTER PROPERTIES INC 12/20/2013 LWD 1254436 SHERIFF OFWRIGHT COUNTY, HAMOND BRUCE FALCON NATIONAL BANK 5/11/2012 SCF 1202572 MASTERS FIFTH AVENUE INC HAMOND BRUCE A; HAMOND CYNTHIA M 3/21/2005 WAR 951765 Note: Transfer History data is from LandLink beginning 01/01/2003. Valuation 2023 Assessment 2022 Assessment 2021 Assessment 2020 Assessment 2019 Assessment + Estimated Land Value $47,700 $35,500 $34,400 $34,400 $34,400 + Estimated Building Value $0 $0 $0 $0 $0 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $47,700 $35,500 $34,400 $34,400 $34,400 Taxation 2022 Payable 2021 Payable 2020 Payable 2019 Payable Estimated Market Value $34,400 $34,400 $34,400 $34,400 Excluded Value $0 $0 $0 $0 Homestead Exclusion $0 $0 $0 $0 = Taxable Market Value $0 $0 $0 $0 Net Taxes Due $0.00 $0.00 $0.00 $0.00 + Special Assessments $0.00 $0.00 $0.00 $0.00 = Total Taxes Due $0.00 $0.00 $0.00 $0.00 % Change 0.00% 0.00% 0.00% 0.00% Taxation (Preliminary 2023 Taxes Payable) 2023 Proposed 2022 Payable Estimated Market Value $35,500 $34,400 Excluded Value $0 $0 Homestead Exclusion $0 $0 = Taxable Market Value $0 $0 Net Taxes Due $0.00 $0.00 + Special Assessments $0.00 $0.00 = Total Taxes Due $0.00 $0.00 % Change 0.00% 0.00% Taxes and Special Assessments Payable in 2023 are preliminary. Taxes Paid Receipt# Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1447528 4/26/2018 2018 $0.00 $0.00 $0.00 ($602.00) 1426308 10/18/2017 2017 $0.00 $0.00 $0.00 ($387.00) 1391568 5/17/2017 2017 $0.00 $0.00 $0.00 ($387.00) 1338714 10/27/2016 2016 $0.00 $0.00 $0.00 ($529.00) 1293114 5/17/2016 2016 $0.00 $0.00 $0.00 ($529.00) Photos Map No data available for the following modules: Land GA/RP, Buildings, Extra Features, OBY, OBY (Working 2024 Assessment), Sketches. The information provided on this site is intended for reference purposes only. The information is not Contact Us Developed by suitable for legal, engineering, or surveying purposes. Wright County does not guarantee the accuracy J Schneider of the information contained herein. J GEOSPATiAL User Privacy PolicyGDPR Privacy Notice Last Data Upload: 10/23/2023.6:41:02 AM § 153.044 BUSINESS BASE ZONING DISTRICTS. (G) Central Community District, CCD. (1) (a) The purpose of the "CCD", Central Community District, is to provide for a wide variety of land uses, transportation options, and public activities in the downtown Monticello area, and particularly to implement the goals, objectives, and specific directives of the Comprehensive Plan, and in particular, the 2017 Downtown Monticello "Small Area Plan" Comprehensive Plan Amendment and its design and performance standards. (b) All proposed development or redevelopment in the CCD shall be subject to the requirements of the Comprehensive Plan and other standards identified in the Small Area Plan report. It is not the intent of this chapter to abrogate any general Zoning Ordinance requirements in the CCD, and all such requirements of the Monticello Zoning Ordinance apply fully within the CCD unless addressed separately by a more detailed CCD zoning regulation. (c) Projects that benefit from public investments and/or subsidies will have a greater burden to provide higher levels of both private and public amenities. (d) Sub -districts. The CCD is hereby divided into five subdistricts, four of which comprise the study area of the Small Area Plan. The CCD regulations shall apply uniformly across all sub -districts unless specific sub -district requirements apply. The City Council shall, in accordance with the process providing for zoning map amendments in the Monticello Zoning Ordinance, adopt a zoning map for the CCD area identifying the subdistrict boundaries. The subdistricts are known as: 1. Riverfront; 2. Broadway; 3. Walnut and Cedar Streets; 4. Pine Street; and 5. "General" shall be any area within the CCD that is not identified as being within one of the four named subdistricts. (e) Base lot area. No minimum. (f) Base lot width. No minimum. (2) Process requirements. (a) New development or redevelopment projects within the Central Community District shall require a site plan review by the Planning Commission. (b) At the proposer's option, or as required by this chapter, any proposed project may combine the required site plan review as a part of a concept plan review before a joint meeting of the Planning Commission and City Council. (c) Existing buildings shall be subject to the permitted and conditional use allowances of this chapter. (d) Projects which do not meet the requirements of this chapter may utilize the Planned Unit Development (PUD) process. (3) General requirements. (a) Character areas. The Central Community District shall be further regulated by four character sub -areas: Pine Street, Broadway, Walnut/Cedar and Riverfront and shown in the Official Zoning Map. (b) Projects across character area boundaries. By conditional use permit, uses and standards may extend across character area boundaries (but not into other zoning districts) a maximum distance of up to one-half block for project purposes, provided the majority of the project square footage lies within the permitted character -area, and the intent and character of the downtown plan is maintained. Where projects extend across character area boundaries, projects must show compatibility to both character area standards relating to adjoining districts and uses. (c) Private joint -parking use. All new non-residential parking areas shall be designed to accommodate cross -access and joint use throughout the CCD zoning district to minimize the need for parking infrastructure. (d) Accessory service/appurtenance uses. Building mechanical, waste -handling, and delivery service areas shall not face the public street or public spaces (with the exception of public parking lots), and shall be screened from view of adjoining property with materials equivalent to those of the principal building. (e) Buildings adjacent to single-family. Building side walls adjacent to single- family residentially zoned properties, or directly across a public street from such properties, shall have side wall heights of no greater than the horizontal distance to the nearest single-family structure. Buildings abutting single-family residentially zoned properties shall have roofs sloping toward the abutting single- family use, or shall employ at least one of the transitional features in § 153.066. (f) Building materials. Building materials for all uses shall be predominantly glass, brick, natural or cultured stone, or equivalent masonry material. 1. Materials for lapped siding, board -and -batten, or shake exteriors shall be composite, maintenance free materials, and shall be limited in overall exterior use to no more than 30% of building exterior for residential structures. 2. Commercial and other structures, no more than 15% of building exterior may be comprised of architectural metal, which shall be integrated into the building design. 3. Mixed use buildings shall comply with the commercial building requirements. (4) Performance standards. (a) Character area standards. 1. Broadway. a. All buildings should have a storefront or entrance on Broadway. b. Buildings shall be oriented toward the front of the lot, with a maximum ten - feet setback. Setbacks may be increased to accommodate outdoor seating or activity spaces approved by Planning Commission during site plan review. Such spaces shall be improved with enhanced paving and landscaping materials and other elements. c. Storefronts facing any public street shall consist of a minimum of 50% window/door transparency on ground floor. d. Buildings shall be between two to four stories, additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. e. Buildings shall have a maximum width of 60 feet, or shall be articulated by setback, materials or window treatments roofline variation, or other design methods to reflect the appearance of separate buildings, in approximately 30 to 60 -foot increments. f. Ground floor commercial buildings which front on public streets or open space shall not be entirely comprised of office uses, but shall include other retail, hospitality or entertainment uses. g. Sidewalks and/or pathway connections shall be provided for all development projects. 2. Walnut/Cedar. a. Features such as upper balconies, dormers, courtyards, porches and dooryards shall be incorporated for residential uses. b. Buildings shall be between two to four stories; additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and the City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. c. Buildings shall be oriented toward Walnut and Cedar Street and toward front corners where applicable. 3. Pine Street. a. Buildings shall be between two to four stories; additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and the City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. b. Buildings shall be oriented to Pine Street with secondary entrances located on side or interior facades. Corner properties shall have dual orientation. 4. Riverfront. a. Features such as upper balconies, dormers, courtyards, porches and dooryards shall be incorporated for residential uses. b. Buildings shall be between two to four stories; additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and the City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. c. Buildings shall be oriented toward river and public right of way corners where applicable. (b) Use type standards. 1. Residential. a. Single/two-family: Where permitted, the requirements of the R-2 District will apply. b. Townhouse. (i) Permitted where the subject property has no direct frontage on Broadway or Walnut/Cedar. (ii) Must preserve open space to coordinate with public spaces. (iii) Building heights up to 25 feet or two stories above grade. (iv) Setbacks — 15 feet from abutting single-family, minimum of eight feet from public street. Interior side setbacks may be zero. (v) Variable roofline and front building walls. (vi) Classic row -house; living space to front; no garage -front design. (vii) All parking in attached garages. (viii) Parking ratio of two spaces per du, off-street. c. Multi four -12 du. (i) Only allowed where the subject property has no frontage on Broadway, Walnut/Cedar. Conditionally permitted where the property has direct frontage on Broadway or Walnut/Cedar. (ii) Must preserve open space to coordinate with public spaces. (iii) Building heights up to 35 feet or three stories above grade; additional stories authorized through conditional use permit. (iv) Setbacks — 15 feet from abutting single-family, minimum of eight feet from public street. Interior side setbacks may be zero. (v) Variable roofline and front building walls. (vi) Garage entrances may not face a public street. (vii) Garages which face a single-family residential zoning district must screen the garage entrance from the eye -level view of the abutting property. (viii) All parking in attached garages within building footprint (no surface parking). (ix) Parking ratio of 1.7 spaces per du, off-street, or a minimum of no less than one space per bedroom, off-street, whichever is greater. As part of site plan review, the Planning Commission may impose a different (higher or lower) standard where the nature of the use supports such standard. (x) Residential units on upper, non -ground floors of buildings in the Riverfront Character Area are permitted as a part of mixed-use buildings by conditional use permit. d. Multi 13+ du. (i) Only allowed where the subject property has no frontage on Broadway, Walnut/Cedar. Conditionally permitted where the property has direct frontage on Broadway or Walnut/Cedar. (ii) Must preserve open space to coordinate with public spaces. (iii) Building heights up to 50 feet or four stories above grade; additional stories authorized through conditional use permit. (iv) Setbacks — shall be — 15 feet from abutting single- family, minimum of eight feet from public street. Interior side setbacks may be zero. (v) Variable roofline and front building walls. (vi) Garage entrances may not face a public street. (vii) Garages which face a single-family residential zoning district must screen the garage entrance from the eye -level view of the abutting property. (viii) All required parking shall be located in attached garages within building footprint (no surface parking). (ix) Parking ratio of 1.1 spaces per dwelling unit bedroom including adjacent on -street parking, or a minimum of no less than one space per bedroom, off- street, whichever is greater. As part of site plan review, the Planning Commission may impose a different (higher or lower) standard where the nature of the use supports such standard. (x) Multiple -family housing limited to seniors may reduce parking supply to half spaces per dwelling unit, off-street. As part of site plan review, the Planning Commission may impose a different (higher or lower) standard where the nature of the type of senior living use supports such standard. (xi) Residential units on upper, non -ground floors of buildings in the Riverfront and Broadway Character Area are permitted as a part of mixed-use buildings. e. Ground floor residential units. When allowed, subject to: (i) Common areas, lobbies, etc. (if any) should be oriented toward street. (ii) Street levels should include additional window and doorway glass exposure toward streets. 2. Commercial and mixed-use, generally. a. Uses adjacent to single-family residential zoned properties which include dining/drinking service spaces shall have one outdoor areas facing public open space use areas. b. Building heights of up to 50 feet or four stories shall be permitted. c. Buildings heights exceeding 50 feet or four stories may be allowed by conditional use permit. d. Residential units in mixed-use commercial buildings shall include balcony spaces. e. Building setbacks shall be 15 feet from abutting single-family homes, minimum eight feet from public streets. Interior side setbacks may be zero. (c) Landscaping. 1. Site improvements in the CCD shall include landscaping consistent with the requirements of § 153.060 — Landscaping and Screening. 2. Pedestrian, plaza/patio, and bicycle spaces on the property shall integrate alternative pavement materials, designs, or features consistent with the surrounding streetscape. (d) Parking. 1. Off-street parking areas shall be developed and constructed according to the requirements of § 153.067. Parking supply shall be as identified in this chapter, or where not specified herein, as in § 153.067 — Off -Street Parking. 2. A commercial use which propose to vary from the requirements of this section by deferring its required off-street supply and contributing to the public parking fund shall be accompanied by a parking study, subject to review and approval by Community Development staff, which illustrates an adequate amount of available unused public parking within 400 feet of the establishment's primary entrance. "Adequate amount" shall be established by the city on a case-by-case basis in review of the applicant's individualized parking study, but shall include the following elements, as a minimum: (1) an examination of the public parking supply commonly available for use by the proposed business during its peak usage hours; (2) the likely demand placed on said supply by the proposed business based on contemporary resources for parking utilization; and (3) an estimate of competing demand on said supply. 3. An existing business, as of the date of this chapter, which has a parking supply which is substandard according to § 153.067 - Off -Street Parking, shall be considered a legal nonconformity. The business may expand or change to another business that increases the parking supply deficiency only by participating in the parking fund, according to the requirements of this Section and § 153.067(E)(4)(c) for such deficiency. 4. Parking shall not be located on a parcel between the front building line of the principal building and the public street, except where expressly provided for by the City Council after recommendation from the Planning Commission. (e) Other performance standards. 1. All other performance standards as identified in §§ 153.060 through 153.072 shall apply, unless otherwise addressed in this section. 2. Maximum residential density: 25.0 dwelling units per gross acre. 3. Maximum building height: 60 feet. a. Buildings may exceed 50 feet in height by conditional use permit, with enhanced site improvements, architecture, and building materials. 4. Lot coverage, buildings. a. Minimum building lot coverage: 20%. b. Maximum building lot coverage: 90%. 5. Accessory structures. a. For commercial uses, trash handling equipment shall be located within buildings wherever practical. If located in a structure attached to, or detached from, the principal building, such structure shall screen the trash handling equipment from the view of all neighboring property and public rights-of-way, and shall be constructed of materials which comprise the principal building. Gates and/or doors shall be constructed of permanent opaque materials, matching the principal building in color, and shall be kept closed at all times other than when being used for access. Roofs for such structures are encouraged, but not required when the screening wall of the enclosure is at least eight feet in height. b. For mixed-use and multi -family residential uses, trash handling equipment shall be located within the principal building. c. Any other accessory structures allowed in the CCD (see Table 5-4 — Accessory Uses by District) shall meet all requirements of the CCD district applicable to principal buildings. (Ord. 799, passed 2-27-2023) TABLE 5-1A: CENTRAL COMMUNITY DISTRICT (CCD) USES SUB -AREA Riverfront (A) Broadway (B) Walnut & Pine General Notes Cedar (C) (D) CCD Use Types Entertainment Retail, Retail, Office, Housing, and open supported by supported large supported space, entertainment; by space by limited supported by housing 2nd housing retail retail and retail and users, services services and retail service Additional use requirements applicable per § 153.091 Uses: Residential Uses Single- family P* CUP *Upper floors only Multi 3 du or P* CUP* P *Upper floors under only Townhouse CUP CUP* CUP P *Townhouses on Broadway east of Pine only Multi 4-12 du CUP CUP CUP CUP Multi 13+ du CUP CUP CUP CUP CUP Ground floor CUP* P P *Allowed on ground floor for townhouses on Broadway east of Pine Commercial Brew Pub P P P P <10,000 sq. ft. Brew Pub CUP P CUP P >10,000 sq. ft. Commercial CUP CUP P Day Care Commercial P CUP CUP P Lodging Uses: Commercial Entertainme CUP* CUP* CUP* CUP <10,000 sq. ft. nt/Recreation, only Indoor Commercial (including theaters) Entertainme nt/Recreation Outdoor Commercial Event centers CUP CUP CUP CUP CUP Subject to § 153.091(F)(14 Funeral CUP services Personal P P P P CUP services Places of CUP CUP CUP CUP CUP public assembly Production P P P P brewery/ taproom Micro- P P P P distillery/ cocktail room Professional CUP* P P P P Upper floors office - preferred services and retail Commercial CUP* - not P/CUP* on P/CUP* P Upper floors office allowed on ground on preferred ground floor floor ground floor Financial P P P P Drive thru by CUP Restaurants, P P P P CUP bars <10,000 sq. ft. Restaurants, CUP P CUP P CUP bars > 10,000 sq. ft. Retail Sales P P P P P <10,000 sq. ft. Retail Sales CUP CUP CUP P CUP >10,000 sq. ft. Retail with CUP P P P P service Specialty P P P P CUP Eating Establishments <10,000 sq. ft. Vehicle fuel CUP sales Veterinary CUP CUP CUP CUP No outdoor uses facilities < 10,000 sq. ft. loll Industrial Uses Industrial PUD OnlyPUD Only M PUD 0 M I Civic and Institutional Uses Clinics/ CUP CUP P P medical in MP services Public CUP P CUP CUP buildings or uses (incl. public parks) Schools Pre- CUP CUP CUP K-12 TABLE 5-1B THE POINTES AT CEDAR DISTRICT (PCD) See § 153.048 (Ord. 780, passed 7-25-2022; Ord. 791, passed 11-14-2022) From: Amber To: Jim Thares Subject: RE: Snowplowing on the Beef O Bradys Parking Lot??? Date: Tuesday, November 7, 2023 4:11:04 PM Attachments: image001.onna Jim, Thanks for reaching out! City of Monticello has 2,612 which is 12.16% of the total Broadway Parking Easement. That would be $912 their responsibility at the base price for the snow season. From: Jim Thares <Jim.Thares@ci.monticello.mn.us> Sent: Friday, November 03, 2023 12:45 PM To: Amber <amber@bullseye411.com> Subject: Snowplowing on the Beef 0 Bradys Parking Lot??? Hi Amber. I am taking this to the EDA for their input on Wednesday November 8, 2023. Hopefully, the little bit of snow that fell on Monday evening did not result in any move toward the $10,000 pricing format. Certainly, the $7,500 is much better than $10,000. What will the EDA's portion of the $7,500 equate to? Can you let me know before Wednesday (11-08-23) at say noon? Thank you for your time. Jim Thares Economic Development Manager City of Monticello 763-271-3254 www.ci.monticello.mn.us Email correspondence to and from the City of Monticello government offices is subject to the Minnesota Government Data Practices Act and may be disclosed to third parties. Economic impact of Bertram Chain of Lakes Regional Athletic Park event attendees, 2023 Prepared by Brigid Tuck, October 2023 Overview The City of Monticello, in partnership with Wright County, created the 1,200 -acre Bertram Chain of Lakes Regional Park. The park has many activities and amenities, including trails for mountain biking, skiing, hiking, and walking, an amphitheater, fishing pier, campground, and swimming beach. In addition, Monticello is in the process of developing an athletic park. Bertram Chain of Lakes Regional Athletic Park is situated on 120 acres and offers 22 soccer fields, seven lacrosse fields, and 10 football fields. The fields are youth to international sized and are natural grass fields. Two of the soccer fields are championship -level fields. Other amenities at the athletic park include walking trails, potable water services, and on-site parking. The athletic park opened in 2012 and is operated by Monticello's Parks and Recreation Department. The Bertram Chain of Lakes Regional Athletic Park attracts visitors from across Minnesota to events held on-site, introducing Monticello to the sports tourism market. Sports tourism is a growing segment of the tourism economy. Nationally, the number of sports tourists increased by nearly 6 percent between 2015 and 2019. During the same period, spending by sports travelers, event organizers, and venues increased by almost 17 percent.' Sports tourists include amateur adult and youth plus collegiate tournament participants. The City of Monticello was interested in understanding how sports tourism related to the Bertram Chain of Lakes athletic fields impacts the city's economy. University of Minnesota Extension's economic impact analysis team collaborated with the city to design a project. The goal of this project was to answer the following questions: • How much do sports tourists spend in the community during their visit? • Which businesses directly benefit from sports tourists? CITY OF • Which businesses indirectly benefit from • sports tourists? 4MonticeRo • What opportunities exist to increase the economic benefits of sports tourism in Monticello? To reach these goals, volunteers with the City of Monticello surveyed attendees at events held during June and July of 2023. In total, volunteers collected 250 usable surveys. Events included a mix of soccer and lacrosse that were held on various days throughout the week. During this period, the games were primarily league matches; there were no state or regional tournaments held. Role of Bertram Chain of Lakes Regional Athletic Park in Driving Visits Athletic events draw people to Monticello. Eight of every 10 people at Bertram Chain of Lakes Regional Park athletic events were primarily there to attend an event (Chart 1). Chart 1: Athletic Event Primary Reason for Travel to Monticello, Bertram Chain of Lakes Athletic Event Attendees, 2023 No 15% 1141V Yes 85 Most survey respondents lived outside Monticello. Nearly three of every four respondents indicated they did not live in the 55362 zip code (Chart 2). Chart 2: Local Residents versus Visitors, Bertram Chain of Lakes Athletic Event Attendees, 2023 Live in 553E 28 sitor 2% Many of the athletic event attendees had visited Monticello prior to the event (Chart 3). Chart 3: Prior Visitor to Monticello, Bertram Chain of Lakes Athletic Event Attendees, 2023 No 12% PA Yes 88% Athletic events drive current visits to Monticello. They are also driving future trips. Most people (88 percent) are likely to return to Monticello in the future (Chart 4). Chart 4: Likelihood of a Return Trip to Monticello, Bertram Chain of Lakes Athletic Event Attendees, 2023 Extremely likely 115 Somewhat likely 41 Neither likely nor unlikely d 19 Extremely unlikely 14 0 20 40 60 80 100 120 140 Number of respondents 3 More than half (56 percent) of survey respondents planned to return for another athletic event. Other main reasons for return visits included shopping and another visit to Bertram Chain of Lakes Regional Park (Chart 5). Chart 5: Main Reason(s) for Return to Monticello, Bertram Chain of Lakes Athletic Event Attendees, 2023 Another athletic event Shopping Another visit to Bertram 59 Dining 56 Sightseeing/Recreation LMMM, 32 Other = 22 0 20 40 60 66 140 80 100 120 140 160 Number of respondents Mobile analytics data can provide insight into the visitor journey. Data from Placer.ai, which tracks cell phone movements, shows that most visitors to the athletic fields come directly from home (78.5 percent), followed by nature/landmarks (mostly other places in the park), work, superstores, and restaurants (Chart 6). Following the event, many return home. However, 18.6 percent go to other nature and landmarks. A deeper dive into the data shows 17.3 percent go to another location within Bertram Chain of Lakes Regional Park, further demonstrating how the athletic fields bring people to the park. Chart 6: Visitor Journey, Bertram Chain of Lakes Athletic Field Visitors Prior Home Nature& Landmarks Work Superstores Fast Food & QSR 78.5% 65.4% 5.1% 18.6% 2.8% 5.8% 2.2% 2.390 1.6% 1i.7% Post Home Nature & Landmarks Fast Food & Q5R Restaurants Superstores 4 Only a handful of athletic event attendees spent the night in Monticello (Chart 7). The number of overnight visitors will likely vary from year to year, depending on the type of events hosted at Bertram Chain of Lakes Regional Park. Weekday soccer games tend to attract fewer overnight guests, while larger events, like state tournaments, attract higher numbers. Chart 7: Spent the Night Away from Home, Bertram Chain of Lakes Event Attendees, 2023 Yes 5% 11 No 95% The primary reason people did not spend the night in Monticello was due to the nature of the event they attended. Many people attended a one -day event and chose to make the drive to/from the event the same day. Another large portion of the survey respondents lived close enough to drive back and forth (Chart 8). Chart 8: Reasons for Not Staying the Night in Monticello, Bertram Chain of Lakes Athletic Event Attendees, 2023 One -day event 90 Live close enough to drive 81 Stayed near family/friends 3 Limited hotel availability 12 0 20 40 60 80 100 Number of respondents 5 Survey respondents enjoyed Bertram Chain of Lakes activities and amenities. The quality of the athletic events and being outdoors (both attributes of the park) were the items that survey respondents indicated they enjoyed most about their trip to Monticello (Chart 9). Chart 9: Most Enjoyable Aspects of the Trip, Bertram Chain of Lakes Athletic Event Attendees, 2023 Quality of the athletic events Being outdoors Activities/amenities of Bertram Dining options Location in relation to the Twin Cities Customer service in the community Things to do in Monticello 108 M 108 37 - 26 - 23 _ 19 _ 19 Other 8 Hotel accommodations 1 1 0 20 40 60 80 100 120 Number of respondents While survey respondents enjoy Bertram Chain of Lakes Regional Park, there is room to increase use of other activities and amenities in the park. Roughly two of every three people did not visit another part of the park beyond the athletic fields (Chart 10). Chart 10: Aware of Park Amenities Beyond Athletic Fields, Bertram Chain of Lakes Athletic Event Attendees, 2023 Yes 38% No 62 6 Awareness of and Satisfaction with Bertram Chain of Lakes Regional Park For those aware of other activities at Bertram Chain of Lakes Regional Park, the highest level of awareness was for swimming and the trails (Chart 11). Chart 11: Aware of Specific Activities at the Park, Bertram Chain of Lakes Athletic Event Attendees, 2023 Swimming , Trails ' Camping Mountain biking Kayaking Other . 17 0 155 151 119 104 97 50 100 150 200 Number of respondents Overall, attendees of Bertram Chain of Lakes athletic events were satisfied with the facilities (Chart 12). Chart 12: Satisfaction with Park Facilities, Bertram Chain of Lakes Athletic Event Attendees, 2023 Extremely satisfied Somewhat satisfied Neither satisfied nor dissatisfied 6 Extremely dissatisfied I 2 0 M 136 20 40 60 80 100 120 140 160 Number of respondents 7 While overwhelmingly satisfied with the facilities, when provided a list of items they would like to see improved, respondents most commonly selected "amenities" (Chart 13). Amenities included restrooms, access to water, and concessions, among other items. Chart 13: Items to Improve at the Park, Bertram Chain of Lakes Athletic Event Attendees, 2023 Amenities (restrooms etc.) 115 Parking 59 Other, please specify - 18 Pathway connections ■ 11 Field quality 09 Visitor information for planning , 6 Assistance 12 0 20 40 60 80 100 120 140 Number of respondents Survey respondents were invited to share suggestions via an open-ended question. Bathrooms received the highest number of suggestions (Chart 14). Attendees were interested in bathrooms located in a shelter with running water. There were also suggestions to have bathrooms at additional locations around the athletic facilities to get them closer to the fields. Concessions also received a significant number of nominations. Chart 14: Open -Ended Suggestions for Improvements to Park Facilities, Bertram Chain of Lakes Athletic Event Attendees, 2023 (responses with more than one response) Bathrooms (running water/more sites) Concessions Expanded water park/splash pad Additional/paved/closer parking Playground Shade Walkways/paved trails Signs for each field/better labeling Water bottle filling station Pavilions Bleacher seats Baseball fields Pickleball Visitor information for planning Hockey rink Football field Tent camping 37 21 14 14 12 - 10 7 6 5 4 4 4 2 2 � 2 2 Number of responses 2 0 10 20 30 40 8 There were a variety of ideas listed only once. These included a maze, an AED device, basketball hoops, volleyball nets, a driving range, beer, gardens, hiking, tables, recycling, a tennis court, and skate ramps. Party Size and Traveler Spending The number of people traveling to Monticello per travel party ranged, but most of the survey respondents came in parties of two to four people (Chart 15). The average across all survey respondents was 3.5 people. Chart 15: Number of People Per Travel Party, Bertram Chain of Lakes Event Attendees, 2023 1 person I = 11 2 people L 48 3 people 40 4 people 48 5 people 23 More than 5 13 0 10 20 30 40 50 60 Number of respondents By and large, respondents reported one to two of the people in their travel party participated in events at Bertram Chain of Lakes Regional Park (Chart 16). Those indicating "no one" included respondents such as grandparents who traveled separately to watch their grandchildren. The average across all respondents was 1.7 people. Chart 16: Number of People in Travel Party Participating in Event, Bertram Chain of Lakes Athletic Event Attendees, 2023 No one 06 1 person i 120 2 people �� 43 3 people 13 4 people 11 5 people 3 More than 5 . 6 0 20 40 60 80 100 120 140 Number of respondents 9 Economic Contribution of Athletic Events, Summer 2023 Economic impact includes direct, indirect, and induced effects. Direct effects are the initial change in the economy. For events, this is spending by attendees. It includes spending both at the event and at other businesses around the community. Indirect and induced effects are the economic activity generated at businesses throughout the region, even if they do not have visitors from the event. For example, soccer fans may not visit a local accountant, but that accountant might have a client who serves soccer fans at their business. Direct Effects: Visitor Spending For event economic impact studies, the analyst calculates the direct effect by multiplying the number of visitors by per person spending. The next section explains how Extension estimated the two components for this analysis. Number of Visitors For some situations, determining the number of visitors is simple. Ticketed events, for example, make it easy to track the number of people in attendance. Events with open gates (like youth soccer games), however, make attendance harder to measure. To measure the number of visitors at Bertram Chain of Lakes athletic events, Extension started with a list of events held throughout the summer. Events included soccer, lacrosse, and ultimate disc golf (Table 1). Table 1: Number of Attendees of Athletic Events at Bertram Chain of Lakes Regional Park, Summer 2023 Number Players Attendees Per Local Visiting Total of Events Per Player Attendees Attendees Attendees Soccer Team 10 and Under 15 9 2.5 338 338 676 12 and Under 14 11 2.5 385 385 770 14 and Under 6 13 2.5 195 195 390 16 and Under 3 13 2.5 98 98 196 Unknown 5 11 2.5 138 138 276 Youth jamboree 550 total 2.5 688 688 1,376 Lacrosse 8 and Under 3 12 2.5 90 90 180 12 and Under 6 12 2.5 180 180 360 14 and Under 2 12 2.5 60 60 120 Ultimate Disc Golf Adult 3 40 2.5 0 300 300 Total 2,170 2,470 4,640 From there, Extension estimated how many players would travel with a team. For example, a U16 soccer team has 11 players on the field at a time. It's likely additional kids are "on the bench," so Extension assumed the team carried the players on the field plus two additional players for each team (home and away). The survey data shows 2.5 people travelled per player. Therefore, for a single U16 team, there would be 33 people in attendance. There were also two major events in 10 M which Monticello provided total player figures — a soccer jamboree and three ultimate disc tournaments. Based on this approach, Extension estimates 4,640 people attended activities at the Bertram Chain of Lakes Regional Park athletic fields in the summer of 2023. Spending per Person Spending per person came from the attendee surveys. On average, attendees of athletic events at Bertram who do not live within the zip code spent $ 50.34 per day per person to attend their events (Table 2). In comparison, attendees from Monticello spent, on average, $38.30. Table 2: Average Spending Per Day Per Person, Monticello Bertram Chain of Lakes Athletic Events Attendees, 2023 Category Visitors Residents Lodging $0.04 $0 Transportation $11.30 $5.10 Shopping $11.90 $2.70 Groceries $10.10 $3.10 Dining Out $8.40 $1.60 Recreation/Attractions $1.50 $0 Athletic -related $6.20 $24.70 Misc. $0.90 $1.10 Total $50.34 $38.30 Given the number of attendees and the spending profiles, Bertram Chain of Lakes athletic event attendees spent an estimated $218,323 during summer 2023 (Table 3). This is the direct effect of the attendees. Table 3: Total Spending, Monticello Bertram Chain of Lakes Athletic Events Attendees, 2023 Category Total Spending Lodging $103 Transportation $40,470 Shopping $36,170 Groceries $32,660 Dining Out $24,530 Recreation/Attractions $3,590 Athletic -related $76,080 M isc. $4,720 Total $218,323 11 With indirect and induced effects included, Bertram Chain of Lakes athletic event attendees generated $317,433 in economic activity during summer 2023. The attendees supported 10 jobs in the community (Table 4). Table 4: Bertram Chain of Lakes Regional Park Athletic Event Attendees: Total Economic Contribution, 2023 Category Output Labor Income Employment Direct $218,323 $72,340 6 Indirect $67,920 $18,480 3 Induced $31,190 $8,760 1 Total $317,433 $99,580 10 Bertram Chain of Lakes athletic event attendees generated $317,433 in economic activity. Of that, $99,113 was created at businesses not necessarily visited by event attendees. The industries that benefited the most from the attendees (beyond direct visits) included real estate, utilities, and administrative and support services (Chart 17). Chart 17: Top Industries Affected, Bertram Chain of Lakes Athletic Event Attendees, 2023 Real Estate Utilities Administrative & Support - Insurance Carriers Professional & Technical Services Warehouse & Storage Restaurants & Bars Repair & Maint. Trucking Banking $0 $10,000 $20,000 $30,000 ■ Indirect Induced Real estate is a broad category, including items such as rents paid by businesses and mortgage payments by employees. Real estate is often one of the top industries impacted for two reasons. First, most businesses and employees spend money to occupy space. Second, most real estate needs are satisfied locally. When a Bertram Chian of Lakes athletic event attendee goes shopping at a local retail store, a significant share of that store's local spending is to occupy the building. Utilities also experience a fair share of the impact from athletic events in Monticello. As with real estate, retail stores pay to keep their stores cool during the summer, and the spending is with local utility companies. Restaurants and bars would also have similar expenditures for space and 12 for cooling. Retail stores and restaurants are primary places that Bertram Chain of Lakes athletic event attendees visit during their trips to Monticello. Opportunities to Increase Economic Impact The City of Monticello continues to invest in Bertram Chain of Lakes Regional Park, including the athletic fields. As these investments are made, the economic impact should also increase. In reviewing the survey results, Extension recommends the following to boost economic impact. Continue to host larger events, such as state tournaments. During summer 2023, Monticello did not host any "marquee" events, such as a state tournament. State tournaments have previously been held at the park. Further development will also make the facilities more attractive for event planners. Hosting tournaments will drive economic activity on two levels. First, it will attract more visitors. The one -day soccer jamboree attracted 550 youth to the fields. Holding another event that attracts hundreds of people across two days would increase spending. In addition, previous Extension studies have shown that overnight visitors spend more than day visitors. Logically, overnight visitors have lodging expenses, but they also spend more on meals and entertainment, as they are in the community for longer periods of time. For example, a recent Extension study of youth ice event attendees showed day trippers spent $64.50 per person, while overnight visitors spent more than double at $133.30. In the Monticello example, if overnight visitors spent twice as much as day visitors, the per person spending would increase to $101 per day. Adding one additional event with 5 50 participants would increase the economic impact of the athletic events to an estimated $635,500. • Develop marketing materials to drive attendees to other Monticello attractions. Compared with similar Extension studies, per person spending on dining out and recreation was lower among Bertram Chain of Lakes athletic event attendees. In addition, only about 20 respondents cited "dining options" and "things to do in Monticello" as the most enjoyable aspect of their trip to Monticello. This may have less to do with the dining and recreation opportunities in the city and more to do with an awareness level among attendees. Another contributing factor might be that many athletic event attendees drove shorter distances to attend and opted to return home. The city or its tourism partners may wish to develop marketing materials to target athletic event attendees. This may be as simple as a "fun things in Monticello" poster at the fields or a brochure to distribute during events. Demographics of Survey Respondents Survey respondents were primarily between the ages of 27 and 58, or of the GenX and millennial generations (Chart 18). 13 Chart 18: Age of Survey Respondents, Bertram Chain of Lakes Athletic Event Attendees, 2023 Millennials 55% GenZ Baby Boomers 3% 6% GenX 36% Survey respondents reported home addresses across Minnesota, but primarily within the Twin Cities metro area (Map 1 and Table 5). Map 1: Home Zip Code Locations of Survey Respondents, Bertram Chain of Lakes Athletic Event Attendees, 2023 14 The highest share of attendees came from Wright, Sherburne and Stearns Counties. Table 5: Respondents by County of Residence, Bertram Chain of Lakes Athletic Event Attendees, 2023 County Number of Responses Wright 77 Sherburne 47 Stearns 34 Hennepin 9 Ramsey 7 Benton 5 Carver 5 Anoka 4 Scott 4 McLeod 3 Grant 2 Mille Lacs 2 Douglas 1 Isanti 1 Meeker 1 Otter Tail 1 Renville 1 Sibley 1 Sanders (MT) 1 Survey respondents were more likely to be female (Chart 19). Chart 19: Gender of Survey Respondents, Bertram Chain of Lakes Athletic Event Attendees, 2023 Male 32% emale 68% Respondents were primarily White, non -Hispanic (Charts 20 and 21). 15 Chart 20: Race of Survey Respondents, Bertram Chain of Lakes Event Attendees, 2023 Asian Black or African � I1% Two or more American / races 1% I 1% White 97% Chart 21: Hispanic or Latino Ethnicity, Bertram Chain of Lake Athletic Event Attendees, 2023 Yes 8% ill No 92% End Notes 'Tourism Economics. (2019). Sports tourism: state of the industry report 2019. Retrieved from http s: //www. sportseta.org/liortals/sportscommissions/Documents/Reports/TourisniEconomics%20- %20Snorts%20ETA%20SOTI%20%20FINAL_82620.pdf Learn more about the Department of Community Development at extension.umn.edu. 16 Appendix 1: Bertram Chain of Lakes Regional Park Athletic Event Attendee Questionnaire 1. Is today's athletic event your primary reason for traveling to Monticello? ❑ Yes ❑ No 2. Do you live in zip code 55362? ❑ Yes, please move to Question 6 ❑ No, please continue with Question 3 3. Prior to today, have you ever visited Monticello? ❑ Yes ❑ No 4. How likely are you to make a return trip to Monticello in the next 12 months? (Check ONLY 1) ❑ Very likely ❑ Likely ❑ Unsure ❑ Unlikely ❑ Very unlikely 5. What would be the main reason(s) for your return trip to Monticello? (Check all that apply) ❑ Dining ❑ Shopping ❑ Sightseeing or Recreation ❑ Attending another athletic event ❑ Another visit to Bertram Chain of Lakes Park ❑ Other (Please specify: __________________) 6. Please estimate your travel group's spending in Monticello during the past 24 hours (*For Monticello residents, include spending only related to the use of the athletic fields): Lodging $ ________ Transportation (includes gas) $________ Shopping $ _ Groceries $________ Restaurants/Bars $ ________ Recreation/attractions $ ------- Athletic-related activities $ _____ On-site concessions $__________ Misc. $ (explain:_________) 7. How many people (including yourself) are included in your spending estimate? 8. How many of those people participated in the athletic event you traveled to Monticello for? 9. Have you visited or will you visit other areas of Bertram Chain of Lakes Park beyond the athletic fields on this trip? ❑ Yes ❑ No 10. Are you aware of the other activities available at Bertram Chain of Lakes Park, including (Check all the apply)? ❑ Swimming ❑ Camping ❑ Kayaking ❑ Mountain biking ❑ Trails ❑ Other (Please specify: 11. Did you or will you spend a night away from home on this trip? ❑ Yes, please continue to Question 12 ❑ No, please move to Question 15 12. How many nights, in total, did you or do you plan to spend away from home during this trip? ____ nights 13. If you stayed or are staying in Monticello, which type of accommodation did you use? ❑ Hotel/motel ❑ Resort/commercial cabin ❑ Vacation rental by owner ❑ Bed & Breakfast ❑ Bertram Chain of Lakes campground ❑ Other RV/camping location ❑ Home of a friend/relative ❑ Other, please specify 14. If you stayed or are staying in another community, what was your primary reason for selecting that location? (Check only 1) ❑ I could not find an available hotel room(s) in Monticello ❑ I found a lower cost option in another community ❑ I found a higher quality option in another community ❑ I selected based on my loyalty to a certain hotel brand (ex. Hilton Honors) ❑ I found accommodations with -or- closer to family and/or friends ❑ My preferred type of accommodation (ex. VRBO) is/was not available in Monticello, please list your preferred accommodation here ___________________ ❑ Other, please specify ____________________ Please skip to Question 16 15. What factors did you consider in your decision to not spend the night in during your trip? (Check all that apply). ❑ I attended a one -day activity that did not require a hotel stay ❑ Due to distance, I opted to drive to/from home ❑ I could not find an available hotel room(s) in Monticello ❑ Available rooms were outside of my budget ❑ I preferred a higher quality hotel ❑ The hotel brand (ex. Hilton) I preferred was not available ❑ I found accommodations with -or- closer to family and/or friends ❑ Other, please specify ____________________ 16. What are (were) the most enjoyable aspects of your trip to Monticello? (Check all that apply) ❑ Quality of the athletic facilities ❑ Being outdoors Lakes Park ❑ Dining options community ❑ Hotel accommodations ❑ Other, please specify ❑ Things to do in the community ❑ Activities/amenities in Bertram Chain of ❑ Customer service/friendliness of the ❑ Location in relationship to the Twin Cities 17. If you could select one item to improve at the athletic park, what would it be? ❑ Field quality ❑ Parking ❑ Amenities (restrooms/water/concessions) ❑ Pathway connections ❑ Visitor information for planning ❑ Assistance ❑ Other, please specify - 18. Overall, how satisfied are you with the Bertram Chain of Lakes athletic facilities in Monticello? (Check ONLY 1) ❑ Very satisfied ❑ Satisfied ❑ Unsure ❑ Dissatisfied ❑ Very dissatisfied 19. If Monticello were to develop additional facilities at Betram Chain of Lakes, what features would you like to see? Finally, a few questions about you. What is your zip code? ________ In what year were you born? ❑ Male ❑ Nonbinary What is your annual household income (before taxes)? ❑ Less Than $25,000 ❑ $25,000-49,999 ❑ $50,000-$99,999 more What is your gender? ❑ Female ❑ $100,000-149,999 ❑ $150,000 or Are you of Hispanic, Latino, or Spanish origin (check one)? ❑ Yes ❑ No What is your race? (Check all that apply) ❑ American Indian or Alaska Native ❑ Asian ❑ Black or African-American ❑ White ❑ Native Hawaiian or Other Pacific Islander ❑ Multiracial ❑ Other (Please specify __________________) Thank you for your participation!! Date Time © 2023, Regents of the University of Minnesota. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this publication/material is available in alternative formats upon request. Direct requests to 612-625-8233. City Council Agenda: 12/11/23 2Q. Consideration of accepting the 2023 Bertram Chain of Lakes Regional Athletic Park Economic Impact Analysis Prepared by: Meeting Date: ® Consent Agenda Item Community Development Director 12/11/23 ❑ Regular Agenda Item Reviewed by: Approved by: Parks & Recreation Director, Economic City Administrator Development Manager ACTION REQUESTED Motion to accept the 2023 Bertram Chain of Lakes Regional Athletic Park Economic Impact Analysis. PREVIOUS COUNCIL ACTION May 8, 2023: Approved Economic Impact Analysis at the Bertram Chain of Lakes Regional Athletic Park (BCOLAP) REFERENCE AND BACKGROUND The University of Minnesota has completed a 2023 economic impact analysis to quantify the economic impact of the athletic park on the Monticello community. During the summer of 2023, the volunteers trained by the University of Minnesota collected over 250 user surveys at the Bertram Chain of Lakes Regional Park. The survey was developed specific to Monticello and Bertram in a collaborative effort between the experts at the U of M Tourism Center and the Parks & Recreation and Community & Economic Development staff. The U of M study yielded the following information: • How much do sports tourists spend in the community during their visit? The study indicated that athletic events at the regional athletic park were the primary reason for travel to Monticello, with over 73% of the total surveyed visiting from outside of zip code 55362. Approximately $49.15 is spent per person per day as a result of athletic event visits, with out-of-town visitors spending slightly more per day. It is important to note that the athletic events at BCOL this year were mostly single -day local soccer and lacrosse events. No state tournaments were held at the park. • Which businesses directly benefit from sports tourists? Spending by sports tourists and their travel parties at Monticello businesses was highest in the transportation, shopping, groceries, and dining categories. City Council Agenda: 12/11/23 • Which businesses indirectly benefit from sports tourists? Indirect spending is spending multiplied in the community — for example, a visitor buys dinner at a local restaurant. That restaurant then makes purchases from its food supplier. The study also looked at induced impact, which is the impact of income spent by an employee of a business where the visitor spending occurs. The U of M study indicates that almost $100,000 in indirect and induced spending resulted from the 58 events surveyed this summer. In total, direct, indirect and induced spending in Monticello was over $317,000. • What opportunities exist to increase the economic benefits of sports tourism in Monticello? Given that events at the park were more locally -focused, fewer hotel nights were generated and there was less available data on loss of revenue to adjacent communities. However, the survey did yield information on the opportunity to capture more time in Monticello, both at the park itself and at local businesses. In addition to the data above, the survey also provided other important estimates and insight, including: • An estimated 4,640 people attended the 58 events at BCOLAP this summer. • Park visitors were overwhelmingly satisfied with their experience at the park, with over 97% stating they were somewhat or extremely satisfied. The majority of visitors were also likely to visit Monticello again. • Those surveyed provided valuable information on those amenities most desired as future improvements at the park. Ranked highest were restrooms and concessions. The data resulting from the analysis is and will be valuable as the City continues to evaluate the phasing and budgeting for BCOLAP and communicating the overall economic contribution of the park to the community. The Bertram Chain of Lakes Regional Athletic Park (BCOLAP) is a significant recreational resource for the Monticello community. Since 2008, the City has invested in the acquisition of land and later the phased development of improvements at the athletic park in an effort to achieve multiple goals — providing a high-quality recreational experience for the community, consolidating and efficiently providing active field space, and furthering economic opportunity through regional athletic play. I. Budget Impact: The total project budget authorized was $14,000 and included both the U of M and staff work. The U of M study cost was estimated at $7,000, of which the U of City Council Agenda: 12/11/23 M has invoiced $6,000 to date. The U of M indicated that if the City is successful in bidding for a state tournament at BCOLAP in 2024, they will complete a second mini - study for that event and invoice for the remaining amount. An additional $7,000 was budgeted for staff time to complete the survey work, of which $1,000 was spent on survey work at the park. The EDA authorized $3,000 of the estimated $14,000 expenditure for the project. II. Staff Workload Impact: Community Development and Parks and Recreation were involved in the survey development and deployment. Total staff time, including paid hourly part-time employees, is estimated at 75 hours. III. Comprehensive Plan Impact: The Monticello 2040 Plan's Parks & Pathways chapter states that Monticello's parks system is "anchored by the 1,500 -acre Bertram Chain of Lakes Regional Park". The chapter includes specific goals for securing adequate long- term funding for maintenance and investment in existing parks and pathways completing the phased development of Regional Athletic Park at the Bertram Chain of Lakes and promoting its use and enjoyment. The study has provided the community with concrete data on the economic value of this recreational resource. PARC REVIEW The Parks, Arts, and Recreation Commission (PARC) had the opportunity to review the final report on November 28, 2023 and hear a presentation by report author Brigid Tuck. The PARC indicated satisfaction with the study and recommended no additional direction or change to the findings. STAFF RECOMMENDED ACTION Staff recommend acceptance of the Economic Impact Analysis for BCOLAP. The Bertram Chain of Lakes is already recognized for its intrinsic value as a natural and recreational resource for the community. The Economic Impact Analysis provided the City with specific technical data on its value as an economic draw for the community and recommendations for further leveraging the potential of the park for economic development. The report will also be provided to the EDA. SUPPORTING DATA A. Economic Impact of Betram Chain of Lakes Regional Athletic Park, 2023 B. U of M PARC Presentation Slides C. Bertram Chain of Lakes Master Plan Map EDA Agenda: 12/13/23 5A. Proiect Update Block 52 Mixed Use Commercial -Residential Redevelopment: Interior finish work is occurring on all floors of the upper four floor (residential units). The pace of the project continues to move along with a potential for CO issuance in mid to late February 2024. The build out of an approximately 11,000 square foot office area on the ground floor is anticipated to begin soon as well. The developer informed City staff that a lease has been signed with an office user tenant that has intentions to locate 102 employees at this location. Discussions are also continuing with prospective restaurants and other commercial tenants. Per the MN -DEED Redevelopment Grant, a total of 45 new FTE jobs will be required to be created by the new businesses that occupy the building. This objective looks achievable. Headwaters Villa Twin homes: The 60 -unit twin home housing development project for ages 55 + on 7t" Street West is progressing with modular units being placed on the foundations. A Certificate of Occupancy was issued recently for one unit with more expected by late December. Work on the balance of the units will continue into 2024. Headwaters Apartments: Headwaters has applied for a significant PUD modification. They are hoping to get approval eliminating the 102 -unit apartment building (ages 55 +) and replace it with 22 twinhomes (value of $6,000,000 +/-). The Planning Commission will consider the PUD amendment at a meeting in early 2024. The EDA will also have to consider amendments to the TID District 1-42 TIF Plan and the Contract for Private Development that it entered into with Headwaters Development. Staff are treating the significant changes as a new TIF application review process. Headwaters has been instructed to complete a new TIF application describing the development changes. As of this date, we are awaiting the receipt of the TIF application. Headwaters has also indicated that it may seek another site in Monticello for a modest sized 55 + apartment building Wiha Tools Warehouse Facility Development: Construction of Wiha Tools' new 74,000 square foot assembly and warehouse facility EDA Agenda: 12/13/23 development also continues. The projected completion date is now projected into The January - February 2024 timeframe. The new 75,000 sq. ft. 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. A second phase expansion of 79,000 sq. ft. is projected to occur in about 2028 or 2029. An additional 21 FTE jobs are expected to be created in Phase 2, increasing the total workforce to approximately 142 +/-. Other Development Activity: Briggs Properties, a multi -family residential developer, received development stage PUD approval (1St step with more to come) for a 150 -unit apartment building along 7th Street West. The developer stated that the currently low vacancy rates indicate that there is still more need for apartment units. The project is expected to be a phased development over a three-year period starting in late 2024. It has been quite active recently for additional industrial development proposals as well as several ideas are being discussed at a preliminary level for various sites in Monticello. Since this is very preliminary, it may take up to 10 to 15 months before final decisions are made to move ahead on these proposals. 2 Date of Contact /22/201 /29/20 128/201 /9/201' t16/203 (20/202 30-22 2/16/2021 3/19/2021 2/28/2022 6/16/2021 6/30/2021 7/29/2021 10/28/2021 2/7/2022 Company Name Business Category Project Description IL Karlsburger Foods Food Products Mfg. Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. Project Nutt Co -Working Space Existing Building Project FSJP Light Mfg -Res. Lab New Construction Project Jaguar Office New Construction Project Panda v3 Service -Child Care New Construction Project TDBBST Industrial New Construction Project Cold Industrial -Warehouse -Di New Construction stri Project Orion Warehouse-Distributi New Construction on Project Emma II Light Ind -Assembly New Construction Project UBAA Child Care Services New Construction or Exist Project Ecosphere Industrial Tech Mfg. New Construction Project BA710 Lt Assem-Distribute IProject Stallion Technology Service Project Shepherd Lt Assembly Distribution III 12/01/2023 0 9 $1,850,000 Concept Stage Building -Facility i Retained lobs New lobs Total Investment Project Status 80,000 sq. ft. 0 21 $12,000,000 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold Active Search 20,000 sq. ff. 20 4 $1,350,000 12,000 sq. ft. 5,000 sq. ft. 10 $1,200,000 Concept Stage ? ? ? ? Concept Stage 20,000 sq. ft. 0 20+/- $1,400,000 Active Search 22,000 sq. ft. 22 4 $2,700,000 Active Search 10,500 sq. ft. 0 21 $4,100,000 Active Search 10,000 to 15,000 sq. 0 9 $1,850,000 Concept Stage ft. 80,000 sq. ft. 0 21 $12,000,000 Concept Stage 832,500 sq. ft. 0 500 $125,000,000 Active Search 20,000 sq. ff. 0 4 $1,350,000 Active Search 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search New Construction 6,500 to 7,000 sq. ft 0 10 New Construction 42,000 sq. ft. 40 New Construction 75,000 sq. ft. 75 $650,000 Active Search $3,600,000 Active Search $10,500,000 Active Search PROSPECT LIST 12/01/2023 Date of Contact Company Name Business Category Project Description Building -Facility Retained lobs New lobs Total Investment Project Status 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 DC3 Lodging Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 5/30/2023 Project Flower -M &M Commercial Concept Expansion ? ? ? ? Concept 6/9/2023 Project Pez low_ New Construction 6,000 to 8,500 sq. ft. 12 2 $1.300,000 Active Search 7/1/2023 Project V Mfg New Construction 150,000+sq. ft. ? $16,000,000 Active Search 8/16/2023 Project Lodge RT4 Lodging-Hopsitality New Construction ? N/A ? $11,500,000 to $14,500,000 Active Search 8/31/2023 Project Enclave- W300 Industrial - Warehouse- Distr New Construction 300,000 sq. ft. N/A ? $30,000,000 to $34,000,000 Active Search PROSPECT LIST 12/01/2023 Date of Contact Company Name Business Category Project Description Building-Facility Retained lobs New lobs Total Investment Project Status 9/19/2023 Project Panda #4 SZ Childcare Facility New Construction ? N/A ? $2,000,000 +/- Active Search 10/12/2023 Project Fun Entertainment Expansion 2,400 sq. ft. N/A 4 $200,000 Concept Contacts: M = 03 YTD = 27