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EDA Agenda - 01/10/2024AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 10, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING 5:15 p.m. • Block 34 Property Update • Environmental Studies • Long Term Development Vision • Process Discussion 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 Regular Meeting Minutes— December 13, 2023 C. Consideration of Approving Workshop Meeting Minutes — December 13, 2023 3. Public Hearing N/A 4. Regular Agenda A. Consideration Greater Monticello Enterprise Fund (GMEF) Loan Pre -Application in the amount of $300,000 from Deephaven Development for commercial property improvements at 101 West Broadway B. Consideration of Authorizing entering into Professional Services Contract with WSB & Associates in the amount of $8,400 for completion of Phase I Environmental Site Assessment (ESA) and ARM (Asbestos and Regulated Materials) Survey of 216 Pine Street C. Consideration of Authorizing entering into a Professional Services Contract with WSB & Associates in the amount of $4,800 for completion of a Phase I Environmental Site Assessment (ESA) of 118 East Broadway D. Consideration of Authorizing an Amendment to the Downtown Fagade Improvement Forgivable Loan Program Guidelines and Eligibility Area 5. Other Business A. Consideration of Economic Development Manager's Report 6. Adjournment EDA Agenda: 1/10/2024 2A. Consideration of Approving Payment of Bills Prepared by: Meeting Date: ❑ Regular Agenda Item Community & Economic Development 1/10/2024 ® 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 December 2023. 2. Motion to approve payment of bills through December 2023 with changes as directed by the EDA. STAFF RECOMMENDATION: Staff recommend approval of Alternative 1. SUPPORTING DATA: A. Accounts Payable Summary Statements for December. Accounts Payable Transactions by Account User: julie.cheney Printed: 12/07/2023 - 8:45AM Batch: 00202.12.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-00000-157010 LAND TITLE INC Purchase Proceeds of RW Bank Parcel 12/12/2023 127885 420,093.47 Vendor Subtotal: 420,093.47 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA- Oct 2023 12/12/2023 127884 2,762.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] 7th St W Parcel Acquisition from Rive 12/12/2023 127884 484.50 213-46301-430400 KENNEDY AND GRAVEN CHAR] 216 Pine St Acquisition -Oct 2023 12/12/2023 127884 1,198.25 Vendor Subtotal: 4,444.75 Subtotal for Fund: 213 424,538.22 Report Total: 424,538.22 AP -Transactions by Account (12/07/2023 - 8:45 AM) Page I Accounts Payable Transactions by Account User: julie.cheney Printed: 12/21/2023 - 12:27PM Batch: 00203.12.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431990 WSB & ASSOCIATES INC Phase 1 EDA - Riverwood Bank Parcc 12/22/2023 0 720.00 Vendor Subtotal: 720.00 213-46301-431990 ALL ELEMENTS BLK034 - Roof Inspection @ 216 Pini 12/22/2023 0 250.00 Vendor Subtotal: 250.00 213-46301-431993 WSB & ASSOCIATES INC 2023 Economic Development Service: 12/22/2023 0 1,712.50 Vendor Subtotal: 1,712.50 213-46540-465110 GRANITE CITY REAL ESTATE Pay As You Go - 2nd Pmt 2023 12/22/2023 127948 31,508.80 Vendor Subtotal: 31,508.80 Subtotal for Fund: 213 34,191.30 Report Total: 34,191.30 AP -Transactions by Account (12/21/2023 - 12:27 PM) Page 1 Accounts Payable Transactions by Account User: julie.cheney Printed: 12/19/2023 - 1:23PM Batch: 00201.12.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-432200 US BANK CORPORATE PMT SYS US POSTAL SERVICE - Postage - Pk 12/15/2023 0 8.85 Vendor Subtotal: 8.85 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 12/15/2023 0 29.75 213-46301-438200 CITY OF MONTICELLO 7256-015 - 216 Pine St - EDA 12/15/2023 0 31.18 Vendor Subtotal: 60.93 213-46301-443990 US BANK CORPORATE PMT SYS DOMINOS PIZZA LLC - Pizza for EI 12/15/2023 0 40.69 213-46301-443990 US BANK CORPORATE PMT SYS MONTICELLO CHAMBER OF CON 12/15/2023 0 35.00 Vendor Subtotal: 75.69 Subtotal for Fund: 213 145.47 Report Total: 145.47 AP -Transactions by Account (12/19/2023 - 1:23 PM) Page 1 Accounts Payable Transactions by Account User: julie.cheney Printed: 01/02/2024- 4:11PM Batch: 00204.12.2023 Account Number Vendor Description Monticello GL Date Check No Amount PO No 213-46301-431991 DEMVI LLC Parking Lot Maintenance - Dec 2023 12/31/2023 0 213.86 Vendor Subtotal: 213.86 213-46301-438100 CENTERPOINT ENERGY 12045691-8 - 216 Pine St - EDA 12/31/2023 0 35.74 Vendor Subtotal: 35.74 Subtotal for Fund: 213 249.60 Report Total: 249.60 The preceding list of bills payable totaling $459,124.59 was approved for payment. Date: 1/10/24 Approved by: Hali Sittig - Treasurer AP -Transactions by Account (01/02/2024 - 4:11 PM) Page I MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, December 13, 2023 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: 011ie Koropchak-White Staff Present: Executive Director Jim Thares, Angela Schumann 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello Economic Development Authority (EDA) to order at 6:00 p.m. B. Roll Call 6:00 a.m. Mr. Johnson called the roll. C. Consideration of Additional Agenda Items Executive Director Jim Thares noted that an item should be added to the agenda, and suggested that it be listed as item 4B. 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Aaarovine Workshoo Meetine Minutes — Seotember 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 Adootine Resolution No. 2023-15 aaarovine 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 LLOYD HILGART MOVED TO APPROVE THE DECEMBER 13, 2023, REGULAR MEETING CONSENT AGENDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 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 President Steve Johnson stated that he was asking Vice President Jon Morphew to lead the EDA through the discussion of this specific agenda item as it is consideration of reappointing Steve to the EDA for another 6 -year term. Mr. Thares provided an overview of the agenda item to the EDA and the public. Mr. Johnson's current term ends on December 31, 2023, and the EDA is asked to consider reappointment of the commissioner to the EDA for a six-year term. TRACY HINZ MOVED TO RECOMMEND REAPPOINTMENT OF STEVE JOHNSON TO THE EDA FOR A SIX-YEAR TERM ENDING DECEMBER 31, 2029. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5-01 WITH STEVE JOHNSON ABSTAINING FROM THE VOTE. Added Item B. Consideration of Authorizine a 510.000 Grant ADDlication Submittal to the Initiative Foundation for Environmental Studies in Block 34. Mr. Thares provided an overview of the agenda item to the EDA and the public. The proposed grant funding would be paired with EDA dollars to cover the cost of several environmental studies that have been identified as "must do/need to complete" work in Block 34. JON MORPHEW MOVED TO AUTHORIZE A $10,000 GRANT APPLICATION SUBMITTAL TO THE INITIATIVE FOUNDATION (IF) TO OFFSET THE COST OF NECESSARY ENVIRONMENTAL STUDIES IN BLOCK 34. 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 EDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 6:28 P.M. MINUTES MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP Wednesday, December 13, 2023 – 5:00 p.m. Monticello Community Center – Academy Room Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: 011ie Koropchak-White Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. Call to Order President Steve Johnson called the workshop meeting of the Monticello Economic Development Authority to order at 5:00 p.m. Mr. Johnson Called the roll. 2. EDA Property Maintenance Discussion Community Development Director Angela Schumann provided an overview of the agenda item to the EDA and the public. In regard to the EDA owned property at the corner of Cedar Street and East Broadway Street, City staff is scheduled to go out and clean up the site of debris and the broken fence along the North property line. Mr. Johnson noted that if the property is needed for snow storage through the winter, that would not be a concern to the EDA. Mr. Johnson asked if they plan to remove any of the trees currently on that site. Ms. Schumann said that there will be no trees removed from the site at this time. Vice President Jon Morphew asked if staff had determined the fence along the North property line was in fact on the EDA's property. Ms. Schumann clarified that staff received a right -of -entry from the adjacent property owners to remove the fence. 3. EDA Property Review—Summary Report Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. In November, the EDA held a workshop to review their current land holdings within the City and discussed development priorities for each of their sites. City staff provided a summary of that meeting to the EDA, and the EDA was asked to review the summary and provide any additional feedback from the discussion. Staff noted that the Summary Report will essentially become part of the EDA Workplan (the 2022-2024 Workplan). 4. Downtown Facade Improvement Loan Program Mr. Thares provided an overview of the agenda item to the EDA and the public. City staff received an application for the Fagade Improvement program from an owner of a property that is currently outside the eligibility area as defined in the program's policy. In response to the submittal of the application, the EDA will be asked to consider amending the eligibility area. Councilmember Tracy Hinz asked what the existing balance is for the program. Mr. Thares clarified that the EDA originally allocated $250,000 for the program, and only $50,000 of that total has been used to this point. In the event that the demand for the program exceeds what has already been allocated, the EDA has the opportunity to consider allocating more funds, if necessary. Treasurer Hali Sittig noted that given the construction happening in the near vicinity, it seems realistic for the EDA to discuss expanding the eligibility area for the program downtown. Erika Fisher, 109 Walnut Street, Monticello, MN 55362, addressed the EDA and the public. Ms. Fisher noted that she submitted a Facade application for her property that is currently outside the existing eligibility area for the program. Given the building is adjacent to the EDA's redevelopment project, Ms. Fisher asked the EDA to consider amending the eligibility area, so adjacent properties can improve their existing buildings along the Walnut Street corridor. S. Tax Abatement Scoring Mr. Thares provided an overview of the agenda item to the EDA and the public. The scoring sheet was created to reflect similar criteria for scoring Tax Increment Financing district applications. The EDA was asked to review the scoring criteria and provide their thoughts on whether the criteria made sense, or if changes should be made. 6. Adjournment TRACY HINZ MOVED TO ADJOURN THE WORKSHOP MEETING OF THE MONTICELLO EDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 5:58 P.M. EDA Agenda: 1/10/24 4C. Consideration of Greater Monticello Enterprise Fund (GMEF) Loan Pre -Application from Deephaven-Simplicity in the amount of $300,000 Prepared by: Meeting Date: ❑x Regular Agenda Item Economic Development Manager 1/10/24 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development Director, City Administrator Community Economic Development 15.00 Coordinator $2,000,000 ACTION REQUESTED Motion to authorize staff to proceed with further due diligence related to the loan credit request and preparation of a loan agreement for consideration at a future meeting. Motion of other. REFERENCE AND BACKGROUND The EDA is asked to consider a GMEF loan pre -application request in the amount of $300,000 from Deephaven Development for commercial property improvements at 101 West Broadway (Block 52 building). The property improvements are for the build out -finish of a 13,303 square foot office space on the ground floor for Simplicity Group, a financial service and wealth enhancement firm. Simplicity Group is a national firm and has decided to increase its scale and presence in the greater Twin Cities metro area. They have committed to a 10 -year lease in the building and are expected to house 102 FTE employees at this location. While Deephaven previously secured financing from its lender and the EDA in the form of the gap funding "Authority Grant" to complete the majority of the development; the build out of the office space is a separate work component and financial consideration. The cost of the entire office buildout for Simplicity Group is $2,000,000 or $150.00 per square foot. Deephaven has secured bank financing for 67.5 percent of the total project cost and is contributing cash equity equal to 17.5 percent of the dollars needed to complete the build out. It is seeking a GMEF gap funding loan in the amount of $300,000 (15 percent) to cover the balance. A summary of the proposed funding sources for the buildout project is shown below. Sources Amount Percent Bank $1,350,000 67.50 Dev Cash Equity $ 350,000 17.50 GMEF Loan $ 300,000 15.00 Total $2,000,000 100.00 EDA Agenda: 1/10/24 As noted in the application materials, the project will result in 102 FTE employees being housed in the office. While the GMEF has in the past been more commonly used to fund manufacturing or other business -specific equipment, the proposed use of funds will support an influx of employment into the downtown during daytime hours. The improvements will enhance the significant investments, both public and private, on the block. The new workers downtown may also bring economic spin-off impacts to other businesses and existing and future restaurants near Block 52. The taxable market value of the entire property is likely to increase as well due to the significant additional improvements being completed at the building. Currently, the GMEF Loan Fund cash balance is approximately $1,055,000 +/-. Deephaven Development's proposal is an eligible use of the funds. Since Deephaven is not responsible to create the new jobs, it will have to engage with its new tenant (formally or informally) to complete annual reports documenting compliance with the Business Subsidy statute. It should also be noted that the GMEF Loan Polices state that no more than 50 percent of the funds can be loaned out to a borrower and only 30 percent of a project can be funded from GMEF dollars. As noted above, the Deephaven request is for 15 percent of the project and comprises 28.5 percent of the GMEF Loan Fund. I. Budget Impact: The budget impact from the proposed GMEF Loan request is a direct reduction in the balance of the loan fund. The funding would draw the Fund down to $755,000 +/-. Other potential future borrowers may be constrained somewhat due to the size of this request if it is ultimately approved by the EDA. The EDA has incurred no costs in the review of the pre -application. If the EDA determines it is interested in moving forward, attorney fees and loan review -underwriting fees will be incurred, though most, if not all, of those costs will be passed onto the applicant. II. Staff Workload Impact: The Community Development Director and Economic Development Manager have committed time to completing tasks related to the review of the proposed loan request. Additional time toward this effort involves report preparation and EDA meeting presentation. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: The Economic Development section of the Comprehensive Plan encourages formation of an effective economic development effort which creates a supportive business environment and builds a vibrant, thriving local economy. The Monticello 2040 Vision + Plan's Vision and Values statements support a vibrant Downtown, and the 2017 Downtown Small Area Plan specifically notes a mix of uses is critical, including those active at varying times of day. Utilization of the various EDA funding programs and tools for quality proposals is an actionable step in fulfilling the Vision and Downtown Small Area Plan's objectives. EDA Agenda: 1/10/24 STAFF RECOMMENDATION Staff defer to the EDA regarding next steps related to the GMEF Loan request from Deephaven Development. The loan request meets the general intent and spirit of the GMEF Loan Policies. An initial review of the Development Assistance Worksheet Scoring form for the proposal using a limited amount of available information indicates the proposal carries a score of 33.5. This is comparable to UMC and Wiha Tools' recent expansion scores. This initial review is a critical decision point in regard to moving to the next step of a full-blown application as well as incurring costs related to underwriting -loan analysis and drafting of loan documents. SUPPORTING DATA A. Deephaven —Simplicity GMEF Loan Pre -Application B. GMEF Loan Policies C. EDA UNDS Financial Statement -09-30-23 Requested Information below - 1. A map showing the exact boundaries of proposed development. See attached boundary map, plat map of Block 52, and floorplan for the proposed Simplicity Insurance Office 2. Give a general description of the project size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. The proposed business type is Insurance related business, the projected vehicle counts is estimated to be between 80-100 vehicles. The project is estimated to begin _January 2024 and be completed by_July, 2024 . The overall cost of the office construction is estimated to be two million dollars . The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. The proposed project is located within the Broadway and Riverfront Sub -Districts in the Central Community District (CCD). More specifically, the project will occur within the Block 52 PUD District which has previously been approved by the City of Monticello for a "Mixed -Use" Building consisting of 87 Residential Apartment Units and approximately 30,000 Sq Ft of Commercial Office and Retail Use. The subject property will be utilized as Insurance based general office use and as such, conforms to the CCD land use designation. The space will account for 13,303 square feet of commercial space or approximately 45 % of the overall commercial space. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. The Increment assistance will be used as a critical source of "gap funding" for the project. In the early stages of negotiating with Simplicity Insurance they were admittedly evaluating several locations both inside and outside the Monticello market. In addition to evaluating locations based on a variety of criteria. However, an emphasis was placed on being able to work with a Developer capable of delivering a "turnkey" Class A office space, while limiting their out-of-pocket expenses in exchange for a long-term commitment. As the Developer we have committed $1,166,400.00 dollars towards the construction of Simplicity's new office space (For reference we have included a copy of the proposed floor plan, which will occupy the entire "Broadway Wing" of the Block 52 Building). Our intentions are to utilize the low interest increment financing from the EDA as "gap funding" along with a combination of cash and conventional financing to fund the completion of this project. For further perspective, the total amount of tenant improvements being requested by Simplicity equates to the equivalent of just under 4 of the 10 years of base rent being paid by Simplicity. Even with the proposed funding request from the EDA this creates a substantial financial challenge, however as we have stated from the outset, we have always viewed the Block 52 project as a long-term investment and securing a quality business such as Simplicity will provide a firm foundation to the commercial portion of the development. The addition of Simplicity will serve as incubator for future commercial uses and the 80-100 employees will inevitable be customers of other future retailers/businesses/restaurant that locate within Block 52 as well as for other businesses that are located within the downtown Monticello corridor. It has always been our belief that the ongoing success of Block 52 will be contingent upon our ability to attract both office and retail as both uses provide substantial synergy to between them. The addition of a high-quality business such as Simplicity Insurance to the Block 52 development will undoubtedly contribute to the overall vibrancy and sustainability that the City of Monticello has been seeking for the downtown corridor. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to created, hourly wages and other community assets. As mentioned above creating/maintaining an additional 80-100 jobs that will pay in the range of _$40,000-$100,000 will be a boost to the downtown business corridor and the addition of these employees will undoubtedly be serve as customers of the existing and future businesses and retailers located within the downtown corridor. Once open Simplicity Insurance will be one of the largest employers within the Monticello downtown business district. 6. A written description of the developer's business, principals, history, and past projects Buchholz Properties has been active in the Monticello Market since acquiring the 20 -acre development in 2019 from Premier Bank known as Deephaven, which is a part of the greater Pointes at Cedar master development. Other notable projects within the Deephaven Development are the 165 -market rate multifamily residential units, Healing Moments Counseling Center, and most recently the West Metro Medical Office Building. Other projects within the Monticello market include the Block 52 Mixed Use Development and the 6" Street Station. Outside of the Monticello market Buchholz has been involved in the development and acquisition of a variety of real estate projects throughout the tri-state area (Minnesota, North Dakota, South Dakota). Buchholz prides itself on principles of hard work, honesty, and a willingness to seek out and incorporate input from communities that they develop within. I understand the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the requests for assistance. If the initial application fee is insufficient, I will be responsible for additional deposits. I further understand that by signing below, should the original escrow be exceeded, the applicant or responsible party will be billed for additional services. In signing the acknowledgement below, the applicant is indication that the have not relied on the estimate of fees in their decision to proceed with the application. If payment is not received as required by this agreement, the City will process to recover payment by action of assessment or a lien against the property. Payment of the cost sill be required whether the application is granted or denied. SIGNATURE Applicants signature: Date: January 3, 2024 Prolect Information: 1. Have you ever filed for bankruptcy? NO Have you ever defaulted on any loan commitment? NO 3. Have you ever applied for conventional financing for the project? There is currently a first mortgage on the overall Block 52 project in the amount of $17,100,000.00. We are in the process of increasing this amount by approximately $ 2,000,000.00 due to project delays and increased input costs. The increased mortgage is being sought in order to complete the remainder of the construction on the overall building and is unrelated to construction involving Simplicity Insurance 4. List Financial References: a. Marc Knutson (Western State Bank) mobile (7011-306-1490 email Marc.Knutson@bankforward.com b. Jordan Cook (Boarder Bank) mobile (701)-526-1130 email Jordan.cook@boarder.bank C. Adam Braunberger (American Federal Bank) mobile (701)-340-9361 email abraunberger@americanfenderal.net 5. Have you ever used Business Assistance Financing before? N( If yes, what, where and when? non -applicable PROJECT INFORMATION: 1. Location of Proposed Project: 101 Broadway W, Monticello, MN, 55362 2. Amount of Business Assistance Requested $300,000.00, 3% Interest, 10 -year term 3. Need for Business Assistance requested? Gap Funding 4. Present ownership of site: BLOCK 52 HOLDINGS LLC, a Minnesota limited liability company, BUCHHOLZ EXCHANGE LLC, a Minnesota limited liability company, and NORGREN EXCHANGE LLC, a Minnesota limited liability companv 5. Number of permanent jobs created as a result of project? 80-100 6. Estimated annual sales: Present N/A Future: N/A 7. Market Value of Project following completion 8. Anticipated start date: January 2024 Completion Date July 1, 2024 FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition N/A b. Site Development N/A c. Building Cost N/A d. Equipment N/A e. Architectural/Engineering Fee $40,000.00 f. Legal fees $4,000.00 g. Off-site development Costs $180,000.00 2. Sources of financing: a. Private financing institution $1,350,000.00 b. Tax Increment funds no additional request c. Other public funds $300,000.00 d. Developer Equity 350,000.00 � �' `mss.. •� lb 6g, i1 ss lb ^° ss• ^°y + �z 4 °� 10 s• se• 1 ti O `330•Lsz•� 13 �14 zc. i // • .. JA e r' T' BLOCK 52 SITE PLAN CID WALGREENS F-, W: 2= �< KZ� K� �3v'�` Us w� m�� 5S =� C�� s 3� g�mos� 6 d•N VA 13, O� O QZ W J2 m� `az�3Il.71 moi in�LL�� W E �Z mcg, a '•�t I IIJIJ 2 o 1 11110- oLL �— 51: ,Y.er 1v� 10 pApA © ° 6.. 91 d W 810, 6� FFF i �i a �{ ❑v c K c yl• ___. f4 u m � v o ¢amr.ww SECTION REFERENCE: TY OF M0CI ticello FINANCE City Policy and Procedure NO: FIN - Date: Next Review Date: TITLE: GREATER MONTICELLO ENTERPRISE FUND POLICY 1.0 Purpose The purpose of the Greater Monticello Enterprise Fund ("GMEF") is to encourage economic development by supplementing conventional financing sources available to existing and new businesses. This program is administered by the City of Monticello Economic Development Authority (the "EDA") and participating lending institution(s). GMEF loans are made to businesses to help them meet a portion of their financing needs. The loans are meant to be a secondary source of financing, provide gaps in private financing, and assist in securing other grants. All loans must meet four or more of the criteria established in the Definition of Public Purpose section below. The Greater Monticello Enterprise Fund is administered by the EDA. It is the responsibility of the EDA to assure that loans meet the public purpose standard and comply with all other GMEF policies as defined in this document. DEFINITION OF PUBLIC PURPOSE GMEF Loans must meet at least one (1) of the following public purposes (if the EDA finds that the public purpose described in item 2 listed below is met, the EDA must find that the GMEF loan meets at least one additional public purpose listed below): 1. To provide loans for credit -worthy businesses which create new jobs. • One job is equivalent to a total of 37.5 hours per week. • At least 90% of the jobs created must pay at least 160% of the federal minimum wage, exclusive of benefits, for individuals over the age of 20 during the term of assistance. Annual written reports are required until repayment of the assistance. Failure to meet the job and wage level goals requires partial or full repayment of the assistance with interest. 2. To provide loans for credit -worthy businesses that would increase the community tax base. 3. To provide loans to credit -worthy industrial or commercial businesses (new or existing) that would allow the ability to improve or expand their operation. Factors including but not limited to the following will be taken into account: • Type and size of the business • Product or service involved • Present availability of the product or service within the City of Monticello • Compatibility of the proposed business as it relates to the comprehensive plan and existing zoning policies, • Potential for adverse environmental effects of the business, if any. 4. In the event job creation is not a viable option, credit -worthy businesses have the ability to demonstrate public purpose by means of job retention. 2.0 Policy Eligible Businesses: • Industrial and commercial businesses. • Businesses currently located or to be located within the City of Monticello. • Credit -worthy existing businesses. • Start-up businesses with worthy business plan and/or pro forma in a form acceptable to the EDA (historically non credit -worthy businesses will be denied). Acceptable Private Financing Methods: • Companion Direct Loan: The GMEF is subordinate to the primary lender. • Participation Loan: The GMEF participates in a portion of the loan. • Guarantee Loans: The GMEF guarantees a portion of the bank loan. *Interest rate cap is subject to EDA approval Acceptable Uses of GMEF Proceeds: • Real property acquisition, development, & rehabilitation improvement costs including but not limited to the following: ■ Land Acquisition ■ Engineer/Design Inspection Fees ■ Building Permit Fees ■ Architect Fees ■ Building Materials ■ Soil Borings ■ Construction Labor ■ Appraisal Fees ■ Landscaping ■ Legal Fees ■ Grading ■ Environmental Studies ■ Curbing/Parking Lot ■ Recording Fees ■ Title Insurance • Machinery and equipment: Personal property used as an integral part of the manufacturing or commercial business, with a useful life of at least three years. Acquisition costs would include freight and sales taxes paid. As a general rule, office equipment would not qualify. Terms and conditions: • Loan Size: Minimum of $25,000 and maximum not to exceed 50% of the remaining GMEF balance • Leveraging: Minimum 60% private/public Non-GMEF, Maximum 30% GMEF, Minimum 10% equity. • Loan Term: Personal property term not to exceed life of equipment (possibly up to 10 years). Real estate property maximum of 10 -year maturity amortized up to 30 years. Balloon payment at 10 years. • Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street Journal on date of EDA approval, with a minimum interest rate of 1.0%. • Loan Fee: Minimum fee of $500 but not to exceed 1.5 % of the total loan. Fees are to be documented and there shall be no duplication of fees between the lending institution and the GMEF. 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 to the EDA within 5 working days after City Council approval of GMEF loan. The fee is non-refundable. • Pre -payment Policy: No penalty for pre -payment • Deferral of Payments: ■ Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the EDA. ■ Monthly payments may be deferred for a determined period of time upon approval by the EDA. • Late Payment Policy: 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 Economic Development Authority under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the Authority 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 Authority, and all such interest will be due and payable at the same time as the amount on which it has accrued. • Assumability of Loan: None • Business Equity Requirements: Subject to type of loan. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines. • Collateral: ■ Liens on real property in project (mortgage deed). ■ Liens on real property in business (mortgage deed). ■ Liens on real property held personally (subject to EDA approval, homestead exempt). ■ Machinery and equipment liens (except equipment exempt from bankruptcy). ■ Personal and/or corporate guarantees (requires unlimited personal guarantees). • Non -Performance: An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. • Non -Performance Extension: The 180 -day non-performance date can be extended up to an additional 120 days, upon approval by the EDA. A written request must be received 30 days prior to expiration of the 180 -day non-performance date. • Out of Pocket Fees: Responsibility of the GMEF applicant. • Equal Opportunity: The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants shall have equal access to GMEF funds regardless of race, sex, age, marital status, or other personal characteristics. • Participating Lending Institution(s): ■ Participating lending institution(s) shall be determined by the GMEF applicant. ■ Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the policies of the GMEF as approved by the City Council. ■ Participating lending institution(s) shall analyze the formal application and indicate to the EDA the level at which the lending institution will participate in the finance package. • Loan Administration: City Staff shall collect applicable GMEF payments. City Staff shall assure City compliance with all applicable terms and conditions of the approved loan. All loan documents shall include the following: (i) Definition of loan default, agreements regarding notification of default; (ii) copy of primary lenders documents and (iii) provisions allowing the City to inquire on the status of the primary loan. LOAN APPLICATION PROCEDURES The EDA desires to make the GMEF 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 GMEF operating procedures as approved by the EDA and City Council. 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 the Greater Monticello Fund Guidelines. 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 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. The EDA shall have authority to approve or deny loans; however, within 21 days of EDA action, the City Council may reverse a decision by the EDA, if it is determined by the City Council that such loan was denied/approved in violation of GMEF guidelines. 6. 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 City shall issue said loan. REPORTING: City Staff shall submit to the EDA and City Council a semiannual report detailing the balance of the Greater Monticello Enterprise Fund. 3.0 Scope This policy applies to all projects that apply for and may receive GMEF assistance. 4.0 HISTORY Approval Date: August 31, 1999 Approved by: City Council Amendment Date: November 8, 2000 Approved by: City Council Amendment Date: April 24, 2001 Approved by: City Council HISTORY Amendment Date December 13, 2005 Approved by: City Council Approval Date March 23, 2009 Approved by: City Council Approval Date April 22, 2013 Approved by: City Council Approval Date February 27, 2017 Approved by: City Council Approval Date Approved by: City Council At a minimum, the EDA shall review the guidelines on an annual basis. Changes to the GMEF guidelines require approval by the City Council and the EDA. Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program Sept 30, 2023 - Unaudited TIF 6 (dl TIF 19 TIF 20 (d) TIF 22 TIF u TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Tate) T-I EDA Ganaral GMEF TIF Futuro Raindence MS Shores Prairie West Downtown SL H.W. Fr Parch CMHP Inbrchanoe Brion. UNC Hudwetere Headwetere Bock 52 Willa R.-ilm- EDA $CDP ASSET$ Cash antl investments $ 2.66.33 $ 1.052.592 $ - $ 18.001 $ 18.845 $ 104.142 $ 403,851 $ 27.885 $ 22.074 $ 87.258 $ ]].340 $ 9.9]] $ 30.857 $ M.) $ 14001 $ 14001 $ 14001 $ - $ 4.511.525 $ 765.050 Receivables DNinquenttaxes 1,722 - - - - - 2,687 - - - - - - - - - - - 4,409 - Accuunts 9,]]6 In[rebntlreceivable 124,149 - - - 731,000 - - - - - - - - - - - - - - - - - - - - - - - - - - (855,149) S'T - Notes receivable 127,246 hebbrresale 1.999.036 196,172 - - - - 163.200 - - - - - - - - - - - 321,418 2,162,23fi 115, TOTAL ASSETS $ 4.925.68] $ 1246.764 $ $ 749,001 $ 18.845 $ 104.142 $ 569.738 $ 27.885 $ 22.074 $ 87258 $ ]].340 $ 9,9T] $ W,857 $ (400) $ (400) $ (400) $ (4W) $(855.1497 $ 7.012.819 $ 900.788 LIABILITIES Accounts and contracts payable $ - $ - $ $ - $ - $ - $ - $ - $ - $ $ - $ - $$ - $ $ - $ - $ $ $ - Intre(undpeyable - - 45,363 - - - - - ]8,500 - - 731,286 - 12],26fi - - (855,169) 12],266 - Uneametl revenue Es tleppa85 SA. - - - - - 163,200 - - - - - - - - - - (163,200) 5.492 - Talal liabilities 5.492 45.363 163200 ]8.500 ]31286 12]246 11.018.3491 132.]38 DEFERRED INFLOW$ GF RESOURCES Unavailable revenue -p ,Ip taxes 1.]222.68] - - - - - - - - - - - - - - - - 4.409 - FUND BALANCES Reslrictetl - Assi9netl 1246.764 - 749.001 18.845 104.142 403.851 27.865 22.074 MM ]].340 9.91 (]00.4291 (400) (12].646) (400) (400) 163200 2.002.562 900768 E--i. Development 4,715,018 - (45,363) - - - - - - - - - - - - - - - 4,669,655 - FagatleG,n 200.000 200.000 Talal bnd balance 4918473 1266.]64 (45,363) 749.001 18845 104.162 403851 2].885 22.0]4 6.]58 ]].360 9.9]] (]00,429) (400) (127.666) (400) (400) 163,200 6.8]5.6]2 900.768 TOTAL LIABILITIES, AND FUND BALANCES $ 4.925.687 $ 1246.764 $ $ 749,001 $ 18.845 $ 104,142 $ 569.738 $ 27,885 $ 22074 $ 87258 $ T],340 $ 9,9T] $ W,857 $ (400) $ (400) $ (400) $ (400) $(855.1497 $ 7.012.819 $ 900.788 Regwretl or Actual DareNficafipn Da(e 12/9/2013 12/91/2026 'Y10/- I-lao24 12/31/2026 12/31/2029 12/31/2029 a022 1Y312045 1-12030 bei Type (tl)=tlextllfietl M Ra aln9 Retlevebpmant sing& Retleveropnnnt lb 9 -ft Ra Mn9 Retlevebp Ra sing Development Ra Mn9 Ra aln9 Rerteveb maul p Devebpmenf Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended September 30, 2023 - Unaudited TIF 6161 TIF 19 TIF 20 (d) TIF 22 TIF L TIF 29 TIF 30 TIF 34 fd) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total Total EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown 86 H -W. Franc Parch CMHP Interchange Brlggs UMC Headwaters Headwaters Block 52 Willa Reconciliation EDA SCDP Revenue Prepedy taxes $ 206,569 $ - $ - $ - $$ - $ $ $ $ $ - $ $ $ - $ - $ - $ - $ - $ 206,569 $ - Tnt i rements - - - 18,875 - 154,206 2],915 22,106 8,]88 - 35,010 32,549 - - - - - 299,44] - In[ergovemmental 284,123 - - - - - - - - - - - - - - - - 284,123 In[eres[on loans 2,599 - - - - .her revenues 2.9]s - - - - - - - - - - - - 2,399 2.9]5 2,559 Total revenues 493.66] 2.599 18.8]5 154.206 27.915 22.104 8.]88 35.010 32.549 ]95.]13 2.559 E�nditures: Current Salaryand wages 99,385 - - - - - - - - - - - - - - - - - 99,385 - Ben,dte 34,213 - - - - - - - - - - - - - - - - - 34,213 - suPPliee 5 5 " Professional services - legal 5,001 - - - - - 1,000 - - - - - - 6,001 - Prokesionalservices-Mher 136,759 - - - - - - - - - - - 1,468 400 400 400 400 - 139,82] - LPVlnaurance 3,395 - - - - - - - - 3,395 - Legal and general publications 167 - - - 30 30 30 30 30 30 30 30 224 - - - - - 631 - Mar .ng 5,000 - - - - - - - - - - - - - - - - - 5,000 - Duesadd memberehip 6,796 - - - - - - - - - - - - - - - - - 6,]98 - Midiee 163 - - - - - - - - - - - - - - - - - 163 - ITservicee 2,805 - - - - - - - - - - - - - - - - - 2,605 - Travel and conferences 4,35] - - - - - .hereVenditures 292,005 - - - - - - - - - - - - 4,357 292,005 - T -I expenditures 589,851 30 30 181,239 30 30 30 30 31.539 1,692 400 400 400 400 808.101 Net change in fund be lances (96,164) 2,599 - - 18,845 (30) (27,033) 27,885 22,074 8,758 (30) 3,471 30,857 (400) (400) (400) (400) - (10,388) 2,559 Fund balance at beginning d year 5,014,657 1,244165 (45.363) 749,001 - 104,172 430,8&1 - - - 77,370 6,506 (731,286) - (127,246) - - 163,200 6,8%,060 898,209 Fund balance at end Myear $ 4,918,4]3 E 1248.]64 $ (45,383) E ]49.001 $ 18,845 $ 104.142 $ 403,851 E 2].885 $ 22.0]4 $ 8,]58 E ]].340 $ 9,971 E (]00.4291 $ (4007 E (12].646) $ (4007 E (400) $ 163200 $ 6,8]5,6]2 $ 900.]66 Regwretl or Actual DareMflcatbn Da[e 129/2013 tT/312g23 1N1N2018 1-M24 12919026 12919028 12919028 I-IM22 12919045 12919030 bai Type Retlevebpnpnf lbuaN9 Ra...Pmanl (d)=decadl- lbuaN98 Retlevabpmenr RguaMg lbuaw9 RguaMg -P- -g Ewrrontic Davabpmanf --g Ra -g Redevebpmant Devebpmenr EDA Agenda: 1/10/24 413. Consideration of Authorizing Professional Services Contract with WSB & Associates to complete a Phase I ESA (Environmental Site Assessment) and ARM (Asbestos and Regulated Materials) Survey at 216 Pine Street in the amount of $8,400 Prepared by: Meeting Date: Nx Regular Agenda Item Economic Development Manager 1/10/24 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development Director, City Administrator Community Economic Development Coordinator ACTION REQUESTED Motion to authorize a professional services contract with WSB & Associates for completion of a Phase I ESA (Environmental Site Assessment) and an ARM Survey (Asbestos Regulated Materials) Survey at 216 Pine Street in the amount of $8,400. Motion of other. REFERENCE AND BACKGROUND Staff are asking the EDA to consider entering into a professional services contract with WSB & Associates for environmental studies at the recently acquired EDA property. Following the EDA's recent acquisition of 216 Pine Street property (EDA acquired on 10/31/2023) and in anticipation of potential future redevelopment activities in Block 34, it is prudent to complete environmental related studies necessary prior to demolition and redevelopment. There are no known prior environmental reports completed for 216 Pine Street. The EDA is asked to authorize two studies for this property. The first study is a Phase I ESA which is a site visit and a companion desktop and existing reference materials review of the property. This study can provide evidence of potential environmental concerns and may warrant further studies such as a Phase II Environmental Review which involves drilling, probing, and digging, etc. The Phase I ESA report will also offer recommendations for any future studies. A second study is the ARM Survey of the building. This is an invasive -destructive type of survey in which holes are poked in the walls and small areas of the flooring (linoleum, carpet, tile) and ceiling(s) are disturbed to obtain samples of the building materials. The report generated via the ARM Survey is used as a control process as part of the demolition activities where various hazardous -regulated materials are segregated and removed from the property prior to general building demolition occurring. EDA Agenda: 1/10/24 The Phase I ESA and the ARM Survey proposal for 216 Pine Street are attached to this report as Exhibit A. It should be noted that WSB is the City's designated Environmental Studies -Review consultant. I. Budget Impact: The budget impact from the review and acceptance of authorizing the Phase I ESA and the ARM is $8,400, the full cost of completing both studies for 216 Pine Street. Fortunately, the EDA received notice that its recent $10,000 Grant submitted to the Initiative Foundation was approved. Those funds are proposed to be the source of funding to cover the cost of completing the Phase I ESA and the ARM Survey. II. Staff Workload Impact: The Community Development Director and Economic Development Manager have committed time to completing tasks related to the proposed environmental studies. Those tasks include discussions with the consultant regarding the desired scope of work tasks and the optimal timeline of completion. Additional time toward this effort involves report preparation and EDA meeting presentation. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: Completing Phase I ESA and the ARM Survey are prudent steps in support of redevelopment efforts on Block 34. Redevelopment of portions of the block is identified as a goal within the 2017 Downtown Small Area Plan, an appendix of the Monticello 2040 Vision + Plan, which calls for a vibrant Downtown. STAFF RECOMMENDATION Staff recommend the EDA authorize entering into a professional service contract with WSB & Associates for completion of a Phase I ESA and an ARM Survey at 216 Pine Street. The Phase I ESA will provide information about the environmental status of the 10,892 square foot parcel while the ARM Survey will identify any potential hazardous materials that need to be removed prior to demolition of the building. The Phase I ESA will also offer recommendations regarding any additional follow-up environmental studies for the property. Staff are confident in WSB & Associates' capability to complete the scope of work outlined in the proposal, which they have demonstrated in the previously completed Phase I ESAs in Block 34 and Block 52. SUPPORTING DATA A. WSB & Associates Scope of Work Proposal — Phase I ESA and ARM Survey B. Aerial Photo C. Wright County Beacon Property Report 2 0 U U Z W m 0 00 CO a LO LO Z CO J 0 IL W Z Z 0 Cl) U) W Z W Z W X 0 wsb January 4, 2024 Jim Thares City of Monticello — Economic Development Manager 505 Walnut Street Monticello, MN 55362 Re: Scope of Work and Cost — Phase I Environmental Site Assessment and Asbestos and Regulated Materials Survey Block 34 — 216 Pine Street Monticello, MN 55362 Dear Mr. Thares: As requested, outlined below is a scope of work and cost estimate to perform a Phase I Environmental Site Assessment (ESA) and Asbestos and Regulated Materials (ARM) Survey for the above referenced property (Subject Property). WSB understands the Subject Property consists of Wright County Parcel 155010034010 and is approximately 0.25 acres in size. The Subject Property includes a single -story commercial building that was constructed in 1974 and was most recently operated as a boutique store (Finders Keepers). The following tasks will be performed as part of this Scope of Work: Task 1 — Phase I Environmental Site Assessment The Phase I ESA will be performed in general compliance with the ASTM E1527-21 Standard Practice for Environmental Site Assessments. WSB understands that the assessment report will be used for redevelopment purposes. The following items will be performed as part of the Phase I ESA: Historical Records Review WSB will obtain federal and state regulatory database information for the Subject Property from a commercial regulatory vendor to evaluate potential recognized environmental conditions (RECs). This review will not include a detailed review of all listings identified in the regulatory database search, but rather will focus on listings which have the potential to result in a REC. The following historical records will be reviewed: • Sanborn Fire Insurance Maps • Historical Aerial Photographs • City Directories • Historical Topographic Maps • Federal EPA -listed sites including NPL, CERCLIS, RCRA, and ERNS • State MPCA-listed sites including UST, LUST, MERLA, VIC, spills, landfills, and others • Regulatory file reviews will be conducted per ASTM E 1527-21. Interviews WSB will conduct interviews with Subject Property representatives (via phone or in person) regarding past and current Subject Property use activities. Any entity relying on the Phase I ESA will complete a User Questionnaire provided by WSB. The following representatives will be contacted and interviewed (if available): 0 Current or past Subject Property owners Mr. Jim Thares January 4, 2024 Page 2 • Current Subject Property management or maintenance staff • City building and inspection department • City fire department Site Reconnaissance WSB will make a direct visual inspection of the Subject Property and adjoining properties. All Subject Property areas, including buildings and storage structures, will be accessed as part of the site reconnaissance. The adjoining properties will be viewed from the public right-of-way areas. The site reconnaissance will include observation and documentation of the following: • Location of visible aboveground or underground storage tanks • Location of chemical or hazardous material storage • Location of water bodies (if present) • Condition of vegetation and exposed soils • General parcel topography • Photographic documentation • Evidence of Methamphetamine manufacturing labs Reporting WSB will summarize the results of the Phase I ESA in a final documentation report. The report will be completed in accordance with the ASTM E1527-21 standard and shall include the following: • Supporting documentation upon which the findings and opinions are based • Scope of services performed • A "findings" section which will detail any RECs identified by the assessment • The opinion of the environmental professional • Any conclusions drawn from the assessment Task 1 - Assumptions The following items are assumed for this scope of work: Subject Property access, including the interior of the current building(s), will be facilitated by the City of Monticello (City). Based on a review of the Minnesota Pollution Control Agency (MPCA) and Minnesota Department of Agriculture (MDA) What's In My Neighborhood databases, five regulatory files associated with adjoining properties will be required. These file reviews include: o LS0020142 — Former Municipal Gas Facility — 130 Broadway St E o LS0019812 — Former Phillips 66 Station — 100 Broadway St E o LS0015846 — TDS Telecom — 316 Pine St o PB4857 — Former Phillips 66 Gas Station — 100 Broadway St E o VP33920 — 100 Broadway St E Previous environmental investigation reports completed for the Subject Property (if available), will be reviewed as part of this assessment. An Environmental Lien and Activity/Use Limitation (AUL) search will not be completed by WSB. The City will provide one review/comment of the Phase I ESA report. Mr. Jim Thares January 4, 2024 Page 3 Task 2 — Asbestos and Regulated Materials Survey WSB will perform an Asbestos and Regulated Materials Survey at the Subject Property. The purpose of the ARM Survey is to identify asbestos and other regulated materials at the building that will require special management prior to and/or during demolition activities. The following items will be performed as part of the ARM Survey: Destructive Asbestos SamDlina WSB will identify friable and non -friable asbestos -containing materials (ACM) in accordance with EPA, MPCA, and MDH rules and regulations. In addition, WSB will identify ACM that could become friable during demolition activities, and according to State and Federal regulations, would require abatement prior to disturbance. It is assumed that up to 60 asbestos samples will be collected and analyzed. For materials with low (less than 5%) concentrations of asbestos, a point count quantification of asbestos concentrations can be performed. It is assumed up to 5 samples will be point counted. Limited Lead -Based Paint Sampling WSB will sample predominant paint types identified in the buildings to identify the presence of lead-based paint (LBP). Paint sampling will be completed to identify potential sources of LBP for OSHA compliance to satisfy MPCA requirements for purposes of potential concrete recycling. Paint sampling will not be completed for compliance with Housing and Urban Development (HUD) requirements. It is assumed that up to 5 paint chip samples will be collected and analyzed. Regulated Materials Inventory WSB will identify regulated materials present at the Site buildings that may require special management prior to or during demolition. WSB will also note other items present that may require special attention prior to or during demolition including wells, septic systems, sumps, above/underground tanks, hoists, and oil water separators. Reporting WSB will summarize the results of the ARM Survey in a final report. At a minimum, the report will include a scope of work, sampling methods and procedures, figures identifying ACM sample locations, regulated materials inventory, investigation results, locations and estimated quantities of identified ACM, conclusions, and recommendations. Task 2 - Assumptions The following items are assumed for this scope of work: • Subject Property access, including the interior of the current building(s), will be facilitated by the City. • The Subject Property will be vacant during the ARM Survey, and all spaces/areas of the buildings will be accessible during the inspection. • Destructive sampling methods will be used and WSB will not repair/replace building materials that are damaged during material assessment and sampling, including roofs. • Up to 60 asbestos samples and 5 lead-based paint samples will be collected at the Subject Property and analyzed under a standard 7 to 10 -day laboratory turnaround timeframe. Additional asbestos samples will be charged at a rate of $8 per sample and lead -paint at $15 per sample. Mr. Jim Thares January 4, 2024 Page 4 • Up to 5 asbestos samples will be point counted. Additional asbestos samples for point count analysis will be charged at a rate of $15 per sample. • The City will provide one review/comment of the ARM Survey report. Total Cost The cost to perform the above-described environmental services is not to exceed $8,400. The table below presents the estimated cost breakdown for each task. Task Estimated Cost 1) Phase I ESA $5,000 2) ARM Survey $3,400 Total $8,400 If additional work is required beyond the scope outlined above, WSB will receive authorization from the City prior to completing extra work. Acceptance This proposal represents our understanding of the project scope. All work completed through this proposal will be governed by the enclosed General Contract Provisions. If the scope and fee are acceptable, please sign on the space provided and return one copy to WSB. We are available to begin work once we receive signed authorization. WSB appreciates the opportunity of being considered for this project and we look forward to providing our professional services to you. If you have any questions about this proposal, please feel free to call Ryan Spencer at 612.723-3644 or rspencer(cDwsbeng.com. Sincerely, WSB Ryan Spencer, CHMM Ben Fehr Director of EIR Senior Environmental Scientist Enclosures WSB 2024 Rate Schedule General Contract Provisions SIGNATURE hereby authorize the above scope of work, schedule, and cost. Name (Print) Signature Date 2024 Rate Schedule ws b, Costs associated with word processing, cell phones and reproduction of common correspondence are included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by contract. I Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit fees; delivery costs; etc. I Multiple rates illustrate the varying levels of experience within each category. I Rate Schedule is adjusted annually. WSBENG.COM Billing Rate/Hour SR. PRINCIPAL I SR. ASSOCIATE $249— $265 PRINCIPAL I ASSOCIATE $184 —$237 SR. PROJECT MANAGER I SR. PROJECT ENGINEER $184— $237 PROJECT MANAGER PROJECT MANAGER ASSISTANT $90 —$180 PROJECT ENGINEER GRADUATE ENGINEER $108— $179 ENGINEERING TECHNICIAN I ENGINEERING SPECIALIST $72 —$177 LANDSCAPE ARCHITECT I SR. LANDSCAPE ARCHITECT $82 —$172 ENVIRONMENTAL SCIENTIST I SR. ENVIRONMENTAL SCIENTIST $73 —$170 PLANNER I SR. PLANNER $85—$177 GIS SPECIALIST I SR. GIS SPECIALIST $82—$177 CONSTRUCTION OBSERVER $110— $143 SURVEY Survey Office Technician $128— $159 Drone Pilot $186 One -Person Crew $186 Two -Person Crew $250 OFFICE TECHNICIAN $64 —$140 Costs associated with word processing, cell phones and reproduction of common correspondence are included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by contract. I Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit fees; delivery costs; etc. I Multiple rates illustrate the varying levels of experience within each category. I Rate Schedule is adjusted annually. WSBENG.COM WSB LLC EXHIBIT A GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT ARTICLE 1 — PERFORMANCE OF THE WORK Consultant shall perform the services under this Agreement in accordance with the care and skill ordinarily exercised by members of Consultant's profession practicing under similar circumstances at the same time and in the same locality. Consultant makes no warranties, express or implied, under this Agreement or otherwise, in connection with its services. ARTICLE 2 — ADDITIONAL SERVICES If the Client requests that the Consultant perform any services which are beyond the scope as set forth in the Agreement, or if changed or unforeseen conditions require the Consultant to perform services outside of the original scope, then, Consultant shall promptly notify the Client of cause and nature of the additional services required. Upon notification, Consultant shall be entitled to an equitable adjustment in both compensation and time to perform. ARTICLE 3 — SCHEDULE Unless specific periods of time or dates for providing services are specified in a separate Exhibit, Consultant's obligation to render services hereunder will be for a period which may reasonably be required for the completion of said services. The Client agrees that Consultant is not responsible for damages arising directly or indirectly from any delays for causes beyond Consultant's control. For purposes of this Agreement, such causes include, but are not limited to, strikes or other labor disputes; severe weather disruptions, or other natural disasters or acts of God; fires, riots, war or other emergencies; any action or failure to act in a timely manner by any government agency; actions or failure to act by the Client or the Client's contractor or consultants; or discovery of any hazardous substance or differing site conditions. If the delays outside of Consultant's control increase the cost or the time required by Consultant to perform its services in accordance with professional skill and care, then Consultant shall be entitled to a reasonable adjustment in schedule and compensation. ARTICLE 4 — JOBSITE SAFETY Neither the professional activities of the Consultant, nor the presence of the Consultant or its employees and subconsultants at a construction/project site, shall impose any duty on the Consultant, nor relieve the general contractor of its obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending and coordinating the work in accordance with the contract documents and any health or safety precautions required by any regulatory agencies. The Consultant and its personnel have no authority to exercise any control over any construction contractor or its employees in connection with their work or any health or safety programs or procedures. The Client agrees that the general contractor shall be solely responsible for jobsite and worker safety and warrants that this intent shall be carried out in the Client's contract with the general contractor. ARTICLE 5 — OPINIONS OF PROBABLE COST Opinions, if any, of probable cost, construction cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance costs, collectively referred to as "Cost Estimates," provided for are made or to be made on the basis of the Consultant's experience and qualifications and represent the Consultant's bestjudgment as an experienced and qualified professional design firm. The parties acknowledge, however, that the Consultant does not have control over the cost of labor, material, equipment or services furnished by others or over market conditions or contractor's methods of determining their prices, and any evaluation of any facility to be constructed or acquired, or work to be performed must, of necessity, be viewed as simply preliminary. Accordingly, the Consultant and Client agree that the proposals, bids or actual costs may vary from opinions, evaluations or studies submitted by the Consultant and that Consultant assumes no responsibility for the accuracy of opinions of Cost Estimates and Client expressly waives any claims related to the Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 1 accuracy of opinions of Cost Estimates. If Client wishes greater assurance as to Cost Estimates, Client shall employ an independent cost estimator as part of its Project responsibilities. ARTICLE 6 — REUSE AND DISPOSITION OF INSTRUMENTS OF SERVICE All documents, including reports, drawings, calculations, specifications, CADD materials, computers software or hardware or other work product prepared by Consultant pursuant to this Agreement are Consultant's Instruments of Service and Consultant retains all ownership interests in Instruments of Service, including copyrights. The Instruments of Service are not intended or represented to be suitable for reuse by the Client or others on extensions of the Project or on any other project. Copies of documents that may be relied upon by Client are limited to the printed copies (also known as hard copies) that are signed or sealed by Consultant. Files in electronic format furnished to Client are only for convenience of Client. Any conclusion or information obtained or derived from such electronic files will be at the user's sole risk. Consultant makes no representations as to long term compatibility, usability or readability of electronic files. If requested, at the time of completion or termination of the work, the Consultant may make available to the Client the Instruments of Service upon (i) payment of amounts due and owing for work performed and expenses incurred to the date and time of termination, and (ii) fulfillment of the Client's obligations under this Agreement. Any use or re -use of such Instruments of Service by the Client or others without written consent, verification or adaptation by the Consultant except for the specific purpose intended will be at the Client's risk and full legal responsibility and Client expressly releases all claims against Consultant arising from re -use of the Instruments of Service without Consultant's written consent, verification or adaptation. The Client will, to the fullest extent permitted by law, indemnify and hold the Consultant harmless from any claim, liability or cost (including reasonable attorneys' fees, and defense costs) arising or allegedly arising out of any unauthorized reuse or modification of these Instruments of Service by the Client or any person or entity that acquires or obtains the reports, plans and specifications from or through the Client without the written authorization of the Consultant. Under no circumstances shall transfer of Instruments of Service be deemed a sale by Consultant, and Consultant makes no warranties, either expressed or implied, of merchantability and fitness for any particular purpose. Consultant shall be entitled to compensation for any consent, verification or adaption of the Instruments of Service for extensions of the Project or any other project. ARTICLE 7 — PAYMENTS Payment to Consultant shall be on a lump sum or hourly basis as set out in the Agreement. Consultant is entitled to payment of amounts due plus reimbursable expenses. Client will pay the balance stated on the invoice unless Client notifies Consultant in writing of any disputed items within fifteen (15) days from the date of invoice. In the event of any dispute, Client will pay all undisputed amounts in the ordinary course, and the Parties will endeavor to resolve all disputed items. All accounts unpaid after thirty (30) days from the date of original invoice shall be subject to a service charge of 1-1/2% per month, or the maximum amount authorized by law, whichever is less. Consultant reserves the right to retain instruments of service until all invoices are paid in full. Consultant will not be liable for any claims of loss, delay, or damage by Client for reason of withholding services or instruments of service until all invoices are paid in full. Consultant shall be entitled to recover all reasonable costs and disbursements, including reasonable attorney fees, incurred in connection with collecting amounts owed by Client. In addition, Consultant may, after giving seven (7) days' written notice to Client, suspend services under this Agreement until it receives full payment for all amounts then due for services, expenses and charges. ARTICLE 8 — SUBMITTALS AND PAY APPLICATIONS If the Scope of Work includes the Consultant reviewing and certifying the amounts due the Contractor, the Consultant's certification for payment shall constitute a representation to the Client, that to the best of the Consultant's knowledge, information and belief, the Work has progressed to the point indicated and that the quality of the Work is in general accordance with the Documents issued by the Consultant. The issuance of a Certificate for Payment shall not be a representation that the Consultant has (1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed construction means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received from Subcontractors and material suppliers and other data requested by the Client to substantiate the Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 2 Contractor's right to payment, or (4) ascertained how or for what purpose the Contractor has used money previously paid on account of the Contract Sum. Contractor shall remain exclusively responsible for its Work. If the Scope of Work includes Consultant's review and approval of submittals from the Contractor, such review shall be for the limited purpose of checking for conformance with the information given and the design concept. The review of submittals is not intended to determine the accuracy of all components, the accuracy of the quantities or dimensions, or the safety procedures, means or methods to be used in construction, and those responsibilities remain exclusively with the Client's contractor. ARTICLE 9 — HAZARDOUS MATERIALS Notwithstanding the Scope of Services to be provided pursuant to this Agreement, it is understood and agreed that Consultant is not a user, handler, generator, operator, treater, arranger, Storer, transporter, or disposer of hazardous or toxic substances, pollutants or contaminants as any of the foregoing items are defined by Federal, State and/or local law, rules or regulations, now existing or hereafter amended, and which may be found or identified on any Project which is undertaken by Consultant. The Client agrees to indemnify Consultant and its officers, subconsultant(s), employees and agents from and against any and all claims, losses, damages, liability and costs, including but not limited to costs of defense, arising out of or in any way connected with, the presence, discharge, release, or escape of hazardous or toxic substances, pollutants or contaminants of any kind, except that this clause shall not apply to such liability as may arise out of Consultant's sole negligence in the performance of services under this Agreement arising from or relating to hazardous or toxic substances, pollutants, or contaminants specifically identified by the Client and included within Consultant's services to be provided under this Agreement. ARTICLE 10 — INSURANCE Consultant has procured general and professional liability insurance. On request, Consultant will furnish client with a certificate of insurance detailing the precise nature and type of insurance, along with applicable policy limits. ARTICLE 11 —TERMINATION OR SUSPENSION If Consultant's services are delayed or suspended in whole or in part by Client, or if Consultant's services are delayed by actions or inactions of others for more than sixty (60) days through no fault of Consultant, Consultant shall be entitled to either terminate its agreement upon seven (7) days written notice or, at its option, accept an equitable adjustment of rates and amounts of compensation provided for elsewhere in this Agreement to reflect reasonable costs incurred by Consultant in connection with, among other things, such delay or suspension and reactivation and the fact that the time for performance under this Agreement has been revised. This Agreement may be terminated by either party upon seven (7) days written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. In the event of termination Consultant shall be compensated for services performed prior to termination date, including charges for expenses and equipment costs then due and all termination expenses. This Agreement may be terminated by either party upon thirty (30) days' written notice without cause. Consultant shall upon termination only be entitled to payment for the work performed up to the Date of termination. In the event of termination, copies of plans, reports, specifications, electronic drawing/data files (CADD), field data, notes, and other documents whether written, printed or recorded on any medium whatsoever, finished or unfinished, prepared by the Consultant pursuant to this Agreement and pertaining to the work or to the Project, (hereinafter "Instruments of Service"), shall be made available to the Client upon payment of all amounts due as of the date of termination. All provisions of this Agreement allocating responsibility or liability between the Client and Consultant shall survive the completion of the services hereunder and/or the termination of this Agreement. Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 3 ARTICLE 12 — INDEMNIFICATION The Consultant agrees to indemnify and hold the Client harmless from any damage, liability or cost to the extent caused by the Consultant's negligence or willful misconduct. The Client agrees to indemnify and hold the Consultant harmless from any damage, liability or cost to the extent caused by the Client's negligence or willful misconduct. ARTICLE 13 — WAIVER OF CONSEQUENTIAL DAMAGES Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, neither the Client nor the Consultant, their respective officers, directors, partners, employees, contractors or subconsultants shall be liable to the other or shall make any claim for any incidental, indirect or consequential damages arising out of or connected in any way to the Project or to this Agreement. This mutual waiver of consequential damages shall include, but is not limited to, loss of use, loss of profit, loss of business, loss of income, loss of reputation and any other consequential damages that either party may have incurred from any cause of action including negligence, strict liability, breach of contract and breach of strict or implied warranty. Both the Client and the Consultant shall require similar waivers of consequential damages protecting all the entities or persons named herein in all contracts and subcontracts with others involved in this project. This mutual waiver shall apply even if the damages were foreseeable and regardless of the theory of recovery plead or asserted. ARTICLE 14 — WAIVER OF CLAIMS FOR PERSONAL LIABILITY It is intended by the parties to this Agreement that Consultant's services shall not subject Consultant's employees, officers or directors to any personal legal exposure for the risks associated with this Agreement. Therefore, and notwithstanding anything to the contrary contained herein, the Client agrees that as the Client's sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against Consultant, and not against any of Consultant's individual employees, officers or directors. ARTICLE 15 —ASSIGNMENT Neither Party to this Agreement shall assign its interest in this agreement, any proceeds due under the Agreement nor any claims that may arise from services or payments due under the Agreement without the written consent of the other Party. Any assignment in violation of this provision shall be null and void. Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Consultant or Client. This Agreement is for the exclusive benefit of Consultant and Client and there are no other intended beneficiaries of this Agreement. ARTICLE 16 — CONFLICT RESOLUTION In an effort to resolve any conflicts that arise during the design or construction of the project or following the completion of the project, the Client and Consultant agree that all disputes between them arising out of or relating to this Agreement shall be submitted to nonbinding mediation as a precondition to any formal legal proceedings. ARTICLE 17 — CONFIDENTIALITY The Consultant agrees to keep confidential and not to disclose to any person or entity, other than the Consultant's employees, subconsultants and the general contractor and subcontractors, if appropriate, any data and information furnished to the Consultant and marked CONFIDENTIAL by the Client. These provisions shall not apply to information in whatever form that comes into the public domain, nor shall it restrict the Consultant from giving notices required by law or complying with an order to provide information or data when such order is issued by a court, administrative agency or other authority with proper jurisdiction, or if it is reasonably necessary for the Consultant to complete services under the Agreement or defend itself from any suit or claim. ARTICLE 18 — LIMITATION OF LIABILITY To the fullest extent permitted by law, and not withstanding any other provision of this Agreement, the total liability, in the aggregate, of the Consultant and the Consultant's officers, directors, partners, employees and subconsultants, and any of them, to the Client and anyone claiming by or through the Client, for any and all claims, losses, costs or damages, including attorneys' fees and costs and expert -witness fees and costs of any nature whatsoever or claims expenses resulting from or in any way related to the project or Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 4 the Agreement from any cause or causes shall not exceed $20,000. It is intended that this limitation apply to any and all liability or cause of action, including without limitation active and passive negligence however alleged or arising, unless otherwise prohibited by law. In no event shall the Consultant's liability exceed the amount of available insurance proceeds. ARTICLE 19 — CONTROLLING LAW This Agreement is to be governed by the laws of the State of Minnesota. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, including but not limited to claims for negligence or breach of warranty, that is not settled by nonbinding mediation shall be settled by the law of the State of Minnesota. ARTICLE 20 — LOCATION OF UNDERGROUND IMPROVEMENTS Where requested by Client, Consultant will perform customary research to assist Client in locating and identifying subterranean structures or utilities. However, Consultant may reasonably rely on information from the Client and information provided by local utilities related to structures or utilities and will not be liable for damages incurred where Consultant has complied with the standard of care and acted in reliance on that information. The Client agrees to waive all claims and causes of action against the Consultant for claims by Client or its contractors relating to the identification, removal, relocation, or restoration of utilities, or damages to underground improvements resulting from subsurface penetration locations established by the Consultant. ARTICLE 21 — ACCESS TO SITE Client shall arrange and provide such access to the site as is necessary for Consultant to perform the work. ARTICLE 22 - SAMPLE DISPOSAL All environmental samples ("Samples") collected by Consultant are sent to and analyzed by a third -party laboratory, and all such Samples shall be disposed of according to the third -party laboratory's policies. ARTICLE 23 — EXPERT WITNESS AND SUBPOENA FEES Consultant shall not be retained as an expert witness except by separate, written agreement. The Client agrees to pay Consultant's costs to respond to any subpoena related to the work performed under this Agreement, including attorneys' fees and administrative costs. Article 24 — FIDUCIARY RELATIONSHIP Client agrees that this neither Agreement nor the services Consultant is providing under this Agreement creates a fiduciary relationship between Consultant and Client. Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 5 OK-11,11whBeaco I « Wright County, MN Overview Date created: 1/2/2024 Last Data Uploaded: 1/2/2024 8:34:44 AM Developed by" Schneider 7 GEOSPATIAL Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑c ❑t ❑ Parcels Torrens 1/2/24, 2:01 PM Wright County, MN Summary Beacon - Wright County, MN - Report: 155010034010 Parcel ID 155010034010 Property Address 216 PINE ST MONTICELLO MN 55362 Sec/Twp/Rng 11-121-025 Brief Tax SECT -11 TWP-121 RANGE -025 ORIGINAL PLAT MONTICELLO Description LOT -001 BLOCK -034 Dim 1 (Note: Not to be used on legal documents) Class 233 - 3A COMMERCIAL LAND AND BUILDING District (1101) CITY OF MONTICELLO-0882 School District 0882 Div % (Note: Class refers to Assessor's Classification Used For 1 DOWNTOWN 0 Property Tax Purposes) GIS Acres Parcel: 155010034010 Acres: 0.25 Acres USAB: 0.25 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 10,896.91 Owner Primary Owner CITY OF MONTICELLO EDA %EXECUTIVE DIRECTOR 505 WALNUT ST SUITE 1 MONTICELLO MN 55362 Land haps://beacon.schneidercorp.com/Application.aspx?ApplD=187&LaverlD=2505&PageTvpelD=4&PagelD=1310&KevValue=155010034010 1/5 Unit Eff Seq Code CER Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Rate Div % Value 1 DOWNTOWN 0 0 0 0 10,897.000 S 11.000 25.00 0.00 0.00 13.747 1.000 149,800 2 BLACKTOP 1.50 SF 0 0 0 0 3,650.000 U 1.500 0.00 0.00 0.00 1.507 1.000 5,500 Total 10,897.000 155,300 Buildings Building 1 Year Built 1974 Architecture N/A Above Grade Living Area 0 Finished BasementSgft 0 Construction Quality 06 Foundation Type CONC BLOCK Frame Type (C) Frame with Concrete Size/Shape Exterior Walls FACE BRICK Windows N/A Roof Structure FLAT Roof Cover N/A Interior Walls N/A Floor Cover N/A Heat FORCED AI R Air Conditioning CEN.EVAP Bedrooms 0 Bathrooms N/A Gross Building Area 1584 Sales Multi Instr Qualified Sale Sale Adjusted eCRV Sale S.S. S.S. Rjt. Transact Parcel Type Sale Sale Date Book Page Type Buyer Seller Price Sale Price # eCRV Type Rcmd. Rsn. Num N WD U 4/21/2005 1- WOLFF US $145,000 $145,000 95623 1 14- 95623 Improved JAMES BANK CFD/INT NA PA haps://beacon.schneidercorp.com/Application.aspx?ApplD=187&LaverlD=2505&PageTvpelD=4&PagelD=1310&KevValue=155010034010 1/5 1/2/24, 2:01 PM Recent Sales In Area Sale date range: From: 01/02/2021 To: 01/02/2024 Safes by Neighborhood Sales by Subdivision 1500 Feet v c, )+� �)v nictance Transfer History Beacon - Wright County, MN - Report: 155010034010 Grantor Grantee WOLFF JAMES B; WOLFF CHERYL A CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY CENTRAL MINNESOTA REALTY LTD WOLFF JAMES B; WOLFF CHERYLA CENTRAL MINNESOTA REALTY LTD WOLFF JAMES B; WOLFF CHERYL A WOLFF JAMES B; WOLFF CHERYL A CENTRAL MINNESOTA REALTY LTD US BANK NA WOLFF JAMES B; WOLFF CHERYL A Note: Transfer History data is from Landl-ink beginning 01/01/2003. Valuation Taxation Estimated Market Value - Excluded Value - Homestead Exclusion = Taxable Market Value Net Taxes Due + Special Assessments = Total Taxes Due % Change Taxation (Preliminary 2023 Taxes Payable) Estimated Market Value - Excluded Value - Homestead Exclusion Taxable Market Value Net Taxes Due + Special Assessments = Total Taxes Due % Change Taxes and Special Assessments Payable in 2023 are preliminary. Taxes Paid Receipt # Receipt Print Date Bill Pay Year 1804486 10/17/2022 2022 1770104 5/13/2022 2022 1729213 10/14/2021 2021 1694778 5/12/2021 2021 Recorded Date 2023 Assessment + Estimated Land Value $155,300 + Estimated Building Value $160,900 + Estimated Machinery Value $0 = Total Estimated Market Value $316,200 % Change 29.54% Taxation Estimated Market Value - Excluded Value - Homestead Exclusion = Taxable Market Value Net Taxes Due + Special Assessments = Total Taxes Due % Change Taxation (Preliminary 2023 Taxes Payable) Estimated Market Value - Excluded Value - Homestead Exclusion Taxable Market Value Net Taxes Due + Special Assessments = Total Taxes Due % Change Taxes and Special Assessments Payable in 2023 are preliminary. Taxes Paid Receipt # Receipt Print Date Bill Pay Year 1804486 10/17/2022 2022 1770104 5/13/2022 2022 1729213 10/14/2021 2021 1694778 5/12/2021 2021 Recorded Date Doc Type Doc No 11/7/2023 WAR 1541977 11/7/2023 QCD 1541976 8/21/2023 QCD 1536702 11/3/2008 QCD 1101780 6/10/2005 LWD 962682 2022 Assessment 2021 Assessment 2020 Assessment 2019 Assessment $116,100 $116,000 $116,000 $123,900 $128,000 $121,000 $114,000 $106,100 $0 $0 $0 $0 $244,100 $237,000 $230,000 $230,000 3.00% 3.04% 0.00% 0.00% 2022 Payable 2021 Payable 2020 Payable 2019 Payable $237,000 $230,000 $230,000 $224,000 $0 $0 $0 $0 $0 $0 $0 $0 $237,000 $230,000 $230,000 $224,000 $5,196.27 $4,985.27 $5,078.28 $5,043.29 $689.73 $712.73 $735.72 $758.71 $5,886.00 $5,698.00 $5,814.00 $5,802.00 3.30% 1 i!(r,, 0.21% 0.00% 2023 Proposed 2022 Payable $244,000 $237,000 $0 $0 $0 $0 $244,000 $237,000 $4,677.26 $5,196.27 $666.74 $689.73 $5,344.00 $5,886.00 Y 11 '�r 3.30% Amt Adj Amt Write Off Amt Charge Amt Payment $0.00 $0.00 $0.00 ($2,943.00) $0.00 $0.00 $0.00 ($2,943.00) $0.00 $0.00 $0.00 ($2,849.00) $0.00 $0.00 $0.00 ($2,849.00) https://beacon.schneidercorp.com/Application.aspx?AppID=187&LaverlD=2505&PageTypelD=4&PagelD=1310&KevValue=155010034010 2/5 1/2/24, 2:01 PM Beacon - Wright County, MN - Report: 155010034010 Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1655320 10/15/2020 2020 $0.00 $0.00 $0.00 ($2,907.00) 1620971 5/14/2020 2020 $0.00 $0.00 $0.00 ($2,907.00) 1580499 10/16/2019 2019 $0.00 $0.00 $0.00 ($2,901.00) 1540519 5/13/2019 2019 $0.00 $0.00 $0.00 ($2,901.00) 1495122 10/11/2018 2018 $0.00 $0.00 $0.00 ($2,770.00) 1452637 5/7/2018 2018 $0.00 $0.00 $0.00 ($2,770.00) 1424687 10/17/2017 2017 $0.00 $0.00 $0.00 ($3,195.00) 1372033 5/8/2017 2017 $0.00 $0.00 $0.00 ($3,195.00) 1319498 10/6/2016 2016 $0.00 $0.00 $0.00 ($2,902.00) 1274310 5/4/2016 2016 $0.00 $0.00 $0.00 ($2,902.00) Photos R9 Sketches https:Hbeacon.schneidercorp.com/Application.aspx?APPID=187&LaverlD=2505&PageTvpelD=4&PageID=1310&KevValue=155010034010 3/5 1/2/24, 2:01 PM Map Beacon - Wright County, MN - Report: 155010034010 CAN 60 f No data available for the following modules: Land GA/RP, Extra Features, OBY, OBY (Working 2024 Assessment). https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LaVerID=2505&PageTvpelD=4&PageID=1310&KevValue=155010034010 4/5 EDA Agenda: 1/10/24 4C. Consideration of Authorizing Professional Services Contract with WSB & Associates to complete a Phase I ESA (Environmental Site Assessment) at 118 Broadwav East in the amount of $4,800 Prepared by: Meeting Date: Nx Regular Agenda Item Economic Development Manager 1/10/24 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development Director, City Administrator Community Economic Development Coordinator ACTION REQUESTED Motion to authorize a professional services contract with WSB & Associates for completion of a Phase I ESA (Environmental Site Assessment) at 118 Broadway East in the amount of $4,800. Motion of other. REFERENCE AND BACKGROUND The EDA is asked to consider entering into a professional services contract with WSB & Associates to complete a Phase I ESA property located at 118 Broadway East. The proposed environmental study is in anticipation of potential acquisition considerations and future redevelopment activities in Block 34. This step is considered a prudent risk management action as the EDA contemplates long-term redevelopment options related to Block 34. Phase I ESAs typically include site visits and observations, and photographs as well as review of various existing reference materials and reports about the property. This study can provide evidence of potential environmental concerns and may warrant further studies such as a Phase II Environmental Review which involves tasks consisting of drilling, probing, and digging, etc. The Phase I ESA report will also offer recommendations for any future studies. The Phase I ESA scope of work proposal for 118 Broadway Street East is attached to this report as Exhibit A. It should be noted that WSB is the City's designated Environmental Studies -Review consultant. I. Budget Impact: The budget impact from the review and acceptance of authorizing the Phase I ESA is $4,800. The EDA received notice that its recent $10,000 Grant submitted to the Initiative Foundation was approved. Some of those funds are proposed to be the source of funding to cover the cost of completing the Phase I ESA. The balance of the needed funding would be derived from the EDA General Fund Professional Services budget line. The 2024 EDA General Fund budget allocates $31,700 for this line item. EDA Agenda: 1/10/24 II. Staff Workload Impact: The Community Development Director and Economic Development Manager have committed time to completing tasks related to the proposed environmental studies. Those tasks include discussions with the consultant regarding the desired scope of work and the optimal timeline of completion. Additional time toward this effort involves report preparation and EDA meeting presentation. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: Completing a Phase I ESA is a required step prior to any potential future redevelopment activities involving the 118 Broadway Street East parcel. STAFF RECOMMENDATION Staff recommend the EDA authorize entering into a professional service contract with WSB & Associates for completion of a Phase I ESA of 118 Broadway Street East. The Phase I ESA will provide information about the environmental status of the parcel. The Phase I ESA will also offer recommendations regarding any additional follow-up environmental studies for the property. Staff are confident in WSB & Associates' capability to complete the scope of work outlined in the proposal as they have demonstrated in the previously completed Phase I ESAs in Block 34 and Block 52. SUPPORTING DATA A. WSB & Associates Scope of Work Proposal — Phase I ESA — 118 Broadway East B. Aerial Photo C. Wright County Beacon Property Report 2 0 U U Z W m 0 CO00 a LO LO Z CO J 0 IL a W Z Z 0 Cl) W U) W n Z W a a Z W X 0 wsb January 4, 2024 Jim Thares City of Monticello — Economic Development Manager 505 Walnut Street Monticello, MN 55362 Re: Scope of Work and Cost — Phase I Environmental Site Assessment Block 34 — 118 Broadway East Monticello, MN 55362 Dear Mr. Thares: As requested, outlined below is a scope of work and cost estimate to perform a Phase I Environmental Site Assessment (ESA) for the above referenced property (Subject Property). WSB understands the Subject Property consists of Wright County Parcel 155010034120 and is approximately 0.1 acres in size. The Subject Property includes a single -story commercial building that was constructed in 1940 and is occupied by a civil engineering business. The Phase I ESA will be performed in general compliance with the ASTM E1527-21 Standard Practice for Environmental Site Assessments. WSB understands that the assessment report will be used for acquisition and redevelopment purposes. The following items will be performed as part of the Phase I ESA: Historical Records Review WSB will obtain federal and state regulatory database information for the Subject Property from a commercial regulatory vendor to evaluate potential recognized environmental conditions (RECs). This review will not include a detailed review of all listings identified in the regulatory database search, but rather will focus on listings which have the potential to result in a REC. The following historical records will be reviewed: • Sanborn Fire Insurance Maps • Historical Aerial Photographs • City Directories • Historical Topographic Maps • Federal EPA -listed sites including NPL, CERCLIS, RCRA, and ERNS • State MPCA-listed sites including UST, LUST, MERLA, VIC, spills, landfills, and others • Regulatory file reviews will be conducted per ASTM E 1527-21. IntPrviPwG WSB will conduct interviews with Subject Property representatives (via phone or in person) regarding past and current Subject Property use activities. Any entity relying on the Phase I ESA will complete a User Questionnaire provided by WSB. The following representatives will be contacted and interviewed (if available): • Current or past Subject Property owners • Current Subject Property management or maintenance staff • City building and inspection department • City fire department Mr. Jim Thares January 4, 2024 Page 2 Site Reconnaissance WSB will make a direct visual inspection of the Subject Property and adjoining properties. All Subject Property areas, including buildings and storage structures, will be accessed as part of the site reconnaissance. The adjoining properties will be viewed from the public right-of-way areas. The site reconnaissance will include observation and documentation of the following: • Location of visible aboveground or underground storage tanks • Location of chemical or hazardous material storage • Location of water bodies (if present) • Condition of vegetation and exposed soils • General parcel topography • Photographic documentation • Evidence of Methamphetamine manufacturing labs Reporting WSB will summarize the results of the Phase I ESA in a final documentation report. The report will be completed in accordance with the ASTM E1527-21 standard and shall include the following: • Supporting documentation upon which the findings and opinions are based • Scope of services performed • A "findings" section which will detail any RECs identified by the assessment • The opinion of the environmental professional • Any conclusions drawn from the assessment Assumptions The following items are assumed for this scope of work: Subject Property access, including the interior of the current building(s), will be facilitated by the City of Monticello (City). Based on a review of the Minnesota Pollution Control Agency (MPGA) and Minnesota Department of Agriculture (MDA) What's In My Neighborhood databases, four regulatory files associated with adjoining properties will be required. These file reviews include: o LS0020142 — Former Municipal Gas Facility — 130 Broadway St E o LS0019812 —Former Phillips 66 Gas Station — 100 Broadway St E o PB4857 — Former Phillips 66 Gas Station — 100 Broadway St E o VP33920 — 100 Broadway St E Previous environmental investigation reports completed for the Subject Property (if available), will be reviewed as part of this assessment. An Environmental Lien and Activity/Use Limitation (AUL) search will not be completed by WSB. The City will provide one review/comment of the Phase I ESA report. Total Cost and Schedule The cost to perform the above-described Phase I ESA services is not to exceed $4,800. Upon authorization, the work will be initiated immediately. If additional work is required beyond the scope outlined above, WSB will receive authorization from the City prior to completing extra work. Mr. Jim Thares January 4, 2024 Page 3 Acceptance This proposal represents our understanding of the project scope. All work completed through this proposal will be governed by the enclosed General Contract Provisions. If the scope and fee are acceptable, please sign on the space provided and return one copy to WSB. We are available to begin work once we receive signed authorization. WSB appreciates the opportunity of being considered for this project and we look forward to providing our professional services to you. If you have any questions about this proposal, please feel free to call Ryan Spencer at 612.723-3644 or rspencer(a wsbenq.com. Sincerely, WSB pkv-� xz�� Ryan Spencer, CHMM Ben Fehr Director of EIR Senior Environmental Scientist Enclosures WSB 2024 Rate Schedule General Contract Provisions SIGNATURE hereby authorize the above scope of work, schedule, and cost. Name (Print) Signature Date 2024 Rate Schedule ws b, Costs associated with word processing, cell phones and reproduction of common correspondence are included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by contract. I Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit fees; delivery costs; etc. I Multiple rates illustrate the varying levels of experience within each category. I Rate Schedule is adjusted annually. WSBENG.COM Billing Rate/Hour SR. PRINCIPAL I SR. ASSOCIATE $249— $265 PRINCIPAL I ASSOCIATE $184 —$237 SR. PROJECT MANAGER I SR. PROJECT ENGINEER $184— $237 PROJECT MANAGER PROJECT MANAGER ASSISTANT $90 —$180 PROJECT ENGINEER GRADUATE ENGINEER $108— $179 ENGINEERING TECHNICIAN I ENGINEERING SPECIALIST $72 —$177 LANDSCAPE ARCHITECT I SR. LANDSCAPE ARCHITECT $82 —$172 ENVIRONMENTAL SCIENTIST I SR. ENVIRONMENTAL SCIENTIST $73 —$170 PLANNER I SR. PLANNER $85—$177 GIS SPECIALIST I SR. GIS SPECIALIST $82—$177 CONSTRUCTION OBSERVER $110— $143 SURVEY Survey Office Technician $128— $159 Drone Pilot $186 One -Person Crew $186 Two -Person Crew $250 OFFICE TECHNICIAN $64 —$140 Costs associated with word processing, cell phones and reproduction of common correspondence are included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by contract. I Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit fees; delivery costs; etc. I Multiple rates illustrate the varying levels of experience within each category. I Rate Schedule is adjusted annually. WSBENG.COM WSB LLC EXHIBIT A GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT ARTICLE 1 — PERFORMANCE OF THE WORK Consultant shall perform the services under this Agreement in accordance with the care and skill ordinarily exercised by members of Consultant's profession practicing under similar circumstances at the same time and in the same locality. Consultant makes no warranties, express or implied, under this Agreement or otherwise, in connection with its services. ARTICLE 2 — ADDITIONAL SERVICES If the Client requests that the Consultant perform any services which are beyond the scope as set forth in the Agreement, or if changed or unforeseen conditions require the Consultant to perform services outside of the original scope, then, Consultant shall promptly notify the Client of cause and nature of the additional services required. Upon notification, Consultant shall be entitled to an equitable adjustment in both compensation and time to perform. ARTICLE 3 — SCHEDULE Unless specific periods of time or dates for providing services are specified in a separate Exhibit, Consultant's obligation to render services hereunder will be for a period which may reasonably be required for the completion of said services. The Client agrees that Consultant is not responsible for damages arising directly or indirectly from any delays for causes beyond Consultant's control. For purposes of this Agreement, such causes include, but are not limited to, strikes or other labor disputes; severe weather disruptions, or other natural disasters or acts of God; fires, riots, war or other emergencies; any action or failure to act in a timely manner by any government agency; actions or failure to act by the Client or the Client's contractor or consultants; or discovery of any hazardous substance or differing site conditions. If the delays outside of Consultant's control increase the cost or the time required by Consultant to perform its services in accordance with professional skill and care, then Consultant shall be entitled to a reasonable adjustment in schedule and compensation. ARTICLE 4 — JOBSITE SAFETY Neither the professional activities of the Consultant, nor the presence of the Consultant or its employees and subconsultants at a construction/project site, shall impose any duty on the Consultant, nor relieve the general contractor of its obligations, duties and responsibilities including, but not limited to, construction means, methods, sequence, techniques or procedures necessary for performing, superintending and coordinating the work in accordance with the contract documents and any health or safety precautions required by any regulatory agencies. The Consultant and its personnel have no authority to exercise any control over any construction contractor or its employees in connection with their work or any health or safety programs or procedures. The Client agrees that the general contractor shall be solely responsible for jobsite and worker safety and warrants that this intent shall be carried out in the Client's contract with the general contractor. ARTICLE 5 — OPINIONS OF PROBABLE COST Opinions, if any, of probable cost, construction cost, financial evaluations, feasibility studies, economic analyses of alternate solutions and utilitarian considerations of operations and maintenance costs, collectively referred to as "Cost Estimates," provided for are made or to be made on the basis of the Consultant's experience and qualifications and represent the Consultant's bestjudgment as an experienced and qualified professional design firm. The parties acknowledge, however, that the Consultant does not have control over the cost of labor, material, equipment or services furnished by others or over market conditions or contractor's methods of determining their prices, and any evaluation of any facility to be constructed or acquired, or work to be performed must, of necessity, be viewed as simply preliminary. Accordingly, the Consultant and Client agree that the proposals, bids or actual costs may vary from opinions, evaluations or studies submitted by the Consultant and that Consultant assumes no responsibility for the accuracy of opinions of Cost Estimates and Client expressly waives any claims related to the Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 1 accuracy of opinions of Cost Estimates. If Client wishes greater assurance as to Cost Estimates, Client shall employ an independent cost estimator as part of its Project responsibilities. ARTICLE 6 — REUSE AND DISPOSITION OF INSTRUMENTS OF SERVICE All documents, including reports, drawings, calculations, specifications, CADD materials, computers software or hardware or other work product prepared by Consultant pursuant to this Agreement are Consultant's Instruments of Service and Consultant retains all ownership interests in Instruments of Service, including copyrights. The Instruments of Service are not intended or represented to be suitable for reuse by the Client or others on extensions of the Project or on any other project. Copies of documents that may be relied upon by Client are limited to the printed copies (also known as hard copies) that are signed or sealed by Consultant. Files in electronic format furnished to Client are only for convenience of Client. Any conclusion or information obtained or derived from such electronic files will be at the user's sole risk. Consultant makes no representations as to long term compatibility, usability or readability of electronic files. If requested, at the time of completion or termination of the work, the Consultant may make available to the Client the Instruments of Service upon (i) payment of amounts due and owing for work performed and expenses incurred to the date and time of termination, and (ii) fulfillment of the Client's obligations under this Agreement. Any use or re -use of such Instruments of Service by the Client or others without written consent, verification or adaptation by the Consultant except for the specific purpose intended will be at the Client's risk and full legal responsibility and Client expressly releases all claims against Consultant arising from re -use of the Instruments of Service without Consultant's written consent, verification or adaptation. The Client will, to the fullest extent permitted by law, indemnify and hold the Consultant harmless from any claim, liability or cost (including reasonable attorneys' fees, and defense costs) arising or allegedly arising out of any unauthorized reuse or modification of these Instruments of Service by the Client or any person or entity that acquires or obtains the reports, plans and specifications from or through the Client without the written authorization of the Consultant. Under no circumstances shall transfer of Instruments of Service be deemed a sale by Consultant, and Consultant makes no warranties, either expressed or implied, of merchantability and fitness for any particular purpose. Consultant shall be entitled to compensation for any consent, verification or adaption of the Instruments of Service for extensions of the Project or any other project. ARTICLE 7 — PAYMENTS Payment to Consultant shall be on a lump sum or hourly basis as set out in the Agreement. Consultant is entitled to payment of amounts due plus reimbursable expenses. Client will pay the balance stated on the invoice unless Client notifies Consultant in writing of any disputed items within fifteen (15) days from the date of invoice. In the event of any dispute, Client will pay all undisputed amounts in the ordinary course, and the Parties will endeavor to resolve all disputed items. All accounts unpaid after thirty (30) days from the date of original invoice shall be subject to a service charge of 1-1/2% per month, or the maximum amount authorized by law, whichever is less. Consultant reserves the right to retain instruments of service until all invoices are paid in full. Consultant will not be liable for any claims of loss, delay, or damage by Client for reason of withholding services or instruments of service until all invoices are paid in full. Consultant shall be entitled to recover all reasonable costs and disbursements, including reasonable attorney fees, incurred in connection with collecting amounts owed by Client. In addition, Consultant may, after giving seven (7) days' written notice to Client, suspend services under this Agreement until it receives full payment for all amounts then due for services, expenses and charges. ARTICLE 8 — SUBMITTALS AND PAY APPLICATIONS If the Scope of Work includes the Consultant reviewing and certifying the amounts due the Contractor, the Consultant's certification for payment shall constitute a representation to the Client, that to the best of the Consultant's knowledge, information and belief, the Work has progressed to the point indicated and that the quality of the Work is in general accordance with the Documents issued by the Consultant. The issuance of a Certificate for Payment shall not be a representation that the Consultant has (1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed construction means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received from Subcontractors and material suppliers and other data requested by the Client to substantiate the Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 2 Contractor's right to payment, or (4) ascertained how or for what purpose the Contractor has used money previously paid on account of the Contract Sum. Contractor shall remain exclusively responsible for its Work. If the Scope of Work includes Consultant's review and approval of submittals from the Contractor, such review shall be for the limited purpose of checking for conformance with the information given and the design concept. The review of submittals is not intended to determine the accuracy of all components, the accuracy of the quantities or dimensions, or the safety procedures, means or methods to be used in construction, and those responsibilities remain exclusively with the Client's contractor. ARTICLE 9 — HAZARDOUS MATERIALS Notwithstanding the Scope of Services to be provided pursuant to this Agreement, it is understood and agreed that Consultant is not a user, handler, generator, operator, treater, arranger, Storer, transporter, or disposer of hazardous or toxic substances, pollutants or contaminants as any of the foregoing items are defined by Federal, State and/or local law, rules or regulations, now existing or hereafter amended, and which may be found or identified on any Project which is undertaken by Consultant. The Client agrees to indemnify Consultant and its officers, subconsultant(s), employees and agents from and against any and all claims, losses, damages, liability and costs, including but not limited to costs of defense, arising out of or in any way connected with, the presence, discharge, release, or escape of hazardous or toxic substances, pollutants or contaminants of any kind, except that this clause shall not apply to such liability as may arise out of Consultant's sole negligence in the performance of services under this Agreement arising from or relating to hazardous or toxic substances, pollutants, or contaminants specifically identified by the Client and included within Consultant's services to be provided under this Agreement. ARTICLE 10 — INSURANCE Consultant has procured general and professional liability insurance. On request, Consultant will furnish client with a certificate of insurance detailing the precise nature and type of insurance, along with applicable policy limits. ARTICLE 11 —TERMINATION OR SUSPENSION If Consultant's services are delayed or suspended in whole or in part by Client, or if Consultant's services are delayed by actions or inactions of others for more than sixty (60) days through no fault of Consultant, Consultant shall be entitled to either terminate its agreement upon seven (7) days written notice or, at its option, accept an equitable adjustment of rates and amounts of compensation provided for elsewhere in this Agreement to reflect reasonable costs incurred by Consultant in connection with, among other things, such delay or suspension and reactivation and the fact that the time for performance under this Agreement has been revised. This Agreement may be terminated by either party upon seven (7) days written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. In the event of termination Consultant shall be compensated for services performed prior to termination date, including charges for expenses and equipment costs then due and all termination expenses. This Agreement may be terminated by either party upon thirty (30) days' written notice without cause. Consultant shall upon termination only be entitled to payment for the work performed up to the Date of termination. In the event of termination, copies of plans, reports, specifications, electronic drawing/data files (CADD), field data, notes, and other documents whether written, printed or recorded on any medium whatsoever, finished or unfinished, prepared by the Consultant pursuant to this Agreement and pertaining to the work or to the Project, (hereinafter "Instruments of Service"), shall be made available to the Client upon payment of all amounts due as of the date of termination. All provisions of this Agreement allocating responsibility or liability between the Client and Consultant shall survive the completion of the services hereunder and/or the termination of this Agreement. Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 3 ARTICLE 12 — INDEMNIFICATION The Consultant agrees to indemnify and hold the Client harmless from any damage, liability or cost to the extent caused by the Consultant's negligence or willful misconduct. The Client agrees to indemnify and hold the Consultant harmless from any damage, liability or cost to the extent caused by the Client's negligence or willful misconduct. ARTICLE 13 — WAIVER OF CONSEQUENTIAL DAMAGES Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, neither the Client nor the Consultant, their respective officers, directors, partners, employees, contractors or subconsultants shall be liable to the other or shall make any claim for any incidental, indirect or consequential damages arising out of or connected in any way to the Project or to this Agreement. This mutual waiver of consequential damages shall include, but is not limited to, loss of use, loss of profit, loss of business, loss of income, loss of reputation and any other consequential damages that either party may have incurred from any cause of action including negligence, strict liability, breach of contract and breach of strict or implied warranty. Both the Client and the Consultant shall require similar waivers of consequential damages protecting all the entities or persons named herein in all contracts and subcontracts with others involved in this project. This mutual waiver shall apply even if the damages were foreseeable and regardless of the theory of recovery plead or asserted. ARTICLE 14 — WAIVER OF CLAIMS FOR PERSONAL LIABILITY It is intended by the parties to this Agreement that Consultant's services shall not subject Consultant's employees, officers or directors to any personal legal exposure for the risks associated with this Agreement. Therefore, and notwithstanding anything to the contrary contained herein, the Client agrees that as the Client's sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against Consultant, and not against any of Consultant's individual employees, officers or directors. ARTICLE 15 —ASSIGNMENT Neither Party to this Agreement shall assign its interest in this agreement, any proceeds due under the Agreement nor any claims that may arise from services or payments due under the Agreement without the written consent of the other Party. Any assignment in violation of this provision shall be null and void. Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Consultant or Client. This Agreement is for the exclusive benefit of Consultant and Client and there are no other intended beneficiaries of this Agreement. ARTICLE 16 — CONFLICT RESOLUTION In an effort to resolve any conflicts that arise during the design or construction of the project or following the completion of the project, the Client and Consultant agree that all disputes between them arising out of or relating to this Agreement shall be submitted to nonbinding mediation as a precondition to any formal legal proceedings. ARTICLE 17 — CONFIDENTIALITY The Consultant agrees to keep confidential and not to disclose to any person or entity, other than the Consultant's employees, subconsultants and the general contractor and subcontractors, if appropriate, any data and information furnished to the Consultant and marked CONFIDENTIAL by the Client. These provisions shall not apply to information in whatever form that comes into the public domain, nor shall it restrict the Consultant from giving notices required by law or complying with an order to provide information or data when such order is issued by a court, administrative agency or other authority with proper jurisdiction, or if it is reasonably necessary for the Consultant to complete services under the Agreement or defend itself from any suit or claim. ARTICLE 18 — LIMITATION OF LIABILITY To the fullest extent permitted by law, and not withstanding any other provision of this Agreement, the total liability, in the aggregate, of the Consultant and the Consultant's officers, directors, partners, employees and subconsultants, and any of them, to the Client and anyone claiming by or through the Client, for any and all claims, losses, costs or damages, including attorneys' fees and costs and expert -witness fees and costs of any nature whatsoever or claims expenses resulting from or in any way related to the project or Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 4 the Agreement from any cause or causes shall not exceed $20,000. It is intended that this limitation apply to any and all liability or cause of action, including without limitation active and passive negligence however alleged or arising, unless otherwise prohibited by law. In no event shall the Consultant's liability exceed the amount of available insurance proceeds. ARTICLE 19 — CONTROLLING LAW This Agreement is to be governed by the laws of the State of Minnesota. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, including but not limited to claims for negligence or breach of warranty, that is not settled by nonbinding mediation shall be settled by the law of the State of Minnesota. ARTICLE 20 — LOCATION OF UNDERGROUND IMPROVEMENTS Where requested by Client, Consultant will perform customary research to assist Client in locating and identifying subterranean structures or utilities. However, Consultant may reasonably rely on information from the Client and information provided by local utilities related to structures or utilities and will not be liable for damages incurred where Consultant has complied with the standard of care and acted in reliance on that information. The Client agrees to waive all claims and causes of action against the Consultant for claims by Client or its contractors relating to the identification, removal, relocation, or restoration of utilities, or damages to underground improvements resulting from subsurface penetration locations established by the Consultant. ARTICLE 21 — ACCESS TO SITE Client shall arrange and provide such access to the site as is necessary for Consultant to perform the work. ARTICLE 22 - SAMPLE DISPOSAL All environmental samples ("Samples") collected by Consultant are sent to and analyzed by a third -party laboratory, and all such Samples shall be disposed of according to the third -party laboratory's policies. ARTICLE 23 — EXPERT WITNESS AND SUBPOENA FEES Consultant shall not be retained as an expert witness except by separate, written agreement. The Client agrees to pay Consultant's costs to respond to any subpoena related to the work performed under this Agreement, including attorneys' fees and administrative costs. Article 24 — FIDUCIARY RELATIONSHIP Client agrees that this neither Agreement nor the services Consultant is providing under this Agreement creates a fiduciary relationship between Consultant and Client. Exhibit A — GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN Page 5 OK-11,11whBeaco I « Wright County, MN 15N5218001 010 155218' 155010 rI' X75 25 4' - - - L 1550{100340 40 3Rp 86 ft r,. Date created: 12/27/2023 Last Data Uploaded: 12/27/2023 11:30:35 AM Developed by" Schneider 7 GEOSPATIAL Overview Legend Roads — CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑c ❑t ❑ Parcels 0 Torrens 12/27/23, 4:20 PM Wright County, MN Summary Beacon - Wright County, MN - Report: 155010034120 Parcel ID 155010034120 Property Address 118 BROADWAY E Architecture MONTICELLO MN 55362 Sec/Twp/Rng 11-121-025 Brief Tax SECT -11 TWP-121 RANGE -025 ORIGINAL PLAT MONTICELLO LOT - Description 012 BLOCK -034 W24FT OF LT12 Seq (Note: Not to be used on legal documents) Class 233 - 3A COMMERCIAL LAND AND BUILDING District (1101) CITY OF MONTICELLO-0882 School District 0882 0 0 0 0 3,952.000 S (Note: Class refers to Assessor's Classification Used For Property Tax 35.00 0.00 0.00 14.853 1.000 Purposes) GIS Acres Parcel: 155010034120 Acres: 0.09 Acres USAB: 0.09 Acres WATE: 0.00 Acres ROW: 0.00 Sq Ft: 3,952.13 Owner Primary Owner CIVIL ENGINEERING SITE DESIGN LLC 118 BROADWAY E PO BOX 566 MONTICELLO MN 55362 Land Year Built 1940 Architecture N/A Above Grade Living Area 0 Finished Basement Sqft Unit Eff 06 Seq Code CER Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Rate Div % Value 1 DOWNTOWN 0 0 0 0 3,952.000 S 11.000 35.00 0.00 0.00 14.853 1.000 58,700 2 BLACKTOP 1.50 SF 0 0 0 0 1,800.000 U 1.500 0.00 0.00 0.00 1.500 1.000 2,700 Heat Total 3,952.000 CEN.EVAP Bedrooms 61,400 Buildings Building 1 Year Built 1940 Architecture N/A Above Grade Living Area 0 Finished Basement Sqft 0 Construction Quality 06 Foundation Type CONC BLOCK Frame Type (C) Frame with Concrete Size/Shape Exterior Walls STUCCO Windows N/A Roof Structure FLAT Roof Cover ROLL COMP Interior Walls N/A Floor Cover N/A Heat FORCED AIR Air Conditioning CEN.EVAP Bedrooms 0 Bathrooms N/A Gross Building Area 1120 hftps://beacon. sch neid erco rp. corn/APP1 i cation. aspx?AppID=187&LaverlD=2505&PageTvpeID=4&Pagel D=1310&KevValue=155010034120 1/5 12/27/23,4:20 PM Building 2 Year Built 1940 Architecture N/A Above Grade Living Area 0 Finished Basement Sgft 0 Construction Quality 06 Foundation Type CONC BLOCK Frame Type (C) Frame with Concrete Size/Shape Exterior Walls STUCCO Windows N/A Roof Structure FLAT Roof Cover N/A Interior Walls N/A Floor Cover N/A Heat FORCED AIR Air Conditioning CEN.EVAP Bedrooms 0 Bathrooms N/A Gross Building Area 320 Sales Beacon - Wright County, MN - Report: 155010034120 Recent Sales In Area Sale date range: From: 12/27/2020 To: 12/27/2023 Sales by Neighborhood Sales by Subdivisi'-- Adjusted Multi Instr Qualified Sale Transfer History Sale Sale Sale S.S. S.S. Rjt. Transact Parcel Type Sale Sale Date Book Page Type Buyer Seller Price Price eCRV # eCRV Type Rcmd. Rsn. Num N CD Q 12/1/2011 1- CIVIL STEWARD $120,000 $120,000 117156 1 NA -NOT 117156 KRUTZIG MICHAEL; KRUTZIG ALLISON LOPEZ RAINER; LOPEZALENA 6/23/2003 Improved ENGINEERING JAMES APPLIC Valuation SITE DESIGN 2023 Assessment 2022 Assessment 2021 Assessment 2020 Assessment 2019 Assessment + Estimated Land Value $61,400 $45,800 N WD U 12/1/2011 1- CIVIL STEWART,JAMES $120,000 $120,000 1193228 1 14 - $0 $0 $0 $0 $0 Improved ENGINEERING C $115,200 $114,300 CFD/INT 25.00% 3.47% 0.00% 0.79% 0.00% SITE DESIGN, PA LLC N WD U 7/12/2006 1- STEWART LOPEZ RAINER $225,000 $225,000 102083 1 06- 102083 Improved JAMES UNUSUAL FI N WD U 6/5/2003 1- LOPEZ KRUTZIG $131,500 $131,500 84607 1 12- 84607 Improved RAINER MICHAEL UNIQUE REJ Recent Sales In Area Sale date range: From: 12/27/2020 To: 12/27/2023 Sales by Neighborhood Sales by Subdivisi'-- 1500 Feet v Sales by Distance Transfer History Grantor Grantee Recorded Date Doc Type Doc No STEWART JAMES C CIVIL ENGINEERING SITE DESIGN LLC 12/11/2020 WAR 1451456 STEWART JAMES C CIVIL ENGINEERING SITE DESIGN LLC 12/29/2011 CFD 1191221 LOPEZ RAINER; LOPEZALENA STEWARTJAMESC 7/21/2006 WAR 1018167 KRUTZIG MICHAEL; KRUTZIG ALLISON LOPEZ RAINER; LOPEZALENA 6/23/2003 WAR 857213 Note: Transfer History data is from Landl-ink beginning 01/01/2003 Valuation 2023 Assessment 2022 Assessment 2021 Assessment 2020 Assessment 2019 Assessment + Estimated Land Value $61,400 $45,800 $45,800 $45,800 $44,900 + Estimated Building Value $87,600 $73,400 $69,400 $69,400 $69,400 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $149,000 $119,200 $115,200 $115,200 $114,300 % Change 25.00% 3.47% 0.00% 0.79% 0.00% haps://beacon.schneidercorp.com/Application-aspx?APPID=187&LaverlD=2505&PageTvpelD=4&PagelD=1310&KevValue=155010034120 2/5 12/27/23, 4:20 PM Taxation Estimated Market Value 2021 Payable Excluded Value 2019 Payable Homestead Exclusion $115,200 = Taxable Market Value $111,000 Net Taxes Due $0 + Special Assessments $0 = Total Taxes Due $0 % Change $0 Taxation (Preliminary 2023 Taxes Payable) $115,200 Estimated Market Value $111,000 Excluded Value $1,964.00 Homestead Exclusion $1,924.00 = Taxable Market Value $0.00 Net Taxes Due $0.00 + Special Assessments $1,964.00 = Total Taxes Due $1,924.00 % Change 0.10% Taxes and Special Assessments Payable in 2023 are preliminary. 0.00% Taxes Paid Receipt # Receipt Print Date Bill Pay Year 1749473 4/18/2022 2022 1681434 4/20/2021 2021 1604693 4/27/2020 2020 1519150 3/29/2019 2019 1444851 4/16/2018 2018 1356157 3/21/2017 2017 1263982 3/29/2016 2016 Photos Beacon - Wright County, MN - Report: 155010034120 2022 Payable 2021 Payable 2020 Payable 2019 Payable $115,200 $115,200 $114,300 $111,000 $0 $0 $0 $0 $0 $0 $0 $0 $115,200 $115,200 $114,300 $111,000 $1,964.00 $1,964.00 $1,962.00 $1,924.00 $0.00 $0.00 $0.00 $0.00 $1,964.00 $1,964.00 $1,962.00 $1,924.00 0.00% 0.10% 1.98% 0.00% 2023 Proposed 2022 Payable $119,200 $115,200 $0 $0 $0 $0 $119,200 $115,200 $1,774.00 $1,964.00 $0.00 $0.00 $1,774.00 $1,964.00 -9.67% 0.001yo Amt Adj Amt Write Off Amt Charge Amt Payment $0.00 $0.00 $0.00 ($1,964.00) $0.00 $0.00 $0.00 ($1,964.00) $0.00 $0.00 $0.00 ($1,962.00) $0.00 $0.00 $0.00 ($1,924.00) $0.00 $0.00 $0.00 ($1,782.00) $0.00 $0.00 $0.00 ($2,498.00) $0.00 $0.00 $0.00 ($2,610.00) 1 Sketches https://beacon.schneidercorp.com/Ai)plication.aspx?APPID=187&LaverlD=2505&PageTvpelD=4&PagelD=1310&KevValue=155010034120 3/5 12/27/23,4:20 PM Beacon - Wright County, MN - Report: 155010034120 1 �G SAI. 800sf :D -, 16 sIZ 320sf https:Hbeacon.schneidercorp.com/Application.aspx?ApPID=187&LaverlD=2505&PageTvpelD=4&Page[D=1310&KevValue=155010034120 4/5 12/27/23, 4:20 PM Map Beacon - Wright County, MN - Report: 155010034120 16' BAS � 320sf rq 16' No data available for the following modules: Land GARP, Extra Features, OBY, OBY (Working 2024 Assessment). 1 he information provided on this site is intended for reference purposes only. The information is not Contact Us Developed by suitable for legai, engineering, or surveying purposes. Wright County does not guarantee the accuracy Schneider of the information contained herein. G f O S PAT I A L I User Privacy Policy i GDPR Privacy Notice Last Data Upload: 12/27/2023,10:30:35 AM https://beacon.schneidercorp.com/Application.aspx?APPID=187&LavedD=2505&PageTvpeID=4&PageID=1310&KevValue=155010034120 5/5 EDA Agenda: 1/10/2024 4D. Consideration of Authorizing an Amendment to the Downtown Facade Improvement Forgivable Loan Program Policy and Eligibility Area Prepared by: Meeting Date: 0 Regular Agenda Item Community & Economic Development 1/10/2024 ❑ Consent Agenda Item Coordinator Reviewed by: Approved by: Economic Development Manager, City Administrator Community Development Director Motion to adopt the proposed amendments to the Downtown Fagade Improvement Forgivable Loan Program Policy and Eligibility Area. Motion of other. REFERENCE AND BACKGROUND At a workshop meeting on December 13, 2023, the EDA discussed a potential Facade Improvement application for 109 Walnut Street. The EDA was asked by the property owner if they would entertain expanding the eligibility area to include those parcels adjacent to the Block 52 Redevelopment project. Previously, the EDA authorized an expansion to the program eligibility area to include all the remaining properties on Block 52, following redevelopment. At this time, there have been no completed Fagade Improvement projects on properties that were included in the eligibility area expansion and only one Fagade Improvement project has been completed, the Agosto building. Currently, the eligibility area does not include parcels along the West side of Walnut Street, between Broadway Street and River Street. In maintaining consistency with economic development goals in the downtown as defined by the Monticello 2040 Vision + Plan (Comp Plan), expanding the eligibility area of the program will allow for additional property owners in that key corridor to renovate and reinvest in their existing buildings downtown. In addition to the proposed expansion of the target eligibility area, staff is also proposing amendments to the program's policy document language to better reflect the proposed and recent changes to the program. When this program was originally launched, the EDA worked with an architect to develop renderings for each building included in the eligibility area, which was limited to properties fronting Broadway on Block 35. As the eligibility area continued to expand, no new renderings for the added buildings were authorized by the EDA. City staff believes the proposed amendments to the noted section in the supporting documents will EDA Agenda: 1/10/2024 provide the necessary flexibility for the interested property owner to either work with the EDA to develop renderings for proposed improvements, or in the alternative, submit their own renderings for the EDA to review and consider. Those proposed policy amendments are included as supporting data as Exhibit B, in a format that is consistent with the City's other business subsidy policies. Budget Impact: Staff do not see any immediate impacts to the budget with the adoption of these proposed amendments. As the eligibility area for the Fagade Program expands, there could be a larger impact to the EDA budget if more eligible properties choose to participate in the program. The EDA retains the authority to approve or deny any application on a case-by-case basis, including budget limitations. II. Staff Workload Impact: Staff's workload impact for this item is limited to drafting the proposed amended language, creating a new aerial image depicting the proposed eligibility area, and development of this agenda item for EDA consideration. Total staff time on this item to this point is roughly 2-3 hours. III. Comprehensive Plan Impact: The proposed amendment to the eligibility area allows for the Fagade Improvement program to offer improvements to existing buildings along a key downtown corridor along Walnut Street between Broadway Street and River Street. As identified in the Downtown Small Area Plan, revitalization of the downtown area includes reinvestment in existing buildings. The Downtown Small Area Plan specifically calls for shifting the center of Downtown to Walnut and Broadway. Expansion of the program area boundaries is in support of a vital Walnut corridor. STAFF RECOMMENDATION Staff recommends approval of the proposed amendments to the Facade Improvement Forgivable Loan Program policies. Staff believe the proposed amendments continue to promote not only the goals of the program itself, but also the goals identified in the Comp Plan and Downtown Small Area Plan, advancing economic development downtown in a variety of ways and providing property owners various paths for revitalizing their buildings as they find necessary. SUPPORTING DATA A. Aerial Image of Proposed Eligibility Area B. Redlined Downtown Fagade Improvement Forgivable Loan Program Policy C. Current Downtown Fagade Improvement Forgivable Loan Program Policy, Amended November 9, 2022 Proposed Amended Downtown Facade Improvement Grant Program Eligibility Area Created by: City of Monticello CITY OF City Policy and eProcedure MontSECTION: FINANCE NO: FIN - REFERENCE: Date: Next Review Date: TITLE: FACADE IMPROVEMENT PROGRAM 1.0 Purpose The City of Monticello Economic Development Authority (the "EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this forgivable loan program is to support a visually and financially appealing Downtown and greater Monticello community by providing forgivable loans to improve the facades of existing Downtown commercial and retail buildings. 2.0 Policy ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Fagade Improvement Forgivable Loan (" Loan") as further defined herein. The area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52 following redevelopment, as well as those buildings along Walnut Street, between Broadway Street West and River Street. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $200,000 for the initial Loan program. This is a pilot program, and additional areas and allocations will be considered at a future date. FORGIVABLE LOAN FUND TERMS & CONDITIONS Loan Amount & Structure Individual loans may be made in an amount ranging from $5,000-$50,000. Loan forgiveness generally takes place over a three-year period with fifty percent (50%) of the award forgiven at the end of the first year, and twenty-five percent (25%) forgiven at the end of years two and three. The EDA may extend or reduce the forgiveness period based on the dollar amount of the Loan. If the benefitting building is sold within the period of the Loan, the Loan must be repaid. The Applicant must provide at least 5% of the project cost in cash. The Applicant percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the loan program to determine responsibilities and commitment for application and its components. The owner of the property must be a cosignatory to the application and Loan agreement. The property owner must carry current property insurance both at the time of application and through completion of approved Loan improvements. Property taxes on the subject site must be current for the duration of the Loan. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Loan per building. The EDA reserves the right to approve or reject applications on a case-by-case basis, taking into consideration factors considered appropriate by the EDA, in addition to established polices, criteria, and potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or denial of an application is at the sole discretion of the EDA. Concurrent Loans The concurrent use of different EDA loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Loan Uses Exterior renovation of front and corner side fagades of principal use retail or commercial buildings as further shown on Exhibit B attached hereto. An architectural rendering supplied by one of the following is required: an EDA selected architect, applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for use in determining final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering shall not be included in the Loan amount. Architectural renderings will be considered for preparation after initial letter of interest by an applicant. Fagade renovation may include, but is not limited to windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering. Interior side renovation proposals may be considered on a case-by-case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Loan documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. The cost of the building permit for the approved Loan project will be included in the final Loan amount. CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Facade Improvement Loan Program to comply with the City's building standards for the Downtown/Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the Loan application and the Loan agreement. Any costs incurred prior to execution of the Loan agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Loan disbursements shall be as provided for within the Loan agreement and shall be made directly to the Applicant/owner's contractor. The Loan agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Loan program, discuss the project, and obtain application forms. Prior to application, it is recommended that the applicant complete and submit a letter of interest to the EDA. The letter of interest should provide a summary of desired facade improvements. As part of the letter of interest review, the EDA may consider authorization of a facade rendering by the EDA's architectural consultant or will direct the applicant to proceed to formal application including preparation of rendering by their contractor(s)/architect. Once the applicant has obtained the rendering and estimates, the applicant must submit a formal application to the EDA for review including the prosect rendering and detailed estimates. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. C. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. .. .. .. Prior to application, it is recommended that the applicant complete and submit a letter of interest to the EDA. The letter of interest should provide a summary of desired facade improvements. As part of the letter of interest review, the EDA may consider authorization of a facade rendering by the EDA's architectural consultant or will direct the applicant to proceed to formal application including preparation of rendering by their contractor(s)/architect. Once the applicant has obtained the rendering and estimates, the applicant must submit a formal application to the EDA for review including the prosect rendering and detailed estimates. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. C. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. e. All other information as required in the application and/or additional information as may be requested by the EDA staff. f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. C. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF LOAN APPLICATION The EDA, at its sole discretion, may deny any application on a case-by-case basis, taking into consideration factors such as: consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 1161.993 to 1161.995. LOAN AGREEMENT If the application for a Loan is approved, the applicant/property owner will be required to enter into a Loan agreement to proceed. The Loan agreement will specify the terms and conditions of the Loan as identified herein. DISBURSEMENT OF LOAN FUNDS Upon approval of a Loan application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Loan plans. Contracts shall be consistent with the procedures and requirements herein. Loan funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Fagade Improvement Loan Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Fagade Improvement Loan Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Loan agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180 - day time period shall not be exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Loan agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: 1. Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Loan agreement. 2. Lien waivers are required for all contractors and subcontractors before payment is made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Loan project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Loan plans. 3.0 Scope This policy applies to all projects that apply for and may receive assistance under the Fagade Improvement Program. 4.0 HISTORY Approval Date: August 8, 2018 Approved by: EDA Amendment Date: November 9, 2022 Approved by: EDA Amendment Date: Approved by: EXHIBIT A Geographic Program Limits Downtown Facade Improvement Grant Program Eligibility Area Elements of the Facade Cor Upper Fri Lint Upper Window Middle Fri Trans D( Display Windc Base Par MN325\42\839164.v1 Overview of the Program The Monticello EDA has developed a Downtown Facade Im- provement Loan Program to support property owners in their efforts to reinvest in their buildings and in the historic building fabric of downtown Monticello. The purpose of the loan pro- gram is to improve the aesthetics of the Downtown and to make it a place that is comfortable and appealing to more people throughout the day, week and year. The loan program offers up to $50,000 in loan funding to individual building property owners or building tenants to make front and corner side building facade improvements in the eligi- ble area shown below. The funds are provided as forgivable loans, with the loans generally forgiven over a 5 -year period with 20% of the principal amount forgiven each year. The EDA's goal is for at least 70% of the proper- ty owners in the area to take advantage of the loan. Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development Lr i t y -qty y-- a r _ ..1 Downtown Facade Improvement Loan Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown CITY OF n lh>> Monticello Design Threads The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting. Facades with large windows and well-designed storefronts are comfortable to walk along side and intriguing to look into.They create visual interest to both drivers and walkers. Three Dimensionality/ Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewak are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was built over time. Today's buildings reflect a variety of eras and no one particular style. Improve- ments to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block 36 j. �.v'�T'�• MN325\42\839164.v1 —------------------------------------ 11F -----------------------_-_- 1 • I.0 Q4t ed C;, . General Design Considerations A renovation or facade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. However they should not appear to be of poor quality, of temporary nature, or ill-suited for the area (vinyl or aluminum sidin). - If a building has historic or architectural merit, improvements should be designed to reveal the buildings original style form and materials, whenever posisble. - Architectural services will be offered at no charge to loan fund applicants. Facade Improvement Possibilities paint and signage corner treatments intanrntod cinnnnc restored brickwork awnings murals �niclrnminn frnntc J •i, T_ si - y weed t CITY OF City Policy and eProcedure MontSECTION: FINANCE NO: FIN - REFERENCE: Date: Next Review Date: TITLE: FACADE IMPROVEMENT PROGRAM 1.0 Purpose The City of Monticello Economic Development Authority (the "EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this forgivable loan program is to support a visually and financially appealing Downtown and greater Monticello community by providing forgivable loans to improve the facades of existing Downtown commercial and retail buildings. 2.0 Policy ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Fagade Improvement Forgivable Loan (" Loan") as further defined herein. The area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52 following redevelopment. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $200,000 for the initial Loan program. This is a pilot program, and additional areas and allocations will be considered at a future date. FORGIVABLE LOAN FUND TERMS & CONDITIONS Loan Amount & Structure Individual loans may be made in an amount ranging from $5,000-$50,000. Loan forgiveness generally takes place over a three-year period with fifty percent (50%) of the award forgiven at the end of the first year, and twenty-five percent (25%) forgiven at the end of years two and three. The EDA may extend or reduce the forgiveness period based on the dollar amount of the Loan. If the benefitting building is sold within the period of the Loan, the Loan must be repaid. The Applicant must provide at least 5% of the project cost in cash. The Applicant percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the loan program to determine responsibilities and commitment for application and its components. The owner of the property must be a cosignatory to the application and Loan agreement. The property owner must carry current property insurance both at the time of application and through completion of approved Loan improvements. Property taxes on the subject site must be current for the duration of the Loan. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Loan per building. The EDA reserves the right to approve or reject applications on a case-by-case basis, taking into consideration factors considered appropriate by the EDA, in addition to established polices, criteria, and potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or denial of an application is at the sole discretion of the EDA. Concurrent Loans The concurrent use of different EDA loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Loan Uses Exterior renovation of front and corner side fagades of principal use retail or commercial buildings as further shown on Exhibit B attached hereto. An architectural rendering supplied by one of the following is required: an EDA selected architect, applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for use in determining final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering shall not be included in the Loan amount. Architectural renderings will be considered for preparation after initial letter of interest by an applicant. Fagade renovation may include, but is not limited to windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering. Interior side renovation proposals may be considered on a case-by-case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Loan documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. The cost of the building permit for the approved Loan project will be included in the final Loan amount. CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Facade Improvement Loan Program to comply with the City's building standards for the Downtown/Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES No project may commence until the EDA has approved the Loan application and the Loan agreement. Any costs incurred prior to execution of the Loan agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Loan disbursements shall be as provided for within the Loan agreement and shall be made directly to the Applicant/owner's contractor. The Loan agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Loan program, discuss the project, and obtain application forms. The applicant shall complete and submit a letter of interest to the EDA. After review, the EDA will consider authorization of the facade rendering by the EDA's architectural consultant. Once the architect and applicant have completed the rendering process, the applicant must submit a formal application to the EDA for review. Applications will be received and reviewed on a first-come, first-served basis from the time of submission of a complete application. An inspection of the building may be required. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines and capacity to implement the project. b. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. C. Evidence of applicant's ability to meet the 5% cash requirements. d. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. e. All other information as required in the application and/or additional information as may be requested by the EDA staff. f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. C. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF LOAN APPLICATION The EDA, at its sole discretion, may deny any application on a case-by-case basis, taking into consideration factors such as: consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 1161.993 to 116J.995. LOAN AGREEMENT If the application for a Loan is approved, the applicant/property owner will be required to enter into a Loan agreement to proceed. The Loan agreement will specify the terms and conditions of the Loan as identified herein. DISBURSEMENT OF LOAN FUNDS Upon approval of a Loan application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Loan plans. Contracts shall be consistent with the procedures and requirements herein. Loan funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Fagade Improvement Loan Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Fagade Improvement Loan Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Loan agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180 - day time period shall not be exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Loan agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: 1. Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Loan agreement. 2. Lien waivers are required for all contractors and subcontractors before payment is made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Loan project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Loan plans. 3.0 Scope This policy applies to all projects that apply for and may receive assistance under the Fagade Improvement Program. 4.0 HISTORY Approval Date: August 8, 2018 Approved by: EDA Amendment Date: November 9, 2022 Approved by: EDA Amendment Date: Approved by: EXHIBIT A Geographic Program Limits Downtown Facade Improvement Grant Program Eligibility Area Elements of the Facade Cor Upper Fri Lint Upper Window Middle Fri Trans D( Display Windc Base Par MN325\42\839164.v1 Overview of the Program The Monticello EDA has developed a Downtown Facade Im- provement Loan Program to support property owners in their efforts to reinvest in their buildings and in the historic building fabric of downtown Monticello. The purpose of the loan pro- gram is to improve the aesthetics of the Downtown and to make it a place that is comfortable and appealing to more people throughout the day, week and year. The loan program offers up to $50,000 in loan funding to individual building property owners or building tenants to make front and corner side building facade improvements in the eligi- ble area shown below. The funds are provided as forgivable loans, with the loans generally forgiven over a 5 -year period with 20% of the principal amount forgiven each year. The EDA's goal is for at least 70% of the proper- ty owners in the area to take advantage of the loan. Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development Lr i t y -qty y-- a r _ ..1 Downtown Facade Improvement Loan Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown CITY OF n lh>> Monticello Design Threads The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting. Facades with large windows and well-designed storefronts are comfortable to walk along side and intriguing to look into.They create visual interest to both drivers and walkers. Three Dimensionality/ Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewak are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was built over time. Today's buildings reflect a variety of eras and no one particular style. Improve- ments to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block 36 J4 MN325\42\839164.v1 General Design Considerations A renovation or facade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. However they should not appear to be of poor quality, of temporary nature, or ill-suited for the area (vinyl or aluminum sidin). - If a building has historic or architectural merit, improvements should be designed to reveal the buildings original style form and materials, whenever posisble. - Architectural services will be offered at no charge to loan fund applicants. Facade Improvement Possibilities paint and signage corner treatments intanrntod cinnnnc restored brickwork awnings murals �niclrnminn frnntc •i T_ - --- 7T. . �� :artWsc/'J si - y weed t EDA Agenda: 1/10/2024 5A. Economic Development Manager's Report Prepared by: Meeting Date: ❑x Other Business Economic Development Manager 1/10/2024 Reviewed by: Approved by: N/A N/A REFERENCE AND BACKGROUND 1. Initiative Foundation Grant in the amount of $10,000 was approved. The EDA authorized submittal of the Grant Application for environmental studies -investigations in Block 34 as pilot or concept efforts with the goal of achieving a full redevelopment plan in the future. See Exhibit A. 2. Rail Report — Rail Now and Busch + Partners, Inc. The 2024-2029 Forecast Rail Infrastructure Funding need for Minnesota is outlined in the attached report (Exhibit B). Monticello's needs were initially documented in 2019-2020 and have been adjusted for inflation in the ensuing years. The total projected funding need for 9 rail crossings is $1,188,000 (see page 3). 3. 2024 Winter EDAM Conference —The Conference is January 24-26, 2024, in Bloomington, MN. A copy of the Conference Agenda is attached as Exhibit C. Staff will provide information learned at the Conference to the EDA at a future meeting. 4. Projects Update: See attached Projects Update Exhibit D. 5. Prospect List Update: See attached Exhibit E. Vicki Leerhoff From: Initiative Foundation <administrator@grantinterface.com> Sent: Wednesday, December 20, 2023 3:29 PM To: Jim Thares Subject: Initiative Foundation Grant Agreement Assigned - Action Required Dear Jim, Congratulations! You have been awarded $10,000.00 for your Block 34 Environmental Investigations project! Please log in to the Initiative Foundation's online system to review and complete the grant agreement as part of your grant requirements. The grant agreement explains the conditions of the award as well as the reporting requirements, please read the grant agreement carefully. Follow these steps to complete the grant agreement: 1. Log in with your username Qim.thares@ci.monticello.mn.us) and password. 2. Once logged in you will be on the Applicant Dashboard. 3. Below your application, you will see that it reads Grant Agreement - Initiative Foundation. Click on the blue "Edit" link to the right of the form. You can save the form as often as you need but remember to submit by the due date (01/19/2024 11:59 PM CST). The grant payment will be disbursed once the grant agreement has been completed and submitted. We Want to Share Your Story As your grant closes out, the Initiative Foundation will ask you to share a story and photo(s) that highlight a client or organizational success. We encourage you to think early and often about the good work your grant will do and share a story and photo(s) that showcase your impact in the region. We also encourage you to secure a media release from the subjects who appear in your story and photo(s). Photos should be 50OKB or larger to ensure their use world about your impact. Working together, we can spread the word of your organization's efforts to the wider region through Initiative Foundation media content, including IQ Magazine, social media (Facebook, Linkedln, Twitter) and multiple monthly newsletters. Thank you. If you have media questions, or you have a story that needs to be told sooner rather than later, please send an email to Bob McClintick, marketing and communications director, or Allison Norgren, marketing and communications specialist. To share news of your grant with local media and on social media, please consult the Initiative Foundation's News Release and Social Media Tips document. Thank you! NOTE: Any educational, promotional, or other project -related print and/or electronic content must say the following: "This project was funded in part by the Initiative Foundation, a regional community foundation. Learn more at ifound.org." F -i Like what we do? Share it in a review! Applicant Information Jim Thares 505 Walnut Street Suite 1 Monticello, MN 55362 763-271-3254 jim.thares@ci.monticello.mn.us Organization: City of Monticello Form Name: Grant Agreement - Initiative Foundation Process Name: Innovation Fund Grant Application Project Name: Block 34 Environmental Investigations SCOPE OF NEED R2023 AILNOW! Eighth Annual Summary FORECAST: 2024-2029 Planned Local Projects Needing State Support for Rail & Bridge Upgrades, New Industrial Parks & Job Creation Ten shortline freight railroads serving more than 40 communities in 34 counties and five proposed or "in -development" rail -served industrial parks with the potential to create hundreds of new jobs for Minnesota offer their detailed cost estimates of shovel ready" projects needed and planned for years 2024-2029, all highly dependent on.significant new state funding support to proceed and succeed. �FaYJC CLAY BEC I I `I `� Major Railroads (Class I) Jurisdictional Duluth Oj5 fin:< f) SuPprior 4 lu O7 Moorhead — BNSF (1,490 Miles*) 7 County Metropolitan r - Superior CN (377 Miles*) I1 County CP (1,132 Miles*) i=1 City (>10, 000) Major City (> 50,000) �� Cloquet t RAILROAD CLASSIFICATION & UP (418 Miles*) q • Minor City (10,000 - 50,000) r ARLTo�I OWNED TRACK MILEAGE Other Railroads Class II, III, Private & Heritage (857 Miles*) National Railroad Passenger Corp/Amtrak (0 Miles*) _ ROSEAU " c r �. ------ -- LAKE OF ----� T H T: 73 G O D S OTTER TA:L 8_ MDW AITI:IN �____�_ BNSF Railway [BNSF]: 1,490 miles* \ I B E L T R A M41 PE\N- r' KGOCHICHING y INGTOiN _Grand r SAIPTT LOUIS Forks ;- RED - { { COOK f ZLAKE • Duluth Winnipeg & Pacific Railroad [DWP] _.._._.___ -,_ CLEAR - LL E o ` j WATER o I1 vv� POLR JI i LAKE • Dakota, Minnesota & Eastern Railroad [DME] Bemidji ITAaCA i 0Riv1AIi� I «' Hibbing aw I i --- - 2 �119 " Rapids N �FaYJC CLAY BEC I I `I `� CASS Duluth Oj5 fin:< f) SuPprior 4 lu O7 Moorhead r - Superior •,x ,�- �� Cloquet t RAILROAD CLASSIFICATION & q ��', r ARLTo�I OWNED TRACK MILEAGE " c I,gMR Class I (with Subsidiary) OTTER TA:L r'" AITI:IN �____�_ BNSF Railway [BNSF]: 1,490 miles* \ Fergus Falls l Canadian National Railway [CN]: 377 miles* \ RRVW Brainerd i • Cedar River Railroad [CEDR] f • Duluth Winnipeg & Pacific Railroad [DWP] ! I 5 J 4�,o M I LL E o ` • Wisconsin Central Railroad [WC] Canadian Pacific Railway [CP]: 1,132 miles* o I1 vv� �P LACS �w • Dakota, Minnesota & Eastern Railroad [DME] Iq41 14 a o • SOO Line Railroad [S00] Union Pacific Railroad [UP]: 418 miles* aw Class II Rapid City, Pierre & Eastern Railroad R 43 i --- - St. Cloud Elk J River [ : mom* i S;POPE ?�� ST£ARItiS NLR � ' ; Class III Ellis & Eastern Company [EE]: 42 miles* _ o fi - - °�� , �� s Cloquet Terminal Railroad [CTRR]: 4 miles* Minnesota Commercial Railway [MNNR]: 128 miles* Minnesota, Dakota & Western Railway [MDW]: 4 miles* SWIFT`lrc 31 n1 E1,Er,. Bug - --------- Minnesota Northern Railroad [MNN]: 120 miles* Lf CHIPPEWA Willmar 1 H j Northern Lines Railway [NLR]: 17 miles Northern Plains Railroad [NPR]: 45 miles* St. Pal Otter Tail Valley Railroad [OTVR]: 81 miles* Progressive Rail Inc. [PGR]: 22 miles* MCLEO>, . _ --- -- WR Red River Valley & western Railroad [RRVW]: 3 miles* I I'LLOW St. Croix Valle Railroad Railroad Y [SCXY]: 36 miles* ED] CINE - P R R£'NVIL= E Red Wing -. Twin Cities & Western Railroad CWR : 146 miles • Minnesota Prairie Line .; i TCWR [MPLI]: 94 miles* Marshall SIBLE'r Y- PGR �- _ Private & Heritage -- �� I Northfield E, , Lake Superior & Mississippi Railroad [LSMRR]: 6 miles* v R p' LYON I R L D W O O D N yam' RI E 00 OD�'V National Railroad Passenger Corp./Amtrak [AMTK]: 0 miles* GR Faribault North Shore Mining [NMSX]: 47 miles* 1 t -- - BROWN I LS ABASHA �— i North Shore Scenic Railroad [NSSR] 25 miles* I C O 1 �AO L —T OWatoIlna .�.—_.� Winona,-. P:, 0F RAY S J� 1: Ate` q i ter PIPE- I l' ' -, a Mankato o w I \ - _ STO..N.E1'�_ 0 p �w BLUE EAR'T'H I .'i' E� DODGEi IVINONA Qnal a R O C K Fairmont FREE BORN I !' La Crosse I NOBLESCKSOiT; F,F, PAR'BAT 77yI Austin FILLidCRE O� I. Worthington I✓a O t" E 1 I ��j +_ I M A RTI N �` I Albert Lea "Maps and Related Data" Disclaimer: i t 0 12.5 25 50 75 100 https://www.dot.state.mn.us/information/disclaimer.htmI Miles 1 _ Scale: 1:3,000,000 `Railroad classification and "owned track mileage" as reported by the Minnesota Regional Railroad Association as of 2022 PROECTS NEEDING STATE SUPPORT COUNTIES SERVED: GOODHUE, DAKOTA & HENNEPIN PROGRESSIVE RAIL ProgressiveRailway (PGR) .......................... ........ ..... ................. ............................................ .................... • Replace 4,000 ties and surface rock, Bloomington ...... ....... ......................... . .....................$ 15,005,000 ...........................$650,000 • Replace 4,000 ties on the Eagandale line.. .......... .... ...................... .......... .................. $650,000 • Repair Nine Mile Creek bridge on Dan Patch Line in Bloomington._._.... ... ................. $305,000 • Repair Highway 3 Overpass in Rosemount....................................................................................$550,000 ........................................................................... • Construct new siding on the Dan Patch Line near 98th Street, Bloomington, providing a run-around track for the PGR warehouse..........................................................$600,000 ............................................................................................................................................... • Replace 5 miles of 80 lb. rail with 115 lb. rail from Randolph (CP/UP interchange South of Northfield) toCF.....................................................................................................................................................................................................................................................................$5,500,000 • Replace 2 miles of 80 lb. rail with 115 lb. rail in Faribault................. ... ............................................ .................. ...$2,500,000 • Replace 4 miles of 90 lb. rail on Northfield to Lakeville line with 115 lb. rail,.... .............................................. $4,250,000 Contact: Andrea Dobbelmann, CEO, 612-500-3125 www.progressiveraii.com Service Area: Four in Minnesota: from Northfield to Lakeville, serving Boise Cascade, Wausau Building Materials, Menasha, several plastics users and main transload warehouse in Lakeville; Northfield to Cannon Falls with Randolph as an intermediate station and Northfield to Faribault, biggest customer CFS Grain with unit trains of grain out of Randolph, and various customers through a transload facility in Cannon Falls; Rosemount to Eagan, serving Villaume Lumber, CocaCola, Holcim Cement, and Home Depot in Rosemount; from Bloomington to Minneapolis on Dan Patch Line, serving its largest transload warehouse in Bloomington. COUNTY SERVED: WRIGHT I-94 West Metro Railroad Industrial Park.........................................................................................................................................................$4,114,000 Rail -served 72 -acre industrial park for GCC, nation's largest cement producer; Currently constructing a cement off-load facility with storage silos, warehouse, office building and on-site tracks for a railroad storage yard on 18.85 acres. • Construction of mainline and other switches, and main industrial lead ......................................... ............ ..... _.$2,662,000 • Installation of two crossing arms, CR19 and CR37.......................................... .....................____ .................. ...................$1,452,000 Contact: Wayne Elam, President, Commercial Realtv Solutions, 763-682-2400 www. commercialrealtysolutions. com COUNTY SERVED: WRIGHT City of Monticello: Railroad Crossings Upgrades .......... ................... ._.....................$1,188,000 .................................... ... • Urgent upgrading of 9 rail crossings within the city, per quote provided by BNSF, $132,000 per crossing, including controls. Contact: Tim 7hares, Economic Development Manager, 763-295-2711 www. ei. monticello. mm us COUNTIES SERVED: RAMSEY,, HENNEPIN, CARVER, McLEOD, RENVILLE, CHIPPEWA, SWIFT & BIG STONE lu(�W_ TwinCities & Western Railroad Company.....................................................................................................................................................$44,584,000 • Slide and weld joint elimination program on 90 miles of aged (60 years+) rail to accomodate heavier rail car loads and increated shipments from grain elevators and ethanol producers on the line, and to continue to provide safe and reliable service.................................................................................................................................I.. $40,000,000 • Build two additional passing sidings, each long enough to handle up to 100-car unit trains of grain or ethanol ............. $4,059,000 • Rehabilitate three-quarters of a mile of track in Savage, MN, owned and unused by Canadian Pacific Kansas City, to enable access to riverport facilities of Cargill, Consolidated Grain & Barge/Riverland Ag andCHS.........................................................................................................................................................................................................................................$525,000 Contact: Mark Weiner, President, 800-290-8297 www.tcwr.net COUNTIES SERVED: MARSHALL & PENNINGTON NorthernPlains Railroad Companies.......................................................................................................................................................................$6,325,000 • Ties, ballast and re -surfacing programs.....................................................................................................................................................$1,725,000 • Rail Replacement..............................................................................................................................................................................................................$4,600,000 Service Area: NP operates approximately 50 miles within Minnesota between the cities of Oslo and Thief River Falls; other cities served include Alvarado, Warren and Poland; industries served include agriculture (grain and fertilizer) and aggregates.NP connects with Canadian Pacific Railway at Thief River Falls, providing MN shippers access to markets throughout North America. Contact: Dan Mack, Executive Vice President, 651-335-1612 www.nprail.com CO UNT Y SERVED: DAKOTA UnionPacific Railroad................................................................................................................................................................................................................... $800,000 • Replacement of two older, narrow Union Pacific railroad bridges over state and local roads; estimated cost is $800,000. Contact: Dakota County Regional Rail Authority, 651-439-4418 www.co.dakota.mn.us CO UNT Y SERVED: SHERB URNE Cityof Big Lake.............................................................................................................................................................................................................................. $10,000,000 • Proposed 1,200 -acre rail -served industrial park, currently greenfields but with extreme potential to develop and become a rail -served site, served by BNSF Main Line; requires 2 mainline switches, $3,000,000; 20,000 feet of track, $5,000,000; internal switches and derails,$ 1,000,000; contingencies, $1 million. Contact: Community Development Director, 763-251-2979 www.bigiakemn.org COUNTIES SERVED: ANOKA, HENNEPIN, RAMSEY Minnesota Commercial Railway.................................................................................... Rail & Tie Program & WASHINGTON ............................................................................................... $3,200,000 • Build new siding to adequately serve existing and future customers in Roseville, MN...........................................................$950,000 • Update and replace lightweight and worn rail on several yard tracks, including new ties and ballast to support the railin St. Paul, MN .................................................. -.... ...................... ............................................................ $1,500,000 Update and replace lightweight and worn rail on several yard tracks, including new ties and ballast to support the rail in New Brighton, MN........................................................................................ ...............$750,000 Service Area: MNNR owns or leases 86 miles of track and connects with all Twin Cities railroads, serving a total of ten communities with a mainline extending from St. Paul to the northern suburbs of Anoka and eact in Hugo; Amtrak travels over MNNR lines to reach the St. Paul Union Depot. Serves 82 customers, including WestRock, Commercial Transload of Minnesota, Ratner Steel, SSAB, Weekes Forest Products, General Mills, ADM, and the Hugo and Roseville industrial parks. Among commodities handled are steel, lumbar, oats, wheat, paper, and salt. Contact: Wayne Hall, Co -President and COO, 651-632-90001 www.mnnr.net COUNTIES SERVED: MARTIN, NORMAN, POLK e'r ROSEAU �SA Np* i N MinnesotaNorthern Railroad (MNN).....................................................................................................................................................................$8,100,000 St. Croix Valley Railroad (SCXY) • MNN: Upgrade 23 miles of 68 lb. rail with 90 lb. rail between MP 59 to MP 82 on Warroad Subdivision ...$4,048,000 • SCXY: Upgrade 3 miles of worn out rail in the next five years......................................................................................................................... $861,200 • MNN & SCXY: Ada, Perley, Warroad and Amber Subdivisions; Crookston Yard, 5 -year replacement program, including cross ties, bridge • Ties, ballast and spikes......................................................................................................................................................................................................................... $3,990,800 Contact: Eason Bierwerth, Manager operations, 218-281-4704 www.kbninc.com COUNTIES SERVED: CARVER, SIBLEY, RENVILLE, REDWOOD & YELLOW MEDICINE edwood Area Renville, • B e D0110�M�p[N �Ul� «� eryCOUNTY a led,mod Area ►'4 D 0 . e 8 S(ce Stewardship Responsibility Responility C Ummv111 m Felledelle, fl1R MinnesotaPrairie Line..........................................................................................................................................................................................................$78,000,000 • The Minnesota Valley Regional Rail Authority has identified the following capital needs to complete the rehabilitation of the Line to Class 2 standards, at 286,000 lb. car weights. Since 2002, the line has been rehabilitated from Norwood -Young America to Fairfax, a distance of approximately 47 miles. The balance of the project from Fairfax, MP 97.7 to Hanley Falls, MP 146, 48 miles will require approximately $78 million, including bridges, turnouts, crossings, ties and ballast (a considerable number of new ties and ballast have already been installed to make this portion of the line passable) and upgrading all of the 100+ year old rail to 1151b. continuous welded rail. Service Area: MNVRRA (Minnesota Prairie Line) serves the five -county region in South Central Minnesota: Carver, Sibley, Renville, Redwood and Yellow Medicine. Local, state and federal investment in rehabilitation have resulted in a major ethanol plant, upgrades to two elevators to load unit trains, another to load specialty organic grains, inbound salt and ag chemicals and construction of a regional fertilizer facility. Additional investment will result in at least two more elevator upgrades, development of a new Agronomy Center with a new rail siding to receive fertilizer by rail, and probable expansion of international grain market outlets through reconnection at the west end of the line. To date, each town that has had rail rehabilitation completed has had their historic declines in population, employment and tax base stopped and in most cases have experienced a reversal in fortunes. Contact: McKenzie Fischer, Redwood Area Development Corporation, 507-637-4004 programs@radc.org COUNTIES SERVED: NOBLES & ROCK wr Ellis & Eastern Railroad ...... ....................................... .......................$28,433,751 Tie Replacement Program • Five -year replacement program....................................................................................................................................................................$3,361,000 Bridge Program • 17 bridges: repairs, replacements with culvert and/or new construction .............................................................$3,643,000 Rail Program • Upgrade rail to 115 lb., tie replacement, ballast, etc.; surfacing, engineering, environmental, etc.. ................................................... ...................$19,329,751 ............................................................................................................................. Economic Development • Rail siding repairs and switches; construction of new sidings and switches • Cold storage warehouse adjacent to Premium MN Pork processing plant • Luverne, MN, rail spur...................................................................................................................$400,000 .............................................................................. . • Rail sidings for economic development in Luverne, MN for rail industrial manufacturer/warehouse project.,... .... ............................... ............................................$2,500,000 .................................................................................................................................................. Service Area: Nobles and Rock County communities of Worthington, Rushmore, Adrian, Magnolia, Luverne and Beaver Creek Contact: Dan Kippley, Economic & Business Development, 605-553-3383 www.ellisandeastern.com COUNTIES SERVED: ST. LOUIS & LAKE IftSC &RA =W Duluth & North Shore Scenic Railroad................................................_.........._................ .$760,000 ............................................................... . North Shore Scenic Railroad • Rail siding for private car Bed & Breakfast in support of tourism and economic development in Knife River, MN, and historic preservation in Lake County (part of Knife River Heritage and Cultural Center); community has raised $200,000 for part of the project, as a match. Property is owned by the Regional Rail Authority; Siding in Duluth, for the North Shore Scenic Railroad and Lake Superior Railroad Museum's passenger car storage building that will improve tourism and spur economic development. Contact: Ken Buehler, General Manager, 218-733-7590 www.duluthtrains.com COUNTY SERVED: CARVER Norwood -Young America Industrial Park......................................................................................................................................................... $5,200,000 • Proposed rail -served transload facility and industrial park; site preparation and development; construction of spur, switch and onsite storage facilities Contact: The Busch Group, Development Advisors, 612-716-5664 www.thebuschgroup.com FUNDING REQUIRED IN 2024-2029 TO RENEW AND EXPAND MINNESOTA'S SHORT LINE FREIGHT RAIL SYSTEM GRAND TOTAL:'$205.,709,751 *Does not include other projects over the same 5 -year period not fully identified as yet or in early stages of study or planning with costs still to be determined, nor does it include expected inflation -related cost increases for labor and materials required for projects listed.* Why Is State Funding Needed for These Projects? Over the years, Minnesota has provided only limited state support for rail infrastructure and rail -related economic development needs of Class II or III short line rail carriers, while neighboring states Wisconsin, Iowa and South Dakota have each invested tens of millions in keeping their networks safe, reliable and economically viable. This continuing lack of investment in freight rail has made our state far less competitive in the Midwest marketplace for our agricultural, industrial and commercial products, displacing it as the key logistical hub it once was, with long term negative consequences for retaining existing employers and attracting new or relocating businesses and industries. Legislation is needed to address these already -identified urgent needs around the state - most of them "shovel -ready" projects requiring only substantial capital to go forward. The projects cited as awaiting financing include those proposed by ten of the state's short line freight rail companies, and thirty-four counties, five of which have major new industrial parks either in development or planned, potentially housing dozens of businesses and thousands of new employees. Each of these planned projects urgently requires freight rail service for it to be developed and to succeed. Currently, proposed legislation would provide state funding assistance for some of these projects, as well as instituting new, more accessible loan and grant processes that would be both "business -friendly" and speedy. The latter is important because new industrial development—and in some cases, rail service improvement and repair projects, especially those with safety implications—need to be processed and approved quickly, given the high degree of competition for new business among neighboring states. Minnesota's short line rail industry is again this year seeking a modest amount of state funding compared with the high level of state spending on highways in support of highly polluting truck traffic, a direct—and more expensive—competitor to rail shipping. Over the years, Minnesota has sold billions in bonds to fund repairs and improvements to trunk highways for truck traffic—in sharp contrast to the relatively small amount of funding needed over the next five years to rehabilitate and expand the state's efficient and conservation - friendly freight rail system. Unlike Wisconsin, Iowa and other states, Minnesota has no ongoing grants program for assisting short lines and their industrial or agricultural customers. MNDoT's local rail services assistance facility, the MRSI program, is primarily a loan program, requiring liens to be placed on properties used as collateral, with repayment within 10 years. Because most short lines operate on trackage owned by larger Class I carriers under leases which prohibit liens on their properties—and because in many cases loans are simply not viable due to the slim operating margins of the railroads needing them—this program is inadequate to address the scale of the need. What is needed is a major state commitment to addressing the rapidly growing infrastructure repair, improvement and new construction cost burdens confronting short line owners. Minnesota ranks fourth in the nation for tons of freight exported by rail. The state's rail system (eighth largest in the nation) transports 228 million tons of freight every year. - Minnesota Regional Railroads Association Greater State Investment in Improving and Expanding Freight Rail Infrastructure is .Critical to the Growth of Local Communities and Future Job Creation in Minnesota The Impact of Increased Funding for the Minnesota Rail Service Improvement (MRSI) Program? CONSTRUCTION of many new rail leads ands urs to serve growing shippers, and new, rebuilt or P g g pp expanded sidings for rail customers and railroads REPLACEMENT of hundreds of miles of old, obsolete and light capacity rail with heavier rail capable of competitively carrying current loads --up to 280,000 lb. capacity rail cars EXPANSION AND RENEWAL of dozens of keyrain elevators, critical to Minnesota's ability to compete g P in the global ag and food marketplace '4/NEW AND REBUILT railroad bridges and crossings in cities and townships across the state of g g p Minnesota, saving millions in potential repair and replacement costs TRACKAGE for newly developed or planned rail -served industrialarks for new, expanding p p g or relocating businesses NEW GRAIN gathering and storage terminals, strategically located, enabling more farmers to ship via lower cost 110 -car unit trains VINEW BUSINESS FORMATIONS employing hundreds of workers, with growingpurchases of services and goods from local suppliers EXPANSION OF LOCAL TAX BASES, bringing new sources of local municipal revenues and greater financial support for schools and local organizations and charities RAILNOW! © 2023 BUSCH+ PARTNERS INC (0) 612.872.7700 (C) 612.716.5664 www.raflnow.us RAILSCOPE-11-1-23 EDAM 2024 Winter Conference Event Schedule Thu, Jan 25, 2024 7:15 AM 8:00 AM 8:30 AM Registration O 7:15 AM - 4:00 PM, Jan 25 Continental Breakfast 0 7:15 AM - 8:15 AM, Jan 25 Welcome & Annual Meeting O 8:00 AM - 8:30 AM, Jan 25 Where the Grinder Meets the Gear: Introducing Lakeville Students to STEM Careers 0 8:30 AM - 9:30 AM, Jan 25 1.0 AICP Credit Lakeville Works is on a mission to create awareness for students, parents and educators of in - demand STEM (Science, Technology, Engineering, Math) careers in the community. Formed in 2018 by the Lakeville Chamber of Commerce, Lakeville Works was created in response to the increasing workforce challenges seen in Lakeville's robust industrial park. The program is a partnership between the Chamber, City of Lakeville, Lakeville Area Schools and local businesses (as well as Dakota County and Dakota County Technical College) - united in the goal of introducing a variety of career pathways and growing Lakeville's next workforce generation in manufacturing, construction, transportation and technology careers. Join us to learn more about the program and how one community is addressing building a future workforce. T* Speakers 0 Kati Bachmayer Economic Development Manager City of Lakeville Krista Jech President Lakeville Chamber of Commerce Cindy Nolan Teacher Lakeville North High School 0 Paul Ginter President BTD Why is Tax Increment Finance Good for Taxpayers? Telling the TIF Story O 8:30 AM - 9:30 AM, Jan 25 Applicable to All Breakout Session AICP Credit 9:30 AM 9:45 AM 1.0 AICP Credit This is Part 1 of a two-part interactive session, with Part 2 being presented at the 2024 EDAM Summer Conference. Most economic development professionals understand that Tax Increment Financing (TIF) is a beneficial tool for economic development. As a result, the city should be better off economically if TIF is used properly. If this is true, why do we have such a difficult time convincing taxpayers and some of our elected officials? Maybe we are not telling the right story... Municipal officials and the public often struggle to explain and understand the complexity of Tax Increment Financing. While economic development professionals understand the holistic benefits, many people still view TIF as a mere handout to real estate developers. Satisfaction of Minnesota's TIF Statute and requirements of the Minnesota State Auditor's Office (OSA) document the facts and figures but do not always tell the comprehensive story behind the use of TIF. In this session, two seasoned redevelopment professionals will give examples of how they tell the story behind the facts and figures and ensure that TIF is used to achieve community benefits that deliver long-term value to the taxpayers. We will share good examples and bad examples of how to explain TIF to non -economic development professionals in an era where mis-information is prevalent. T:3 Speakers Bill Neuendorf Economic Development Manager City of Edina Mike Fischer Vice President LHB Break with Exhibitors O 9:30 AM - 9:45 AM, Jan 25 Creative Financing Solutions for Development O 9:45 AM - 10:45 AM, Jan 25 1.0 AICP Credit Creativity thrives under mandates, restrictions, and constraints. Without these impediments, practitioners are encouraged to follow the path of least resistance. Join Ehlers' advisors as they discuss thinking outside of the box, leveraging financial resources — new and existing — and implementing strategies to drive your community's economic development and redevelopment initiatives forward. T* Speakers Jason Aarsvold Senior Municipal Advisor Ehlers Keith Dahl Municipal Advisor Ehlers Transportation Tech & Accessibility in Rural Communities 0 9:45 AM - 10:45 AM, Jan 25 1.0 AICP Credit This session will highlight transportation and accessibility challenges in rural areas and how new technologies have been used to support these challenges. Through a case study of the Grand Rapids, MN, goMARTI autonomous shuttle pilot, the presenters will highlight one community solution. ?I Speakers Tammy Meehan -Russell Founder The PLUM Catalyst Whitney Ridlon Community Development Representative Iron Range Resources & Rehabilitation Board 10:45 AM Break with Exhibitors O 10:45 AM - 11:00 AM, Jan 25 11:00 AM 1:00 PM 2:00 PM 2:15 PM Excellence in Economic Development Awards Ceremony & Lunch 0 11:00 AM - 1:00 PM, Jan 25 • , • Keynote * Making Your Own Way 0 1:00 PM - 2:00 PM, Jan 25 Keynote Damaris Hollingsworth will walk us through her journey from her modest upbringing in the inner city of Sao Paulo, Brazil, to a successful entrepreneurial endeavor in the USA. She will highlight the early signs, the hard lessons, the overwhelming number of no's, and the resilience and grit that have been necessary to overcome inner and outer barriers and continue to write this inspiring story. TJ Speaker Damaris Hollingsworth Owner I Principal Architect N Design By Melo Break with Exhibitors 0 2:00 PM - 2:15 PM, Jan 25 Housing: The New Economic Development Frontier 0 2:15 PM - 3:15 PM, Jan 25 1.0 AICP Credit For most cities, providing a reliable and affordable supply of housing of all types has become the new economic development challenge for the next decade. This panel of a housing developer, builder, and two city representatives will discuss some of the local circumstances causing a renewed demand for housing, and different means and methods for impacting the supply for new housing. 3:15 PM 3:30 PM T�l Speaker Steve Schwanke Partner Inland Development Partners The Driving Force of Childcare in the Mille Lacs Tribal Economy 0 2:15 PM - 3:15 PM, Jan 25 Breakout Session11 Greater Minnesota Focus IAICP Credit 1.0 AICP Credit Mille Lacs Corporate Ventures (MLCV) has recently launched the Onamia Childcare Center in the Mille Lacs Tribal Economy. This center is a rehabilitated 5,700 SF facility that now offers 63 new slots in this town of 784. Through a combination of research, creativity, and community engagement amongst public and private stakeholders, this project came to fruition. This session will share the process from idea to execution. 14 Speaker Dustin Goslin Vice President of Business & Economic Development Mille Lacs Corporate Ventures Break with Exhibitors 03:15 PM -3:30 PM, Jan 25 Film & TV Production: Economic Benefits for Minnesota 0 3:30 PM - 4:30 PM, Jan 25 1.0 AICP Credit The film and TV industry has long been recognized by government as a driver of economic growth and jobs. While Minnesota was once a favorite location for feature film production, that waned with the implementation of production incentives in the 1990s. The state of Minnesota is now recognizing the potential of this industry and investing accordingly. Film and television production generates hundreds of billions of dollars and tens of thousands of high paying jobs in states throughout the U.S. When film and TV production comes to your town, every $1 spent generates $6.90 in economic activity rippling through the community (Bureau of Business and Economic Research, University of MN Duluth, 2022). Content production has a positive impact on local communities by dropping millions of dollars in short periods of time, from urban to rural locations, expanding employment opportunities and revenue streams for existing local businesses. With the recent passage of an expanded film production tax credit, Minnesota is poised to become a destination for feature and series production again. How will your community benefit from production, and how can you prepare? Learn how it all works from a state, regional, and local perspective and how you can make your community film -friendly. T* Speakers Melodie Bahan Executive Director Minnesota Film & TV 0 Shari Marshik Executive Director Upper Midwest Film Office Future Development Through the Window of Forecast Modeling 0 3:30 PM - 4:30 PM, Jan 25 4:30 PM Fri, Jan 26, 2024 7:30 AM 8:30 AM 1.0 AICP Credit Economic developers and planners are aware of emerging demographic trends. But local response to trends requires greater detail. To answer what growth will happen, when and where, Metropolitan Council uses real estate market models for small area forecasting. The resulting local forecasts inform both local planning and the deployment of regional systems and services. These local forecasts also tell a story of how demographics and development patterns will change. Join us for a look into the data and what it might mean for your community. TJ Speaker Todd Graham Principal Forecaster Metropolitan Council Networking Reception 0 4:30 PM - 6:30 PM, Jan 25 Registration 0 7:30 AM - 12:00 PM, Jan 26 Continental Breakfast U 7:30 AM - 8:30 AM, Jan 26 L— Minnesota Design Team: Participatory Design for Small Cities 0 8:30 AM - 9:30 AM, Jan 26 Breakout Session11 Greater Minnesota Focus11 AICP Credit 1.0 AICP Credit Do you have many dreams for your city but are not sure how to unify them into a cohesive vision? Could you benefit from a having a team of planners, architects, and landscape architects spend a weekend brainstorming with you about the future of your city? Then a visit by the Minnesota Design Team might be a good fit! Minnesota Design Team (MDT) is an American Institute of Architects (AIA) Minnesota program comprised of architects, landscape architects, urban designers, planners, and other experts in design and community development. Founded in 1983, its multidisciplinary volunteers teams have worked with more than 130 rural communities helping them to develop shared visions for improving their physical and environmental designs. Learn more about these participatory, interactive opportunities to build citizen engagement from the perspective of design team volunteers and the cities who have benefited. This session will cover the history of the MDT program, what a Design Team visit entails for volunteers and communities, and highlight some of the exciting projects that have been completed as a result of a design team visit. T1 Speakers Amber Sausen Principal Alliiance isBeth Evanson Makhoul Senior Associate Alliiance Jennifer Nash City Administrator City of Hanover Supporting Innovation: A Toolkit for Entrepreneurial Pitch Events Q 8:30 AM - 9:30 AM, Jan 26 Applicable to All Breakout Session AICP Credit 1.0 AICP Credit Want to spark innovation in economic development and tap into the entrepreneurial ecosystem? Find out how to create and run a pitch event that will incentivize public and private partners to connect with new businesses and products. From creating the structure to recruitment, judging and promotion, learn how to run a successful pitch event in your city! Tl Speakers Patty Day Director of Engagement & Equity The PLUM Catalyst Tammy Meehan -Russell Founder The PLUM Catalyst l 9:30 AM Break with Exhibitors O 9:30 AM - 9:45 AM, Jan 26 9:45 AM Employee Ownership: A Pathway to Economic Resilience in Minnesota Communities 0 9:45 AM - 10:45 AM, Jan 26 1.0 AICP Credit Over 50,00 businesses in Minnesota are owned by people at or near retirement age. These firms employ over 600,000 workers and generate $124 billion in revenue. Four out of five businesses that go on the market never find an owner. Employee Ownership can be an effective barrier between small communities and this silver tsunami. This session will give a brief overview of what employee ownership is, how it works, and how it can help maintain strong communities. T* Speakers Kennedy isKirsten Executi ve Director Minnesota Center for Employee Ownership Darren Mozenter Northern Regional Program Director Minnesota Center for Employee Ownership Char Vrieze Cooperative Development Specialist Cooperative Development Services Engendering Workforce in a Regional Center Through Housing Development 0 9:45 AM - 10:45 AM, Jan 26 10:45 AM 11:00 AM 1.0 AICP Credit Duluth's population peaked in the 1930s -40s at just over 100,000 people, slowly declining to a stagnant 86,000 in the 90s, leaving us with a deteriorating built environment and a City of the First Class designation. By focusing on housing construction, this regional center is bracing for a potential climate migration, acclimating to a global spotlight, and laying the foundations for its economic future by building strategic private and non-profit partnerships. Duluth has added almost 1,200 net housing units since 2019 and could support up to 2,400 new housing units over the next 5 years in the Greater Downtown Area alone. This session will explore Duluth's current landscape and housing strategy going forward. V:3 Speaker Chad Ronchetti Director of Planning & Economic Development City of Duluth New Year, New Programs! Resources and Funding Opportunities for Businesses O 11:00 AM - 12:00 PM, Jan 26 1.0 AICP Credit A panel from DEED'S Offices of Business Finance and Small Business Development & Innovation will outline programs passed during Minnesota's last legislative session. Information will include the status of program rollout, the type of businesses eligible for the program, and who is administering the program if not DEED. Highlighted programs include the PROMISE Act and the Minnesota Forward Fund among others. i4 Moderator 0 Drew Lindorfer SSBCI Team Lead Minnesota Department of Employment & Economic Development (DEED) 'iJ Speakers Jason Burak Small Business Unit Manager Minnesota Department of Employment & Economic Development (DEED) Chinwe Ngwu Manager, Business Expansion Unit Minnesota Department of Employment & Economic Development (DEED) Brandon Toner Director, Community Partnerships Minnesota Department of Employment & Economic Development (DEED) Stephen Wolff Manager, Tax Benefits Unit Minnesota Department of Employment & Economic Development (DEED) 12:00 PM 2024 DEED & Legislative Session Overview O 12:00 PM - 12:30 PM, Jan 26 �• , Join us for a look ahead to what we can expect at DEED and the Legislature in 2024. 12:30 PM T:3 Speaker Kevin McKinnon Deputy Commissioner, Ecomnic Development Minnesota Department of Employment & Economic Development (DEED) Adjournment & Prize Drawing 0 12:30 PM - 12:45 PM, Jan 26 IEDC Agenda: 01/02/24 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 the first 10 days of February 2024. The final build of 11,000 square feet of office space for a financial services -products (insurance and investments) firm with 102 FTE employees is expected to begin in February 2024. Discussions are continuing with prospective restaurants and other commercial tenants. A total of 45 new FTE jobs will be required to be created by the new businesses that occupy the building. 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. This work is expected to occur for the remainder of 2023 and into 2024. Headwaters Apartments: Headwaters Development has submitted a PUD amendment and intends to eliminate its planned 102 -unit apartment building (ages 55 +) and replace it with 22 new twin homes at this site. This change is significant and will require changes to the TIF District as well. EDA and PC and City Council approvals will be needed for the proposed changes, which may take several months in early 2024. Monticello Lakes — Savanna Vista Apartments: Construction of a two building, 200 -unit apartment development at a parcel on the west side of Edmunson Ave NE in the Pointes At Cedar (PAC) Master Plan Planned Community District is in rapidly progressing. This is a market rate housing development. The PAC water amenity features and proximity to restaurants and shopping are expected to be a strong leasing draw for this development. Wiha Tools Warehouse Facility Development: Construction of Wiha Tools' new 74,000 square foot assembly and warehouse facility IEDC Agenda: 01/02/24 development also continues. A delay in sourcing critical power supply and building materials is pushing the completion date out to March 2024. 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 +/-. 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 01/04/2024 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 01/04/2024 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 01/04/2024 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 =01 YTD= 28