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IEDC Agenda - 09/26/2023AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, September 26, 2023 7:00 a.m. at Monticello Community Center Members: Chairperson Sarah Kortmansky, Vice Chairperson Luke Dahlheimer, Tracy Hinz, Liz Calpas, Eric Olson, Joni Pawelk, Darek Vetsch, Kevin Steffensmeier, Wayne Elam, Andrew Tapper, Randy Skarphol, Rob Stark, Tony Velishek, Jared Merchant, Corry Ritter, Liz Kokesh Liaisons: Rachel Leonard, Angela Schumann, Jim Thares, Marcy Anderson, Jolene Foss, Dave Tombers, Tim Zipoy 1. General Business A. Call to Order B. September 5, 2023, meeting minutes C. Consideration of Adding Items to the Agenda 2. Regular Agenda A. Table Topic — School District Facilities and Programs Update — Eric Olson, Superintendent 3. Liaison Updates A. Economic Development • Business Roundtable Showcase Event — Event Feedback -Critique • Manufacturers Appreciation Breakfast Event Update — October 12, 2023 • Project and Prospects Update • Draft Agenda — October 3, 3023 Planning Commission Mtg. B. City Council Update C. Wright County Economic Development Partnership (WCEDP) D. Chamber of Commerce 4. Other Business A. Next Meeting Reminder — Date: Monday, November 6, 2023 5. Adjournment (8:00 a.m.) INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) DRAFT MINUTES Tuesday, September 5, 2023 7:00 a.m. at Monticello Community Center Members Present: Chairperson Sarah Kortmansky, Vice Chairperson Luke Dahlheimer, Liz Calpas, Tracy Hinz, Liz Kokesh, Eric Olson, Corey Ritter, Randy Skarphol, Rob Stark, Andrew Tapper, Tony Velishek Members Absent: Wayne Elam, Jared Merchant, Joni Pawelk, Kevin Steffensmeier, Darek Vetsch Liaisons Present: Jim Thares, Marcy Anderson, Jolene Foss 1. Call to Order Chairperson Sarah Kortmansky called the regular meeting of the Monticello IEDC to order at 7:00 a.m. Approve Minutes: ANDREW TAPPER MOVED TO APPROVE THE AUGUST 1, 2023, REGULAR MEETING MINUTES. RANDY SKARPHOL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration of Adding Items to the Agenda: None 2. Regular Agenda A. Table Topic — 2023 Hotel & Hospitality Study Update Preview Jim Thares, Economic Development Manager, presented the Hotel Market Study prepared by the Hospitality Consulting Group, highlighting points from the report. The scope of the study is to evaluate the demographic and economic profile information and analyze the hotel room demand in Monticello and the primary market area. Based on the current local hotel supply and demand for Monticello, the Study indicates that a national upper mid -scale hotel affiliated with one of several national brands would be viable in Monticello. A new hotel is also recommended to have amenities like an indoor pool, meeting room(s) of 800-1,200 square feet, an fitness -exercise room, and facilities to provide a complimentary breakfast. Other recommended amenities would include a business center and a rewards program. Hospitality Consulting Group, Inc. reviewed 4 possible new hotel development locations in Monticello and rated them. Criteria included visibility, proximal location to restaurants and shopping, and easy accessibility to industrial areas for business customer use. The Study finds that the best hotel locations in Monticello are sites 1 and 4 among the four identified and named: 1. The Points at Cedar residential/commercial development 2. Eastern exit on 1-94, bounded by 1-94 & Chelsea 3. East exit bordered by the interstate and Broadway 4. North side of 1-94 and Hwy 25 bordered by 7th St. IEDC members made comments about the Study. Marcy Anderson, Chamber of Commerce Director, stated the Chamber's events have outgrown the Monticello Community Center Mississippi Room (the largest room) and as a result some events are now planned to be held in the MCC gymnasium. Due to this she believes Monticello could support a larger event center. Mr. Thares noted that since the spring of 2023, there have been 5 hotels development groups that have reached out to City staff to learn about the demand and interest in a new hotel. The report in its entirety is found on the City website. 3. Reports a. Economic Development L IEDC Event Updates 1. Business Round Table — September 14 from 3-5 p.m. at Nordic Brewing Jim Thares provided an update of the sub -committees' planning committee and is asking for assistance in getting the word out and requesting members to RSVP. 2. Manufacturer's Appreciation Breakfast An internal committee has met. A caterer and florist are reserved. A "Save the Date" postcard will be sent early the following week. ii. Prospects List Presented by Jim Thares, Economic Development Director • Project Lodge RT — Hospitality developer is searching for a location to pursue a new hotel and has had an initial meeting with City staff. • Project V — Manufacturing firm is seeking to build a new 150,000 square foot facility. iii. Planning Commission 1. Mr. Thares reviewed the Planning Commission 08/01/2023 agenda highlighting the Public Hearing considering a development stage PUD for a 138 -unit multifamily residential building. b. City Council Hayden Stensgard, Community and Economic Development Coordinator, presented a report prepared by Rachel Leonard, City Administrator, highlighting what the Council is working on including but not limited to the 2024 budget and associated preliminary levy, downtown construction, approved design standard amendments for the 2nd Addition of Haven Ridge, a new single-family residential neighborhood, publishing an RFP to select a Construction Manager for the new Public Works facility, enacted an interim ordinance temporarily prohibiting the operation of cannabis businesses within the city limits, and awarded the Bertram Chain of Lakes Regional Athletic Park Phase 11 Improvements. c. Wrieht Countv Economic Development Partnership (WCEDP Jolene Foss, Wright County Economic Development Partnership Executive Director, highlighted upcoming events: • WCEDP Golf Open — September 12t", 10:00 a.m. Albion Ridge • Wright County has been approached about a potential large development. • CEO business mentoring and education program application numbers are up, more than available slots. • Bridgewater College and Cargill are collaborating with and supporting the Partnership's Workforce Pathways efforts -activities. d. Chamber of Commerce Marcy Anderson, Chamber of Commerce Director gave an update for the Chamber. The membership and attendance to events is back to pre -pandemic numbers. Due to construction cancelation of the Downtown Halloween event is a possibility. A meeting is scheduled for 9/5/2023 with City staff to discuss best strategy and course of action. The very popular Puzzlepalooza is coming back and is scheduled for September 30th 4. Next Meeting Reminder — Date: September 26, 2023 5. Adjournment (8:03 a.m.) TONY VELISHEK MOVED TO ADJOURN. LUKE DAHLHEIMER SECONDED THE MOTION. MEETING ADJOURNED. Industrial Economic Development Agenda: 09/26/2023 2A. Table Topic — Monticello Public Schools Facility and Programing Update Prepared by: Meeting Date: ® Regular Agenda Item Administrative Assistant 09/26/2023 Reviewed by: Approved by: N/A Economic Development Director REFERENCE AND BACKGROUND Presentation by Eric Olson, Monticello Public Schools Superintendent. IEDC Agenda 09/26/23 3A. Economic Development Updates Prepared by: Meeting Date: ® Regular Agenda Item Administrative Assistant 9/26/2023 Reviewed by: Approved by: N/A Economic Development Director REFERENCE AND BACKGROUND Information overview by Jim Thares, Economic Development Manager. • ■ p kt ii s �F r t Thank you for all your hard work! The City of Monticello EDA and IEDC are happy to announce the 2023 Manufacturers Recognition Breakfast on Thursday, Oct. 12 from 7-8:30 a.m. in the Mississippi Room at the Monticello Community Center. We're excited to celebrate MN manufacturers and recognize the hard work and positive community impact of Monticello's manufacturing and industrial businesses! KEYNOTE SPEAKER: Dawn Loberg, Business Development Consultant, Enterprise Minnesota SPONSORED BY: Monticello Economic Development Authority, Xcel Energy, WSB, Sherburne State Bank, and Commercial Realty Solutions Please RSVP to Vicki Leerhoff by Oct. 6, 2023 vicki.leerhoff@ci.monticello.mn.us 1 763.271.3219 City Hall, 505 Walnut St. #1, Monticello, MN 55362 ig IEDC Agenda: 09/26/23 3A. Proiect Update Block 52 Mixed Use Commercial -Residential Redevelopment: Progress continues on the construction of the 5 -story mixed use commercial -residential development. The next stage of interior finish work is occurring. The parking lot continues to be a staging and materials storage, though some excavation to final grad has occurred as well. Paving will likely occur in early November. Overall, the pace of the project is moving along with a potential for CO issuance on or about January 31, 2024. The developer has indicated that discussions continue to occur with prospective commercial tenants, including various restaurant groups. commercial space (facing the park) with an outside patio. A total of 45 new FTE jobs will be required to be created by the new businesses that occupy the building. Wiha Tools Warehouse Facility Development: Construction of Wiha Tools' new 74,000 square foot assembly and warehouse facility development also continues. The projected completion date is late December 2023. 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 +/-. Deephaven Third - West Metro Ophthalmology: Construction of a 10,000 square foot commercial building at the southeast corner of Cedar and Chelsea Road is now about 75 percent finished. West Metro Ophthalmology is the primary tenant and is relocating from 504 Pine Street (adjacent to Papa Murphy's Pizza). North Risk Partners (Insurance) will be moving into the second available space in the building. Headwaters Villa Twinhomes: The 60 -unit twinhome housing development project for ages 55 + is well underway at the former 16.70 -acre EDA parcel along 7t" Street West. Work on footings, foundations and unit placement is occurring at this time. This work is expected to occur for the remainder of 2023 IEDC Agenda: 09/26/23 and into 2024. Headwaters Apartments: Construction of the 102 -unit apartment building for ages 55 + is expected to begin in the fall of 2023 and progress through the entirety of 2024. The building has ground level covered parking with four floors of rental units above the parking structure. Attached are illustrations from the plan set approval packet showing the building. Monticello Lakes — 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 the early stage though progressing rapidly. 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. Other Development Activity: Additional Multi -Family Residential Developments are being proposed in concept format for sites in the City. The low MF vacancy rate and the current high interest rates are impacting availability and affordability dynamics of the single-family home market, thereby increasing the demand for multi -family units. Additional commercial development is being proposed at various sites in Monticello. Additional industrial development proposals are also being considered for sites in Monticello. This is very preliminary and may take up to 12 to 15 months before final decisions are made for these proposals. 2 Date of Contact /22/201 /29/20 128/201 /9/201' t16/203 (20/202 30-22 2/16/2021 3/19/2021 2/28/2022 6/16/2021 6/30/2021 7/29/2021 10/28/2021 2/7/2022 Company Name Business Category Project Description IL Karlsburger Foods Food Products Mfg. Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. Project Nutt Co -Working Space Existing Building Project FSJP Light Mfg -Res. Lab New Construction Project Jaguar Office New Construction Project Panda v3 Service -Child Care New Construction Project TDBBST Industrial New Construction Project Cold Industrial -Warehouse -Di New Construction stri Project Orion Warehouse-Distributi New Construction on Project Emma II Light Ind -Assembly New Construction Project UBAA Child Care Services New Construction or Exist Project Ecosphere Industrial Tech Mfg. New Construction Project BA710 Lt Assem-Distribute IProject Stallion Technology Service Project Shepherd Lt Assembly Distribution III 09/22/2023 0 9 $1,850,000 Concept Stage Building -Facility i Retained lobs New lobs Total Investment Project Status 80,000 sq. ft. 0 21 $12,000,000 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold Active Search 20,000 sq. ff. 20 4 $1,350,000 12,000 sq. ft. 5,000 sq. ft. 10 $1,200,000 Concept Stage ? ? ? ? Concept Stage 20,000 sq. ft. 0 20+/- $1,400,000 Active Search 22,000 sq. ft. 22 4 $2,700,000 Active Search 10,500 sq. ft. 0 21 $4,100,000 Active Search 10,000 to 15,000 sq. 0 9 $1,850,000 Concept Stage ft. 80,000 sq. ft. 0 21 $12,000,000 Concept Stage 832,500 sq. ft. 0 500 $125,000,000 Active Search 20,000 sq. ff. 0 4 $1,350,000 Active Search 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search New Construction 6,500 to 7,000 sq. ft 0 10 New Construction 42,000 sq. ft. 40 New Construction 75,000 sq. ft. 75 $650,000 Active Search $3,600,000 Active Search $10,500,000 Active Search PROSPECT LIST 09/22/2023 Date of Contact Company Name Business Category Project Description Building-Facility Retained lobs New lobs Total Investment Project Status 4/28/2022 Project Cougar Precision Machining-Mfg. New Construction 35,000 to 45,000 sq. ft. 38 $4,700,000 Active Search 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft. 0 500 $90,000,000 Active Search 10/28/2022 Project IAG Mfg. New Construction 300,000 sq. ft.? 0 50? $70 to $80,000,000 Active Search 11/9/2022 Project Tea Mfg New Construction 25,000 sq. ft. 55 20 $5,800,000 Active Search 12/13/2022 Project Love Mfg New Construction 250,000 130 $24,000,000 Active Search 4/20/2023 Project Lodge DH1 Lodging-Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 4/20/2023 Project Lodge RS2 Lodging Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 4/26/2023 Project Lodge DC3 Lodging Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 5/30/2023 Project Flower-M &M Commercial Concept Expansion ? ? ? ? Concept 6/9/2023 Project Pez 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 N/A ? $30,000,000 to $34,000,000 Active Search PROSPECT LIST 09/22/2023 Date of Contact Company Name Business Category Project Description Building -Facility Retained lobs New lobs Total Investment Project Status 9/19/2023 Project Panda #4 Childcare Facility New Construction ? N/A ? $2,000,000 +/- Active Search SZ Contacts: M =01 YTD= 23 AGENDA REGULAR MEETING – PLANNING COMMISSION Tuesday, October 3, 2023 – 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Chair Paul Konsor, Vice Chair Andrew Tapper, Teri Lehner, Eric Hagen, Melissa Robeck Council Liaison: Councilmember Charlotte Gabler Staff: Angela Schumann, Steve Grittman, Ron Hackenmueller, Hayden Stensgard 1. General Business A. Call to Order B. Roll Call C. Consideration of Additional Agenda Items D. Approval of Agenda E. Approval of Meeting Minutes • Regular Meeting Minutes—September 5, 2023 F. Citizen Comment 2. Public Hearings A. Consideration of a Request for a Conditional Use Permit for Accessory Structures Exceeding 1,200 Square Feet in the R-2, Single & Two -Family Residential District. Applicant: Linn D. Jenson B. Consideration of a Request for Conditional Use Permit for Accessory Structures Exceeding 1,200 Square Feet in the R-1, Single -Family Residential District. Applicant: Chip Bauer Construction, Inc. C. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, including Section 153.067 – Off -Street Parking, related to Parking Area Surfacing Materials; Section 153.068 – Off -Street Loading Spaces, related to Surfacing Materials; Section 153.070– Building Materials, related to 1-2, Heavy Industrial District Building Materials and Finishing Standards; Section 153.092 – Accessory Use Standards, related to Accessory Use Outdoor Storage Standards. Applicant: Tim Flander/Big Bear Holdings, LLC. D. Consideration of a Request for a Conditional Use Permit for Cross/Joint Parking Easement in the Riverfront Sub -District of the Central Community District (CCD). Applicant: City of Monticello E. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, Section 153.012 — Definitions, as related to Public Building and Uses and Including Community Event Center. Applicant: City of Monticello F. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, Section 153.060 — Landscaping and Screening, for Standards Relating to Native Landscapes. Applicant: City of Monticello 3. Regular Agenda A. Tabled — Consideration of a Request for Development Stage Planned Unit Development (PUD) for a 150 -unit Multi -Family Residential Building in the B-3, Highway Business District and Rezoning from B-3, Highway Business District to Great River PUD District. Applicant: Briggs Companies B. Consideration of Adopting Resolution PC -2023 -XX, Finding the Proposed Acquisition of Certain Land by the City of Monticello Economic Development Authority is Consistent with the City of Monticello 2040 Vision + Plan (Comprehensive Plan). 4. Other Business A. Community Development Director's Report 5. Adjournment