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IEDC Agenda - 12/05/2023AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, December 5, 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, Ryan Schmitz, Rob Stark, Tony Velishek, 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. November 6, 2023, meeting minutes C. Consideration of Adding Items to the Agenda 2. Regular Agenda A. Consideration of Member Re -Appointments to IEDC (Term Renewals) B. Consideration of Proposed IEDC 2024 Meeting Schedule Adjustments C. Table Topic — CMRP (Central Mississippi River Regional Planning Partnership) Update — Darek Vetsch and Rachel Leonard 3. Liaison Updates A. Wright County Economic Development Partnership (WCEDP) B. Chamber of Commerce C. Economic Development • Prospects Update • December 5, 2023 Planning Commission Agenda D. City Council Update 4. Other Business A. Next Meeting Reminder — Date: January 2, 2024 5. Adjournment (8:00 a.m.) INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) DRAFT MINUTES November 6, 2023 7:00 a.m. at Monticello Community Center Members Present: Chairperson Sarah Kortmansky, Vice Chairperson Luke Dahlheimer, Eric Olson, Joni Pawelk, Darek Vetsch, Andrew Tapper, Randy Skarphol, Rob Stark, Jared Merchant, Corry Ritter, Liz Kokesh Members Absent: Liz Calpus, Wayne Elam, Andrew Tapper, Tony Velishek Liaisons Present: Rachel Leonard, Jim Thares, Marcy Anderson, Jolene Foss Guests: None 1. Call to Order Chairperson Sarah Kortmansky called the regular meeting of the Monticello IEDC to order at 7:04 a.m. Approve Minutes: LUKE DAHLHEIMER, MOVED TO APPROVE THE SEPTEMBER 26, 2023, REGULAR MEETING MINUTES. ERIC OLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration of Adding Items to the Agenda: 2. Regular Agenda A. Table Topic — School District Facilities and Programs Update Rachel Leonard, City Administrator shared the background the Community Energy Transition (CET) funding program. The grant program was authorized due to the advocacy of the Coalition of Utility Cities (COUC) pushing for assistance targeted to communities hosting energy generating facilities which recently have or are scheduled to be decommissioned. The City of Monticello and Becker are just a couple of examples of Minnesota cities in this situation. As a result of these efforts the legislature authorized the creation of an Energy Transition Office (ETO). Monticello was a recipient of a $500,000 CET Grant in the prior grant round in 2021 which helped the city with preparation and planning for the eventual day when the Monticello Nuclear Generating Plant (MNGP) decommissions. In the 2023 Legislative session, the Coalition of Utility Cities (COUC) and the Energy Transition Office went back to the State and advocated for the CET program to continue and to provide more funding for grants to support these communities. In addition to planning activities, the COUC advocated for the importance of funding and supporting capital projects for infrastructure improvements. A total of $5 million is currently available from the Renewable Development Account administered by MN -DEED. Xcel Energy and other utility operators have been paying into this account over many years. An additional $5 million was an authorized as an appropriation from the State's general fund. The City of Monticello's 2023 grant proposal requests $987,500 in fiscal year 2024 and $1,000,000 in fiscal year 2025 for the construction of municipal water and sewer utility extensions to serve the Northwest Growth Area of the community. The public utilities commission provided a Certificate of Need that allows Xcel to store additional fuel at its Monticello site past 2030. That is not finalized and will need to go through the next legislative session. This relicensing is important and grants us time to make sure we are planning as to how to redistribute the tax base as Xcel will not be sustaining the same level of support for the community. Jim Thares, Economic Development Manager provided additional information about the current grant request. The 2023 funding request is best defined as a bridge connecting the planning activities from the 2021 funded activities to the physical improvements proposed in the current grant request. Mr. Thares reviewed a list of plans and/or strategy documents including the "Strategic Transition Plan" and the "Industrial Feasibility Study' which shows the potential to create industry on the East and NW sides of Monticello. The 2021 grant also helped complete shovel ready steps for several additional sites in Monticello's Otter Creek Business Park (OCBP) as well. It also provided resources to begin work at the Points at Cedar. The 2024 grant round, if approved by MN -DEED, will fund infrastructure to open new industrial sites by running sewer and water lines to the Northwest Growth Area. Currently a 131 -acre parcel in this area is being marketed. There is also an additional 160 acres of land nearby which is available for development. Extending the public utilities is an approximately $4 -to -5 -million -dollar cost. The City is applying for $1 million in 2024 and nearly $1 million in 2025. It will match the grant dollars with its own resources from the Utility Fund accounts. In late 2022, a developer representative inquired about the potential to create a 300 -acre industrial park in the Northwest Growth Area. Those exploratory efforts are representative of what could be similar inquiries in the future. Utilities are essential for development to occur. It is always easier to market sites that have infrastructure in place. By showing the City is proactive and prepared, it will influence businesses' willingness to consider the sites in this area. In addition, opening up the Northwest Growth Area industrial sites may help make the case for an additional 1-94 interchange. Becker is also developing its industrial park across the Mississippi River which will help make the argument for an additional river crossing and interchange. Replacing the Xcel MNGP valuation is no small task. The City of Monticello would need to have over $23 million of Industrial and Commercial development completed every year for the next 20 years to mitigate the loss of Xcel's value and the property taxes that it now yields. If the City is awarded this grant, it will have one and half to two years to complete the work and spend the funds. City staff are prepared for this as they have been discussing the project scope for several months. Matt Leonard, Public Works Director, has been involved in gathering the initial cost estimates to inform the overall proposal funding structure. Staff are asking the IEDC to provide a letter of support for the CET grant application. LUKE DAHLHEIMER MOVED THE IEDC SUPPORT THE CET GRANT APPLICATION. MOTION SECONDED BY ERIC OLSON. MOTION CARRIED UNANIMOUSLY. Reports a. Economic Development Mr. Thares provided an update L 3R1 Quarter Building Permits • Single family permits is down from $8.3 million to $5.3 million from 3rd quarter 2022 to 3rd quarter 2023. • Multi family is up by $1.2 million. ii. Prospects and Projects • Childcare Contact • 2 Large Industrial Contacts iii. Planning Commission Mr. Thares reviewed the Planning Commission 11/06/2023 agenda. b. City Council Rachel Leonard, City Administrator, presented current projects and actions of the City Council including approving the Tax Abatement Policy, PARC needs & assessments, opening the MCC kitchen for rental use, and approving the hiring of a construction manager, RJM, for the new Public Works facility. c. Wright County Economic Development Partnership (WCEDP) Jolene Foss, WCEDP Executive Director, gave an update on Wright County Economic Development Partnership's activities, the launch of their new website on December 1, and the upcoming annual meeting on January 19, 2024. d. Chamber of Commerce Marcy Anderson, Chamber of Commerce Director gave an update for the Chamber. The visit to the High School was a success. The goal is to do this type of presentation again. The Annual Banquet is scheduled for December 1, 2023 at the MCC. 3. Next Meeting Reminder — Date: December 5, 2023 4. Adjournment (8:03 a.m.) LUKE DAHLHEIMER MOVED TO ADJOURN. ROB STARK SECONDED THE MOTION. MEETING ADJOURNED. IEDC Agenda: 12/05/23 2A. Consideration to appoint Members to new 3 -year terms on the Industrial Economic Development Committee. ALTERNATIVE ACTIONS 1. Motion to nominate Andrew Tapper, Eric Olson, Rob Stark, Tony Velishek, Cory Ritter, and Sarah Kortmansky for a three-year term to the Industrial Economic Development Committee (IEDC) effective January 1, 2024. 2. Motion of other. REFERENCE AND BACKGROUND The IEDC is asked to recommend appointment or action for expiring members terms as listed below. Current terms for the Commission are as follows. IEDC Andrew Tapper 3 yr 12/2023 (3 -year staggered terms) Eric Olson 3 yr 12/2023 Sarah Kortmansky 3 yr 12/2023 Rob Stark 3 yr 12/2023 Tony Velishek 3 yr 12/2023 Cory Ritter 3 yr 12/2023 Jarred Merchant 3 yr 12/2024 Darek Vetsch 3 yr 12/2024 Luke Dahlheimer 3 yr 12/2024 Randy Skarphol 3 yr 12/2024 Joni Pawelk 3 yr 12/2025 Wayne Elam 3 yr 12/2025 Kevin Steffensmeier 3 yr 12/2025 Liz Kokesh 3 yr 12/2025 Vacancy Student Rep Vacancy Student Rep Vacancy Chamber Rep 12/2024 Chamber Director Ex -officio Tracy Hinz Council liaison IEDC recommendations on appointments will be considered for ratification by the City Council on December 11, 2023. STAFF RECOMMENDATION: Staff defers to the IEDC on matters of appointment. SUPPORTING DATA: A. ORD 517 Title 2 Chapter 10 (IEDC) 3-05-2019 B. IEDC Organizational & Membership Guidelines CHAPTER 10 INDUSTRIAL AND ECONOMIC DEVELOPMENT COMMITTEE SECTION: 2-10-1: Name of Committee 2-10-2: Authorization 2-10-3: Membership 2-10-4: Term of Office 2-10-5: Attendance 2-10-6: Vacancy 2-10-7: Officers 2-10-8: Meetings 2-10-9: Quorum 2-10-10: Duties of the Committee 2-10-11: Amendments 2-10-1: NAME OF THE COMMITTEE: The name of the organization shall be the Monticello Industrial and Economic Development Committee (IEDC). 2-10-2: AUTHORIZATION: Duties are delegated to the IEDC by the City Council of Monticello by this ordinance dated June 28, 2010, and by Resolution No. 2008-44 approved the 27th day of May, 2008. 2-10-3: MEMBERSHIP: The Monticello IEDC shall consist of sixteen (16) to eighteen (18) regular members to be appointed by the City Council of Monticello. Said Committee members shall consist of Monticello business representatives or residents of the City of Monticello. One Council member shall be appointed annually to serve on the IEDC. The Director of the Monticello Chamber of Commerce and Industry shall be an ex -officio member of the IEDC. Up to two (2) Monticello High School Senior Students may serve as voting members during their appointed term. The High School Principal shall recommend their membership on the IEDC. The IEDC and the City Council shall confirm their appointment. (Ord 637 4/25/16) 2-10-4: TERM OF OFFICE: The term of the regular members shall be for three (3) years and shall be staggered so that no more than one-half of the terms expire in a given year. All regular terms shall expire at the first City Council meeting of the new calendar year. 2-10-5: ATTENDANCE: It is the City Council's intention to encourage IEDC members to attend all IEDC meetings. It is desired that IEDC members attend at least 75% of meetings in a calendar year. Members may be subject to replacement by the City Council in the event attendance does not meet this standard. MONTICELLO CITY ORDINANCE TITLE II, CHAPTER 10, PAGE 1 2-10-6: VACANCY: Any vacancy in the regular or at large membership shall be filled by the City Council, and such appointee shall serve for the unexpired term so filled. 2-10-7: OFFICERS: (A) Elections. The Monticello IEDC shall elect at its Annual meeting from its membership a chair, vice chair, and a secretary who shall serve for a term of one year and shall have such powers as may be prescribed in the rules of said Committee. (B) Duties of Chair. The chair shall preside at all meetings of the IEDC and shall have the duties normally conferred and parliamentary usage of such officers. (C) Duties of Vice Chair. The vice chair shall act for the chair in his/her absence. (D) Duties of Secretary. The secretary shall keep the minutes and records of the Committee with the assistance of City Staff. 2-10-8: MEETINGS: (A) Regular meetings shall be held on a date established by the IEDC. In the event of a conflict with a holiday or special events, a majority at any meeting may change the date and location of the meeting. The meeting shall be open to the general public. 2-10-9: QUORUM: A majority of the total IEDC members shall constitute a quorum for the transaction of business. 2-10-10: DUTIES OF THE COMMITTEE: It shall be the duty of the Committee, with staff assistance, to advocate and make recommendations to the Economic Development Authority and City Council, relative to and including influencing industrial and economic development in and for the City of Monticello, with an emphasis on industrial land, increase tax base and number of liveable wage -level jobs by promoting industrial and economic growth, and working to maintain a desirable business environment. 2-10-11: AMENDMENTS: This ordinance may be amended as recommended by the majority vote of the existing membership of the IEDC and only after majority vote of the City Council. (#519, 8/23/10) (#715, 3-25-19) MONTICELLO CITY ORDINANCE TITLE II, CHAPTER 10, PAGE 2 MONTICELLO INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) ORGANIZATIONAL AND MEMBERSHIP GUIDELINES L Meeting Time and Place: Regular meetings are held the first Tuesday of each month at 7:00 a.m. at the Monticello Community Center. Special meetings may be called by the Chair. II. Mission Statement and Objectives: As written and adopted by the Monticello IEDC in the Annual Action Statement. III. Committee Size: While there is no set or definite size established, it is generally understood that the committee will not exceed 16-18 members. IV. Make-up of the Committee: Committee members must either work or reside in the community of greater Monticello. Individuals who are involved in an occupation or profession that provides services to the community of Monticello but is not headquartered within the community may also serve as members of the committee. Standing Committee Members: The City Council shall appoint a representative of either the Mayor or a Council Member to the IEDC as a voting member. The Board of Directors of the Monticello Chamber of Commerce & Industry shall appoint a voting member to the IEDC. Up to two (2) Monticello High School Senior Students may serve as voting members. The High School Principal shall recommend their membership on the IEDC. These members shall be considered in committee size. City Staff Members: Non-voting Administrator of the City of Monticello Economic Development Manager of the City of Monticello (serves as the EDA Executive Director) Community Development Director of the City of Monticello (in the absence of the Economic Development Manager) V. Officers: The Chair, the Vice Chair, and the Secretary shall be appointed annually at the January meeting. Length of office term shall not exceed three consecutive years. Minutes of each meeting are the responsibility of the Secretary. Committee correspondence is the responsibility of the Economic Development Manager. VI. Length of Membership Term: Members shall serve for three-year terms on a three year rotating basis so that approximately one-third of the membership expires each year. Individuals wishing to continue serving on the committee may so indicate prior to the 2019 IEDC ORGANIZATIONAL & MEMBERSHIP GUIDELINES PAGE 2 IEDC ORGANIZATIONAL/MEMBERSHIP GUIDELINES expiration of their term. Any member wishing to relinquish his/her position on the IEDC may do so by submitting a letter or resignation. VII. Filling a Vacant Position: A list of potential committee members shall be kept by the Executive Director. The IEDC must recommend approval of new members by a majority vote. The City Council must ratify the appointment of new members to the IEDC VIII. Membership Attendance: In order to make a positive contribution to the committee, each member is expected to attend at least 75% of the meetings in any given year. A year is defined as beginning on the 1 st of January and ending the 31St of December. Amended: 01/05/16, 12/06/2016, 03/25/2019 2019 IEDC ORGANIZATIONAL & MEMBERSHIP GUIDELINES Industrial Economic Development Agenda: 12/05/2023 2113. Proposed Revised 2024 IEDC Meeting Schedule Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 12/05/2023 Reviewed by: Approved by: N/A Community Development Director REFERENCE AND BACKGROUND ALTERNATIVE ACTIONS Motion to approve a revised 2024 IEDC Meeting schedule reducing the regular meetings from 11 to 7 throughout the year and occurring in January, March, May, June, August, September and November. Motion of other. REFERENCE AND BACKGROUND The IEDC is asked to approve a change to its meeting schedule, eliminating meetings in February, April, October and December (the IEDC has typically not met in July). The proposed schedule is not viewed as a diminishment of the IEDC's role in community and economic development efforts. It is intended to elevate the quality of the information sharing at the meetings and allow City staff sufficient time to coordinate Roundtable events and/or Business Retention & Expansion (BRE) visits to occur in between the meetings and further involve the IEDC members related to these activities identified in the Action Statements. The IEDC Ordinance (517 Title Chapter 10) does not state the schedule of the IEDC meetings (2-10-08). It states that meeting dates are to be determined by the IEDC. The Organizational and Membership Guidelines will need to be amended as they state that meetings occur each month (Section 1). The meeting date remains on the first Tuesday of those months. The meeting time will remain at 7:00 a.m. STAFF RECOMMENDATION: Staff recommends revising the 2024 meeting schedule to be a total of 7 regular meetings in the months of January, March, May, June, August, September and November. SUPPORTING DATA: A. IEDC Ordinance (see report 2A.) B. IEDC Organizational and Membership Guidelines (see report 2A.) Industrial Economic Development Agenda: 12/05/2023 2C. Table Topic — Central Mississippi River Regional Planning Partnership Update Prepared by: Meeting Date: ® Regular Agenda Item Administrative Assistant 12/05/2023 Reviewed by: Approved by: N/A Economic Development Director REFERENCE AND BACKGROUND Update information sharing presentation regarding Central Mississippi River Regional Planning Partnership by Darek Vetsch and Rachel Leonard. IEDC Agenda 12/05/23 3C. Economic Development Updates Prepared by: Meeting Date: ® Regular Agenda Item Administrative Assistant 12/05/2023 Reviewed by: Approved by: N/A Economic Development Director REFERENCE AND BACKGROUND Information overview by Jim Thares, Economic Development Manager. IEDC members are encouraged to ask questions as so inclined. Date of Contact /22/201 /29/20 128/201 /9/201' t16/203 (20/202 30-22 2/16/2021 3/19/2021 2/28/2022 6/16/2021 6/30/2021 7/29/2021 10/28/2021 2/7/2022 Company Name Business Category Project Description IL Karlsburger Foods Food Products Mfg. Facilty Expansion Project Blitzen Precision Machining Exist Bldg or New Const. Project Nutt Co -Working Space Existing Building Project FSJP Light Mfg -Res. Lab New Construction Project Jaguar Office New Construction Project Panda v3 Service -Child Care New Construction Project TDBBST Industrial New Construction Project Cold Industrial -Warehouse -Di New Construction stri Project Orion Warehouse-Distributi New Construction on Project Emma II Light Ind -Assembly New Construction Project UBAA Child Care Services New Construction or Exist Project Ecosphere Industrial Tech Mfg. New Construction Project BA710 Lt Assem-Distribute IProject Stallion Technology Service Project Shepherd Lt Assembly Distribution III 12/01/2023 0 9 $1,850,000 Concept Stage Building -Facility i Retained lobs New lobs Total Investment Project Status 80,000 sq. ft. 0 21 $12,000,000 20,000 sq. ft. +/- 42 10 to $4,500,000 On Hold Active Search 20,000 sq. ff. 20 4 $1,350,000 12,000 sq. ft. 5,000 sq. ft. 10 $1,200,000 Concept Stage ? ? ? ? Concept Stage 20,000 sq. ft. 0 20+/- $1,400,000 Active Search 22,000 sq. ft. 22 4 $2,700,000 Active Search 10,500 sq. ft. 0 21 $4,100,000 Active Search 10,000 to 15,000 sq. 0 9 $1,850,000 Concept Stage ft. 80,000 sq. ft. 0 21 $12,000,000 Concept Stage 832,500 sq. ft. 0 500 $125,000,000 Active Search 20,000 sq. ff. 0 4 $1,350,000 Active Search 5,000 sq. ft. 0 14 to 19 $2,000,000 Act Search 1,000,000 sq. ft. 0 1122 $85,000,000 Act Search New Construction 6,500 to 7,000 sq. ft 0 10 New Construction 42,000 sq. ft. 40 New Construction 75,000 sq. ft. 75 $650,000 Active Search $3,600,000 Active Search $10,500,000 Active Search PROSPECT LIST 12/01/2023 Date of Contact Company Name Business Category Project Description Building -Facility Retained lobs New lobs Total Investment Project Status 4/28/2022 Project Cougar Precision Machining -Mfg. New Construction 35,000 to 45,000 sq. ft. 38 $4,700,000 Active Search 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft. 0 500 $90,000,000 Active Search 10/28/2022 Project IAG Mfg. New Construction 300,000 sq. ft.? 0 50? $70 to $80,000,000 Active Search 11/9/2022 Project Tea Mfg New Construction 25,000 sq. ft. 55 20 $5,800,000 Active Search 12/13/2022 Project Love Mfg New Construction 250,000 130 $24,000,000 Active Search 4/20/2023 Project Lodge DH1 Lodging -Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 4/20/2023 Project Lodge RS2 Lodging Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 4/26/2023 Project Lodge DC3 Lodging Service New Construction ? ? ? $9,500,000 to $12,500,000 Active Search 5/30/2023 Project Flower -M &M Commercial Concept Expansion ? ? ? ? Concept 6/9/2023 Project Pez low_ New Construction 6,000 to 8,500 sq. ft. 12 2 $1.300,000 Active Search 7/1/2023 Project V Mfg New Construction 150,000+sq. ft. ? $16,000,000 Active Search 8/16/2023 Project Lodge RT4 Lodging-Hopsitality New Construction ? N/A ? $11,500,000 to $14,500,000 Active Search 8/31/2023 Project Enclave- W300 Industrial - Warehouse- Distr New Construction 300,000 sq. ft. N/A ? $30,000,000 to $34,000,000 Active Search PROSPECT LIST 12/01/2023 Date of Contact Company Name Business Category Project Description Building-Facility Retained lobs New lobs Total Investment Project Status 9/19/2023 Project Panda #4 SZ Childcare Facility New Construction ? N/A ? $2,000,000 +/- Active Search 10/12/2023 Project Fun Entertainment Expansion 2,400 sq. ft. N/A 4 $200,000 Concept Contacts: M = 03 YTD = 27 AGENDA REGULAR MEETING – PLANNING COMMISSION Tuesday, December 5, 2023 – 6:00 p.m. Mississippi Room, Monticello Community Center SPECIAL MEETING of the MONTICELLO PLANNING COMMISSION Monticello Community Center – Academy Room 4:15 p.m. Interview of Candidate for Open Planning Commission Position 7:30 p.m. Interview of Candidate for Open Planning Commission Position MONTICELLO PLANNING COMMISSION/CITY COUNCIL JOINT WORKSHOP Monticello Community Center – North Mississippi 5:00 p.m. Concept Stage Planned Unit Development Submittal for expansion of Storage Link -Dundas facility (36 Dundas Road) 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—November 6, 2023 F. Citizen Comment 2. Public Hearings A. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, Section 153.091– Use Specific Standards, to allow for a single industrial self -storage facility to be built on a parcel less than two acres, and allow for such individual units to be divided into spaces of at least 1,500 square feet in industrial districts, and including definitions or other regulations necessary to define and limit the intent or application of the proposed amendment. Applicant: Skylar Rekstad B. Consideration of a Comprehensive Plan Amendment to reguide two parcels from Mixed -Density Residential and Mixed Neighborhood to Public and Institutional, Rezoning from A-0, Agriculture Open Space District to Planned Unit Development (PUD) District, Preliminary Plat and Development Stage PUD for a proposed municipal Public Works facility. Applicant: City of Monticello 3. Regular Agenda A. Consideration of a recommendation for Planning Commission appointment for expiring term for Teri Lehner B. Consideration of 2023-2025 Planning Commission Workplan Update 4. Other Business A. Community Development Director's Report S. Adjournment