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EDA Meeting Minutes - 3/13/2024 (Joint Workshop)MINUTES JOINT CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY JOINT WORKSHOP MEETING Wednesday, March 13, 2024 — 5:00 p.m. North Mississippi Room, Monticello Community Center EDA Members Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger Councilmembers Present: Mayor Lloyd Hilgart, Charlotte Gabler, Lee Martie Councilmembers Absent: Sam Murdoff, Tracy Hinz Staff Present: Rachel Leonard, Jim Thares, Angela Schumann, Sarah Rathlisberger, Hayden Stensgard, Tammy Omdal (Northland Securities Public Finance) 1. Call to Order EDA President Steve Johnson called the Joint Workshop of the Monticello Economic Development Authority (EDA) and City Council to order at 5:00 p.m. Mr. Johnson called the roll. 2. Outlot C. Featherstone 6t" Addition Development & Assistance Conceot Review Community Development Director Angela Schumann provided an overview of the purpose of the meeting and introduced the applicant team to the EDA, City Council, and the public. The purpose of the meeting was to introduce a potential project to the EDA and City Council as future considerations by both bodies would be needed in connection with the development. Jim Vos, a representative of Silas Partners, LLC., addressed the EDA, City Council, and the public. Stellis Health is interested in building a new facility in Monticello to serve as not only their eventual new clinic space, but also an ambulatory surgery center on an 89-acre parcel of land bounded by Highway 25 to the West and 851" Street NE to the South. Stellis has indicated their needs for the site are limited to 25 +/- acres. It was the group's plan to apply for business subsidy through the City for the public infrastructure internal to the site, to make the remaining developable land marketable to businesses that wish to come and build in Monticello. Potential users include those that would reflect the majority of allowed uses in the Industrial & Business Campus District (IBC), along with some regional commercial uses. Dr. Jason Halverson, President of Stellis Health, addressed the EDA, City Council, and the public. Dr. Halverson noted that when a patient needs to have same day surgery in the Monticello area, closest two options are either Maple Grove or St. Cloud. Providing an ambulatory surgery center in Monticello would eliminate a regional gap for care. EDA Treasurer Hali Sittig asked if given the closing of the Stellis Health location in Albertville was directly related to staffing issues, is Stellis Health confident there will not be a staffing issue at this new location in Monticello. Brent Wilde, CEO of Stellis Health, said there is no concern that this new location would have issues with staffing because it will provide for the ability to have multiple types of care options and needs to provide that care under one roof. When certain care needs are provided at one location, and others provided elsewhere, it makes it difficult for providers to give efficient care. Councilmember Charlotte Gabler asked if anything changes for the potential uses that would be on the land guided Light Industrial Park to the south of the subject site. Ms. Schumann said it would not. 011ie Koropchak-White asked for clarification on whether Stellis Health would move their existing clinic location in Monticello to the new site. The group confirmed. Mayor Lloyd Hilgart asked what cities Stellis Health is currently located in. Stellis Health team members responded that they are currently located in Monticello and Buffalo. Mr. Johnson asked if the development group conducted a market study prior to deciding on the subject location. Mr. Wilde confirmed that a market study was conducted, and the response was overwhelming with interest for a facility like this opening up in the area. Mayor Hilgart asked if Stellis Health planned to move out of their Buffalo location. The group said they did not plan to do that with this proposed development. Mayor Hilgart asked how many employees would be anticipated with the first phase of development. Mr. Vos said that the 25,000 square foot ambulatory surgery center would bring roughly 25-30 jobs initially. Rick Barger asked what the timeline of the development is. Mr. Vos said that the first phase, the 25,000 square foot ambulatory surgery center, would potentially break ground in the Spring of 2025. Executive Director of the EDA Jim Thares provided an overview of the Business Subsidy process with the City of Monticello, for the purposes of a potential application for Tax Abatement. Ms. Schumann noted to the group that Tax Increment Financing (TIF) was not an eligible source of subsidy for this type of development. Tammy Omdal, Northland Securities Public Finance, addressed the group. She noted the main reason for the eventual ask for business subsidy is being driven by the public infrastructure that would be needed to serve this development. Mayor Hilgart asked if the development team can ask the County and School District for tax abatement. Ms. Omdal confirmed, but that would be separate from the City's participation in tax abatement. No action was taken on the item. 3. Adjournment OLLIE KOROPCHAK-WHITE MOVED TO ADJOURN THE JOINT WORKSHOP MEETING OF THE MONTICELLO EDA AND CITY COUNCIL. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, MEETING ADJOURNED AT 5:58 P.M. Recorded By: Hayden Stensgard/� Date Approved: April 10, 2024 ATTEST: Jirr/Thakes, Executive Director