IEDC Minutes - 11/06/2023INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
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
i. 3RD 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.
Recorder: Vicki Leerhoff —&
Approved: December 5, 2023
Attest:
Jam 4Thares, Economic Development Manager