IEDC Minutes - 8/1/2023INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
MINUTES
Tuesday, August 1, 2023
7:00 a.m. at Monticello Community Center
Members Present: Chairperson Sarah Kortmansky, Vice Chairperson Luke Dahlheimer, Liz
Calpas, Wayne Elam, Tracy Hinz, Joni Pawelk, Randy Skarphol, Rob Stark,
Andrew Tapper, Darek Vetsch, Tony Velishek , Jared Merchant
Members Absent: Kevin Steffensmeier, Corey Ritter
Liaisons Present: Rachel Leonard, Jim Thares, Marcy Anderson, Jolene Foss, Tim
Zipoy
1. Call to Order
Chairperson Sarah Kortmansky called the regular meeting of the Monticello IEDC to
order at 7:01 a.m.
Approve Minutes:
LIZ CALPAS MOVED TO APPROVE THE JUNE 6, 2023, REGULAR MEETING MINUTES.
RANDY SKARPHOL SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Consideration of Adding Items to the Agenda
An Update from the county commissioner, Vetsch was added.
2. Regular Agenda
A. Consideration of Appointing Liz Kokesh as a member of the IEDC
MOVED TO ACCEPT THE APPOINTMENT OF LIZ KOKESH AS A MEMBER OF THE
IEDC. JONI PAWELK SECONDED THE MOTION. MOTION CARRIED
UNANIMOUSLY.
Jim Thares reminded the Committee the appointment will be presented to the
City Council to be approved.
B. Table Topic — 2023 Legislative Session Authorized Economic Development
Funding — MN -DEED Business Assistance Programs
Jim Thares, Economic Development Manager, gave a condensed overview of
new funding assistance programs administered by MN -DEED authorized by the
Minnesota legislature during the 2023 legislative session.
Deed received $1.8 million this year. In the past 7 years, a cumulative amount of
$1.2 million has been provided to MN -DEED. A total of $800 million is available
in the general fund for jobs, taxes, and cannabis, $443 million for capital
investment which includes broadband, $50 million for a closing fund which
allows DEED and the Governor with the ability to put forward proposals to
competitively fund development projects. This is the first time Minnesota has
had this type of funding tool which is similar to that of many other states. An
additional $400 million was allocated to the Minnesota Forward Fund including
$50 million for matching funding by Federal programs; $100 million to various
DOD programs, as well as match dollars for bio industrial proposals and $250 for
CHIPS matching funds.
In addition, the two key mainstay programs, MIF and JCF, were fully funded at
$20 million ($10 million to each program). These are the two programs that the
City of Monticello has been to tap into for several recent projects over the past
few years (Bondhus expansion, UMC expansion and Wiha Tools expansion). The
Jobs bill provides for a one-time investment of $10 million, $7 million for the
McKnight foundation, $6 million for Canstartup loans — including Cannabis
business, $2 million for the Emerging Entrepreneur Fund, and $3 million for
MCCD. MIF & JCF job and wage thresholds were also reduced making the
funding more functional and accessible.
The Jobs bill provides a one-time investment of $10 million for an Expanding
Opportunity Fund with $7 million for the McKnight Foundations for their
revolving loan funds, $6 million of Canstartuploans —financing for Cannabis
businesses, $2 million for the Emerging Entrepreneur Fund, $3 million for
Community Wealth Building Program (MCCD),
The Tax bill funded the Angel Tax Credit at $10 million in FY24-25 but not
ongoing and the Film Board Tax Credit was funded at $18.6 million in FY24-25
and $25.7 million in FY26-27.
The City of Monticello received $500,000 in 2021 from the Community Energy
Transition (CET) Program which is for cities to transition away from reliance on
their power plants. The City is currently discussing a second application with the
new funding in the CET program.
The Jobs bill also provided $15 million in the FY24-25 biennium and $3 million in
the FY26-27 biennium to support childcare economic development in Greater
Minnesota. It also created an Office of Child Care and Community Partnerships at
the Department of Employment and Economic Development, funded at $1
million in each biennium, and provides $7 million to the McKnight Foundations
(Initiative Foundation) for their Child Care programming. A total of $1.5million
was authorized to support immigrant and refugee integration, reduce barriers to
employment, and improve connections between employers and jobseekers.
The Jobs bill also makes a one-time $10million investment to modernize the
digital tools that support workforce development initiatives across Minnesota.
The legislature changed the law to remove this limitation during summer breaks
to make these K-12 school workers eligible to collect UI benefits (bus drivers,
non -instructional staff).
Expectations on DEED staff as well as its partners and projects/initiatives being
funded for the various economic development opportunities are very high due
to the unprecedented level of funding, though it understood that it will take
DEED a bit to get better organized to begin disbursing the new funding.
Update From County Commissioner, Darek Vetsch
Commission Vetsch shared an update on a draft Wright County Cannabis
Moratorium. The Commissioners will be asked at the regular meeting on August
1, 2023, to schedule a Public Hearing on Tuesday, August 22, 2023, to present a
draft ordinance restricting the use of cannabis in public places and vehicles in
Wright County. This is a public health ordinance and would be enforced county
wide.
3. Reports
a. Economic Development
L IEDC Event Updates
1. Business Round Table
Jim Thares provided an update of the sub -committees' planning
efforts. The event is scheduled for September 14, 2023, from
3:00-5:00 p.m. The location is Nordic Brewery. This event is
informal with representatives from the Initiative Foundation,
MNDEED, WCEDP, and Mr. Thares as Economic Development
Manager will be there to answer questions and present Financial
Options for Small Businesses.
A "Save the Date" postcard and an email has been sent. Another
would be sent later in the month.
Mr. Thares is asking for assistance in getting the word out and is
asking for all IEDC members to consider attending if their
schedules allow.
2. Manufacturer's Appreciation Breakfast
An internal committee has met and are scheduling a caterer,
florist, and creating a "Save the Date" postcard.
i 2nd Quarter Building Permits
2nd quarter construction of new single homes dropped significantly
from 2nd quarter 2022, however, Commercial - Industrial New -
Remodel — Addition ytd has increased by over $2 million.
iii. Project Update
Mr. Thares presented updates on several projects.
• Block 52 Mixed Use Commercial -Residential Redevelopment—
Finish
edevelopment—
Finish work is beginning on the interior of the building. The
project is moving relatively fast and the projected may be ready to
open in early 2024 as opposed to a previous projected date of
May 2024.
The Business Subsidy component of the Purchase and TIF
Development Contract requires 45 new FTE jobs to be created by
the development (by the new businesses that are located in the
building).
• Wiha Tools Warehouse Facility Development —The building walls
and roof have been completed. Plumbing and utility connects, and
floor preparations is currently under construction.
Wiha is committed to an additional 59 FTE new jobs over the next
5 years.
• Scooters Coffee Shop - Broke ground on May 25th
• Deephaven 3rd — West Metro Optomology will be relocating from
its long-time home at 504 Pine Street.
• Sunny Days Therapy — Construction of the Sunny Day's is in the
final phase.
• Headwaters Villa Twin homes —10 units are planned to be
completed by late July with balance of the 50 units would be
placed and finished throughout the remainder of 2023.
• Headwaters Apartments — The 102 -unit apartment building for
ages 55 + is expected to begin in the fall of 2023 and progress
through the entirety of 2024.
• Monticello Lakes Apartments — Is a 200 -unit apartment
development at the Pointes At Cedar (PAC) and is expected to
begin construction mid -summer.
• Take -5 car wash is scheduled to open this month.
• Another multi -family unit proposal is in concept stage.
• Additional commercial development is being proposed at various
sites.
iii. Prospects List
1. Mr. Thares highlighted the prospect list. During the past month five
hotel developers contacted the city regarding potential hotel
developments concepts. The 2020 Hotel Study results showed
Monticello needs hotel space of at least a hundred rooms.
2. One new prospect on the list Project Flower M&M — Conceptual
manufacturing
3. Continue to receive prospects from DEED for large projects.
iv. Planning Commission
A. Mr. Thares reviewed the Planning Commission 08/01/2023 Agenda. Prior to the
meeting there is a special joint workshop City Council/Planning Commission, a
concept review of a mixed-use property. The regular meeting includes 3 Public
Hearings: a request of an amendment to the Haven Ridge 2nd Addition to the PUD
design standards, an amendment to the Zoning Ordinance related to commercial
animal kennels as a principal use, an amendment to the Zoning Ordinance approved
language within Ordinance No. 799 as related to R-1, Single -Family Residential
District
b. City Council
Rachel Leonard, City Administrator, highlighted a few items the council and staff
have been working on. A Downtown public street improvement project bid
opening has been approved, Budget Workshops are being held to give direction
to staff for the 2024 budget. A preliminary levy will be approved in September.
It should be noted that two active TIF Districts will be decertified with the taxes
from those properties being fully available to fund general government
functions.
c. Wright County Economic Development Partnership (WCEDP)
Jolene Foss, Wright County Economic Development Partnership Executive
Director, highlighted upcoming events:
• WCEDP 30th Anniversary —August 22, 4-7 p.m. — Buffalo Rodeo
Grounds
• WCEDP Golf Open — September 13th, 10:00 a.m. Albion Ridge
• A follow up to a May 2023 BRE visit with Cargill is focused exploring
addressing the demands of childcare.
• Working on the 2024 Wright County Strategic Planning
• An Economic Conference is scheduled for September
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.
The Riverfest is considering resources for volunteers including non-profit
organizations and students.
4. Next Meeting Reminder — Date: September 5, 2023
5. Adjournment (7:85 a.m.)
THE REGULAR MEETING OF THE MONTICELLO IEDC. MEETING WAS ADJOURNED BY
CONSENSUS.
Recorder: Vicki Leerhoff
Approved: September 5, 2023
Attest:
Jarr>/es Tl�res, Economic Development Manager