IEDC Agenda - 06/04/2024AGENDA
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Tuesday, June 4, 2024
7:00 a.m. at Monticello Community Center
Members: Chairperson Luke Dahlheimer, Vice Chairperson Jarred Merchant, Sarah Kortmansky, Sam
Murdoff, Eric Olson, Joni Pawelk, Darek Vetsch, Wayne Elam, Andrew Tapper, Randy
Skarphol, Rob Stark, Tony Velishek, Cory Ritter, Liz Kokesh
Liaisons: Rachel Leonard, Angela Schumann, Jim Thares, Marcy Anderson, Dave Tombers,
Tim Zipoy
1. General Business
A. Call to Order
B. May 7, 2024, meeting minutes
C. Consideration of Adding Items to the Agenda
2. Regular Agenda
A. Table Topic — 2024 Legislative Update - Discussion of Key Issues — Senator, Bruce
Anderson, Senate District 29
3. Liaison Updates
A. Wright County Economic Development Partnership (WCEDP)
B. Chamber of Commerce
C. Economic Development
• Project Update —Verbal Presentation
• Prospect List
• June 4, 2024, Planning Commission Agenda
D. City Council Update
4. Next Meeting Reminder— Date: Tuesday, August 6, 2024- as per new meeting schedule
5. Adjournment (8:00 a.m.)
MINUTES
INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC)
Monday, May 7, 2024
7:00 a.m. at Monticello Community Center
Members Present:
Chairperson Luke Dahlheimer, Vice Chairperson Jarred Merchant, Sam Murdoff, Eric
Olson, Darek Vetsch, Wayne Elam, Andrew Tapper, Randy Skarphol, Rob Stark,
Tony Velishek, Cory Ritter, Liz Kokesh
Members Absent:
Sarah Kortmansky, Joni Pawelk,
Liaisons Present:
Marcy Anderson
Jolene Foss — Joined at 7:42 a.m.
Darek Vetch left at 8:00 a.m.
Liaisons Absent:
Dave Tombers, Tim Zipoy
Staff Present:
Jim Thares, Rachel Leonard
1. Call to Order
Chairperson Luke Dahlheimer called the regular meeting of the Monticello IEDC to order at 7:06
a.m.
Approve Minutes:
ANDREW TAPPER MOVED TO APPROVE THE SEPTEMBER 26, 2023, REGULAR MEETING MINUTES.
ROB STARK SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY.
Consideration of Adding Items to the Agenda:
None
1. Regular Agenda
A. Table Toaic — Commercial
Wayne Elam, Commercial Realty Solutions, gave a presentation of office, retail,
restaurant, commercial, and industrial properties pricing trends and available locations.
Commercial land sales are estimated and sold by square foot. There are 43,560 square
feet per acre. Mr. Elam pointed out that a lot which sold 10 years ago sold for $10.50/sq
ft. Four years later it sold for $12/sq. ft. The same property was purchased for $7.50/
sq ft. Land sales are not reflective of inflation but rather supply and demand which
Monticello has an inventory of land.
Recently a 10.5-acre industrial lot was sold in Albertville for $6/sq. ft. in comparison to
roughly $1/sq. ft. on the interstate in Monticello. Being closer to the core urban Twin
Cities metro area will generally result in higher prices for land. Because of Monticello's
geographic location, it is not currently conducive to being a distribution center. That
could change somewhat in the long-term future
Mr. Elam presented a list of CRS commercial sales from 2013 through 2023. There were a
total of 39 commercial industrial land sales in that 10 year time frame. A couple years
there were as many as six sales while in 2020 there was only one commercial land sale
transaction which reflects the COVID 19 economic upheaval. The average number of
sales per year is about four transactions. The 39 land sales equaled a total of 246.93
acres. The annual average for the 10-year period is about 24.69 acres. There were a
couple of outlier transactions involving the City of Monticello that mitigate the actual
development driven demand, reducing the average land sales acres to approximately
14.27 acres per year.
2. Liaison Updates
A. Wright County Economic Development Partnership (WCEDP)
Jolene Foss, WCEDP Executive Director provided an update.
• Legislative Update 6/27
• Maple Lake Business Expo — May 161h
• CEO Trade — May 22nd
• Capacity Building Seminar —June 6th
B. Chamber of Commerce
Marcy Anderson, Chamber of Commerce Director gave an update.
• Chamber of Commerce Director Marcy Anderson provided an update.
• Golf Tournament on May 16th
• 9 new Chamber members this year, 331 total
• Candidate Forum set for October 21
• Rive rfest July 12-14
• Puzzle-Palooza - October 5th
C. Economic Development
Jim Thares, Economic Development Manager provided an update.
• Project Update
• Prospect List
• May 7, Planning Commission Agenda
D. City Council Update
Rachel Leonard, City Administrator, presented current projects and actions of the City
Council including payment of bond, various project improvements, trunk and public
improvements for Featherstone 6th addition, Local Option Sales Tax presentation to
public, $1 million grant awarded to the city for the Ditch 33 Outlet Improvements and
several concept presentations.
3. Next Meeting Reminder— Date: Tuesday, June 4, 2024 -as per new meeting schedule
4. Adjournment (8:00 a.m.)
ROB STARK MADE A MOTION TO ADJOURN THE MEETING. MEETING ADJOURNED BY
CONSENSUS AT 8:14 A.M.
Industrial Economic Development Agenda: 06/04/2024
2A. Table Topic — 2024 Legislative Update - Discussion of Key Issues
Prepared by:
Meeting Date:
® Regular Agenda Item
Administrative Assistant
06/04/2024
Reviewed by:
Approved by:
N/A
Economic Development Director
REFERENCE AND BACKGROUND
2024 Legislative Update and discussion of key issues, Senator Bruce Anderson presenter.
SUPPORTING DATA
None
IEDC Agenda 06/04/24
3C. Economic Development Updates
Prepared by:
Meeting Date:
® Regular Agenda Item
Economic Development Director
06/04/2024
Reviewed by:
Approved by:
N/A
N/A
REFERENCE AND BACKGROUND
Information overview by Jim Thares, Economic Development Manager. IEDC members are
encouraged to ask questions as so inclined. Attachments include the Project Updates report,
the Prospect List and the Planning Commission Agenda (06-04-24 Mtg.).
• Exhibit A. Project Update
• Exhibit B. Prospect List
• Exhibit C. Planning Commission Meeting Agenda — May 7, 2024
IEDC Agenda: 06/03/24
3C. Project Update
Block 52 Mixed Use Commercial -Residential Redevelopment:
Residential units are still being rented out; approximately 55 units +/- have been filled. The
developer expects full occupancy in mid -August 2024. Project Simpl office space is being
finished at this time (13,000 square feet +/-) for Simplicity Group Financial Services, a financial
services -products (insurance and investments) firm, with 102 FTE employees (50 new FTE). A
restaurant operator has recently toured the building. A total of 95 new FTE jobs [50 + 45] will
be required to be created by the new businesses that occupy the building.
Headwaters Villa Twin Homes:
The 60-unit Phase 1 twin home housing development project for ages 55 + on 7t" Street West is
progressing with modular units being placed on the foundations. This work is expected to occur
for the remainder of 2024. The 22 twinhome unit Phase 2 project is going through TIF (1-42)
modification -amendment review and approval steps. Completion of those steps is expected in
late June 2024. Post approval from the City Council and EDA, the developer has indicated that
it will move forward and expects to complete construction of the additional 22 units by the end
of 2024.
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
rapidly progressing. 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.
Fairfield By Marriott Hotel Development Proposal
A 98-room Fairfield By Marriott Hotel Development Proposal is currently in the early concept
review steps. The proposed development site is south of the Best Western Chelsea Hotel
(south of Chelsea Road). A restaurant is proposed to be attached to the hotel. There is also a
IEDC Agenda: 06/03/24
separate small land pad site for a convenience service or retail entity to locate at this site. The
total estimated cost of the development proposal is approximately $18,000,000 +/-. The
developer is seeking to obtain approval for a Tax Abatement business subsidy to help finance
the proposal. The City Council is expected to review that request in late July or early August.
Wright County is also expected to review a similar Tax Abatement request from the developer
as well. A total of 45 +/- new fte jobs will be created through the completion of the
development. This proposal scored a 37 in the City metric evaluation review which is the
highest score of recent development proposals due to the small site, sizeable number of jobs
and significant private sector financing component.
Other Proposals on the Prospect List:
City staff are also involved in concept discussions regarding several other sizeable proposals.
Please see the summary report from Jim Gromberg, WSB. This report is provided to the EDA
on a quarterly basis.
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Memorandum
To: Jim Thares, Economic Development Manager
From: Jim Gromberg, Economic Development Coordinator
Date: May 30, 2024
Re: Project Updates
Thank you for the opportunity to continue to assist the City of Monticello in their continued efforts
to provide economic vitality for the community and the residents. Below are updates on some of
the projects and insights into the trends currently facing the city.
The city currently has several projects in progress for the continued growth of the commercial -
industrial tax base. In addition to the tax base growth these projects will allow for the continued
availability of employment and housing opportunities in Monticello.
The state has awarded the city a grant for the CET program for $1,000,000 that is currently
for future infrastructure extensions.
Project Updates:
Project Margarita: No changes on the status of the project from DEED.
• The city received an RFI from DEED for another project that requires 40 acres of land,
preferably greenfield.
• 50 MW of electricity
• $200 Million CAPEX
• Th City submitted the Featherstone site as a potential site for the project.
• The state is currently waiting to see if any sites in Minnesota make it through the first
round of review.
Project Singularity: No changes DEED is awaiting a response from the Company.
• German Manufacturing Company that is looking for 50-acre site.
• RFP was received from the state and was the second round of sites to be reviewed.
• The criteria have changed to include any sites with a labor shed of 150,000 within a 45-
minute drive.
• CAPEX is estimated to be $90 million with a workforce of 500 employees.
Project Wafer: No changes DEED is awaiting a response from the Company.
• Project Wafer is a manufacturing project RFI that was received by the city in October.
• The proposed project site requires 100 acres with the expansion possibility of 20
additional acres.
• Capex would be an estimated $630 million with the creation of 1,500 employees for
phase 1.
• One of the significant requirements for the project was a location within 20 minutes of an
interstate or major highway.
• The city submitted a potential site in the newly identified eastern industrial park.
Monticello IEDC
May 30, 2024
Page 2
DATA Center Interest: The city has been contacted by two large data center organizations that
develop data center sites for both co -locate and enterprise type facilities. Both companies are
under NDAs, but the city is actively collaborating with them on potential sites. Co -locate facilities
would be data centers that lease space out to other companies while operating the facility
Enterprise facilities are developed for a single user and are owned and operated by that user.
Data centers are generally a positive development of the community with a higher property tax
value and limited adverse effect on city services. They have a limited number of direct jobs but
generate a substantial number of ancillary support positions that are well above the average
wage levels. In the past, one of the issues with data center development was the significant water
uses for the facilities. With innovative technologies the need for continuous significant water
usage has been reduced through the development of closed systems.
Outlook:
• The Minnesota inflation rate has been trending down over the last few months with a
current rate of 2.7% compared to 3.4% nationally.
• Average hourly wages increased by 3.5% out pacing the inflationary rate.
• The Federal Reserve at their last meeting did not increase fed rate but did indicate that
the current interest rates may continue until the end of the year.
• The Fed has indicated that they may consider a rate reduction in 2025 should inflation
continue to be under control.
• Wright County's current average price per gallon is $3.369.
• Gas prices are moderating and are currently averaging $3.379 per gallon in Minnesota
and nationally averaging $3.907 nationally.
• The price per gallon is $0.15 than last year over the Memorial Day weekend.
• Minnesota's unemployment rate is currently at 2.7% compared to the national rate of
3.9%. The Minnesota rate has held steady at 2.7% for the last 6 months.
• Wright County's unemployment rate is 2.8% compared to Sherburne County's 3.0%.
• Minnesota's labor participation rate is 68.0% compared to a national average of 62.7%.
• GDP grew at 2.5% for 2023 and is projected to grow at 2.5% for 2024.
• The 30-year benchmark mortgage rate is around 7.13% compared to 7.0% in February.
• The residential real estate market remains strong; with homes being on the market for 29
days with the market for Wright County being balanced and the market falling slightly into
the sellers' market.
Please let me know if you have any questions concerning the above projects or require additional
information on the projects. In addition, let me know if you have additional projects that should be
reviewed and included.
PROSPECT LIST
05/31/2024
Date of
Contact
Company Name
Business Category
Project Description
Building -Facility
Retained Jobs New Jobs
Total Investment
Project Status
5/22/2018
2/16/2021
3/19/2021
2/28/2022
6/16/2021
10/28/2021
2/7/2022
4/28/2022
Karlsburger Foods
Project Cold
Project Orion
Project Emma II
Project UBAA
Project Stallion
Project Shepherd
III
Project Cougar
Food Products Mfg.
Industrial -Warehouse -Di
stri
Warehouse-Distributi
on
Light Ind -Assembly
Child Care Services
Technology Service
Lt Assembly Distribution
Precision Machining -Mfg.
Facilty Expansion
New Construction
New Construction
New Construction
New Construction or Exist
New Construction
New Construction
New Construction
20,000 sq. ft. +/-
80,000 sq. ft.
832,500 sq. ft.
20,000 sq. ff.
5,000 sq. ft.
42,000 sq. ft.
75,000 sq. ft.
35,000 to 45,000 sq. ft.
42
0
0
0
0
10 to
20
21
500
4
14 to 19
40
75
38
$4,500,000
$12,000,000
$125,000,000
$1,350,000
$2,000,000
$3,600,000
$10,500,000
$4,700,000
On Hold
Concept Stage
Active Search
Active Search
Act Search
Active Search
Active Search
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 R52
Lodging Service
New Construction
?
?
?
$9,500,000 to
$12,500,000
Active Search
PROSPECT LIST 05/31/2024
Date of
Contact
Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status
5/30/2023
Project Flower-M
&M
Commercial
Concept Expansion
?
?
?
?
Concept
6/9/2023
Project Pez
Mfg
New Construction
6,000 to 8,500 sq. ft.
12
2
$1.300,000
Active Search
7/1/2023
Project V-MOB
MOB
New Construction
175,000 +sq. ft.
?
$21,000,000
Identified Site
8/16/2023
Project Lodge RT4
Lodging-Hopsitality
New Construction
98 Room Hotel
N/A
30
$12,500,000 to
$13,600,000
Identified Site
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
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
1/17/2024
Project Tex
Industrial
New Construction
500,000 sq. ft.
0
100
$500,000,000
Active Search
1/17/2024
Project G
Industrial
New Construction
1,000,000 sq. ft.
0
?
$120,000,000
Focused Search
1/2/2024
Project Simpl
Office
New Construction -Build Out
13,303 sq. ft.
23
50
$2,000,000
Identified Site
2/12/2024
Project Lodge-
MSMWDC
Lodging -Hospitality
New Construction
?
0
10
$12,000,000
Identified Site
3/5/2024
Project Panda 20-
MS
Child Care Facility
New Construction
20,000 sq. ft.
0
20
$2,000,000
Active Search
PROSPECT LIST 05/31/2024
Date of
Contact
Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status
3/29/2024
Project ET-BB-12-9
Industrial
Relocate - Existing Bldg
12,000 sq. ft.
12
$1,150,000
Identified Site
4/12/2024
Project Rest B52
Restaurant
New build out -Finish
5,000 sq. ft. +/-
0
15
1500000+/-
Identified Site
Project BDD LACW
5/30/2024
Data Center
New Construction
??
??
??
Identified Site
Contacts: M
= 03 YTD =
21
AGENDA
REGULAR MEETING — PLANNING COMMISSION
Tuesday, June 4, 2024 — 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners: Chair Paul Konsor, Vice Chair Andrew Tapper, Teri Lehner, Melissa Robeck,
Rob Stark
Council Liaison: Councilmember Charlotte Gabler
Staff: Angela Schumann, Steve Grittman, Ron Hackenmueller, Hayden Stensgard
1. General Business
A. Call to Order
MERNIM.
C. Consideration of Additional Agenda Items
D. Approval of Agenda
E. Approval of Minutes
• Regular Meeting Minutes —May 7, 2024
F. Citizen Comments
2. Public Hearings
A. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage,
Chapter 153: Zoning Ordinance, Section 153.012 — Definitions, and 153.091— Use -
Specific Standards related to Wrecker & Towing Services as a Principal Use including
Definitions, Use -Specific Standards, and other regulations as necessary to define and
limit the intent or application of the proposed amendment
Applicant: City of Monticello
B. Consideration of a Request for Conditional Use Permit for Wrecker & Towing Services as
a Principal Use in the B-3, Highway Business District
Applicant: Nick Christenson
C. Consideration of a Request for Preliminary & Final Plat of Cedar Street Storage;
Revocation of an Existing Conditional Use Permit for Planned Unit Development;
Development & Final Stage Planned Unit Development; Rezoning to Planned Unit
Development
Applicant: Bruce Stainbrook
D. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage,
Chapter 153: Zoning Ordinance, Sections 153.012 — Definitions, 153.028 — Specific
Review Procedures & Requirements, 153.090 — Use Table, & 153.091— Use -Specific
Standards related to Contractor's Yard —Temporary, & Extraction of Minerals/Materials
as Principal Interim Uses including Definitions, Use -Specific Standards, & other
regulations as necessary to define and limit the intent or application of the proposed
amendment
Applicant: City of Monticello
E. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage,
Chapter 153: Zoning Ordinance, Section 153.091, Use -Specific Standards, as related to
Day Care Centers as a Principal Use in the Industrial & Business Campus (IBC) District
Applicant: City of Monticello
3. Regular Agenda
4. Other Business
A. Building Department Presentation
B. Community Development Director's Report
S. Adjournment