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IEDC Agenda - 08/06/2024AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, August 6, 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, Missy Meidinger, Deb Meyer, Dave Tombers, Tim Zipoy 1. General Business A. Call to Order B. June 4, 2024, meeting minutes C. Consideration of Adding Items to the Agenda D. Manufacturer's Week Appreciation Breakfast — Friday, October 11, 2024 2. Regular Agenda A. Table Topic — Business Retention Discussion; New Business Activity -Attraction Update 3. Liaison Updates A. Wright County Economic Development Partnership (WCEDP) B. Chamber of Commerce C. Economic Development • Project Update • Prospect List • August 6, 2024, Planning Commission Agenda D. City Council Update 4. Next Meeting Reminder— Date: Tuesday, September 3, 2024 -as per new meeting schedule 5. Adjournment (8:00 a.m.) MINUTES INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Monday, June 4, 2024 7:00 a.m. at Monticello Community Center Members: Chairperson Luke Dahlheimer, Vice Chairperson Jarred Merchant, Sarah Kortmansky, Eric Olson, Joni Pawelk, 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 Members Absent: Sam Murdoff, Darek Vetsch Liaisons Present: Marcy Anderson Staff Present: Jim Thares, Rachel Leonard 1. Call to Order Chairperson Luke Dahlheimer called the regular meeting of the Monticello IEDC to order at 7:00 a.m. Approve Minutes: Jim Thares, Economic Development Manager shared an amendment to the City Council Updates. ANDREW TAPPER MOVED TO APPROVE THE MAY 7, 2024, REGULAR MEETING MINUTES WITH AMENDMENT. ERIC OLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. Consideration of Adding Items to the Agenda: None 1. Regular Agenda A. Table Topic — 2024 Legislative Update I Discussion of Key Issues Senator Bruce Anderson, District 29 gave a presentation of Legislative Updates from the 2024 Legislative Session. 2. Liaison Updates A. Wright County Economic Development Partnership (WCEDP) Jolene Foss resigned her position. Rob Stark gave an update. They are seeking to fill the position. The current WCEDP contact is Missy Meidinger. Upcoming events include • Pass the Bill —June 6tn • Legislative Update Luncheon —June 27th B. Chamber of Commerce Marcy Anderson, Chamber of Commerce Director announced her resignation. The Committee thanked her for her service and support to the IEDC and Community and wished her well. C. Economic Development Jim Thares, Economic Development Manager provided an update. • Project Update • Prospect List • June 4, Planning Commission Agenda • IEDC Manufacturers Appreciation Breakfast on October 11.2024 D. City Council Update Rachel Leonard, City Administrator, presented current projects and actions of the City Council including completion of an audit, Downtown Road Project, West Bridge Park Improvements, Haven Ridge Sub -division infrastructure improvements, PEL Bridge Crossing Project, Xcel Nuclear Plant discussions and the NRC Public Hearing meeting. 3. Next Meeting Reminder— Date: Tuesday, August 7, 2024 - as per new meeting schedule 4. Adjournment (8:00 a.m.) RANDY SKARPHOL MOVED TO ADJOURN THE MEETING; MOTION SECONDED BY TONY VELISHEK. MEETING ADJOURNED BY CONSENSUS AT 8:08 A.M. Industrial Economic Development Agenda: 08/06/2024 2A. Table Topic — Business Retention -Expansion: New Businesses and Attraction Discussion and Updates Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 0/07/2024 Reviewed by: Approved by: Administrative Assistant Community Development Director REFERENCE AND BACKGROUND Staff will provide an overview of the Business Retention and Expansion Program efforts and the upcoming BR&E visit to Bondhus Corporation on August 7, 2024, at 10:00 a.m. IEDC Members are encouraged to discuss the intent and process -protocol of the visit during the IEDC meeting. In addition, staff will provide an overview of the new businesses that are being established in the City of Monticello and the expected impacts on the local economy. A list of the businesses is provided below (not an all-inclusive list). Additionally, staff will review the recent business - industrial attraction efforts (Project Maxwell) and the process and next steps related to that effort. New Businesses recently opening or planning to establish locations in Monticello: 1. Starbucks (standalone) Store with a Drive thru — 841 Chelsea Rd E 2. Chipotle Restaurant with a Drive thru — 779 Chelsea Rd E 3. Panera Bread Restaurant with a Drive thru — 1495 71" St E 4. Les Schwabe Tire Store — 5. Discount Tire Store — 6. Wendy's Restaurant with a Drive thru — 7. Boulder Tap House — Part of the Fairfield By Marriott Hotel Development 8. Jersey Mikes Sandwich Shop — Part of the Fairfield By Marriott Hotel Development 9. Style Junkie Boutique — 213 Pine Street 10. Cocoa Maas — 242 Broadway 11. Poke One — 525 State Hwy. 25 Additional information about the cumulative investment of the listed projects and the jobs that are expected to be created through the new businesses will be provided at the meeting. SUPPORTING DATA A. University of Minnesota Extension Service - Business Retention & Expansion Information Business Retention and Expansion (BRE) Minnesota Examples of An Essential Economic Development Activity Michael Darger, Marty Walsh, Amy Schaefer © 2023 Regents of the University of Minnesota. All rights reserved. What is BRE? In economic development, business retention and expansic program designed to strengthen the connection between cc and the community while encouraging each business to co grow in the community. Through direct interactions, event research, the program seeks to gain insight into business p planned future actions, as well as the challenges of targete companies. Then, to turn this "business intelligence" into vie services, programs, and/or products that address individua shared company opportunities and problems. Source: Business Retention & Expansion Intl. BRE. org 2 What are your goals for BRE? Standard goals for UMN's program 1. Demonstrate to local businesses that the community arc their contribution to the economy 2. Help existing businesses solve problems 3. Assist businesses in using programs aimed at helping i become more competitive 4. Develop strategic plans for long-range BR&E activities 5. Build community capacity to sustain growth and develo, © 2023 Regents of the University of Minnesota. All rights reserved. 3 Inform community about BR&E Organize the Leadership Team Organize the Task Force Practice visiting businesses Finalize the interview guide Train visitors Visit businesses Tabulate interview data Work on project teams (continuous) Sustain Leadership Tea pdate on projects — 1st Task Force Update con projects — 2"d qua Task Force Update on projects & plan to sustain BR&E — 3"' quarter Task Force Evaluate results Distribute results date on projects — 4"' quarter Task Force [Sustain or conclude BR&E Connecting Businesses and Community Program 4 Red or Green Flags The heart of BRIE is responding to business issues. • Red flags are downside risks of biz closing, leavi downsizing, etc. • Green flags are upside potential of biz expansior mergers, new locations, etc. © 2023 Regents of the University of Minnesota. All rights reserved. 5 Systemic Issues Identified in the Anal al 1. Improving Community Promotions 2. Cultivating Entrepreneurship 3. Employee Training Cooperative 4. Entrepreneur Business Planning S. Promoting "Out of the Box" Child Care Solutions © 2023 Regents of the University of Minnesota. All rights reserved. Wadena County Business Retention and Expansion Strategies Program Summary Report October 2019 6 Project 4. Entrepreneur Business Plan Did not 1 ~ r ams VW 4; 6% 1h . Ye's -o . --',qd Mot -,�vel .figure 4. Does thisbusIness hive a ,wtffen na =on plan for ownership, leadey-ship, or both:' Fall 2019: Identify and confiden- out to businesses who may be to transition in the near future Winter 2020: Start planning eves on the interest generated in the Spring 2020: Market event to po and educate sellers on transition how to prepare for the event April/May 2020: Host event Summer 2020: Develop a run_nir interested business buyers and would be used internally by loca make "matches" as they arise Who is involved? ■ Volunteers + Professionals ■ Leadership Team ■ Task Force ■ Volunteer Visitors ■ Business Owners ■ Outside Professionals ■ UMN Extension + UMD ■ State agency & Chamber & other ED experts CONNECTING BUSINESSES AND COMMUNITY PROGRAM SUMMARY OF VOLUNTEER ROLES LEADERSHIP TEAM AND TASK FORCE 1 hr Leadership Team is The eserunce committer of the Task Form and prmides ini leth e. The Task Force is the broad based group of communlit mcmbers that 1 Rcsearcb. Step : Prhrriltce and Step 3 Implement of UK., Cunne.tinq Businesses and Communtly Prtatrum. Ill l eadership'1'eam members are expected to help other members of the Leadpishlp Team and visit husmessps. t VISITATION COORDINATOR (LEADERSHIP TEAM) • t 1wful skills: nrganized, works well with others • Idcmtfv and recruit Task Force • Ideutlfi businesses to he vLslttYl • Cnordlnare Prarncr Vt%nz & %,tsnor traltnng • mail completed surveys to the report writer; keep copies in vcl:urc fdc • Time required averages 41, hnurs during Research and priorluze steps. Varies in Implement step • MILESTONE MEETING COORDINATOR (LEADERSHIP TEAM] • US6111 SIuI1S. large meeting pl.mnnig, C011ScnSUS bu&lirty. • .arrange:including mcltatums) the Task Force retrt-at • Arrange mx'luding tm9tations) the rnmtnumry commencement meeting • Time required averages TS tours during Research and Prioritize Steps. V: BUSINESS RESOURCES COORDINATOR (AKA "RED/GREEN FLAG' COORDINATOI Itsefut skills: people Skills, organized, persistent, tumiliar with state/rvvpu • Establish contacts with kwal, stair or Federal agentim that rdo help hxal • Prepare localized resource gltide on development prngrams • Mail thank you notes and localized resource guide to businesses after rht orgamre the warning flag review of sunet^s by the Task Force Assign a rrhahle Task For(T mcmtmr or resource person to handle each it concern • Time required averages a, hours during Research and Printihze steps. Vi MEMA COORDINATOR (LEADERSHIP TEAM) • Useful skills: enthustasuc, people skills, familiar wlih social media & trail Esnhlish conlarrs with the media Provide copy, photos, video to media • Time remulred. dy"CrlIYCS ' 7 � ' I Icm Vi 0 Minnesota BRE examples in the liters BUSINESS RETENTION AND EXPANSION (BRE) A PRACTICAL APPROACH TO ECONOMIC DEVELOPMENT Edited by Nfichael Darger, Alum Barefield, anti Brent D] I.,1c, ■ Several chapters froi ■ UMN's BRE program and improvements ■ A statewide Chamber BRE model, "Grow M ■ Using BRE methods transportation plannir MnDOT regions ■ The Silver Tsunami a small business transi- ■ Free downloads at z.umn.edu/Darger 0 Other BRE learning resources Understanding Business Retention ... X Our BRE model ii of PA Extension Center for Community Vitality - 4 f 10 The following is a brief introduction to the practice and prece f *__J embedded in our long-standing BRE Course. What is business retention and expansion (BR&EP + Major Task 1: Define your goals for doing BRE U of M Erzension Center for Com-.. Why is BR&E a core economic + Major Task 2: Data gathering and relationships with development strategy? ® ww�■wi U of NI Ex*:ension Center for Conn... + Major Task 3: Responding to business concerns (aka flags) How to do a Business Retention & Expansion BRE._. + Major Task 4: Research review meeting University of Minnesota Exzensio.. Role play skit. How to do a + Major Task 5: Research report ► Business Retention &... University of Minnesota Ext?nsio.. + Major Task G: Selecting priority projects Tips on how to make excellent business visits in a Business— + Major Task 7: Sustaining momentum University of Minnesota Ex;tensi �.. ® Business Retention and + Evaluating, adjusting and continuing your BRE Expansion (BRE) Resources U of %I Extension Center for Com- 10 ■ z.umn.edu/BREvideos (playlist) ■ z.umn.edu/BREintro (independent learning option • z.umn.edu/BREhome (all BRE stuff) ■ z.umn.edu/Darger (research and myriad example © 2023 Regents of the University of Minnesota. All rights reserved. iff Finally, what NOT to do ■ A classic tip from our role play skit for training BRE visitors.* ■ Brigid is the volunteer interviewer ■ John (middle) is the volunteer note -taker ■ Craig is the business owner * All are fine Extension actors. © 2023 Regents of the University of Minnesota. All rights reserved. 12 IEDC Agenda 08/06/24 3C. Economic Development Updates Prepared by: Meeting Date: ® Liaison Updates Economic Development Director 08/06/2024 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 (08-06-24 Mtg.). • Exhibit A. Project Update • Exhibit B. Prospect List • Exhibit C. Planning Commission Meeting Agenda — August 6, 2024 13 IEDC Agenda: 08/06/24 3C. Project Update Block 52 Mixed Use Commercial -Residential Redevelopment: Apartment units are nearly all rented out (11 out of 87 units remain to be rented). Project Simpl office space build out is completed. Simplicity Financial Group (financial services products (insurance and investments) has moved into the office and is operating from the 13,000 square foot +/- space. A total of 102 FTE employees (50 FTE new to Monticello) are projected to work in the office. A restaurant operator recently toured the building; City staff met with the operator to discuss potential funding assistance. A total of 95 new FTE jobs [50 + 451 will be required to be created by the new businesses that occupy the building. There is a three-year time period starting in July 2024 in which the new jobs are to be created. Headwaters Villa Twin Homes: The 60-unit Phase 1 twin home housing development project for ages 55 + on 7th 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 received all approvals by the EDA and City Council (TIF (1-42 modification -amendment). A total of 82 twinhome units will be constructed in phases 1 and 2. Of those a total of 33 must be rented to household with incomes below 60 percent of the area median income which is currently $95,259. Block 34 Redevelopment Efforts -Steps Update: In late June (06-27-24), the EDA closed on the purchase of a key parcel in Block 34. With that purchase, the EDA and City now control over 86 percent of the land area in the 2.36-acre Block. As a next step following the purchase transaction, a Request for Information (RFI) packet related to Block 34 was completed and recently provided to the EDA for review and approval. The EDA reviewed the RFI packet in a workshop on July 10, 2024, and approved the final packet on July 24, 2024. The packet will be emailed and mailed out to developers in the region in the first week of August. The response date is September 16, 2024. The packet has a lot of information about the existing conditions and challenges (municipal wells) in the Block as well as outlining the vision and opportunity for a quality mixed use redevelopment in quarter or half block sizes in the next couple of years. 14 IEDC Agenda: 08/06/24 Fairfield By Marriott Hotel Development: The Fairfield By Marriott Hotel Development proposal received land use entitlement approvals from the City Council at the July 22, 2024, meeting. A 10-year Tax Abatement Agreement was also approved (this is really a tax rebate meaning the hotel will pay is property taxes and then it will be rebated or reimbursed back to the developer as assistance to pay for a small portion of the development costs. The total amount of the tax abatement (not to exceed) is $378,515. This is approximately 2 percent of the total project investment of $19,500,000. The City evaluation scoring indicated this project had a score of 35. This is similar to scores for UMC's expansion and the Wiha Tools new facility development project. Wright County is also considering a Tax Abatement Agreement (on its potion of the property taxes) on August 20, 2024. That amount is project to be approximately 1.9 percent of the total investment over a 10 year period. 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. One building (100 units) will be completed in August and the second building (100 units) will be completed in late November 2024. i6i PROSPECT LIST 08/01/2024 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 5/22/2018 3/19/2021 2 28 2022 6/16/2021 10/28/2021 2/7/2022 4/28/2022 Karlsburger Foods Project Orion Project Emma II Project UBAA Project Stallion Project Shepherd III Project Cougar Food Products Mfg. 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 or Exist New Construction New Construction New Construction 20,000 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 10 to 20 500 4 14 to 19 40 75 38 $4,500,000 $125,000,000 $1,350,000 $2,000,000 $3,600,000 $10,500,000 $4,700,000 On Hold 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 JAG 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 5/30/2023 Project Flower-M &M Commercial Concept Expansion ? ? ? Concept 16 PROSPECT LIST 08/01/2024 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 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 3/29/2024 Project ET-BB-12-9 Industrial Relocate - Existing Bldg 12,000 sq. ft. 12 $1,150,000 Identified Site 17 PROSPECT LIST 08/01/2024 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 4/12/2024 Project Rest B52 Restaurant New build out -Finish 5,000 sq. ft. +/- 0 15 1500000 +/- Identified Site 5/30/2024 Project EP-BDDC LACW Data Center New Construction ?? ?? ?? Identified Site 5/31/2024 Project DC2-NWG-GB Data Center New Construction ?? 0 40 ?? Active Search 6/28/2024 Project Maxwell Industrial New Construction 150,000 to 200,000 sq. ft. 0 175 $187,000,000 Active Search 7/3/2024 Project Hair Obsess Service Property Acquisition and Renovation 2,100 sq. ft. 14 6 $600,000 Identified Site 7/30/2024 Project EPG 40x2-50 Industrial New Construction 40,000 sq. ft. 0 40 $4,000,000 Active Search Contacts: M =01 YTD= 26 in AGENDA REGULAR MEETING — PLANNING COMMISSION Tuesday, August 6, 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 1. General Business A. Call to Order B. Roll Call C. Consideration of Additional Agenda Items D. Approval of Agenda E. Approval of Minutes • Regular Meeting Minutes —June 4, 2024 • Special Meeting Minutes —July 2, 2024 • Regular Meeting Minutes —July 2, 2024 F. Citizen Comments 2. Public Hearings A. Consideration of a Request for Amendment to the Camping World Planned Unit Development District as related to required building materials Applicant: Camping World B. Consideration of a Request for Preliminary Plat (replat) of Haven Ridge West; Development Stage Planned Unit Development; and Rezoning to Planned Unit Development for a Residential Development including 298 single family detached and attached residential units. Applicant: Twin Cities Land Development C. Consideration of an Amendment to the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, Section 153.028 — Specific Review Procedures and Requirements as related to Planned Unit Development (PUD) Procedure and Timeline for Rezoning to PUD, and other regulations as necessary to define and limit the intent or W11 application of the proposed amendment. Applicant: City of Monticello 3. Regular Agenda 4. Other Business A. Community Development Director's Report 5. Adjournment 20