EDA Agenda - 03/13/2024 (Jt Workshop)AGENDA
JOINT CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING
Wednesday, March 13, 2024 — 5:00 p.m.
North Mississippi Room, Monticello Community Center
1. Call to order
2. Outlot C, Featherstone 6t" Addition Development & Assistance Concept Review
3. Adjournment
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CITY OF
PHONE:763-295-2711 FAX:763-295-4404
Monti'leello 505 Walnut Street Suite 1 Monticello, MN 55362
CITY OF MONTICELLO
BUSINESS SUBSIDY APPLICATION
TAX ABATEMENT BUSINESS ASSISTANCE FINANCING
Legal name of applicant: Silas Partners, LLC
Address: c/o Cresa Minneapolis, 920 South Second St., Minneapolis, MN 55402
Telephone number: 612.810.0604
Name of contact person: James Vos
REQUESTED INFORMATION
Addendum shall be attached hereto addressing in detail the following:
1. A map showing the exact boundaries of proposed development.
2. Give a general description of the project including size and location of building(s); business
type or use; traffic information including parking, projected vehicle counts and traffic flow;
timing of the project; estimated market value following completion.
3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property.
Include a statement as to how the proposed development will conform to the land use
designation and how the property will be zoned.
4. A statement identifying how the abatement assistance will be used and why it is necessary to
undertake the project.
5. A statement identifying the public benefits of the proposal including estimated increase in
property valuation, new jobs to be created, hourly wages and other community assets.
6. A written description of the developer's business, principals, history and past projects
I understand that the application fee will be used for City-EDA staff and consultant costs and may be
partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the
City Council and be based on the costs incurred by the City-EDA prior to withdrawal of the request for
assistance. If the initial application fee is insufficient, I will be responsible for additional deposits.
SIGNATURE
Applicant's signature: _
Date: 4-Mar-24
(=�', -/1 - - - - -:)
www.ci.monticello.mn.us
CITY OF MONTICELLO
Application for Tax Abatement Business Assistance Financing
GENERAL INFORMATION:
Business Name: Date:
Address:
Type (Partnership, etc.):
Authorized Representative: Phone:
Description of Business:
Legal Counsel:
Address:
FINANCIAL BACKGROUND:
1. Have you ever filed for bankruptcy?
2. Have you ever defaulted on any loan commitment?
3. Have you applied for conventional financing for the project?
4. List financial references:
a.
a
C.
Phone:
2
5. Have you ever used Tax Abatement Business Assistance Financing before?
If yes, what, where and when?
PROJECT INFORMATION:
1. Location of Proposed Project:
2. Amount of Tax Abatement Business Assistance requested?
3. Need for Tax Abatement Business Assistance:
4. Present ownership of site:
5. Number of permanent jobs created as a result of project?
6. Estimated annual sales: Present: Future:
7. Market value of project following completion:
8. Anticipated start date:
FINANCIAL INFORMATION:
1. Estimated project related costs:
a. Land acquisition $
b. Site development
c. Building cost
d. Equipment
e. Architectural/engineering fee
f. Legal fees
g. Off -site development costs
Completion Date:
3
2. Source of financing:
a. Private financing institution
b. Tax Abatement funds
c . Other public funds
d. Developer equity
PLEASE INCLUDE:
I. Preliminary financial commitment from bank.
2. Plans and drawing of project.
3. Background material of company.
4. Pro Forma analysis.
5. Financial statements.
6. Statement of property ownership or control.
7. Payment of application fee/escrow deposit of $12,000
Addendum shall be attached hereto addressing in detail the following:
1. A map showing the exact boundaries ofproposed development.
, Beacon TM Wright County, MN
0Beacon Wright County, MN
See Also Exhibit A — Preliminary Concept Site Plan
2. Give a general description of the project including size and location of building(s); business
type or use; traffic information including parking, projected vehicle counts and traffic flow;
timing of the project; estimated market value following completion.
The 88 Acre Silas Partners Development is anticipated to occur in multiple phases with
multiple uses over the next 3-7 years. The primary objective of this endeavor is to
accommodate a 3-phase medical office development plan, which will be accompanied by
future additional uses including light industrial, commercial, and potential office uses.
A. The Medical Campus (28-30 acres):
The Medical Campus will be initiated by the development of an Ambulatory Surgery
Cetner (ASC) intended to provide an important and currently unavailable care model for
the community. The ASC will include radiology and lab services as required to support
their activity and is currently expected to be approximately 25,000 sf of single -story
development nearest the intersection of the future 89' street and Hwy 25. The ASC
would begin construction as quickly as design and permitting allow after completion of
the acquisition and the necessary infrastructure (utilities/roads, etc.)
The second phase of medical development will accommodate Stellis Health Care's new
Monticello clinic facility, supplemented by a collection of complementary care providers,
most of whom are not present on a full-time basis in the Monticello or Wright County
care community at this time. As these users have not yet been specifically identified or
committed to leases, the final scale of the project is fluid but anticipated to reach 150,000
sf, currently contemplated as a 3-story facility facing Hwy 25 and connected to the ASC.
The final phase of medical development will occur some years later as the region
continues to grow and demand for additional complimentary services is determined. The
preliminary development concept allows for up to 200,000 sf of additional medical office
space. The final design will assume shared parking (or proof of parking plans) to mitigate
the environmental impacts of the scheduled parking requirements and allow for additional
site circulation, possible rain gardens, and additional green space as part of an intentional
healing environment. The schedule and scale of this phase is yet to be determined.
The Medical Campus, at maximum capacity, is anticipated to have not more than 375,000
sf of development. We anticipate proposing a Planned Unit Development for the Medical
Campus that would address parking, access, stormwater, greenspace, etc. As this Medical
Campus will be developed in phases, traffic analysis by each phase will be presented for
municipal review and approval, including a possible additional right-in/right-out access
point off Hwy 25, subject to the approval of the city and MNDOT. The total value for all
3 envisioned Medical buildings, upon completion, could exceed $150,000,000.
B. Commercial (approx. 9-10 acres):
The previous preliminary concept plan approved by the city with platting of Outlot C
assumed approximately 10 acres of commercial zoning on the southwest corner of the
site. The preliminary plan for the Silas Partners Development follows that same general
assumption, with slight modifications for improved site circulation and traffic flow. Until
specific users express interest, we will not be defining specific parcel sizes within the area
generally reserved for Commercial Development. We do anticipate 2-4 users taking
parcels here, and might preliminarily assume 20,000-50,000 of buildings, with parking
and circulation as the uses and zoning regulations require. Estimating future value here is
difficult, though based on existing commercial uses and assessed values along Hwy 25,
one might imagine $5-10,000,000 in future value when this commercial land hits full
occupancy.
C. Industrial (approx. 23 acres):
Light industrial uses will occupy the property between the Medical Campus and the
residential development to the east (a separation which will be enhanced by the 50'
landscape buffer required by ordinance.) While there is a 23-acre parcel identified on the
preliminary plan, we anticipate that this may break into smaller parcels. While we may
find demand for a larger parcel which is difficult to identify within the City of
Monticello, we anticipate there may be more immediate demand for something smaller in
scale. Future subdivision and platting of this parcel will be contingent on expressed
demand by active users. Future values here are even more challenging to predict, however
current industrial property valuations in the community suggest the Industrial property
here might one day have an assessed value in the range of $15,000,000.
D. Office/Industrial (approx. 9 acres):
On the north end of the site, there will remain approximately 9 acres for which we
anticipate a higher value user would be sought, taking advantage of the Hwy 25 frontage
and further enhancing the professional/commercial nature of the larger Development. The
actual density, job base, and future value of this parcel is especially difficult to quantify
today, particularly in light of recent changes in office utilization patterns, however we
believe the momentum of development on the balance of the campus will draw the
attention of local business and attract a user or multi -tenant project who values the image
and energy this campus will create.
While we may hesitate to put specific values and timelines on any of the individual
components of the Silas Partners Development, it is clear that the 88 acre parcel, without
subdivision or utilities and infrastructure, is not suitable for any of the individual uses.
The sum of the parts in this case is demonstrably greater than the whole, particularly in its
current state. The concept plan to break this into useable components benefits employers,
future employees, and the greater Monticello region by converting highly visible,
undivided agricultural land within the city limits into parcels that are ready to become
contributing elements of an expanding community.
3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property.
Include a statement as to how the proposed development will conform to the land use
designation and how the property will be zoned.
The property is currently under the "A-O" Zoning designation according to the 2024 official
Zoning Map.
The Monticello 2040 Comprehensive Plan provides the blueprint for the community over the
next 20 years. In that document, the Future Land Use Map (Exhibit 3.3) indicates that the
Silas Partners Development should be designated for "Employment Campus" use, with the
exception of the southwesterly corner, which should be guided toward a "Community
Commercial" designation. The "Employment Campus" designation is consistent with the
current IBC zoning code, which allows a variety of uses with a primary focus on job creation.
In the 2040 Plan, no specific scale is established for the Commercial designation, but the
intent is clear and our proposed concept is consistent with this intent.
Medical Office is a permitted use under the IBC zoning designation, subject to a Conditional
Use Permit. It is our intention to file for a Planned Unit Development designation for the
"Medical Campus" to cover all related zoning, parking, green space, set back and use issues
for the initial developments, and to leave the balance of the potential industrial and office
parcels under the assumed IBC designation. As noted, the Commercial parcels will be
assumed to fall under an appropriate Commercial Zoning designation, but until a plat is filed,
no zoning designation will be sought for any parcels outside the Medical Campus PUD.
4. A statement identifying how the abatement assistance will be used and why it is necessary to
undertake the project.
Development of the Medical Campus, or any individual use contemplated within the campus,
requires that the entire Silas Partners Development parcel be prepared for utilization. Nearly
all of the roads, utilities, drainage, site prep, etc. must be built in order for the first phase of
the PUD to go forward. Subdivision of the larger parcel also requires that nearly 20 acres of
the existing parcel (approximately 22.5%) be dedicated to right of way or wetlands, acreage
for which the value must be allocated across the remining parcels. No individual project can
or should bear the weight of the larger scale that is required here. And while a gradual
development will be the smartest and most likely way to proceed, the time and financial risk
associated with leading this scale of project without some form of assistance would inhibit
any developer from pursuing the project.
Abatement simply accelerates and amplifies what's possible on this 88 acre site.
10
5. A statement identifying the public benefits of the proposal including estimated increase in
property valuation, new jobs to be created, hourly wages and other community assets.
While one might look at the potential for $150 million in future building value, or more, as a
primary inducement to pursue the Silas Partners Campus development, there are two
significant community benefits that might be overlooked if we consider only property tax
values or jobs.
First, Stellis Health, through the development of the Ambulatory Surgery Center, and their
new Stellis Health Medical Center, will bring the latest medical technologies to the
community, with specialist partners that can provide all of Wright County and their
surrounding communities care options that currently are only available in the Twin Cities
metro area or in St. Cloud. Monticello's focus on wellness and well-being is directly served
by the initial phase of this development, and Stellis Health, as a long-term member of this
community, is eager to lead the way. (A direct outcome of the expansion of care being
provided is also the expansion of employment opportunities for the wide range of medical
professionals and support staff that will be employed here.)
Second, the Medical Campus becomes a catalyst for future development that will have
numerous long-term benefits to the community. The availability of the commercial and
industrial parcels will attract new business, create new employment opportunities, facilitate
growth in the regions' tax base, and create additional economic vitality as Monticello
maximizes the capacity of its existing infrastructure. With the help of the City of Monticello,
Silas Partners will unlock the potential of this gateway parcel.
The traditional evaluation of a project like this includes discussion about employment gains.
We conservatively estimate an additional 100 jobs would be created, beyond those relocated
within Monticello by Stellis Health, in the ASC and first phase of the Medical Office
Building. New jobs will range from janitorial and kitchen staff to Med Techs, Nurses, PAs,
and physicians. The wage range will be quite broad, and opportunities will be available for a
variety of different skill sets. As we imagine the second phase of the MOB or the
development of any of the commercial industrial parcels, the employment counts become
almost impossible to forecast with any degree of accuracy.
6. A written description of the developer's business, principals, history and past projects
Silas Partners is a single purpose, single asset entity created specifically to make this project possible.
As a result, Silas cannot claim any history in the real estate development industry. Silas is being advised
by Principals with Cresa Minneapolis, with engineering support from Stantec, legal counsel from Kutak
Rock, tax and accounting support from Eisner Amper, and a host of other experts and advisors, all of
whom are highly qualified in their respective fields. Resumes for any of the involved advisors are
available upon request.
11
GROWTH STRATEGY
Monticello's growth strategy balances land use development needs with real
estate market demand, and transportation and infrastructure improvement
requirements to ensure an orderly and efficient use of land and resources.
There is a significant amount of development potential within Monticello's
existing municipal boundary and even greater potential in the surrounding
MOAA. Therefore, for the next 20 years, the general growth strategy prioritizes
development of remaining available vacant land within existing boundaries
and the downtown and surrounding area before substantially developing and
annexing land within the MOAA.
The growth strategy has three objectives:
Encourage growth which creates a strong and vibrant place to live, work,
shop and recreate, with focused infill development and redevelopment
to create a vibrant downtown and core community, • development which
provides a range of housing, employment and economic opportunity,
development which provides both a walkable community and safe
multi -modal transportation options, and development which sustains
and enhances the natural amenities of Monticello.
• Support investment and reinvestment within the existing city boundary
of Monticello, directing development into areas of Monticello already
serviced or planned to be serviced by roads and utilities, while also
thoughtfully designing and limiting development within and around
sensitive natural areas.
Ensure the managed development of appropriate and compatible land
uses which is resilient to shifts and changes in the economy, real estate
market and consumer demand, and responds to a changing tax base.
Briar Oakes Residential Property, Source: City of Monticello
Another aspect of the growth strategy is the designation of significant portions
of the MOAA as a Development Reserve. This is land reserved for an extended,
longer -term growth horizon beyond 2040 and the time horizon of this
Comprehensive Plan. However, some development in the MOAA is likely to
occur before 2040 and Monticello should adjust its land use policies and decision -
making with some measure of flexibility to accommodate new development
proposals as they occur. As long as development proposals meet the overarching
land use planning goals presented in this Comprehensive Plan, an amendment
to the Plan is the proper procedure for consideration of such projects.
Consideration for projects in the MOAA and annexation requests will follow the
current annexation agreement parameters, or any future amendments to the
agreement. Growth and development within the MOAA would naturally follow the
existing roadway network and its potential for expansion as well as the availability
of utility infrastructure, specifically sewer and water lines provided as City services.
Specific projects will require analysis of utility and infrastructure needs, roadway
network capacity, as well as land use compatibility. Given the MOAA's existing land
area and its growth potential, its full development build -out would occur over a
much longer time period, extending beyond the 20-year timeline of this plan.
Land in the Monticello Orderly Annexation Area
50 41«4[<M 419« � LAND USE, GROWTH AND ORDERLY ANNEXATION
GROWTH STRATEGY MAP
FUTURE LAND USE MAP
EMPLOYMENT CAMPUS (EC)
The Employment Campus designation is characterized by a campus -like environment on large parcels. It also provides a high level of amenities including pedestrian connections
and architectural and landscape treatment that maintain high standards of visual quality in a campus like environment. Characteristics such as noise, vibration and odor do not
occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors. This designation primarily applies to areas used
for research and development, medical laboratories, advanced and light manufacturing, green and renewable technology development (not installations), computer technology,
corporate headquarters and office campuses, and industrial engineering facilities. Some commercial uses such as restaurants and hotels are also allowed.
Employment
• Research and
Development
• Advanced and Light
Manufacturing
• Green & Renewable
Technology
Development
• Corporate
Headquarters and
Offices Campuses
• Industrial
Engineering
Facilities
Commercial
• Restaurant
• Child Care
• Corporate Hotel
Recreational
• Plaza
• Public Space
Primary Mode
IRVehicular with
access to collectors
and arterials
Transit or
shuttle service
Secondary Mode
Pedestrian -friendly
streetscape
Bicycle facilities
and parking
• Floor Area Ratio
(FAR)
♦
2018 Correlating
0.50 to 0.75
Zoning District
• Height -
IBC
Up to 6 stories
Business
• Lot Area -
Campus District
N/A
80 9« 9« LAND USE, GROWTH AND ORDERLY ANNEXATION
Subject Site
City Boundary
Q Parcels
1 in = 2,874 Ft
N
r-4 CITY OF
Monticello Map
2024
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By Datafi
wsb
GROWTH STRATEGY
Monticello's growth strategy balances land use development needs with real
estate market demand, and transportation and infrastructure improvement
requirements to ensure an orderly and efficient use of land and resources.
There is a significant amount of development potential within Monticello's
existing municipal boundary and even greater potential in the surrounding
MOAA. Therefore, for the next 20 years, the general growth strategy prioritizes
development of remaining available vacant land within existing boundaries
and the downtown and surrounding area before substantially developing and
annexing land within the MOAA.
The growth strategy has three objectives:
Encourage growth which creates a strong and vibrant place to live, work,
shop and recreate, with focused infill development and redevelopment
to create a vibrant downtown and core community, • development which
provides a range of housing, employment and economic opportunity,
development which provides both a walkable community and safe
multi -modal transportation options, and development which sustains
and enhances the natural amenities of Monticello.
• Support investment and reinvestment within the existing city boundary
of Monticello, directing development into areas of Monticello already
serviced or planned to be serviced by roads and utilities, while also
thoughtfully designing and limiting development within and around
sensitive natural areas.
Ensure the managed development of appropriate and compatible land
uses which is resilient to shifts and changes in the economy, real estate
market and consumer demand, and responds to a changing tax base.
Briar Oakes Residential Property, Source: City of Monticello
Another aspect of the growth strategy is the designation of significant portions
of the MOAA as a Development Reserve. This is land reserved for an extended,
longer -term growth horizon beyond 2040 and the time horizon of this
Comprehensive Plan. However, some development in the MOAA is likely to
occur before 2040 and Monticello should adjust its land use policies and decision -
making with some measure of flexibility to accommodate new development
proposals as they occur. As long as development proposals meet the overarching
land use planning goals presented in this Comprehensive Plan, an amendment
to the Plan is the proper procedure for consideration of such projects.
Consideration for projects in the MOAA and annexation requests will follow the
current annexation agreement parameters, or any future amendments to the
agreement. Growth and development within the MOAA would naturally follow the
existing roadway network and its potential for expansion as well as the availability
of utility infrastructure, specifically sewer and water lines provided as City services.
Specific projects will require analysis of utility and infrastructure needs, roadway
network capacity, as well as land use compatibility. Given the MOAA's existing land
area and its growth potential, its full development build -out would occur over a
much longer time period, extending beyond the 20-year timeline of this plan.
Land in the Monticello Orderly Annexation Area
50 41«4[<M 419« � LAND USE, GROWTH AND ORDERLY ANNEXATION
GROWTH STRATEGY MAP
FUTURE LAND USE MAP
EMPLOYMENT CAMPUS (EC)
The Employment Campus designation is characterized by a campus -like environment on large parcels. It also provides a high level of amenities including pedestrian connections
and architectural and landscape treatment that maintain high standards of visual quality in a campus like environment. Characteristics such as noise, vibration and odor do not
occur or do not generate significant impacts. Hazardous materials handling and storage may also occur but must be stored indoors. This designation primarily applies to areas used
for research and development, medical laboratories, advanced and light manufacturing, green and renewable technology development (not installations), computer technology,
corporate headquarters and office campuses, and industrial engineering facilities. Some commercial uses such as restaurants and hotels are also allowed.
Employment
• Research and
Development
• Advanced and Light
Manufacturing
• Green & Renewable
Technology
Development
• Corporate
Headquarters and
Offices Campuses
• Industrial
Engineering
Facilities
Commercial
• Restaurant
• Child Care
• Corporate Hotel
Recreational
• Plaza
• Public Space
Primary Mode
IRVehicular with
access to collectors
and arterials
Transit or
shuttle service
Secondary Mode
Pedestrian -friendly
streetscape
Bicycle facilities
and parking
• Floor Area Ratio
(FAR)
♦
2018 Correlating
0.50 to 0.75
Zoning District
• Height -
IBC
Up to 6 stories
Business
• Lot Area -
Campus District
N/A
80 9« 9« LAND USE, GROWTH AND ORDERLY ANNEXATION