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EDA Agenda - 05/08/2024 (Workshop)AGENDA WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 8, 2024 — 4:30 p.m. Academy Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger and Councilmembers Lloyd Hilgart and Tracy Hinz Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Hayden Stensgard 1. Call to order 2. Roll Call 3. Block 34 Redevelopment Area Concept & Next Steps a. Context b. Next Steps 4. Retail Market Analysis Proposal Discussion 5. Adjournment EDA-HELD PROPERTY WORKSHOP I NOVEMBER 8, 2023 SUMMARY, EXCERPT BLOCK 34 a. 2040 Economic Development Goals: Downtown Vitality, Redevelopment & Reinvestment, Business Expansion & Retention b. Priority: HIGH (1-3 YEARS) c. Notes/Discussion- • Quarter to half block redevelopment is an option. • Evaluate opportunity to relocate one or both municipal wells, including cost and timeframe. • Two-story development design preferred (not 4+ stories). • Professional office uses preferred, residential not preferred. • Additional acquisition is an opportunity on the block. • Parking for existing multi -family will need to be a consideration with redevelopment. • Develop the perimeter, leaving the center for parking (and wells if not relocated); small structured parking something to look at in terms of design and cost. • More environmental work is likely needed d. Next Steps: • Continue to illustrate on available property maps. • Obtain quote for remaining TIF qualification and environmental work, complete. • Determine priority and eligibility for remediation grants. • Workshop with City on intended uses, parking and wells. • Consider amendment to the Downtown Small Area Plan for intended uses. • Zoning allows a mix of commercial and residential uses; block is split between Pine Street and Walnut & Cedar sub -districts. • Continue to monitor acquisition opportunity. e. Marketing/Development Strategies: • Develop a concept rendering of intended product, site plan incorporating wells and development parameters. 11Page EDA-HELD PROPERTY WORKSHOP I NOVEMBER 8, 2023 1. RIVER STREET a. 2040 Economic Development Goals: Depending on the use of the property both Downtown Vitality, Life -cycle Housing b. Priority: LOW (5-10 years) c. Notes/Discussion: • Hold for possible integration with a larger redevelopment project in the area, including townhomes similar to those to the north. • Proximity to the river is an advantage for higher amenity housing, less likely for affordable housing. • Location makes it ideal to support/work outward from downtown activities. • Located in Mississippi Wild Scenic and Recreational River District, which limits impervious and height, some uses. d. Next Steps: • Continue to illustrate on available property maps. • Monitor acquisition opportunity and private development interest. e. Marketing/Development Strategies: • Continue to illustrate on available property maps. 2. 349 WEST BROADWAY (FORMER FRED'S AUTO) a. 2040 Economic Development Goals: Downtown Vitality, Redevelopment & reinvestment, Opportunity Area b. Priority: LOW (5-10 years) c. Notes/Discussion: • Hold for potential combination with redevelopment/revitalization of adjacent former post office site. • EDA would consider additional land acquisition in the area depending on timing and price. • Would consider re -use of existing site depending on the use and surrounding revitalization opportunity. d. Next Steps: • Monitor acquisition opportunity and private development interest. • Concept development rendering; clearly depicting private properties (discussion with adjacent property owner). • EDA should define desired users, if any. (Refer to zoning ordinance.) e. Marketing/Development Strategies: • Continue to illustrate on available property maps. 1 1 P a g e 3. BLOCK 36 a. 2040 Economic Development Goals: Downtown Vitality, Promotion & Partnerships b. Priority: LOW (5-10 YEARS+) c. Notes/Discussion: • Utilize as a connection between existing parking and Broadway — small improvements on the parcel with that function as the focus. • Involve PARC in concept development. d. Next Steps: • Discuss priority for parklet improvements as part of current PAR Master Planning for specific concepts and initiatives. • Staff to research and advise EDA on funding opportunities and restrictions for improvements to/on property. • Budget for improvements in EDA CIP request. e. Marketing/Development Strategies: • Continue to illustrate on available property maps. 4. CEDAR STREET SITE a. 2040 Economic Development Goals: Downtown Vitality, Life -Cycle Housing, Redevelopment & Reinvestment b. Priority: HIGH (1-3 YEARS) c. Notes/Discussion: • Ideal use is two-story "brownstone" townhomes, fronting Broadway, deck over rear -load garages. • Market rate housing with affordable component preferred. • Continue to look for opportunities to manage traffic and safe access across both Hwy. 25 and CR75; look at alternative traffic control at River and Cedar. • More environmental review needed; review DEED, MPCA or other state assistance. • No additional acquisition is likely needed for successful development. • Zoning currently allows townhouses and multi -family units of 4-12 units by CUP in this sub -district of the CCD. d. Next Step • Obtain quote for additional environmental work, complete work. • Determine priority and eligibility for remediation grants. • Contract for debris and fence removal; understand snow storage. • Discuss desired housing program/projects at Housing Workshop in 2024. e. Marketing/Development Strategies: • Continue to illustrate on available property maps. • Design, construct and place "for sale" sign. • Develop a concept rendering of intended product and other development parameters. • Develop a list of possible developers and/or contractors. • Prepare RFR 2 1 P a g e S. BLOCK 34 a. 2040 Economic Development Goals: Downtown Vitality, Redevelopment & Reinvestment, Business Expansion & Retention b. Priority: HIGH (1-3 YEARS) c. Notes/Discussion: • Quarter to half block redevelopment is an option. • Evaluate opportunity to relocate one or both municipal wells, including cost and timeframe. • Two-story development design preferred (not 4+ stories). • Professional office uses preferred, residential not preferred. • Additional acquisition is an opportunity on the block. • Parking for existing multi -family will need to be a consideration with redevelopment. • Develop the perimeter, leaving the center for parking (and wells if not relocated); small structured parking something to look at in terms of design and cost. • More environmental work is likely needed d. Next Steps: • Continue to illustrate on available property maps. • Obtain quote for remaining TIF qualification and environmental work, complete. • Determine priority and eligibility for remediation grants. • Workshop with City on intended uses, parking and wells. • Consider amendment to the Downtown Small Area Plan for intended uses. • Zoning allows a mix of commercial and residential uses; block is split between Pine Street and Walnut & Cedar sub -districts. • Continue to monitor acquisition opportunity. e. Marketing/Development Strategies: • Develop a concept rendering of intended product, site plan incorporating wells and development parameters. 6. 4T" & PALM a. 2040 Economic Development Goals: Life -Cycle Housing, Tax Base Expansion b. Priority: MEDIUM (5 YEARS) c. Notes/Discussion: • Medium density housing preferred (not apartments). • Senior living opportunity. • Market rate with affordable housing component preferred. • Evaluate well relocation to this site and any development footprint impact. • Potential to utilize Palm Street ROW for access. • Owner -occupied preferred. d. Next Steps: • Work with Engineering/Public Works to understand well relocation. 3 1 P a g e • Discuss desired housing program/projects at Housing Workshop in 2024. e. Marketing/Development Strategies: • Continue to illustrate on available property maps. 7. RIVERWOOD BANK PROPERTY a. 2040 Economic Development Goals: Tax Base Expansion, Workforce Development, Business Retention & Expansion b. Priority: HIGH (1-3 YEARS) c. Notes/Discussion: • Commercial uses preferred, light industrial or campus opportunity. • Develop to take advantage of 1-94 visibility. • Be mindful about competing with private property owners; focus on diversification of business types. • No outdoor sales and display uses. d. Next Steps: • Consider re -guiding and rezoning property following acquisition. • Defer 7t" Street assessments to development. e. Marketing/Development Strategies: • Continue to illustrate on available property maps. • Consider developing a concept rendering of intended products and uses. • Install a for sale/development sign. 8. OTTER CREEK a. 2040 Economic Development Goals: Business Expansion & Retention, Workforce Development b. Priority: MEDIUM (3-5 YEARS) c. Notes/Discussion: • No additional expansion of park needed at this time given the existing supply; work to develop private industrial properties in the community. d. Next Steps: • Complete shovel -ready certification. Site visit is next task (likely spring 2024). e. Marketing/Development Strategies: • Implement Integrated Marketing & Communications Plan; prioritize actions from plan. • Review site selection marketing opportunities. • Partner with Xcel's site selection team to further marketing. 4 1 P a g e City of Monticello Downtown Small Area Plan h,__Icello, MN Prepared for: The City of Monticello ADOPTED BY CITY COUNCIL ON SEPTEMBER 25, 2017 Prepared by: Cuningham Group Architecture, Inc. Tangible Consulting Services CUNINGHAM _IgMonticello Background and Purpose The purpose of this Plan is to attract and direct investments on the core blocks of Downtown Monticello, MN over the next 10 years. The Plan advocates for solidifying Downtown as the heart of the community with a series of coordinated public and private investments. Together, these investments will create a human -scaled environment that encourages gathering, socializing, visiting and enjoying on a daily basis - throughout the year. The improvements outlined in this Plan aim to build on the unique qualities of Monticello to make the Downtown yet more attractive to those who have chosen to live and do business in the community. Specifically, the Plan seeks to promote Broadway Street as a storefront district with restaurants and specialty retail, celebrate the River for its recreational, connective and economic qualities, reinvigorate a downtown housing market with multiple, appropriately scaled, infill projects, and improve the experience of Pine Street for all users. The plan is ambitious, but achievable. Over time and upon completion, the plan would usher in up to 500 new units of downtown housing, new restaurants overlooking the river, and unique retail and services on Broadway. Momentum can be established in the next few years. Primary projects to be completed within five years include: redevelopment of Block 52, Walnut Street connection to River Street and infill housing on Walnut Street. Implementation of this Plan will create two legacies. The first will be a revitalized Downtown with an economy and attractions that benefit all residents of Monticello. Equally important, however to the physical improvements described above will be the legacy of new partnerships and civic cooperation that are essential to and will result from coordinated actions. The ideas set forth in this Plan come from the vested interest of the Monticello community through a broad public outreach effort. The realization of these ideas rely on a coordinated, cooperative, and active public sector working in tandem with an entrepreneurial private sector The result will be a lively Downtown for all in Monticello, a place that embodies both its history and future aspirations. Goals Improve Pine Street for All Users CNI Shift the Center of Town to Walnut and Broadway 7 111 �111 1®11 � 111'111 ■III ■ 1 1■111 1 " ■ 1 ■ 1 Encourage Small and Medium Scaled Investments "_X 4 err ��': art, -.��,• �:�-"� ��;:, p� �� _.�--.«�., es • . " .� ,•; � wry, � � ,•'- s�•'�'��,�i �, �, � - • . •. y - Become a River Town N Frameworks Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, they all fail. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. Framework: Open Space and Parks (Primary recommednations) • Improve Riverfront Parks to accommodate more programming and events • Redesign Walnut Street and River Street to allow for park extention during events • Convert vacant lots on Broadway to small pocket parks • Utilize River islands for additional natural park space • Create pedestrian refuges or enhanced building entry ways on the corners of blocks along Pine Street • Enliven open spaces with public art wherever possible Framework: Access and Circulation • Emphasize connectivity throughout the Core, with pedestrian and bike friendly streets, a complete sidewalk system, and connectivity to the in -town neighborhoods. • Promote a "complete streets" policy that balances the needs of all users in the Downtown. • Manage and improve the grid system to support connectivity and access throughout Downtown • Work with MnDOT to improve Pine Street for users of Downtown Monticello, including additional signals, maintaining the River Street signal and supporting an additional river crossing • Improve pedestrian crossings of Broadway at Walnut and Cedar to improve access to the Riverfront • Reconnect Walnut Street with River Street Framework: Development and Land Use • Riverfront District with destination restaurant and entertainment uses, as well as housing • Broadway District with shopfront retail and restaurant uses beneath housing and offices • In -town neighborhoods extend to Walnut and Cedar Street with new infill housing 2-4 stories (apartments and townhouses) Additional recomendations are included in the Framewoirks Section pages 25-32 Open Space and Parks Access and Circulation 0 r o� I Development and land Use :N Immediate Next Steps and Implementation 1. Improve the physical environment with streetscape, benches, programming, and art. 2. Bolster Broadway with a facade improvement program and retail recruitment. 3. Aggressively market development opportunities such as Block 52 and infill housing on Walnut and Cedar Street 4. Enact the appropriate policies, programs and incentives that enable the type of development described in the Plan. How is This Plan Related to the Embracing Downtown Plan and the Comprehensive Plan? In 2010, the City of Monticello completed the "Embracing Downtown Plan". The full area considered to be "Downtown Monticello"extends from Interstate I-94 to the Mississippi River, and generally from Cedar Street to Maple Street. The Embracing Downtown Plan was adopted as an appendix to the Comprehensive Plan. Changes in the retail marketplace overall, and more specifically market changes and reinvestments in downtown Monticello, have created a need to develop a new planning perspective for the core blocks of the downtown. This document therefore is an update to the 2008 Monticello Comprehensive Plan and to the Embracing Downtown Plan for the Downtown. This Plan will replace the Embracing Downtown plan as an appendix to the Comprehensive Plan. C City of Monticello Downtown Small Area Plan I Executive Summary Project Goals Shift the Center and Double Down on Broadway. Over time the travel and use patterns of Downtown have changed - altering the overall experience of downtown. Up until 1960, despite Broadway's designation as a State Highway (152) most travel was local. However, as the region grew, Monticello became a crossroads - thereby burdening Broadway and Pine Street with high volumes of through traffic and widened streets. Today, the Broadway / Pine Street intersection is one of the most traveled intersections in the region. Whereas that quality makes for great visibility, it also makes for a poor pedestrian experience and poor access to adjacent properties. Broadway, west of Pine Street, is relatively lightly traveled and unlike Broadwway east of Pine Street, it has retained its pedestrian scale. Furthermore, the City has developed successful parks at the end of Cedar Street and Walnut Street. Therefore, an opportunity exists to fully extend Walnut and Cedar Street down to the park and grow the downtown mercantile district towards the riverfront along Broadway. Improve the Pine Street Experience for Everyone. Whether passing through Monticello along Pine Street (TH 25), trying to cross Pine Street by foot, or going to a business along Pine Street, the experience of using Pine Street is generally a negative one for all users. The environment of Pine Street projects a negative image and it is a divider between the east and west side of the town. Whereas Pine Street will always be a heavily traveled street, it does not need to be a negative experience. The community can take it back, claiming it for more appropriate development types, making it safer, more pleasant, and attractive for all users. 111 �111 1®11 � 111'lll ■III ■ 1 1■III 1" ■ 1 ■ 1 Lots of Small Investments, a few medium ones and just one or two big ones. Monticello, despite it's growth, is proud to be a small town. Small towns develop charm and character through a series of small incremental investments that together add up to help a place become memorable and beloved. Simple investments such as new awnings, improved lighting and well maintained landscaping can make a big impression. Small buildings that fit on vacant parcels or otherwise underutilized land can happen quickly - adding vitality to a community. By promoting a high quantity of smaller investments (1/4 block and smaller) and medium scaled redevelopment projects (up to 1/2 block in scale), the Downtown will become more diverse, more lively, more responsive and adaptable to changes in the market place. A few medium scaled investments, warranted by a strong market or a strategic need, are important and valuable. But they should be carefully scaled and implemented so as to not disrupt the fragile fabric of the small town. Engage and love the riverfront. Go beyond the Swan. Great places have unique assets that differentiate them from others. Monticello has the Mississippi River. This defining feature can be further utilized to the benefit of Monticello residents and businesses. A riverfront that is well connected with blue and green trails, is publicly accessible and is activated throughout the day and the year can become a defining feature for the City and an important driver of economic activity. City of Monticello Small Area Plan I Goals and Objectives Block 34 BroQa�ystrPPtF Frontage And Ground Floor Uses Active (retail) uses are encouraged at Pine Street and Broadway. Residential frontages are encouraged on Cedar Street. The remainder of the block is flexible. Active Frontage Flexible Frontage (either Active or Residential) Block 34 (public ownership in blue) Most of the properties on Block 34 are 7jr- publicly owned. In addition, there are two 11 1 1 1 wells on the block that impact development. Redevelopment is further challenged by I I J I I I I lr limitations on property access created by medians on Broadway and Pine Street. The site is attractive for "outbound" retail and the plan recommends such a use to be located in the base of a multi use building on the corner Residential Frontage Active Frontage of Pine and Broadway. BroQa�QyStrPPt i S.FPPr Md+'SF F %i� `�O gthstrePtF � \ J j Setbacks, Pocket Parks & Open Space Buildings should define the perimeter of the block with a front facade zone between 5' and 15' of the front property line. The two wells on site have 50' setbacks and shou Id be incorporated into courtyards or parking areas. Building Setback """".... Well Setback I 4thstrP� BroQati'4 Q�'Cz' - d �- ystrpPtF � - Parking & Servicing Primary access to mid block parking should occur from Cedar Street and 4th Street. Surface Parking Access Way a's Options The two illustrations above show potential options for development on Block 34 - both adhering to the guidelines. The top illustration shows a development pattern that assumes the property on Cedar Street remains. City of Monticello Downtown Small Area Plan I Character Areas Frameworks: Purpose Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, others are impacted. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors to act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. Required Retail Frontage Small Retail Opportunities Commercial iiiiiiii■ Mixed -Use Multi -Family Housing Public Employment iiiiiiii■ V / /�/� V / /: •wad' �_ 'o.......• �'� • •�`• `\Pa r WO penSpace/Cemetery V Core Study Area 1 Frameworks: Land Use and Development Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the city. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail/restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas N PRIMARY GROWTH CITY-WIDE GROWTH AND DOWNTOWN Developing parcels within the City and the Downtown are the primary growth objectives of the 2040 Comprehensive Plan. Monticello will prioritize infill development within the existing municipal boundary and adjacent lands accessible by existing utility infrastructure, with a strong focus on the revitalization and redevelopment of the Downtown. SECONDARY GROWTH STUDY AREAS AND PORTIONS OF THE MOAA The secondary growth objectives of the 2040 Comprehensive Plan include directing growth into the Northwest Study Area, the East Bertram Study Area, specific parcels of land within the MOAA with a future planned land use designation, and other areas that align with City goals and policies. In particular, property outside the Study Areas but with frontage on County Highway (CSAH) 39, Highway 25 and other major transportation corridors, or properties already served by utilities are logical development opportunities and may be considered Primary Growth Areas. The City shall retain discretion when evaluating development proposals in the Secondary Growth Area that are consistent with the Goals and Vision of the Comprehensive Plan. Sunset Ponds Development TERTIARY GROWTH DEVELOPMENT RESERVE OF THE MOAA The third growth objective is to direct growth in the Development Reserve of the MOAA. Property within the MOAA will retain their existing uses until requests for annexation and development under the Orderly Annexation Agreement occurs, and transportation and utility improvements are installed. This includes utility studies to support cost effective and efficient infrastructure into the secondary and tertiary areas. It would be premature to change the land use designations of parcels at the time of this Comprehensive Plan given this Plan's long-term development horizon, and the potential need for future study and development impact assessment. As appropriate, the City may undertake or authorize development studies to respond to Comprehensive Plan amendment proposals or changing circumstances. Since these areas have a longer development horizon and have not been assigned a new future land use designation, they will continue to accommodate the existing single-family, rural residential and agricultural land uses that exist today. Any future change of land use will require a Comprehensive Plan amendment. Residential Development in the City of Monticello MONTICELLO 2040 VISION + PLAN 51 LAND USE, GROWTH AND ORDERLY ANNEXATION GOALS Listed below are the land use goals which were informed by the Community Vision. For the complete set of policies and strategies for the goals refer to the Implementation Chapter. GOAL 1: GROWTH AND CHANGE A City that prioritizes growth inward by concentrating development activities within the existing city boundaries and grows or develops into the Orderly Annexation Area only when development is proposed or planned contiguous to city boundaries, sensitive open space lands are protected and thoughtfully incorporated into the development pattern, and the land is serviced by appropriate utility and transportation systems. GOAL 2: COMPLETE NEIGHBORHOODS A City that prioritizes growth inward by concentrating development activities within the existing city boundaries and grows or develops into the Orderly Annexation Area only when development is proposed or planned contiguous to city boundaries, sensitive open space lands are protected and thoughtfully incorporated into the development pattern, and the land is serviced by appropriate utility and transportation systems. GOAL 3: SUCCESSFUL COMMERCIAL CORRIDORS AND CENTERS 171k 14 or Successful, vibrant commercial centers and corridors that can adapt over time and provide a place for shopping, services, civic activities, entertainment, and arts and culture. GOAL 4: REVITALIZED MIXED -USE DOWNTOWN A revitalized mixed -use downtown that embraces the River and serves as the heart of the community and focus of civic activity that is lively throughout the day and night consisting of a variety of dining, shopping, recreation, celebrating, gathering and living opportunities. GOAL 5: ACTIVE EMPLOYMENT CENTERS Monticello as a strong and growing regional employment center including a variety of economic sectors established as the preferred location for manufacturing, technology, research, and development, and home to a diverse mix of businesses and industries. An open space "frame" around and woven through Monticello, complemented by the Mississippi River, Bertram Chain of Lakes Regional Park, other local and regional parks, trails and recreation areas which together protect the City's natural resources, lakes, wetlands and woodlands, and provide opportunities for recreation, enhance visual beauty, and shape the City's character. MONTICELLO 2040 VISION + PLAN 95 Industrial and Employment Generating Areas The City uses three zoning districts to classify its industrial land based on use and locational aspects. Three new land use designations have been created based on these districts. The existing zoning district standards and their basic hierarchy is expected to remain, with development standards and use restrictions tailored to accommodate the particular needs of different industry types. However, the City may need to amend the zoning code to accommodate a range of new and modern industrial and employment generating uses, with consideration for any specific operational characteristics associated with such uses. The City should also continue to address potential impacts from industrial uses to nearby non -industrial uses. This is implemented through the zoning and the development review process, as well as the zoning ordinance performance standards that reduce the potential for land use conflicts. Strategies to reduce impacts related to vehicle storage, excessive dust and noise, landscaping and screening, and exterior lighting requirements can be included. Downtown Monticello The strategy for Downtown will rely on the City's Downtown Small Area Plan. Implementation of the Comprehensive Plan to achieve the vision of the Downtown will require a consistent approach between both planning documents. However, the Downtown Plan is the guiding document. Adjustments, as needed, to the existing zoning code will be one of the first steps. A significant catalytic project is needed to change perceptions of the Downtown. It is recommended that the City concentrate public investments in areas of the Downtown where a new sense of place can emerge. The City should actively promote and work towards a catalytic development project to help create a sense of place in the Downtown. This could include the Walnut Street corridor streetscape plan and connecting Walnut Street to River Street. New development projects, in particular Block 52, would make an exciting statement to the Mississippi riverfront and enliven this part of the Downtown. A new streetscape and new development along Walnut Street will reinforce the character of the corridor and connect the Downtown core near the riverfront to the Monticello Community Center, Cargill and other activity generators south of the Downtown. Mixed Neighborhoods & Commercial/Residential Flex Districts The Comprehensive Plan includes a new land use designation labeled Mixed Neighborhood. The purpose of this designation is to recognize areas of Monticello where a mix of residential housing types is the predominant use but could also have neighborhood serving commercial development that provides goods and services generally needed on a day-to-day basis. Commercial uses would typically be very small up to 1,000 square feet, while other areas near East Bertram designated MN may have larger neighborhoods which necessitate larger neighborhood centers. The City will need to amend the Zoning Code accordingly to accommodate such uses. Another new land use designation included in the Comprehensive Plan is referred to as Commercial/Residential Flex (CRF). The purpose of the Commercial/ Residential Flex designation is to give the City and property owners flexibility for future land use based on the economy and market demand. This designation allows a mix of flexible and compatible uses, such as commercial, office, retail and residential, in limited areas of the City on the same or adjacent properties. Development and improvement of properties designated as CRF will be implemented through the City's Planned Unit Development (PUD) zoning process, subject to review and approval of the City. 190 («(«(«(«(« IMPLEMENTATION GOALS, POLICIES AND STRATEGIES COMPREHENSIVE PLAN THEMES The goals, policies and actions related to overarching themes of sustainability, community health or sense of place are identified by an icon with the implementation chart displayed later in the chapter. LAND USE, GROWTH AND ORDERLY ANNEXATION The Land Use, Growth and Orderly Annexation Chapter presents the goals, policies, and strategies to achieve the land use vision. They are organized into six major topic areas discussed in further detail within Chapter 3 of the Comprehensive Plan. • Growth and Change • Complete Neighborhoods • Successful Commercial Centers and Corridors • Revitalized Mixed -Use Downtown • Active Employment Centers • A Preserved Natural Environment Collectively these policies and strategies provide the guidance needed to achieve Monticello's land use vision and development character. They provide the foundation to protect and strengthen neighborhoods, foster a revitalized downtown and active employment centers, promote and protect the River, and conserve the open spaces and natural areas valued so highly by residents. Since these policies were prepared in tandem with those addressing mobility and connectivity, they ensure that economic centers, neighborhoods, and valued natural areas and open space will remain accessible and connected. MOBILITY AND CONNECTIVITY The Mobility & Connectivity Chapter presents the goals, policies, and strategies to implement the vision and complete the mobility network. For organizational purposes, the goals policies and strategies are divided amongst five topics described within Chapter 4 of the Comprehensive Plan. • Planned Street Network • Complete Streets • New Interstate 94 Interchange • Downtown Transportation • Connectivity Exhibit 4.6 in Chapter 4 illustrates the strategies geographically. COMMUNITY CHARACTER, DESIGN AND THE ARTS Monticello will focus on its community design and arts goals related to the following topics discussed in further detail within Chapter 5 of the Comprehensive Plan. • Urban Design and Placemaking • Site Design and Architecture • Downtown Design • Design to Promote Economic Activity • Arts, Culture and Equity Source: Downtown Public Art, Source: City of Monticello 192 (« :«(«(« IMPLEMENTATION IMPLEMENTATION CHART: LAND USE, GROWTH AND ORDERLY ANNEXATION SHORT- I LONG- ONGOING THEME TERM TERM Policy 3.8: Commercial Uses and Public Health Manage commercial land uses and development in a way that contributes to the health and well-being of Monticello residents. Ensure commercial areas are Strategy 3.&1 - Promote food access by amending zoning regulations to allow retail and service based food uses in all commercial districts and some residential districts as appropriate. These uses may include food stores, markets, community gardens and farmers markets. O Strategy3.8.2- Require pedestrian and bike connected and accessible and connections in new commercial development. ensure the food system is protected, that no food deserts exist in the City, and all residents have equal access to food. Policy 4.1. Downtown Small Area Plan ("Downtown Plan") Utilize the Downtown Small Area Plan as the primary planning document that guides development and improvement in the Downtown. The components O of the Downtown Plan shall be acknowledged and referenced in terms of •' development and improvement priorities. These include the Downtown Goals, ' ' ' ' Frameworks and Implementation Actions which will continue to remain high priority for the City until achieved. These are listed below for reference. ((( • • • ••• • • • •••• Downtown Goals Downtown Frameworks Shift the Center and Double Down on Broadway. Open Space and Parks Improve the Pine Street Experience for Everyone. Access and Land Use Lots of Small Investments, a few medium ones and Development and Land Use just one or two big ones. • Engage and love the riverfront. Go beyond the Swan. Downtown Implementation • Improve the physical environment with streetscape, benches, programming, and art. • Bolster Broadway with a facade improvement program and retail recruitment. • Aggressively market development opportunities such as Block 52 and infill housing on Walnut and Cedar Streets. • Enact the appropriate policies, programs and incentives that enable the type of development described in the Plan. IMPLEMENTATION IMPLEMENTATION CHART: LAND USE, GROWTH AND ORDERLY ANNEXATION SHORT- I LONG- ONGOING THEME TERM TERM • • Downtown Policy 4.2: The Mississippi Rivermixed-Use 6 Ensure that any proposed development and improvements in the Downtown recognize the River as a key asset and embrace and incorporate views ((( of the River to the extent practicable. ))) Source: Monticello Downtown Small Area Plan, 2017 A v /e Existing Conditions: Buildings by use Community and Public Employment A Commercial Housing Source: Monticello Downtown Small Area Plan, 2017 Policy4.3. Downtown Mixed -Use Strategy 4.3.1 - Amend zoning regulations Apply Downtown Mixed -Use as appropriately to include the Downtown the primary land use designation Mixed -Use designations, including to help support and advance appropriate standards for height, setbacks, the revitalization of downtown FAR/density and allowed uses. Monticello consistent with the Downtown Small Area Plan. A broad mix of uses, traditional architecture, well -designed public environment and connections to the River and nearby neighborhoods will help achieve this goal. MONTICELLO 2040 VISION + PLAN 207 IMPLEMENTATION CHART: LAND USE, GROWTH AND ORDERLY ANNEXATION SHORT- I LONG- ONGOING THEME TERM TERM Policy4.3: Downtown Mixed -Use Strategy4.3.2- Focus investment and redevelopment efforts on Block 52 and surrounding parcels. Recruit a high -profile tenant or other large activity generator in a premier building space overlooking the River and anchoring the Downtown. Strategy4.3.3- Implement improvements to the downtown streetscape, including the Walnut Corridor Streetscape Plans, to complement the goal for a new O and revitalized downtown. All downtown branding and signage should be consistent. Strategy4.3.4- Coordinate with MnDOT as necessary to implement traffic management measures and streetscape design techniques to reduce truck speeds through Downtown, improve the pedestrian experience ) } and incorporate design techniques that emphasize safety, access and mobility throughout the Downtown. Policy 5.1. Land Supply Strategy5.1.1- Retain and plan for and Employment Growth development of land zoned for Employment _ • • ' • • • • • • - • • • • Maintain an industrial land supply Campus and Light Industrial Park that is sufficient to meet long-term needs for light • • . • • that is adequate and suitable industrial uses, manufacturing, production ) - • • • . • - • for the continued growth of the and assembly, and other uses which support - • - - • • • • City's core industries, Including continued diversity in tax base and create • - • • • manufacturing, logistics/distribution, living -wage employment. • • • - - • • - and emerging technologies. • • - • • - The City should capitalize on its Strategy5.1.2 - Evaluate industrial land use • • • • proximity to Interstate 94, regional opportunity for warehousing/distribution as a growing industrial sector, balancing impacts -- . • .. •• transportation facilities, and p on transportation corridors and land -to- .. . -. - . .. educated and skilled work force to employment ratios. i- • .. create opportunities for job growth. IMPLEMENTATION BLOCK 34 Af 0.12 a 0.25 ac-r, 0.25 ac. 0.09 0.25 ac. ;, - �► .19 ac. rt _ 0. 2 0.25 a 3 ac. 01 a 0.5 ac. 1 in = 84 Ft city EDA O Private T 1 CITY OF Monticello January 2024 Map Powered By Datafi WS%l 10 I/ ho tL 1 S no • V pRop R ot, Oti, ' SFTe�CA- 11 I 50' WELL \ SETBACK \ 0 44. qr / IF ` /O 50' WELL _ � SETBACK I Property ID Property Owner \ / A CITY-EDA \ / B CITY-EDA C CITY-EDA D CIVIL ENG SITE DESIGN, LLC r E MONTICELLO LIQUOR . F CITY G CITY H RASMUSSEN (CAFE) I HAMMER (APARTMENTS) 1 CENTRAL MN REALTY LTD K CITY L CITY M CITY TOTAL Fwse PROD. NO. 01494-M o z �M O J �L) W _U Um H Cal O m W Developable Area (ac)-notincl setbacks, well Right of Way Existing Parcel Area (ac) radius Needed (ac) ' 0.1247 0 0.0989 m 0.1247 0.1046 0.0052 s > 3 0.1247 0.1146 0.0026 N a 0.0907 0.0833 0.0019 0.1893 0.1281 0.0108 ° 5 0.0941 0.0247 0 0.2495 0.1607 0.0083 x 0.0183 0.0109 0.002 0.2312 0.2501 0.2181 0.1556 0.0035 0.0562 0.2501 0.2501 0 0.2501 0.2414 0 12 0.5001 0.3472 0 2.4976 1.9392 0.1894 BLOCK 34 EXHIBIT A )1494-560\Cad\Exhibits\1494-56 EXH 2.dwg, Layoutl Response to Questions Related to the Retail Market Analysis Proposal May 2, 2024 1. What other communities or cities has Jim McComb completed this format or Retail Market Analysis in over the past 5 to 7 years? How many cities have contracted with Jim McComb for this type of study in the past 5 to 10 years? Can we get names? Can we get a copy of a or the study(ies)? Response McComb Group has conducted retail market research for 83 downtowns and community shopping areas similar to Downtown Monticello, and 100 shopping centers including regional malls, lifestyle and specialty centers, and neighborhood shopping centers. A list of these studies are contained on the attached list. The demand for retail market reports ended due to the Great Recession and Covid-19 impacts on the retail industry. Recently, retail conditions have stabilized as retail sales have improved. We have conducted two retail studies in Cambridge. The first study resulted in development of Kohl's and Lowe's stores and conversion and expansion of County Market to a Cub store. During the same period, Walmart relocated to an expanded store. Following completion of the second report, Fleet Farm purchased the vacant Lowe's store and remodeled and expanded it. (Lowe's was not able to compete with Menards.) In Wayzata, our analysis identified demand for additional retail stores in Downtown Wayzata. Subsequently, Presbyterian Homes acquired and demolished a failing shopping center and constructed a mixed -use development containing multi -level senior apartments with retail on the street level. McComb Group marketed the retail component to several developers of high end retail centers. One developer expressed interest in the project, but could not come to terms with Presbyterian Homes. Due to the passage of time, city staff familiar with these projects are no longer employed by either city. Electronic copies of the most recent retail market analyses for Cambridge and Downtown Wayzata are attached. 2. Have any communities -Cities contracted with Jim McComb recently for completion of Phase 1 of the Retail Market Analysis proposal? If so, please identify. Can we get names? Response See above. 3. Please define or describe further...... the Trade Area Analysis Driving Tour. What is the expected coverage area of the driving tour? How is this integral to the data compilation and presentation about the Monticello retail market? Response Driving tour coverage area is to be determined during field work. It is expected to include areas outside Monticello. An old adage says: a picture saves a thousand words. This is certainly true in identifying the characteristics of the Monticello trade area. Retail analysts no longer drive trade areas to view the nature of residential development. The driving tour is designed to show them what they would see if they took the time to drive the trade area. We have found that this is an effective way to demonstrate trade area features in a manner that connects trade area characteristics to the statistics contained in the report. 4. Please respond to comfort of interfacing -interacting with the public or identified cohorts during the survey -interview task activities. Is Jim McComb's assistant anticipated to be involved in the public facing survey task work activities? Response The proposal contains a task to interview local realtors which will be conducted by Jim McComb. Other interfaces are anticipated to include client presentations which we understand may be open to the public. We would be happy to participate in any other meetings that are desired by the client. Distribution of the final report is to be determined by the client. 5. If certain work tasks are eliminated from the Phase I work activities, can the core remaining activities of Phase 1 be a useful stand-alone market analysis document? Are there specific tasks that are vital to the final report? Response The work tasks selected for the Phase One report were selected to provide information to make a strong impression on potential retail tenants. The objective of this report is to get it submitted to the retail stores' real estate committee. It is the real estate committee that recommends new store locations to management. They are the gatekeepers for new stores. It is to Monticello's benefit to provide all of the information to the real estate committee that is relevant for supporting a decision to locate a store in Monticello. The report can also be used as a stand alone document where the information will be useful. 6. Explain how Phases 2, 3, and 4 would work as potential follow-on steps to Phase 1 activities? Response Phase Two is the beginning of the marketing effort for Downtown Monticello. The objective is to hire a member of the retail brokerage community to represent the City of Monticello with tenant representatives of potential retailers. To accomplish that objective, a job description will be needed to identify potential retail brokers that can represent Monticello to the retail community. Marketing representatives will need to be interviewed and engaged to move forward. Their input will also be needed to finalize the marketing brochure and incorporate information that they think is important. Phase Three is designed to focus the tenant solicitation process. The question is: Does Monticello want to limit the promotional activities solely to properties owned by the EDA or is the EDA willing to consider letting other property owners participate in the program? 2 Phase Four is designed to finalize the marketing brochure and include any collateral information available from the City. The next step would be to contact retail store representatives. There are several brokerage firms that represent retail tenants in the Twin Cities area. They need to be informed of the many attributes of the Monticello market area that they may not be aware of. They may know of retailers that are considering locating in the Twin Cities area or that should consider Monticello and would be able to forward the marketing information to the retailer's broker. Hopefully this would then result in the information being sent to the retailer and forwarded to the real estate committee to begin the process of evaluating Monticello for a store location. The retailer's local representative is the key to getting the information in front of the real estate committee. Phase Four are the steps necessary to finalize the marketing plan, prepare information for distribution to the local tenant representatives and attractive their interest to Monticello. This will be the first step in implementing the marketing plan. 7. Is there a conflict of interest with using Susan who works with the City of Becker with your efforts? Response The only information we would need about Becker would be public information readily available to anyone and our observations of retail area. 8. How will you address the needs of present (and potentially vacant) and future retail areas/developments? Specifically Wet&th Street, Block 34 & 52. Points at Cedar, Stellis Development Response We will evaluate the EDA properties and their likely potential development. Development in these areas should reflect the needs of the retailers that are interested in Monticello. This will be evaluated on a case by case basis to meet the retailer's needs. 9. How will the information gathered be used? Response See above. 10. What parallels do you see in what you propose with the current development at 108th Street in Blaine to the Stellis proposal on the south edge of Monticello? Response The most successful developments are when complementary uses are located as part of a larger development. This will be examined on a case by case basis. The EDA and/or City can facilitate the development process to achieve the best possible development. I MCCOMB GROUP REAL ESTATE EXPERIENCE RETAIL MARKET ANALYSIS Regional Malls Pheasant Lane Mall — Nashua, NH Northpark Mall — Davenport, IA Eastridge Mall — San Jose, CA Moreno Valley Mall — Moreno Valley, CA Greenwood Mall — Bowling Green, KY Southdale Center — Edina, MN Rosedale Center — Roseville, MN Maplewood Mall — Maplewood, MN Willowbrook Mall — Houston, TX 591 & Lexington — New York, NY Gaviidae Commons/Saks — Minneapolis, MN Brookdale Center — Brooklyn Center, MN Shopping Center — Scottsdale, AZ Eden Prairie Shopping Center — Eden Prairie, MN Town Center at Cobb — Atlanta, GA Burnsville Center — Burnsville, MN Lifestyle and Specialty Centers Luminaire-Houston — Houston, TX Block E — Minneapolis, MN Las Olas Riverfront — Fort Lauderdale, FL Bayside Market Place — Miami, FL Water Street Pavilion — Flint, MI Calhoun Square — Minneapolis, MN St. Anthony Main — Minneapolis, MN Specialty Retail Center — Madison, WI Berkey Gay Building — Grand Rapids, MI Wayzata Bay Center — Wayzata, MN Time Square — Rochester, MN Plaza VII — Minneapolis, MN The Pavilion — Buffalo, NY The Avenue — St. Louis Park, MN Market Place — Madison, WI North Coast Harbor — Cleveland, OH Neighborhood and Community Shopping Centers Southbridge Shopping Center — Shakopee, MN Brighton Village — New Brighton, MN Eagle Valley Commons — Woodbury, MN Power Center — Apple Valley, MN Southdale Square — Minneapolis, MN Eagan Town Center — Eagan, MN Maplewood Square — Rochester, MN Waterfront East — Otsego, MN Valley West Shopping Center - Bloomington, MN City Center — Rogers, MN Oxboro Shopping Center — Bloomington, MN Marketplace West — St. Petersburg, FL Ford Mall Evaluation — St. Paul, MN CONSUMER RESEARCH AND MERCHANDISING PLANS Northpark Mall — Davenport, IA Moreno Valley Mall — Moreno Valley, CA North Pier Terminal — Chicago, IL Gaviidae Common — Minneapolis, MN City Center — Minneapolis, MN Galtier Plaza — St. Paul, MN Plaza VII — Minneapolis, MN Mayfair — Sioux City, IA Nicollet Mall Shopping District — Minneapolis, MN Town Center at Cobb — Atlanta, GA Rego Park — Queens, NY Super Regional Mall — Omaha, NE Holyoke Mall — Holyoke, MA Valley View Mall — LaCrosse, WI White Marsh Mall — Baltimore, MD Richland Mall — Jamestown, PA Northshore Mall — Peabody, MA Barton Creek Square Mall — Austin, TX City Center — Minneapolis, MN Town Square — St. Paul, MN Gaviidae Commons/Neiman Marcus — Minneapolis, MN Prairie Hills Mall — Dickinson, ND Regional Mall — Williston, ND The Quadrant — Chanhassen, MN Gwinnett Place — Atlanta, GA Centerplace Galleria — Rochester, MN Retail Center — Roseville, MN Mayfair — Sioux City, IA Fontaine Square — Rochester, MN Conservatory on Nicollet-Minneapolis, MN Block 40 — St. Paul, MN Galtier Plaza — St. Paul, MN Bandana Square — St. Paul, MN West End — St. Louis Park, MN Hidden Harbor Shops — Naples, FL Albion Market — St. Paul, MN The Crossings — Cedar Rapids, IA The Pageant on Hennepin — Minneapolis, MN North Pier Terminal — Chicago, IL Kaleidoscope — Des Moines, IA Vadnais Square — Vadnais Heights, MN Power Center — Golden Valley, MN Minnesota Valley Mall — Shakopee, MN Northwest Business Campus -Plymouth, MN Shopping Center — Eagan, MN Signal Hills Shopping Center — St. Paul, MN Zachary Square — Maple Grove, MN Rosedale Marketplace — Roseville, MN Oakdale Marketplace — Oakdale, MN Neighborhood Center — North Oaks, MN Neighborhood Center — Flandreau, SD Shopping Center — Stillwater, MN Eastridge Mall — San Jose, CA Greenwood Mall — Bowling Green, KY Pavilion — Buffalo, NY Water Street Pavilion — Flint, MI The Avenue — St. Louis Park, MN Town Square — St. Paul, MN St. Anthony Main — Minneapolis, MN Market Place — Madison, WI Centerplace Galleria — Rochester, MN Gwinnett Place — Atlanta, GA DOWNTOWN RETAIL MARKET ANALYSIS Downtown Owatonna — Owatonna, MN Nicollet Mall Revitalization - Minneapolis, MN Downtown Willmar - Willmar, MN Downtown Hastings - Hastings, MN Center Avenue Plaza - Moorhead, MN Downtown St. Peter - St. Peter, MN Downtown Development Potential - Sartell, MN Retail Development Potential - Shakopee, MN Downtown Strategic Plan - Sauk Rapids, MN Block 40 Retail Development - St. Paul, MN Waseca Retail Market Analysis - Waseca, MN Downtown Market Study - Farmington, MN Downtown Retail Potential - Little Falls, MN Downtown Retail Potential - St. Joseph, MN Downtown Market Study - Belle Plaine, MN Downtown Retail Potential - Victoria, MN Downtown Retail Potential - Prior Lake, MN Downtown Retail Potential - New Brighton, MN Retail Development Potential - Woodbury, MN Downtown White Bear Lake - White Bear Lake, MN Downtown Market Analysis - Columbia Heights, MN Downtown Mixed -Use Development - Plymouth, MN Commercial Development Potential - St. Michael, MN Market and Development Study - Albuquerque, NM Cambridge Retail Market Analysis - Cambridge, MN Hennepin Avenue Redevelopment Strategy -Minneapolis, MN Downtown Market Study, Centerville, MN Retail Development Potential — Hanover, MN Retail Market Demand — Menomonie, WI Sparks Street — Ottowa, Canada Downtown Marketing and Validated Parking Study — Minneapolis, MN COMMERCIAL AREA REVITALIZATION Retail Potential Hiawatha LRT Corridor — Minneapolis, MN Selby Avenue Revitalization Study - St. Paul, MN Elliot Park Neighborhood - Minneapolis, MN Chicago and Lake - Minneapolis, MN Nicollet and Lake Commercial Area - Minneapolis, MN Hennepin and Lake Commercial Area - Minneapolis, MN 66th and Cedar - Richfield, MN Selby and Snelling - St. Paul, MN Selby and Western - St. Paul, MN Nicollet and Grant Commercial Area - Minneapolis, MN Downtown Rochester - Rochester, MN Downtown Crystal - Crystal, MN Downtown Chaska - Chaska, MN Downtown Maple Grove -Maple Grove, MN Downtown Shopping Center - Biwabik, MN Ramsey Town Center — Ramsey, MN City Center Mall - Grand Forks, ND Fontaine Square - Rochester, MN Downtown Chanhassen - Chanhassen, MN Downtown Retail Potential - Buffalo, MN Downtown Retail Potential - Duluth, MN Downtown Market Study - Wayzata, MN Downtown Retail Potential - Franklin, WI Downtown Market Study - Newport, MN Downtown Retail Analysis - Newton, IA Downtown Market Study - Osakis, MN Downtown Market Study - Pipestone, MN Downtown Market Study - Savage, MN Downtown Market Study - Sioux Falls, SD Department Store Market Analysis - St. Paul, MN Central Avenue Redevelopment Strategy - Albuquerque, NM Downtown Columbia Heights - Columbia Heights, MN Commercial Development Potential - Brooklyn Park, MN Retail Impacts of the Skyway System - Minneapolis, MN Hennepin Avenue Retail Development - Minneapolis, MN Downtown Crookston Revitalization Strategy -Crookston, MN Retail Development Potential — Columbus, MN Embracing Downtown Monticello, Monticello, MN Downtown Market Analysis — Plymouth, MN Downtown Market Analysis — Bismarck, ND 66' & Penn Avenue — Richfield, MN Lyndale Avenue & 76t' Street — Richfield, MN Montclair Shopping Area — Oakland, CA 66' & Lyndale Avenue — Richfield, MN Central Avenue — Columbia Heights, MN Lexington Avenue & Highway 96 — New Brighton, MN Lowry Avenue Retail Potential — Minneapolis, MN Retail Development Potential — Brooklyn Park, MN Retail Development Potential — Cottage Grove, MN Retail Development Potential - Fitchburg, WI 000 WCOMB GROUP' Ltd. O011 R E A L E S T A T E A N D ODO RETAIL CONSULTANTS March 3, 2024 Mr. Steve Johnson, President Economic Development Authority CITY OF MONTICELLO 505 Walnut Street, Suite 1 Monticello, Minnesota 55362 Dear Mr. Johnson: In response to your request, we have prepared a work program to conduct market analysis to identify retail market demand for retail stores, restaurants, and services in Monticello. Following completion of these tasks, we will prepare recommendations for a marketing program focused on presenting the facts that the retailers consider important in selecting retail sites. DELIVERABLES: Deliverables from this engagement are expected to include, but are not limited to the following items. I. PHASE ONE: RETAIL MARKET REPORT A. Retail Market Analysis I . Site analysis and retail tenant mix 2. EDA site visits 3. Identification of competitive shopping areas and tenant mix 4. Customer Spotting Survey 5. Evaluation of trade area population and other demographic characteristics 6. Trade area driving tour 7. Monticello employment trends and large employers 8. Realtor interviews 9. Monticello retail sales trends 10. Retail sales potential by tenant type 11. Voids analysis to identify tenants that are under represented or void in Monticello 12. Findings and recommendations 13. Draft market research report, marketing brochure, and EDA site descriptions II. PHASE TWO: MARKETING REPRESENTATION A. Prepare Draft Marketing Representative Job Description B. Identify Marketing Representatives C. Engage Marketing Representative D. Identify Retailer Tenant Representatives 826 Lake Ridge Drive • St. Paul, Minnesota 55129 • (612) 339-7000 Mr. Steve Johnson March 3, 2024 Page 2 III. PHASE THREE: PRIVATE SECTOR PARTICIPATION Monticello has several privately owned sites that are suitable for retail development. Should these owners be offered the opportunity to participate in the marketing plan? If so, on what basis? IV. PHASE FOUR: MARKETING PLAN A. Finalize Marketing Plan B. Finalize Marketing Brochure and Collateral Information C. Implement Marketing Plan Work products described above in Phase One have easily identifiable work scopes, which provide the basis for a fixed cost proposal. The work scopes for Phases Two, Three, and Four will become apparent at the end of Phase One. As a result, only the budget for Phase One is included in this proposal. MARKET RESEARCH WORK PROGRAM The work program outlined below is designed to provide the information necessary to complete the deliverables described for Phase One. ♦ Monticello Retail Area Evaluation Monticello's retail areas will be visited to identify existing retail stores, restaurants, and services to determine Monticello's tenant mix. Individual businesses will be identified and categorized by type. Other factors to be considered include traffic counts on I-94, Highway 25, and Broadway Street. ♦ EDA Property Evaluation Properties owned by the EDA will be visited to identify site characteristics and potential uses based on tenant criteria. Potential tenant types and site information will be prepared for each site. ♦ Competitive Evaluation Competitive shopping areas will be identified and visited to determine the tenant mix. Competitive retail communities are expected to include Clearwater, Buffalo, Albertville, St. Michael, Big Lake, Elk River, and Rogers. Retail tenant mix in each of these communities will be identified for comparison with Monticello. ♦ Customer Spotting Survey Retail businesses in downtown Monticello will be asked to participate in a survey of their customers to determine where they live and work and why they shopped in that business. As contemplated, employees of each store will conduct a brief survey as customers pay for their goods and services. The budget assumes 10 to 15 business participants. In a previous engagement, the Monticello Downtown Business Association agreed to distribute survey forms and instructions to participating businesses, and to collect completed survey instruments. Each business participant will be provided with survey results for their Mr. Steve Johnson March 3, 2024 Page 3 business. This information will be used to help identify the primary trade area for Monticello retailers and the amount of inflow patronage. ♦ Trade Area Analysis The trade area for Monticello will be delineated based on arterial road networks and McComb Group experience. The trade area delineation will take into consideration physical barriers and competitive shopping areas in surrounding communities. The economy of the trade area will be analyzed to identify and quantify those factors that generate support for retail, restaurant, and service establishments. Demographic characteristics include, but are not limited to: employment, population, households, and household income for 2000, 2010, 2023, and 2028. Retail purchasing power of trade area households will be identified for target years of 2024 and 2029. Our proprietary purchasing power model includes over 120 types of business establishments. A list of these business establishments is attached. ♦ Trade Area Driving Tour Homes that are representative of the Monticello trade area will be photographed and mapped on a driving tour to portray the mix of residential areas served by Monticello retailers. These will be presented in a form similar to the Rochester report (copy attached). ♦ Monticello Employment Trends Wage and salary employment trends in Monticello will be evaluated to identify employment by category and trade area penetration. Large employers will be identified to demonstrate the variety of businesses located in Monticello. ♦ Realtor Interviews Realtors active in Monticello will be interviewed to obtain their perceptions of market support and demand for retail space in Monticello. Realtor observations about current and future market conditions will also be obtained. ♦ Retail Sales Trends Retail sales trends for Monticello will be analyzed utilizing information from the Census of Retail Trade for 2007, 2012, and 2017, and updated with Minnesota Sales Tax information to determine 2023 retail sales. Retail sales by store type will be compared with purchasing power to determine current market share. ♦ Retail Sales Potential by Tenant Type Retail sales potential in Monticello will be estimated taking into consideration competitive impacts, trade area demographics, trade area purchasing power, and estimated market share. Based on this analysis and current trends, future retail, restaurants, and service sales potential will be estimated by business type. These retail sales estimates will be compared with estimated retail sales by category in Monticello to determine those businesses with sufficient retail sales for profitable operation in Monticello. Estimates of retail, restaurant, and service establishments supported by retail sales potential will be prepared for target years of 2024 and 2030. Mr. Steve Johnson March 3, 2024 Page 4 ♦ Voids Analysis and Retail Store Demand Monticello's retail tenant mix will be compared with results of retail sales potential to identify categories that are under represented or not located in Monticello. ♦ Findings and Recommendations Findings and recommendations will be prepared for client review and discussion. ♦ Draft Reports Draft reports will be prepared for the market research report, marketing brochure, and format for FDA sites. MEETINGS Four meetings are planned during the course of the evaluation to keep the client informed of our progress and findings. These meetings include the following: ♦ Start -Up Meeting will be held at the beginning of the engagement to finalize research objectives and obtain client provided information. ♦ Progress Meeting will be held with the client to discuss preliminary results of the market analysis, retail sales potential, and retail store demand. ♦ Progress Meeting will be held with the client to discuss preliminary findings and recommendations, results of site visits, and potential marketing brochure subjects. ♦ Report Meeting will be held to assess present results of our research and recommendations with the client. This meeting will cover all aspects of the research program. The budget provides for four meetings as described above. Additional meetings will be billed at our normal hourly rates plus expenses. SCHEDULE The market research described in Phase One of this proposal can be completed within a three- month period following receipt of the signed engagement letter and retainer. QUALIFICATIONS AND EXPERIENCE McComb Group, Ltd. is a full -service retail and real estate consulting firm specializing in market research and financial feasibility. The firm has extensive experience in the real estate industry and has conducted market research, financial feasibility, and development consulting for all types of real estate developments. McComb Group, Ltd. has a team that is qualified to conduct the research described in this proposal. McComb Group's professional staff associated with this engagement includes the following: ♦ James B. McComb, President, founded the predecessor of McComb Group in 1974 following six years as a member of the corporate staff with Dayton Hudson Corporation. He is experienced with all types of real estate development and has conducted market research and financial feasibility for shopping centers, retail stores, office buildings, Mr. Steve Johnson March 3, 2024 Page 5 business parks, multi -family, and mixed -use developments. The firm's approach to market analysis and financial feasibility has undergone continuous development and refinement. Mr. McComb has directed and participated in all the firm's research activities for over 45 years. ♦ Susan Nache, Associate, has over 25 years of experience and performs market research, demographic analysis, and consumer research tasks. Ms. Nache conducts consumer research analysis and cross -tabulation on McComb Group's survey processing software; and utilizes McComb Group software programs for financial feasibility and statistical analysis. Mr. McComb will be responsible for managing and directing the overall research program and will participate directly in findings and conclusions. Individual work tasks will be assigned to personnel within the firm based on qualifications and experience. BUDGET The budget for the work program and work products described in this proposal is shown below. Professional Services Budget Monticello Retail Area Evaluation $ 2,400 EDA Property Evaluation 800 Competitive Evaluation 7,300 Customer Spotting Survey 3,200 Trade Area Analysis 2,200 Trade Area Driving Tour 2,100 Monticello Employment Trends 1,800 Realtor Interviews 400 Retail Sales Trends 2,100 Retail Sales Potential by Tenant Type 1,600 Voids Analysis and Retail Store Demand 400 Findings and Recommendations 800 Draft Reports 2,100 Report Preparation 2,100 Meetings 1,600 Total Professional Services $ 30,900 Expenses (Estimated Mileage and Travel $ 1,250 Demographics 750 Computer and Software 500 Report Production 2,000 Reproduction 300 Miscellaneous 150 Total Expenses $ 4,950 TOTAL BUDGET S15,850 Mr. Steve Johnson March 3, 2024 Page 6 The professional fees for the services outlined in this proposal total $30,900 and will be performed at a price not -to -exceed that amount. Expenses, estimated at $4,950, are to be reimbursed based on actual cost. The budget is based on the amount of time required to perform the work tasks and our normal hourly billing rates of $200 for principals, $150 for senior associates, $125 for associates, and $754100 for consultants. Company policy requires a retainer of approximately one -quarter the estimated budget for the project or $9,000. The retainer will be applied to the final invoice as a credit for billing of professional services and expenses. Invoices for professional services and expenses will be rendered at mid -month and month -end as our work progresses. Standard billing terms are net ten days. A finance charge of 1.5 percent will be charged on all unpaid balances outstanding more than 30 days. REPORT PURPOSE This proposal was prepared with the understanding that the results of our work will be used by the client to establish a marketing plan to attract retail stores to Monticello. Our report will be prepared for that purpose and will be subject to the following qualifications: ♦ Our analysis will not ascertain the legal and regulatory requirements applicable to this project, including zoning, other state, and local government regulations, permits, and licenses. No effort will be made to determine the possible effect on the proposed project of present or future federal, state, or local legislation, or any environmental or ecological matters. ♦ Our report and analysis will be based on estimates, assumptions and other information developed from research of the market, knowledge of the industry and discussions with the client. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur; therefore, actual results achieved will vary from the analysis. ♦ Our analysis will not evaluate management's effectiveness or be responsible for future marketing efforts and other management actions upon which actual results are dependent. ♦ Our report will be intended solely for the purpose described above and should not be used for any other purpose without our prior written permission. Permission for other use of the report will be granted only upon meeting company standards for the proposed use. These qualifications will be included in our final report. If the report is used for purposes other than specified above, we reserve the right to review the materials for proper use of our work. ACCEPTANCE PROCEDURES To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us together with your check for the retainer as authorization to proceed with this engagement. We appreciate the opportunity to submit this proposal and look forward to hearing from you soon. If you have any questions concerning the proposal, please call me at (612) 339-7000. Mr. Steve Johnson March 3, 2024 Page 7 Accepted By: Company: Title: Date: McComb Group, Ltd. 6 �bM641W James B. McComb President