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.
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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
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Encourage Small and Medium Scaled
Investments
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Become a River Town
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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
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Development and land Use
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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.
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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.
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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
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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
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`\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
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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