EDA Agenda - 06/12/2024 (Workshop)AGENDA
WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, June 12, 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 Concept & Next Steps
a. Review and Discussion of Block 34 Redevelopment Goals, Concept,
Constraints,
b. Review of Next Steps Options
4. Retail Market Analysis Proposal Discussion
5. Adjournment
Mo. NTICELL
MARKETING 1
D..EVELOPMEN
City of Monticello
McComb Group,
DD MCCONM GROL�Ltd
R E A L E S T A T E A N D
❑OD RETAIL CON S U LTAN TS
Monticello Marketing and
Development
0-
The objective of this engagement is to conduct
market research as the first phase of a marketing
program to attract retailers to Monticello. This
report will focus on the following:
Characteristics that support the following types of
developments:
W Retail
W Food Service
Personal and Business Services
Medical Services
Monticello Marketing and
Development
2. Market research tasks will include:
Site analysis and retail tenant mix
V E®A site visits
Identification of competitive shopping areas and ret;
tenant mix
w Customer spotting survey (optional)
W Evaluation of trade area population and other
demographic characteristics
Trade area home photos
Monticello employment trends and large employers
Monticello Marketing and
Development
2. Market Research Tasks (cont.)
0 Realtor interviews
a Monticello retail sales trends
0 Retail sales potential by tenant type
Voids analysis to identify tenants that are under
represented or void in Monticello
W Findings and recommendations
Work products resulting from the above tasks will
include draft market research report, marketing
brochure, and EDA site descriptions,
Monticello Marketing and
Development
Ph-
0-
The marketing analysis objective is to convey to
tenants and/or developers targeted information
on Monticello that is unlikely to be obtained from
an Internet search.
The market research will contain important,
additional facts about Monticello providing a well-
rounded picture of the Monticello economic base
that provides support for retail development.
Site Marketing Considerations
Wk-
t-
Monticello has several parcels that are suitable for
development. Important information must be
compiled for marketing these sites to tenants
and/or developers.
To be considered for a store location, the City
needs sites and locations that meet the businesses
site location criteria.
►- Monticello must have its own development
objectives in terms of financial, development
quality, and image. These must be site specific.
The City should have cost estimates for these
objectives.
To achieve a successful development requires
negotiations between the City and the developer
and/or tenant to create development that is
financially and physically feasible for both parties.
To illustrate the type of information needed to identify the
cost of site improvements for a City owned parcel, Block 34
was selected as an example.
The impact of providing parking for two two-story buildings is
depicted on Exhibit 1. This exhibit illustrates a working
drawing that contains a hypothetical basement parking plan
based on McComb Group experience. This plan provides
illustrations of a basement level parking to illustrate
potential challenges presented by underground parking.
Block 34 Insights
Block 34 is likely to be one of the most complex parcels to be
developed. Options for one-story building with underground
parking have functional and economic costs that must be
understood prior to completing a development agreement.
To illustrate some of the information needed to identify the cost
of site improvements for a City owned parcel, Block 34 was
selected as an example.
Some of the impacts of providing underground parking for one
or two-story buildings is depicted on Exhibit 1. This exhibit
illustrates a partial sketch that contains a hypothetical
basement parking plan based on McComb Group experience.
This plan provides a partial functional concept for a basement
level parking to illustrate potential challenges presented by
underground parking fora 10,000 square foot building.
Further study will be needed to integrate parking and vertical
pedestrian circulation into the plan.
Block 34 Insights
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Monticello Commercial Development
I.
Goal - Produce highest and Best Use
A.
Recover Land Acquisition Costs (if possible)
B.
Increase Tax Base
C.
Enhance Access
1. Pedestrian
2. Vehicular
D.
Diversity Commercial Activity
E.
Coordinate with Residential (mixed use)
II.
Balance
Parking vs Intensity of Use
A.
Current Codes - 3.5 to 4 spaces per 1,000 Sq. Ft.
B.
Mixed Use of Parking
III.
Phased Development
A.
Current Possibilities- 10K office building
B.
Future Opportunities
IV.
Assets
A.
Location
B.
Traffic
C.
Site Control
V.
Current Limitations
A.
Wells
B.
Access
C.
Heavy Traffic
D.
Other
1. Non -Owned Buildings
2. Tenants in City Owned Buildings
VI.
Site Planning
A.
Maximize Value
B.
Parking & Access directly affects property value (Income Potential)
VII.
The Numbers
A.
Parking Spaces vs Intensity of Use (i.e. Current codes
B.
Tax Increment vs. land cost recapture
1. Block 34 example
a. $3M invested
b. Valuation needed for TIF recovery N$17M +or-
2. Types of Development fit both City's and developer's needs
VIII.
Does
the City have the Time & Resources to Accomplish this?
IX.
The
Approach
A.
Proactive vs. Reactive
1. City now in Reactive mode
B.
Rifle vs. Shot Gun Approach
1. Identify Developments that best fit Defined goals
X.
The
Tools and Target
A.
Current Market Analysis
B.
Identify and obtain access to Key Decision makes
McComb Slides Here
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January 5, 2024
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Jim Thares
From: Charles M. Christensen <CChristensen@christensengroup.com>
Sent: Monday, June 3, 2024 5:30 PM
To: Jim Thares; Jake P. Olinger; Angela Schumann
Subject: RE: City of Monticello - Block 34 Redevelopment efforts and processes
All —
See below in red for our responses to the questions in advance of the EDA workshop.
Let me know if you have any questions in the meantime.
Thanks,
Charlie
Charlie Christensen
President & CFO I Christensen Group Insurance
CGII
Direct 952-653-1038
Mobile 952-484-8904
Email cchristensen@christensengroup.com
Office 800-923-4088 Fax 952-653-1 100
NOWUNU AL1SS "Now
9855 W 78th St, Ste 100
t man BEST PLACES %e *'it,
Eden Prairie, MN 55344 2022 BEST PLACES TO WORK ` TO WORK
.. E
christensengroup.com
This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom
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From: Jim Thares <Jim.Thares@ci.monticello.mn.us>
Sent: Friday, May 31, 2024 5:16 PM
To: Jake P. Olinger<JOiinger@christensengroup.com>; Charles M. Christensen <CChristensen@christensengroup.com>
Cc: Angela Schumann <Angela.Schumann@ci.monticello.mn.us>
Subject: FW: City of Monticello - Block 34 Redevelopment efforts and processes
Hi Jake and Charlie. I just want to remind you that the bullet point items below ideally would be presented and
reviewed (with you in attendance -involved) in an EDA workshop meeting on June 12, 2024, at 4:15 p.m. +/-
1
. The idea is to give your firma first opportunity to propose a workable redevelopment -development concept in
Block 34. The list of items below looks kind of daunting at first glance though I think it may only take a couple of
hours to put together; maybe even slightly less than that. I left several voice mail messages for you today as well
(sorry to be pestering you so consistently). If you have any questions, please feel free to call meat any time
(cell phone = 612-219-8357 or on the office line = 763-271-3254). Best regards to you both.
Jim Thares
Economic Development Manager
City of Monticello
763-271-3254
www.ci.monticello.mn.us
Email correspondence to and from the City of Monticello government offices is subject to the
Minnesota Government Data Practices Act and may be disclosed to third parties.
From: Jim Thares
Sent: Wednesday, May 29, 2024 5:53 PM
To: Jake P. Olinger<JOlinger@christensengroup.com>; Charles M. Christensen<CChristensen@christensengroup.com>
Cc: Angela Schumann <Angela.Schumann@ci.monticello.mn.us>
Subject: FW: City of Monticello - Block 34 Redevelopment efforts and processes
Hi Jake and Charles (Charlie). I am reaching out to follow up with what we believe is the best path forward for
meaningful and achievable Block 34 redevelopment efforts. [FYI - this afternoon I left two voicemail messages for
you Jake (one on your cell phone and one on your office line)]. Asa prudent defined next step, we generally feel
that it is best to utilize an RFQ (Request for Qualifications) process because it is simpler and less expensive. The
information gained from that step will lead to a follow-on next step of specific ideas/proposals. First though, we
would ask that Christensen Group considering submitting a hybrid (RFQ-RFI) development proposal packet. This
step is a little bit more involved for your team now.... and....... in advance of the issuance of any formal RFQ
outreach to a larger group of developers. It is because you are a local firm and the EDA asked staff reach out to
Local firms to explore the potential to put a meaningful and economical proposal together for a portion of Block
34. Specifically, here is what we are asking you to consider submitting to City staff to present to the EDA if you are
still interested in pursuing redevelopment in Block 34.
1. Name of the Responder -Proposer; Firm name and executives; contact information; address, phone
number, email address, etc.
Christensen Group, Inc. - HQ Address - 9855 W. 78th Street, Suite 100, Eden Prairie, MN 55344
Key Executives:
• Bruce Christensen, CEO
• Charles Christensen, CFO
• Samantha Olinger, COO
• Jacob Olinger, President of Property & Casualty
• Robert Schmitz, President of Employee Benefits
• Ross Dahlof, President of Christensen Group Financial, LLC
• Tyler Simmons, Executive Vice President
• Rick Redding, Executive Vice President
Contacts for the project are Charles Christensen - 952-653-1038 - cchristensen@christensengroup.com and
Jacob Olinger - 763-271-6162 - jolinger@christensen roup.com
2. A brief description of the proposal -uses and estimated number of employees that would be located
at the development site.
New Christensen Group, Inc. Monticello office up to 10,000 SF on the southwest corner of the lot. Building
would accommodate up to 40 employees so adequate dedicated parking will need to meet that headcount
requirement with spots for guests.
3. A close approximation of the total square footage of your development proposal (office building),
e.g., 10, 000 sq. ft. facility, or 12, 000 sq. ft. Building, etc.
Up to 10,000 SF building.
4. The estimated investment or cost of the new development.
$3M in hard costs.
5. A diagram of the building layout (footprint) and/or the dimensions of the proposed facility placed on
the southwest corner of Block 34 (that is the most logical site for a smaller proposal). You can use the
aerial photo that is attached and you can enlarge it if need be. Please read the balance of these
requested items related to potential condo opportunities.
We don't have the requisite software to do to -scale drawings and would need to discuss footprint with an
architect prior to finalizing.
6. The openness to a two-story proposal or. ... a statement that only a one-story proposal is willing to be
considered in your proposal. Please offer explanation as this helps the EDA understand the
reasoning behind your preferences or the limitations.
We don't believe a two story, 20,000 SF proposal would leave enough parking to meet our needs. If instead
you were looking for two 5,000 SF floors, that would be disruptive culturally to split the office in two.
% Parking needs; estimate how many parking stalls will be needed and whether an underground
parking structure -garage could be an option. If underground is not an option at all, please offer
explanation as this helps the EDA understand the reasoning behind your preferences or the
limitations.
Underground parking would be cost -prohibitive so we are proposing surface parking only. Based on a 10,000
SF building, we would need at least 40 spaces.
8. Offer a statement as to your openness or willingness to be part of a larger development wherein your
particular office footprint (10,000 sq. ft. or 12,000 sq. ft.) would be a condominium, meaning your
footprint would be solely owned by your Ownership Group, though it would be a component of a
larger building project. That could be a more efficient way to proceed in the overall redevelopment
process for Block 34 and achieve many of the EDA's objectives. Full disclosure- there are a
couple of developers who would be open to working on a larger facility that would incorporate your
office into the redevelopment project as a condo arrangement.
We would not be interested in being a tenant in a mixed use building. We would worry about parking for our
employees and guests. It's also not on brand for us to be an occupant in a multifamily facility.
9. Your preferred development proposal timeline; when do you need to start or when can you start and
when do you plan... or need to finish and occupy a new facility.
We are flexible on the start date. Our current lease expires 9/1/2026 so that would be our deadline to take
occupancy.
10. A statement as to preliminary need for financial assistance, e.g., land write down, site development
assistance, etc.
Based on our hard cost estimate and limited market value for office users, we would need a land write down,
TIF, and site work assistance. In the absence of these financial tools, this would not be economically viable
and we'd be better off renewing our existing lease.
11. Other.... anything else that you feel will help the EDA understand your goals, needs, what you bring to
the Block (think uniqueness), etc. that will help in arriving at the best end outcome in Block 34
redevelopment efforts.
If you look at our other office projects, I believe you'll see that we've done a great job of creating quality
space and aesthetic. We think there's an opportunity to expand our employee base in Monticello but need
the right space at the right price to justify expansion. I believe that block has potential as a non-residential
use center with a fresh look. We'd love to be the anchor building and user to the renewed site.
12. Willingness to meet with the EDA in the next week to discuss your proposal details (we would need to
know this by early next week - [06-03 or 06-04]). We will schedule a meeting if you are willing.
3
Jake Olinger wilt be in attendance.
Please call me if you have any questions about any of the information in this email. Thank you very much for your
interest in Block 34 and your time. Best regards to you and your Christensen Group team.
Office = 763-271-3254
Cell = 612-219-8357
Finally, please confirm receipt of this email. Thank you!
Jim Thares
Economic Development Manager
City of Monticello
763-271-3254
www.ci.monticello. mn.us
Email correspondence to and from the City of Monticello government offices is subject to the
Minnesota Government Data Practices Act and may be disclosed to third parties.
From: Jim Thares
Sent: Thursday, April 25, 2024 6:00 PM
To: Jake P. Olinger<JOlinger@christensengroup.com>; Charles M. Christensen <CChristensen@christensengroup.com>
Cc: Angela Schumann <Angela.Schumann@ci.monticello.mn.us>
Subject: RE: City of Monti
Hi Jake and Charles (Charlie). I wanted to get back to you to update you on the progress -process of the Block 34
redevelopment listening sessions -concept discussions process. The EDA will be holding a workshop on May 8,
2024, to discuss -review the interviews-discussion/concept sharing feedback provided by the developers and
businesses that met with City staff over the past 75 days. Staff will be back in touch with you following the May 8
meeting with next steps and/or more information to share with your team. In the meantime, if you have any
questions, or would like more information about Block 34, please feel free to reach out to Angela Schumann,
Community Development Director, or me. Best regards to you both.
Jim Thares
Economic Development Manager
City of Monticello
763-271-3254
www.ci.monticello.mn.us
Email correspondence to and from the City of Monticello government offices is subject to the
Minnesota Government Data Practices Act and may be disclosed to third parties,
From: Jake P. Olinger <JOlinger@christensengroup.com>
Sent: Tuesday, April 9, 2024 1:54 PM
To: Jim Thares <Jim.Thares@ci.monticello.mn.us>; Charles M. Christensen <CChristensen@christensengroup.com>
Subject: City of Monti
Thanks for the time today.
Jake Olinger
President, Property & Casualty
Christensen Group Insurance
Cell: 763-300-6578