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EDA Agenda - 07/10/2024AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 10, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Academy Room 4:30 p.m. Review of Block 34 Request for Information 5:15 p.m. General Fund Budget Review and Discussion and Fagade Forgivable Loan Funding Review Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Hayden Stensgard, Sarah Rathlisberger 1. General Business A. Call to Order B. Roll Call 6:00 p.m. 2. Consideration of Additional Agenda Items 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Workshop Meeting Minutes — May 8, 2024 C. Consideration of Approving Regular Meeting Minutes— May 8, 2024 D. Consideration of CY 2025 Initiative Foundation Funding Contribution 4. Public Hearing A. PUBLIC HEARING Continued — Facade Improvement Forgivable Loan for Jon and Lucy Murray's Dance Studio at 155 West Broadway Street and Sleep Concepts at 149 West Broadway Street 5. Regular Agenda A. Consideration of Adding Additional Funding to the Facade Improvement Forgivable Loan Program B. Consideration of $5,000 Sponsorship to 2024 Chalk Fest Event C. Consideration of Update of Rustech Brewing Business Operations Status and GMEF Loan Update 6. Other Business A. Consideration of Economic Development Manager's Report 7. Adjournment EDA Agenda: 7/10/2024 3A. Consideration of Approving Payment of Bills Prepared by: Meeting Date: ❑ Regular Agenda Item Community & Economic Development 7/10/2024 ® Consent Agenda Item Administrative Assistant Reviewed by: Approved by: N/A Economic Development Manager REFERENCE AND BACKGROUND: Accounts Payable summary statements listing bills submitted during the previous month are included for review. ALTERNATIVE ACTIONS: 1. Motion to approve payment of bills through June 2024. 2. Motion to approve payment of bills through June 2024 with changes as directed by the EDA. STAFF RECOMMENDATION: Staff recommend approval of Alternative 1. SUPPORTING DATA: • Accounts Payable Summary Statements for June, 2024. Accounts Payable Transactions by Account User: julie.cheney Printed: 06/17/2024 - 3:14PM Batch: 00202.06.2024 Account Number Vendor Description e onticeflo GL Date Check No Amount PO No 213-46301-431990 REGENTS OF UNIVERSITY OF M Economic Contribution Study BCOL ( 06/11/2024 128575 3,000.00 Vendor Subtotal: 3,000.00 Subtotal for Fund: 213 3,000.00 Report Total: 3,000.00 AP -Transactions by Account (06/17/2024 - 3:14 PM) Page 1 Accounts Payable Transactions by Account User: julie.cheney Printed: 06/18/2024 - 3:59PM Batch: 00203.06.2024 Account Number Vendor Description CITY OF • onticeflo GL Date Check No Amount PO No e 213-00000-157010 PREFERRED TITLE INC Purchase 118 Broadway E -Closing of 06/25/2024 128637 663,872.42 Vendor Subtotal: 663,872.42 213-00000-220110 KENNEDY AND GRAVEN CHAR] TIF 1-42 - Headwaters Apartments TIl 06/25/2024 128623 862.50 Vendor Subtotal: 862.50 213-00000-220110 NORTHLAND SECURITIES INC TIF 1-42 - TIF 1-42 Modification #2 06/25/2024 128631 3,562.50 Vendor Subtotal: 3,562.50 213-46301-430400 KENNEDY AND GRAVEN CHAR] 2019 UMC TIF - April 2024 06/25/2024 128623 135.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] Acquisition 118 Broadway E - April 21 06/25/2024 128623 1,120.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] General EDA - April 2024 06/25/2024 128623 509.00 213-46301-430400 KENNEDY AND GRAVEN CHAR] Excelsior Tool GMEF Loan - April 20 06/25/2024 128623 1,027.00 Vendor Subtotal: 2,791.00 213-46301-431990 RIVERWOOD BANK Financial Analysis & Findings - Block 06/25/2024 128638 960.00 Vendor Subtotal: 960.00 213-46301-431993 WSB & ASSOCIATES INC 2024 Economic Development Service! 06/25/2024 0 1,789.00 Vendor Subtotal: 1,789.00 213-46301-434990 AE2 - ADVANCED ELEMENTS, IP IMCP Templates - May 2024 06/25/2024 128598 4,411.25 AP -Transactions by Account (06/18/2024 - 3:59 PM) Page 1 Account Number Vendor Description GL Date Check No Vendor Subtotal: 213-46522-431990 NORTHLAND SECURITIES INC 2023 Annual TIF Reporting 06/25/2024 Vendor Subtotal: 213-46601-181500 BLOCK 52 HOLDINGS LLC Disbursement GMEF Loan Proceeds 06/25/2024 Vendor Subtotal: Subtotal for Fund: 213 Report Total: 128631 128606 Amount PO No 4,411.25 1,200.00 1,200.00 292,667.00 292,667.00 972,115.67 972,115.67 AP -Transactions by Account (06/18/2024 - 3:59 PM) Page 2 Accounts Payable Transactions by Account User: julie.cheney Printed: 06/17/2024 - 3:13PM Batch: 00201.06.2024 Account Number Vendor Description e onticeflo GL Date Check No Amount PO No 213-46301-433100 US BANK CORPORATE PMT SYS EDAM - EDAM Summer Conference 06/15/2024 0 365.00 213-46301-433100 US BANK CORPORATE PMT SYS WCEDP - 2024 Legislative Update Ev 06/15/2024 0 25.00 Vendor Subtotal: 390.00 213-46301-438200 CITY OF MONTICELLO 7256-004 - 130 Brdwy- Stormwtr 06/15/2024 0 31.50 213-46301-438200 CITY OF MONTICELLO 7256-015 - 216 Pine St - EDA 06/15/2024 0 52.61 Vendor Subtotal: 84.11 213-46301-443990 US BANK CORPORATE PMT SYS MONTICELLO CHAMBER OF CON 06/15/2024 0 20.00 Vendor Subtotal: 20.00 Subtotal for Fund: 213 494.11 Report Total: 494.11 AP -Transactions by Account (06/17/2024 - 3:13 PM) Page 1 Accounts Payable Transactions by Account User: julie.cheney Printed: 07/01/2024 - 4:13PM Batch: 00204.06.2024 Account Number Vendor Description CITY OF • Onticeflo GL Date Check No Amount PO No e 213-46301-431991 DEMVI LLC Parking Lot Maintenance - June 2024 06/30/2024 0 213.86 Vendor Subtotal: 213.86 213-46301-438100 CENTERPOINT ENERGY 12045691-8 - 216 Pine St 06/30/2024 0 51.39 Vendor Subtotal: 51.39 213-46301-438100 XCEL ENERGY 14698960-5 - 216 Pine St - Former Fir 06/30/2024 0 24.31 Vendor Subtotal: 24.31 Subtotal for Fund: 213 289.56 Report Total: 289.56 The preceding list of bills totaling $975,899.34 was approved for payment. Date: 7/10/24 Approved by: Hali Sittig - Treasurer AP -Transactions by Account (07/01/2024 - 4:13 PM) Page 1 MINUTES WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 8, 2024 — 4:30 p.m. Academy Room, Monticello Community Center Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, 011ie Koropchak- White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: Vice President Jon Morphew Staff Present: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Hayden Stensgard 1. Call to Order President Steve Johnson called the workshop meeting to order at 4:32 p.m. 2. Roll Call President Johnson called the roll. 3. Block 34 Redevelopment Area Concept & Next Steps a. Context b. Next Steps Community Development Director Angela Schumann provided an overview of the agenda item to the EDA and the public. City staff met with multiple development groups over the last month regarding the eventual redevelopment of Block 34 downtown, to understand better what the development environment currently is for commercial, residential, and mixed -use. Through the information discussed and gathered in those meetings, it is clear that the development groups generally believe that Block 34 could be redeveloped as a whole block, half block, and even as small as quarter block sections which may include both commercial and residential. The groups did note that the Broadway Street and Highway 25 corner is the most important piece of the block for redevelopment and should be addressed with the utmost attention when the City receives inquiries on it. Staff recommended the EDA move forward with gathering interest in redeveloping the block, but to be patient to best achieve those development goals the EDA discussed at their November 8, 2023, workshop meeting. Staff also noted that there has been interest from local businesses that want to be involved in the eventual redevelopment and that the EDA has indicated they would like to work with them if feasible. Treasurer Hali Sittig joined the meeting at 4:50 p.m. Councilmember Tracy Hinz joined the meeting at 5:08 p.m. After discussion, the EDA, in consensus, directed staff to develop a Request for Information (RFI) packet for redevelopment of all or a portion of Block 34 to get a better sense of developer interest and overall capabilities. Staff responded and said they would develop the content of the RFI over the next coming weeks based on the EDA's discussions and bring it back to the EDA for review. No action was taken on the item. 4. Retail Market Analvsis Proposal Discussion Mr. Thares provided an overview of the agenda item to the EDA and the public. At a previous meeting, staff and the EDA prepared questions to be answered by the McComb Group, who previously presented a proposal to complete a retail market analysis for the EDA and the City of Monticello. Jim McComb, of the McComb Group, responded to those questions and submitted them back to the EDA for review. Mr. McComb also included references for previous analyses completed for other communities around Minnesota. The EDA reviewed these responses with City staff. The EDA expressed interest in reviewing sample reports that the McComb Group has done in recent years to better understand the material that may result from the analysis. It is desirable to have additional review of some of the referenced analyses previously completed. Commissioners agreed that this information would be reviewed before the EDA would make a decision on accepting the McComb Group's proposal. No action was taken on the item. 5. Adjournment TRACY HINZ MOVED TO ADJOURN THE WORKSHOP MEETING OF THE MONTICELLO EDA. HALI SITTIG SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 6:04 P.M. MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 08, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Academy Room 4:30 p.m. Review and Discussion of Block 34 Area Redevelopment Concept Meetings and Next Steps 5:30 p.m. Follow-up Discussion of Retail Market Analysis Proposal Question Responses Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:08 p.m. B. Roll Call 6:00 p.m. Mr. Johnson called the roll. 2. Consideration of Additional Agenda Items Executive Director Jim Thares noted that an additional item was provided to the EDA and the public at the beginning of the meeting. That item was to be considered as part of the agenda as item 6B. 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Anorovine Regular Meetine Minutes — March 27. 2024 C. Consideration of Approving Joint Workshop Meeting Minutes — April 10, 2024 D. Consideration of Approving Regular Meeting Minutes — April 10, 2024 E. Consideration of Resolution 2024-08 Requesting the City Council call a Public Hearing for the proposed Modification of Tax Increment Financing District 1-42 CHC-Headwaters Develoament 22 Unit Villa Twin Home Proposal F. Consideration Approving a Certificate of Completion for Wiha Tools, Inc. 75,000 square foot facility expansion in connection with TIF District 1-46 G. Consideration of Authorizing the Wright County Sherriff's Office to use Lot land Lot 2, Block 1, 7th Addition, as a K-9 Training site TRACY HINZ MOVED TO APPROVE THE CONSENT AGENDA. OLLIE KOROPCHAK- WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0. 4. Public Hearing A. PUBLIC HEARING —Consideration of adopting Resolution 2024-09 Extending UMC Business Subsidv Aereement in connection with Purchase and Development Contract (TIF Dist. 1-41) related to 2022 Facility Expansion Executive Director Jim Thares presented an overview of the item, UMC IS requesting to extend the purchase and development contract and specifically the Business Subsidy and TIF agreement. State Statue allows the extension to April 5, 2025. Per State Statue UMC was required to add 43 jobs by April 5, 2024. As of April 19, 2024, they were short of this number by 10. They are currently hiring, having 20+ openings. Staff are confident they reach the 43 new jobs by the extended time of April 5, 2025 . Rick Barger noted that he was impressed that UMC was able to hire that number of people during this challenging hiring climate. President Steve Johnson opened the public hearing asking for public comment. There were no comments from the public as no public was in attendance, Mr. Johson closed the Public Hearing. :IeA[.Y��IiCel► [�I�1 ��It� e • • �I �I[�L�►[e>r7:1miffl- K e : li•[e)� Z[ .: e : CWk SECONDED THE MOTION TO APPROVE CLOSING THE PUBLIC HEARING. MOTION CARRIED UNANIMOUSLY, 7-0. LLOYD HILGART MOVED TO ADOPT RESOLUTION 2024-09 AMENDING THE UMC PURCHASE AND DEVELOPMENT CONTRACT (TIF DISTRICT 1-41) BUSINESS SUBSIDYTERMS TO EXTEND THE JOB CREATION PERFORMANCE TIMELINE FROM APRIL 5, 2024, TO APRIL 5, 2025. TRACY HINZ SECONDED. MOTION CARRIED UNANIMOUSLY, 7-0. B. PUBLIC HEARING — Consideration of authorizine a Greater Minnesota Enterprise Fund Loan and a related Business Subsidy Agreement in the amount of $250,000 with Excelsior Tool Company, Inc. in connection with the purchase of property and relocation of equipment Mr. Thares informed the EDA that Excelsior Tool is pausing the pursuit of its relocation and property purchase due to problems reaching a viable property transaction with the building owner. The EDAwill not need to open the Public Hearing as the proposed Business Subsidy funding arrangement is paused for an indeterminate amount of time. Mr. Thares will reach out to Excelsior Tool for further conversation of viable sites or building options and update the EDA as needed. Steve Johnson clarified the Public Hearing is not tabled; it is cancelled. If Excelsior Tool decides to move forward a new PH will be called. 5. Regular Agenda A. Consideration of Adootine Resolution 2024-10 authorizing a Purchase Agreement with Civil Engineering Site Design, LLC for the acquisition of 118 Broadway East in the amount of $665,000 and authorizing a Property Management and Lease Agreement for 118 Broadway East with Civil Engineering Site Design, LLC Mr. Thares presented the item, asking for consideration of a purchase agreement with Civil Engineering Site Design for 118 Broadway East in Block 34 and a lease agreement with the seller allowing Civil Engineering Site Design to remain in that location after the sale. The EDA held a closed meeting on 12/13/2023 to discuss the proposed property purchase and by consensus suggested staff move forward with negotiations of purchase terms at the purchase price at $665,000. This purchase amount also includes relocation benefits to the seller. Mr. Thares estimated that closing costs are estimated to be $4,300. This property is a critical parcel in Block 34 as it is currently between two properties which are owned by the EDA. Acquiring this site will make future redevelopment of Block 34 significantly more viable in a variety of options. The earnest money is proposed at $5,000, and the closing is targeted for June 14, 2024. Mr. Thares reviewed the terms of the purchase agreement and lease agreement which were attached to the report. Mr. Hilgart inquired if the EDA is responsible for maintenance costs. Mr. Thares clarified that the tenant is responsible for damage and the EDA is responsible for basic wear and tear of property. Mr. Hilgart inquired if the EDA could terminate the lease should a developer wish to develop the property. Mr. Thares clarified that the EDA could terminate the lease at any time, giving a 90-day notice; the plan is to allow CESD to relocate to the old DMV building on the same block. Mr. Johnson said the current lease says we can terminate the lease only for tenant default or damages. Mr. Morphew concurs. Mr. Hilgart said it is reasonable to give a 60-day notice so the EDA can take occupancy. Mr. Thares recommended the lease be adjusted and the EDA could approve. Jon Morphew questioned the terms of expiration covers the current site at 118 Broadway East. The expiration of the lease agreement for 119 3rd Street is not defined in the Purchase Agreement. Section 9 c. should be made clearer as to the lease follows termination of lease on property 118 Broadway East and entering into 119 3rd Street lease. Mr. Barger clarified that the 10-year lease agreement covers 10 years between the 2 properties, 118 Broadway Eats and 119 3rd Street, and this should be made clearer in the purchase agreement. Ms. Hinz would like the termination by the landlord to be adjusted from 90 days to 60 days written notice clarifying the there be no reason for termination in Section 18 a. of the EDA lease. Angela Schumann, Community Development Director, went through the exhibit pages and clarified what each was and that the exhibits were not inserted for this packet. Ms. Schumann listed the clarifications the EDA would like changed in the Purchase Agreement. • Section 9 — Clarify there are 2 leases • Sections 9 c. Clarify Expiration date relating to 118 Broadway E, City's lease at 119 3rd Street is executed when 118 Broadway E is terminated. • Clarify that the 10-year period timeline of lease for both buildings begins at closing. • Review all portions of 119 3rd Street East lease specifying the amount if the property to be leased. Ms. Schumann listed the clarification the EDA would like changed in the EDA Leaseback • Section 18 — Allow the termination of the lease be their discretion of the EDA and change to a 60-day notice. Mr. Johnson wanted clarification if the business stops being active, when the City would terminate the lease. TRACY HINZ MOVED TO TABLE 5A TO BE CONTINUED AT THE MAY 26TH MEETING TO REVIEW DOCUMENTS AS AMENDED, NOT TO DELAY CLOSING. MOTION SECONDED BY JON MORPHEW. MOTION CARRIED UNANIMOUSLY, 7-0. B. Consideration of adopting Resolution 2024-11 Authorizing an Interfund Loan for Advance of Certain Costs in Connection with a Tax Increment Financing District in Block 34 related to the acquisition of the 118 Broadway East Mr. Johnson suggested this item be tabled until May26 and contingent on approval of 5a. OLLIE KOROPCHAK-WHITE MOVED TO TABLE THIS ITEM UNTIL THE MAY 26T" MEETING. SECONDED BY RICK BARGER. MOTION CARRIED UNNIMOUSLY. 6. Other Business A. Consideration of Economic Development Manager's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. B. Leasing ODPT Mr. Thares introduced the item. Matt Leonard, Public Works Director/City Engineer approached Mr. Thares of the idea of Michels Construction leasing a lot in Otter Creek Business Park (OCBP) for use as a temporary Concrete Batch Plant. The batch plant is being activated to service constructions materials -supplies for the 1-94 Gap Improvement Project. The Monticello OCBP sites are near the 1-94 Gap project. It is estimated to be three years as well as ballpark per month lease price ($10,000 or likely less). Mr. Hilgart shared concern that this may disrupt other businesses located in Otter Creek Business Park or along Chelsea Road. Ms. Hinz asked if there would be any environmental impact. Mr. Barger is concerned about the traffic impact. He inquired if the City owned property closer to the freeway. Ms. Schumann confirmed there is property closer. The EDA instructed staff to get clarification on the listed concerns. 7. Adjournment TRACY HINZ MOVED TO ADJOURN THE MEETING. SECONDED BY HALI SITTIG. MOTION CARRIED UNANIMOUSLY, 7-0. EDA Agenda: 07/10/2024 3D. Consideration of authorizing a donation to the Initiative Foundation in the amount of $2,390 from the EDA 2025 General Fund budget Prepared by: Meeting Date: ❑ Regular Agenda Item Economic Development Manager 07/10/2024 ® Consent Agenda Item Reviewed by: Approved by: Community Development Director Community Development Director ACTION REQUESTED Motion to authorize a 2025 donation to the Initiative Foundation in the amount of $2,390 from the EDA 2025 General Fund budget. REFERENCE AND BACKGROUND The EDA is asked to authorize its 2025 annual donation to the Initiative Foundation in support of Community and Economic Development programs in the amount of $2,390 from its General Fund budget. The proposed 2025 donation amount is the same as the EDA's 2023 and 2024 contribution to the Initiative Foundation. The Initiative Foundation works with cities to provide favorable opportunities to advance community and economic prosperity and quality of life for its residents. From its inception in 1986 through early 2024, the Initiative Foundation has provided a total of $4,701,000 in grants to support non-profit organizations and $5,600,000 in business loans to secure 1,241 jobs in Wright County. Per the attached letter and information flyer, for every local donor dollar, the Initiative Foundation has returned $12.86 back to Wright County communities in grants, loans, and scholarships. Budget Impact: The budget impact to the EDA's General Fund budget related to the 2025 annual donation to the Initiative Foundation is $2,390. II. Staff Workload Impact: The staff impact related to consideration of the 2025 annual donation to the Initiative Foundation is minimal. III. Comprehensive Plan Impact: The Vision adopted as part of the Monticello 2040 Vision + Plan outlines a wide range of Economic Development Goals. In order to accomplish this wide-ranging set of goals, it further envisions collaboration with various regional partners to accomplish the identified strategies and objectives. EDA Agenda: 07/10/2024 STAFF RECOMMENDATION Staff recommend the EDA authorize a 2025 annual donation to the Initiative Foundation in support of its community and economic development programs from the EDA's 2025 General Fund Budget. Supporting the Initiative Foundation with a donation is a small reinvestment in the City of Monticello as the Initiative Funding typically returns $12.86 back to Wright County communities in the form of grants or small business loans from every donor dollar it receives. SUPPORTING DATA A. Initiative Foundation letter requesting 2025 donation and Information flyer regarding economic impacts in Wright County Initiative FOUNDATION June 7, 2024 Jim Thares, Economic Development Manager City of Monticello 505 Walnut St Ste 1 Monticello, MN 55362-8822 Dear Mayor Hilgart, Economic Development Board and Mr. Thares, For 38 years, the Initiative Foundation has built strong local economies, vibrant communities, and a lasting culture of generosity in Central Minnesota. Our grantmaking, lending, training and programs support local planning and development, drive small business and nonprofit growth, empower new entrepreneurs, address workforce shortages, and increase access to quality childcare. In Wright County, the Initiative Foundation has provided a total of $4,680,889 in grants to support nonprofit organizations and local government projects, as well as $5,643,429 in business loans to secure 1241 quality jobs. The Foundation's community and economic development services impacts nearly every city in Central Minnesota by providing essential resources to those that live, work, shop and play across the region. Financial contributions from cities and counties greatly increase our capacity to support these economic and community development projects. In addition, your support also positions us to seek and deliver significant funding from sources outside the region into our communities. In 2023, we yielded significant results: • Granted $4,538,007 to nonprofits across the region through our own fund and our partner funds' grantmaking, including a $750,000 grant through a new partnership with Otto Bremer Trust. • Delivered more than $3.5 million in low -interest loans to more than 40 small businesses and trained more than 330 entrepreneurs. • Served over 130 organizations with our nonprofit development trainings, attracting city and county officials for the grant writing trainings. • Preserved 800 childcare slots and 120 early childcare jobs through community support services. • Awarded $125,000 in grants to cities and local economic development administrations to support feasibility studies, community engagement projects and strategic planning. Because of your support, for every dollar we raise locally, we have reinvested an average of $4.37 back to the communities we serve in the form of grants, loans, and scholarships. That's a return on investment to be proud of, and we would be honored by renewal of your support in 2025. We invite you to allocate $2,390 to the Initiative Foundation in your 2025 budget. Please contact us with any questions or to request a presentation. We sincerely appreciate your past investment and look forward to your continued support. After your budget for 2025 is finalized, please let us know your decision by signing and returning the enclosed confirmation form. Thank you for your consideration! All the best, Brian Voerding Carl Newbanks President Vice President of Philanthropy The Initiative Foundation is a 501(c)(3) nonprofit organization. All contributions to the Foundation are tax-deductible to the extent allowed by law. The Foundation owns and manages all financial contributions for the benefit of communities served in the 14-county region of Central Minnesota. Initiative Foundation 1 405 First St. SE 1 Little Falls, MN 56345 ; ifound.org I info(�Jfound.org Equal Opportunity Employer, Lender and Provider. Our Mission: To empower people throughout Central Minnesota to build a thriving economy, vibrant communities, and a lasting culture of generosity. Initiative Foundation 405 First Street SE Little Falls, MN 56345 (877) 632-9255 ifound.org 0 Initiative FOUNDATION Initiative Foundation at work in WRIGHT COUNTY $8817ss in local donations to the Initiative Foundation. $11.3 returned in grants, loans, and scholarships. Return on Investment For every local dollar contributed, the Initiative Foundation has invested $12.86 back into Wright County. Economic Impact [1986 to present] - Delivered 555 grants totaling $4.7 mil0on - Awarded 4 scholarships totaling $2,900 - Partnered on 81 loans totaling $5.6 million - Created or retained 1,241 quality jobs - Leveraged in outside capital $46.3 million - County -based Partner Funds 6 e, � ,-r: ;:.,. ;;� �;urt�.;nit� rn , r y,,�, an' rxcvi je.r. Investment Highlights W R I G H T COUNTY Grants Thriving Economy, Thriving Communities True Friends, Annandale Wright County Community Action, Inc., Maple Lake Rivers of Hope, Monticello Staff Recruitment Accounting Software Transition Domestic Violence Outreach and Education Business Financing Local Ownership, duality Jobs .............. ..._ - _...._.. _ ...._ _ __ __ __ Sota Car Wash, Monticello Service Charitable Funds Activating Generosity Delano Area Community Foundation I Delano Area Emergency Fund I Dorn Family Fund I Minnesota Pioneer Park Endowment Fund Wright County Historical Society Fund I Childcare & Early Childhood Education Fund Nonprofit Assistance Helping Organizations Thrive Wright County Community Action, Maple Lake Marketing Training The Optimist, St. Michael Fundraising Training Parenting with Grace, Inc., Buffalo Lunch and Learn Community Action The Power of Partnership 4 Wright County Community Action (WCCA) is filling an important gap for homeowners dealing with post -pandemic struggles. When the COVID-era HomeHelpMN program stopped taking applications in July 2023, WCCA stepped in to help. Supported by an Initiative Foundation grant, the organization added temporary staff to help at least five households avoid foreclosure. Another 14 homeowners received other forms of assistance. 4 CPR and first -aid classes are a must for childcare provides, but fitting them in during a long and busy workday without shutting down family service for an afternoon isn't always practical or affordable. With grant support from the Initiative Foundation, Wright County Community Action is knocking down barriers by offering free after-hours training. To date, nearly 200 Central Minnesota providers-42 from Wright County —have gone through the program. 4 The last of the baby -boom generation will reach retirement age in a few short years. While that introduces the golden years for some, it likely means many small businesses will go up for sale or face closure. The University of Minnesota Extension partnered with the Initiative Foundation and Wright County Economic Development Partnership for a February rural business succession and transition workshop. The event was attended by community leaders who gleaned insights to keep local businesses thriving. 5,28.24 0lnitiative FOUNDATION 2025 Budget Confirmation Please use the form below to indicate your decision to support the Initiative Foundation in 2025. Thank you! Together, we can continue to serve this great region we call home! Initiative Foundation 405 First St. SE, Little Falls, MN 56345 Or Email it to: cnewbanks@ifound.org Or AGAIN THIS YEAR - online submission at ifound.org/city-and-county. ❑ Yes, the City Council of Initiative Foundation in 2025 in the amount of $ has approved funding to the Would you like the Initiative Foundation to send you a payment reminder/invoice? ❑ Yes, please send payment reminder/invoice to us in / Month / Year ❑ Not necessary, we'll send payment to IF without a payment reminder/invoice. ❑ Payment attached. ❑ No, the City Council has decided against funding the work of the Initiative Foundation in 2025. Name of Contact Person Printed Name Signature Email Address Title Date Phone # If the City Council would like to schedule a presentation by the Foundation, request more information, or discuss local projects, please call Carl Newbanks at 320-631- 2042 or email cnewbanks@ifound.org. Thank you again for considering this request! We appreciate your partnership. 07/10/2024 4A. PUBLIC HEARING — Continued - Related to a Proposed Downtown Facade Improvement Forgivable Loan Agreements to Block 52 Holdings, LLC, Norgren Exchange, LLC, and Buchholz Exchange, LLC and John Thorud for the east and south north facades of 149 W. Broadwav Street and to Lucille and Jon Murrav for the south west and north facades of 155 W. Broadway Street Prepared by: Meeting Date: ® Public Hearing Economic Development Manager 7/10/2024 Reviewed by: Approved by: N/A Community Development Director ACTIONS REQUESTED 1. Motion to continue the Business Subsidy Public Hearing to the July 24, 2024, EDA regular meeting, and table action related to a Downtown Facade Improvement Forgivable Loan Agreements to Block 52 Holdings, LLC, Norgren Exchange, LLC, and Buchholz Exchange, LLC, and John Thorud for the east and south and north facades of 149 W. Broadway Street and to Lucille and Jon Murray for south, west, and north facades of 155 W. Broadway Street. REFERENCE AND BACKGROUND Due to delays in the process of gathering revised quote -bids for the proposed fagade work related to both of the buildings at the west end of Block 52, there is no new specific information to present to the EDA regarding the Forgivable Loan Agreements. Meetings were recently in mid to late June with all of the involved property owners regarding the proposals to confirm progress in this effort. Based on those discussions, the expected timeline for the property owners to receive the applicable new quotes for the proposals is mid to late July. As a reminder, the property owners of the Block 52 redevelopment project informed staff in late April 2024 that they intended to submit updated Downtown Facade Improvement Forgivable Loan applications for 149 and 155 W. Broadway Street (Sleep Concepts and Lucille Murray's Studio of Dance, respectively). The Business Subsidy Public Hearing notice was published in the Monticello Times on Thursday, May 30, 2024. The EDA attorney confirmed that it is permissible for the EDA to once again continue the public hearing until the next regular meeting on July 24, 2024. The facade improvement proposals are key components of redevelopment and revitalization efforts in Block 52. Budget Impact: The budget impact related to the proposed Facade Forgivable Loans is expected to be $200,000. Funding for the Facade Loan Program is in a dedicated sub - fund of the EDA General Fund. The current fagade program fund balance is $151,578.07. A related consideration on the EDA Agenda is intended to address the need to increase 07/10/2024 the program funding to satisfy the current Block 52 facade proposals. Administrative costs related to the proposed facade loans is expected to total $1,400 +/. II. Staff Workload Impact: City staff involved in the fagade improvement proposals consists of the Community Development Director, Finance Director and Economic Development Manager. The EDA attorney drafted the various loan agreements and related documents. Comprehensive Plan Impact: The proposed Block 52 facade improvement projects align with the goals of downtown revitalization as outlined in the Comprehensive Plan. The Small Area Study also called for EDA to create a financial support program for the active revitalization of the older buildings in the core downtown area. STAFF RECOMMENDATION Staff recommend the EDA continue the Public Hearing and table action related to the proposed Forgivable Loans until the second regular EDA meeting on July 24, 2024. SUPPORTING DATA A. Downtown Facade Improvement Program Policy B. 149 W. Broadway Street Concept Rendering C. 155 W. Broadway Street Concept Rendering D. June 12, 2024, EDA Staff Report E. Public Hearing Notice - Monticello Times May 30, 2024 2 _ �`\ Vk CITY OF City Policy and Z�*]� Monti no Procedure SECTION: FINANCE NO: FIN - REFERENCE: Date: Next Review Date: TITLE: FACADE IMPROVEMENT PROGRAM 1.0 Purpose The City of Monticello Economic Development Authority (the "EDA") recognizes the need to encourage investment in commercial and retail buildings in the Downtown area in order to maintain the economic viability of the City and the Downtown/Central Community District. The purpose of this forgivable loan program is to support a visually and financially appealing Downtown and greater Monticello community by providing forgivable loans to improve the fagades of existing Downtown commercial and retail buildings. 2.0 Policy ELIGIBLE BUSINESSES Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may be eligible for a Downtown Facade Improvement Forgivable Loan (" Loan") as further defined herein. The area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52 following redevelopment, as well as those buildings along Walnut Street, between Broadway Street West and River Street. It is the goal of the EDA that 70% of the buildings within the eligible area complete improvements to their properties. The EDA has allocated a maximum of $200,000 for the initial Loan program. This is a pilot program, and additional areas and allocations will be considered at a future date. FORGIVABLE LOAN FUND TERMS & CONDITIONS Loan Amount & Structure Individual loans may be made in an amount ranging from $5,000-$50,000. Loan forgiveness generally takes place over a three-year period with fifty percent (50%) of the award forgiven at the end of the first year, and twenty-five percent (25%) forgiven at the end of years two and three. The EDA may extend or reduce the forgiveness period based on the dollar amount of the Loan. If the benefitting building is sold within the period of the Loan, the Loan must be repaid. The Applicant must provide at least 5% of the project cost in cash. The Applicant percentage shall be used as the project down -payment, as may be required. Eligibility Requirements Tenants and property owners should discuss the loan program to determine responsibilities and commitment for application and its components. The owner of the property must be a cosignatory to the application and Loan agreement. The property owner must carry current property insurance both at the time of application and through completion of approved Loan improvements. Property taxes on the subject site must be current for the duration of the Loan. Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible to receive assistance if currently involved in bankruptcy proceedings. Applicants may apply for only one Loan per building. The EDA reserves the right to approve or reject applications on a case -by -case basis, taking into consideration factors considered appropriate by the EDA, in addition to established polices, criteria, and potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or denial of an application is at the sole discretion of the EDA. Concurrent Loans The concurrent use of different EDA loan programs by any one borrower or for any one project is permitted. Business subsidy agreements may be required. Permitted Loan Uses Exterior renovation of the facades of principal use retail or commercial buildings as further shown on Exhibit B attached hereto. An applicant may apply for facade improvements on all exterior sides of their building. The EDA may approve a Loan for improvements for all or some of the sides of the building at their discretion. An architectural rendering supplied by one of the following is required: an EDA selected architect, applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for use in determining final scope of work in consultation with the applicant and the applicant's selected contractor for any project. The cost of the rendering shall not be included in the Loan amount. Architectural renderings will be considered for preparation after initial letter of interest by an applicant. Fagade renovation may include, but is not limited to windows, doors, siding, brick, stucco, masonry, painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components and such improvements shall be guided by the architectural rendering. Interior side renovation proposals may be considered on a case -by -case basis. The applicant will work with a contractor to define final selected improvements using the architectural rendering as a guide. The architectural rendering with final selected improvements must be reviewed and approved by the EDA and will be included in final Loan documentation. The improvements must be completed in substantial conformity to the approved architectural rendering. The cost of the building permit for the approved Loan project will be included in the final Loan amount. CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE As applicable, buildings for which public funds will be used within this program are to be brought into conformity with city ordinances and state building codes in effect for the area in which the building is located. It is the intent of the Downtown Fagade Improvement Loan Program to comply with the City's building standards for the Downtown/Central Community District (CCD). Please refer to the City's Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards governing this program's design guidelines. TIMING OF PROJECT EXPENSES MN 190\ 101 \941811.v 1 No project may commence until the EDA has approved the Loan application and the Loan agreement. Any costs incurred prior to execution of the Loan agreement are not eligible expenditures. No building construction may commence until the required city permits are secured. Loan disbursements shall be as provided for within the Loan agreement and shall be made directly to the Applicant/owner's contractor. The Loan agreement shall reference final contracts for improvements. COMMUNICATION Success of the project depends on the completeness of applications and good communication between all parties. Applicants should feel free to reach out to EDA staff with any questions at any time. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL The applicant shall meet with city staff to obtain information about the Loan program, discuss the project, and obtain application forms. Prior to application, it is recommended that the applicant complete and submit a letter of interest to the EDA. The letter of interest should provide a summary of desired facade improvements. As part of the letter of interest review, the EDA may consider authorization of a fagade rendering by the EDA's architectural consultant or may direct the applicant to proceed with a formal application including preparation of rendering by their contractor(s)/architect. Once the applicant has obtained the rendering and estimates, the applicant must submit a formal application to the EDA for review including the project rendering and detailed estimates. Applications will be received and reviewed on a first -come, first -served basis from the time of submission of a complete application. An inspection of the building may be required. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented to the EDA for formal approval, as follows: 1. Staff will complete a preliminary application review and may consult with the EDA's Financial Advisor and/or EDA Attorney in preparing a report for EDA consideration. 2. Staff will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, project construction and renovation plans including architectural rendering and final building elevations detailing selected improvements, timelines and capacityto implement the project. Financial Feasibility - Availability of funds, private investment, financial packaging and cost effectiveness, and bid -quote submissions. Evidence of applicant's ability to meet the 5% cash requirements. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project, if applicable. All other information as required in the application and/or additional information as may be requested by the EDA staff. MN 190\ 101 \941811.v 1 f. Project compliance with all applicable city codes and policies. 3. The EDA Commissioners will review each application in terms of: a. Its consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study. b. Whether it is desirable and in the best interests of the public to provide funding for the project. C. The project's overall potential impact on the community's economy. 4. The EDA Commissioners will approve or deny the application, or request a resubmission with clarifications, at the EDA's sole discretion. APPROVAL OR DENIAL OF LOAN APPLICATION The EDA, at its sole discretion, may deny any application on a case -by -case basis, taking into consideration factors such as: consistency with the goals of the city's Comprehensive Plan and Downtown Small Area Study, the project's overall impact on the community's economy, and the above criteria. LOAN POLICY REVIEW The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this document are consistent with the economic development goals set forth by the city. COMPLIANCE WITH BUSINESS SUBSIDY LAW All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject to the City's Business Subsidy Policy as amended, and the provisions and requirements set forth under Minnesota Statutes, Sections 116.1.993 to 116.1.995. LOAN AGREEMENT If the application for a Loan is approved, the applicant/property owner will be required to enter into a Loan agreement to proceed. The Loan agreement will specify the terms and conditions of the Loan as identified herein. DISBURSEMENT OF LOAN FUNDS Upon approval of a Loan application, applicants are required to provide executed contracts with qualified, licensed contractors for work per the approved Loan plans. Contracts shall be consistent with the procedures and requirements herein. Loan funds will be disbursed to the contractor based on completion of work as outlined below. The City's Chief Building Official will verify completion of work. Upon verification of completion, payment will be dispersed per contract amount for the work completed based on submitted invoice. PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Facade Improvement Loan Program must have a contractor's license on file with the Minnesota Department of Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified on the application form. The application must contain proof of insurance coverage via a Certification of Insurance Coverage, and the contractor's registration and license number and bond. B. BID/QUOTE SOLICITATION: To participate in the Downtown Facade Improvement Loan Program, the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any contractor, provided the license requirements are met and the cost differential in the quotes received MN 190\ 101 \941811.v 1 does not exceed 20%. C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and the contractor. Each selected contractor will enter into a contract with the property owner. The contract will outline the terms for completion of the rehabilitation on the project and will include the following: 1. Scope of Work 2. Project Start Date; 3. Project Completion Date; 4. General Conditions; 5. Building Elevations and Architectural Drawings; 6. Special Conditions; 7. Project Warranties; 8. Change Order Procedures; 9. Payment Terms; 10. Termination Procedures. D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Loan agreement, the applicant and selected contractor will have 180 calendar days in which to complete the contracted work. The 180- day time period shall not be exceeded except through the issuance of a change order. Failure to complete any work within 180 days will be grounds to terminate the Loan agreement. E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows: 1. Pre -payments for contracted services may be disbursed from an escrow account established with the EDA's specified agency. Such escrow account shall be administered per the Loan agreement. 2. Lien waivers are required for all contractors and subcontractors before payment is made. 3. Final payment for work completed, including any retainage amounts, will be made after work by a contractor is completed with verified receipts and costs incurred, the final inspection has been conducted and the Chief Building Official, property owner, and contractor have signed off on the work. F. CHANGE ORDERS: Change orders to the approved Loan project require the approval of the EDA. Change orders will be allowed only for the following reasons: 1. To rectify hidden deficiencies that are discovered once the work has begun. 2. To change a specification due to unforeseen difficulties arising after work has begun. 3. To address a deficiency that was inadvertently dropped from the project during project packaging. 4. To change completion dates. PROJECT COMPLETION The City's Chief Building Official will complete a final project inspection and issue a Certificate of Completion verifying project completion per the approved Loan plans. 3.0 Scope This policy applies to all projects that apply for and may receive assistance under the Fagade Improvement Program. 4.0 MN 190\ 101 \941811.v 1 HISTORY Approval Date: August 8, 2018 Approved by: EDA Amendment Date: November 9, 2022 Approved by: EDA Amendment Date: January 10, 2024 Approved by: EDA NM 190\101 \941811.v1 EXHIBIT A Geographic Program Limits Downtown Facade Improvement Grant Program Eligibility Area MN190\101\941811.v1 EXHIBIT B Permitted Fund Uses —Visual Reference MN190\101\94181 Lv1 Elements of the Facade Cornice Upper Frieze - - - Lintel _ Upper Windows TI;j - Sill Middle Frieze r �iihtf�s �Y1WMIli; -�=- Transom Door Display Window -maw. Base Panel sy G Overview of the Program The Monticello EDA has developed a Downtown Facade Im- provement Grant Program to support property owners in their efforts to reinvest in their buildings and in the historic building fabric of downtown Monticello. The purpose of the grant pro- gram is to improve the aesthetics of the Downtown and to make it a place that is comfortable and appealing to more people throughout the day, week and year. The grant program offers up to $50,000 in grant funding to individual building property owners or building tenants to make front and corner side building facade improvements in the eligi- ble area shown below. The program is a grant, with no repayment of the funds re- quired, with a minimal financial commitment by the property owner or tenant. The EDA's goal is for at least 70% of the proper- ty owners in the area to take advantage of the grant. Additional Information www.ci.monticello.mn.us Angela Schumann Director of Community Development City of Monticello, MN 763-271-3224 Angela.Schumann@ci.monticello.mn.us Downtown Facade Improvement Grant Program An Implementation Step of the Downtown Small Area Plan Investing in Our Downtown J Possible Improvements to building on Broadway Monticello Design Threads General Design Considerations Facade Improvement Possibilities The following design threads can be incorporated into facade improvements. Doing so will help create a lively and distinctive environment. Transparency and Openness Broadway should be welcoming and inviting., Facades with large windows and well -designed storefronts are comfortable to walk along side and intriguing to look into.They create visual interest to both drivers and walkers. Three Dimensionality / Movement Functional and artistic elements that have depth, or evoke a sense of movement, have impact. Elements that project horizontally from buildings or vertically from the sidewak are encouraged. Proportion and Order All elements of the facade should be proportional and orderly to create a harmonius composition. The underlying building should provide the basic order of the composition and ele- ments such as awnings, signage and lighting should respond to the underlying building. Of its Time Downtown Monticello was buit over time. Today's buildings reflect a variety of eras and no one particular style. Improve- ments to the buildings that are in keeping with the spirit of a particular era will create an environment that is of its time. South side of Broadway, Block36 A renovation or facade improvement project can provide the architectural and human -scale qualities to improve the aesthet- ics of Downtown. The following design considerations highlight key elements that will provide guidance in restoring or enhanc- ing architectural value to building. - Most facades consist of an architectural framework designed to identify individual storefronts. Each storefront should respect this framework. - Facades should present a visually balanced composition ac- cording to the original architectural intent. - In cases where original building elements have been removed or substantially altered, contemporary treatments respecting the original and historic details are suitable. 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IOU dA do lost. b do • - 'I, • ! t Pam .0o . 0 •so_ _I 1 f OF so lob dp IL • f► Im ` % •♦„AV , � • 40 Z ok• `� • 1 • A v Ib 0 dpv 7 + .� • :..i J'Ip, A •ong .9" _ _ J. .ter L� 40 ar Ag 4L it• Rif • � • I Aar • • 40 w 4p 1• ..46 doom Flo v ♦ � i _'emu. �, 7 6h,qklq-q f - _ 4do ap tS dm • S - 1w q - = l • 4p �M 6/12/2024 4A. PUBLIC HEARING - Consideration of ODenine and Continuing a Public Hearing. and Tabling Action Related to a Downtown Fagade Improvement Forgivable Loan Agreement to Block 52 Holdings, LLC., Norgren Exchange, LLC., and Buchholz Exchange. LLC. for the east and south facades of 149 W. Broadwav Street and sout west and north facades of 155 W. Broadway Street Prepared by: Meeting Date: ® Public Hearing Community & Economic Development 6/12/2024 Coordinator Reviewed by: Approved by: Community Development Director Economic Development Manager ACTIONS REQUESTED 1. Open the public hearing to the July 10, 2024 regularly scheduled meeting of the EDA. 2. Motion to continue the public hearing to the July 10, 2024 EDA regular meeting, and table action related to a Downtown Fagade Improvement Forgivable Loan Agreement to Block 52 Holdings, LLC., Norgren Exchange, LLC., and Buchholz Exchange, LLC., for the east and south fagades of 149 W. Broadway Street and south, west, and north fagades of 155 W. Broadway Street. REFERENCE AND BACKGROUND Last month, City staff was informed by the property owners of the Block 52 redevelopment project they intended to submit updated Downtown Fagade Improvement Forgivable Loan applications for 149 and 155 W. Broadway Street (Sleep Concepts and Lucille Murray's Studio of Dance, respectively). Staff published the necessary business subsidy public hearing notice in the Monticello Times on Thursday, May 30t" in the event the applicant submitted all the necessary documentation for the applications to be reviewed and considered by the EDA at the June 12 regular meeting. The applicants have not submitted updated application materials at this time, and staff is requesting the EDA open the public hearing, continue it to the July 10, 2024, EDA regular meeting, and table action on this agenda item. Previously on December 1, 2022, staff received an application from the Block 52 ownership group for the subject properties and held a workshop with the EDA to go over a proposal for the improvements. The EDA requested the applicant provide concept renderings for the improvements proposed, which were reviewed at a workshop meeting. In early 2023, staff requested the applicant submit an itemized quote for the work to be completed for a complete application submittal. As staff did not receive the necessary information, the original applications did not move forward at that time. 6/12/2024 The proposed fagade improvement project is a subcomponent of the Block 52 redevelopment work. The Mattress Store's east wall was previously a shared wall with the 121 West Broadway building, which was demolished. The Fagade loan is intended to address the exposed wall condition created with the demolition. The EDA should also be aware of the existing fund balance of the program. Originally the EDA allocated $250,000 at the program's start and has since awarded two forgivable loans to 142 W. Broadway St. (the Agosto Building), and 109 Walnut St. (Bliss Salon) totaling $98,422. This leaves, currently, $151,578 in the project's fund balance. The anticipated Block 52 applications would likely request the maximum allowed for each property at $100,000 each ($200,000). This would require the EDA to consider allocating additional funds for the program, which would come from the EDA's General Fund. This consideration would likely occur at the subsequent meeting as necessary. STAFF RECOMMENDATION Staff recommends the above "Actions Requested" be made in the order presented as is. SUPPORTING DATA A. Public Hearing Notice published in the Monticello Times on May 30, 2024 B. Downtown Fagade Improvement Program Policy C. Downtown Fagade Improvement Program Application D. 149 W. Broadway Street Concept Rendering E. 155 W. Broadway Street Concept Rendering 2 NOTICE OF PUBLIC HEARING CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY WRIGHT COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that the Board of Commissioners of the City of Monticello Economic Development Authority (the "Authority") will hold a public hearing on Wednesday, June 12, 2024 at approximately 6:00 P.M. or as soon thereafter as the matter may be heard, in the Academy Room of the Monticello Community Center located at 505 Walnut Street in the City of Monticello, Minnesota (the "City") to consider the provisions of a proposed business subsidy under Minnesota Statutes, Sections 116J.993 through I I6J.995, as amended (the "Business Subsidy Law"), to the following recipients in connection with fagade improvements to be made to the real property located at 149 and 155 West Broadway Street in the City (the "Project") : (i) Block 52 Holdings LLC, Buchholz Exchange LLC, and Norgren Exchange LLC, each a Minnesota limited liability company, or to an entity(ies) related thereto or affiliated therewith; (ii) John Thorud, a natural person; and (iii) J & L Murray Properties, LLC, a Minnesota limited liability company (collectively, the "Recipients"). Information about the proposed business subsidy for the Recipients is available for inspection at the office of the Authority's Executive Director at City Hall during regular business hours. After the public hearing the Authority will consider granting the business subsidy in accordance with the proposed terms and if the creation or retention of jobs is determined not to be a goal of the Project, the wage and job goals may be set at zero in accordance with the Business Subsidy Law. A person with residence in or the owner of taxable property in the City may file a written complaint with the Authority if the Authority fails to comply with the Business Subsidy Law, and no action may be filed against the Authority for the failure to comply unless a written complaint is filed. All interested persons may appear at the hearing and present their views on the matters orally or provide their comments prior to the meeting in writing. Dated: May _, 2024 BY ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY /s/ Jim Thares Executive Director MN325\40\845581.v1 07/10/2024 5A. Consideration of additional funding in the amount of 593.425 being allocated to Facade Improvement Forgivable Loan Program Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 7/10/2024 Reviewed by: Approved by: N/A Community Development Director ACTIONS REQUESTED 1. Motion to authorize additional funding in the amount of $93,425 to be allocated to the Fagade Improvement Forgivable Loan Program. REFERENCE AND BACKGROUND The EDA is asked to consider adding additional funding to the Fagade Improvement Forgivable Loan Program to meet the demand from proposals that have been getting organized over the past 6 months. Two key factors are involved in the recommendation to increase the Program funding. They two items are: 1. The expansion of the target area of the Fagade Improvement Program which the EDA approved in 2023. 2. A significant increase in construction costs which is impacting the Block 52 properties. The proposed funding increase will accommodate the Block 52 proposals which have previously been discussed by the EDA (03-01-23 EDA Workshop Mtg). The Bliss Salon Fagade project, which is nearly complete, is located in the expansion area (Block 51). The funding amount approved for the Bliss Salon project was $48,422 leaving a balance of $151,578 in the Fagade Improvement Loan Program Sub -Fund. The preliminary estimates for the Block 52 fagade projects are between $200,000 to $245,000. The EDA General Fund is the source of the proposed allocation to the Fagade Improvement Fund. To ensure that the two prominent fagade improvement proposals can be completed as envisioned, an additional funding allocation of $98,425 will be required. The EDA should also be aware that if additional funding proposals which are located in the target are submitted for consideration in the future, an additional funding allocation may be presented to the EDA again in coming months. Budget Impact: The General Fund budget impact related to the proposed additional funding allocation to the Fagade Forgivable Loan Program is $93,425. The EDA has discretion to unallocated funds from the Sub Fund as well if it deems it necessary to carry out its other priority objectives. 07/10/2024 II. Staff Workload Impact: City staff involved in the facade improvement funding consideration consists of the Community Development Director, Finance Director and Economic Development Manager. III. Comprehensive Plan Impact: Maintaining a vibrant and economically healthy core downtown area is noted as a goal in the Comprehensive Plan. The Small Area Plan, adopted in late 2017, also identifies the need for a Facade Improvement Funding program as a key tool to support widespread downtown revitalization efforts. STAFF RECOMMENDATION Staff recommend the EDA allocate an additional $93,425 into the Fagade Improvement Forgivable Loan Program to accommodate the prominent Block 52 fagade improvement projects. The additional funding will increase the Sub -Fund balance to $245,003. SUPPORTING DATA A. Target Area — Fagade Improvement Forgivable Loan Program (adopted by EDA on January 10, 2024) B. EDA 10/10/2024 meeting minutes C. EDA General Fund Budget Report (March 31, 2024) 2 Proposed Amended Downtown Facade Improvement Grant Program Eligibility Area Created by: City of Monticello 4f co ; - �Q 155010065030 v 155010051130 _ Ri�FR - 155010051020� 55275001010- Y ., o ej4 � _ �` .1552d5001020 ,, � 155010 qt 75 -. 155010036040 . 155010035011 \ ! 1 3R� --1 5010 35040 155010032020 - set.-.155010034 MINUTES REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 10, 2024 — 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, 011ie Koropchak-White, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: Treasurer Hali Sittig Staff Present: Executive Director Jim Thares, Angela Schumann, Hayden Stensgard 1. General Business A. Call to Order President Steve Johnson called the regular meeting of the Monticello EDA to order at 6:05 p.m. B. Roll Call 6:00 p.m. President Johnson called the roll. C. Consideration of Additional Agenda Items None 2. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes — December 13, 2023 C. Consideration of Approving Workshop Meeting Minutes — December 13, 2023 LLOYD HILGART MOVED TO APPROVE THE JANUARY 10, 2024 REGULAR MEETING CONSENT AGENDA. RICK BARGER SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 3. Public Hearing N/A 4. Regular Agenda A. Consideration of Greater Monticello Enterprise Fund (GMEF) Loan Pre -Application in the amount of $300,000 from Deephaven Development for commercial property improvements at 101 West Broadway Executive Director Jim Thares provided an overview of the agenda item to the EDA and the public. The EDA was asked to consider a GMEF loan pre -application request for $300,000 to assist with a tenant space build out within the commercial area of the Block 52 Redevelopment project. The total buildout space on the first floor of the new building is roughly 13,300 square feet and will consist of approximately $2,000,000 in improvements. Block 52 Holdings noted they have a 10-year lease for the space with new tenant, Simplicity Financial Group, that is anticipated to bring 102 full-time equivalent jobs to the building. Mayor Hilgart referenced the current GMEF fund balance of around $1,055,000 and if there was a process for replenishing the fund, if necessary, in the future. Mr. Thares noted that any given GMEF application is only eligible for half of the fund balance at the time of application. The EDA has the authority to waive this guideline, as well as allocating more funds as necessary. 011ie Koropchak-White noted that the limitation for requests to be maxed out at half fund balance is a guideline adopted at the time the program was created, to ensure there would be funds available at all times. As the program continues to progress, +k-%+ Reei#4n1ir ^ e-e%id I+n rn n�i-�lu,-tnd 1„id wmri1ALA - - rnrrarc�ry President Johnson asked what the anticipated interest rate would be for the subject GMEF loan. Mr. Thares noted that it would be two percent below prime, which is 6.5%. Mr. Thares noted the applicants are requesting this GMEF loan to be at 3% interest for the $300,000. Brendan Muldoon, of the applicant team, addressed the EDA and the public. Mr. Muldoon gave background on the future tenant of the subject space. He said that Simplicity Group is a large nationwide financial firm based in New Jersey. Mayor Hilgart believed the results from this commercial space being filled up and built out for use will benefit all businesses within the downtown area. Vice President Jon Morphew appreciated the efforts from the Block 52 development team attracting prospective tenants to these available spaces. Ms. Koropchak-White also appreciated the work done to fill up the commercial spaces of the building. President Johnson asked how parking will be managed in the area with the addition of 100 +/- employees, and more to come as more commercial and residential tenants move in. Mr. Muldoon noted that the City has conducted studies that indicate that there is sufficient parking within the vicinity of the block. He further stated that this will need to be monitored to proactively make any necessary adjustments. Angela Schumann, Community Development Director, echoed Mr. Muldoon's statements on parking and noted the City has prepared short-term and long-term parking solutions to be utilized as necessary. Vice President Morphew asked if the loan is contingent on a signed lease. Mr. Thares said the tenant has already signed the lease. Per Business Subsidy statutes, the applicants are required to meet certain job creation goals which will be fulfilled by the tenant. Councilmember Tracy Hinz also expressed gratitude towards the development team for their efforts throughout the redevelopment project. OLLIE KOROPCHAK-WHITE MOVED TO AUTHORIZE STAFF TO PROCEED WITH FURTHER DUE DILIGENCE RELATED TO THE LOAN CREDIT REQUEST AND PREPARATION OF A LOAN AGREEMENT FOR CONSIDERATION AT A FUTURE MEETING. TRACY HINZ SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. B. Consideration of Authorizing entering into Professional Services Contract with WSB & Associates in the amount of $8,400 for completion of Phase I Environmental Site Assessment (ESA) and ARM (Asbestos and Regulated Materials) Survey of 216 Pine Street Mr. Thares provided an overview of the agenda item to the EDA and the public. Recently purchased property by the EDA, 216 Pine Street requires a Phase I ESA and ARM Survey prior to any redevelopment efforts on the block. The specific request is only for 216 Pine Street, and any other property on the block to be redeveloped will have these same steps completed as necessary. Rick Barger asked if these two environmental steps were only on the building or for the land as well. Mr. Thares clarified that the Phase I ESA will cover both the land and the building, and the ARM Survey is specific to the building. JON MORPHEW MOVED TO AUTHORIZE A PROFESSIONAL SERVICES CONTRACT WITH WSB & ASSOCIATES FOR COMPLETION OF A PHASE I ESA (ENVIRONMENTAL SITE ASSESSMENT) AND AN ARM SURVEY (ASBESTOS REGULATED MATERIALS) SURVEY AT 216 PINE STREET IN THE AMOUNT OF $8,400. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. C. Consideration of Authorizing entering into a Professional Services Contract with WSB & Associates in the amount of $4,800 for completion of a Phase I Environmental Site Assessment (ESA) of 118 East Broadway Mr. Thares provided an overview of the agenda item to the EDA and the public. A companion item to the prior one of this agenda. The proposed Phase I work at 118 Broadway East would take place as necessary steps prior to any redevelopment efforts on Block 34. President Johnson noted that these environmental steps being completed proactively by the EDA will benefit their efforts in advertising the block for redevelopment. MAYOR LLOYD HILGART MOVED TO AUTHORIZE A PROFESSIONAL SERVICES CONTRACT WITH WSB & ASSOCIATES FOR COMPLETION OF A PHASE I ESA (ENVIRONMENTAL SITE ASSESSMENT) AT 118 BROADWAY EAST IN THE AMOUNT OF $4,800. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. D. Consideration of Authorizing an Amendment to the Downtown Facade Improvement Forgivable Loan Program Guidelines and Eligibility Area Community & Economic Development Coordinator Hayden Stensgard provided an overview of the agenda item to the FDA and the nuhlir-- President Johnson asked if renderings completed through the applicant for proposed improvements could be included in the funding for the work to be done. Mr. Stensgard said that the current guidelines do not specifically call out the renderings as an eligible item for loan funds, but the EDA has the latitude and discretion to decide whether they are eligible on a case -by -case basis. Ms. Schumann clarified that the typical process for the loan program would consist of the EDA deciding to authorize completion of renderings for a building, or have the applicants provide prior to a formal application submittal. President Johnson asked if the guidelines define what the eligible facades are for a given building. Mr. Stensgard clarified that the eligible facades for improvement as mentioned in the guidelines are those adjacent to public streets. The EDA has the discretion as well to authorize funds for additional facades if requested by the applicant, on a case -by -case basis. Vice President Morphew asked if the 109 Walnut Street property is planning to move forward with their application if the eligibility area is amended to include that property. Mr. Stensgard confirmed. Ms. Schumann further clarified that the specific language only alludes to front and interior side facades as eligible portions of buildings for the program. If the EDA wishes to include language allowing applicants to request facades beyond what is acknowledged, they should direct staff to make that addition. Mayor Hilgart noted he did not have an issue with potential applicants applying for multiple sides, as long as the front fagade is included in the proposed improvements. Vice President Morphew concurred and stated that his thoughts on that would have been different, had there been more initial interest from property owners for the program. Councilmember Hinz appreciated the added flexibility in the policy language for both EDA and the potential applicants but wants to ensure that EDA maintains integrity in approving projects within this program. RICK BARGER MOVED TO ADOPT THE PROPOSED AMENDMENTS TO THE DOWNTOWN FACADE IMPROVEMENT FORGIVABLE LOAN PROGRAM POLICY AND ELIGIBILITY AREA, INCLUDING ADDED LANGUAGE TO ALLOW EDA DISCRETION FOR APPROVAL OF BUILDING SIDE IMPROVEMENTS BEYOND FRONT AND INTERIOR SIDE FACADES. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. 5. Other Business A. Consideration of Economic Development Manager's Report Mr. Thares provided an overview of the agenda item to the EDA and the public. No action was taken on the item. 6. Adjournment TRACY HINZ MOVED TO ADJOURN THE REGULAR MEETING OF THE MONTICELLO EDA. OLLIE KOROPCHAK-WHITE SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 7:11 P.M. Recorded B : Hayden Stens and * y y g Date Approved: February 14, 2024 ATTEST: Jim Thar , Executive Director Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program March 31, 2024 - Unaudited ASSETS Cash and investments Receivables Unremitted taxes Delinquent taxes Accounts Intrafund receivable Prepaid items Notes receivable Land held for resale TOTAL ASSETS LIABILITIES Accounts and contracts payable Intrafund payable Unearned revenue Escrow deposits Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes FUND BALANCES Nonspendable Restricted Assigned Economic Development Fagade Grant Total fund balance TOTAL LIABILITIES, AND FUND BALANCES Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 6 (d) TIF 19 (d) TIF 20 (d) TIF 22 (d) TIF 24 TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total Total EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA SCDP $ 2,112,967 $ 1,058,290 $ - $ 49,450 $ 37,719 $ 104,142 $ 519,286 $ 55,800 $ 34,654 $ 80,227 $ 77,340 $ 13,478 $ 31,671 $ - $ - $ - $ - $ - $ 4,175,024 $ 834,519 - 3,057 - - - - - - - - - - - 4,691 - - - 3,325 - - - - - - - - - - - - - - - - - - - 11,073 - - 9,554 - - - - - - - - - - - - - - - - - 9,554 - 111,607 - - 728,845 - - - - - - - - - - - - - (840,452) - - - 127,246 - - 189,869 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 317,115 - 105,482 2,581,729 - - - - - 163,200 - - - - - - - - - - - 2,744,929 - $ 4,946,160 $ 1,248,159 $ - $ 778,295 $ 37,719 $ 104,142 $ 687,177 $ 55,800 $ 37,979 $ 80,227 $ 77,340 $ 13,478 $ 31,671 $ - $ - $ - $ - $ (840452) $ 7,257,695 $ 940,001 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 127,246 $ - $ - $ - $ 127,246 $ - - - 45,363 - - - - - - 64,644 - - 728,845 400 400 400 400 (840,452) - - - - - - - - 163,200 - - - - - - - - - - (163,200) - - 15,492 - - - - - - - - - - - - - - - - - 15,492 - 15,492 - 45,363 - - - 163,200 - - 64,644 - - 728,845 400 127,646 400 400 (1,003,652) 142,738 - 3,057 - - - - - 4,691 - 3,325 - - - - - - - - - 11,073 - - - - 1,248,159 - - - 778,295 - 37,719 - 104,142 - 519,286 - 55,800 - 34,654 - 15,583 - 77,340 - 13,478 - (697,174) - (400) - (127,646) - (400) - (400) - 163,200 - - 2,221,636 940,001 4,727,611 - (45,363) - - - - - - - - - - - - - - - 4,682,248 - 200,000 - - - - - - - - - - - - - - - - - 200,000 - 4,927,611 1,248,159 (45,363) 778,295 37,719 104,142 519,286 55,800 34,654 15,583 77,340 13,478 (697,174) (400) (127,646) (400) (400) 163,200 7,103,884 940,001 $ 4,946,160 $ 1,248,159 $ - $ 778,295 $ 37,719 $ 104,142 $ 687,177 $ 55,800 $ 37,979 $ 80,227 $ 77,340 $ 13,478 $ 31,671 $ - $ - $ - $ - $ (840,452) $ 7,257,695 $ 940,001 12/9/2013 12131 /2023 1211012018 12131 /2023 1213112026 12131 /2029 12131 /2029 12131 /2022 1213112045 12131 /2031 12131 /2050 12131 /2050 12131 /2050 12131 /2032 Redevelopment Housing Redevelopment Housing & Housing Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic Redevelopment Development Development Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended March 31, 2024 - Unaudited Revenues Property taxes Tax increments Intergovernmental Investment earnings Interest on loans Other revenues Total revenues Expenditures: Current Salary and wages Benefits Supplies Professional services - legal Professional services - other LPV Insurance Legal and general publications Marketing Dues and membership Utilities IT services Travel and conferences Other expenditures Excess increments Interest on intrafund loans PAYG payments to third parties Total expenditures Net change in fund balances Fund balance at beginning of year Fund balance at end of year Required or Actual Decertification Date TIF District Type (d) = decertified CITY OF MONTICELLO TIF 6 (d) TIF 19 (d) TIF 20 (d) TIF 22 (d) TIF 24 TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total Total EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA SCDP - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 902 - - - - - - - - - - - - - - - - 902 750 10,250 - - - - - - - - - - - - - - - - - 10,250 - 10,251 902 - - - - - - - - - - - - - - - - 11,153 750 31,775 - - - - - - - - - - - - - - - - - 31,775 - 9,600 - - - - - - - - - - - - - - - - - 9,600 - - - - - - - - - - - - - - - - - - - - - 6,079 - - - - - - - - - - - - - - - - - 6,079 - 2,354 - - - - - - - - - - - - - - - - - 2,354 - 3,280 - - - - - - - - - - - - - - - - - 3,280 - 342 - - - - - - - - - - - - - - - - - 342 - - - - - - - - - - - - - - - - - - - - - 3,535 - - - - - - - - - - - - - - - - - 3,535 - 1,168 - - - - - - - - - - - - - - - - - 1,168 - 838 - - - - - - - - - - - - - - - - - 838 - 555 - - - - - - - - - - - - - - - - - 555 - 383 - - - - - - - - - - - - - - - - - 383 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 59,909 - - - - - - - - - - - - - - - - - 59,909 - (49,658) 902 - - - - - - - - - - - - - - - - (48,756) 750 4,977,269 1,247,257 (45,363) 778,295 37,719 104,142 519,286 55,800 34,654 15,583 77,340 13,478 (697,174) (400) (127,646) (400) (400) 163,200 7,152,640 939,251 $ 4,927,611 $ 1,248,159 $ (45,363) $ 778,295 $ 37,719 $ 104,142 $ 519,286 $ 55,800 $ 34,654 $ 15,583 $ 77,340 $ 13,478 $ (697,174) $ (400) $ (127,646) $ (400) $ (400) $ 163,200 $ 7,103,884 $ 940,001 12/9/2013 12131 /2023 1211012018 12131 /2023 12131 /2026 12131 /2029 12131 /2029 12131 /2022 1213112045 12131 /2030 12131 /2050 12131 /2050 12131 /2050 12131 /2032 Redevelopment Housing Redevelopment Housing & Housing Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic Redevelopment Development Development EDA Agenda: 07/10/2024 5B. Consideration of sponsorship in the amount of $5,000 for the Monticello Chalk Fest Event Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 07/10/2024 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Finance Director ACTION REQUESTED Motion to authorize a $5,000 sponsorship of the Monticello Chalk Fest event. REFERENCE AND BACKGROUND The EDA is asked to consider a sponsorship of the Monticello Chalk Fest Event in the amount of $5,000. The 2024 Chalk Fest Event will be held on August 24 and 25, 2024. It will be a slightly larger event than in 2022 and 2023 with more music, food and chalk artists. The EDA also sponsored the 2023 Chalk Fest event in the amount of $5,000 with the goal of marketing and awareness building efforts related to downtown redevelopment activities. For the $5,000 sponsorship in 2023, the EDA was allowed to set up a table -booth and display marketing materials and information about its work plan goals and objectives. City staff worked at the event. The 2024 Chalk Fest event will be held along Walnut Street near West Bridge Park and the Block 52 Redevelopment project. This event may be a great opportunity for the EDA to showcase and discuss with local residents and/or stakeholders its involvement in a significant redevelopment project in the City as well as its overall goals and objectives. Budget Impact: The budget impact related to the Chalk Fest sponsorship consideration, if approved, would total $5,000. II. Staff Workload Impact: The staff impact related to Chalk Fest sponsorship consideration is minimal. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDATION Staff recommend the EDA approve the sponsorship of the Monticello Chalk Fest event in the amount of $5,000. Since the event is being held adjacent to the Block 52 Redevelopment EDA Agenda: 07/10/2024 project, it may be a great opportunity to showcase the results of the EDA's efforts and provide information about its activities and priorities. SUPPORTING DATA N/A EDA Agenda: 07/10/2024 SC. Consideration of Rustech Brewine Business Operatine Stutus and GMEF Loan Update Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 07/10/2024 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development City Administrator Director, Finance Director ACTION REQUESTED No Motion; informational only. REFERENCE AND BACKGROUND City staff will provide a brief update on Rustech Brewing at the meeting. The Brewery which launched its operations in the spring of 2018 has determined that it is best to make some operational changes to survive the challenges that are facing the micro -brewery industry. The EDA provided a $75,000 GMEF Loan to Rustech to allow them to purchase equipment for the brewery. The business subsidy component of the Loan Agreement required Rustech to create 4 new jobs. It met that goal in late 2022. The GMEF Loan is current (loan is not in default due to non-payment). Additional details regarding the upcoming changes that Rustech is undergoing will be presented at the EDA meeting. I. Budget Impact: The budget impact related to the Rustech update is minimal. II. Staff Workload Impact: The staff impact related to Rustech update is minimal. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDATION There is no staff recommendation at this time. The purpose of the update is to share known information about the upcoming changes that Rustech is facing and/or planning as well as allow the EDA to provide feedback or direction to City staff if it is deemed necessary and prudent. SUPPORTING DATA N/A EDA Agenda: 07/10/2024 6A. Economic Development Manager's Report Prepared by: Meeting Date: ® Other Business Economic Development Manager 07/10/2024 Reviewed by: Approved by: N/A N/A REFERENCE AND BACKGROUND 1. Project Maxwell Site Visit on July 10, 2024 — Staff will provide an update to the EDA regarding the results of the Project Maxwell site search team visit to the City of Monticello on July 10, 2024, at 11:00 a.m. A contingent of approximately 15 people are expected to be participating in the site visit and lunch gathering. The 20.50-acre site in Otter Creek Business Park was submitted to MN -DEED as part of the initial site and community information packet. The site visit does not commit the EDA to providing or offering this site to the prospective firm. The goal of all participants in the site visit is to learn as much information as possible about the firm, its operations, utility service needs and employee needs and it likewise will want to various information about the City of Monticello to determine if it is a good fit for its operations and long-term growth. 2. Prospect List Update - See Exhibit A. PROSPECT LIST 07/03/2024 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 5/22/2018 3/19/2021 2 28 2022 6/16/2021 10/28/2021 2/7/2022 4/28/2022 Karlsburger Foods Project Orion Project Emma II Project UBAA Project Stallion Project Shepherd III Project Cougar Food Products Mfg. Warehouse-Distributi on Light Ind -Assembly Child Care Services Technology Service Lt Assembly Distribution Precision Machining -Mfg. Facilty Expansion New Construction New Construction New Construction or Exist New Construction New Construction New Construction 20,000 sq. ft. +/- 832,500 sq. ft. 20,000 sq. ff. 5,000 sq. ft. 42,000 sq. ft. 75,000 sq. ft. 35,000 to 45,000 sq. ft. 42 0 0 0 10 to 20 500 4 14 to 19 40 75 38 $4,500,000 $125,000,000 $1,350,000 $2,000,000 $3,600,000 $10,500,000 $4,700,000 On Hold Active Search Active Search Act Search Active Search Active Search Active Search 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft. 0 500 $90,000,000 Active Search 10/28/2022 Project JAG Mfg. New Construction 300,000 sq. ft.? 0 50? $70 to $80,000,000 Active Search 11/9/2022 Project Tea Mfg New Construction 25,000 sq. ft. 55 20 $5,800,000 Active Search 12/13/2022 Project Love Mfg New Construction 250,000 130 $24,000,000 Active Search 4/20/2023 Project Lodge DH1 Lodging -Service New Construction ? ? $9,500,000 to $12,500,000 Active Search 4/20/2023 Project Lodge RS2 Lodging Service New Construction ? ? $9,500,000 to $12,500,000 Active Search 5/30/2023 Project Flower-M &M Commercial Concept Expansion ? ? ? Concept PROSPECT LIST 07/03/2024 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 6/9/2023 Project Pez Mfg New Construction 6,000 to 8,500 sq. ft. 12 2 $1.300,000 Active Search 7/1/2023 Project V-MOB MOB New Construction 175,000 +sq. ft. ? $21,000,000 Identified Site 8/16/2023 Project Lodge RT4 Lodging-Hopsitality New Construction 98 Room Hotel N/A 30 $12,500,000 to $13,600,000 Identified Site 8/31/2023 Project Enclave- W300 Industrial - Warehouse- Distr New Construction 300,000 sq. ft. N/A ? $30,000,000 to $34,000,000 Active Search 9/19/2023 Project Panda #4 Sz Childcare Facility New Construction ? N/A ? $2,000,000+/- Active Search 10/12/2023 Project Fun Entertainment Expansion 2,400 sq. ft. N/A 4 $200,000 Concept 1/17/2024 Project Tex Industrial New Construction 500,000 sq. ft. 0 100 $500,000,000 Active Search 1/17/2024 Project G Industrial New Construction 1,000,000 sq. ft. 0 ? $120,000,000 Focused Search 1/2/2024 Project Simpl Office New Construction -Build Out 13,303 sq. ft. 23 50 $2,000,000 Identified Site 2/12/2024 Project Lodge- MSMWDC Lodging -Hospitality New Construction ? 0 10 $12,000,000 Identified Site 3/5/2024 Project Panda 20- MS Child Care Facility New Construction 20,000 sq. ft. 0 20 $2,000,000 Active Search 3/29/2024 Project ET-BB-12-9 Industrial Relocate - Existing Bldg 12,000 sq. ft. 12 $1,150,000 Identified Site PROSPECT LIST 07/03/2024 Date of Contact Company Name Business Category Project Description Building -Facility Retained Jobs New Jobs Total Investment Project Status 4/12/2024 Project Rest B52 Restaurant New build out -Finish 5,000 sq. ft. +/- 0 15 1500000 +/- Identified Site 5/30/2024 Project EP-BDDC LACW Data Center New Construction ?? ?? ?? Identified Site 5/31/2024 Project DC2-NWG-GB Data Center New Construction ?? 0 40 ?? Active Search 6/28/2024 Project Maxwell Industrial New Construction 150,000 to 200,000 sq. ft. 0 175 $187,000,000 Active Search Contacts: M = 02 YTD = 24