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EDA Agenda - 07/24/2024AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, July 24, 2024 — 7:00 a.m. Academy Room, Monticello Community Center 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, Sarah Rathlisberger 1. General Business A. Call to Order B. Roll Call 7:00 a.m. 2. Consideration of Additional Agenda Items 3. Consent Agenda None 4. Public Hearing A. PUBLIC HEARING Continued — Fagade Improvement Forgivable Loan for Jon and Lucille Murray's Dance Studio at 155 West Broadway and Sleep Concepts at 149 West Broadway Street 5. Regular Agenda A. Consideration of GMEF Loan Pre -Application from Hair Obsession, LLC-AIC Properties, LLC in the amount of $95,000 to fill a financing gap for acquisition of a commercial building located at 213 Pine Street B. Consideration of approving Block 34 Redevelopment Opportunity RFI (Request for Information) packet and further authorizing staff to proceed with solicitation of developer responses 6. Other Business A. Consideration of Economic Development Manager's Report 7. Adjournment 07/24/2024 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 7/24/2024 Reviewed by: Approved by: Community Economic Development City Administrator Director, Finance Director ACTIONS REQUESTED Motion to continue the Business Subsidy Public Hearing to the August 14, 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 ongoing delays in the process of gathering revised quote -bids for the proposed facade work related to both 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 early and mid -June with all 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 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 August 14, 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 approximately $235,000 +/-. Funding for the Facade Loan Program is in a dedicated sub -fund of the EDA General Fund. After the EDA acted at the July 10, 2024, 07/24/2024 regular meeting to allocate addition funding to the Facade Program, the available funding now stands at $245,003.07. This funding is believed to be a close approximation of the cost for three properties in the target area with partially completed applications in for review at this time. Administrative costs related to the proposed facade loans are expected to total $1,500 +/. II. Staff Workload Impact: City staff involved in the facade 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. III. 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 the 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 regular EDA meeting on August 14, 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 EDA Agenda: 7/24/24 5A. Consideration of Greater Monticello Enterprise Fund (GMEF) Loan Pre -Application from Hair Obsession, LLC-AIC Properties, LLC in the amount of $95,000 Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 7/24/24 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development Director, City Administrator Finance Director ACTION REQUESTED Motion to authorize staff to proceed with further due diligence related to the GMEF loan credit application request from Hair Obsession, LLC-AIC Properties, LLC and preparation of a loan agreement for consideration at a future meeting. Motion of other. REFERENCE AND BACKGROUND The EDA is asked to consider a GMEF Loan Pre -Application request in the amount of $95,000 from Hair Obsession, LLC-AIC Properties, LLC. The company is seeking gap funding assistance to purchase an existing commercial building located at 105 West Third Street. The total project investment is estimated to be $600,000. This property is the former site of the Rustech Microbrewery business which is planning to relocate and restructure its business in light of the brewing industry saturation and changing tastes for beer in the region and nation. Hair Obsession likes this location because it is only 3 blocks from their current salon shop. Hair Obsession has been in business for over 10 years with 8 of those in Monticello. It is currently located in a 1,900 square foot leased space at 534 Walnut Street (directly across the street from the MCC building). The salon's continued growth is driving the need for a larger space. Additionally, increasing rental rates in their existing lease is contributing to the desire to operate out of an owned space. Lori and Joel Obia, owners of Hair Obsession, have determined that they want to keep the salon in Monticello. Hair Obsession currently has 14 employees. It also has numerous independent contractor stylists renting chairs. Financing information for the proposal is included in the loan application. North Star Bank is the providing a first mortgage loan in the amount of $405,000, which is 67.50 percent of the total cost, to the Obias for the property purchase and renovations. The owner equity cash injection into the proposal is $100,000 or 16.70 percent of the total funding. A $95,000 GMEF loan would fill the remaining gap; about 15.80 percent of the project. The overall proposed funding structure for the project is shown below. EDA Agenda: 7/24/24 Funding Sources Entity Amount Percent Bank $405,000 67.50 Owner Cash Equity $100,000 16.70 GMEF Loan $ 95,000 15.80 Total $600,000 100.00 Funding Uses Item Amount Percent Property Purchase $525,000 87.50 Equipment -Property Improvements $ 60,000 10.00 Offsite Development Costs $ 15,000 2.50 Total $600,000 100.00 The proposed project is an eligible use of the GMEF funds. The current available GMEF Loan Program cash balance is approximately $769,000 +/-. The loan request equates to about 12.40 percent of the Fund balance. Per the GMEF Loan Polices, no more than 50 percent of the Fund's available dollars can be loaned out to a single borrower. Only 30 percent of a project can be funded through GMEF dollars. Currently, there is no stated minimum fund balance requirement in the GMEF Loan Policies and no established ratio for commercial to industrial loan amounts. I. Budget Impact: The budget impact from the proposed GMEF Loan request is a direct reduction in the cash balance of the loan fund. If approved, the funding would draw the Fund's cash balance down to $674,000 +/-. The EDA has incurred no direct costs in the review of the pre -application. If the EDA determines it is interested in moving forward, attorney fees and loan review -underwriting fees will be incurred, though most, if not all, of those costs will be passed onto the applicant. II. Staff Workload Impact: The Community Development Director, Finance Director and Economic Development Manager have committed time to completing tasks related to the review of the proposed loan request. Additional time toward this effort involves report preparation and EDA meeting presentation. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: The Economic Development section of the Comprehensive Plan encourages formation of an effective economic development effort which creates a supportive business environment and builds a vibrant, thriving local economy. EDA Agenda: 7/24/24 STAFF RECOMMENDATION Staff defer to the EDA regarding next steps related to the GMEF Loan request from Hair Obsession, LLC-AIC Properties, LLC. The loan request meets the general intent and spirit of the GMEF Loan Policies. An initial review of the Development Assistance Worksheet Scoring form for the proposal using a limited amount of available information indicates the proposal carries a score of 29.5 (the EDA scoring metric is attached as Exhibit C). This initial loan reviewed by the EDA is a critical decision point in regard to moving to the next step of a full application as well as incurring costs related to underwriting -loan analysis and drafting of loan documents. SUPPORTING DATA A. Hair Obsession GMEF Loan Pre -Application B. Aerial Photo and Beacon Rpt. —103 Third Street West C. Economic Development Assistance Scoring Metrics D. GMEF Loan Policies CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY BUSINESS SUBSIDY APPLICATION BUSINESS ASSISTANCE FINANCING Legal name of applicant: �, ��1( C) V--c -Y,�-- Address: �2. �"' �-�--t �� a 557-?O ob `2 Telephone number: 2 -•.� (� 2.� Name of contact person: REQUESTED INFORMATION Addendum shall be attached hereto addressing in detail the following: 1. A map showing the exact boundaries of proposed development. 2. Give a general description of the project including size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property will be zoned. 4. A statement identifying how the increment assistance will be used and why it is necessary to undertake the project. 5. A statement identifying the public benefits of the proposal including estimated increase in property valuation, new jobs to be created, hourly wages and other community assets. 6. A written description of the developer's business, principals, history and past projects I understand that the application fee will be used for EDA staff and consultant costs and may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the EDA Board and be based on the costs incurred by the EDA prior to withdraw of the request for assistance. If the initial application fee is insufficient, I will be responsible for additional deposits. SIGNATURE Applicant's signature: CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY Application for Business Assistance Financing GENERAL INFORMATION: Business Name: P�l ��p-Q w .Qj sZ ,, L, Date: r ! � Address: 5 E) 2..y . S Lu Ft �� , 5 �1 -�I 2 rnA) 5538(� Type (Partnership, etc.):�-- . 1-- .� BIZ 7 Authorized Representative: Phone: �1 fl /�, L i Description of Business: 46 t'Y �p�►.� Legal Counsel: Address: FINANCIAL BACKGROUND: 1. Have you ever filed for bankruptcy? Iv 0 2. Have you ever defaulted on any loan commitment? Phone: 3. Have you applied for conventional financing for the project? Ov q-e—s 4. List financial references: a. Ct�r Gc,in�r inrto� v� ��-�-�1 ��'�1r� S-1 ��u,►� b. C. 0J, 5. Have you ever used Business Assistance Financing before? l O If yes, what, where and when? PROJECT INFORMATION: 1. Location of Proposed Project: -2. 1-1� Ptql-� 5t'Y,-P—C-t , fflotyl In , *] IQ 2. Amount of Business Assistance requested? j5 f 3. Need for Business Assistance: yu C,Csz. Oe-L-. 4. Present ownership of site: o�� Qty',A Ve4\YVA V- ,. 5. Number of permanent jobs created as a result of project? (0 6. Estimated annual sales: Present: �000 (aO-93-) Future: 000 7. Market value of project following completion: MM ' -- � .f,y� /C �7j Drz'tf r7°' 8. Anticipated start date: S't plz!� Completion Date: 9 1 --Z ti FINANCIAL INFORMATION: 1. Estimated project related costs: a. Land acquisition b. Site development ,(ny c. Building cost d. Equipment U0 LIU e. Architectural/engineering fee o, f. Legal fees g. Off -site development costs W so- 3 2. Source of financing: a. Private financing institution b. Tax increment funds c. Other public funds d. Developer equity s 000 I)U, D(,)L) 4 To Whom It May Concern: AIC Properties, LLC (our family business) is acquiring property 213 Pine Street, Monticello, MN. Half of the building will be occupied by Hair Obsession Salon Hair Obsession Salon has been in business for 10 years and has been in the City of Monticello for 8 years. The Salon currently has 14 employees and occupies a 1,900 square footage workspace. However, this workspace is not enough to accommodate the growth of the clientele. Acquiring a bigger workspace like the property mentioned above (2,500 square feet) will support the needed growth of Hair Obsession Salon, its clientele base and remain in the City of Monticello. Upon completion of this expansion project, the salon will create 6 additional new jobs for the city of Monticello. We are requesting a $95,000 loan at 5.75% interest rate, with a 5 year term and 20 years repayment plan to support this endeavor. We appreciate all the support from this group in making the city of Monticello a great place to build and expand businesses. Lori, Owner, Hair Obsession Salon Location: 213 Pine Street, Monticello Existing Building. Proposed project will allow the Hair Obsession Salon to relocate to the Rustech Brewery Site. 2s�R vi e Big t 14 h � _ c W st y Bridge Park g M'ticello sr �ryti er�adk'aYsr �Rr►p� . 5sr ty Ards �c .. _ SrhSt Fern Sr rF z� y 6jrr Monticello DMV� /r. �,� Mi 26 so Map data �'202a Terms Report a map error 7/18/24, 2:19 PM Beacon - Wright County, MN - Report: 155010035040 Wright County, M N Summary Parcel ID 155010035040 Property 213PINE ST Address MONTICELLO MN 55362 , Sec/Twp/Rng 11-121-025 Brief Tax SECT-11 TWP-121 RANGE-025 ORIGINAL PLAT MONTICELLO Description BLOCK-035 TH PRT OF LTS 4&5 BLK35 DES COM SE COR OF LT5TH NWLY ALG SLY LN OF LT5&4TO SW COR OF LT4 TH NELY ALG W LN76.24FT TH SELY132.41FT TO PT ON E LN OF LT5 76.26FT NELY OF SELY COR TH SWLY76.26FT TO POB (Note: Not to be used on legal documents) Class 233 - 3A COMMERCIAL LAND AND BUILDING District (1101) CITY OF MONTICELLO-0882 School District 0882 (Note: Class refers to Assessor's Classification Used For Property Tax Purposes) GIS Acres Parcel: 155010035040 Acres: 0.23 Acres USAB: 0.23 Acres ROW: Sq Ft:10,074.39 Owner Cfd Owner Fee Owner PrimaryOwner WILLIAM BURT & MARNE P & MARIE R FLICKER WILLIAM BURT & PENNY BURT 1949 20TH ST NW PENNY BURT 6328 86TH ST NE GRAND RAPIDS MN 55744 6328 86TH ST NE MONTICELLO MN 55362 MONTICELLO MN 55362 Land Unit Eff Seq Code CER Dim 1 Dim 2 Dim 3 Units UT Price Adj 1 Adj 2 Adj 3 Rate Div % Value 1 DOWNTOWN 1 0 0 0 0 10,074.000 S 18.000 0.00 0.00 0.00 17.997 1.000 181,300 2 CONCRETE 2.50 SF 0 0 0 0 5,500.000 U 2.500 0.00 0.00 0.00 2.509 1.000 13,800 Total 10,074.000 195,100 Buildings Building 1 Year Built 1980 Architecture N/A Above Grade Living Area 0 Finished Basement Sqft 0 Construction Quality 04 Foundation Type CONC BLOCK Frame Type (C) Frame with Concrete Size/Shape Exterior Walls CONC BLOCK Windows N/A Roof Structure FLAT Roof Cover N/A Interior Walls N/A Floor Cover N/A Heat FORCED AIR Air Conditioning CEN.EVAP Bedrooms 0 Bathrooms N/A Gross Building Area 4000 OBY Card 1 Descr Full Description COMMERCIAL COMMERCIAL OBY TOTAL VALUE Type Quantity Year Size Area Value 0001 1 1980 280,400 $331,200 $331,200 https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=1310&KeyValue=155010035040 1/4 7/18/24, 2:19 PM Sales Beacon - Wright County, MN - Report: 155010035040 Adjusted S.S. Multi Instr Qualified Sale Sale Sale eCRV Sale S.S. Rjt. Transact Parcel Type Sale Sale Date Book Page Type Buyer Seller Price Price # eCRV Type Rcmd. Rsn. Num N CD U 7/19/2021 1- BURT,WILLIAM FLICKER,MARNE $479,000 $479,000 1286389 1 10- Improved & PENNY & MARIE PRIOR I NTE Recent Sales In Area Sale date range: From: 07/18/2021 To: 07/18/2024 Sales by NiE zighbo nood Sales by Subdivision 1500 Feet v Sales by Distance Transfer History Grantor Grantee FLICKER MARNE P; FLICKER MARIE R BURT WILLIAM; BURT PENNY Note: Transfer History data is from LandLink beginning01/01/200,1 Valuation Recorded Date Doc Type Doc No 8/4/2021 CFD 1479109 2024 Assessment 2023 Assessment 2022 Assessment 2021 Assessment 2020 Assessment + Estimated Land Value $195,100 $119,100 $88,600 $88,600 $88,600 + Estimated Building Value $331,200 $331,200 $280,400 $269,200 $269,200 + Estimated Machinery Value $0 $0 $0 $0 $0 = Total Estimated Market Value $526,300 $450,300 $369,000 $357,800 $357,800 % Change 16.88% 22.03% 3.13% 0.00% 0.76% Taxation 2023 and 2024 taxation data can be found here 2022 Payable 2021 Payable Estimated Market Value $357,800 $357,800 - Excluded Value $0 $0 - Homestead Exclusion $0 $0 = Taxable Market Value $357,800 $357,800 Net Taxes Due $8,634.00 $8,605.65 + Special Assessments $0.00 $190.35 = Total Taxes Due $8,634.00 $8,796.00 % Change Taxes Paid Taxes Paid after 2022 can be found here Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1743335 12/14/2021 2021 $0.00 $0.00 $8.80 ($184.72) 1737310 10/21/2021 2021 $0.00 $0.00 $175.92 ($4,398.00) 1696270 5/13/2021 2021 $0.00 $0.00 $0.00 ($4,398.00) 1643630 9/25/2020 2020 $0.00 $0.00 $0.00 ($4,453.00) 1611643 5/8/2020 2020 $0.00 $0.00 $0.00 ($4,453.00) 1567534 10/3/2019 2019 $0.00 $0.00 $0.00 ($3,570.00) 1534454 5/9/2019 2019 $0.00 $0.00 $0.00 ($3,570.00) 1491134 10/8/2018 2018 $0.00 $0.00 $0.00 ($3,316.00) 1458748 5/10/2018 2018 $0.00 $0.00 $0.00 ($3,316.00) 1408380 9/28/2017 2017 $0.00 $0.00 $0.00 ($3,730.00) 1370339 5/5/2017 2017 $0.00 $0.00 $0.00 ($3,730.00) 1347350 12/9/2016 2016 $0.00 $0.00 $0.00 ($3,907.00) https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypefD=4&PagelD=1310&KeyValue=155010035040 2/4 7/18/24, 2:19 PM Beacon - Wright County, MN - Report: 155010035040 Receipt # Receipt Print Date Bill Pay Year Amt Adj Amt Write Off Amt Charge Amt Payment 1345514 11/22/2016 2016 $0.00 $0.00 $0.00 $156.28 1338125 10/25/2016 2016 $0.00 $0.00 ($156.28) $3,907.00 1288156 5/13/2016 2016 $0.00 $0.00 $0.00 ($3,907.00) Photos Sketches 1001 353 - F;ETAIL. STORE 400f https://beacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=1310&KeyValue=155010035040 3/4 7/18/24, 2:19 PM Map Beacon - Wright County, MN - Report: 155010035040 No data available for the following modules: Land GA/RP, Extra Features, OBY (Working 2025 Assessment), Taxation (Preliminary 2025 Taxes Payable). i lit lo i uo Oil-, IS I! I Lt-flUICU l'UT I tf;vItni,,E Pulpo�,e�Ul it y. It It! I!Ituli Ila tlUl I I � not suitable for legal, engineering, or surveying purposes. Wright County does not guarantee the Schneider accuracy of the information contained herein GEOSPATIAL I User Privacy Policy I GDPR Privacy Notice Last Data Upload: 7/18/2024,1:19:52 PM https:Hbeacon.schneidercorp.com/Application.aspx?ApplD=187&LayerlD=2505&PageTypelD=4&PagelD=l 31 O&KeyValue=l 55010035040 4/4 Name of Project: a ,, r O�o s e s s# Ot3 1. Number of New Employees Point Value Number +1 1-5 +2 _ +3 16 - 30 +4 31-50 +5 51 + 2. Number of lobs Per Acre Point Value Number Per Acre +1 1— 2 per acre +2 3 — 4 per acre +3 5 — 6 er acre +4 6 — 7 per acre +5 8 + per acre 3. Average Wages for New Jobs Point Value Pay Range Dollar Weighting +1 $15,000-24,999 $20,000 +2 $25,000-29,999 $27,500 (:+3 ��3�,�O00-44999 ;37 +4 $45,000-59,999 $52,500 +5 $60,000 + $60,000 4. Public Assistance per New Jobs DUO Public Assistance LNumber of new jobs created 2 rajIigIza2-y- Total Empl. Weighted $ Amt. S 5 $ Z6 z b go $ I g33 Public Assistance per new job Point Value Public Dollars Invested Per New Job +1 Over $50,000 +2 $40,000 to $49,999 +3 $30,000 to $39,999 +4 $20,000 to $29,999 + 0 to 19 99 IM S. Number of Years of TIF Assistance Needed 9 years +1 8 vears + 7 years or less 6. Developed Assessed Value Per Acre Point Value Value Per Acre +1 $150,000-199,999 +2 $200,000-349,999 +3 $350,000-499,999 +4 $500,000-599,999 +5 $600,000 + 7. Business Retention Point Value Number of Retained Jobs +0•S 1-5 jobs +1 6-10 jobs +1.5 11-30 jobs + 31-50 jobs +2•5 50-100 jobs +3 101 + jobs 3 8. Ratio of Private versus Public Investment in Proiect 15-0 D 00 Private Investment q �14 (7 0 0 EDA/Public Investment $ o d Total Investment 5 • _S ±C) Ratio of Private versus Public financing Point Value Ratio +1 over 2:1 +2 over 3:1 +3 over 4:1 +4 over 5:1 +5 6:1 or greater 9. Significant Community Impact Point Value Unsubsidized Spin -Off development potential +1 Low potential fors in -off of unsubsidized development +2 Moderate potential for spin-off unsubsidized development +3 High potential for spin-off unsubsidized development 10. Tenure in Business Operation Point Value Number of Years in Business +1 Five years or less (:::+2��Qo10 years +3 11 years or more 4 11. Environmental Impacts Point Value Types of Environmental Issues +1 Enhances the environmental aspects of a site via clean-up of contaminants or improved aesthetics via unique site or architectural features C:-0- No impacts Noise ssues -2 Noise and negative visual aesthetics -3 Noise, odors, dust, traffic and negative visual aesthetics WORKSHEET SUMMARY Factors Total Points #1. Number of New Employees (1-5) #2. Number of Jobs Per Acre (1-5) #3. Average Wages for New Jobs (1-5) #4. Public Assistance Per New Job (1-5) #5. Number of Years of TIF Assistance (1-2) #6. Developed Assessed Value Per Acre (1-5) #7. Business Retention (# of Jobs) _ (.5-3) #8. Ratio of Private to Public Invest. _� (1-5) #9. Significant Impact/Comp Plan Goals (1-3) #10. Number of Years of Business Oper. (1-3) #11. Environmental Impacts _ (-3 to +1) Total Points - Total Possible Points = 42 Total Worksheet Points Equated to Land Price Total Overall Points Price for Otter Creek Land 1-5 $3.16 per sq. ft. (No TIF) 5-10 $3.16 per sq. ft. with TIF as a land reimbursement to developer 11-15 20 percent discount from market price = $2.53 per sq. ft. 16-20 40 percent discount from market price = $1.90 per sq. ft. 21-25 60 percent discount from market price = $1.26 per sq. ft. 26-30 80 percent discount from market price = $.63 per sq. ft. 31-42 100 percent discount from market price = $1.00 for the entire lot 5 CITY OF City Policy and Monti eRo Procedure SECTION: FINANCE NO: FIN - REFERENCE: Date: Next Review Date: TITLE: GREATER MONTICELLO ENTERPRISE FUND POLICY 1.0 Purpose The purpose of the Greater Monticello Enterprise Fund ("GMEF") is to encourage economic development by supplementing conventional financing sources available to existing and new businesses. This program is administered by the City of Monticello Economic Development Authority (the "EDA") and participating lending institution(s). GMEF loans are made to businesses to help them meet a portion of their financing needs. The loans are meant to be a secondary source of financing, provide gaps in private financing, and assist in securing other grants. All loans must meet four or more of the criteria established in the Definition of Public Purpose section below. The Greater Monticello Enterprise Fund is administered by the EDA. It is the responsibility of the EDA to assure that loans meet the public purpose standard and comply with all other GMEF policies as defined in this document. DEFINITION OF PUBLIC PURPOSE GMEF Loans must meet at least one (1) of the following public purposes (if the EDA finds that the public purpose described in item 2 listed below is met, the EDA must find that the GMEF loan meets at least one additional public purpose listed below): 1. To provide loans for credit -worthy businesses which create new jobs. • One job is equivalent to a total of 37.5 hours per week. • At least 90% of the jobs created must pay at least 160% of the federal minimum wage, exclusive of benefits, for individuals over the age of 20 during the term of assistance. Annual written reports are required until repayment of the assistance. Failure to meet the job and wage level goals requires partial or full repayment of the assistance with interest. 2. To provide loans for credit -worthy businesses that would increase the community tax base. 3. To provide loans to credit -worthy industrial or commercial businesses (new or existing) that would allow the ability to improve or expand their operation. Factors including but not limited to the following will be taken into account: • Type and size of the business • Product or service involved • Present availability of the product or service within the City of Monticello • Compatibility of the proposed business as it relates to the comprehensive plan and existing zoning policies, • Potential for adverse environmental effects of the business, if any. 4. In the event job creation is not a viable option, credit -worthy businesses have the ability to demonstrate public purpose by means of job retention. 2.0 Policy Eligible Businesses: • Industrial and commercial businesses. • Businesses currently located or to be located within the City of Monticello. • Credit -worthy existing businesses. • Start-up businesses with worthy business plan and/or pro forma in a form acceptable to the EDA (historically non credit -worthy businesses will be denied). Acceptable Private Financing Methods: • Companion Direct Loan: The GMEF is subordinate to the primary lender. • Participation Loan: The GMEF participates in a portion of the loan. • Guarantee Loans: The GMEF guarantees a portion of the bank loan. *Interest rate cap is subject to EDA approval Acceptable Uses of GMEF Proceeds: • Real property acquisition, development, & rehabilitation improvement costs including but not limited to the following: ■ Land Acquisition ■ Engineer/Design Inspection Fees ■ Building Permit Fees ■ Architect Fees ■ Building Materials ■ Soil Borings ■ Construction Labor ■ Appraisal Fees ■ Landscaping ■ Legal Fees ■ Grading ■ Environmental Studies ■ Curbing/Parking Lot ■ Recording Fees ■ Title Insurance • Machinery and equipment: Personal property used as an integral part of the manufacturing or commercial business, with a useful life of at least three years. Acquisition costs would include freight and sales taxes paid. As a general rule, office equipment would not qualify. Terms and conditions: • Loan Size: Minimum of $25,000 and maximum not to exceed 50% of the remaining GMEF balance • Leveraging: Minimum 60% private/public Non-GMEF, Maximum 30% GMEF, Minimum 10% equity. • Loan Term: Personal property term not to exceed life of equipment (possibly up to 10 years). Real estate property maximum of 10-year maturity amortized up to 30 years. Balloon payment at 10 years. • Interest Rate: Fixed rate not less than 2% below prime rate as published in the Wall Street Journal on date of EDA approval, with a minimum interest rate of 1.0%. • Loan Fee: Minimum fee of $500 but not to exceed 1.5 % of the total loan. Fees are to be documented and there shall be no duplication of fees between the lending institution and the GMEF. Loan fee may be incorporated into project cost. EDA retains the right to reduce or waive loan fee or portion of loan fee. Fee to be paid by applicant to the EDA within 5 working days after City Council approval of GMEF loan. The fee is non-refundable. • Pre -payment Policy: No penalty for pre -payment • Deferral of Payments: ■ Extending a balloon payment will require a verification letter from two lending institutions stating the inability to refinance and is subject to approval by the EDA. ■ Monthly payments may be deferred for a determined period of time upon approval by the EDA. • Late Payment Policy: Failure to pay principal or interest when due may result in the loan being immediately called. In addition to any other amounts due on any loan, and without waiving any right of the Economic Development Authority under any applicable documents, a late fee of $250 will be imposed on any borrower for any payment not received in full by the Authority within 30 calendar days of the date on which it is due. Furthermore, interest will continue to accrue on any amount due until the date on which it is paid to the Authority, and all such interest will be due and payable at the same time as the amount on which it has accrued. • Assumability of Loan: None • Business Equity Requirements: Subject to type of loan. The EDA will determine appropriate and applicable business equity requirements on a case by case analysis, utilizing normal lending guidelines. • Collateral: ■ Liens on real property in project (mortgage deed). ■ Liens on real property in business (mortgage deed). ■ Liens on real property held personally (subject to EDA approval, homestead exempt). ■ Machinery and equipment liens (except equipment exempt from bankruptcy). ■ Personal and/or corporate guarantees (requires unlimited personal guarantees). • Non -Performance: An approved GMEF loan shall be null and void if funds are not drawn upon or disbursed within 180 days from date of EDA approval. • Non -Performance Extension: The 180-day non-performance date can be extended up to an additional 120 days, upon approval by the EDA. A written request must be received 30 days prior to expiration of the 180-day non-performance date. • Out of Pocket Fees: Responsibility of the GMEF applicant. • Equal Opportunity: The Greater Monticello Enterprise Fund is operated as an equal opportunity program. All applicants shall have equal access to GMEF funds regardless of race, sex, age, marital status, or other personal characteristics. • Participating Lending Institution(s): ■ Participating lending institution(s) shall be determined by the GMEF applicant. ■ Participating lending institution(s) shall cooperate with the EDA and assist in carrying out the policies of the GMEF as approved by the City Council. ■ Participating lending institution(s) shall analyze the formal application and indicate to the EDA the level at which the lending institution will participate in the finance package. • Loan Administration: City Staff shall collect applicable GMEF payments. City Staff shall assure City compliance with all applicable terms and conditions of the approved loan. All loan documents shall include the following: (i) Definition of loan default, agreements regarding notification of default; (ii) copy of primary lenders documents and (iii) provisions allowing the City to inquire on the status of the primary loan. LOAN APPLICATION PROCEDURES The EDA desires to make the GMEF loan application process as simple as possible. However, certain procedures must be followed prior to EDA consideration of a loan request. Information regarding the program and procedures for obtaining a loan are as follows: City Staff: City Staff shall carry out GMEF operating procedures as approved by the EDA and City Council. Staff is responsible for assisting businesses in the loan application process and will work closely with applicants in developing the necessary information. Application Process: 1. Applicant shall complete a preliminary loan application. Staff will review application for consistency with the policies set forth in the Greater Monticello Fund Guidelines. 2. If applicant gains initial support from lending institution and if the preliminary loan application is approved, applicant is then asked to complete a formal application. Formal application shall include a business plan which will include its management structure, market analysis, and financial statement. Like documentation necessary for obtaining the bank loan associated with the proposal is acceptable. Attached with each formal application is a written release of information executed by the loan applicant 3. If the preliminary loan application is not approved by staff, the applicant may request that the EDA consider approval of the preliminary application at the next regularly scheduled meeting of the EDA. 4. City staff shall analyze the formal application and financial statements contained therein to determine if the proposed business and finance plan is viable. City staff shall submit a written recommendation to the EDA. A decision regarding the application shall be made by the EDA within 60 days of the submittal of a completed formal application. 5. The EDA shall have authority to approve or deny loans; however, within 21 days of EDA action, the City Council may reverse a decision by the EDA, if it is determined by the City Council that such loan was denied/approved in violation of GMEF guidelines. 6. Prior to issuance of an approved loan, the EDA Attorney shall review and/or prepare all contracts, legal documents, and inter -creditor agreements. After such review is complete, the City shall issue said loan. REPORTING: City Staff shall submit to the EDA and City Council a semiannual report detailing the balance of the Greater Monticello Enterprise Fund. 3.0 Scope This policy applies to all projects that apply for and may receive GMEF assistance. 4.0 HISTORY Approval Date: August 31, 1999 Approved by: City Council Amendment Date: November 8, 2000 Approved by: City Council Amendment Date: April 24, 2001 Approved by: City Council HISTORY Amendment Date December 13, 2005 Approved by: City Council Approval Date March 23, 2009 Approved by: City Council Approval Date April 22, 2013 Approved by: City Council Approval Date February 27, 2017 Approved by: City Council Approval Date Approved by: City Council At a minimum, the EDA shall review the guidelines on an annual basis. Changes to the GMEF guidelines require approval by the City Council and the EDA. EDA Agenda: 7/24/24 5B. Consideration of Authorizing the issuance of the Block 34 Redevelopment OoDortuni RFI (Request For Information) packet Prepared by: Meeting Date: ® Regular Agenda Item Economic Development Manager 7/24/24 ❑ Consent Agenda Item Reviewed by: Approved by: Community Development Director City Administrator ACTION REQUESTED Motion to approve the Block 34 Redevelopment Opportunity RFI (Request for Information) packet and further authorize staff to proceed with solicitation of responses from developers. Motion of other. REFERENCE AND BACKGROUND The EDA is asked to approve the proposed Block 34 Redevelopment Opportunity RFI packet and further authorize staff to solicit developer responses. The EDA reviewed a draft Block 34 Redevelopment Opportunity RFI packet at its Workshop on July 10, 2024. Staff completed minor revisions to the draft RFI proposal based on the comments offered by the EDA members during the Workshop. If the EDA approves the final Block 34 Redevelopment Opportunity RFI packet, staff will compile a list of developers in the region and complete the task involved in sending it to them soliciting responses. The goal is to send the RFI packet out by the end of July. The RFI packet identifies the response date as September 16, 2024. This nearly 7-week time frame should allow thoughtful and in-depth responses from interested developers that are active in the region. I. Budget Impact: The budget impact from the proposed Block 34 Redevelopment Opportunity RFI packet is minimal. In-house staff completed the key works tasks related to preparing and reviewing the RFI packet. II. Staff Workload Impact: The Community Development Director and the Economic Development Manager have committed time to completing tasks related to the preparation and review of the Block 34 Redevelopment Opportunity RFI packet for final approval by the EDA. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: The Economic Development section of the Comprehensive Plan encourages strategic redevelopment and revitalization of the downtown area. The completion of the Block 34 Redevelopment Opportunity RFI packet and issuance of it to prospective developers is a solid launch step in this effort and overall goal. EDA Agenda: 7/24/24 STAFF RECOMMENDATION Staff recommend that the EDA approve the Block 34 Redevelopment Opportunity RFI packet and authorize issuance of the RFI to developers in the region. The Comprehensive Plan and the EDA Workplan both note the downtown redevelopment efforts, including Block 34, as a key objective. With the EDA's two recent parcel acquisitions (past 7 months), the City and EDA combined now own approximately 86.30 percent of contiguous land area in Block 34. In approving the RFI packet, the EDA is kickstarting a key step in soliciting developer responses which will then lead to subsequent discussion and decision steps by the EDA in the redevelopment efforts for Block 34 going forward. SUPPORTING DATA A. Proposed Block 34 Request for Information Packet B. RFI Exhibits Combined CITY OF L Monticello REQUEST FOR PROPOSAL DOWNTOWN MONTICELLO REDEVELOPMENT SITE RFI DUE DATE: SEPTEMBER 16, 2024 SUMMARY The City of Monticello and Monticello Economic Development Authority (EDA) are soliciting informational proposals for a redevelopment concept for the majority of "Block 34", a development parcel of approximately 2.0 acres in the city's core downtown. The development site is located at the intersection of MN TH 25 (Pine Street) and CSAH 75 (Broadway) and one block from the Mississippi River. See ExhibitAl —Site Location. DOWNTOWN VISION The City has adopted a Small Area Plan for its Downtown. See Exhibit B —Downtown Sma#Area Plan. The Small Area Plan sets the following vision for Downtown: Downtown Monticello is and shall remain the heart of the community. It is the birthplace of the City and the focus of civic activity. The Plan builds off those foundational qualities with a clear vision for the future of the core blocks of Downtown. The vision includes a commitment to retaining Broadway as Monticello's Main Street, supporting existing businesses, improving connections to and relationship with the River, and creating new downtown housing opportunities along Walnut and Cedar Avenues for existing and new Monticello residents. The Plan envisions a Downtown that is lively throughout the day and into the evening, 12 months of the year. A downtown that serves many purposes for many people — including dining, recreation, celebrating, gathering, shopping and living. The Small Area Plan also outlines four primary goals for Downtown revitalization: 0 Improve Pine Street for AB U.er. Shift the Center of Tow to Wtlnut And R—Adwey 000 000 . oon!ooa Encouuge S-A And Medium S..Jed Investments Become • River Town 11Page PROPERTY DESCRIPTION See Exhibit C — Site Detail. Site Opportunities The subject site, known as "Block 34", is in the heart of a reenergized downtown, situated at southeast corner of the busiest intersection in Monticello. Over 37,000 vehicles per day travel through the MN TH25 (Pine Street) and CSAH 75 (Broadway) intersection. The site is less than one half mile from 1-94 and one block from the Mississippi River. The City and EDA have been gradually acquiring property within the block to facilitate redevelopment, with over 85% of the block currently in public ownership. Data from a 2020 Ninigret Partners market study for the region found a $124 Million dollar sales capacity within the 2-mile area surrounding the core of Monticello, Site Constraints There are currently two operational municipal wells located on the block within the redevelopment area. The footprint of the wells is a relatively small area. However, sanitary sewer lines and other building development must be located beyond a 50' radius of the well itself (not the well house). See Exhibit D—Municipal WeiiDeveiopmentRadius. Redevelopment of the block will require removal of existing vacant one and two-story buildings and environmental remediation. The City has completed a series of environmental evaluations on the property. Additional environmental study and completion of the required environmental permit and remediation/response action processes is expected. Site Data Owner: City of Monticello/City of Monticello Economic Development Authority Acreage: 2.0 acres (approximate) Buildable footprint is variable based on parking requirements. Land Use: Downtown Mixed Use; Please refer to Exhibit F— Monticello 2040 Zoning: Central Community District, Pine Street and Walnut & Cedar Sub -Districts Please refer to Exhib&G—=2oningfor full details on the zoning district. Utilities: Electric, natural gas, water, sanitary sewer, etc. are all available on site. Height: Two-four stories; additional stories by Conditional Use Permit. Roads: Directly adjacent to MN TH 25/Pine Street (west); no direct access. Directly adjacent to CSAH 75 (east), right in/right out only. 2 1 P a g e Directly adjacent with full access to Cedar Street (east) and Third Street (south). Public Parking: On -street public parking Trails: Mississippi River Trail one block to the north along the Mississippi River; Broadway trail (sidewalk) along CSAH 75 frontage; sidewalks on Cedar and Third Streets. Parks: The Bridge Parks fronting the Mississippi River are located one block north SITE PLANNING CONSIDERATIONS Site Partnerships The City and EDA have confirmed the interest of a local professional office user to relocate to this block. This user requires ownership of their building and site pad and is seeking 10,000 square feet of single -story main floor Class A office space with dedicated day -time parking for 40 employees. Proposals should directly address locating this user within their redevelopment concept. There are two existing privately owned and occupied buildings on the block. Submitters will evaluate and identify how they will address these existing properties within their redevelopment concept. Site Configuration and Phasing The City and EDA are seeking to maximize this site's potential given its location and proximity to amenities. Submitters will provide a site plan and narrative which clearly identifies the proposed uses desired by the developer and the location of the intended uses. The developer's submittal must be clear in site layout, intended development square footage and floor area ratio, and parking requirements and location. Submitters will identify the proposed phasing of development, including how the development will address both the existing uses on the block and the prospective office user. DESIRED PROPERTY USE The City and EDA are interested in the developer's perspective on the uses most likely to be successful on the block, with development massing, layout and phasing to support those uses. The City and EDA have indicated that a mix of uses is preferred, including office professional and specialty eating and retail. These commercial uses are preferred along the Broadway and Pine frontages. The variety of uses should accommodate both employment during the daytime, as well as shopping and dining for evenings and weekends. This mix of uses would create activity on 3 1 P a g e the block at all times of day and complement other existing and future uses in the area, as well as accommodate varying parking demand. If residential opportunity is desired by developers, the goal would be to focus residential to the Cedar Street side and at a medium density scale to the extent possible. It is anticipated that development may occur in quarter block components, although depending on the developer's goals, a half block configuration could be possible. Massing of buildings to maximize usable square footage and noted partnerships is desired. Design of spaces should make the adjacent vehicle corridors less intimidating and scaled for pedestrians, including the addition of green and plaza spaces within the block. AMENITIES AND SURROUNDING BUSINESS COMMUNITY A recently completed (2024) mixed -use development is adjacent to the northwest. This $25 million project Includes 87 residential units and 30,000 square feet of retail, restaurant and office space. Core Downtown retail, restaurant and professional office spaces are located within 3 block walking distance. The majority of Downtown space is occupied. Concentration of multi -family and single-family residential in direct proximity. Monticello Community Center is located four blocks to the southwest, within walking distance. MCC is home to a recreational fitness center, indoor pool, climbing wall, meeting space and senior center. The City's premier riverfront parks, Bridge Parks, are located one block to the north. The parks are home to an arboretum, fishing pier, skating rink, basketball court, playground and are located directly on the national Mississippi River Trail (MRT). CITY INVESTMENT The City of Monticello and the Monticello Economic Development Authority are making significant investments for the redevelopment of this site. Previous investments include: 1. Acquisition of 118 East Broadway - $665,000 3. Acquisition of 216 Pine Street - $465,000 4. Acquisition of Corner Montgomery Farms Property - $665,000 5. Acquisition of BL Bikes/Bait Shop - $181,950 6. Acquisition of 130 East Broadway (Zoo) - $275,000 7. Relocation Expenses - $518,207 9. Environmental Study (to date) — 35,541 10. Demolition Expenses (to date)—47,550 Total City/Eda Investment To -Date: $2,853,248 4 1 P a g e REQUESTED INFORMATION SUBMITTAL The Monticello EDA will review the information responses on behalf of the City and EDA. Respondents are required to submit one (1) original and one (1) electronic copy of their information proposal to the contact person listed below. To facilitate effective evaluation by the City/EDA responses shall be limited to no more than ten (10) pages. All questions shall be emailed to the contact listed below and all questions will be answered in writing by email to all parties. At the discretion of the City, a short list of the most qualified respondents may be developed, and respondents may be asked to give a short presentation or interview as part of the evaluation and selection process. Respondents may be asked to provide additional information. To be considered complete, all proposals must include the following elements: 1. Cover letter describing your interest, your team and your concept. 2. Description of the development concept with specifics as to proposed: a. Square footage b. Floor area ratio and building height c. Use types d. Phasing plan 3. Conceptual site plan showing the layout of the proposed project as described in item 2 4. Market justification of the proposed use(s) 5. Estimated market value of the project when completed 6. Estimated project timeline 7. Developer's financial capability to complete the project. In this regard, the respondent should provide: a financing plan, anticipated sources of project financing (including proposed City/EDA participation), and financial capacity of respondent to perform obligations. PROPOSAL REVIEW AND SCORING At its sole discretion, the City of Monticello reserves the right to accept or reject any submitted proposal. Proposals will be evaluated and scored on a 1-10 scale for each of the following criteria: 1. Qualifications and experience of the developer(s) 3. Proposed use of the lot and fit with the City's vision for downtown 4. Conceptual design and site configuration / architectural style of proposed project 5. Market justification for the proposed use(s) and estimated investment 5 1 P a g e 6. Financial capacity of the developer(s) 7. Proposed timeline for the project: start of construction / project completion Proposals will be reviewed by City Staff and the Monticello Economic Development Authority, and a recommendation will be coordinated with the City Council. ANTICIPATED PROCESS The proposal process is a preliminary step to determine development interest, capacity and alignment with City goals. The Monticello EDA will review all submitted proposals and select development teams to proceed to interview. The goal of the EDA will be to select a development team for further negotiations on site acquisition and development. EXHIBITS A. Site Location B. Monticello Downtown Small Area Plan, Excerpts C. Site Detail D. Municipal Well Development Radius E. Site Images F. Monticello 2040, Excerpts G. Monticello Zoning Ordinance, Excerpts H. Environmental Documents - Available Upon Request 6 1 P a g e Exhibit A —Site Location Mississippi River V. 1 �t A. r �7 ) �`��,.�, �, i�.►. = Block 34 Site t'MINNESOTA� JI/.i- `. .� y s. ��-s•� 1,� Y• VW_ Wz 1 n — r 19 Ft 1-94 & MN TH 25 Interchange City of Monticello Downtown Small Area Plan h,__Icello, MN Prepared for: The City of Monticello ADOPTED BY CITY COUNCIL ON SEPTEMBER 25, 2017 Prepared by: Cuningham Group Architecture, Inc. Tangible Consulting Services CUNINGHAM _IgMonticello Background and Purpose The purpose of this Plan is to attract and direct investments on the core blocks of Downtown Monticello, MN over the next 10 years. The Plan advocates for solidifying Downtown as the heart of the community with a series of coordinated public and private investments. Together, these investments will create a human -scaled environment that encourages gathering, socializing, visiting and enjoying on a daily basis - throughout the year. The improvements outlined in this Plan aim to build on the unique qualities of Monticello to make the Downtown yet more attractive to those who have chosen to live and do business in the community. Specifically, the Plan seeks to promote Broadway Street as a storefront district with restaurants and specialty retail, celebrate the River for its recreational, connective and economic qualities, reinvigorate a downtown housing market with multiple, appropriately scaled, infill projects, and improve the experience of Pine Street for all users. The plan is ambitious, but achievable. Over time and upon completion, the plan would usher in up to 500 new units of downtown housing, new restaurants overlooking the river, and unique retail and services on Broadway. Momentum can be established in the next few years. Primary projects to be completed within five years include: redevelopment of Block 52, Walnut Street connection to River Street and infill housing on Walnut Street. Implementation of this Plan will create two legacies. The first will be a revitalized Downtown with an economy and attractions that benefit all residents of Monticello. Equally important, however to the physical improvements described above will be the legacy of new partnerships and civic cooperation that are essential to and will result from coordinated actions. The ideas set forth in this Plan come from the vested interest of the Monticello community through a broad public outreach effort. The realization of these ideas rely on a coordinated, cooperative, and active public sector working in tandem with an entrepreneurial private sector The result will be a lively Downtown for all in Monticello, a place that embodies both its history and future aspirations. Goals Improve Pine Street for All Users CNI Shift the Center of Town to Walnut and Broadway 7 111 �111 1®11 � 111'111 ■III ■ 1 1■111 1 " ■ 1 ■ 1 Encourage Small and Medium Scaled Investments "_X 4 err ��': art, -.��,• �:�-"� ��;:, p� �� _.�--.«�., es • . " .� ,•; � wry, � � ,•'- s�•'�'��,�i �, �, � - • . •. y - Become a River Town N Downtown is For Everyone Downtown Monticello is and shall remain the heart of the community. It is the birthplace of the City and the focus of civic activity. This Plan builds off those foundational qualities with a clear vision for the future of the core blocks of Downtown. The vision includes a commitment to retaining Broadway as Monticello's Main Street, supporting existing businesses, improving connections to and relationship with the River, and creating new downtown housing opportunities along Walnut and Cedar Avenues for existing and new Monticello residents. The Plan envisions a Downtown that is lively throughout the day and into the evening, 12 months of the year. A downtown that serves many purposes for many people - including dining, recreation, celebrating, gathering, shopping and living. Illustrative Master Plan The Plan above describes a potential long term build out of the core blocks of Downtown Monticello. Character Area! Similar to the Embracing Downtown Plan, the Plan divides the study area into four different character Areas. The purpose of this is to create sub -areas in downtown, each with its own identity and purpose and direction. The character areas are developed based on their context and their future role in the downtown. Typically each character area is a mix of uses, but also has a dominant use. Character Area: Riverfront A redesigned Park with an amphitheater and better relationship to Downtown will help connect the River to Downtown Character Area: Walnut Street and Cedar Street Walnut and Cedar Streets will fill in with new housing (2-4 stories) that adds to the market strength of downtown and provides additional housing choices for new and existing residents of Monticello. Their intersections with Broadway will be improved to make it easier to walk to the Riverfront Character Area: Broadway Monticello's Main Street will transition over time from a street with primarily services, to one with unique retail and restaurants. C Character Area: Pine Street (TH 25) The community will reclaim Pine Street by maintaining it's width and adding pedestrian amenities and local serving commercial uses. City of Monticello Downtown Small Area Plan I Executive Summary Project Goals Shift the Center and Double Down on Broadway. Over time the travel and use patterns of Downtown have changed - altering the overall experience of downtown. Up until 1960, despite Broadway's designation as a State Highway (152) most travel was local. However, as the region grew, Monticello became a crossroads - thereby burdening Broadway and Pine Street with high volumes of through traffic and widened streets. Today, the Broadway / Pine Street intersection is one of the most traveled intersections in the region. Whereas that quality makes for great visibility, it also makes for a poor pedestrian experience and poor access to adjacent properties. Broadway, west of Pine Street, is relatively lightly traveled and unlike Broadwway east of Pine Street, it has retained its pedestrian scale. Furthermore, the City has developed successful parks at the end of Cedar Street and Walnut Street. Therefore, an opportunity exists to fully extend Walnut and Cedar Street down to the park and grow the downtown mercantile district towards the riverfront along Broadway. Improve the Pine Street Experience for Everyone. Whether passing through Monticello along Pine Street (TH 25), trying to cross Pine Street by foot, or going to a business along Pine Street, the experience of using Pine Street is generally a negative one for all users. The environment of Pine Street projects a negative image and it is a divider between the east and west side of the town. Whereas Pine Street will always be a heavily traveled street, it does not need to be a negative experience. The community can take it back, claiming it for more appropriate development types, making it safer, more pleasant, and attractive for all users. 111 �111 1®11 � 111'lll ■III ■ 1 1■III 1" ■ 1 ■ 1 Lots of Small Investments, a few medium ones and just one or two big ones. Monticello, despite it's growth, is proud to be a small town. Small towns develop charm and character through a series of small incremental investments that together add up to help a place become memorable and beloved. Simple investments such as new awnings, improved lighting and well maintained landscaping can make a big impression. Small buildings that fit on vacant parcels or otherwise underutilized land can happen quickly - adding vitality to a community. By promoting a high quantity of smaller investments (1/4 block and smaller) and medium scaled redevelopment projects (up to 1/2 block in scale), the Downtown will become more diverse, more lively, more responsive and adaptable to changes in the market place. A few medium scaled investments, warranted by a strong market or a strategic need, are important and valuable. But they should be carefully scaled and implemented so as to not disrupt the fragile fabric of the small town. Engage and love the riverfront. Go beyond the Swan. Great places have unique assets that differentiate them from others. Monticello has the Mississippi River. This defining feature can be further utilized to the benefit of Monticello residents and businesses. A riverfront that is well connected with blue and green trails, is publicly accessible and is activated throughout the day and the year can become a defining feature for the City and an important driver of economic activity. City of Monticello Small Area Plan I Goals and Objectives Walnut Street and Cedar Street Walnut and Cedar Streets Character Area: The recommendations and guidelines on this page pertain to the area colored on this diagram Walnut Street and Cedar Street are important corridors to the River as well as transitions between the commercial areas of downtown and the in -town neighborhoods. In order to perform in this capacity, the Plan encourages new housing to infill vacant lots and eventually for single family housing to transition to medium density housing. Live/work units or small service/production (such as insurance agent or jewelry maker) are permitted. In addition, the Plan recommends improvements to the street that will accommodate pedestrian and bike access to the River. This includes parallel parking, aligned sidewalks and crosswalks, and curb extensions at Broadway. Create a pedestrian promenade to the 0 Riverfront with wide continuous sidewalks and well marked crosswalks Infill vacant lots and redevelop underutilized 0 parcels with housing in small apartments or townhouses. Small service or production uses are permitted within these and existing buildings. OEncourage new housing to face Walnut and Cedar Street, with multiple doors facing the street. OLocate all parking towards the middle of the block, accessed via a rear lane shared with other properties on the block. Encourage small and medium scaled residential buildings © (3-5 stories, 1/4to 1/2 block) that prioritize pedestrian scale and walkability. Perspective along Walnut Street, looking north towards the River. I r Y ELLv P m P I. X X X )< .r %e %, 8' 12' 8' 24' 8' 12' 8' I, .I 80' RO W River Street Broadway 3rd Street 4th Street Sth Street «>o�o tracks 7th Street Walnut Street Promenade to the River Proposed Parallel Parking Section of Walnut and Cedar Street On -street parking is important throughout Downtown. Parallel parking will not require an easement and is desireable in front of residential buildings. Diagonal parking requires an easement and yields 50% more parking spaces. City of Monticello Downtown Small Area Plan I Character Areas M Walnut Street and Cedar Street Guidelines Facade and Frontage • Porches and/ or dooryards are encouraged for all ground floor residential units. • Dormers and bay windows are encouraged to create a pedestrian scaled facade • Upper story balconies are encouraged. • Courtyards are permitted along 1/2 of a front property line. Public Realm • 6'-10' sidewalk, aligned across intersections and along the front of blocks. • On street parking for visitors to Downtown • Clearly marked crosswalks to accommodate pedestrian and bike access between the Community Center and the Riverfront Precedent Images �ass429 r Massing and Orientation • Buildings should be between 2 and 4 stories. • Buildings should be primarily oriented to Walnut and Cedar Street to create a comfortable pedestrian environment. • Dormers and roof articulations should be used to reduce the scale of buildings if buildings are longer than 100' in length. Building Use and Location • Primarily residential uses between the Civic Center and Walnut Street. Small scale service and commercial businesses permitted on corner of 4th and Cedar and 4th and Walnut. • Buildings oriented toward front (street) and front corners City of Monticello Downtown Small Area Plan I Character Areas M Pine Street Pine Street Character Area: The and recomendations guidelines on this page pertain to the area colored on this diagram Pine Street (Minnesota State Hwy 25) is an important and heavily traveled roadway in Monticello and Sherburne County. It is one of only two river crossings between Minneapolis and Saint Cloud and it connects to I-94 in Monticello. It also has an important local role because it is Downtown's connection to the rest of Monticello that lies south of I-94. The original plat of Monticello did not foresee the growth of Pine Street and as a result, the steady growth of traffic along it has had a strong impact on the community. While it connects Monticello to the region, it also divides the community between east and west. This Plan recognizes Pine Street as a regional roadway, but seeks to manage its impacts as it crosses through Downtown. The Plan does not recommend any additional widening and supports additional river crossings that would better serve both Downtown and the region. New development along Pine Street should be regional serving, but locally scaled. Buildings should be located on the corners with pedestrian refuges along Pine Street that improve the appearance and the experience of all along Pine Street. The Plan discourages additional property access to Pine Street and encourages side street access with through block (north/south) easements. 0 Work with MnDOTto maintain a 5 lane section(2 through lanes both directions with a center turning lane), do not increase speeds 0 Work with MNDot to improve pedestrian crossings wherever possible, preferably with traffic signals at 4th Street. OEncourage redevelopment on the corners of blocks, with entrances facing the street, and shared parking in the middle of the block. i �64 i ii ii I ■■ i� i■ iR� M Proposed Section of Pine Street _sty li v 11 ill 1p r rn b rl}l �} 0 Reduce the impact of parking to pedestrians by minimizing the width to 180'and buffering parking from the sidewalk with a low fence and streetscaping. Reduce direct property access to Pine Street © and encourage property access from side streets with through block easements. 70 100, ROW 15' Perspective along Pine Street, looking north towards the River. City of Monticello Downtown Small Area Plan I Character Areas F20 Pine Street Guidelines Precedent Images Facade and Frontage • Primary entrance to building should be clearly visible from Pine Street accomplished with careful design. • One story base level articulation is encouraged to create a pedestrian scale frontage. • Storefronts on the ground floor are encouraged to face Pine Street. If storefronts face mid block parking, there must be pedestrian access to the storefronts. • Corner treatments such as entrances, cornice feature, or towers are encouraged at the corners of the bocks. Public Realm • 10'-15' sidewalk; trees clustered in planters with ground cover or low shrubs. • Sidewalks buffered from parking lots with low wall or hedge. • Gateway treatments at River Street and 7th Street. -11S!k s - SP.r J. bj�� --- : Massing and Orientation • Buildings should be between 2 and 5 stories. • Buildings should be oriented to Pine Street. Secondary entrances can be located on side streets or facing parking lots. If located on the Broadway/Pine Street corner, buildings should have dual orientations - one towards Pine Street and one towards Broadway. Building Use and Location • Larger retail/ commercial, office or hospitality uses that desire visibility, parking and regional access are encouraged. This does not apply to Block 52 which is located in the Riverfront character Area. • Buildings located towards front corners of Pine Street blocks. • Parking lots in mid block should not be wider than 180', but should be clearly visible from Pine Street and easilly accessible from side streets. • City of Monticello Downtown Small Area Plan I Character Areas Block 34 BroQa�ystrPPtF Frontage And Ground Floor Uses Active (retail) uses are encouraged at Pine Street and Broadway. Residential frontages are encouraged on Cedar Street. The remainder of the block is flexible. Active Frontage Flexible Frontage (either Active or Residential) Block 34 (public ownership in blue) Most of the properties on Block 34 are 7jr- publicly owned. In addition, there are two 11 1 1 1 wells on the block that impact development. Redevelopment is further challenged by I I J I I I I lr limitations on property access created by medians on Broadway and Pine Street. The site is attractive for "outbound" retail and the plan recommends such a use to be located in the base of a multi use building on the corner Residential Frontage Active Frontage of Pine and Broadway. BroQa�QyStrPPt i S.FPPr Md+'SF F %i� `�O gthstrePtF � \ J j Setbacks, Pocket Parks & Open Space Buildings should define the perimeter of the block with a front facade zone between 5' and 15' of the front property line. The two wells on site have 50' setbacks and shou Id be incorporated into courtyards or parking areas. Building Setback """".... Well Setback I 4thstrP� BroQati'4 Q�'Cz' - d �- ystrpPtF � - Parking & Servicing Primary access to mid block parking should occur from Cedar Street and 4th Street. Surface Parking Access Way a's Options The two illustrations above show potential options for development on Block 34 - both adhering to the guidelines. The top illustration shows a development pattern that assumes the property on Cedar Street remains. City of Monticello Downtown Small Area Plan I Character Areas Frameworks: Purpose Land Use, Open Space and Transportation are the three frameworks that organize and define the physical environment. As with systems in the human body, each must function independently - and together with - the others. If one fails, others are impacted. This is why it is important to understand frameworks as individual systems that must function as part of a single Downtown. The Plan is also divided into frameworks in order to allow different agencies, departments, and investors to act in concert with each other. This will help ensure public and private investments are coordinated, less risky, and more publicly acceptable. Required Retail Frontage Small Retail Opportunities Commercial iiiiiiii■ Mixed -Use Multi -Family Housing Public Employment iiiiiiii■ V / /�/� V / /: •wad' �_ 'o.......• �'� • •�`• `\Pa r WO penSpace/Cemetery V Core Study Area 1 Frameworks: Land Use and Development Development patterns that support social interaction, local character, and a compact connected and walkable environment. General Approach The Land Use Plan promotes a development pattern that recognizes the essential role that Downtowns plays in the communities they serve. Successful Downtowns tend to be places that serve many functions for the full cross section of the community throughout the year and across generations. They are places to gather, eat, live, shop, celebrate, protest, recreate, meet, be entertained, and to visit. They are places that promote social interactions and the unique creative expression of the community. At their best, Downtowns are places that exude pride because they represent the best the community has to offer. In order to promote these ideals, this Plan favors policies and development patterns that improve downtown for those who currently use it and patterns that support the places that people value. Therefore, development patterns and land uses in this Plan seek to support the Main Street character of Broadway, the importance of Walnut Street as a promenade to the River, regional and local needs of Pine Street, and the riverfront as the birthplace of the city. This Plan also recognizes the traditional (and still relevant) role of Downtown Monticello as well as the changing nature of small Downtowns throughout the country. In doing so, the Plan is committed to retaining the small scale shopfront District on Broadway by encouraging uses that value "experience" over "convenience". At the same time, the Plan encourages Pine Street (the regional face of downtown) to develop as a corridor that emphasizes convenience and accessibility. Together, both Broadway and Pine Street can complement each other to create a downtown that attracts a wide range of investments. Physically, the Plan favors compact walkable small town design with a fine grained mix of uses. The Plan arranges development types and land uses so valued places are supported, and new investments can add to the overall vitality of downtown. Recommendations • Create a Center to Downtown that is active throughout the day and into the evening - year round. The Walnut / Broadway Intersection should become the heart of this area. • Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. • Improve the entry experience from the north. • Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail/restaurant space on the ground floor and wither housing or offices above. • Create a development pattern on Pine Street that benefits from high visibility and regional access. • Infill Walnut Street and Cedar Street with mid scale housing (2-4 stories) that creates an effective transition between the in -town neighborhoods and the Downtown. City of Monticello Downtown Small Area Plan I Character Areas N Exhibit C—Site Detail City and EDA Owned Property 0 Municipal Well Location Irv-* 77 EY! . Aw i4 Exhibit D—Municipal Well Development Radius 4V C) 41* -10' VWELL SETBACK UY WELL SETBACK I Monticello 1)) 2040 VISION + PLAN — PHASE ONE I JANUARY 2020 This first phase of the Comprehensive Plan process, the Visioning phase, included a community engagement process to identify common values, growth aspirations and a vision to inform the planning direction for the next 20 years. The vision, value statements and preferred development scenario will serve as the foundation for creating the new Comprehensive Plan during the second phase of the planning process. The Comprehensive Plan provides a set of goals, policies and strategies for achieving Monticello's vision for the future. In 2040 the City of Monticello is an inclusive community focused around sustainable growth while maintaining its small-town character. Monticello is a Mississippi River town known for its schools, parks, biking and walking trails and vibrant downtown. Monticello is an evolving, friendly and safe community that respects the quality of its environment, fosters a sense of belonging and connection, encourages a healthy and active lifestyle and supports innovation to promote a prosperous economy. A safe, clean, and beautiful community supported by caring and helpful residents. A network of parks, open space and trail connections that provide recreation opportunities. An inclusive community welcoming people of all ages, races, religions and ethnic backgrounds. A diversified and strong local economy competitive at regional, state and national levels. A vibrant downtown that embraces the River and provides a focal point for the community. A healthy community focused on physical and mental health and wellness of its residents. A range of attainable housing options in terms of type, cost, and location. A respected school and education system serving the community. A balanced land use and transportation framework that provides options and connectivity. A thriving arts and culture scene that reflects the creativity of the community and supports a sense of place. E Monticello 1)) 2040 VISION + PLAN - PHASE ONE I JANUARY 2020 Development Assumptions Q Sustainability - Focus on sustainability, open space and wetland preservation throughout City. Q Infill Development - New service commercial and light industrial infill. Q Conservation Neighborhoods - Single-family housing developed as conservation subdivisions in a clustered fashion mitigating impacts to sensitive areas. Q Industrial Expansion - Full build out and expansion of Otter Creek Industrial Park and growth around future Interchange. Q Multi -Family Housing - New multi -family infill development near core of downtown and other focus areas. Q New School - New elementary and middle school campus with environmental focus. Q Downtown - Downtown plan implementation thriving with new commercial, mixed -use and public realm improvements. Q Mississippi River - Focus on River with new access, connections and riverfront trail. O New Employment Center - New industrial business park developed around new interchange with green technology, renewable energy, manufacturing and other uses. Q Xcel Facility - The Xcel Monticello Nuclear Generating Plant is licensed through 2030 and will seek relicensing to 2040. Q Annexation Area - Portions of the Orderly Annexation Area are designated as an Urban Reserve for future development. Development would likely include conservation single-family cluster subdivisions. Note: The Preferred Scenario guidance and mapping provided in the Vision Report will be further refined during the Comprehensive Plan process. This map is not the City of Monticello's final Land Use Plan. This map provides initial guidance for the next phase of the project, the Comprehensive Plan, and will be further detailed and refined. INCREMENTAL, SUSTAINABLE Growth Scenario The preferred development scenario is the result of community feedback on the four previous scenarios and the community's vision. The community envisions Monticello in 2040 as an environmentally and economically sustainable community that has experienced strong, balanced growth. Key Preferred Scenario Aspects Downtown Focus hi Industrial and Employment Q New School r Conservation Neighborhoods 4-7gt7 chnology, Renewable Energy,OManufacturing & I Distribution Warehousing Otter Creek Industrial Park BERTRAM CHAIN OF LAKEF Potential School Site with C R6.—W- Retail and Commercial A Trails • Open Space r JEFFERSON BLVD i NORTHSTAR LINE BIG LAKE MU -, Downtown z 4C> Mixed~ N r �P \ 44 i 1. 4p� sa sp♦I♦.'G I'I y ss r� sA � • i IG �' \ z B - O � SCHOOL BLVD G — -- �L C a � a i d z z z K LL Medium and Small �. Lot Conservation it, �Developments q. . 4-10 Units/Acre (Neo Traditional) Development Residential (South) 'A INDUSTRIAL URBAN PRIORITY • .. �....� .,o«.,...�..o T1 Monticello 1) 2040 - VISION + PLAN COMPREHENSIVE PLAN I NOVEMBER 23RD, 2020 ADOPTION CHAPTER 3: LAND USE .. GROWTH AND ORDERLYANNEXATION 47 COMMERCIAL DESIGNATIONS There are four commercial and mixed land use designations as follows: Community Commercial A Community Commercial designation applies to existing commercial uses along State Highway 25, School Boulevard and Chelsea Road, as well as other small pockets of Monticello that include existing shopping centers, retailers and entertainment uses. The intent of Community Commercial is to provide locations for everyday retail goods and services generally oriented to a city-wide basis. Regional Commercial A Regional Commercial designation applies to areas targeted for uses that serve the traveling public and larger retail uses and commercial development intended for a regional market. This designation is generally applied to various areas along the Interstate 94 corridor with high visibility. The development character of the regional commercial development will continue to be auto -oriented, large format commercial uses such as `big -box' uses and other uses that require a large parking area. Looking to the future, opportunities for connectivity and design linkages between such development and nearby uses and neighborhoods will be emphasized. Downtown Mixed -Use The Downtown Mixed -Use category identifies and designates the downtown area as a primary development focus for downtown intended to improve, revitalize and redevelop Downtown Monticello as envisioned in the 2017 Downtown Small Area Plan. The goal is to transform downtown into a thriving commercial area with new mixed -use, specialty retail and restaurant uses with enhanced streetscape and pedestrian amenities. Entertainment uses, co -working spaces, boutiques and cafes are also envisioned. New downtown development should also embrace and be oriented towards the river whenever possible. Commercial/Residential Flex The Commercial/Residential Flex designation encourages the mix of flexible and compatible development of commercial, office, retail and residential uses in limited areas of the city on the same or adjacent properties. The purpose of this designation is to give the city and property owners flexibility for future land use based on market demand. The Commercial/Residential Flex designation is applied to a few of the remaining large vacant parcels in the City including the parcels located south of Chelsea Road and north of School Boulevard and centered along Dundas Road. This designation is also applied to parcels located between Interstate 94 and 7th Street West. These properties may be developed as commercial, residential, or mixed land uses under the city's PUD zoning, subject to review and approval of the City. ` 1) Required Retail Frontage Small Retail Opportunities Commercial Mixed -Use Multi -Family Housing Public Employment Park/OpenSpace/Cem W TABLE 3.3: FUTURE LAND USE COMMERCIAL ACREAGES Source: Monticello Downtown Small Area Plan (2017) 60 41« ;<� LAND USE, GROWTH AND ORDERLY ANNEXATION DOWNTOWN MIXED -USE (DMU) The Downtown Mixed -Use designation applies to the area of Monticello commonly known as the Downtown and further identified in the 2017 Downtown Monticello "Small Area Plan". This designation includes a commitment to retain Broadway as Monticello's Main Street, supporting existing businesses, improving connections to and relationship with the River, and creating new downtown housing opportunities along Walnut and Cedar Avenues. The purpose is to create a Downtown that is lively throughout the day and into the evening at all times of the year. Typically uses include retail, restaurants, local serving offices and services, as well as residential uses above the ground floor. Some ground floor residential uses may be allowed along Walnut, Cedar, 3rd or 4th Streets among others, subject to the location and discretion of the City. Commercial • Retail • Offices • Personal Services • Professional Services • Restaurants/Cafes • Recreation and Entertainment Residential • Multi -Family Residential Recreational • Parks/Playgrounds • Density - 25+ units/acre (Medium to High Density Residential) ♦ 2018 Correlating • Floor Area Ratio Zoning District (FAR) 0.50 to 4.0 CCD Community • Height - Commercial District Up to 6 stories • Lot Area - N/A Primary Mode Pedestrian -friendly streetscape Vehicular (slow speeds) Secondary Mode Bicycle facilities and parking JTransit or shuttle service t9«4 LAND USE, GROWTH AND ORDERLY ANNEXATION Interior Street ft.) area) Front Rear Side Side 2 stories All Uses 6 6 6 6 30 feet (Reserved) (Reserved) [1] [1]: Multi -story buildings may be allowed as a conditional use pursuant to §153.028(D) contingent upon strict adherence to fire safety code provisions as specified by the International Building Code as adopted in the Monticello City Code. Accessory Structures - See § 153.092(B) for all general standards and limitations on accessory structures. - § 153.042, Common District Requirements Other - § 153.043(B), Standards Applicable to All Residential Base Zoning Districts Regulation to - § 153.060, Landscaping and Screening Standards Consult (not all - § 153.064, Signs inclusive) - § 153.067, Off -Street Parking - § 153.068, Off-street loading spaces - § 153.070, Building Materials (G) Central Community District, CCD. (1) (a) The purpose of the "CCD", Central Community District , is to provide for a wide variety of land uses, transportation options, and public activities in the downtown Monticello area, and particularly to implement the goals, objectives, and specific directives of the Comprehensive Plan, and in particular, the 2017 Downtown Monticello "Small Area Plan" Comprehensive Plan Amendment and its design and performance standards. (b) All proposed development or redevelopment in the CCD shall be subject to the requirements of the Comprehensive Plan and other standards identified in the Small Area Plan report. It is not the intent of this chapter to abrogate any general Zoning Ordinance requirements in the CCD, and all such requirements of the Monticello Zoning Ordinance apply fully within the CCD unless addressed separately by a more detailed CCD zoning regulation. (c) Projects that benefit from public investments and/or subsidies will have a greater burden to provide higher levels of both private and public amenities. (d) Sub -districts. The CCD is hereby divided into five subdistricts, four of which comprise the study area of the Small Area Plan. The CCD regulations shall apply uniformly across all sub -districts unless specific sub -district requirements apply. The City Council shall, in accordance with the process providing for zoning map amendments in the Monticello Zoning Ordinance, adopt a zoning map for the CCD area identifying the subdistrict boundaries. The subdistricts are known as: 1. Riverfront; 2. Broadway; 3. Walnut and Cedar Streets; 4. Pine Street; and 5. "General" shall be any area within the CCD that is not identified as being within one of the four named subdistricts. (e) Base lot area. No minimum. (f) Base lot width. No minimum. (2) Process requirements. (a) New development or redevelopment projects within the Central Community District shall require a site plan review by the Planning Commission. (b) At the proposer's option, or as required by this chapter, any proposed project may combine the required site plan review as a part of a concept plan review before a joint meeting of the Planning Commission and City Council. (c) Existing buildings shall be subject to the permitted and conditional use allowances of this chapter. (d) Projects which do not meet the requirements of this chapter may utilize the Planned Unit Development (PUD) process. (3) General requirements. (a) Character areas. The Central Community District shall be further regulated by four character sub -areas: Pine Street, Broadway, Walnut/Cedar and Riverfront and shown in the Official Zoning Map. (b) Projects across character area boundaries. By conditional use permit, uses and standards may extend across character area boundaries (but not into other zoning districts) a maximum distance of up to one-half block for project purposes, provided the majority of the project square footage lies within the permitted character -area, and the intent and character of the downtown plan is maintained. Where projects extend across character area boundaries, projects must show compatibility to both character area standards relating to adjoining districts and uses. (c) Private joint -parking use. All new non-residential parking areas shall be designed to accommodate cross -access and joint use throughout the CCD zoning district to minimize the need for parking infrastructure. (d) Accessory service/appurtenance uses. Building mechanical, waste -handling, and delivery service areas shall not face the public street or public spaces (with the exception of public parking lots), and shall be screened from view of adjoining property with materials equivalent to those of the principal building. (e) Buildings adjacent to single-family. Building side walls adjacent to single- family residentially zoned properties, or directly across a public street from such properties, shall have side wall heights of no greater than the horizontal distance to the nearest single-family structure. Buildings abutting single-family residentially zoned properties shall have roofs sloping toward the abutting single- family use, or shall employ at least one of the transitional features in § 153.066. (f) Building materials. Building materials for all uses shall be predominantly glass, brick, natural or cultured stone, or equivalent masonry material. 1. Materials for lapped siding, board -and -batten, or shake exteriors shall be composite, maintenance free materials, and shall be limited in overall exterior use to no more than 30% of building exterior for residential structures. 2. Commercial and other structures, no more than 15% of building exterior may be comprised of architectural metal, which shall be integrated into the building design. 3. Mixed use buildings shall comply with the commercial building requirements. (4) Performance standards. (a) Character area standards. 1. Broadway. a. All buildings should have a storefront or entrance on Broadway. b. Buildings shall be oriented toward the front of the lot, with a maximum ten -feet setback. Setbacks may be increased to accommodate outdoor seating or activity spaces approved by Planning Commission during site plan review. Such spaces shall be improved with enhanced paving and landscaping materials and other elements. c. Storefronts facing any public street shall consist of a minimum of 50% window/door transparency on ground floor. d. Buildings shall be between two to four stories, additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. e. Buildings shall have a maximum width of 60 feet, or shall be articulated by setback, materials or window treatments roofline variation, or other design methods to reflect the appearance of separate buildings, in approximately 30 to 60-foot increments. f. Ground floor commercial buildings which front on public streets or open space shall not be entirely comprised of office uses, but shall include other retail, hospitality or entertainment uses. g. Sidewalks and/or pathway connections shall be provided for all development projects. 2. Walnut/Cedar. a. Features such as upper balconies, dormers, courtyards, porches and dooryards shall be incorporated for residential uses. b. Buildings shall be between two to four stories; additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and the City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. c. Buildings shall be oriented toward Walnut and Cedar Street and toward front corners where applicable. 3. Pine Street. a. Buildings shall be between two to four stories; additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and the City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. b. Buildings shall be oriented to Pine Street with secondary entrances located on side or interior facades. Corner properties shall have dual orientation. 4. Riverfront. a. Features such as upper balconies, dormers, courtyards, porches and dooryards shall be incorporated for residential uses. b. Buildings shall be between two to four stories; additional stories may be authorized by conditional use permit. Single -story buildings may be approved through site plan review by the Planning Commission and the City Council where multiple stories are impractical for the specific use. In such cases, the building architecture should incorporate a fagade that mimics multiple stories through additional window openings or similar features. c. Buildings shall be oriented toward river and public right of way corners where applicable. (b) Use type standards. 1. Residential. a. Single/two-family: Where permitted, the requirements of the R-2 District will apply. b. Townhouse. (i) Permitted where the subject property has no direct frontage on Broadway or Walnut/Cedar. (ii) Must preserve open space to coordinate with public spaces. (iii) Building heights up to 25 feet or two stories above grade. (iv) Setbacks — 15 feet from abutting single-family, minimum of eight feet from public street. Interior side setbacks may be zero. (v) Variable roofline and front building walls. (vi) Classic row -house; living space to front; no garage -front design. (vii) All parking in attached garages. (viii) Parking ratio of two spaces per du, off-street. c. Multi four-12 du. (i) Only allowed where the subject property has no frontage on Broadway, Walnut/Cedar. Conditionally permitted where the property has direct frontage on Broadway or Walnut/Cedar. (ii) Must preserve open space to coordinate with public spaces. (iii) Building heights up to 35 feet or three stories above grade; additional stories authorized through conditional use permit (iv) Setbacks — 15 feet from abutting single-family, minimum of eight feet from public street. Interior side setbacks may be zero. (v) Variable roofline and front building walls. (vi) Garage entrances may not face a public street. (vii) Garages which face a single-family residential zoning district must screen the garage entrance from the eye -level view of the abutting property. (viii) All parking in attached garages within building footprint (no surface parking). (ix) Parking ratio of 1.7 spaces per du, off-street, or a minimum of no less than one space per bedroom, off- street, whichever is greater. As part of site plan review, the Planning Commission may impose a different (higher or lower) standard where the nature of the use supports such standard. (x) Residential units on upper, non -ground floors of buildings in the Riverfront Character Area are permitted as a part of mixed -use buildings by conditional use permit. d. Multi 13+ du. (i) Only allowed where the subject property has no frontage on Broadway, Walnut/Cedar. Conditionally permitted where the property has direct frontage on Broadway or Walnut/Cedar. (ii) Must preserve open space to coordinate with public spaces. (iii) Building heights up to 50 feet or four stories above grade; additional stories authorized through conditional use permit. (iv) Setbacks — shall be — 15 feet from abutting single- family, minimum of eight feet from public street. Interior side setbacks may be zero. (v) Variable roofline and front building walls. (vi) Garage entrances may not face a public street. (vii) Garages which face a single-family residential zoning district must screen the garage entrance from the eye -level view of the abutting property. (viii) All required parking shall be located in attached garages within building footprint (no surface parking). (ix) Parking ratio of 1.1 spaces per dwelling unit bedroom including adjacent on -street parking, or a minimum of no less than one space per bedroom, off-street, whichever is greater. As part of site plan review, the Planning Commission may impose a different (higher or lower) standard where the nature of the use supports such standard. (x) Multiple -family housing limited to seniors may reduce parking supply to half spaces per dwelling unit, off- street. As part of site plan review, the Planning Commission may impose a different (higher or lower) standard where the nature of the type of senior living use supports such standard. (xi) Residential units on upper, non -ground floors of buildings in the Riverfront and Broadway Character Area are permitted as a part of mixed -use buildings. e. Ground floor residential units. When allowed, subject to: (i) Common areas, lobbies, etc. (if any) should be oriented toward street. (ii) Street levels should include additional window and doorway glass exposure toward streets. 2. Commercial and mixed -use, generally. a. Uses adjacent to single-family residential zoned properties which include dining/drinking service spaces shall have one outdoor areas facing public open space use areas. b. Building heights of up to 50 feet or four stories shall be permitted. c. Buildings heights exceeding 50 feet or four stories may be allowed by conditional use permit. d. Residential units in mixed -use commercial buildings shall include balcony spaces. e. Building setbacks shall be 15 feet from abutting single-family homes, minimum eight feet from public streets. Interior side setbacks may be zero. (c) Landscaping. 1. Site improvements in the CCD shall include landscaping consistent with the requirements of §153.060 — Landscaping and Screening. 2. Pedestrian, plaza/patio, and bicycle spaces on the property shall integrate alternative pavement materials, designs, or features consistent with the surrounding streetscape. (d) Parking. 1. Off-street parking areas shall be developed and constructed according to the requirements of §153.067. Parking supply shall be as identified in this chapter, or where not specified herein, as in § 153.067 — Off -Street Parking. 2. A commercial use which propose to vary from the requirements of this section by deferring its required off-street supply and contributing to the public parking fund shall be accompanied by a parking study, subject to review and approval by Community Development staff, which illustrates an adequate amount of available unused public parking within 400 feet of the establishment's primary entrance. "Adequate amount" shall be established by the city on a case -by -case basis in review of the applicant's individualized parking study, but shall include the following elements, as a minimum: (1) an examination of the public parking supply commonly available for use by the proposed business during its peak usage hours; (2) the likely demand placed on said supply by the proposed business based on contemporary resources for parking utilization; and (3) an estimate of competing demand on said supply. 3. An existing business, as of the date of this chapter, which has a parking supply which is substandard according to § 153.067 - Off -Street Parking, shall be considered a legal nonconformity. The business may expand or change to another business that increases the parking supply deficiency only by participating in the parking fund, according to the requirements of this Section and § 153.067(E)(4)(c) for such deficiency. 4. Parking shall not be located on a parcel between the front building line of the principal building and the public street, except where expressly provided for by the City Council after recommendation from the Planning Commission. (e) Other performance standards. 1. All other performance standards as identified in §§153.060 through 153.072 shall apply, unless otherwise addressed in this section. 2. Maximum residential density: 25.0 dwelling units per gross acre. 3. Maximum building height: 60 feet. a. Buildings may exceed 50 feet in height by conditional use permit, with enhanced site improvements, architecture, and building materials. 4. Lot coverage, buildings. a. Minimum building lot coverage: 20%. b. Maximum building lot coverage: 90%. 5. Accessory structures. a. For commercial uses, trash handling equipment shall be located within buildings wherever practical. If located in a structure attached to, or detached from, the principal building, such structure shall screen the trash handling equipment from the view of all neighboring property and public rights -of -way, and shall be constructed of materials which comprise the principal building. Gates and/or doors shall be constructed of permanent opaque materials, matching the principal building in color, and shall be kept closed at all times other than when being used for access. Roofs for such structures are encouraged, but not required when the screening wall of the enclosure is at least eight feet in height. b. For mixed -use and multi -family residential uses, trash handling equipment shall be located within the principal building. c. Any other accessory structures allowed in the CCD (seeTable 5-4 — Accessory Uses by District) shall meet all requirements of the CCD district applicable to principal buildings. (Ord. 799, passed 2-27-2023) § 153.090 USE TABLE. (A) Explanation of use table structure. (1) Organization of Table 5-1. Table 5-1 organizes all principal uses by use classifications and use types. (a) Use classifications. The use classifications are: agricultural uses; residential uses; civic and institutional uses; commercial uses; and industrial uses. The use classifications provide a systematic basis for assigning present and future land uses into broad general classifications (e.g., residential and commercial uses). The use classifications then organize land uses and activities into specific "use types" based on common functional, product, or physical characteristics, such as the type and amount of activity, the type of customers or residents, how goods or services are sold or delivered and site conditions. (b) Use types. The specific use types identify the specific uses that are considered to fall within characteristics identified in the use classifications. For example; detached dwellings, parks and recreational areas, and schools are "use types" in the Single-family Residence District. (2) Symbols used in Table 5-1 (a) Permitted Uses = P. A "P" indicates that a use is permitted by right, subject to compliance with all other applicable provisions of this chapter. Uses may be subject to special regulations as referenced in the "additional requirements" column. (b) Conditionally Permitted Uses = C. A "C" indicates that a use is permitted provided the city can establish conditions necessary to ensure the use is compatible to the proposed location and surrounding properties. Inability of the city to establish conditions to adequately control anticipated impacts is justification for denial of a conditionally permitted use. Conditional uses may also be subject to special regulations as referenced in the "additional requirements" column. (c) Interim Permitted Uses = I. An "I" indicates that a use maybe permitted for a brief period of time provided certain conditions are met, and a specific event or date can be established for discontinuance of the use. Inability of the city to establish conditions to adequately control anticipated impacts is justification for denial of an interim permitted use. Interim permitted uses may also be subject to special regulations as referenced in the "additional requirements" column. (d) Prohibited Uses = Shaded cells.A shaded cell indicates that the listed use is prohibited in the respective base zoning district. (e) Uses not provided for within zoning districts. In any zoning district, whenever a proposed use is neither specifically allowed nor denied, the use will be considered prohibited in which case an amendment to the ordinance text would be required to clarify if, where and how a proposed use could be established. TABLE 5-1: USES BY DISTRICT Base Zoning Districts Use Types "P" = Permitted Additional Requirements "C., _ Conditionally General warehousing Heavy manufacturing Industrial services Industrial self - storage facilities Land reclamation Light manufacturing Machinery/tru ck repair and sales Recycling and salvage center Truck or freight terminal Waste disposal and incineration Wrecker and towing services iiiei�ieiie� C C P P § 153.091(F) (6) C § 153.091(F) (7) C P None C C § 153.091(F) See (8) C C C § 153.091(F) Ordinance No. (9) P P P § 153.091(F) (10) C § 153.091(F) (11) C § 153.091(F) (14) C § 153.091(F) (15) C § 153.091(F) (16) P § 153.091(F) (17) TABLE 5-1A: CENTRAL COMMUNITY DISTRICT (CCD) USES SUB -AREA Riverfront (A) Broadway (B) walnut & pine (D) General Notes Cedar (C) CCD Retail, Office, Entertainment Retail, supported large Housing, and open supported by by space supported Use Types space, entertainment, housing retail by limited supported byusers, housing 2nd and retail and retail services and retail services service TABLE 5-1A: CENTRAL COMMUNITY DISTRICT (CCD) USES SUB -AREA Riverfront (A) Broadway (B) walnut & pine (D) General Notes Cedar (C) CCD Retail, Office, Entertainment Retail, supported large Housing, and open supported by by space supported Use Types space, entertainment, housing retail by limited supported byusers, housing 2nd and retail and retail services and retail services service Additional use requirements applicable per § 153.091 Uses: Residential Uses Single- family P. CUP *Upper floors only Multi 3 du or under P* CUP* P *Upper floors only *Townhous es on Townhouse CUP CUP* CUP P Broadway east of Pine only Multi 4-12 du CUP CUP CUP CUP Multi 13+ du CUP CUP CUP CUP CUP *Allowed on ground floor for Ground floor CUP* P P townhouses on Broadway east of Pine Commercial Brew Pub <10,000 sq. ft. P P P P Brew Pub >10,000 sq. ft. CUP P CUP P Commercial Day Care CUP CUP P Commercial Lodging P CUP CUP P Uses: Commercial Entertainme nt/Recreation, <10,000 sq. Indoor Commercial (including CUP* CUP* CUP* CUP ft. only theaters) Entertainme nt/Recreation Outdoor Commercial Subject to § Event centers CUP CUP CUP CUP CUP 153.091(F) (14 ) Funeral services CUP Personal services P P P P CUP Places of public assembly CUP CUP CUP CUP CUP Production brewery/ taproom P P P P Micro- distillery/ cocktail room P P P P Professional office - services CUP* P P P P Upper floors and retail preferred CUP* - not P/CUP* on P/CUP* Upper floors Commercial office allowed on ground on ground P preferred ground floor floor floor Financial P P P P Drive thru by CUP Restaurants, bars <10,000 P P P P CUP sq. ft. Restaurants, bars > 10,000 CUP P CUP P CUP sq. ft. Retail Sales <10,000 sq. ft. P P P P P Retail Sales >10,000 sq. ft. CUP CUP CUP P CUP Retail with service CUP P P P P Specialty Eating Establishments <10,000 sq. P P P P CUP ft. Vehicle fuel sales CUP Veterinary facilities < 10,000 CUP CUP CUP CUP No outdoor sq. ft. uses Industrial Uses Industrial PUD PUD Only PUD Only Civic and Institutional Uses Clinics/ medical services CUP CUP P P Public buildings or uses (incl. public parks) P CUP P CUP CUP Schools Pre- K-12 CUP CUP CUP TABLE 54B THE POINTES AT CEDAR DISTRICT (PCD) See § 153.048 (Ord. 762, passed 8-23-2021; Ord. 780, passed 7-25-2022; Ord. 791, passed 11-14-2022; Ord. 797, passed 2-13-2023; Ord. 799, passed 2-27-2023; Ord. 804, passed 8-14-2023) EDA Agenda: 07/24/2024 6A. Economic Development Manager's Report Prepared by: Meeting Date: ® Other Business Economic Development Manager 07/24/2024 Reviewed by: Approved by: N/A N/A REFERENCE AND BACKGROUND 1. Project Maxwell Site Visit on July 10, 2024 — Staff will provide additional information regarding the follow up steps -activities related to the recent site visit by the Project Maxwell site search team to the City of Monticello on July 10, 2024, at 11:00 a.m. The firm is offering a tour of its facilities in Minneapolis so that all stakeholders and decision makers can learn as much information as possible about the firm, its operations, utility service needs and employee needs. It likewise will want to have more discussion with Monticello leaders related 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 07/18/2024 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 07/18/2024 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 07/18/2024 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 7/3/2024 Project Hair Obsess Service Property Acquisition and Renovation 2,100 sq. ft. 14 6 $600,000 Identified Site Contacts: M = 03 YTD = 25