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EDA Agenda - 03/12/2025AGENDA REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, March 12, 2025 – 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Tyler Bevier, Sarah Rathlisberger 1. General Business A. Call to Order B. Roll Call 6:00 p.m. 2. Consideration of Additional Agenda Items 3. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes – February 12, 2025 C. Consideration of Approving Workshop Meeting Minutes – February 12, 2025 4. Public Hearing None 5. Regular Agenda A. Presentation from Sarah Rathlisberger, Director of Finance, City of Monticello B. Consideration of Block 52 Redevelopment Certificiate of Completion C. Adoption of EDA Workplan Proposed 2025-2027 6. Other Business ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETINGS (Academy Room) 5:00 p.m. Discussion and Review EDA Workplan Proposed 2025-2027 6:30 p.m. CLOSED MEETING PIDs: 155-191-000010, 155-191-000020, 155-191-001010 PID: 155-171-001010 A. Consideration of Economic Development Manager’s Report 7. Consideration to go into Closed Meeting 6:30 p.m. Consideration of Negotiations of Properties: • PID: 155-191-000010, 155-191-000020, 155-191-001010 • PID: 155-171-001010 8. Adjournment User: Printed:02/05/2025 - 2:06PM julie.cheney@monticellomn.gov Transactions by Account Batch:00203.02.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-430400 KENNEDY AND GRAVEN CHARTEREDGeneral EDA - Dec 2024 129652 425.0012/31/2024 213-46301-430400 KENNEDY AND GRAVEN CHARTEREDBlock 34 TIF District - Dec 2024 129652 718.5012/31/2024 1,143.50Vendor Subtotal: 213-46301-431990 JACKSON GROSKREUTZ EDA Meeting Recording 1/8/25 129643 225.0002/11/2025 225.00Vendor Subtotal: 213-46301-433100 TYLER BEVIER Mileage Reimbursement - EDAM Conference (93.9 miles) 0 65.7302/11/2025 65.73Vendor Subtotal: 213-46301-443300 DAVID BARTHOLOMAY 2025 Leadership Growth Group 129627 600.0002/11/2025 600.00Vendor Subtotal: Subtotal for Fund: 213 2,034.23 Report Total: 2,034.23 AP-Transactions by Account (02/05/2025 - 2:06 PM)Page 1 User: Printed:02/19/2025 - 12:58PM julie.cheney@monticellomn.gov Transactions by Account Batch:00201.02.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-433100 US BANK CORPORATE PMT SYSTEMPARK & SHOP - Parking @ EDAM Conference (JT) 0 13.0002/15/2025 213-46301-433100 US BANK CORPORATE PMT SYSTEMMAYO PARKING - Parking @ EDAM Conference (JT) 0 22.9002/15/2025 213-46301-433100 US BANK CORPORATE PMT SYSTEMEDAM - 2025 Winter Conference Registration (JT & TB) 0 565.0002/15/2025 600.90Vendor Subtotal: 213-46301-438200 CITY OF MONTICELLO 130 Broadway E. (EDA strmwtr - formerly the Zoo) 7/3/2019 new fee 0 31.5012/31/2024 213-46301-438200 CITY OF MONTICELLO 216 Pine St (EDA - old Finders Keepers consignmt by old DMV) 0 52.6112/31/2024 84.11Vendor Subtotal: 213-46301-443990 US BANK CORPORATE PMT SYSTEMMONTICELLO CHAMBER OF COMMERCE - 2024 - Chamber Lunch (JT) 0 25.0012/31/2024 213-46301-443990 US BANK CORPORATE PMT SYSTEMDOMINOS - Food Special Mtg - EDA 0 34.2702/15/2025 213-46301-443990 US BANK CORPORATE PMT SYSTEMMONTICELLO CHAMBER OF COMMERCE - Chamber Lunch (JT) 0 20.0002/15/2025 79.27Vendor Subtotal: Subtotal for Fund: 213 764.28 Report Total: 764.28 AP-Transactions by Account (02/19/2025 - 12:58 PM)Page 1 User: Printed:03/03/2025 - 1:42PM julie.cheney@monticellomn.gov Transactions by Account Batch:00205.02.2025 Accounts Payable Account Number Vendor AmountGL DateDescription Check No PO No 213-46301-431991 DEMVI LLC Parking Lot Maintenance - Feb 2025 0 213.8602/28/2025 213.86Vendor Subtotal: 213-46301-438100 CENTERPOINT ENERGY 12045691-8 - 216 Pine St 0 416.6702/28/2025 416.67Vendor Subtotal: 213-46301-438100 XCEL ENERGY 101 E 3rd St (216 Pine St) - formerly Finders Keepers 0 80.5402/28/2025 80.54Vendor Subtotal: Subtotal for Fund: 213 711.07 Report Total: 711.07 AP-Transactions by Account (03/03/2025 - 1:42 PM)Page 1 The preceding list of bills totaling $3,509.58 was approved for payment. Date: 3/12/25 Approved by:__________________________________ Hali Sittig - Treasurer MINUTES (DRAFT) REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, February 12, 2025 – 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer Hali Sittig, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart Commissioners Absent: Hali Sittig Staff: Executive Director Jim Thares, Rachel Leonard, Angela Schumann, Tyler Bevier, Sarah Rathlisberger 1. General Business A. Call to Order B. Roll Call 6:16 p.m. 2. Annual Business Meeting Economic Development Manager opened the meeting with the election of 2025 officers of president, vice-president and treasurer, and reminded policymakers that city staff may serve as the secretary roll. A. Consideration of Electing EDA officers MAYOR HILGART MADE THE MOTION TO KEEP THE OFFICERS OF STEVE JOHNSON AS PRESIDENT AND JON MORPHEW AS VICE PRESIDENT ALONG WITH HALLI SITTIG SERVING AS TREASURER. CITY STAFF WILL CONTINUE AS THE EDA SECRETARY. MOTION SECONDED BY TRACY HINZ. MOTION CARRIED, 5-0. B. Consideration of Reviewing EDA Bylaws Mr. Thares asked the EDA if they wanted any changes in the Bylaws. He noted staff have no recommended changes. ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING (Academy Room) Country Club Villa Senior Housing Development Status Update Discussion and Review EDA Workplan Proposed 2025-2027 C. Consideration of Reviewing EDA Enabling Resolution Jim Thares indicated that the resolution when referring to the Greater Monticello Enterprise Fund (GMEF) states guidelines, yet it should now state policies. He said at some point in the future, this should be adjusted. A public hearing would need to be held as part of that consideration. Steve Johnson stated that this has been the case for 13+ years and can remain. This was echoed by Rick Barger. D. Consideration of EDA Financial Statements and Fund Balance Information Jim Thares stated that Sarah Rathlisberger, City Finance Director, could not be in attendance this evening. She is willing to attend the March EDA meeting to present the 2024 Year End Financial Statements. Jim Thares spoke about the newly created spreadsheet with information about the GMEF and Small Cities Development Program (SCDP) loans. It contains loan balances and the original loan amount for the borrowers, including Rustech, Bondhus, RRG Holdings, LLC (Due North Car Wash), Block 52 Holdings and Hair Obsession. Jim noted the GMEF current fund balance. He indicated that there is one application in the early- stage review. He also noted the SCDP Fund balance. Steve Johnson tabled the financial presentation until the March meeting. Mayor Lloyd Hilgart indicated that he would like to see the monthly payment amount for each loan added to the spreadsheet. 3. Consideration of Additional Agenda Items None 4. Consent Agenda A. Consideration of Payment of Bills B. Consideration of Approving Regular Meeting Minutes – September 11, 2024 C. Consideration of Approving Workshop Meeting Minutes – November 13, 2024 D. Consideration of Approving Regular Meeting Minutes – November 13, 2024 E. Consideration of Authorizing an Interfund Loan Resolution No. 2025-01 related to Block 34 Redevelopment efforts F. Consideration of Authorizing Northland Securities Professional Services Contract related to Block 34 Redevelopment TIF Analysis and Plan Preparation G. Consideration of Authorizing Northland Securities Professional Services Contract related to a potential TIF District Plan and Analysis for Karlsburger Foods proposed facility expansion located at 3236 Chelsea TRACY HINZ MOVED TO APPROVE THE CONSENT AGENDA, ITEMS A. THROUGH G. MOTION SECONDED BY RICK BARGER. MOTION CARRIED, 5-0. 5. Public Hearing None 6. Regular Agenda A. Consideration of WSB & Associates’ Phase II Environmental Site Assessment (ESA) Work Scope Proposal for 216 Pine Street and adjacent City owned parcel PID # 155010034020 Jim Thares reviewed the Phase II Environmental Site Assessment contract proposal submitted by WSB. He reminded policymakers that the EDA authorized seeking the Phase II ESA proposal at its January meeting. He further noted that a Phase I was completed at the 216 Pine Street parcel in April 2024. The final report indicated the presence of REC (Recognized Environmental Condition) related to a former gas station located immediately north of the parcel. Angela Schumann spoke about a future proposal from WSB as well as a review of comprehensive past environmental studies in Block 34 with the goal of noting and recommending any additional future environmental studies. LLOYD HILGART MOVED TO AUTHORIZE THE PHASE II ESA CONTRACT WITH WSB. SECONDED BY JON MORPHEW. MOTION CARRIED, 4-0. B. Consideration of LHB’s Tax Increment Financing (TIF) Blight and Substandard Findings Work Scope Proposal related to Block 34 Redevelopment efforts. Jim Thares reviewed the required study to be completed before establishing a TIF District and reminded policymakers of the prior authorization at the January meeting to seek a proposal from LHB. The proposal cost is $20,600. The study will entail review of previous development coverage, and building structures for dilapidated blighted conditions. He also noted the TIF statutory requirements regarding blight designation. The work tasks may take several days and will involve entering buildings. The first phase of the work activities will be $17,400 with a potential second phase priced at $3,200. The EDA has sufficient funding in its General Fund to cover the cost of the LHB study. TRACY HINZ MOVED TO APPROVE THE LHB STUDY AT A COST NOT TO EXCEED $20,600. MOTION SECONDED BY RICK BARGER. MOTION CARRIED, 5-0. C. Consideration of Authorizing Rights of Entry for LHB Inc. and WSB & Associates related to TIF Qualification Inspections and Environmental Investigations in Block 34 Jim Thares spoke about the need for a right of entry for both WSB and LHB to access the EDA properties, with the City Council to receive the equivalent document for the city owned property. Rick Barger noted that LHB is noted in each Right of Entry document, and it should be changed on one of them to read WSB. RICK BARGER MOVED FOR APPROVAL OF RIGHTS OF ENTRY TO LHB INC. AND WSB & ASSOCIATES AND ITS SUBCONTRACTOR(S) INTO AND ONTO EDA AND CITY OWNED PROPERTIES LOCATED IN BLOCK 34 FOR THE PURPOSE OF COMPLETING TIF QUALIFICATION INSPECTIONS AND ENVIRONMENTAL INVESTIGATIONS. JON MORPHEW SECONDED THE MOTION. MOTION CARRIED, 5-0. D. Consideration of Authorizing a Mortgage Loan Subordination to First Dakota National Bank related to mortgage refinancing by RRG Holdings, LLC’s car wash facility located at 1301 Cedar Street, Monticello, MN Jim Thares reviewed the loan subordination request from RRG Holdings dba Good Day Car Wash regarding a proposed subordination of the EDA GMEF Loan. It is proposing to refinance its current mortgage debt in the amount of $4,200,000 with Cor Trust Bank. The new lender is First Dakota National Bank. They are seeking a new mortgage loan in the amount of $6,289,000 and asking the EDA to subordinate the $123,215 GMEF Loan balance to the new mortgage financing. Jim noted the recent ownership change at RRG Holdings and indicated that a review of the PFS of the ownership group was collectively extremely strong and that the risk of a loan default or non-payment of the GMEF Loan was relatively low. City staff did not do a financial analysis of the cash flow of the business. Mayor Lloyd Hilgart asked if there was a reason for the additional mortgage debt. Rick Barger asked what would happen if subordination was not changed. Jim Thares stated the loan would likely be paid off. JON MORPHEW MOVED TO DENY THE GMEF LOAN SUBORDINATION REQUEST BY RRG HOLDINGS-FIRST DAKOTA NATIONAL BANK. MOTION SECONDED BY LLOYD HILGART. MOTION CARRIED, 5-0. 7. Other Business A. Consideration of Economic Development Manager’s Report Jim Thares spoke about the upcoming meeting protocol training for the Chair and Vice Chair roles and the basic meeting procedures. He asked the President and Vice President to reach out to Vicki Leerhoff for the dates that work the best. Jon Morphew noted he had potential conflicts though he would provide input to Vicki about the date that works best for him. Jim Thares also noted that the EDA Attorney, resigned from Kennedy & Graven and is now working at Kutack Rock, a Minneapolis law firm with an extensive amount of experience in public bond issuance and economic development finance and Tax Increment Financing (TIF) activities. A consensus was to remain with Gina for the completion of current work and go for a Request for Proposals in the spring or summer of 2025. Jim Thares highlighted the recent EDAM Development Project of the Year (2024) Award to the City of Monticello (including the EDA) for the $28,500,000 Block 52 Redevelopment project. He played the EDAM produced video summarizing the hallmarks of the award-winning project. He noted the award presentation took place at the EDAM Conference luncheon on January 23, 2025. Jim Thares provided an update on the development prospects and projects. Tracy Hinz asked for an update on the Fairfield Inn site. Jim Thares stated they are expected to break ground in late March or early April. They have submitted there building plans for review and are awaiting permit issuance sometime in late March. 8. Adjournment TRACY HINZ MOTIONED TO ADJOURN AT 7:13 P.M. MOTION SECONDED BY RICK BARGER. MOTION CARRIED, 5-0. Recorded By: Vicki Leerhoff Date Approved: ATTEST: _________________________________________ Jim Thares, Economic Development Manager MINUTES - draft ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING Wednesday, February 12, 2025 – 4:45 p.m. Academy Room, Monticello Community Center 4:45 p.m. Discussion Country Club Villas Senior Rental Housing Update and Senior Market Demand, Wes Butler Executive Director, CHC and Kyle Didier, Shelter Corporation Called to order at 4:45pm President Steve Johnson, Vice President Jon Morphew, Rick Barger, Councilmember Tracy Hinz, Mayor Lloyd Hilgart. EDA Manager Jim Thares opened up the discussion introducing Wes Butler, Executive Director of CHC, Kyle Didier, Executive Director of Shelter Corporation, and Mick Conlan, Gramercy Corporation, to discuss the Country Club Manor Villa Twinhome development, senior housing demographics and the housing co-op (owner-shareholder) model. Jim Thares asked for an update on the 7th Street Project. Wes Butler spoke about the affordability aspect of the project. The project commenced in November 2022 and progressed to late fall of 2024. The first phase included 60 units, and they are now all constructed. They are awaiting Certificate of Occupancy (CO) on just a handful of those recently completed units. Mr. Butler also spoke about the local and regional housing market and the slow lease -up for rentals, specifically with marketing targeted at 55+ age. The 22 units twinhome Phase II development, on the westernmost end of the 21-acre site, is not age restricted. Those units should be available by late summer. He expects rentals to occur at a quicker pace. Mayor Lloyd Hilgart asked how many units there are in total, Wes Butler responded that there are 82 total units. Tracy Hinz joined the meeting at 5:08 p.m. Discussion ensued on the various factors and challenges involved in attracting seniors into a rental unit such as the Villa Twinhomes. The main factors are emotional, physical condition and financial. They continue to market the units through various channels. Currently 20 of the 60 units are leased. The developer then suggested that it would be helpful to monitor the leasing of the remaining 40 units and if necessary, come back to the EDA in the next 12 months to ask if a portion of the 60-unit phase I could be designated as general occupancy rental. The best location for the general occupancy among the first 60 units would be at the western end of the Phase I development. EDA members agreed monitoring and updates would be useful for all involved parties. Motion to adjourn at 5:56 p.m. by Tracy Hinz. Second by Jon Morphew. Motion passed 5-0. Recorder: Vicki Leerhoff Approved: Attest: ____________________________ Jim Thares, Economic Development Manager EDA Agenda: 3/12/2025 5A. Update of EDA Financial Statements Prepared by: Community & Economic Development Coordinator Meeting Date: 3/12/2025 ☒ Regular Agenda Item ☐ Consent Agenda Item Reviewed by: N/A Approved by: Economic Development Manager ALTERNATIVE ACTIONS A: 1. Motion to accept YE 2024 Financial Statements. 2. Motion of other. REFERENCE AND BACKGROUND: The EDA held its Annual Business meeting on February 12, 2025, though due to City Finance Director Sarah Rathlisberger’s absence, a review of the financial statements did not occur at that time and was instead moved to the March 12, 2025, EDA regular meeting. Attached for review and discussion are the 2024 Year End Financial reports of the EDA Fund(s). I. Staff Impact: There is minimal staff time involved in preparing the staff report and related activities connected to the 2024 Year End Financial Statements presentation. II. Budget Impact: No expected budget impact from the Annual Business Meeting. STAFF RECOMMENDATION: Staff recommend that the EDA accept the Year End 2024 Financial Statements (Revenues and Expenditures as well as Balance Sheet) as presented. SUPPORTING DATA: A. EDA 2024 Year End EDA Financial Statements CITY OF MONTICELLO Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances Economic Development Authority & Small Cities Development Program September 30, 2024 - Unaudited TIF 6 (d) TIF 19 (d) TIF 20 (d) TIF 22 (d) TIF 24 TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total Total EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA SCDP ASSETS Cash and investments 1,694,917 682,833$ -$ 112,601$ 37,719$ 104,142$ 248,445$ 115,764$ 75,189$ 85,489$ 74,108$ 21,049$ 32,930$ -$ -$ -$ 3,148$ -$ 3,288,334$ 893,845 Receivables Unremitted taxes - - - - - - - - - - - - - - - - - - - - Delinquent taxes 3,057 - - - - - 4,691 - 3,325 - - - - - - - - - 11,073 - Accounts 8,142 - - - - - -- -- - - - - - - - - 8,142 - Intrafund receivable 109,779 - - 687,248 - - - - - - - - - - - - - (797,027) - - Prepaid items 3,511 - - - - - - - - - - - - - - - - - 3,511 - Notes receivable 127,246 574,965 - - - - - - - - - - - - - - - - 702,211 90,307 Land held for resale 2,759,929 - - - - - 163,200 - - - - - - - - - - - 2,923,129 - TOTAL ASSETS 4,706,581$ 1,257,798$ -$ 799,849$ 37,719$ 104,142$ 416,336$ 115,764$ 78,514$ 85,489$ 74,108$ 21,049$ 32,930$ -$ -$ -$ 3,148$ (797,027)$ 6,936,400$ 984,152$ LIABILITIES Accounts and contracts payable 3,522 - - - - - - - - - - - - - 127,246 - - -$ 130,768$ - Intrafund payable - - 58,563 - - - - - - 49,331 - - 687,248 431 431 431 592 (797,027) - - Unearned revenue - - - - - - 163,200 - - - - - - - - - - (163,200) - - Escrow deposits 41,254 - - - - - - - - - - - - - - - - - 41,254 - Total liabilities 44,776 - 58,563 - - - 163,200 - - 49,331 - - 687,248 431 127,677 431 592 (960,227) 172,022 - DEFERRED INFLOWS OF RESOURCES Unavailable revenue - property taxes 3,057 - - - - - 4,691 - 3,325 - - - - - - - - - 11,073 - FUND BALANCES Nonspendable 3,511 - - - - - - - - - - - - - - - - - 3,511 - Restricted 121,740 1,257,798 - 799,849 37,719 104,142 248,445 115,764 75,189 36,158 74,108 21,049 (654,318) (431) (127,677) (431) 2,556 163,200 2,274,860 984,152 Assigned Economic Development 4,401,007 - (58,563) - - - - - - - - - - - - - - - 4,342,444 - Façade Grant 132,490 - -- - - - - - - - - - - - - - - 132,490 - Total fund balance 4,658,748 1,257,798 (58,563) 799,849 37,719 104,142 248,445 115,764 75,189 36,158 74,108 21,049 (654,318) (431) (127,677) (431) 2,556 163,200 6,753,305 984,152 TOTAL LIABILITIES, AND FUND BALANCES 4,706,581$ 1,257,798$ -$ 799,849$ 37,719$ 104,142$ 416,336$ 115,764$ 78,514$ 85,489$ 74,108$ 21,049$ 32,930$ -$ -$ -$ 3,148$ (797,027)$ 6,936,400$ 984,152$ Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/31/2023 12/31/2026 12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2031 12/31/2050 12/31/2050 12/31/2050 12/31/2032 TIF District Type Redevelopment Housing Redevelopment Housing & Housing Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic (d) = decertified Redevelopment Development Development UN A U D I T E D CITY OF MONTICELLO Schedule of Revenues, Expenditures and Other Financing Sources (Uses) Economic Development Authority & Small Cities Development Program For the Period Ended September 30, 2024 - Unaudited TIF 6 (d) TIF 19 (d) TIF 20 (d) TIF 22 (d) TIF 24 TIF 29 TIF 30 TIF 34 (d) TIF 40 TIF 41 TIF 42 TIF 43 TIF 45 TIF 46 GAAP Total Total EDA General GMEF TIF Future Raindance MS Shores Prairie West Downtown St. Henry's Front Porch CMHP Interchange Briggs UMC Headwaters Headwaters Block 52 WiHa Reconciliation EDA SCDP Revenues Property taxes 458,011$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 458,011$ -$ Tax increments - - - - - - - 60,156 40,566 20,606 - 76,017 64,441 - - - 3,148 - 264,934 - Intergovernmental 294,248 - - - - - - - - - - - - - - - - - 294,248 - Charges for services 24,360 - - - - - - - - - - - - - - - - - 24,360 - Investment earnings 159,230 - - - - - - - - - - - - - - - - - 159,230 42,062 Interest on loans 3,232 10,541 - 21,554 - - - - - - - - - - - - - (24,786) 10,541 2,838 Other revenues 11,940 - - - - - - - - - - - - - - - - - 11,940 - Total revenues 951,021 10,541 - 21,554 - - - 60,156 40,566 20,606 - 76,017 64,441 - - - 3,148 (24,786) 1,223,264 44,900 Expenditures: Current Salary and wages 165,500 - - - - - - - - - - - - - - - - - 165,500 - Benefits 54,669 - - - - - - - - - - - - - - - - - 54,669 - Supplies - - - - - - - - - - - - - - - - - - - - Professional services - legal 32,933 - - - - - - 161 - - - - - - - - 115 - 33,209 - Professional services - market matching - - - - - - - - - - - - - - - - - - - - Professional services - enviromental - - - - - - - - - - - - - - - - - - - - Professional services - other 42,830 - 13,200 - - - 1,200 - - - - - - - - - - - 57,230 - LPV Insurance 4,259 - - - - - - - - - - - - - - - - - 4,259 - Legal and general publications 1,477 - - - - - - 31 31 31 - 31 31 31 31 31 77 - 1,802 - Property taxes 58,658 - - - - - - - - - - - - - - - - - 58,658 - Marketing 18,351 - - - - - - - - - - - - - - - - - 18,351 - Dues and membership 7,416 - - - - - - - - - - - - - - - - - 7,416 - Utilities 3,358 - - - - - - - - - - - - - - - - - 3,358 - IT services 3,353 - - - - - - - - - - - - - - - - - 3,353 - Travel and conferences 1,182 - - - - - - - - - - - - - - - - - 1,182 - Land adjustment to market 490,672 - - - - - - - - - - - - - - - - - 490,672 - Qualifying TIF expenditures - - - - - - - - - - - - - - - - - - - - Other expenditures 384,884 - - - - - - - - - - - - - - - - - 384,884 - Excess increments - - - - - - 269,641 - - - - - - - - - - - 269,641 - Interest on intrafund loans - - - - - - - - - - 3,232 - 21,554 - - - - (24,786) - - PAYG payments to third parties - - - - - - - - - - - 68,415 - - - - - - 68,415 - Total expenditures 1,269,542 - 13,200 - - - 270,841 192 31 31 3,232 68,446 21,585 31 31 31 192 (24,786) 1,622,599 - Net change in fund balances (318,521) 10,541 (13,200) 21,554 - - (270,841) 59,964 40,535 20,575 (3,232) 7,571 42,856 (31) (31) (31) 2,956 - (399,335) 44,900 Fund balance at beginning of year 4,977,269 1,247,257 (45,363) 778,295 37,719 104,142 519,286 55,800 34,654 15,583 77,340 13,478 (697,174) (400) (127,646) (400) (400) 163,200 7,152,640 939,252 Fund balance at end of year 4,658,748$ 1,257,798$ (58,563)$ 799,849$ 37,719$ 104,142$ 248,445$ 115,764$ 75,189$ 36,158$ 74,108$ 21,049$ (654,318)$ (431)$ (127,677)$ (431)$ 2,556$ 163,200$ 6,753,305$ 984,152$ Required or Actual Decertification Date 12/9/2013 12/31/2023 12/10/2018 12/31/2023 12/31/2026 12/31/2029 12/31/2029 12/31/2022 12/31/2045 12/31/2030 12/31/2050 12/31/2050 12/31/2050 12/31/2032 TIF District Type Redevelopment Housing Redevelopment Housing & Housing Housing Housing Redevelopment Housing Economic Housing Housing Redevelopment Economic (d) = decertified Redevelopment Development Development UN A U D I T E D EDA Agenda: 3/12/25 5B. Consideration of EDA Authority Grant partial Disbursement and Certificate of Completion – Block 52 Holdings, LLC for Block 52 Mixed Use Redevelopment in the amount of 377,400 Prepared by: Economic Development Manager Meeting Date: 3/12/25 ☒ Regular Agenda Item ☐ Consent Agenda Item Reviewed by: Community Development Director, Finance Director, Community & Economic Development Coordinator Approved by: City Administrator ACTION REQUESTED 1. Motion to execute the Certificate of Completion for Block 52 Mixed-Use Redevelopment Project and authorize partial disbursement of the Authority Grant funding in the amount of $377,400 to Block 52 Holdings, LLC as authorized in the Purchase and Development Contract. 2. Motion of other as determined by the EDA. REFERENCE AND BACKGROUND The EDA is asked to consider authorizing the execution of the Certificate of Completion for the Block 52 Mixed Use Redevelopment project and further approve partial disbursement of the “Authority Grant” funding in the amount of $377,400 to Block 52 Holdings, LLC, contingent on satisfactory completion of remaining contract items. The amended Purchase Agreement and Private Development Contract for Block 52 includes the provision for an “Authority Grant” in the amount of $417,400 as additional funding support for public purpose expenditures related to the development. These expenditures are identified in the contract and include items such as sidewalk, parking lot and streetscape improvements. Per the executed Purchase and Development Contract for Block 52, prior to approving a disbursement of the Authority Grant, it is required that the developer receive from the EDA a Certificate of Completion. The Certification of Completion verifies that the “Minimum Improvements” on site have been completed. The Minimum Improvements are those per the final approved development plans. It is further required that the Developer be in compliance with the City Development Contract, which corresponds to the Block 52 Planned Unit Development conditions of approval. The developer has requested consideration of disbursement of the Authority Grant dollars. The EDA Agenda: 3/12/25 developer submitted paid invoices exceeding the Authority Grant total of $417,400. At the April 10, 2024, EDA meeting, staff sought EDA authorization to issue the Certificate of Completion for the Block 52 Redevelopment and to disburse $290,000 of funding from the Authority Grant contingent on completion of a list of items included on a Temporary Certificate of Occupancy (CO) issued by the City Building Department. The EDA approved issuance of the Certificate of Completion and partial disbursement of the Authority Grant funding in the amount of $290,000 contingent on satisfactory completion of the development’s “punch list” items. The “punch list” items were approximately 90 percent completed by October 2024 at which time the Building Department issued a final Certificate of Occupancy to the developer for the building. However, there were several PUD approval items remaining to be completed in satisfaction of the Minimum Improvements provision and due to that status, neither the Certificate of Completion issuance nor the partial Authority Grant disbursement has occurred. The EDA’s attorney recommended withholding the disbursement until the Minimum Improvements were satisfied. The developer has been completing those remaining PUD approval items and obtaining City staff acknowledgement. As of March 7, 2025, four key items are yet to be completed. They include the completion of a Parking Management Plan (a PUD requirement) and submittal of appropriate lien waivers related to the development (an EDA loan and contract requirement) plus lighting installment in the parking lot and a couple of very minor tasks that should be completed in warmer weather (May or June). While all of the work on the eligible items authorized by the Grant are completed, staff recommend holding back $40,000 of the Authority Grant funding until these noted project items are completed. I. Budget Impact: The budget impact from the consideration of the Authority Grant is minimal. The EDA has a contractual obligation to disburse the Authority Grant to the developer once it issues a Certificate of Completion. The Authority Grant amount being considered for disbursement at this time is $377,400. The total Authority Grant authorized in the Development Contract is $417,400. The funds are being drawn from pooled TIF District Funds. 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 Authority Grant request. Additional time toward this effort involves report EDA Agenda: 3/12/25 preparation and EDA meeting presentation. No other staff are required to complete the work in this effort. III. Comprehensive Plan Impact: N/A STAFF RECOMMENDATION Staff recommend that the Certificate of Completion be authorized and an Authority Grant disbursement in the amount of $377,400 (withholding $40,000 from the $417,400 Grant total) be approved. After the unfinished work items are completed, additional authorization of disbursement of the Authority Grant funding will be presented to the EDA. SUPPORTING DATA A. Certificate of Completion – Unsigned B. Authority Grant Invoice Submittal and Payment Claim Voucher Packet (old) C. Authority Grant Except from Development Contract D. Final Certificate of Occupancy (CO) E. Temporary CO EDA Agenda: 3/12/25 5C. Consideration of Adopting the EDA 2025-2027 Workplan (Goals and Objectives) Prepared by: Economic Development Manager Meeting Date: 3/12/25 ☒ Regular Agenda Item ☐ Consent Agenda Item Reviewed by: Community Development Director, Finance Director, Community & Economic Development Coordinator Approved by: City Administrator ACTION REQUESTED 1. Motion to adopt the 2025-2027 EDA Workplan (Goals and Objectives). 2. Motion of other as determined by the EDA. REFERENCE AND BACKGROUND The EDA is asked to consider adopting its 2025-2027 Workplan (Goals and Objectives) guiding its economic development activities over the next three years. The EDA discussed the proposed 2025-2027 Workplan in its Workshop meeting prior to the regular EDA meeting on March 12, 2025. The proposed Workplan is relatively similar to the previous three-year plan, minus the recent accomplishments such as completion of the Block 52 Redevelopment and the Country Club Headwaters Housing development, both of which were large, complicated multi- year development efforts. Identifying activities in the proposed Workplan is somewhat logical and stems from the remaining items in the previous Workplan, plus adding new opportunity areas that have arisen in the past 18 months. These include the Block 34 Redevelopment efforts (downtown focus) as well as continued support for smaller redevelopment efforts in the core downtown area and further exploration of the optimal re-use and timeline of redevelopment of the Cedar Fair site along Broadway East. Continued industrial development efforts in the form of retention and attraction are also needed as the EDA still has about 50 +/- acres of public land available for industrial development in smaller sized lots in . Prudent and effective deployment and management of the available business assistance tools also rises to the top of the Workplan. Finally, the best use of the state funding known as Direct Housing Aid is a new opportunity area. The estimated total from the Direct Housing Aide is approximately $155,000 +/-. It needs to be used to support affordable housing activities. Staff is planning to hold an upcoming workshop to further discuss housing development focus activities-efforts, including the optimal usage of these funds. EDA Agenda: 3/12/25 At this specific point it time, there are a couple of significant development efforts underway that are expected to be quite complex and require numerous steps of EDA review and decision points regarding land sales, TIF District formation and/or other possible forms of financial assistance as may be needed. The action steps for these proposals may play out over the next several months and continue for an additional three to five years. They both align with the previously noted obvious focus areas. A summary of the Workplan focus areas is noted below Summary - key Workplan Focus projects and efforts 1. Block 34 Redevelopment efforts: Sale of land; TIF District establishment, Development Agreement and Development Contract, Redevelopment Funding Program submittals, etc. 2. Otter Creek Industrial Business Expansion and/or new facilities 3. Cedar Fair EDA owned site redevelopment exploration 4. Direct Housing Aid Usage Direction-Decision-Deployment 5. Optimal deployment and management of the business assistance programs I. Staff Impact: The previous 2022-2024 Workplan timeframe has been completed. Preparation of a new 2025-2027 EDA Workplan is an important guiding document as the EDA utilizes City staff and financial resources in its efforts to perform its mission and create a healthy vibrant local economy. City staff involved in the formation of the proposed Workplan include the City Administrator, the Community Development Director and the Economic Development Manager. II. Budget Impact: Review and editing tasks of the annual Workplans are included in the job descriptions of both of the EDA support staff, and as such, those associated costs are part of the EDA’s routine operating expenditures. A. STAFF RECOMMENDATION: Staff recommend that the EDA adopt the proposed 2025-2027 EDA Workplan. The plan is a useful document that will guide the EDA efforts in its utilization of City staff and the various EDA financial resources with the overall goal of creating a healthy local economy. While the three-year plan is a good guide over the next three years, if the need arises at some point in the future to adjust the Workplan, that can be done at any time by directing staff to incorporate new goals into the Workplan or completely revamping it to reflect new focus activities and/opportunities. B. SUPPORTING DATA: A. Proposed 2025-2027 EDA Goals and Objectives Workplan B. Redline 2022-2024 EDA Goals and Objectives Workplan EDA Agenda: 3/12/25 C. 2040 + Comprehensive Plan Economic Development Implementation Summary 1 | Page MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY 2025-2027 ECONOMIC DEVELOPMENT WORK PLAN EDA Purpose: The EDA is charged with coordinating and administering the City of Monticello’s economic development and redevelopment plans and programs. The EDA is also responsible for housing and housing redevelopment. EDA Work Plan Mission Statement: The EDA’s work plan is adopted in support of achieving the goals of the Monticello 2040 + Comprehensive Plan. The EDA will be proactive by developing and undertaking actions for achievement of the Comprehensive Plan’s Economic Development goals and will be reactive in responding to economic development opportunities as they arise in the most timely and effective manner possible. The EDA shall utilize the Economic Development Implementation Chart contained in the Comprehensive Plan as a guiding document creating its 2022-2024 Work Plan. Comprehensive Plan Goals: 1. Business Attraction and Retention 2. Tax Base Expansion 3. Downtown Vitality 4. Redevelopment and Reinvestment 5. Life Cycle Housing 6. Workforce Development 7. Promotion and Partnerships 8. Opportunity Focus Areas 2 | Page GOAL #1: BUSINESS ATTRACTION AND RETENTION Policy 1.1. Business and Employment Retention Strategies: 1. Maintain a strong Business Retention and Expansion (BR&E) program to monitor opportunities for continued growth and expansion of businesses as well as the continued relationship development between the City and existing businesses. 2. Identify and support companies that are expanding and adding employees. 3. Identify and promote programs that assist existing companies in expansion and creation of new jobs. 4. Assist and support companies in accessing business assistance programs including financing and educational programs. 5. Bring Businesses and Educations Organizations together to create training programs to foster new living wage opportunities. Policy 1.2: Local Business Support Strategies: 1. Facilitate relationships with existing businesses on the expansion, redevelopment and improvement of their buildings and facilities. 2. Utilize façade rehabilitation programs, small business loans, grants and other tools to encourage property reinvestment and support local businesses. 3. Foster partnerships and maintain networking relationships with the goal of maintaining communication in support of existing businesses. GOAL #2: TAX BASE EXPANSION Policy 2.1: Diversify economic sectors to broaden the base of available living wage employment in the community. Strategies 1. Capitalize on the proximity to the I-94 regional transportation facilities, available land and educated and skilled workforce to create opportunities for job growth. 2. Inventory existing industry clusters by attracting similar and complementary businesses. 3. Work with existing business clusters to expand the attraction of supply chain companies. 4. Recognize changing land use patterns for industrial parks, and other or alternative uses such as co-working spaces. Policy 2.2: Maintain a business development and job creation toolbox to assist existing and future businesses. Strategies: 1. Identify and communicate new or innovative state and federal programs or grants which could be leveraged to support business development. 3 | Page 2. Proactively support small business start-up efforts through programs, collaborative efforts and various tools available for small businesses. Policy 2.3. Work collaboratively with partners to foster the attraction of new businesses. Strategies: 1. Continue to support the IEDC interactions within the Wright County Workforce Pathways efforts in addressing workforce needs and training. 2. Consider IEDC recommendations and be prepared to be a partner in potential solutions based on WCWFP findings. 3. Partner with Wright County EDA on infrastructure and development project funding as warranted. GOAL #3: DOWNTOWN VITALITY Policy 3.1: Implement the recommendations of the Downtown Small Area Plan. Strategies: 1. Support and advocate for improvements to the downtown area as envisioned in the Small Area Plan and Walnut Street Corridor Plan. 2. Develop and support the appropriate policies, programs, and incentives that enable the type of development described in the Plan. 3. Continue to build a funding base for use in property acquisition and redevelopment efforts in targeted areas. 4. Implement a façade improvement program for desired revitalization areas. 5. Continue to meet with downtown property owners with the goal of relationship building in informal group settings (Downtown Rounds) or individually and to understand their concerns with traffic, parking, land use and possible reinvestment in their property as well as willingness to sell, partner, desired price, etc. 6. Encourage continued incorporation of arts as an economic development tool for Downtown Monticello and the community at large. 7. Support opportunities for park and pathway development as consistent with the Downtown Small Area Plan. 8. Encourage the redesign of the pathway connection under the MN-TH #25 bridge to incorporate safety elements and improved lighting. 9. Ensure that greenway and pedestrian/cycle connections are considered within the downtown and from the downtown to other areas within the community. 10. Support park improvements in the downtown area. 4 | Page GOAL #4: REDEVELOPMENT & REINVESTMENT Policy 4.1: Redevelopment: Continue to support redevelopment efforts for publicly owned properties in Block 52, Block 34 and other EDA owned sites. Strategies: 1. Remain open to and analyze strategic opportunities for redevelopment throughout the community. 2. Proactively market Block 34, the Cedar/Broadway site, 4th Street site, West River Street parcel and the West 7th Street land tract to the commercial and residential development community towards a goal of attaining the highest and best use. 3. Engage with developers in an effort to identify an appropriate scale of redevelopment in Block 34 and support such efforts through the use of available economic development tools. GOAL #5: LIFE-CYCLE HOUSING Policy 5.1: Actively promote and seek opportunities for the development of a wide variety of housing types, styles and price points as a mechanism to support and attract employment. Strategies: 1. Develop revised policy statements for housing which address the identified 2023 Housing Study needs. 2. Continue to market workforce housing development on EDA owned land or at suitable sites in the City, including the Downtown. 3. Support efforts by private and non-profit entities to develop affordable housing projects utilizing state and federal programs. 4. Examine the use and application of available housing TIF dollars per the 2016 TIF Management Plan and the Direct Housing Aide funding as well as the adopted Policy Statements for Available TIF Funds. 5. Continue to periodically examine housing stock for aging or blighted properties and research development of programs for redevelopment and/or revitalization of existing housing. 6. Market the availability of incentives/subsidies available for development of housing. GOAL #6: WORKFORCE DEVELOPMENT Policy 6.1. Diversified and Skilled Workforce Strategies: 1. Support interactions with local organizations to address workforce needs and training. 2. Partner with Wright County Workforce Pathways (WCWFP) on solutions for workforce needs and training. 3. Promote Central Minnesota Jobs and Training Services as an option to Community College or university for students seeking alternative careers in the trades, manufacturing, and similar sectors. 5 | Page 4. Support the development of a plan to market living wage employment opportunities aimed at the local commuter workforce GOAL #7: PROMOTION & PARTNERSHIPS Policy 7.1: Create and maintain a comprehensive Marketing & Communication Strategy for priority sectors and locations. Strategies: 1. Identify community partners that can be regularly engaged and advised on economic development activities and events. 2. Engage with partners in the development and implementation of strategic marketing plans, including creation of an overall economic development brand, for various focus audiences and sectors of development; residential, commercial and industrial and redevelopment. 3. Incorporate the marketing of EDA incentive programs in a more proactive manner, both within the community and beyond, a. Present existing and new incentive programs to smaller community groups, local banks, realtors, and local businesses either in an informal group session or a formal roundtable format. b. Develop and communicate a “complete” development package program which provides support and assistance to prospects and developers from inquiry to construction. c. Measure the effectiveness of the marketing efforts to guide adjustments as needed. 4. Market industrial development at the Monticello Business Center (Otter Creek Business Park) to a broad variety of prospects as guided by the Comprehensive Plan. a. Focus on prospects which serve or rely on the St. Cloud and Twin Cities markets. b. Focus on supply chain prospects. 5. In collaboration with the IEDC, communicate with current business and industry in support of Business Retention & Expansion. a. Engage in informal business and industry small group meetings and explore potential format of helpful formal round tables meetings. b. Work with the Monticello Times to do a business spotlight or profile article two times per year. c. Leverage the networks of existing commercial and industrial entities currently doing business in and around Monticello. Policy 7.2: Engage as a partner in local and regional planning and development opportunities. Strategies: 1. Monitor the regional planning efforts of the Central Mississippi River Regional Planning Partnership (CMRRPP) and engage with feedback as requested. 2. Consider funding and/or completing studies that provide policy and strategy framework for desired land uses/or projects in the downtown and for other programs. 3. Monitor commuter rail development in and around the Twin Cities metro region for potential benefits and opportunities to serve Monticello. 6 | Page GOAL #8. OPPORTUNITY FOCUS AREAS Policy 8.1: Opportunity Focus Areas 1. Maintain open lines of communication with property and business owners to understand their long-term development objectives. 2. Consider strategies, loans, grants and other financing methods to boost reinvestment and improvements. 3. Encourage public infrastructure investment in these areas in an effort to support private investment. 4. Focus on additional outreach with the downtown businesses with a goal of further enhancing and supporting a dynamic vibrant core downtown area. Policy 8.2: Support community quality-of-life initiatives which act as economic development tools. Strategies: 1. Encourage and support coordinated planning and development of parks, trails in or near business districts. 2. Increase the visibility of the intersection of all amenities including parks and trails with the economic hubs of the city. 3. Support the development of Bertram Chain of Lakes Regional Park, including community Connections. Appendix: Monticello 2040 Vision + Plan, Economic Development and Implementation 1 | Page MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY 2025-2027 ECONOMIC DEVELOPMENT WORK PLAN EDA Purpose: The EDA is charged with coordinating and administering the City of Monticello’s economic development and redevelopment plans and programs. The EDA is also responsible for housing and housing redevelopment. EDA Work Plan Mission Statement: The EDA’s work plan is adopted in support of achieving the goals of the Monticello 2040 + Comprehensive Plan. The EDA will be proactive by developing and undertaking actions for achievement of the Comprehensive Plan’s Economic Development goals and will be reactive in responding to economic development opportunities as they arise in the most timely and effective manner possible. The EDA shall utilize the Economic Development Implementation Chart contained in the Comprehensive Plan as a guiding document creating its 2022-2024 Work Plan. Comprehensive Plan Goals: 1. Business Attraction and Retention 2. Tax Base Expansion 3. Downtown Vitality 4. Redevelopment and Reinvestment 5. Life Cycle Housing 6. Workforce Development 7. Promotion and Partnerships 8. Opportunity Focus Areas Deleted: 2 Deleted: 4 2 | Page GOAL #1: BUSINESS ATTRACTION AND RETENTION Policy 1.1. Business and Employment Retention Strategies: 1. Maintain a strong Business Retention and Expansion (BR&E) program to monitor opportunities for continued growth and expansion of businesses as well as the continued relationship development between the City and existing businesses. 2. Identify and support companies that are expanding and adding employees. 3. Identify and promote programs that assist existing companies in expansion and creation of new jobs. 4. Assist and support companies in accessing business assistance programs including financing and educational programs. 5. Bring Businesses and Educations Organizations together to create training programs to foster new living wage opportunities. Policy 1.2: Local Business Support Strategies: 1. Facilitate relationships with existing businesses on the expansion, redevelopment and improvement of their buildings and facilities. 2. Utilize façade rehabilitation programs, small business loans, grants and other tools to encourage property reinvestment and support local businesses. 3. Foster partnerships and maintain networking relationships with the goal of maintaining communication in support of existing businesses. GOAL #2: TAX BASE EXPANSION Policy 2.1: Diversify economic sectors to broaden the base of available living wage employment in the community. Strategies 1. Capitalize on the proximity to the I-94 regional transportation facilities, available land and educated and skilled workforce to create opportunities for job growth. 2. Inventory existing industry clusters by attracting similar and complementary businesses. 3. Work with existing business clusters to expand the attraction of supply chain companies. 4. Recognize changing land use patterns for industrial parks, and other or alternative uses such as co-working spaces. Policy 2.2: Maintain a business development and job creation toolbox to assist existing and future businesses. Strategies: 1. Identify and communicate new or innovative state and federal programs or grants which could be leveraged to support business development. Formatted: Highlight Deleted: positions Deleted: Consider 3 | Page 2. Proactively support small business start-up efforts through programs, collaborative efforts and various tools available for small businesses. Policy 2.3. Work collaboratively with partners to foster the attraction of new businesses. Strategies: 1. Continue to support the IEDC interactions within the Wright County Workforce Pathways efforts in addressing workforce needs and training. 2. Consider IEDC recommendations and be prepared to be a partner in potential solutions based on WCWFP findings. 3. Partner with Wright County EDA on infrastructure and development project funding as warranted. GOAL #3: DOWNTOWN VITALITY Policy 3.1: Implement the recommendations of the Downtown Small Area Plan. Strategies: 1. Support and advocate for improvements to the downtown area as envisioned in the Small Area Plan and Walnut Street Corridor Plan. 2. Develop and support the appropriate policies, programs, and incentives that enable the type of development described in the Plan. 3. Continue to build a funding base for use in property acquisition and redevelopment efforts in targeted areas. 4. Implement a façade improvement program for desired revitalization areas. 5. Continue to meet with downtown property owners with the goal of relationship building in informal group settings (Downtown Rounds) or individually and to understand their concerns with traffic, parking, land use and possible reinvestment in their property as well as willingness to sell, partner, desired price, etc. 6. Encourage continued incorporation of arts as an economic development tool for Downtown Monticello and the community at large. 7. Support opportunities for park and pathway development as consistent with the Downtown Small Area Plan. 8. Encourage the redesign of the pathway connection under the MN-TH #25 bridge to incorporate safety elements and improved lighting. 9. Ensure that greenway and pedestrian/cycle connections are considered within the downtown and from the downtown to other areas within the community. 10. Support park improvements in the downtown area. Deleted: downtown Deleted: at-large Formatted: Highlight 4 | Page GOAL #4: REDEVELOPMENT & REINVESTMENT Policy 4.1: Redevelopment: Continue to support redevelopment efforts for publicly owned properties in Block 52, Block 34 and other EDA owned sites. Strategies: 1. Remain open to and analyze strategic opportunities for redevelopment throughout the community. 2. Proactively market Block 34, the Cedar/Broadway site, 4th Street site, West River Street parcel and the West 7th Street land tract to the commercial and residential development community towards a goal of attaining the highest and best use. 3. Engage with developers in an effort to identify an appropriate scale of redevelopment in Block 34 and support such efforts through the use of available economic development tools. GOAL #5: LIFE-CYCLE HOUSING Policy 5.1: Actively promote and seek opportunities for the development of a wide variety of housing types, styles and price points as a mechanism to support and attract employment. Strategies: 1. Develop revised policy statements for housing which address the identified 2023 Housing Study needs. 2. Continue to market workforce housing development on EDA owned land or at suitable sites in the City, including the Downtown. 3. Support efforts by private and non-profit entities to develop affordable housing projects utilizing state and federal programs. 4. Examine the use and application of available housing TIF dollars per the 2016 TIF Management Plan and the Direct Housing Aide funding as well as the adopted Policy Statements for Available TIF Funds. 5. Continue to periodically examine housing stock for aging or blighted properties and research development of programs for redevelopment and/or revitalization of existing housing. 6. Market the availability of incentives/subsidies available for development of housing. GOAL #6: WORKFORCE DEVELOPMENT Policy 6.1. Diversified and Skilled Workforce Strategies: 1. Support interactions with local organizations to address workforce needs and training. 2. Partner with Wright County Workforce Pathways (WCWFP) on solutions for workforce needs and training. 3. Promote Central Minnesota Jobs and Training Services as an option to Community College or university for students seeking alternative careers in the trades, manufacturing, and similar sectors. Deleted: <#>Advocate for adequate City Council support for related Block 52 infrastructure components that are impacted by redevelopment proposals.¶ Advocate for the best designs and efficient traffic circulation related to the Walnut Street- River Street connection in support of Block 52 redevelopment.¶ Formatted: Highlight Formatted: Highlight Formatted: Highlight 5 | Page 4. Support the development of a plan to market living wage employment opportunities aimed at the local commuter workforce GOAL #7: PROMOTION & PARTNERSHIPS Policy 7.1: Create and maintain a comprehensive Marketing & Communication Strategy for priority sectors and locations. Strategies: 1. Identify community partners that can be regularly engaged and advised on economic development activities and events. 2. Engage with partners in the development and implementation of strategic marketing plans, including creation of an overall economic development brand, for various focus audiences and sectors of development; residential, commercial and industrial and redevelopment. 3. Incorporate the marketing of EDA incentive programs in a more proactive manner, both within the community and beyond, a. Present existing and new incentive programs to smaller community groups, local banks, realtors, and local businesses either in an informal group session or a formal roundtable format. b. Develop and communicate a “complete” development package program which provides support and assistance to prospects and developers from inquiry to construction. c. Measure the effectiveness of the marketing efforts to guide adjustments as needed. 4. Market industrial development at the Monticello Business Center (Otter Creek Business Park) to a broad variety of prospects as guided by the Comprehensive Plan. a. Focus on prospects which serve or rely on the St. Cloud and Twin Cities markets. b. Focus on supply chain prospects. 5. In collaboration with the IEDC, communicate with current business and industry in support of Business Retention & Expansion. a. Engage in informal business and industry small group meetings and explore potential format of helpful formal round tables meetings. b. Work with the Monticello Times to do a business spotlight or profile article two times per year. c. Leverage the networks of existing commercial and industrial entities currently doing business in and around Monticello. Policy 7.2: Engage as a partner in local and regional planning and development opportunities. Strategies: 1. Monitor the regional planning efforts of the Central Mississippi River Regional Planning Partnership (CMRRPP) and engage with feedback as requested. 2. Consider funding and/or completing studies that provide policy and strategy framework for desired land uses/or projects in the downtown and for other programs. 3. Monitor commuter rail development in and around the Twin Cities metro region for potential benefits and opportunities to serve Monticello. Deleted: . Deleted: plan Formatted: Font: Bold 6 | Page GOAL #8. OPPORTUNITY FOCUS AREAS Policy 8.1: Opportunity Focus Areas 1. Maintain open lines of communication with property and business owners to understand their long-term development objectives. 2. Consider strategies, loans, grants and other financing methods to boost reinvestment and improvements. 3. Encourage public infrastructure investment in these areas in an effort to support private investment. 4. Focus on additional outreach with the downtown businesses with a goal of further enhancing and supporting a dynamic vibrant core downtown area. Policy 8.2: Support community quality-of-life initiatives which act as economic development tools. Strategies: 1. Encourage and support coordinated planning and development of parks, trails in or near business districts. 2. Increase the visibility of the intersection of all amenities including parks and trails with the economic hubs of the city. 3. Support the development of Bertram Chain of Lakes Regional Park, including community Connections. Appendix: Monticello 2040 Vision + Plan, Economic Development and Implementation EDA Agenda: 3/12/2025 6. Economic Development Manager’s Report Prepared by: Economic Development Manager Meeting Date: 3/12/2025 ☒ Other Business Reviewed by: N/A Approved by: N/A REFERENCE AND BACKGROUND 1. Vacant EDA Commissioner Status: There are two individuals with business experience and backgrounds who have had discussions with EDA members and/or City staff regarding the potential of being members of the EDA. They have been asked to complete the EDA application and submit it back to City staff in the next two weeks. The goal would be to have the EDA hold interviews with the applicants in late March (Wednesday, March 31, 2025) or early April. 2. EDA Attorney Interview and Selection Process: EDA Attorney Gina Fiorini and several of her colleges recently left Kennedy & Graven to work at Minneapolis law firm, Kutak Rock. Kutack Rock has extensive experience in municipal bond issuances and economic development and TIF financing. Per the EDA’s consensus direction at the February meeting, City staff continue to work with Gina on several current development projects. For the longer-term horizon, staff will schedule interview sessions with the law firms that work in this realm. The EDA will want to plan for approximately 2.5 +/- hours of interview timeframe (2 to 3 firms) possibly at the end of April or as late as mid-May. This interaction process will allow a dialogue between the EDA and the prospective legal firms regarding experience and pricing-rates methods and generally how they would propose to meet and respond to the EDA’s legal needs which consist of various financial assistance programs as well as real estate purchases and sales and potential tenant relocation matters. 3. Due-North Car Wash GMEF Loan Payoff: The Due North Car Wash ownership RRG Holdings, LLC requested a payoff amount for the EDA GMEF loan as part of the refinancing that the firm is pursuing. Their refinance closing occurred on March 7, 2025. The total payoff amount is $123,215.66. That total will go back into the GMEF Loan balance increasing the available funds to approximately $$808,300.00 +/-. In addition, the two outstanding invoices related to EDA attorney fees connected to the Due North reorganization in October 2024 as well as the recent review of the legal implications related to RRG Holdings proposed GMEF Loan subordination were sent to the Due North ownership EDA Agenda: 3/12/2025 group, and they were also paid as part of the refinancing closing. The total fees came to $1,515.00. 4. Economic Development Services Assistance Contract Update: No action is proposed on reinstating the Economic Development Services Assistance consultant contract as of yet. Staff believe it is best to continue to evaluate the need for this assistance as the year progresses and if workloads become overly burdensome, then seek to schedule interviews with the consultants that perform this service work. There are only a few firms that engage in this work activity focus area, so the options for this service are somewhat limited 5. Rustech Brewing, LLC – Equipment Sale Proposed: Staff continue to stay in touch with Bill Burt, the owner Rustech, regarding the next step of winding up the business venture and disposing of the assets. The EDA has a first security interest through a Purchase Money Security Interest (PMSI) on a list of brewing equipment through a valid UCC (Universal Commercial Code) filing with the MN Secretary of State’s office. The primary lender, Bank Vista, Sartell, MN has acknowledged that status. Mr. Burt is in the process of seeking bids for the equipment through three online websites. Staff have asked Mr. Burt to have the EDA sign off for acceptance of any bids that are received through the online auction process. The EDA President and/or Executive Director are the logical sign off individuals for this step. The EDA will be updated as the equipment auction process occurs over the coming months. 6. Nordic Restaurant and Taphouse GMEF Loan Application Submittal Update: The various lenders who have been approached to support the property purchase and remodel of the new Nordic Restaurant and Taphouse in Block 52 (106 Walnut Street) recently had joint meeting discussing the proposed project. The exchange of information was very helpful and yielded good information regarding the immediate next steps that would be beneficial for the applicant and the potential lenders (Sherburne State Bank, The Initiative Foundation and the EDA [GMEF Loan Program]). At this time, it appears that the applicant has decided to pause all loan requests from the lenders and focus on utilizing other sources of funding to renovate the property. At some point in the future, the loan request process may restart. In the interim, City staff anticipate that Nordic Restaurant and Taphouse may seek to use the EDA Façade Improvement Forgivable Loan program to redo the exterior of the property as allowed in the program policies. 7. Prospect List – Please see Exhibit A. Date of Contact Company Name Business Category Project Description Building‐Facility Retained Jobs New Jobs Total Investment Project Status 5/22/2018 Karlsburger Foods Food Products Mfg.Facilty Expansion 20,000 sq. ft. +/-42 10 to 20 $4,500,000 On Hold 2/28/2022 Project Emma II Light Ind-Assembly New Construction 20,000 sq. ff.0 4 $1,350,000 Active Search 10/28/2021 Project Stallion Technology Service New Construction 42,000 sq. ft.40 $3,600,000 Active Search 4/28/2022 Project Cougar Precision Machining-Mfg.New Construction 35,000 to 45,000 sq. ft.38 $4,700,000 Active Search 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft.0 500 $90,000,000 Active Search 11/9/2022 Project Tea Mfg New Construction 25,000 sq. ft.55 20 $5,800,000 Active Search 4/20/2023 Project Lodge DH1 Lodging-Service New Construction ???$9,500,000 to $12,500,000 Active Search 5/30/2023 Project Flower-M & M Commercial Concept Expansion ????Concept 6/9/2023 Project Pez Mfg New Construction 6,000 to 8,500 sq. ft.12 2 $1.300,000 Active Search 8/16/2023 Project Lodge RT4 Lodging-Hopsitality New Construction 98 Room Hotel N/A 30 $19,500,000 Identified Site 9/19/2023 Project Panda #4 SZ Childcare Facility New Construction ?N/A ?$2,000,000 +/-Active Search 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 PROSPECT LIST 03/07/2025 Date of Contact Company Name Business Category Project Description Building‐Facility Retained Jobs New Jobs Total Investment Project Status PROSPECT LIST 03/07/2025 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 25,000 sq. ft. 0 20 $5,500,000 Active Search 3/29/2024 Project ET-BB-12-9 Industrial Relocate ‐ Existing Bldg 12,000 sq. ft.12 $1,150,000 Identified Site 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 7/3/2024 Project Hair Obsess Service Property Acquisition and Renovation 2,100 sq. ft.14 6 $600,000 Identified Site 7/30/2024 Project EPG 40x2-50 Industrial New Construction 40,000 sq. ft. 0 40 $4,000,000 Active Search 12/3/2024 Project LEI Pack Industrial New Construction 35,000 sq. ft. 0 21 $15,500,000 Active Search 2/5/2025 Project Nordic Resturant-Taphouse Relocate ‐ Remodel‐4,300 sq. ft. 9 1 $1,090,000 Identified Site Contacts: M = 04 YTD = 05