EDA Agenda - 02/12/2025AGENDA
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, February 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. Annual Business Meeting
A. Consideration of electing EDA officers
B. Consideration of reviewing EDA Bylaws
C. Consideration of reviewing EDA Enabling Resolution
D. Consideration of EDA Financial Statements and Fund Balance Information
3. Consideration of Additional Agenda Items
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
ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING
(Academy Room)
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
Discussion and Review EDA Workplan Proposed 2025-2027
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
5. Public Hearing
N/A
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
B. Consideration of LHB’s Tax Increment Financing (TIF) Blight and Substandard
Findings Work Scope Proposal related to Block 34 Redevelopment efforts
C. Consideration of Authorizing Rights of Entry for LHB Inc. and WSB & Associates
related to TIF Qualification Inspections and Environmental Investigations in Block 34
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
7. Other Business
A. Consideration of Economic Development Manager’s Report
8. Adjournment
EDA Agenda: 2/12/2025
2A. EDA Annual Business Meeting
Prepared by:
Community & Economic Development
Coordinator
Meeting Date:
2/12/2025
☒ Regular Agenda Item
☐ Consent Agenda Item
Reviewed by:
N/A
Approved by:
Economic Development Manager
ALTERNATIVE ACTIONS A:
1. Motion to elect 2025 officers: __________________ as President,
____________________ as Vice President, and _______________ as Treasurer.
2. Motion to table election of 2025 EDA Officers.
ALTERNATIVE ACTIONS B:
1. Motion to direct staff to prepare draft amendments to the EDA Enabling
Resolution or Bylaws as follows: (amendments to the Enabling Resolution require
a public hearing) as determined by the EDA.
2. Motion of other.
REFERENCE AND BACKGROUND:
The EDA is required to hold an Annual Meeting each year to elect officers, make appointments
as needed and consider Bylaw changes. The EDA’s enabling resolution and Bylaws are attached
for review. Staff would be happy to answer any questions or requested clarifications on the
organizational documents. It should be noted that some items may require consultation with
EDA legal counsel and further review and consideration at a future EDA meeting.
Offices which need to be filled for 2025 include the President, Vice President and Treasurer.
Staff can serve as the EDA Secretary for recording meeting minutes. It should be noted that City
Council EDA members may also serve as officers.
Also 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 for
consideration of the Annual Business Meeting.
II. Budget Impact: No expected budget impact from the Annual Business Meeting.
2 STAFF RECOMMENDATION:
Staff defer to the EDA for appointment of officers (Alternative Action A). As related to Alternative
Actions B1 and/or B2, currently, staff do not have any recommended amendments to the
Enabling Resolution or Bylaws, though staff will defer to the EDA regarding any concerns and/or
preferences in this realm. Again staff may be able to answer questions at the meeting or possibly
further consult with the EDA attorney to research and address any questions or suggested
changes. If the EDA does not feel that any changes are needed in the organizational documents,
then Alternative B2 would be appropriate with a direction of “no change to the organizational
documents”.
SUPPORTING DATA:
A. EDA Bylaws
B. EDA Enabling Resolution
C. EDA 2024 Year End Financial Reports
CITY OF MONTICELLO
Schedule of Assets, Liabilities, Deferred Inflows of Resources, and Fund Balances
Economic Development Authority & Small Cities Development Program
December 31, 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 1,676,657 682,833$ -$ 49,450$ 37,719$ 104,142$ 248,445$ 115,764$ 75,189$ 100,802$ 77,340$ 21,049$ 96,081$ (31)$ (31)$ (31)$ 2,956$ -$ 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 111,607 - - 728,845 - - - - - - - - - - - - - (840,452) - -
Prepaid items 3,511 - - - - - - - - - - - - - - - - - 3,511 -
Notes receivable 127,246 574,965 - - - - - - - - - - - - - - - - 702,211 90,307
Land held for resale 3,250,601 - - - - - 163,200 - - - - - - - - - - - 3,413,801 -
TOTAL ASSETS 5,180,821$ 1,257,798$ -$ 778,295$ 37,719$ 104,142$ 416,336$ 115,764$ 78,514$ 100,802$ 77,340$ 21,049$ 96,081$ (31)$ (31)$ (31)$ 2,956$ (840,452)$ 7,427,072$ 984,152$
LIABILITIES
Accounts and contracts payable 2,378 - - - - - - - - - - - - - 127,246 - - -$ 129,624$ -
Intrafund payable - - 45,363 - - - - - - 64,644 - - 728,845 400 400 400 400 (840,452) - -
Unearned revenue - - - - - - 163,200 - - - - - - - - - - (163,200) - -
Escrow deposits 41,254 - - - - - - - - - - - - - - - - - 41,254 -
Total liabilities 43,632 - 45,363 - - - 163,200 - - 64,644 - - 728,845 400 127,646 400 400 (1,003,652) 170,878 -
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 - 778,295 37,719 104,142 248,445 115,764 75,189 36,158 77,340 21,049 (632,764) (431) (127,677) (431) 2,556 163,200 2,278,092 984,152
Assigned
Economic Development 4,876,391 - (45,363) - - - - - - - - - - - - - - - 4,831,028 -
Façade Grant 132,490 - - - - - - - - - - - - - - - - - 132,490 -
Total fund balance 5,134,132 1,257,798 (45,363) 778,295 37,719 104,142 248,445 115,764 75,189 36,158 77,340 21,049 (632,764) (431) (127,677) (431) 2,556 163,200 7,245,121 984,152
TOTAL LIABILITIES,
AND FUND BALANCES 5,180,821$ 1,257,798$ -$ 778,295$ 37,719$ 104,142$ 416,336$ 115,764$ 78,514$ 100,802$ 77,340$ 21,049$ 96,081$ (31)$ (31)$ (31)$ 2,956$ (840,452)$ 7,427,072$ 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
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CITY OF MONTICELLO
Schedule of Revenues, Expenditures and Other Financing Sources (Uses)
Economic Development Authority & Small Cities Development Program
For the Period Ended December 31, 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 SCDPRevenuesProperty 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
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EDA Agenda: 2/12/2025
2A. EDA Annual Business Meeting
Prepared by:
Community & Economic Development
Coordinator
Meeting Date:
2/12/2025
☒ Regular Agenda Item
☐ Consent Agenda Item
Reviewed by:
N/A
Approved by:
Economic Development Manager
ALTERNATIVE ACTIONS A:
1. Motion to elect 2025 officers: __________________ as President,
____________________ as Vice President, and _______________ as Treasurer.
2. Motion to table election of 2025 EDA Officers.
ALTERNATIVE ACTIONS B:
1. Motion to direct staff to prepare draft amendments to the EDA Enabling
Resolution or Bylaws as follows: (amendments to the Enabling Resolution require
a public hearing) as determined by the EDA.
2. Motion of other.
REFERENCE AND BACKGROUND:
The EDA is required to hold an Annual Meeting each year to elect officers, make appointments
as needed and consider Bylaw changes. The EDA’s enabling resolution and Bylaws are attached
for review. Staff would be happy to answer any questions or requested clarifications on the
organizational documents. It should be noted that some items may require consultation with
EDA legal counsel and further review and consideration at a future EDA meeting.
Offices which need to be filled for 2025 include the President, Vice President and Treasurer.
Staff can serve as the EDA Secretary for recording meeting minutes. It should be noted that City
Council EDA members may also serve as officers.
Also 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 for
consideration of the Annual Business Meeting.
II. Budget Impact: No expected budget impact from the Annual Business Meeting.
2 STAFF RECOMMENDATION:
Staff defer to the EDA for appointment of officers (Alternative Action A). As related to Alternative
Actions B1 and/or B2, currently, staff do not have any recommended amendments to the
Enabling Resolution or Bylaws, though staff will defer to the EDA regarding any concerns and/or
preferences in this realm. Again staff may be able to answer questions at the meeting or possibly
further consult with the EDA attorney to research and address any questions or suggested
changes. If the EDA does not feel that any changes are needed in the organizational documents,
then Alternative B2 would be appropriate with a direction of “no change to the organizational
documents”.
SUPPORTING DATA:
A. EDA Bylaws
B. EDA Enabling Resolution
C. EDA 2024 Year End Financial Reports
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 SCDPASSETSCash 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$
LIABILITIESAccounts 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
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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 SCDPRevenuesProperty 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
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EDA Agenda: 2/12/2025
4A. Consideration of Approving Payment of Bills
Prepared by:
Community & Economic Development
Administrative Assistant
Meeting Date:
2/12/2025
☐ Regular Agenda Item
☒ Consent Agenda Item
Reviewed by:
N/A
Approved by:
Economic Development Manager
REFERENCE AND BACKGROUND:
Accounts Payable summary statements listing bills submitted during the previous month are
included for review.
ALTERNATIVE ACTIONS:
1. Motion to approve payment of bills through January 2025.
2. Motion to approve payment of bills through January 2025 with changes as directed by
the EDA.
STAFF RECOMMENDATION:
Staff recommend approval of Alternative 1.
SUPPORTING DATA:
• Accounts Payable Summary Statements for January 2025.
User:
Printed:01/23/2025 - 1:40PM
julie.cheney@monticellomn.gov
Transactions by Account
Batch:00206.01.2025
Accounts Payable
Account Number Vendor AmountGL DateDescription Check No PO No
213-46301-421990 MAJIRS ADVERTISING & DESIGN INCNew Business Cards 0 65.7001/28/2025
65.70Vendor Subtotal:
213-46301-431993 WSB & ASSOCIATES INC 2024 Economic Development Services - Nov 2024 0 1,083.0012/31/2024
213-46301-431993 WSB & ASSOCIATES INC 2024 Economic Development Services - Dec 2024 0 1,083.0012/31/2024
213-46301-431993 WSB & ASSOCIATES INC 2024 Economic Development Services w/Adjustment - Oct 2024 0 30.0012/31/2024
2,196.00Vendor Subtotal:
213-46301-443300 INITIATIVE FOUNDATION 2025 Contribution 129591 2,390.0001/28/2025
2,390.00Vendor Subtotal:
213-46301-443300 WRIGHT COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP2025 Membership Dues 129615 4,009.0001/28/2025
4,009.00Vendor Subtotal:
Subtotal for Fund: 213 8,660.70
Report Total: 8,660.70
AP-Transactions by Account (01/23/2025 - 1:40 PM)Page 1
User:
Printed:01/23/2025 - 1:39PM
julie.cheney@monticellomn.gov
Transactions by Account
Batch:00202.01.2025
Accounts Payable
Account Number Vendor AmountGL DateDescription Check No PO No
213-46301-433100 US BANK CORPORATE PMT SYSTEMEDAM - 25 - Winter Conference Registration (JT) 0 395.0001/15/2025
395.00Vendor Subtotal:
213-46301-438200 CITY OF MONTICELLO 216 Pine St (EDA - old Finders Keepers consignmt by old DMV) 0 52.6112/31/2024
213-46301-438200 CITY OF MONTICELLO 130 Broadway E. (EDA strmwtr - formerly the Zoo) 7/3/2019 new fee 0 31.5012/31/2024
84.11Vendor Subtotal:
213-46301-443990 US BANK CORPORATE PMT SYSTEMEDAM - Holiday Party Registration (JT) 0 40.0012/31/2024
213-46301-443990 US BANK CORPORATE PMT SYSTEMDOMINOS - Food Special Mtg - EDA 0 57.9912/31/2024
97.99Vendor Subtotal:
Subtotal for Fund: 213 577.10
Report Total: 577.10
AP-Transactions by Account (01/23/2025 - 1:39 PM)Page 1
User:
Printed:02/03/2025 - 10:56AM
julie.cheney@monticellomn.gov
Transactions by Account
Batch:00207.01.2025
Accounts Payable
Account Number Vendor AmountGL DateDescription Check No PO No
213-46301-431991 DEMVI LLC Parking Lot Maintenance - Jan 2025 0 213.8601/31/2025
213.86Vendor Subtotal:
213-46301-438100 CENTERPOINT ENERGY 12045691-8 - 216 Pine St 0 263.4901/31/2025
263.49Vendor Subtotal:
213-46301-438100 XCEL ENERGY 101 E 3rd St (216 Pine St) - formerly Finders Keepers 0 44.6301/31/2025
44.63Vendor Subtotal:
Subtotal for Fund: 213 521.98
Report Total: 521.98
AP-Transactions by Account (02/03/2025 - 10:56 AM)Page 1
The preceding list of bills totaling $9,759.78 was approved for payment.
Date: 2/12/25 Approved by:__________________________________
Hali Sittig - Treasurer
MINUTES (DRAFT)
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, September 11, 2024 – 6:00 p.m.
Mississippi Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Treasurer
Hali Sittig Ollie Koropchak-White, Rick Barger, Councilmember
Tracy Hinz, Mayor Lloyd Hilgart
Staff Present: Angela Schumann, Jim Thares, Tyler Bevier
1. General Business
A. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order
at 6:00 p.m.
B. Roll Call 6:00 p.m.
Mr. Johnson called the roll.
2. Consideration of Additional Agenda Items
Jim Thares, Economic Development Manager, requested an item to be added; Missy
Meidinger, Executive Director, Wright County Economic Development Partnership
(WCEDP) to give an update.
Angela Schumann, Community Development Director, introduced Tyler Bevier,
Community and Economic Development Coordinator.
3. Consent Agenda
A. Consideration of Payment of Bills
B. Consideration of Approving Regular Meeting Minutes – June 12, 2024
C. Consideration of Approving Joint Workshop Meeting Minutes – June 12, 2024
D. Consideration of Approving Regular Meeting Minutes – June 26, 2024
E. Consideration of Funding for Manufacturers Appreciation Breakfast – October 11,
ECONOMIC DEVELOPMENT AUTHORITY CLOSED SPECIAL MEETING
Academy Room
6:30 p.m. Consideration of Negotiations of Properties
PID: 155-500-123300
PID: 155-274-001010, 155-274-002010, 155-274-002020, 155-274-002011,
155-274-002021, 155-194-000020, 155-274-000010
2024
OLLIE KOROPCHAK-WHITE MOVED TO APPROVE THE CONSENT AGENDA. HALI SITTIG
SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 7-0.
4. Regular Agenda
A. Consideration of Resolution No. 2024-17 approving amended GMEF Loan
Agreement with Rustech Brewing Company, LLC
Mr. Thares introduced this item as referring to the Rustic Brewing Company, LLC.
The EDA approved a GMFE loan to Rustic Brewing in 2017 which opened its doors in
Spring 2018.
Over the past 2 years Rustic Brewing has experienced challenges such as COVID, and
a serious power outage, causing loss of revenue and damage to equipment. After
evaluating Rustic’s business performance, they closed in May of 2024 and sold the
building to Hair Obsession, LLC in August 2024.
Mr. Thares said with the current language in the contract, an event of default occurs
at the time of relocating equipment from the business site. This has occurred.
Accordingly, Rustech Brewing Company, LLC is in default and this would be
addressed through the proposed loan amendment. Mr. Burt has stated several times
that he is hoping to reopen, leasing a space in the City of Monticello.
During the August 14, 2025 EDA Workshop, by consensus, the EDA agreed to amend
the loan agreement to allow the equipment to be relocated away from the 105 West
3rd Street and that a one-time lump sum payment of $5,000 toward the current loan
balance of $59,096.87 be included. Rustech agreed to this concept and payment by
September 30th. The brewery is current in its monthly payments. Under this
amendment, the monthly payment amount would remain the same at $428.31. A
balloon payment will be due in approximately 5 years.
Commissioner Rick Barger inquired if Rustic Brewing, LLC, has agreed to pay the legal
fees. Mr. Thares confirmed that they have.
Mr. Johnson pointed out that the new document does not list the new location of
the equipment, and it could pose a risk. Mr. Thares confirmed this.
Mayor Hilgart said that both parties are trusting in goodwill. Commissioner Jon
Morphew agreed and pointed out the borrower has also provided a personal
guarantee for the EDA loan. Commission Hali Sittig shared that they have honored
everything they have told the EDA.
Mr. Thares said this is a way to support a business in a difficult situation.
RICK BARGER MOVED TO ADOPT RESOLUTION 2024-17 APPROVING AN AMENDED
AND RESTATED GMEF LOAN AGREEMENT WITH RUSTECH BREWING COMPANY, LLC
WHICH WAS ORIGINALLY AUTHORIZED BY THE EDA ON JULY 12, 2017. HALI SITTIG
SECONDED THE MOTION. MOTION CARRIED, 5-0, JON MORPHEW AND TRACY HINZ
ABSTAINED.
B. ADDITIONAL ITEM - UPDATE OF THE WCEDP
Mr. Thares introduced Missy Meidinger, WCEDP Executive Director. Ms. Meidinger
provided an update of activities of the WCEDP and entertained questions from the
EDA.
C. Consideration of Accepting the 2024 Housing Workshop Summary as an
Addendum to the 2023 Housing Needs and Market Demand Report
Mr. Thares introduced the item. Staff are asking for the EDA to consider accepting
The 2024 Housing Summary as an Addendum to the 2023 Housing Needs and
Market Demand Report. The City Council, Planning Commission and the Economic
Development Authority met in June to discuss the 2023 Housing Needs and Market
Demand Report which was accepted by the EDA in October of 2023.
Mr. Thares shared he feels the report is meaningful and clear. It includes the findings
and takeaways from the Joint meeting in June and will be added to the existing
report. The last section lays out some policies which staff may recommend.
Ms. Schumann explained if the EDA approves this report, the next step is to go to
the City Council. Once it is approved Staff will begin the process of recommending
policies.
Mr. Morphew shared his perspective on Senior Housing. Encouraging Seniors to
leave their homes would give 1st time home buyer a better chance to purchase a
house. Ms. Schumann stated her points in the report which addresses this issue.
There will be funding available in the future to provide to affordable housing
projects.
HALI SITTIG MOVED TO ACCEPT THE 2024 HOUSING STUDY AS AN ADDEMDUM TO
THE 2023 HOUSING NEEDS AND DEMAND REPORT. MOTION SECONDED BY OLLIE
KOROPCHAK-WHITE. MONTION CARRIED UNANIMOUSLY, 7-0.
5. Other Business
A. Consideration of Economic Development Manager’s Report
Mr. Thares provided an overview of the agenda item.
No action was taken on the item.
6. Adjournment
TRACY HINZ MOVED TO ADJOURN, HALI SITTIG SECONDED MOTION. MOTION CARRIED
UNANIMOUSLY. MEETING ADJOURNED AT 6:37 P.M.
MINUTES (draft)
WORKSHOP - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, November 13, 2024 – 4:45 p.m.
Academy Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Treasurer Hali Sittig,
Ollie Koropchak-White, Rick Barger and Councilmembers Lloyd Hilgart and
Tracy Hinz
Commissioners Absent: Vice President Jon Morphew
Staff: Executive Director Jim Thares, Angela Schumann, Tyler Bevier
Guest: City Council Member Kip Christianson
1. Call to order: 4:45
2. Roll Call
3. TIF District and Housing Aid Discussion
Economic Development Manager Jim Thares gave an overview of the pooled Tax-
Increment Financing districts and shared updates on Housing Aid from the State of
Minnesota. As the EDA’s HRA duties, the EDA is required to determine how to spend
these monies. There is another deposit expected in December of 2024 and another
in 2025.
Mr. Thares shared a handout which lists the potential pooling available from various
TIF districts. Some pooled TIF may be available as the EDA continues with the
redevelopment processes in Block 34. Mr. Thares also noted those allocated funds
which are not available, and which can be used for the Block 52 Authority Grant.
Commissioner Barger asked if the City keeps the 10 percent administrative funds
money. Mr. Thares confirmed that is correct.
Mr. Johnson asked if the amounts that go to the City are reflected in the EDA
budget. Mr. Thares explained it is limited. Each district for that admin amount has its
own budget for these costs.
Mr. Barger asked if this amount goes into the general budget and is expensed out.
Mr. Thares said it stays in the TIF budget. When the TIF is decertified, the remaining
amount goes to the County.
Mr. Thares noted that the amount available for an Affordable Housing Project is
about $110,000. Mr. Barger asked if there is a risk of Pooled TIF being eliminated in
the future.
Mr. Thares shared in 2023 the State had extra revenue and decided to share that
revenue with cities specifically for housing. This program is called Direct Housing Aid.
Monticello’s share is $60,870. The first payment was made in 2023. Another of the
same amount will come in December of 2024, and half of that amount will follow in
2025.
Ms. Hinz asked if the State based the allocation on the population. Mr. Thares said
yes. Mayor Hilgart asked if it needs to be given away or if it can be used for non-
interest loans. Mr. Thares replied that it could be used that way.
4. Economic Development Assistance Services Consulting Contract
Jim Thares updated the EDA on Jim Gromberg resignation from WSB in late
September. He has started his own consulting firm. The EDA has a retainer with
WSB until the end of 2024. The fee is currently $1,083/month. Mr. Thares asked if
the EDA would like to issue an RFP in 2025 for evaluation of services scope.
Mr. Johnson noted that part of what the EDA has been enjoying with Mr. Gromberg
is his experience and network throughout the industry. Ms. Sittig questioned
whether the EDA is best served by open issuing an RFP or retaining Mr. Gromberg.
Mayor Hilgart said this service is not a necessity, however, it is an asset. He
suggested going through the first quarter of the year to put an RFP out.
Ms. Sittig asked Mr. Thares if the city has a good relationship with Mr. Gromberg
and did, he provide favorable service. Mr. Thares said Mr. Gromberg’s experience
brought a lot to the city, and he felt Mr. Gromberg provided a favorable service.
Mayor Hilgart feels the EDA should go to an RFP.
Ms. Hinz agreed and suggested the EDA reevaluate what its needs are for this type
of service, what are the tangibles which were provided to the EDA. Olive Koropchak-
White agreed. Mayor Hilgart also agreed.
Mr. Thares pointed out city staff has felt more comfortable talking to Mr. Gromberg
for guidance. He has experience with the Federal Government for programs such as
the energy tax program (PACE) as well as previous employment with MN-DEED and
as a banker for a Twin Cities bank. His assistance has been stellar in pursuing the
MN-DEED leads which are typically larger manufacturing firms.
Mr. Johnson asked the question if Mr. Thares was gone who would cover him,
suggesting it would be this service. He feels Mr. Thares is overstretched. Not having
this service would increase that workload.
Council Member Kip Christianson asked what the market rate is for that service. Mr.
Thares responded that the retainer is $1,083 and he felt the market rate is close to
this price.
The consensus is to let the WSB contract lapse at the end of 2025 and open an RFP
to provide this service in 2025 to review.
5. Adjournment
TRACY HINZ MOTIONED TO ADJOURN, SECONDED BY HALI SITTIG, CARRIED
UNAMIOUSLY AT 5:39 P.M.
MINUTES
REGULAR MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, November 13, 2024 – 6:00 p.m.
Monticello Community Center
Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, Ollie Koropchak-
White, Rick Barger, Tracy Hinz, Mayor Lloyd Hilgart
Commissioners Absent: Vice President Jon Morphew
Staff Present: Executive Director Jim Thares, Community Development Director
Angela Schumann, Community and Economic Development
Coordinator Tyler Bevier
1. General Business
A. Call to Order
President Steve Johnson called the regular meeting of the Monticello EDA to order
at 6:00 p.m.
B. Roll Call 6:00 p.m.
Mr. Johnson called the roll.
2. Consideration of Additional Agenda Items
A. Mr. Johnson indicated that the EDA should add an item at the beginning of the
regular agenda related to the Façade Improvement Forgivable Loan Proposal for
the Sleep Concepts Mattress Store located at 149 West Broadway.
3. Consent Agenda
A. Consideration of Payment of Bills
B. Consideration of Approving Special Meeting Minutes – October 23, 2024
C. Consideration of Approving Special Meeting Minutes – October 9, 2024
D. Consideration of Approving a Certificate of Completion for the Wiha Tools
Development Project; 77,000 Square foot building (TIF District 46)
RICK BARGER MOVED TO APPROVE THE CONSENT AGENDA. HALI SITTIG SECONDED
THE MOTION. MOTION CARRIED UNANIMOUSLY, 6-0.
4. Public Hearing
ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING
Academy Room
4:45 p.m. Review and Discussion of Pooled TIF Funds and Direct Housing Aid
5:30 p.m. Discussion regarding Economic Development Services Assistance
Consultant contract
A. Consideration of Resolution 2024-23 authorizing a $100,000 Façade Improvement
Forgivable Loan and Business Subsidy to Sleep Concepts Mattress Store – 149 West
Broadway (John Thorud)
Economic Development Director Jim Thares gave an overview. The Public Hearing is
connected to a Façade Improvement Loan consideration for John Thorud, owner of
149 West Broadway, in the amount of $100,000. The quote for façade
improvements is $105,063.35. The specific materials are also included for approval
by the EDA. The property owner is required to contribute a minimum of 5% which is
$5,063.35. This is the final property on Broadway stretch of Block 52 that would
have façade improvements. Currently $137,490.07 available in the Façade Loan sub-
fund. It should be noted that City staff had tried to reach out to Mr. Thorud
numerous times in the past three months with minimal success.
Mayor Hilgart pointed out that the façade improvement project on the East Wall has
been completed. Commissioners agreed that it looks good.
Ms. Sittig asked if Mr. Thorud has filled out all the paperwork and has not
responded. Mr. Thares said he has not signed the application and initial the new
rendering.
Mayor Hilgart pointed out the EDA can find another project to use the $100,000.
Commissioner Barger stated that he assumes this proposal was prepared by Block 52
property owners who are trying to get some of their money back. He does not
believe the cost to make this improvement would be this amount. Mr. Thares
confirmed Block 52 did the quote.
Mr. Barger asked how the wall looks and It was the consensus is it looks good. He
asked if this would complete the look the EDA is striving to complete. Ms. Sittig said
she feels the façade could use improvement and would finish off.
Ms. Hinz pointed out she is disappointed that a business downtown is showing
minimal effort to work with the city to complete this goal and puts the EDA in a
precarious position to complete the appearance of Downtown. She does not support
giving Mr. Thorud the grant and leaving it off agendas until Mr. Thorud approaches
the city.
Mr. Johnson feels staff should not put in additional time and wait for Mr. Thorud to
approach the city. He pointed out that $100,000 is almost the value of the building.
The consensus is to direct staff not to move forward. Ms. Sittig thanked Mr. Thares
and Mr. Bevier for their efforts. Ms. Hinz asked if there could be any repercussions
to not move forward. Ms. Sittig suggested it be tabled. Ms. Hinz agreed. After
additional questions were asked. Mr. Thares pointed out that Mr. Thorud does not
appear to be anxious about making improvements.
TRACEY HINZ MOTIONED TO DENY APPROVAL OF THE FAÇADE IMPROVEMENT LOAN
FOR 149 W. BROADWAY. MOTION SECONDED BY RCIK BARGER.
The consensus from the EDA members was that when or if Mr. Thorud applies it is
on him to do the initial work and city staff.
President Johnson stayed the motion and asked opened the Public Hearing.
President Johnson closed the Public Hearing.
President Johnson called to vote.
MONTION CARRIED UNANIMOUSLY, 6-0.
5. Regular Agenda
A. Consideration of Resolution 2024-24 authorizing an Amendment of the Block 52
Purchase and Development Contract with Block 52 Holdings, LLC, Buchholz
Exchange, LLC and Norgren Exchange, LLC
Economic Development Director Jim Thares gave an overview asking the EDA to
consider the First Amendment to the Purchase and TIF Development Contract with
Block 52 Holdings, LLC, Buchholz Exchange, LLC and Norgren Exchange, LLC
increasing the Authority Grant by $50,000 to a total of $417,400.
Because the developer did not provide the requested cost information, staff
requested the EDA to table this item from the October 9, 2024 to the October 23,
2024 and then tabled to November 13, meeting, so the Block 52 Holdings group
could submit additional information related to costs of the public improvements.
At the time of the approval the Block 52 property owners were struggling with the
cost. Mr. Thares pointed out this also included utility improvements.
Instead of using façade funding to finish the East wall, the EDA attorney suggested
use the Authority Grant of the amount of $250,000.
Mr. Johnson asked for clarification that the East wall of 149 West Broadway sits on
Buchholtz property. Mr. Thares confirmed it is on Block 52 property.
Mr. Johnson mentioned the power pole has been removed. Mr. Thares stated that
funding came from another source and the development is nearly completed. The
final CO has not been issued. The city is holding a check for $290,000 Authority
Grnat until the project is complete.
Ms. Sittig questioned the amount they are requesting, why is it significantly more
that estimated; have there been change orders the city has privy to. Mr. Thares said
the East wall was not included in the original plan. Block 52 saw the need for it to be
done and completed it in good faith.
Mr. Johnson feels it is time to wrap up the project. Ms. Sittig did not agree the EDA
should be adding funding.
Mr. Barger asked if they would consider adding funding to the Authority Grant to
complete those items listed in the staff report. He asked for clarification of the
amount spent and requested. Mr. Thares said the original quote was $420,000 and
they spent $1,100,040.
LLOYD HILGART MOTIONED TO ADOPT RESOLUTION 2024-19 APPROVING A FIRST
AMENDMENT TO THE PURCHASE AND TIF DEVELOPMENT CONTRACT WITH BLOCK
52 HOLDINGS, LLC, BUCHHOLZ EXCHANGE, LLC AND NORGREN EXCHANGE, LLC
INCREASING THE AUTHORITY GRANT BY $50,000 TO A TOTAL OF $417,400, TRACY
HINZ SECONDED THE MOTION.
Mr. Barger noted this is in good faith and it made a huge improvement in
Downtown. He would have liked to see more details of why the cost increased so
much. Mr. Johnson noted that they provided a summary.
President Johnson called for the vote.
MOTION CARRIED, 5-1. COMMISSIONER SITTIG VOTED AGAINST.
Other Business
A. Consideration of Economic Development Manager’s Report
Mr. Thares provided an overview of the agenda item to the EDA and the public.
Adjournment
TRACY HINZ MOVED TO ADJOURN. HALI SITTIG SECONDED THE MOTION. MOTION
CARRIED UNANIMOUSLY, 6-0. MEETING ADJOURNED AT 7:29 P.M.
Recorder: Vicki Leerhoff ___
Approved: February 12, 2025
Attest: _____________________________________________
James Thares, Economic Development Manager
EDA Agenda: 02/12/2025
4E. Consideration Adopting Resolution No. 2025-01 Authorizing an Interfund Loan for
advance of certain costs in the amount of $180,000 in connection with a Tax
Increment Financing District
Prepared by:
Economic Development Manager
Meeting Date:
02/12/2025
☐ Regular Agenda Item
☒ Consent Agenda Item
Reviewed by:
Community & Economic Development
Coordinator
Approved by:
Community Development Director
ACTION REQUESTED
Motion to adopt Resolution 2025-01 approving an Interfund Loan for advance of certain costs
in the amount of $180,000 related to TIF qualification studies, TIF Financial Modeling and Plan
Preparation, environmental investigations, and potential contamination mitigation activities in
Block 34 in connection with a future Tax Increment Financing District.
REFERENCE AND BACKGROUND
The EDA is asked to consider adopting Resolution 2025-01 approving an Interfund loan related
to the completion of TIF qualification inspections, TIF Financial Modeling and analysis,
environmental investigations, and potential contamination mitigation activities in Block 34 in
connection with a future Tax Increment Financing District. By adopting the Interfund loan
resolution, the EDA’s immediate costs incurred related to the noted activities and other similar
expenses in Block 34 are considered a “loan or funding advance”. The Interfund loan
designation allows these costs to be reimbursed through tax increments generated by new
development in a future Tax Increment Financing (TIF) District established in Block 34 which
would be used to support redevelopment efforts. The total amount of the proposed interfund
loan as noted in the Resolution is $180,000. This amount will cover the expected TIF
qualification study, the Northland Securities TIF Modeling and analysis and the proposed
environmental investigation (Phase II ESA; Item 6B.) and any potential contamination mitigation
activities. If the Interfund loan resolution is not authorized at this time, the EDA may jeopardize
its ability to be reimbursed for these and other similar EDA authorized expenses from the
future tax increments.
I. Budget Impact: The immediate cost attributed to the EDA connected to the proposed
Interfund loan resolution is estimated to be about $375 +/. This cost is related to EDA
attorney services to draft the resolution. Long-term, the budget impact may be positive
by equating the estimated costs of $180,000 for the identified activities as a future Block
EDA Agenda: 02/12/2025
34 redevelopment TIF District expenditure rather than an EDA general fund cost item as
the EDA progresses forward in consideration of redevelopment efforts in Block 34.
II. Staff Workload Impact: City staff workload related to the Interfund loan resolution is
modest. Staff involved in the Interfund loan discussions include the City Administrator,
Finance Director, Community Development Director, and Economic Development
Manager. Consultants involved include Northland Securities staff and the EDA attorney.
III. Comprehensive Plan Impact: N/A
STAFF RECOMMENDATION
City staff recommend approval of Interfund Loan Resolution 2025-01. By approving the
Interfund loan resolution, the EDA preserves the potential to have its General Fund be
reimbursed for Block 34 preliminary development expenses including, but not limited to, TIF
qualification studies, TIF Financial Modeling and Analysis, environmental investigations and/or
mitigation activities, using future tax increment collections from a new TIF District.
SUPPORTING DATA
• EDA Resolution 2025-01
4929-4663-2727.1
CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2025 - 01 AUTHORIZING INTERNAL LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT WHEREAS, the City of Monticello, Minnesota (the “City”) and the City of Monticello Economic Development Authority (the “Authority”) are considering establishing a tax increment financing district for Block 34 in the City (the “TIF District”), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and
WHEREAS, the City and the Authority may incur certain costs related to the TIF District which costs may be financed on a temporary basis from available City or Authority funds; and
WHEREAS, pursuant to Section 469.178, subdivision 7 of the TIF Act, the City and the Authority are authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the
TIF Act; and WHEREAS, the City and the Authority have determined to pay for certain costs of the proposed TIF District including environmental studies and potential environmental mitigation activities and site clean-up costs which costs may be financed on a temporary basis from the Authority’s General Fund, or any other City or Authority funds available for such purposes (the “Cost Advances”); and WHEREAS, the Authority hereby designates the Cost Advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the City of Monticello
Economic Development Authority as follows: 1. The Authority and the City will reimburse themselves for the Costs Advances including without limitation TIF Qualification Studies, TIF Financial Modeling and Analysis, environmental studies and potential environmental mitigation activities and site clean-up costs all in an aggregate amount not to exceed the greater of $180,000 or the adopted and, if applicable, Tax Increment Financing Plan budget for
the TIF District (the “Interfund Loan”) together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 and Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 8.0% and will not fluctuate. 2. Principal and interest (“Payments”) on the Interfund Loan shall be paid semiannually on each February 1 and August 1 (each a “Payment Date”), commencing on the first Payment Date on which the City or the Authority has received Available Tax Increment (defined below), or on any other dates
determined by the City Finance Director, through the date of last receipt of tax increment from the TIF District (the “Maturity Date”).
2
4929-4663-2727.1
3. Payments on the Interfund Loan will be made solely from the tax increment from the TIF District received by the Authority or the City from Wright County in the 6-month period before any
Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledged to the payment of any obligation (the “Available Tax Increment”). Payments shall be applied first to accrued interest, and then to unpaid principal, unless otherwise specified by the City Finance Director. Interest accruing from the Loan Date will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the City Finance Director. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part with available tax increment and are on a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment. 4. The principal sum and all accrued interest payable under this resolution is pre-payable in whole or in part at any time by the Authority without premium or penalty.
5. This resolution is evidence of an internal borrowing by the Authority or the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City. Neither the State of
Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. Neither the Authority nor the City shall have any obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination or expiration of the TIF District. 6. The Authority or the City, as applicable, may at any time decide to forgive the outstanding principal amount and accrued interest on the Interfund Loan, in whole or in part, on any date from time to time, to the extent permissible under law.
7. The Authority may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act.
Adopted by the Board of Commissioners of the City of Monticello Economic Development Authority this 12th day of February, 2025. President ATTEST: Executive Director
EDA: 02/12/2025
1
4F. Consideration of approving a Contract with Northland Securities, Inc. (NSI) in the
amount of $17,640 for Financial Planning Services related to establishing a
Redevelopment Tax Increment Financing (TIF) District
Prepared by:
Economic Development Manager
Meeting Date:
2/12/25
☐ Regular Agenda Item
☒ Consent Agenda Item
Reviewed by:
Community Development Director,
Community Economic Development
Coordinator, Finance Director
Approved by:
City Administrator
ACTION REQUESTED:
Motion to approve NSI Financial Planning Agreement for services related to creation of a
Redevelopment TIF District in connection with potential redevelopment of Block 34.
Motion of other as determined by the EDA.
REFERENCE AND BACKGROUND:
The EDA is asked to consider approving a specific project-based Contract with Northland
Securities, Inc. (NSI) related to anticipated creation of a Redevelopment Tax Increment
Financing (TIF) District in support of Block 34 redevelopment along Broadway and Pine Street
(MNTH #25). Staff requested the proposed contract with NSI to allow work tasks to begin
related to financial planning and analysis services as well as guidance in the required steps in
establishing a new Redevelopment TIF District in connection with the concept Block 34
redevelopment proposal submitted by Kraus-Anderson Development. The attached proposal
outlines specific services related to development parcel valuation data, review of the proposed
financing structure, the project pro forma and preparation of the critical “but for” findings. It
also covers formatting and distribution of various notices, planning documents, completion of a
TIF Plan and attendance at key meetings. It does not include legal documents such as
resolutions and development agreements.
Ultimately, if a new Redevelopment TIF District is not approved by the City Council and the EDA,
NSI will only bill for actual work performed based on an hourly rate of $315. NSI will also
coordinate with the EDA’s legal counsel as required for the project.
I. Budget Impact: The funds to pay for the proposed NSI contract will initially come from
the expected $15,000 TIF application fee from K-A Development submittal. Additional
costs beyond the initial TIF fee will be invoiced to the developer as per NSI service
invoices. At a future date staff believe these project specific costs could possibly be
EDA: 02/12/2025
2
included in subsidy request deposits. Fees incurred for legal documents, contracts,
resolutions, etc. related to establishing the TIF District are not included in the NSI
services contract. Those costs will be split out and will also be invoiced to the
developer. The NSI contract falls in the professional services category, so competitive
quotes are not required for this consideration.
II. Staff Impact: TIF Districts are complicated tax-based financial assistance tools used to
support new economic development proposals. There are several legal and critical
financial review steps that are required in establishing a new TIF District. Under the
proposed contract, NSI will analyze property value and financing data and prepare a TIF
Plan specifically tailored to the proposal and the development site. They will also prepare
the essential “but-for” findings. In-house staff will support and collaborate with NSI by
providing application submittal materials and guidance related to EDA discussions
regarding potential TIF assistance for Block 34.
III. Comprehensive Plan Impact: Entering into the NSI TIF Services contract is critical to
completing the essential work components involved in establishing a Redevelopment
TIF District in Block 34. Redevelopment of Block 34 is identified as a goal within the
2017 Downtown Small Area Plan, an appendix of the Monticello 2040 Vision + Plan,
which envisions various efforts and catalyst projects to create a vibrant Downtown.
STAFF RECOMMENDATION:
Staff recommend the EDA authorize the proposed NSI Professional Services contract. The NSI
Financial Planning Services Agreement is essential to ensure the EDA stays within the bounds of
all required steps and notices when creating a new TIF District. TIF districts have impacts across
several taxing jurisdictions (city, school district and county). Therefore, it is important that staff
have the support of consultants such as NSI to perform specialized TIF Plan analytical work and
preparation of specific documents that are required in creating a new TIF District. NSI has
completed similar types of work for the EDA over the past several years as it has established
new TIF Districts and staff has full confidence in NSI’s ability to accomplish the proposed TIF
work related to Block 34 redevelopment efforts.
SUPPORTING DATA:
a. NSI Financial Planning Services Agreement – Redevelopment TIF District
Agreement (Redevelopment TIF District) Page 1
FINANCIAL PLANNING AGREEMENT
BY AND BETWEEN
THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
AND
NORTHLAND SECURITIES, INC.
TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 1-47 (BLOCK 34)
This Agreement made and entered into by and between the City of Monticello Economic
Development Authority, Minnesota (hereinafter the "EDA") and Northland Securities, Inc., of
Minneapolis, Minnesota (hereinafter "NSI").
WITNESSETH
WHEREAS, the EDA desires to use the services of NSI for financial planning assistance related
the establishment of Tax Increment Financing (Redevelopment) District No. 1-47 (the “TIF
District”) to provide financial assistance for the construction of private buildings, including a
potential commercial-retail and housing project (the “Project”).
WHEREAS, the Project is intended solely for financial planning and NSI is not providing advice
on the timing, terms, structure or similar matters related to a specific bond issue.
WHEREAS, NSI desires to furnish services to the EDA as hereinafter described.
NOW, THEREFORE, it is agreed by and between the parties as follows:
SERVICES TO BE PROVIDED BY NSI
The scope of work will undertake the process and financial planning to establish the TIF District.
Legal services to review the plan for the establishment of the TIF District (the “TIF Plan”),
resolutions, and agreements are not provided by NSI and are not subject to this agreement. Any
inspection services that may be needed to determine if the property where the Project will be
located meets the definition of “Substandard Building” as defined by Minnesota Statutes, Section
469.174, subdivision 10, are not provided by NSI and are not subject to this agreement.
NSI will provide the following services:
1. Attend planning meetings for the Project at the request of the staff to the EDA.
2. Set and distribute calendar of meetings and key dates for establishment of the TIF District.
3. Collect data for the TIF District and the Project, including:
a. Parcel identification numbers for all parcels within the Development District and the TIF
District.
b. Estimated market value and tax capacity value for all parcels within the TIF District.
c. Current property tax rates for all jurisdictions.
d. Map showing location of the Project and parcel boundaries.
Agreement (Redevelopment TIF District) Page 2
4. Evaluate and advise the EDA on the type of tax increment financing district and provide
guidance on statutory findings.
5. Collect data about the Project, including:
a. Type, size, value, and timing of proposed development.
b. Activities and estimated costs of the Project to be paid from tax increments from the TIF
District.
6. Review basis for findings for establishing TIF District, including:
a. Statutory criteria for establishment of the TIF District.
b. Developer justification (“but for”) for the use of tax increment.
7. Review and analyze Developer construction pro forma and operating pro forma for the
Project.
8. Prepare memorandum for the EDA presenting the findings and terms for financial assistance
to the developer of the Project.
9. Obtain any additional data not collected in item #1, including confirmation of any building
permits issued for parcels in the TIF District over the past 18 months.
10. Prepare notice of hearing and comply with statutory requirements for mailing and
publication.
11. Assist the EDA’s attorney with drafting of the development agreement for the Project.
12. Prepare planning documents including modification of the Development Program for the
Development District and Tax Increment Financing Plan for the TIF District.
13. Distribute draft planning documents with letter of explanation and other supporting
information to the County and School District.
14. Assist with preparation of resolutions authorizing the TIF District and approving the TIF
Plan.
15. Prepare and distribute resolution for planning commission findings, if necessary (scope does
not include NSI attendance at planning commission meeting).
16. Prepare and distribute packet for public hearing including the TIF Plan and approving
resolution.
17. Attend and facilitate the EDA meeting to consider approval of the TIF District and agreement
for the Project.
18. Attend and facilitate the public hearing and City Council meeting to consider approval of the
TIF District.
19. Prepare TIF transcript (electronic document).
20. Submit request for certification of the TIF District to the County Auditor.
Agreement (Redevelopment TIF District) Page 3
21. File documents for the TIF District with the Office of the State Auditor and the Minnesota
Department of Revenue.
COMPENSATION
NSI will bill the City monthly for actual services performed and reimbursable expenses. NSI will
be at an hourly billing rate of $315 per hour. NSI will bill monthly for actual services performed
and reimbursable expenses, including printing, mileage, and any other expenses incurred by NSI
directly related to the Project.
The City may at its discretion authorize NSI to undertake additional tasks for the Project beyond
the tasks listed above. NSI will bill any additional planning services monthly at a rate of $315 per
hour.
Invoices will detail the work performed, requested compensation for the period.
ASSIGNED NSI EMPLOYEE
The NSI employee responsible for providing services pursuant to this agreement and for the
services performed is Tammy Omdal, Managing Director.
SUCCESSORS OR ASSIGNS
The terms and provisions of this Agreement are binding upon and inure to the benefit of the EDA
and NSI and their successors or assigns.
DISCLAIMER
In performing service under this agreement, NSI is relying on the accuracy of information
provided by the developer for the Project and by the EDA, and the services provided by NSI are
based on current laws of the State of Minnesota. The parties agree that the Minnesota property
tax system and other State of Minnesota laws may change and may affect the accuracy and
validity of services provided by NSI. NSI will perform its work using the best available
information. The EDA recognizes and accepts that future property values, tax levies and tax rates
may vary from the assumptions used by NSI and such changes may affect the work product
produced and provided by NSI.
TERM OF THIS AGREEMENT
This Agreement may be terminated by thirty (30) days written notice by either the EDA or NSI.
In the event of early termination by the EDA, NSI shall provide the EDA with an itemized hourly
statement of services already provided. All billable hours by NSI shall be billed at the stated
hourly rates should early termination occur.
Agreement (Redevelopment TIF District) Page 4
Dated this ___ day of _______________, 2025.
Northland Securities, Inc.
By: ______________________________
Tammy Omdal
Managing Director
City of Monticello Economic Development
Authority
By: _____________________________
_____________________________
Title
EDA: 02/12/2025
1
4G. Consideration of approving a Contract with Northland Securities, Inc. (NSI) in the
amount of $14,175 for Financial Planning Services related to establishing an Economic
Development Tax Increment Financing (TIF) District in Support of Karlsburger Foods
Expansion proposal
Prepared by:
Economic Development Manager
Meeting Date:
2/12/25
☐ Regular Agenda Item
☒ Consent Agenda Item
Reviewed by:
Community Development Director,
Community Economic Development
Coordinator, Finance Director
Approved by:
City Administrator
ACTION REQUESTED:
Motion to approve NSI Financial Planning Agreement for services related to creation of an
Economic Development TIF District in connection with potential redevelopment of Block 34.
Motion of other as determined by the EDA.
REFERENCE AND BACKGROUND:
The EDA is asked to consider approving a specific project-based Contract with Northland
Securities, Inc. (NSI) related to potential creation of an Economic Development Tax Increment
Financing (TIF) District in support of the Karlsburger Foods facility located at 3236 Chelsea
Road. Staff requested the proposed contract with NSI to allow work tasks to begin related to
financial planning and analysis services as well as guidance in the required steps in establishing
a new Economic Development TIF District in connection with the recent concept expansion
proposal submitted by Karlsburger Foods. The attached proposal outlines specific services
related to development parcel valuation data, review of the proposed financing structure, the
project pro forma and preparation of the critical “but for” findings. It also covers formatting
and distribution of various notices, planning documents, completion of a TIF Plan and
attendance at key meetings. It does not include legal documents such as resolutions and
development agreements.
Ultimately, if a new Economic Development TIF District is not approved by the City Council and
the EDA, NSI will only bill for actual work performed based on an hourly rate of $315. NSI will
also coordinate with the EDA legal counsel as required for the project.
I. Budget Impact: The funds to pay for the proposed NSI contract will come from the
expected $15,000 TIF application fee from Karlsburger Foods submittal. Additional
costs beyond the initial TIF fee will be invoiced to the developer as per NSI service
EDA: 02/12/2025
2
invoices. Fees incurred for legal documents, contracts, resolutions, etc. related to
establishing the TIF District are not included in the NSI services contract. Those costs
will be split out and will also be invoiced to the developer. The NSI contract falls in the
professional services category, so competitive quotes are not required for this
consideration.
II. Staff Impact: TIF Districts are complicated tax-based financial assistance tools used to
support new economic development proposals. There are several legal and critical
financial review steps that are required in establishing a new TIF District. Under the
proposed contract, NSI will analyze property value and financing data and prepare a TIF
Plan specifically tailored to the proposal and the development site. They will also prepare
the essential “but-for” findings. In-house staff will support and collaborate with NSI by
providing application submittal materials and guidance related to EDA discussions
regarding potential TIF assistance for the Karlsburger Foods expansion proposal.
III. Comprehensive Plan Impact: Entering into the NSI TIF Services contract is critical to
completing the essential work components involved in establishing an Economic
Development TIF District. The Monticello 2040 Vision + Plan identifies a City and EDA
goal of attracting or retaining businesses to create a vibrant and dynamic economy and
expand the local tax base and create new jobs. The Plan further encourages the use of
various economic development tools to accomplish these objectives. The potential use
of an Economic Development TIF District to support the concept Karlsburger Foods
expansion proposal is in full alignment with those goals.
STAFF RECOMMENDATION:
Staff recommend the EDA authorize the proposed NSI Professional Services contract. The NSI
Financial Planning Services Agreement is essential to ensure the EDA stays within the bounds of
all required steps and notices when creating a new TIF District. TIF districts have impacts across
several taxing jurisdictions (city, school district and county). Therefore, it is important that staff
have the support of consultants such as NSI to perform specialized TIF Plan analytical work and
preparation of specific documents that are required in creating a new TIF District. NSI has
completed similar types of work for the EDA over the past several years as it has established
new TIF Districts and staff has full confidence in NSI’s ability to accomplish the proposed TIF
work related to the potential Karlsburger Foods expansion project.
SUPPORTING DATA:
a. NSI Financial Planning Services Agreement – Economic Development TIF District
Agreement (Economic Development TIF) Page 1
FINANCIAL PLANNING AGREEMENT
BY AND BETWEEN
THE CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
AND
NORTHLAND SECURITIES, INC.
TAX INCREMENT FINANCING (ECONOMIC DEVELOMENT) DISTRICT NO. 1-48
This Agreement made and entered into by and between the City of Monticello Economic
Development Authority, Minnesota (hereinafter the "EDA") and Northland Securities, Inc., of
Minneapolis, Minnesota (hereinafter "NSI").
WITNESSETH
WHEREAS, the EDA desires to use the services of NSI for financial planning assistance related
to the proposed establishment of a Tax Increment Financing (Economic Development) District
No. 1-48 (the “TIF District”) to provide financial assistance to a private company for the construction
of a building expansion (the “Project”).
WHEREAS, the Project is intended solely for financial planning and NSI is not providing advice
on the timing, terms, structure or similar matters related to a specific bond issue.
WHEREAS, NSI desires to furnish services to the EDA as hereinafter described.
NOW, THEREFORE, it is agreed by and between the parties as follows:
SERVICES TO BE PROVIDED BY NSI
The scope of work will undertake the process and financial planning to establish the TIF District.
Legal services to draft or review the plan for the establishment of the TIF District (the “TIF Plan”),
resolutions, and agreements are not provided by NSI and are not subject to this agreement.
NSI will provide the following services: 1. Collect data for the TIF District and the Project, including: a. Parcel identification numbers for all parcels within the Development District and the TIF
District. b. Estimated market value and tax capacity value for all parcels within the TIF District. c. Current property tax rates for all jurisdictions. d. Map showing project location and parcel boundaries. 2. Evaluate and advise the EDA on the type of tax increment financing district and provide
guidance on statutory findings. 3. Collect data about the Project, including: a. Type, size, value, and timing of proposed development. b. Activities and estimated costs (project budget) to be paid by the TIF District.
Agreement (Economic Development TIF) Page 2
4. Review basis for findings for establishing TIF District, including: a. Statutory criteria for proposed district. b. Developer justification (“but for”) for the use of tax increment. c. Review and analyze Developer construction pro forma and operating pro forma for the
Project. d. Prepare memorandum for the EDA presenting the findings. 5. Review and analyze developer financial information, including project pro forma, and other
relevant information provided by the developer. 6. Prepare memorandum for the EDA with the results of the evaluation of the information
provided by the developer and the need for financial assistance as requested by the
developer. 7. Determine basic understanding of key criteria for the process including: a. Boundaries of Development District and the TIF District. b. Specific development objectives to address in the planning documents beyond the
Project, including decertification of an existing tax increment financing district. 8. Obtain any additional data not collected in item #1, including: a. Building permits issued for parcels in the TIF District over the past 18 months. b. Current comprehensive plan. 9. Set and distribute calendar of meetings and key dates. 10. Assist with preparation of notice of hearing and comply with statutory requirements for
mailing and publication. 11. Assist the EDA’s attorney with drafting of the development agreement for the Project. 12. Prepare planning documents including modification of the Redevelopment Project, if
necessary, and Tax Increment Financing Plan for the TIF District. 13. Distribute draft planning documents with letter of explanation and other supporting
information to the county and the school district. 14. Assist with preparation of resolutions authorizing the TIF District and approving the TIF
Plan. 15. Prepare and distribute resolution for planning commission findings, if necessary (scope
does not include NSI attendance at planning commission meeting). 16. Prepare and distribute packet for public hearing including the TIF Plan and approving
resolution and interfund loan resolutions (if loan is proposed). 17. Attend and facilitate the EDA meeting to consider approval of the TIF District and
agreement for the Project. 18. Assist City staff in preparing presentation for the public hearing and City Council meeting
Agreement (Economic Development TIF) Page 3
to consider approval of the TIF District. 19. Prepare electronic transcript of documents for the establishment of the TIF District. 20. Submit request to the county for certification of the TIF District. 21. File district with the Office of the State Auditor and the State of Minnesota.
COMPENSATION
NSI will bill the City monthly for actual services performed and reimbursable expenses. NSI will
be at an hourly billing rate of $315 per hour. NSI will bill monthly for actual services performed
and reimbursable expenses, including printing, mileage, and any other expenses incurred by NSI
directly related to the Project.
The City may at its discretion authorize NSI to undertake additional tasks for the Project beyond
the tasks listed above. NSI will bill any additional planning services monthly at a rate of $315 per
hour. Invoices will detail the work performed, requested compensation for the period.
ASSIGNED NSI EMPLOYEE
The NSI employee responsible for providing services pursuant to this agreement and for the
services performed is Tammy Omdal, Managing Director.
SUCCESSORS OR ASSIGNS
The terms and provisions of this Agreement are binding upon and inure to the benefit of the EDA
and NSI and their successors or assigns.
DISCLAIMER
In performing service under this agreement, NSI is relying on the accuracy of information
provided by the developer for the Project and by the EDA, and the services provided by NSI are
based on current laws of the State of Minnesota. The parties agree that the Minnesota property
tax system and other State of Minnesota laws may change and may affect the accuracy and
validity of services provided by NSI. NSI will perform its work using the best available
information. The EDA recognizes and accepts that future property values, tax levies and tax rates
may vary from the assumptions used by NSI and such changes may affect the work product
produced and provided by NSI.
TERM OF THIS AGREEMENT
This Agreement may be terminated by thirty (30) days written notice by either the EDA or NSI.
In the event of early termination by the EDA, NSI shall provide the EDA with an itemized hourly
statement of services already provided. All billable hours by NSI shall be billed at the stated
hourly rates should early termination occur.
Agreement (Economic Development TIF) Page 4
Dated this ___ day of _______________, 2025.
Northland Securities, Inc.
By: ______________________________
Tammy Omdal
Managing Director
City of Monticello Economic Development
Authority
By: _____________________________
________________________________
Title
EDA Agenda: 2/12/25
6A. Consideration of Authorizing a Professional Services Contract with WSB & Associates
to complete a Phase II ESA (Environmental Site Assessment) in the amount of $18,200
for 216 Pine Street and on adjacent City owned parcel PID # 155010034020.
Prepared by:
Economic Development Manager
Meeting Date:
2/12/25
☒ Regular Agenda Item
☐ Consent Agenda Item
Reviewed by:
Community Development Director,
Community Economic Development
Coordinator
Approved by:
City Administrator
ACTION REQUESTED
Motion to authorize a professional services contract with WSB & Associates for completion of a
Phase II ESA (Environmental Site Assessment) in the amount of $18,200 for 216 Pine Street and
on adjacent City owned parcel (PID # 155010034020).
Motion of other.
REFERENCE AND BACKGROUND
The EDA is asked to consider entering into a professional services contract with WSB &
Associates for a Phase II Environmental Site Assessment (ESA) at 216 Pine Street in Block 34 as
well as on an adjacent City owned parcel. The EDA previously authorized WSB & Associates to
complete a Phase I ESA for 216 Pine Street in early 2024, after the EDA purchase of the former
Finders Keepers property. The Phase I report indicated a need to further investigate an
identified REC (Recognized Environmental Condition) on the northern edge of the parcel due to
a gas station previously being located north of the site at the corner of Pine Street and
Broadway East. Staff believe it is prudent to expand the area of the Phase II study to include
the City owned parcel located to the east of 216 Pine Street.
As a reminder the EDA acquired 216 Pine Street in late October 2023 for the purpose of
assembling land for potential redevelopment activities in Block 34. In order to proceed with
the next redevelopment planning steps in Block 34, a Phase II ESA is required for this particular
site/area to understand if contamination is present, and if so, to what extent and what
mitigation or removal processes will be required, if any.
A Phase II ESA involves drilling, boring, and probing activities, and specifically for this site, to a
depth of 16 feet. Soil and groundwater samples will be collected from each boring. A site map
is included in the proposal showing six bore locations, three on the EDA property and three on
the City owned site. These boring and sample collection activities will be completed in one day.
EDA Agenda: 2/12/25
A final Phase II report will be delivered to the EDA approximately five weeks from completion of
the site investigation activities. It will summarize completed activities and provide information
about the investigation findings as well as outline contamination mitigation recommendations
as appropriate.
The WSB & Associates Phase II ESA proposal for this area of Block 34 is attached to this report
as exhibit A. It should be noted that WSB is the City’s designated Environmental Studies-
Review consultant.
I. Budget Impact: The budget impact related to the proposed Phase II ESA is $18,200. The
adopted 2025 EDA General Fund budget contains a line item related to redevelopment
activities. This line is sufficient to cover the cost for completion of the Phase II study.
II. Staff Workload Impact: The Community Development Director and Economic Development
Manager have committed time to completing tasks related to the proposed environmental
studies. Those tasks include discussions with the consultant regarding the desired scope of
work tasks and the optimal timeline of completion. 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: Completing the Phase II ESA is a required next step as follow
up to the ESA Phase I findings identifying a REC in the northern half of the EDA owned and
City owned parcel in Block 34. Completing the Phase II ESA will guide the next steps to the
Block 34 redevelopment efforts. Redevelopment of Block 34 is identified as a goal within
the 2017 Downtown Small Area Plan, an appendix of the Monticello 2040 Vision + Plan,
which envision various efforts to create a vibrant Downtown.
STAFF RECOMMENDATION
Staff recommend the EDA authorize entering into a professional service contract with WSB &
Associates for completion of a Phase II ESA for 216 Pine Street and the adjacent City owned
parcel. The Phase II ESA will provide information about potential site contaminants and the
need for mitigation as appropriate. Ultimately, this information will guide the redevelopment
next steps and timeline related to these efforts. Staff are confident in WSB & Associates’ ability
to complete the proposed scope of work and provide the final report in a timely manner.
SUPPORTING DATA
A. WSB & Associates Scope of Work Proposal – Phase II ESA
B. Aerial Photo
C. Wright County Beacon Property Report
70
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January 14, 2025
Jim Thares
City of Monticello – Economic Development Manager
505 Walnut Street
Monticello, MN 55362
RE: Scope of Work and Cost – Phase II Environmental Site Assessment
Block 34 Redevelopment
216 Pine Street and Wright County Parcel 155010034020
Monticello, MN 55362
Dear Mr. Thares:
As requested, outlined below is a scope of work and cost estimate to complete a Phase II
Environmental Site Assessment (ESA) at 216 Pine Street and the east adjoining vacant parcel
(Wright County Parcel 155010034020), located at the southwestern portion of Block 34 in
downtown Monticello (Site). WSB understands a new 10,000 square foot office building is
proposed at the Site.
WSB has provided the City of Monticello (City) with environmental assessment, investigation, and
construction oversight services across Block 34 dating back to 2014. WSB recently completed a
Phase I ESA report dated March 13, 2024, for the 216 Pine Street parcel (2024 Phase I ESA).
The 2024 Phase I ESA identified the following recognized environmental condition (REC)
associated with 216 Pine Street:
• REC-1: Adjoining Contamination Impacts
Previous investigations completed at the north adjoining parcel at 100 Broadway Street
East identified petroleum and nonpetroleum impacts to soil. The north adjoining parcel
was formerly occupied by a gasoline station and auto garage (Phillips 66 Station) from
approximately the 1930s until the mid-1970s. A petroleum leak (LS0019812) was
discovered at the adjoining parcel during building demolition in 2015. Subsequently, a
contamination cleanup was performed at the western portion of the adjoining parcel
during an intersection improvements project in 2016. Confirmation samples collected
from the remaining in place soil near the northern 216 Pine Street parcel boundary
identified elevated diesel range organics (DRO) and benzo(a)pyrene (BaP) equivalent
impacts above regulatory thresholds in the upper four feet of soil. Based on proximity, it
is likely that petroleum and nonpetroleum impacts to soil are present at the northern
portion of the 216 Pine Street parcel. The likely presence of soil impacts requiring
response actions during redevelopment at the northern portion of the 216 Pine Street
parcel was identified as a REC.
The purpose of the Phase II ESA is to: 1) Determine if the REC identified in the 2024 Phase I
ESA has resulted in subsurface impacts at the northern portion of the 216 Pine Street parcel; and
2) Provide further environmental data at the Site, specifically targeting the proposed office
building footprint. WSB understands the Phase II ESA findings will be used for environmental
planning and budgeting purposes associated with the proposed Site redevelopment. The
following tasks are proposed as part of this scope of work:
Mr. Jim Thares
January 14, 2025
Page 2
SOIL BORINGS
WSB will advance push-probe soil borings at the Site and collect soil, groundwater and soil vapor
samples for laboratory analyses. A map showing the proposed environmental boring locations is
attached. The soil boring activities will include:
• Complete private and public utility locates.
• Advance six borings (EB-1 through EB-6) to depths of up to 16 feet below grade for the
collection of soil and groundwater samples. Temporary monitoring wells will be installed
at each boring location.
• Advance four soil vapor borings (SV-1 through SV-4) to depths of up to eight feet below
grade for the collection of soil vapor samples.
• Screen soils using a photoionization detector (PID) equipped with a 10.6 electron volt
(eV) lamp and for visual and olfactory indications of contamination (e.g., staining,
petroleum/chemical odors, debris, etc.).
• Record general soil classifications/observations on a field log.
• Seal borings per Minnesota Department of Health (MDH) requirements.
• Use Global Positioning System (GPS) technology to record boring locations.
SOIL, GROUNDWATER AND SOIL VAPOR SAMPLING
WSB will collect soil, groundwater and soil vapor samples during the investigation in accordance
with Minesota Pollution Control Agency (MPCA) guidance. The samples will be analyzed for
compounds commonly associated with the REC identified in the 2024 Phase I ESA and to assist
with future landfill waste approval efforts if needed during Site redevelopment activities. The soil,
groundwater and soil vapor samples collected from the borings will be submitted to an MDH-
certified analytical laboratory for analysis of one or more of the following:
Soil
• DRO by the Wisconsin Modified Method (up to 12 samples)
• Gasoline range organics (GRO) by the Wisconsin Modified Method (up to 12 samples)
• Volatile organic compounds (VOCs) by EPA Method 8260D (up to 12 samples)
• Polycyclic aromatic hydrocarbons (PAHs) by EPA Method 8270E SIM (up to 12 samples)
• Resource Conservation and Recovery Act Metals (RCRA Metals) by EPA Method
6020B/7471B (up to 12 samples)
Groundwater
• DRO by the Wisconsin Modified Method (up to six samples)
• GRO by the Wisconsin Modified Method (up to six samples)
• VOCs by EPA Method 8260D (up to six samples)
• PAHs by EPA Method 8270E SIM (up to six samples)
• Dissolved RCRA Metals by EPA Method 6020B/7471B (up to six samples)
Soil Vapor
• VOCs by EPA Method TO-15, full scan (up to four samples)
REPORTING
WSB will summarize the results of the investigation in a final report. At a minimum, the report will
include the following:
• Scope of work
• Sample location map
• Sample methods and procedures
• Results tables and laboratory analytical reports
Mr. Jim Thares
January 14, 2025
Page 3
• Investigation results
• Recommendations (if requested by the City)
• Conclusions
ASSUMPTIONS
The following items are assumed for this scope of work:
• Site access will be facilitated by the City.
• The Phase II ESA will be limited to the scoped boring locations and the magnitude and
extent of contamination (if discovered) may not be defined.
• The proposed boring locations shown on the attached map may need to be moved in the
field due to access constraints (e.g., subgrade utility conflicts).
• Based on information included in the 2024 Phase I ESA, groundwater is assumed to be
present in the upper 16 feet below grade at the Site. Even if groundwater is not
encountered, the borings will not be advanced deeper than 16 feet below grade.
• WSB will contract an analytical testing firm for soil, groundwater and soil vapor sample
analysis. The laboratory samples will be analyzed under a standard 7-10 business-day
turnaround timeframe.
• Up to two soil samples and one groundwater sample will be collected from each soil
boring. Up to one soil vapor sample will be collected from each soil vapor boring.
• If field indications of contamination are observed during the drilling, additional samples
and/or analyses may be recommended. Additional samples and/or analyses beyond
those listed above will require additional fees.
• WSB will contract an environmental drilling firm to complete the borings.
• The drilling will be completed in one workday.
• The drill rig may damage sidewalks, parking areas, and/or lawn areas during normal
drilling activities. The drilling subcontractor will patch concrete/asphalt as needed, but
WSB will not be responsible for costs to restore any Site conditions.
• A final report will be delivered within two weeks of receiving the laboratory analytical
results.
• The City will provide one review/comment of the report.
TOTAL COST AND SCHEDULE
The cost to perform the above-described Phase II ESA is a lump sum fee of $18,200. If
additional work is required beyond this scope, WSB will provide those services on a time and
materials basis following approval from the City. Upon authorization, the Phase II ESA will be
initiated immediately, and a draft report will be provided within two weeks of receiving the
laboratory analytical results.
ACCEPTANCE
This proposal represents our understanding of the project scope. All work completed through this
proposal will be governed by the enclosed General Contract Provisions. If the scope and fee are
acceptable, please sign on the space provided and return one copy to WSB. We are available to
begin work once we receive signed authorization.
WSB appreciates the opportunity of being considered for this project and we look forward to
providing our professional services to you. If you have any questions about this proposal, please
feel free to contact Ben Fehr at bfehr@wsbeng.com or 612-248-7007.
Mr. Jim Thares
January 14, 2025
Page 4
Sincerely,
WSB
Ben Fehr Ryan Spencer, CHMM
Project Manager Director of EIR
__________________________________________________________________
Enclosures
Proposed Boring Map
WSB 2025 Rate Schedule
WSB General Contract Provisions
SIGNATURE
I hereby authorize the above scope of work, schedule, and cost.
_________________________________________
Name (Print)
_________________________________________
Signature
_________________________________________
Date
Wright County, MN
Developed by
Date created: 1/14/2025
Last Data Uploaded: 1/14/2025 9:28:18 AM
64 ft
Overview
Legend
Highways
Interstate
State Hwy
US Hwy
Roads
City/Township Limits
c
t
Parcels
Torrens
2025 Rate Schedule
WSBENG.COM
Billing Rate/Hour
PRINCIPAL | ASSOCIATE
$195 - $281
SR. PROJECT MANAGER | SR. PROJECT ENGINEER
$195 - $251
PROJECT MANAGER
$171 - $191
PROJECT ENGINEER | GRADUATE ENGINEER
$115 - $190
PROJECT MANAGER ASSISTANT
$95 - $155
ENGINEERING TECHNICIAN | ENGINEERING SPECIALIST
$76 - $189
LANDSCAPE ARCHITECT | SR. LANDSCAPE ARCHITECT
$86 - $182
ENVIRONMENTAL SCIENTIST | SR. ENVIRONMENTAL SCIENTIST
$77 - $180
PLANNER | SR. PLANNER
$89 - $188
GIS SPECIALIST | SR. GIS SPECIALIST
$86 - $188
CONSTRUCTION OBSERVER
$117 - $152
SURVEY
Survey Office Technician $136 - $169
Drone Pilot $197
One-Person Crew $197
Two-Person Crew $265
OFFICE TECHNICIAN
$67 - $147
Costs associated with word processing, cell phones, reproduction of common correspondence, and mailing are
included in the above hourly rates. Vehicle mileage is included in our billing rates [excluding geotechnical and
construction materials testing (CMT) service rates]. Mileage can be charged separately, if specifically outlined by
contract. | Reimbursable expenses include costs associated with plan, specification, and report reproduction; permit
fees; delivery costs; etc. | Multiple rates illustrate the varying levels of experience within each category. | Rate
Schedule is adjusted annually.
Exhibit A – GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN
Page 1
WSB LLC
EXHIBIT A
GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR
ASSESSMENT
ARTICLE 1 – PERFORMANCE OF THE WORK
Consultant shall perform the services under this Agreement in accordance with the care and skill ordinarily
exercised by members of Consultant’s profession practicing under similar circumstances at the same time
and in the same locality. Consultant makes no warranties, express or implied, under this Agreement or
otherwise, in connection with its services.
ARTICLE 2 – ADDITIONAL SERVICES
If the Client requests that the Consultant perform any services which are beyond the scope as set forth in
the Agreement, or if changed or unforeseen conditions require the Consultant to perform services outside
of the original scope, then, Consultant shall promptly notify the Client of cause and nature of the additional
services required. Upon notification, Consultant shall be entitled to an equitable adjustment in both
compensation and time to perform.
ARTICLE 3 – SCHEDULE
Unless specific periods of time or dates for providing services are specified in a separate Exhibit,
Consultant’s obligation to render services hereunder will be for a period which may reasonably be required
for the completion of said services. The Client agrees that Consultant is not responsible for damages
arising directly or indirectly from any delays for causes beyond Consultant’s control. For purposes of this
Agreement, such causes include, but are not limited to, strikes or other labor disputes; severe weather
disruptions, or other natural disasters or acts of God; fires, riots, war or other emergencies; any action or
failure to act in a timely manner by any government agency; actions or failure to act by the Client or the
Client’s contractor or consultants; or discovery of any hazardous substance or differing site conditions. If
the delays outside of Consultant’s control increase the cost or the time required by Consultant to perform
its services in accordance with professional skill and care, then Consultant shall be entitled to a reasonable
adjustment in schedule and compensation.
ARTICLE 4 – JOBSITE SAFETY
Neither the professional activities of the Consultant, nor the presence of the Consultant or its employees
and subconsultants at a construction/project site, shall impose any duty on the Consultant, nor relieve the
general contractor of its obligations, duties and responsibilities including, but not limited to, construction
means, methods, sequence, techniques or procedures necessary for performing, superintending and
coordinating the work in accordance with the contract documents and any health or safety precautions
required by any regulatory agencies. The Consultant and its personnel have no authority to exercise any
control over any construction contractor or its employees in connection with their work or any health or
safety programs or procedures. The Client agrees that the general contractor shall be solely responsible
for jobsite and worker safety and warrants that this intent shall be carried out in the Client's contract with
the general contractor.
ARTICLE 5 – OPINIONS OF PROBABLE COST
Opinions, if any, of probable cost, construction cost, financial evaluations, feasibility studies, economic
analyses of alternate solutions and utilitarian considerations of operations and maintenance costs,
collectively referred to as “Cost Estimates,” provided for are made or to be made on the basis of the
Consultant's experience and qualifications and represent the Consultant's best judgment as an experienced
and qualified professional design firm. The parties acknowledge, however, that the Consultant does not
have control over the cost of labor, material, equipment or services furnished by others or over market
conditions or contractor’s methods of determining their prices, and any evaluation of any facility to be
constructed or acquired, or work to be performed must, of necessity, be viewed as simply preliminary.
Accordingly, the Consultant and Client agree that the proposals, bids or actual costs may vary from
opinions, evaluations or studies submitted by the Consultant and that Consultant assumes no responsibility
for the accuracy of opinions of Cost Estimates and Client expressly waives any claims related to the
Exhibit A – GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN
Page 2
accuracy of opinions of Cost Estimates. If Client wishes greater assurance as to Cost Estimates, Client
shall employ an independent cost estimator as part of its Project responsibilities.
ARTICLE 6 – REUSE AND DISPOSITION OF INSTRUMENTS OF SERVICE
All documents, including reports, drawings, calculations, specifications, CADD materials, computers
software or hardware or other work product prepared by Consultant pursuant to this Agreement are
Consultant’s Instruments of Service and Consultant retains all ownership interests in Instruments of
Service, including copyrights. The Instruments of Service are not intended or represented to be suitable
for reuse by the Client or others on extensions of the Project or on any other project. Copies of documents
that may be relied upon by Client are limited to the printed copies (also known as hard copies) that are
signed or sealed by Consultant. Files in electronic format furnished to Client are only for convenience of
Client. Any conclusion or information obtained or derived from such electronic files will be at the user’s sole
risk. Consultant makes no representations as to long term compatibility, usability or readability of electronic
files.
If requested, at the time of completion or termination of the work, the Consultant may make available to the
Client the Instruments of Service upon (i) payment of amounts due and owing for work performed and
expenses incurred to the date and time of termination, and (ii) fulfillment of the Client’s obligations under
this Agreement. Any use or re-use of such Instruments of Service by the Client or others without written
consent, verification or adaptation by the Consultant except for the specific purpose intended will be at the
Client’s risk and full legal responsibility and Client expressly releases all claims against Consultant arising
from re-use of the Instruments of Service without Consultant’s written consent, verification or adaptation.
The Client will, to the fullest extent permitted by law, indemnify and hold the Consultant harmless from any
claim, liability or cost (including reasonable attorneys' fees, and defense costs) arising or allegedly arising
out of any unauthorized reuse or modification of these Instruments of Service by the Client or any person
or entity that acquires or obtains the reports, plans and specifications from or through the Client without the
written authorization of the Consultant. Under no circumstances shall transfer of Instruments of Service be
deemed a sale by Consultant, and Consultant makes no warranties, either expressed or implied, of
merchantability and fitness for any particular purpose. Consultant shall be entitled to compensation for any
consent, verification or adaption of the Instruments of Service for extensions of the Project or any other
project.
ARTICLE 7 – PAYMENTS
Payment to Consultant shall be on a lump sum or hourly basis as set out in the Agreement. Consultant is
entitled to payment of amounts due plus reimbursable expenses. Client will pay the balance stated on the
invoice unless Client notifies Consultant in writing of any disputed items within fifteen (15) days from the
date of invoice. In the event of any dispute, Client will pay all undisputed amounts in the ordinary course,
and the Parties will endeavor to resolve all disputed items. All accounts unpaid after thirty (30) days from
the date of original invoice shall be subject to a service charge of 1-1/2% per month, or the maximum
amount authorized by law, whichever is less. Consultant reserves the right to retain instruments of service
until all invoices are paid in full. Consultant will not be liable for any claims of loss, delay, or damage by
Client for reason of withholding services or instruments of service until all invoices are paid in full. Consultant
shall be entitled to recover all reasonable costs and disbursements, including reasonable attorney fees,
incurred in connection with collecting amounts owed by Client. In addition, Consultant may, after giving
seven (7) days’ written notice to Client, suspend services under this Agreement until it receives full payment
for all amounts then due for services, expenses and charges.
ARTICLE 8 – SUBMITTALS AND PAY APPLICATIONS
If the Scope of Work includes the Consultant reviewing and certifying the amounts due the Contractor, the
Consultant’s certification for payment shall constitute a representation to the Client, that to the best of the
Consultant’s knowledge, information and belief, the Work has progressed to the point indicated and that
the quality of the Work is in general accordance with the Documents issued by the Consultant. The issuance
of a Certificate for Payment shall not be a representation that the Consultant has (1) made exhaustive or
continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed construction
means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received from
Subcontractors and material suppliers and other data requested by the Client to substantiate the
Exhibit A – GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN
Page 3
Contractor’s right to payment, or (4) ascertained how or for what purpose the Contractor has used money
previously paid on account of the Contract Sum. Contractor shall remain exclusively responsible for its
Work.
If the Scope of Work includes Consultant’s review and approval of submittals from the Contractor, such
review shall be for the limited purpose of checking for conformance with the information given and the
design concept. The review of submittals is not intended to determine the accuracy of all components, the
accuracy of the quantities or dimensions, or the safety procedures, means or methods to be used in
construction, and those responsibilities remain exclusively with the Client’s contractor.
ARTICLE 9 – HAZARDOUS MATERIALS
Notwithstanding the Scope of Services to be provided pursuant to this Agreement, it is understood and
agreed that Consultant is not a user, handler, generator, operator, treater, arranger, storer, transporter, or
disposer of hazardous or toxic substances, pollutants or contaminants as any of the foregoing items are
defined by Federal, State and/or local law, rules or regulations, now existing or hereafter amended, and
which may be found or identified on any Project which is undertaken by Consultant.
The Client agrees to indemnify Consultant and its officers, subconsultant(s), employees and agents from
and against any and all claims, losses, damages, liability and costs, including but not limited to costs of
defense, arising out of or in any way connected with, the presence, discharge, release, or escape of
hazardous or toxic substances, pollutants or contaminants of any kind, except that this clause shall not
apply to such liability as may arise out of Consultant’s sole negligence in the performance of services under
this Agreement arising from or relating to hazardous or toxic substances, pollutants, or contaminants
specifically identified by the Client and included within Consultant’s services to be provided under this
Agreement.
ARTICLE 10 – INSURANCE
Consultant has procured general and professional liability insurance. On request, Consultant will furnish
client with a certificate of insurance detailing the precise nature and type of insurance, along with applicable
policy limits.
ARTICLE 11 – TERMINATION OR SUSPENSION
If Consultant’s services are delayed or suspended in whole or in part by Client, or if Consultant’s services
are delayed by actions or inactions of others for more than sixty (60) days through no fault of Consultant,
Consultant shall be entitled to either terminate its agreement upon seven (7) days written notice or, at its
option, accept an equitable adjustment of rates and amounts of compensation provided for elsewhere in
this Agreement to reflect reasonable costs incurred by Consultant in connection with, among other things,
such delay or suspension and reactivation and the fact that the time for performance under this Agreement
has been revised.
This Agreement may be terminated by either party upon seven (7) days written notice should the other
party fail substantially to perform in accordance with its terms through no fault of the party initiating the
termination. In the event of termination Consultant shall be compensated for services performed prior to
termination date, including charges for expenses and equipment costs then due and all termination
expenses.
This Agreement may be terminated by either party upon thirty (30) days’ written notice without cause.
Consultant shall upon termination only be entitled to payment for the work performed up to the Date of
termination. In the event of termination, copies of plans, reports, specifications, electronic drawing/data
files (CADD), field data, notes, and other documents whether written, printed or recorded on any medium
whatsoever, finished or unfinished, prepared by the Consultant pursuant to this Agreement and pertaining
to the work or to the Project, (hereinafter "Instruments of Service"), shall be made available to the Client
upon payment of all amounts due as of the date of termination. All provisions of this Agreement allocating
responsibility or liability between the Client and Consultant shall survive the completion of the services
hereunder and/or the termination of this Agreement.
Exhibit A – GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN
Page 4
ARTICLE 12 – INDEMNIFICATION
The Consultant agrees to indemnify and hold the Client harmless from any damage, liability or cost to the
extent caused by the Consultant’s negligence or willful misconduct.
The Client agrees to indemnify and hold the Consultant harmless from any damage, liability or cost to the
extent caused by the Client’s negligence or willful misconduct.
ARTICLE 13 – WAIVER OF CONSEQUENTIAL DAMAGES
Notwithstanding any other provision of this Agreement, and to the fullest extent permitted by law, neither
the Client nor the Consultant, their respective officers, directors, partners, employees, contractors or
subconsultants shall be liable to the other or shall make any claim for any incidental, indirect or
consequential damages arising out of or connected in any way to the Project or to this Agreement. This
mutual waiver of consequential damages shall include, but is not limited to, loss of use, loss of profit, loss
of business, loss of income, loss of reputation and any other consequential damages that either party may
have incurred from any cause of action including negligence, strict liability, breach of contract and breach
of strict or implied warranty. Both the Client and the Consultant shall require similar waivers of consequential
damages protecting all the entities or persons named herein in all contracts and subcontracts with others
involved in this project. This mutual waiver shall apply even if the damages were foreseeable and regardless
of the theory of recovery plead or asserted.
ARTICLE 14 – WAIVER OF CLAIMS FOR PERSONAL LIABILITY
It is intended by the parties to this Agreement that Consultant’s services shall not subject Consultant’s
employees, officers or directors to any personal legal exposure for the risks associated with this Agreement.
Therefore, and notwithstanding anything to the contrary contained herein, the Client agrees that as the
Client’s sole and exclusive remedy, any claim, demand or suit shall be directed and/or asserted only against
Consultant, and not against any of Consultant’s individual employees, officers or directors.
ARTICLE 15 – ASSIGNMENT
Neither Party to this Agreement shall assign its interest in this agreement, any proceeds due under the
Agreement nor any claims that may arise from services or payments due under the Agreement without the
written consent of the other Party. Any assignment in violation of this provision shall be null and void.
Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor
of a third party against either the Consultant or Client. This Agreement is for the exclusive benefit of
Consultant and Client and there are no other intended beneficiaries of this Agreement.
ARTICLE 16 – CONFLICT RESOLUTION
In an effort to resolve any conflicts that arise during the design or construction of the project or following
the completion of the project, the Client and Consultant agree that all disputes between them arising out of
or relating to this Agreement shall be submitted to nonbinding mediation as a precondition to any formal
legal proceedings.
ARTICLE 17 – CONFIDENTIALITY
The Consultant agrees to keep confidential and not to disclose to any person or entity, other than the
Consultant’s employees, subconsultants and the general contractor and subcontractors, if appropriate, any
data and information furnished to the Consultant and marked CONFIDENTIAL by the Client. These
provisions shall not apply to information in whatever form that comes into the public domain, nor shall it
restrict the Consultant from giving notices required by law or complying with an order to provide information
or data when such order is issued by a court, administrative agency or other authority with proper
jurisdiction, or if it is reasonably necessary for the Consultant to complete services under the Agreement or
defend itself from any suit or claim.
ARTICLE 18 – LIMITATION OF LIABILITY
To the fullest extent permitted by law, and not withstanding any other provision of this Agreement, the total
liability, in the aggregate, of the Consultant and the Consultant's officers, directors, partners, employees
and subconsultants, and any of them, to the Client and anyone claiming by or through the Client, for any
and all claims, losses, costs or damages, including attorneys' fees and costs and expert-witness fees and
costs of any nature whatsoever or claims expenses resulting from or in any way related to the project or
Exhibit A – GENERAL CONTRACT PROVISIONS FOR ENVIRONMENTAL INVESTIGATION, REMEDIATION OR ASSESSMENT 02.12.20 - MN
Page 5
the Agreement from any cause or causes shall not exceed $20,000. It is intended that this limitation apply
to any and all liability or cause of action, including without limitation active and passive negligence however
alleged or arising, unless otherwise prohibited by law. In no event shall the Consultant’s liability exceed the
amount of available insurance proceeds.
ARTICLE 19 – CONTROLLING LAW
This Agreement is to be governed by the laws of the State of Minnesota. Any controversy or claim arising
out of or relating to this Agreement, or the breach thereof, including but not limited to claims for negligence
or breach of warranty, that is not settled by nonbinding mediation shall be settled by the law of the State of
Minnesota.
ARTICLE 20 – LOCATION OF UNDERGROUND IMPROVEMENTS
Where requested by Client, Consultant will perform customary research to assist Client in locating and
identifying subterranean structures or utilities. However, Consultant may reasonably rely on information from
the Client and information provided by local utilities related to structures or utilities and will not be liable for
damages incurred where Consultant has complied with the standard of care and acted in reliance on that
information. The Client agrees to waive all claims and causes of action against the Consultant for claims
by Client or its contractors relating to the identification, removal, relocation, or restoration of utilities, or
damages to underground improvements resulting from subsurface penetration locations established by the
Consultant.
ARTICLE 21 – ACCESS TO SITE
Client shall arrange and provide such access to the site as is necessary for Consultant to perform the work.
ARTICLE 22 - SAMPLE DISPOSAL
All environmental samples (“Samples”) collected by Consultant are sent to and analyzed by a third-party
laboratory, and all such Samples shall be disposed of according to the third-party laboratory’s policies.
ARTICLE 23 – EXPERT WITNESS AND SUBPOENA FEES
Consultant shall not be retained as an expert witness except by separate, written agreement. The Client
agrees to pay Consultant’s costs to respond to any subpoena related to the work performed under this
Agreement, including attorneys’ fees and administrative costs.
Article 24 – FIDUCIARY RELATIONSHIP
Client agrees that this neither Agreement nor the services Consultant is providing under this Agreement
creates a fiduciary relationship between Consultant and Client.
Wright County, MN
Block 34 Created by: City of Monticello
Overview
Multi
Parcel
Instr
Type
Quali ed
Sale Sale Date Book Page
Sale
Type Buyer Seller
Sale
Price
Adjusted
Sale
Price
eCRV
#eCRV
Sale
Type
S.S.
Rcmd.S.S. Rjt. Rsn.
Transact
Num
N WD U 10/31/2023 I-
Improved
CITY OF
MONTICELLO
EDA
JAMES
B &
CHERYL
A
WOLFF
$465,000 $465,000 1596185 I 1 03B-
GOVERNMENT
N WD U 4/21/2005 I-Improved WOLFFJAMES USBANKNA
$145,000 $145,000 95623 I 14-CFD/INT PA 95623
2024 Assessment 2023 Assessment 2022 Assessment 2021 Assessment 2020 Assessment
+Estimated Land Value $201,600 $155,300 $116,100 $116,000 $116,000
+Estimated Building Value $160,900 $160,900 $128,000 $121,000 $114,000
+Estimated Machinery Value $0 $0 $0 $0 $0
=Total Estimated Market Value $362,500 $316,200 $244,100 $237,000 $230,000
%Change 14.64%29.54%3.00%3.04%0.00%
2024 Payable 2023 Payable 2022 Payable 2021 Payable
Estimated Market Value $316,200 $244,100 $237,000 $230,000
-Excluded Value $0 $0 $0 $0
-Homestead Exclusion $0 $0 $0 $0
=Taxable Market Value $316,200 $244,100 $237,000 $230,000
Net Taxes Due $6,160.24 $4,675.26 $5,196.27 $4,985.27
+Special Assessments $643.76 $666.74 $689.73 $712.73
=Total Taxes Due $6,804.00 $5,342.00 $5,886.00 $5,698.00
%Change 27.37%-9.24%3.30%-2.00%
Payment #Receipt #Receipt Print Date Amt Write Off Amt Charge Amt Payment
1069136 6/25/2024 $0.00 $0.00 $6,804.00
1070828 6/25/2024 $0.00 $0.00 ($6,804.00)
1069136 5/23/2024 $0.00 $0.00 ($6,804.00)
955113 10/5/2023 $0.00 $0.00 ($2,671.00)
865353 5/3/2023 $0.00 $0.00 ($2,671.00)
840493 1804486 10/17/2022 $0.00 $0.00 ($2,943.00)
777526 1770104 5/13/2022 $0.00 $0.00 ($2,943.00)
710329 1729213 10/14/2021 $0.00 $0.00 ($2,849.00)
650604 1694778 5/12/2021 $0.00 $0.00 ($2,849.00)
590250 1655320 10/15/2020 $0.00 $0.00 ($2,907.00)
529079 1620971 5/14/2020 $0.00 $0.00 ($2,907.00)
462591 1580499 10/16/2019 $0.00 $0.00 $0.00
404257 1540519 5/13/2019 $0.00 $0.00 $0.00
Summary
Parcel ID 155010034010Property Address 216 PINE STMONTICELLO MN 55362
Sec/Twp/Rng 11-121-025Brief TaxDescription SECT-11 TWP-121 RANGE-025 ORIGINAL PLAT MONTICELLOLOT-001 BLOCK-034(Note: Not to be used on legal documents)
Class 958 - 5E MUNICIPAL-PUBLIC SERVICE-OTHER
District (1101) CITY OF MONTICELLO-0882School District 0882(Note: Class refers to Assessor's Classi cation Used For Property
Tax Purposes)
Sales
Valuation
Taxation
Taxes Paid
Sketches
Wright County, MN
Map
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Contact Us Developed by
EDA Agenda: 2/12/25
6B. Consideration of Authorizing a Professional Services Contract with LHB, Inc. in an
amount not to exceed $20,600 to complete a Blight and Substandard Findings TIF
Analysis related to potential Block 34 redevelopment activities
Prepared by:
Economic Development Manager
Meeting Date:
2/12/25
☒ Regular Agenda Item
☐ Consent Agenda Item
Reviewed by:
Community Development Director,
Community Economic Development
Coordinator
Approved by:
City Administrator
ACTION REQUESTED
Motion to authorize a professional services contract with LHB, Inc. in an amount not to exceed
$20,600 to complete a Blight and Substandard Findings TIF Analysis related to potential
Block 34 redevelopment activities.
Motion of other.
REFERENCE AND BACKGROUND
Based on the EDA’s recent authorization to seek a proposal and a quote from LHB Inc, for
the Blight and Substandard TIF Analysis, the EDA is asked to consider entering into a
professional services contract with LHB, Inc. to complete a Blight and Substandard Findings TIF
Analysis related to potential Block 34 redevelopment activities.
Blight and Substandard TIF Analysis findings are required to determine if it is feasible to
establish a TIF Redevelopment District in Block 34. Per Minnesota Tax Increment Financing
(TIF) Statutes, and as noted in Section III and IV of the LHB proposal, certain thresholds of
site coverage (previous development including paved parking areas) and blight-substandard
conditions must be documented as being prevalent in a specific geographic target area.
The blight and substandard conditions then serve as justification for using TIF as a public
financial assistance tool.
LHB Inc. is one of the only firms in the region that completes Blight and Substandard TIF
Analysis reports and in its proposal points out that it has significant experience in completing
these reports used to establish over 430 TIF Districts in Minnesota. A partial list of similar
work completed in other cities throughout the region is noted on page 1.
LHB Inc’s proposal and quote contains work tasks identified in the Scope of Services (page
2 and 3). Specific work tasks include site survey work, building inspections, and final report
preparation. The scope includes inspection of up to seven (7) properties located in Block
34.
EDA Agenda: 2/12/25
I. Budget Impact: The budget impact related to the LHB Inc. Blight and Substandard TIF
Analysis proposal is up to $20,600. The proposal identifies the first phase of work tasks at a
cost of $17,400 and a potential second phase of work tasks at a cost of $3,200. The
combined not to exceed price for the proposed scope of services is $20,600. The adopted
2025 EDA General Fund budget includes a line item related to Redevelopment Activities.
This line item is sufficient to cover the cost for completion of the Blight and Substandard TIF
Analysis report.
II. Staff Workload Impact: The Community Development Director and Economic Development
Manager have committed time to completing tasks related to the proposed environmental
studies. Those tasks include discussions with the consultant regarding the desired scope of
work tasks and the optimal timeline of completion. 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: Completing the Blight and Substandard TIF Analysis report is
a requirement in order to move forward with establishment of a Redevelopment TIF
District. The findings in this report will guide the next steps to the Block 34 redevelopment
efforts. Redevelopment of Block 34 is identified as a goal within the 2017 Downtown Small
Area Plan, an appendix of the Monticello 2040 Vision + Plan, which envision various efforts
to create a vibrant Downtown.
STAFF RECOMMENDATION
Staff recommend the EDA authorize entering into a professional service contract with LHB Inc.
for completion of a Blight and Substandard TIF Analysis report which is required step to establish
a Redevelopment TIF District. LHB Inc. has completed similar Blight and Substandard TIF Analysis
reports for the EDA in the past including Block 52 in 2022 and previously for Block 34 in early
2015. Staff are confident in LHB Inc.’s ability to complete the proposed scope of work and provide
the Blight and Substandard TIF Analysis report to the EDA in a timely manner.
SUPPORTING DATA
A. LHB Inc. Scope of Work Proposal – Blight and Substandard TIF Analysis Report
B. Aerial Photo – Block 34
February 3, 2025
Jim Thares
Economic Development Manager
City of Monticello
505 Walnut Street, Suite 1
Monticello, MN 55362
AGREEMENT FOR INVESTIGATIVE SERVICES
BLOCK 34 TIF ANALYSIS
Thank you for the opportunity to submit our proposal to provide a TIF analysis for Block 34 in Monticello, Minnesota.
LHB is a full-service architecture, planning, and engineering firm with a total of 260 staff located in our Minneapolis,
Duluth, and Cambridge, Minnesota, and Superior, Wisconsin offices.
Our Government Studio has extensive experience working with local governments on their planning, design,
architectural and engineering needs. Having been personally involved on various city councils and planning
commissions, I understand how cities function and the importance of maintaining the support of appointed and
elected officials and community throughout the process.
Below outlines our previous experience, team credentials, and scope of services. This proposal, if approved, will
serve as the Agreement between LHB and Client.
I. PREVIOUS EXPERIENCE
LHB has significant experience with a variety of inspection and facility assessment projects, including the analysis
of over 430 TIF Districts. Some examples include:
City of Columbia Heights TIF Inspection Services
City of St. Paul TIF Inspection Services
City of St. Anthony Village, NW Quadrant TIF Inspection Services
City of St. Louis Park TIF Inspection Services
City of Mount TIF District “1-2” Inspection Services
City of Osseo TIF Inspection Services
City of New Richmond (Wisconsin) TIF Inspection Services
Minnesota State System Facility Assessments
State of Minnesota Facility Assessments
Property Condition Assessments for the St. Paul Department of Planning and Economic Development
(Franklin/Emerald Neighborhood)
Condition Surveys for every DNR Facility in the State of Minnesota, 2014
BLOCK 34 TIF ANALYSIS PAGE 2
CITY OF MONTICELLO
Professional Services Agreement Page 2 of 5
Investigative Services-Tif Analysis Form LHB V2.0 04/2022
II. TEAM CREDENTIALS
Michael A. Fischer, AIA, LEED AP – Project Principal/TIF Analyst
Michael is a Principal and Vice President at LHB, with over 38-years of experience serving as a Project Principal,
Project Manager, Project Designer and Project Architect on planning, urban design, educational, commercial, and
governmental projects, he has become an expert on Tax Increment Finance District (TIF) analysis assisting over
125 cities with strategic planning for TIF Districts.
Michael completed a two-year Bush Fellowship, studying at MIT and Harvard in 1999, earning master’s degrees in
City Planning and Real Estate Development from MIT. He has served on more than 50 committees, boards, and
community task forces, including City Council President in Superior, Wisconsin, Chair of the Duluth/Superior
Metropolitan Planning Organization, and Chair of the Edina, Minnesota Planning Commission. Most recently, he
served as a member of the Edina city council and Secretary of the Edina HRA. Michael has also managed and
designed several award-winning architectural projects and was one of four architects in the Country to receive the
AIA Young Architects Citation in 1997.
Phil Fisher - Inspector
For 35-years, Phil worked in the field of Building Operations in Minnesota including White Bear Lake Area Schools.
At the University of Minnesota, he earned his Bachelor of Science in Industrial Technology. He is a Certified
Playground Safety Inspector, a Certified Plant Engineer, and trained in Minnesota Enterprise Real Properties
(MERP) Facility Condition Assessment (FCA). His FCA training was recently applied to the Minnesota Department
of Natural Resources Facilities Condition Assessment project involving over 2,000 buildings.
III. SCOPE OF SERVICES
1. Survey the TIF District to Determine if it Meets Applicable Coverage Test
a. To meet the coverage test, parcels consisting of 70 percent of the area of the district must be “occupied”
by buildings, streets, utilities, or paved or gravel parking lots.
b. A parcel is not considered “occupied” unless at least 15 percent of its total area contains improvements.
2. Conduct Visual Review of Building Interior and Exterior
a. Obtain property owner’s consent for inspection.
b. Document property conditions relative to Minnesota Statutes Section 469.174 Subdivision 10.
3. Estimate Building Replacement Cost
a. Replacement cost is the cost of constructing a new structure of the same square footage and type on the
site.
b. A base cost will be calculated by establishing the building class, type, and construction quality.
c. Identify amenities, which increase the value of the building over the standard construction quality level.
d. Review building permits for each parcel.
e. The base cost and cost of amenities will be totaled to determine the replacement cost for the property.
4. Evaluate Building Existing Condition
a. Evaluate condition of the building based on Minnesota Statutes Section 469.174 Subdivision 10 definition
of structurally substandard:
i. “Structurally substandard shall mean containing defects in structural elements or a combination of
deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate
egress, layout and condition of interior partitions, or similar factors, which defects, or deficiencies are
of sufficient total significance to justify substantial renovation or clearance.”
BLOCK 34 TIF ANALYSIS PAGE 3
CITY OF MONTICELLO
Professional Services Agreement Page 3 of 5
Investigative Services-Tif Analysis Form LHB V2.0 04/2022
5. Determine Building(s) Code Deficiencies
a. Determine technical conditions, which are not in compliance with current building code applicable to new
buildings.
b. Provide opinion of probable cost to correct identified deficiencies.
c. Compare cost of deficiency corrections to replacement value of building.
6. Prepare and Deliver Report:
a. Full Redevelopment TIF Report
b. Deliver final reports in .pdf format via Email.
IV. ASSUMPTIONS
1. The preliminary boundaries of the district are as follows:
a. Seven buildings and one outbuilding on approximately twelve parcels within Block 34 in Monticello,
Minnesota.
b. LHB proposes to inspect and complete building reports for up to four buildings. LHB will also re-inspect
and update previous building reports for up to three buildings.
2. Client will provide the following:
a. A list of all parcels affected, including name of owner and current known business or resident name and
address.
b. Available information regarding the requirements of the engagement, and reports on the condition of the
structures.
3. LHB shall be entitled to rely upon the information provided by the Client.
4. A building is not considered structurally substandard if it is in compliance with building code applicable to new
buildings or could be modified to satisfy the code at a cost which is less than 15 percent of its replacement
cost.
V. STANDARD OF CARE
LHB shall perform its services consistent with the professional skill and care ordinarily provided by other
professionals practicing in the same or similar locality under the same or similar circumstances. LHB shall perform
its services in a timely manner consistent with the professional skill and care required for the orderly progress of
the engagement.
Any report prepared by LHB represents a professional opinion based upon information available and arrived at in
accordance with generally accepted professional standards. Other than as contained in the report, LHB makes no
express or implied warranty.
Short of complete deconstruction to examine every element at every location, no assessment can reveal all
conditions which may exist. Additional testing, assessment, or demolition may uncover conditions which would
make it necessary to modify LHB’s conclusions or recommendations.
Any report prepared for the purpose described in this Agreement is for the exclusive use by those to whom the
report is addressed. LHB will not and cannot be held liable for the unauthorized reliance upon this report by any
third party.
BLOCK 34 TIF ANALYSIS PAGE 4
CITY OF MONTICELLO
Professional Services Agreement Page 4 of 5
Investigative Services-Tif Analysis Form LHB V2.0 04/2022
VI. COMPENSATION
We propose to provide services on an hourly basis with the following key staff:
Project Principal, Michael Fischer $290/hour
Project Manager $185/hour
Project Architect/Inspector $165/hour
Project Coordinator $ 125/hour
Compensation shall be on an hourly basis, not to exceed Seventeen Thousand Four Hundred Dollars ($17,400),
including reimbursable expenses, for the inspection of up to seven properties and one Final TIF Report.
If the redevelopment strategy requires a two-phased redevelopment with two TIF Districts, an additional hourly fee,
not to exceed Three Thousand Two Hundred Dollars ($3,200) will be necessary to prepare the second TIF report.
VII. PAYMENT TERMS
Payments are due and payable upon receipt of our invoice. Unpaid balances 60-days after invoice date shall bear
interest at the rate of 8% per annum or 0.67% per month on the unpaid balance.
Failure to make timely payment to LHB is a material breach of this Agreement and may, at LHB’s sole discretion,
result in a suspension or termination of services, and may, at LHB’s sole discretion, result in the termination of the
Client’s limited license authorization to use LHB’s copyrighted Instruments of Service.
VIII. ADDITIONAL SERVICES
If there is a material change in the circumstances or conditions that affect the scope of work, schedule, allocation
of risks or other material terms, LHB shall notify Client. Client and LHB shall promptly and in good faith enter into
negotiation to address the changed conditions including equitable adjustment to compensation. The fees and costs
for any additional services will be based upon LHB’s 2024 Standard Hourly Rate Schedule and 2024 Reimbursable
Expenses Schedule.
IX. SCHEDULE
LHB can proceed to start the Work upon receipt of a signed copy of this Agreement.
The final report typically requires 30 to 45 days to complete from the time we are authorized to start. We can make
preliminary conclusions prior to our full report being completed, if necessary, to allow other consultants and the
client to begin their work.
X. CONSEQUENTIAL DAMAGES
LHB and Client waive consequential damages for claims, disputes or other matters in question arising out of, or
relating to, this Agreement.
BLOCK 34 TIF ANALYSIS PAGE 5
CITY OF MONTICELLO
Professional Services Agreement Page 5 of 5
Investigative Services-Tif Analysis Form LHB V2.0 04/2022
XI. LIMITATION OF LIABILITY
To the maximum extent permitted by law, Client agrees to limit LHB’s liability for Client’s damages to the sum of
Ten Thousand Dollars ($10,000) or LHBs fee, whichever is greater. This limitation shall apply regardless of the
cause of action or legal theory pled or asserted.
XII. USE OF LHB’S DOCUMENTS
The documents prepared by LHB, including Documents in electronic format, are solely for use with respect to this
Project. All Documents prepared or furnished by LHB pursuant to this Agreement are the Instruments of Service to
the Project and LHB shall retain all common law, statutory and other reserved rights, including copyright. LHB grants
to Client a nonexclusive limited license solely for the purposes of evaluating and executing the Project. Client shall
not assign, delegate, sublicense, or otherwise transfer any license granted herein to another party.
To the extent the documents are transferred or are modified, supplemented or otherwise altered by Client,
subsequent design professional, or any other party, Client agrees to indemnify, defend and hold LHB harmless for
any claims, demands, damages or causes of action arising out of such transfer or modification, supplementation or
alteration.
XIII. OTHER CONDITIONS
The laws of the State of Minnesota shall govern this Agreement. Any provision of this agreement later held to violate
a law or regulation shall be deemed void. All remaining provisions shall continue in force.
Client recognizes that materials prepared by others may be subject to copyright protection and warrants to LHB
that any documents provided by Client do not infringe upon the copyright held by another.
Unless the parties mutually agree otherwise, the parties shall endeavor to settle disputes by mediation. A demand
for mediation shall be filed, in writing, within a reasonable period of time after a claim, dispute or other matter in
question has arisen.
LHB and the Client, acting through the Client’s legal representative, will, to the fullest reasonable extent, cooperate
and coordinate efforts in preparing necessary responses to any third-party challenges to the inspections. The Client
agrees to pay LHB its regular hourly rates spent as a result of a third-party legal challenge.
If the terms and conditions of this Agreement are acceptable, please sign and return a copy to LHB.
LHB, INC. CITY OF MONTICELLO
Signature Signature
Michael Fischer
Printed Name Printed Name
Its: Vice President Its:
Title Title
c:\users\mafisch\documents\mike documents\lhb\tif\tif agreements\2025 agreements\monticello block 34 tif analysis 02-03-25.docx
Wright County, MN
Block 34 Created by: City of Monticello
Overview
EDA Agenda: 02/12/2025
6C. Consideration of Authorizing Rights of Entry for LHB Inc. and WSB & Associates related
to TIF Qualification Inspections and Environmental Investigations in Block 34
Prepared by:
Economic Development Manager
Meeting Date:
02/12/2025
☐ Regular Agenda Item
☒ Consent Agenda Item
Reviewed by:
Community & Economic Development
Coordinator
Approved by:
Community Development Director
ACTION REQUESTED
Motion to authorize Rights of Entry to LHB Inc. and WSB & Associates and/or its subcontractors
(boring equipment firm) into an onto EDA and City owned properties in Block 34 for the
purpose of completing TIF qualification inspections and environmental investigations in
connection with a potential future Tax Increment Financing District.
REFERENCE AND BACKGROUND
The EDA is asked to approve Rights of Entry to EDA and City owned Block 34 properties for the
purpose of completing TIF qualification inspections and environmental investigations in
connection with a potential future Tax Increment Financing District in Block 34. The Rights of
Entry are for LHB Inc. and WSB & Associates and their subcontractors. If the EDA approves the
recommended action in items 6A. and 6B. which consists of activities involving TIF qualification
inspections as well as environmental investigations, then both of those firms will want to begin
their separate work tasks in mid-February. By authorizing the Rights of Entry for both LHB Inc
and WSB & Associates, it will expedite the process and potentially allow review of their
findings at the March or April 2025 EDA meetings.
I. Budget Impact: The immediate cost attributed to the EDA connected to the proposed
Rights of Entry is minimal.
II. Staff Workload Impact: City staff workload related to the proposed Rights of Entry is
modest. Staff involved in the Rights of Entry consist of Community Development
Director and the Economic Development Manager.
III. Comprehensive Plan Impact: N/A
STAFF RECOMMENDATION
City staff recommend 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.
EDA Agenda: 02/12/2025
Authorizing the Rights of Entry at this time will allow necessary pre-development work tasks to
be completed in a timely manner with the potential for EDA review of the findings from both of
these consultants available at the March or April 2025 meeting.
SUPPORTING DATA
• Right of Entry – LHB Inc.
• Right of Entry - WSB & Associates
Page 1 of 2
RIGHT OF ENTRY
The City of Monticello Economic Development Authority, hereinafter called "EDA"; does
hereby consent and grant to LHB Inc, hereinafter called the “Licensee”, and its agents a license to enter only, for the purpose of performing TIF Qualification Blight Substandard Inspections in connection with completing TIF District Analysis related to potential establishment of a Redevelopment TIF District and across the following described lands situated in the County of
Wright, State of Minnesota, to-wit:
Block 34 EDA Owned Properties, including buildings noted below:
112 Broadway East – EDA Owned; PID 155010034130
118 Broadway East – EDA Owned; PID 155010034120
130 Broadway East – EDA Owned; PID 155010034102
216 Pine Street – EDA Owned; PID 155010034010
119 – 3rd Street East – City Owned; PID 155010034040
This right to enter shall commence on February 13, 2025, and terminate on June 15, 2025.
Licensee shall accept the Premises in “as is” condition and upon the termination of this agreement shall surrender the Premises in substantially the same condition in which it was at the beginning of the occupancy.
Licensee or its agents shall perform all activities on the Premises authorized under this
licensein a safe and professional manner.
Licensee shall indemnify, defend, save, and hold harmless the City and the EDA, its officers and employees from all claims, expenses, losses or liabilities in connection with Licensee’s use of the Premises or because of any claims or liability arising from any violation of any law or regulation made in accordance with the law, whether by Licensee or any of its agents or employees.
This Agreement is binding upon the parties, their successors in title or interest, assignees,
and heirs. Licensee shall not assign any of its rights or responsibilities hereunder without first obtaining the written consent of the Owner.
The license granted by this Agreement is a mere license to use the Premises for the specified purposes as set forth herein and does not create any estate or interest in the Premises.
Page 2 of 2
(LICENSEE NAME)
By _____________________________________
Its _____________________________________ STATE OF MINNESOTA )
) ss.
COUNTY OF WRIGHT) The foregoing instrument was acknowledged before me this ________ day of
______________, 2025, by ___________________, the _________________ of _______________, a Minnesota limited liability corporation, on its behalf. __________________________________________
Notary Public
CITY OF MONTICELLO
By _____________________________________ Jim Thares Economic Dev. Manager/Executive Director, EDA
STATE OF MINNESOTA ) ) ss. COUNTY OFWRIGHT )
The foregoing instrument was acknowledged before me this ________ day of
______________, 2025, by Jim Thares, the City of Monticello, Economic Development Manager and Executive Director of the EDA, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council and Economic Development Authority.
________________________________________ Notary Public This instrument was drafted by:
City of Monticello
505 Walnut Street, Suite 1 Monticello, MN 55362
Page 1 of 2
RIGHT OF ENTRY
The City of Monticello Economic Development Authority, hereinafter called "EDA"; does
hereby consent and grant to LHB Inc, hereinafter called the “Licensee”, and its agents a license to enter only, for the purpose of performing TIF Qualification Blight Substandard Inspections in connection with completing TIF District Analysis related to potential establishment of a Redevelopment TIF District and across the following described lands situated in the County of
Wright, State of Minnesota, to-wit:
Block 34 EDA Owned Properties, including buildings noted below:
216 Pine Streeet – EDA Owned; PID 155010034010
Parking lot of 119 – 3rd Street East – City Owned; PID 155010034020
This right to enter shall commence on February 13, 2025, and terminate on June 15, 2025.
Licensee shall accept the Premises in “as is” condition and upon the termination of this agreement shall surrender the Premises in substantially the same condition in which it was at the beginning of the occupancy.
Licensee or its agents shall perform all activities on the Premises authorized under this
licensein a safe and professional manner.
Licensee shall indemnify, defend, save, and hold harmless the City and the EDA, its officers and employees from all claims, expenses, losses or liabilities in connection with Licensee’s use of the Premises or because of any claims or liability arising from any violation of any law or regulation
made in accordance with the law, whether by Licensee or any of its agents or employees.
This Agreement is binding upon the parties, their successors in title or interest, assignees, and heirs. Licensee shall not assign any of its rights or responsibilities hereunder without first obtaining the written consent of the Owner.
The license granted by this Agreement is a mere license to use the Premises for the
specified purposes as set forth herein and does not create any estate or interest in the Premises.
(LICENSEE NAME)
Page 2 of 2
By _____________________________________
Its _____________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF WRIGHT)
The foregoing instrument was acknowledged before me this ________ day of ______________, 2025, by ___________________, the _________________ of
_______________, a Minnesota limited liability corporation, on its behalf.
__________________________________________ Notary Public
CITY OF MONTICELLO By _____________________________________
Jim Thares
Economic Dev. Manager/Executive Director, EDA STATE OF MINNESOTA )
) ss.
COUNTY OFWRIGHT ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2025, by Jim Thares, the City of Monticello, Economic Development
Manager and Executive Director of the EDA, a Minnesota municipal corporation, on behalf of
the corporation and pursuant to the authority granted by its City Council and Economic Development Authority. ________________________________________
Notary Public
This instrument was drafted by: City of Monticello 505 Walnut Street, Suite 1
Monticello, MN 55362
EDA Agenda: 02/12/2025
6D. Consideration Authorizing a Loan Subordination Agreement between the EDA and
First Dakota National Bank in connection with the EDA GMEF Loan to RRG Holdings,
LLC (Good Day Car Wash Car) and a proposed refinancing of primary lender mortgage
debt against the real property at 1301 Cedar Street
Prepared by:
Economic Development Manager
Meeting Date:
02/12/2025
☒ Regular Agenda Item
☐ Consent Agenda Item
Reviewed by:
Community & Economic Development
Coordinator
Approved by:
Community Development Director
ACTION REQUESTED
Motion to authorize a Loan Subordination Agreement between the EDA and First Dakota
National Bank in connection with the EDA GMEF Loan to RRG Holdings, LLC (Good Day Car
Wash Car) due to a proposed refinancing of primary lender mortgage debt against the real
property at 1301 Cedar Street
REFERENCE AND BACKGROUND
The EDA is asked to consider authorizing a loan subordination agreement between it and First
Dakota National Bank, Sioux Falls, SD, allowing the Bank to place a refinance first mortgage lien
against the car wash operator’s real property owned by RRG Holdings, LLC located at 1301
Cedar Street. The loan subordination will allow a proposed refinancing of the mortgage debt
against the car wash property to occur. A summary letter of the proposed subordination in the
context of the history of financing as well as the proposed refinancing activity is attached to this
staff report.
Currently, the EDA is in a second mortgage lien position against the real property. The property
has a real estate value of $4,360,000 as well as FF&E value of $1,060,000 with a total “As Is
Going Concern Value” of $9,750,000. The property has a superior physical location versus other
car wash operators in terms of visibility and accessibility.
Though City staff did not complete an in-depth analysis of the cash flow of the car wash
operations, the following points should be noted as the EDA considers the subordination
request. The borrowing entity has a positive loan payment track record, and the car wash
ownership group has a very strong financial standing as indicated in the individual Personal
Financial Statements (PFS). Even with a relatively low risk status for this GMEF Loan which
originated in September 2021, it remains the EDA’s option and/or preference as to
subordinating its debt (loan balance of $102,092.66) or request a payoff. It should be noted
EDA Agenda: 02/12/2025
that the individuals involved in the ownership group have all signed Personal Guarantee
documents along with the RRG Holdings, LLC mortgage against the property as collateral.
If the EDA approves the subordination, the GMEF loan would be a junior lien against the real
property and subordinate to the new first mortgage financing provided by First Dakota National
Bank and totaling $6,289,000. A snapshot of the proposed LTV ratio is shown below.
Proposed total mortgage debt = $6,412,000
Proposed LTAIGCV ratio = 65.5 percent
I. Budget Impact: The immediate cost attributed to the EDA connected to the proposed
Interfund loan resolution is estimated to be about $635.00 +/. This cost is related to
EDA attorney services reviewing the proposed subordination document and providing
guidance to City staff.
II. Staff Workload Impact: City staff workload related to the proposed loan subordination
request is modest. Staff involved in the review activities of the loan subordination
request consists of the Community Development Director and Economic Development
Manager. Consultants involved include the EDA attorney.
III. Comprehensive Plan Impact: N/A
STAFF RECOMMENDATION
City staff recommend approval of loan subordination request. As noted above, the EDA can
choose to ask the borrower to pay off the existing loan balance of $102,092.66 if it would
prefer not subordinate to the proposed new mortgage financing. Loan is expected to be fully
paid off on April 1, 2032.
SUPPORTING DATA
a. First Dakota National Bank Summary Letter
b. Proposed Loan Subordination Agreement
EDA Agenda: 2/12/2025
7. Economic Development Manager’s Report
Prepared by:
Economic Development Manager
Meeting Date:
2/12/2025
☒ Other Business
Reviewed by:
N/A
Approved by:
N/A
REFERENCE AND BACKGROUND
1. Training for Chair and Vice-Chair
The City Clerk will review basic procedures with these offices. Possible meeting dates are
2/25, 2/26, or 2/27. Please provide your preference of dates for this meeting to either Jim
Thares or Vicki Leerhoff.
2. Resignation of Attorney Gina Fiorini
EDA Attorney Gina Fiorini has resigned from Kennedy & Graven. She is transitioning to a
new law firm in Minneapolis. The new firm is Kutak Rock, which has extensive experience in
municipal bond issuances as well as several attorneys with economic development and TIF
financing experience. City staff have indicated that as we work through the current
completion of several development projects, it makes sense to transfer those files so that
she can continue to work on them in her role at Kutak Rock. For the longer-term horizon,
staff will defer to the EDA as to an interest in interviewing Gina (Kutak Rock) as well as
attorneys at several other firms to see which firm offers the best fit, pricing schedule, and
experience in meeting the EDA’s legal needs which includes various financial assistance
programs as well as real estate purchases and sales and potential tenant relocation matters.
3. EDAM (Economic Development Association of MN) Block 52 Development Project of the
Year Award Video (See it on youtube – right here)
4. Prospect List – Please see Exhibit A.
5. Initiative Foundation Thank You Letter – 2025 Funding Contribution for Community and
Economic Development. Please see Exhibit B
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 02/07/2025
Date of
Contact
Company Name Business Category Project Description Building‐Facility Retained Jobs New Jobs Total Investment Project Status
PROSPECT LIST 02/07/2025
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
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