EDA Agenda - 04/09/2025 (Workshop)AGENDA
WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 9, 2025 – 4:30 p.m.
Academy 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. Call to Order
2. Roll Call
3. 4:45 p.m. Discussion – Pre-Application Review – Façade Improvement Forgivable
Loan Application – Nordic Restaurant and Taphouse (106 Walnut Street)
4. 5:30 p.m. Discussion – UMC – MN-DEED MIF Grant $150,00 Clawback
5. Adjournment
OFFICE: 763-295-2711 FAX: 763-295-4404
505 Walnut Street Suite 1 Monticello, MN 55362
MEMORANDUM
To: City of Monticello Economic Development Authority
From: Jim Thares, Economic Development Manager
Date: 04/09/2025
Subject: Concept Review for Façade Loan Application | 106 Walnut
Introduction:
The City has received a complete Façade Improvement Forgivable Loan application from Nordic
Taphouse, located at 106 Walnut.
Zach Barthel, owner of The Nordic Brewing Co LLC DBA Nordic Tap House, submitted
improvement plans and quotes from contractors related to a proposal consisting of exterior
improvements, including:
• Signage
o Note: signage is shown in a rendering that is classified as roof signage, and this is
a prohibited sign in the zoning code
• Stucco Repairs
• Exterior Painting
Application Materials:
Materials submitted for EDA review of the pre-application include the following:
✓ A completed application with a summary of the proposal
✓ Improvement project quotes (two quotes as required by the program policy were
submitted; the best desired quote consistent with policy is included in the packet )
✓ Property and ownership information
Materials that will need to be submitted for EDA review of the proposal include the following
should the project move beyond a pre-application review:
✓ Affidavit regarding owner financial commitment (equity)
EDA MEMO: Concept Review for Façade Loan Application | 106 Walnut 04/09/2025
2
STAFF RECOMMENDATION
Mr. Barthel, owner of Nordic, has entered into a contract for deed for the property which was
formerly Frank & Bessie’s Antique Store. The seller of the property is Linda Yonak, representing
the Keith Kjellberg estate. The CFD agreement anticipates a full payoff and title transfer to
Nordic in early February 2026. Ms. Yonak has signed the application and will need to be a co-
signatory on the loan agreement. The property sale price was pre-determined well before the
submittal of the Façade Loan application. Staff are asking for a letter from the title holder
indicating that the agreed to sale price did not anticipate the receipt of a façade loan award.
The proposed façade improvements will be a significant improvement to the Block 52 property.
Currently, the building is a plain gray color with a dated stucco finish. As per the quotes, the
actual façade work is extensive as the building has considerable deferred maintenance. The
impact from a complete façade upgrade at this property will be a noticeable improvement.
The proposed relocation of Nordic to Block 52 is likely to draw much more traffic to this area of
downtown. Nordic has developed a loyal following of patron s related to its music events and
special activities.
It should be noted that a soft mortgage could be placed on the property as well to ensure that
the ownership of both parties does not change prior to the required three -year ownership
term. Staff will also monitor the ownership status of the property on an annual basis
throughout the duration of the three-year forgivable loan period.
Staff recommend that the EDA move forward with the development of a Downtown Façade
Improvement Program Forgivable Loan for the Nordic Tap House in the amount of $100,000.00.
The total project cost is estimated to be approximately $111,725. Additional related work,
though not eligible, raises the exterior renovation activities to approximately $214,525.
Project Budget:
▪ Eligible Façade Improvements - $111,725.00
o Exterior Painting - $35,031
o Stucco Repair - $30,566.80
o Signage - $46,127.20
▪ Building Permit - $2,998.55 (Estimate by City staff)
▪ Total Improvement Project Cost: $114,723.55
▪ The Nordic Brewing Co LLC DBA Nordic Tap House is required to contribute a minimum
5% match which totals $5,000. The Nordic Brewing Co LLC DBA Nordic Tap House has
indicated they will meet this requirement in cash payment to the contractor , and the
submitted quotes demonstrate that Nordic’s investment in the façade improvements
will exceed that amount. Nordic Brewing Co LLC DBA Nordic Tap House will be required
EDA MEMO: Concept Review for Façade Loan Application | 106 Walnut 04/09/2025
3
to make the initial payment, with proof of such payment to the EDA, prior to release of
EDA funds.
Budget Impact
The Façade Loan sub-fund currently has $132,490.07 available. Recent drawdowns from the
façade program include Monticello Family Dentistry and J&L Murray Dance Studio. Each façade
recipient additionally receives a historic sign with an estimated cost of $820.
Comprehensive Plan:
The Monticello 2040 Vision + Plan identifies the Downtown as a “development focus” area with
the intent of promoting investment and redevelopment of key properties and parcels in the
City’s core area. The subject parcel, 106 Walnut, is described in The Downtown Small Area Plan’
goal of “shifting the Center of Downtown to Broadway and Walnut Street” and this project is in
support of that goal. This block is also a critical connection between the continued public
investment in a renewed West Bridge Park and Broadway Street businesses. This street has
received additional public improvements including, but not limited to, improved lighting,
landscaping, decorative concrete and future swinging benches . By using its available tools such
as the Façade Loan Program to assist in property investment, the EDA is helping to facilitate the
effort to realize Comprehensive Plan goal “A vibrant and thriving Downtown that contributes to
the City’s economic development and housing objectives” (Chapter 5, 2040 Plan).
Attachments:
A. Façade Loan Application & Narrative
B. Existing Conditions Photos
1. Front Exterior 1
2. Front Exterior 2
3. Rear Wall
4. South Wall 1
5. South Wall 2
6. South Wall 3
7. South Wall Signage
C. Selected Contractor Project Quotes
D. Renderings
1. Walnut Entrance
2. North Wall
3. East Wall
E. Aerial Photo
F. Beacon Property Report
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
Y WD U 11/6/1996 I-
Improved
SPRINGBORG JOHNSON $35,000 $35,000 55887 I 16-
SPLIT
OR M
55887
Y WD U 6/30/1986 I-
Improved
JOHNSON JOHNSON $24,500 $24,500 55513 I 01-OLD
SALE
55513
N WD U 3/7/1979 I-
Improved
KJELLBERG
KEITH
KJELLBERG
MARTY
$25,000 $25,000 114244 I 14-
CFD/INT
PA
114244
There are other parcels involved in one or more of the above sales:
2024 Assessment 2023 Assessment 2022 Assessment 2021 Assessment 2020 Assessment
+Estimated Land Value $147,000 $83,300 $62,000 $60,200 $60,200
+Estimated Building Value $82,300 $82,300 $73,800 $69,800 $67,300
+Estimated Machinery Value $0 $0 $0 $0 $0
=Total Estimated Market Value $229,300 $165,600 $135,800 $130,000 $127,500
%Change 38.47%21.94%4.46%1.96%2.00%
2024 Payable 2023 Payable 2022 Payable 2021 Payable
Estimated Market Value $165,600 $135,800 $130,000 $127,500
-Excluded Value $0 $0 $0 $0
-Homestead Exclusion $0 $0 $0 $0
=Taxable Market Value $165,600 $135,800 $130,000 $127,500
Net Taxes Due $2,512.00 $2,028.00 $2,286.00 $2,232.00
+Special Assessments $0.00 $0.00 $0.00 $0.00
=Total Taxes Due $2,512.00 $2,028.00 $2,286.00 $2,232.00
%Change 23.87%-11.29%2.42%1.45%
Summary
Parcel ID 155010052130
Property
Address
106 WALNUT ST
MONTICELLO MN 55362
Sec/Twp/Rng 11-121-025
Brief Tax
Description
SECT-11 TWP-121 RANGE-025 ORIGINAL PLAT MONTICELLO
LOT-013 BLOCK-052 S65FT OF LOTS 13,14&15 BLK 52 &N57FT
OF LOTS 1&2 EX S22FT EX E46FT OF S65FT OF LT 13 EX PRT TO
VILL(052132) EX TR DES ON DOC630249(052131)
(Note: Not to be used on legal documents)
Class 233 - 3A COMMERCIAL LAND AND BUILDING
District (1101) CITY OF MONTICELLO-0882
School District 0882
(Note: Class refers to Assessor's Classi cation Used For Property Tax
Purposes)
Sales
Valuation
Taxation
Wright County, MN
Payment #Receipt #Receipt Print Date Amt Write Off Amt Charge Amt Payment
1118354 10/15/2024 $0.00 $0.00 ($1,256.00)
1055209 5/14/2024 $0.00 $0.00 ($1,256.00)
988947 10/17/2023 $0.00 $0.00 ($1,014.00)
859395 4/28/2023 $0.00 $0.00 ($1,014.00)
777538 1770443 5/13/2022 $0.00 $0.00 ($1,143.00)
775010 1766716 5/12/2022 $0.00 $0.00 ($1,143.00)
672976 1718347 9/27/2021 $0.00 $0.00 ($1,116.00)
621567 1686472 5/5/2021 $0.00 $0.00 ($1,116.00)
545045 1638824 8/10/2020 $0.00 $0.00 ($1,100.00)
521224 1613758 5/11/2020 $0.00 $0.00 ($1,100.00)
423272 1561715 8/26/2019 $0.00 $0.00 $0.00
414342 1546508 5/15/2019 $0.00 $0.00 $0.00
Taxes Paid
Sketches
Map
The information provided on this site is intended for reference purposes only. The information is
not suitable for legal, engineering, or surveying purposes. Wright County does not guarantee the
accuracy of the information contained herein.
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Last Data Upload: 3/18/2025, 8:48:08 AM
Contact Us Developed by
City Policy and
Procedure
SECTION: FINANCE NO: FIN-
REFERENCE: Date:
Next Review Date:
TITLE: FAÇADE IMPROVEMENT PROGRAM
1.0 Purpose
The City of Monticello Economic Development Authority (the “EDA”) recognizes the need to encourage
investment in commercial and retail buildings in the Downtown area in order to maintain the economic
viability of the City and the Downtown/Central Community District. The purpose of this forgivable loan
program is to support a visually and financially appealing Downtown and greater Monticello
community by providing forgivable loans to improve the façades of existing Downtown commercial
and retail buildings.
2.0 Policy
ELIGIBLE BUSINESSES
Commercial property located within the geographic area illustrated in Exhibit A of these guidelines may
be eligible for a Downtown Façade Improvement Forgivable Loan (“ Loan”) as further defined herein. The
area illustrated in Exhibit A of these guidelines is amended to include the buildings to remain on Block 52
following redevelopment, as well as those buildings along Walnut Street, between Broadway Street West
and River Street. It is the goal of the EDA that 70% of the buildings within the eligible area complete
improvements to their properties.
The EDA has allocated a maximum of $200,000 for the initial Loan program. This is a pilot program, and
additional areas and allocations will be considered at a future date.
FORGIVABLE LOAN FUND TERMS & CONDITIONS
Loan Amount & Structure
Individual loans may be made in an amount ranging from $5,000-$50,000. Loan forgiveness generally
takes place over a three-year period with fifty percent (50%) of the award forgiven at the end of the first
year, and twenty-five percent (25%) forgiven at the end of years two and three. The EDA may extend or
reduce the forgiveness period based on the dollar amount of the Loan. If the benefitting building is sold
within the period of the Loan, the Loan must be repaid. The Applicant must provide at least 5% of the
project cost in cash. The Applicant percentage shall be used as the project down-payment, as may be
required.
Eligibility Requirements
Tenants and property owners should discuss the loan program to determine responsibilities and
commitment for application and its components. The owner of the property must be a cosignatory to the
application and Loan agreement.
The property owner must carry current property insurance both at the time of application and through
completion of approved Loan improvements.
Property taxes on the subject site must be current for the duration of the Loan.
MN190\101\941811.v1
Applicants are not eligible to receive funding if the property to be rehabilitated is in default under a
property mortgage, contract for deed or comparable obligation. An applicant/property owner is ineligible
to receive assistance if currently involved in bankruptcy proceedings.
Applicants may apply for only one Loan per building.
The EDA reserves the right to approve or reject applications on a case-by-case basis, taking into
consideration factors considered appropriate by the EDA, in addition to established polices, criteria, and
potential benefits. Meeting the criteria does not guarantee an application will be approved. Approval or
denial of an application is at the sole discretion of the EDA.
Concurrent Loans
The concurrent use of different EDA loan programs by any one borrower or for any one project is
permitted. Business subsidy agreements may be required.
Permitted Loan Uses
Exterior renovation of the façades of principal use retail or commercial buildings as further shown on
Exhibit B attached hereto. An applicant may apply for façade improvements on all exterior sides of their
building. The EDA may approve a Loan for improvements for all or some of the sides of the building at
their discretion.
An architectural rendering supplied by one of the following is required: an EDA selected architect,
applicant contractor or architect, or a qualified architect accepted by the EDA. This item is required for
use in determining final scope of work in consultation with the applicant and the applicant’s selected
contractor for any project. The cost of the rendering shall not be included in the Loan amount.
Architectural renderings will be considered for preparation after initial letter of interest by an applicant.
Façade renovation may include, but is not limited to windows, doors, siding, brick, stucco, masonry,
painting, steps, cornices, parapets, shutters, dormers, signage, awnings, and structural roof components
and such improvements shall be guided by the architectural rendering.
Interior side renovation proposals may be considered on a case-by-case basis.
The applicant will work with a contractor to define final selected improvements using the architectural
rendering as a guide. The architectural rendering with final selected improvements must be reviewed and
approved by the EDA and will be included in final Loan documentation. The improvements must be
completed in substantial conformity to the approved architectural rendering.
The cost of the building permit for the approved Loan project will be included in the final Loan amount.
CONSTRUCTION AND IMPROVEMENTS CODE COMPLIANCE
As applicable, buildings for which public funds will be used within this program are to be brought into
conformity with city ordinances and state building codes in effect for the area in which the building is
located. It is the intent of the Downtown Façade Improvement Loan Program to comply with the City’s
building standards for the Downtown/Central Community District (CCD). Please refer to the City’s
Downtown Small Area Plan and zoning ordinance for complete details as it relates to the standards
governing this program’s design guidelines.
TIMING OF PROJECT EXPENSES
MN190\101\941811.v1
No project may commence until the EDA has approved the Loan application and the Loan agreement. Any
costs incurred prior to execution of the Loan agreement are not eligible expenditures.
No building construction may commence until the required city permits are secured.
Loan disbursements shall be as provided for within the Loan agreement and shall be made directly to the
Applicant/owner’s contractor. The Loan agreement shall reference final contracts for improvements.
COMMUNICATION
Success of the project depends on the completeness of applications and good communication between
all parties. Applicants should feel free to reach out to EDA staff with any questions at any time.
PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL
The applicant shall meet with city staff to obtain information about the Loan program, discuss the project,
and obtain application forms.
Prior to application, it is recommended that the applicant complete and submit a letter of interest to the
EDA. The letter of interest should provide a summary of desired façade improvements. As part of the
letter of interest review, the EDA may consider authorization of a façade rendering by the EDA’s
architectural consultant or may direct the applicant to proceed with a formal application including
preparation of rendering by their contractor(s)/architect. Once the applicant has obtained the rendering
and estimates, the applicant must submit a formal application to the EDA for review including the project
rendering and detailed estimates.
Applications will be received and reviewed on a first-come, first-served basis from the time of submission
of a complete application.
An inspection of the building may be required.
The EDA is a governmental entity and as such must provide public access to public data it receives. Data
deemed by Applicant to be nonpublic data under State law should be so designated or marked by
Applicant. See Minnesota Statutes, Section 13.591, Subd. 1 and 2. The formal Loan application will be
reviewed by EDA staff to determine if it conforms to all city policies and ordinances, and will be presented
to the EDA for formal approval, as follows:
1. Staff will complete a preliminary application review and may consult with the EDA’s Financial
Advisor and/or EDA Attorney in preparing a report for EDA consideration.
2. Staff will evaluate the project application in terms of the following:
a. Project Design - Evaluation of project design will include review of proposed activities,
project construction and renovation plans including architectural rendering and final
building elevations detailing selected improvements, timelines and capacity to implement
the project.
b. Financial Feasibility - Availability of funds, private investment, financial packaging and
cost effectiveness, and bid-quote submissions.
c. Evidence of applicant’s ability to meet the 5% cash requirements.
d. Letter of Commitment from other financing sources stating terms and conditions of their
participation in the project, if applicable.
e. All other information as required in the application and/or additional information as may
be requested by the EDA staff.
MN190\101\941811.v1
f. Project compliance with all applicable city codes and policies.
3. The EDA Commissioners will review each application in terms of:
a. Its consistency with the goals of the city’s Comprehensive Plan and Downtown Small Area
Study.
b. Whether it is desirable and in the best interests of the public to provide funding for the
project.
c. The project’s overall potential impact on the community’s economy.
4. The EDA Commissioners will approve or deny the application, or request a resubmission with
clarifications, at the EDA’s sole discretion.
APPROVAL OR DENIAL OF LOAN APPLICATION
The EDA, at its sole discretion, may deny any application on a case-by-case basis, taking into consideration
factors such as: consistency with the goals of the city’s Comprehensive Plan and Downtown Small Area
Study, the project’s overall impact on the community’s economy, and the above criteria.
LOAN POLICY REVIEW
The above criteria will be reviewed on an annual basis to ensure that the policies reflected in this
document are consistent with the economic development goals set forth by the city.
COMPLIANCE WITH BUSINESS SUBSIDY LAW
All developers/businesses receiving financial assistance from the City of Monticello EDA shall be subject
to the City’s Business Subsidy Policy as amended, and the provisions and requirements set forth under
Minnesota Statutes, Sections 116J.993 to 116J.995.
LOAN AGREEMENT
If the application for a Loan is approved, the applicant/property owner will be required to enter into a
Loan agreement to proceed. The Loan agreement will specify the terms and conditions of the Loan as
identified herein.
DISBURSEMENT OF LOAN FUNDS
Upon approval of a Loan application, applicants are required to provide executed contracts with qualified,
licensed contractors for work per the approved Loan plans. Contracts shall be consistent with the
procedures and requirements herein.
Loan funds will be disbursed to the contractor based on completion of work as outlined below. The City’s
Chief Building Official will verify completion of work. Upon verification of completion, payment will be
dispersed per contract amount for the work completed based on submitted invoice.
PROJECT CONTRACTOR PROCEDURES AND REQUIREMENTS
A. PARTICIPATING CONTRACTORS: All contractors participating in the Downtown Façade
Improvement Loan Program must have a contractor’s license on file with the Minnesota Department of
Labor and Industry. The contractors will be responsible for securing insurance of the amounts specified
on the application form. The application must contain proof of insurance coverage via a Certification of
Insurance Coverage, and the contractor's registration and license number and bond.
B. BID/QUOTE SOLICITATION: To participate in the Downtown Façade Improvement Loan Program,
the applicant must solicit bids or quotes from at least two vendors. An applicant is free to choose any
contractor, provided the license requirements are met and the cost differential in the quotes received
MN190\101\941811.v1
does not exceed 20%.
C. CONTRACTOR CONTRACT: The contract for work is between the property owner (applicant) and
the contractor. Each selected contractor will enter into a contract with the property owner. The contract
will outline the terms for completion of the rehabilitation on the project and will include the following:
1. Scope of Work
2. Project Start Date;
3. Project Completion Date;
4. General Conditions;
5. Building Elevations and Architectural Drawings;
6. Special Conditions;
7. Project Warranties;
8. Change Order Procedures;
9. Payment Terms;
10. Termination Procedures.
D. FAILURE TO START/COMPLETE PROJECT: Upon approval of the Loan agreement, the applicant
and selected contractor will have 180 calendar days in which to complete the contracted work. The 180-
day time period shall not be exceeded except through the issuance of a change order. Failure to complete
any work within 180 days will be grounds to terminate the Loan agreement.
E. PAYMENT PROCEDURES: All contractors will agree to the payment schedule, which is as follows:
1. Pre-payments for contracted services may be disbursed from an escrow account
established with the EDA’s specified agency. Such escrow account shall be administered
per the Loan agreement.
2. Lien waivers are required for all contractors and subcontractors before payment is made.
3. Final payment for work completed, including any retainage amounts, will be made after
work by a contractor is completed with verified receipts and costs incurred, the final
inspection has been conducted and the Chief Building Official, property owner, and
contractor have signed off on the work.
F. CHANGE ORDERS: Change orders to the approved Loan project require the approval of the EDA.
Change orders will be allowed only for the following reasons:
1. To rectify hidden deficiencies that are discovered once the work has begun.
2. To change a specification due to unforeseen difficulties arising after work has begun.
3. To address a deficiency that was inadvertently dropped from the project during project
packaging.
4. To change completion dates.
PROJECT COMPLETION
The City’s Chief Building Official will complete a final project inspection and issue a Certificate of
Completion verifying project completion per the approved Loan plans.
3.0 Scope
This policy applies to all projects that apply for and may receive assistance under the Façade Improvement
Program.
4.0
MN190\101\941811.v1
HISTORY
Approval Date: August 8, 2018 Approved by: EDA
Amendment Date: November 9, 2022 Approved by: EDA
Amendment Date: January 10, 2024 Approved by: EDA
MN190\101\941811.v1
EXHIBIT A
Geographic Program Limits
Downtown Facade Improvement Grant Program Eligibility Area
MN190\101\941811.v1
EXHIBIT B
Permitted Fund Uses – Visual Reference