EDA Meeting Minutes - 04/09/25 (Workshop)MINUTES
WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, April 9, 2025 — 4:30 p.m.
Academy Room, Monticello Community Center
Commissioners Present: President Steve Johnson, Treasurer Hali Sittig, Rick Barger, Lloyd
Hilgart, Tracy Hinz
Commissioners Absent: Vice President Jon Morphew
Staff Present: Executive Director Jim Thares, Angela Schumann, Tyler Bevier
1. Call to Order
President Steve Johnson called the workshop meeting of the Monticello Economic
Development Authority to order at 4:31 p.m.
2. Roll Call 6:00 p.m.
Mr. Johnson called the roll.
3. Discussion — Pre -Application Review — Facade Improvement Forgivable Loan Application —
Nordic Restaurant and Taphouse (106 Walnut Street)
Tyler Bevier provided an overview of the agenda item to the EDA, staff, and the applicants,
Zach and Mike Barthel, who were also in attendance. Jim reminded the EDA members that
discussion is regarding Facade Loan pre -application. Financing for this project is unique in
that the owner/buyer transaction is a Contract for Deed between Mr. Zach Barthel and
Linda Yonak acting on behalf of the Kjellberg family estate with intent to finalize and close
on the purchase in early 2026. The property transaction was negotiated and entered into
months before application for the fagade loan was received. The applicant expressed the
desire to build an attractive venue to draw people to the community and specifically to the
beautiful downtown location and to complement the new Block 52 project.
Councilmember Traci Hinz arrived to the meeting at 4:38 p.m.
Executive Director Jim Thares spoke of the proposed improvement cost estimates. He
noted that proposed improvements are for all four sides of the building. It was also noted
that letter signage placement will be applied to both north and east sides of the building.
The building was chosen because of its visible location amid downtown and proximity to fit
in with Block 52. History of the building was noted. It was built in 1952 by Mr. Kjellberg's
father. Jim further noted that the project has the potential to give a new look and energy to
downtown Monticello. Mr. Barthel indicated that he has a couple of sign quotes as well as a
quote from a reputable contractor, Red Letter. Information on the quotes is in the EDA
packet.
Rick Barger asked where the physical location of the depiction showing signage lettering
EDA Workshop Meeting Minutes 04/09/2025
was placed. Zach Barthel confirmed it to be on the northeast corner of the building.
Lloyd Hilgert inquired if the roof repairs qualify as part of the facade program. Angela
Schumann stated that of the other items, the applicant has more than enough qualifiers to
be eligible and reviewed the guidelines which included the rooftop. Lloyd Hilgert added the
railing itself adds aesthetics just as a window could. Angela Schumann indicated that it
enhances the roofline.
Zach Barthel said with Highway 25 and the location of the park looking up at the building,
the railing is a focal point. The rooftop patio is a key feature for Nordic. He also mentioned
that the color scheme using black is becoming more popular and referenced a building in
Albertville along the freeway as an example. He said the current drab grey color of the
Nordic building is a turnoff. The proposed building color was also selected to accommodate
a 3-D painted mural to be placed on the north side of the building, making the art piece pop
against the dark exterior.
Steve Johnson asked about the paint color selection and how it coordinates with the other
existing buildings. Zach Barthel noted that Bliss Salon is a black and white building.
Angela Schumann also noted that a rooftop patio brings variations to the roofline.
Lloyd Hilgert said the rooftop makes it an amenity and adds to the business attractiveness.
He referenced other establishments who have faired better by incorporating rooftop patios
for their patrons. He said that this rooftop would offer views of the river and West Bridge
Park and bring people to Monticello who may never have considered coming to the City.
Rick Barger noted that the updated Walnut Street looks very nice and will draw people to
that area. Mike Barthel said the color scheme draws attention. Steve Johnson asked if all
sides of the building were to be painted. Zach Barthel said that is correct and noted that the
old garage doors will be removed and replaced with wallboard and finished with stucco.
Rick Barger spoke on the nearby Block 52 apartments and of the intended lighting for the
rooftop patio. Zach Barthel said he plans to use simple patio -style string lights.
Steve Johnson asked if Nordic has considered an arts grant funding application. Zach
Barthel stated he has an active application for a mural on the north wall in the amount of
$20,000 for the MontiArts. If the application is denied, he intends to pay for the mural
expense out-of-pocket. Mike Barthel said the railings depicted are not the actual railings
that will be placed on the patio.
Zach Barthel said the signage is boxed lettering, and the logo is a cutout in the side of the
stucco. Hali Sittig stated that her business has channel letter signs and a boxed cabinet -style
sign and asked if the proposed was along the same idea.
Angela Schumann confirmed channel lettering is at the northeast near-roofline corner. Zach
EDA Workshop Meeting Minutes 04/09/2025 (DRAFT)
Barthel said the logo wolf image cutout might be illuminated with lighting above to shine
down on it and is working on the logistics. Steve Johnson asked about potential uplighting.
Angela Schumann stated that it is not allowed per the code. Hali Sittig added that channel
lighting may "leak out", causing light pollution. Angela Schumann agreed this is a valid point
for discussion regarding the future of the facade program.
Zach Barthel stated that he had a conceptual photo of the mural to share with the EDA
showing themed northern lights and using florescent paints. Steve Johnson asked if the
mural would be illuminated. Zach Barthel said it would not as the colors pop in daylight and
nighttime is not right lighting for mural photography.
Steve Johnson noted art would make it more than a black building and will create a unique
effect on the north side of the building. Zach Barthel has plans to meet with parks staff to
discuss a collaboration with MontiArts to host live music on Walnut Street as a community
outreach and network for festivities. Zach Barthel stated he is currently coordinating a
Monticello country music festival with Sue Seeger of MontiArts for 2027 with various food
vendors.
Steve Johnson asked about the warehouse -style windows located on the north side of the
building and amid the future mural's layout. Mike Barthel said the windows are
deteriorating and will be repaired to code for now. Zach Barthel said he would like to
preserve the historic glass, as it is an art piece.
Steve Johnson noted the complications related to the Contract for Deed and the recapture -
claw back loan provisions upon a title transfer. He said that it will have to be detailed as to
how that is handled in the loan agreement. Zach Barthel said he intends to close on the
building in January 2026. He shared that he refinanced his own home to pursue the
funding for much of the property improvements at Nordic.
Steve Johnson stated the conversations help to iron out any "fuzzy" information with intent
to protect the applicant against ownership clawback. Jim Thares said he would work with
the EDA attorney regarding the agreement verbiage. Lloyd Hilgert said the intent of the
verbiage is not insurmountable.
Zach Barthel said he is eager to complete the move into the new Nordic building and
anticipates his business sales will increase by 50% due to the higher visibility alone.
Steve Johnson asked the applicants if they have considered a business plan to consider
occupancy costs, revenue and overhead, and cashflow. Zach Barthel states his accountant
has the information.
Tracy Hinz said she felt that it was an honorable fagade proposal and said she would like to
see the EDA authorize a loan -grant totaling $111,000. She said it has been a privilege to
work with the applicant and it is touching to see his proposed vision focused on benefiting
the community.
EDA Workshop Meeting Minutes 04/09/2025
4. Discussion — UMC — MN -DEED MIF Grant $150,00 Clawback
Mr. Thares provided an overview of the agenda item to the EDA and spoke to the history of
the requirements of the MIF grant to UMC which is to create new FTE jobs through the
expansion. The grant performance timeline has ended and UMC appears to have not met
the goal of creating 43 new FTE jobs. The information submitted indicates that they created
20 new FTE jobs. They do have a ton of overtime hours for the current workforce so
perhaps that is how they are keeping up with their production levels. A future meeting is
planned for more discussion with MN -DEED and UMC staff with the goal of agreeing on
suitable acceptable close out processes. A claw back of the grant funding is a potential
outcome of the meeting. Jim estimated the claw back may be as much as $150,000 of the
original $300,000 grant award. Steve Johnson asked if it was possible to negotiate the claw
back amount. Jim Thares said he believed it is not though UMC would have up to 7 years to
pay the claw back total.
Hali Sittig stated that the applicant is probably aware that the job numbers were not
achieved. She feels that they will accept the outcome and move on from whatever MN-
DEED's final decision is.
5. Adiourn
The workshop concluded at 5:43 p.m.
Recorded By: Anne Mueller I-i
Date Approved: May 14, 2025
Ji Thares, EDA Executive Director