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EDA Meeting Minutes - 05/14/2025 (Workshop)MINUTES WORKSHOP MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, May 14, 2025 — 4:45 p.m. Academy Room, Monticello Community Center Commissioners Present: President Steve Johnson, Vice President Jon Morphew, Clint Berglof, Mayor Lloyd Hilgart, Councilmember Tracy Hinz Commissioners Absent: Treasurer Hali Sittig, Rick Barger Staff Present: Executive Director Jim Thares, Community Development Director Angela Schumann 1. Call to Order President Steve Johnson called the workshop meeting of the Monticello Economic Development Authority to order at 4:55 p.m. 2. Roll Call 4:55 p.m. Mr. Johnson called the roll. 3. Block 34 Preliminary Development Agreement Update -Discussion Executive Director Jim Thares provided an overview of the agenda item concerning the preliminary development agreement (PDA) with Kraus -Anderson (KA) Development Co. and the EDA for Block 34. He noted the language revisions regarding "Exclusive Developer" versus "Master Developer" and the role of KA for all tasks relating to land entitlement, site layout and development of the potential Christensen Group (CG) office building, though not the actual construction of the Christensen Group facility. He further referred to the concept meeting held earlier in the year and to the CG's desire to construct a 10,000 square foot one -level office building, though with rising overall costs, CG is further analyzing the merits of a new building (ownership or rental) versus renewing a lease at their current office in Monticello that provides additional space. Community Development Director Angela Schumann noted the preliminary nature of the agreement and its intent to offer flexibility to the EDA and the developer now. In short, it is an agreement to work towards a final development agreement that meets the needs of all parties involved. Steve Johnson said it is somewhat open-ended allowing the ability to build at the southwest corner of the block without questions to "if" or "when and pondered that it may serve as a Statement of Intent. All commissioners similarly view the document as needing to reflect the previous discussions with the parties involved as to the intent of allowing CG to decide if a new building is the best path for their situation or if not then KA can proceed with its own concept in sort of a carte blanche approach. EDA Workshop Meeting Minutes — 05/14/2025 Clint Berglof asked about the status of the current CG office and Jim Thares noted the location, and lease ending date of September 2026. Angela Schumann stated the preference by KA is to move in a methodical way forward, and factoring in the location of the wells on -site and the plans to potentially relocate the wells. She further noted that the City Council continues to discuss coordinating the relocation of the Block 34 wells with the opening of the new water treatment facility in 2028. Jim noted the 14-month timeline in the PDA; 12 months for due diligence with a 2-month extension. Lloyd Hilgart confirmed the well relocation timeline is best tied to the new water treatment plant Steve Johnson asked if the vacant 4t" Street NE property owned by the EDA would be a potential new site for the wells. Jim noted that initial studies indicate that the aquifer in this area may be adequate, pending further final studies. Angela Schumann agreed that is a strong possibility. She further reminded the Commissioners that the PDA will come back to the EDA once additional edits are completed. 4. EDA Land Holdings Review and Discussion Angela Schumann reminded the EDA of the property holdings workshop discussion held in November 2023 regarding prioritizing development timelines and what Commissioners envisioned for the best use of their land. She noted that this is an effort to reaffirm the EDA's thoughts and priorities on the various land sites. She stated that the comprehensive plan and the downtown small area plan were also contributing factors for the drafted overview pertaining to the feasibility work. The EDA priorities were also factored in along with concept development projects and potential timeframes toward completion. Jim Thares identified the parcels and solicited EDA comments about the various sites. River Street Mayor Hilgart said this lot has little value unless combined with the neighboring parcel or if used for parking spaces. Councilmember Tracy Hinz agreed to keep this item as a low priority as noted. 349 West Broadway (former Fred's Auto) Jim Thares stated the space is currently used for MontiArts as utility space and reported on the lease expiring in August. He noted the neighboring former post office building as larger potential redevelopment concept consideration. Steve Johnson suggested a daycare center might be a good prospect if demolishing the old post office and former Fred's occurs and noted the building to the east has "for rent" signs displayed. Mayor Hilgart noted the aged condition of the building. Tracy Hinz agreed that it is a low priority and that MontiArts should continue to utilize the former Fred's building. Block 36 Jim Thares said the EDA owns a small narrow parcel on the same block which is part of the z EDA Workshop Meeting Minutes — 05/14/2025 parking lot in the core of the Block and is covered through an easement. Beef O'Brady's customers and other businesses use this parking lot. The EDA contributes funding to the parking maintenance through the easement agreement. Tracy Hinz asked why the EDA purchased the parcel. Jim Thares said it was due to the potential for the greenspace and connecting the parking area to the street sidewalk; an initiative dating back to 2018. The lot is quite small, yet still buildable. Angela Schumann stated this parcel is within the CCD business district downtown and addressed scenarios in how the City might use the space with anticipation for growth and renewed downtown vitality while factoring development of the surrounding area. Mayor Hilgart noted the fees incurred by the City as being the only loss and suggested discussing with existing businesses to possibly offer the use of the space for outdoor seating. Steve Johnson suggested picnic tables supplied by the Rotary could be relocated to the site for community use or other landscaping means to make it accessible for walking. Tracy Hinz asked about food trucks selling on the lot. Angela Schumann noted the 500-foot setback distance from another restaurant, which would not allow the food trucks to be located here. Angela Schumann suggested that the EDA consider changing the priority of this project from low to medium or revisit it again in 6 to 12 months. Lloyd Hilgart said that the EDA should not be in a rush to sell the parcel though it should be used to benefit the downtown community. If someone came forward and wanted to build on the small lot, then we should allow them the opportunity to buy it then. Cedar Street Site Jim Thares stated this location is close to the Block 34 site. He described efforts with the developer that was encouraged to consider potential housing on the site in the fall of 2024. He also noted that with the site being in the core area of downtown it is an attractive site and may offer a range of potential concepts. Tracy Hinz said the site would be a great opportunity for the EDA to challenge themselves to envision how suitable affordable housing might be a creative approach and suggested multiple dwellings and accessory buildings. Steve Johnson envisioned row housing with access off Cedar Street with parking to the north and mentioned his office is in the building just east of the site and suggested collaborating with that property owner on access points or possibly acquisition of the adjacent properties to consolidate land area into a complete frontage redevelopment effort here. Mayor Hilgert noted other development options may work as well. If the EDA would EDA Workshop Meeting Minutes — 05/14/2025 continue to envision this as an affordable housing development, the EDA may want to consider if adequate space is available for garages and how the parking would work. Similarly, to Block 52, Ms. Schumann stated an RFP is possible, if desired. Steve Johnson noted that pedestrians and heavy traffic on Highway 25 are concerns related to Block 52 which will likely become more of a desirable location for downtown visitors. Lloyd Hilgert noted parking availability at the sliding hill and potential new parking in the downtown area. Angela Schumann stated the priority for this stie is likely high and suggested that the EDA determine what it would like to see developed at the site, so staff have full understanding when holding future discussions with potential developers. Staff will try to bring this site back to the EDA for more direction within the future 12 to 15 months. Tracy Hinz suggested to think creativity about affordable or senior housing outside of the traditional scope and spoke about how some cities use the Charles Marohn "Strong Towns" framework. Steve Johnson asked if active promotional marketing is occurring for this site. Jim Thares responded that it is listed on Costar. Steve further asked if the EDA should be advertising the sale of the site more proactively. Mayor Hilgert said the board should determine its vision before aggressive marketing. Mr. Angela Schuman said, in July as part of the EDA budget discussion, staff are hoping to have more marketing discussions with the EDA regarding various potential promotional campaigns. 4t" & Palm No changes — Commissioners agreed to leave the site as -is for potential municipal wells in the future. 71" Street West (former Riverwood Bank property) Jim Thares spoke on the 14.16 quality acres rated as a high priority and the recent closed meeting and the follow-on steps which will be back to the EDA later this summer for further guidance and direction. Otter Creek Business Park Jim Thares noted that Otter Creek Business Park (OCBP) has 53.49 usable acres (also includes 5 non -buildable acres). He noted recent inquiries related to a prospective developer. Angela Schumann added that staff are asking the developer to submit a proposal to review with the EDA. Lloyd Hilgert suggested another local entity may have an interest in one of the OCBP sites as well. Tracy Hinz recognized the efforts by Jim Thares and appreciates his efforts. 4 EDA Workshop Meeting Minutes — 05/14/2025 Steve Johnson indicated that a build -to -suit situation might make sense for the interested parties. 5. Adiournment TRACY HINZ MOVED TO ADJOURN THE WORKSHOP MEETING. CLINT BERGLOF SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY, 5-0. MEETING ADJOURNED AT 5:52 P.M. Recorder: Anne Mueller Ww Approved: June 11, 2025 Attest: Jim Thare , ED Executive Director 5