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IEDC Agenda - 08/05/2025AGENDA INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, August 5, 2025 7:00 a.m. at Monticello Community Center Members: Chairperson Jarred Merchant, Vice Chairperson Mike Huey, City Council Member Charlotte Gabler, Luke Dahlheimer, Aaron Holthaus, Liz Kokesh, Sarah Kortmansky, Sonja McElroy, Eric Olson, Joni Pawelk, Cory Ritter, Rob Stark, Darek Vetsch, Andrew Tapper, Tony Velishek, Shawn Hafen, Greg Schultz, Joe Elam Liaisons: City Administrator Rachel Leonard, Tyler Bevier, Missy Meidinger, Deb Meyer, Anne Mueller, Angela Schumann, Jim Thares, Dave Tombers, Tim Zipoy 1. General Business A. Call to Order B. Roll Call C. Approval of June 3, 2025, Regular Meeting Minutes D. Consideration of Additional Agenda Items 2. Regular Agenda A. Table Topic – 2025 Legislative Update – Darielle Dannen, Flaherty Hood, PA (Law Firm) B. CGMC Summer Conference - Legislative Overview – Reviewed by City Staff C. 2025 Manufacturers Breakfast Event (Oct 10, 2025) Planning and Information Update 3. Liaison Updates A. Wright County Economic Development Partnership (WCEDP) B. Chamber of Commerce C. Economic Development • Building Permit Update – Qtr. #2 • Sales Tax Collections Update – Qtr. #2 • BR&E Visits Update • Project Update • Prospect List • August 5, 2025, Planning Commission Agenda D. City Council Update 4. Next Meeting Reminder – Date: Tuesday, September 2, 2025 5. Adjournment (8:15 a.m.) MINUTES INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE (IEDC) Tuesday, June 3, 2025 7:00 a.m. at Monticello Community Center Members Present: Chairperson Jarred Merchant, Vice Chairperson Mike Huey, Luke Dahlheimer, Charlotte Gabler, Joe Elam, Sarah Kortmansky, Liz Kokesh, Sonja McElroy, Rob Stark, Andrew Tapper, Tony Velishek, Darek Vetsch Members Absent: Sean Hafen, Aaron Holthaus, Eric Olson, Joni Pawelk, Cory Ritter, Greg Schultz Liaisons: Economic Development Manager Jim Thares, City Administrator Rachel Leonard, Tyler Bevier, Deb Meyer, Anne Mueller Liaisons Absent: Missy Meidinger, Dave Tombers, Tim Zipoy 1. General Business A. Call to Order Chair Jarred Merchant called the regular meeting of the Monticello Industrial Economic Development Committee (IEDC) to order at 7:00 a.m. B. Roll Call Roll call was not taken at the meeting. C. Approval of Minutes DAREK VETSCH MOVED TO APPROVE THE MAY 6, 2025, REGULAR MEETING MINUTES. TONY VELISHEK SECONDED MOTION. MOTION CARRIED UNANIMOUSLY. D. Consideration of Additional Agenda Items None. 2. Regular Agenda A. Table Topic – Greater MSP Overview of Readiness Approach - Jim Thares Economic Development Manager Jim Thares spoke on a presentation provided by WCEDP and expanded on how the Request for Information (RFI) efforts are reviewed and submitted to MN-DEED and other site search solicitors by the City of Monticello. NO ACTION WAS TAKEN ON THE AGENDA ITEM. 3. Liaison Updates A. Wright County Economic Development Partnership (WCEDP) Rob Stark spoke in the absence of Missy Meidinger. He provided a brief recap of the increased workload and a newly hired assistant the WCEDP. Darek Vetsch, County Commissioner, District 2, also provided an overview of Wright County updates. IEDC Meeting Minutes – 06/03/2025 B. Chamber of Commerce Deb Meyer, Monticello Chamber of Commerce Executive Director, provided a brief overview of recent and upcoming Chamber events. C. Economic Development Mr. Thares presented updates on the following economic development activities. • BR&E Visits Update • Project Update • Prospect List • June 3, 2025, Planning Commission Agenda D. City Council Update City Administrator Rachel Leonard provided an update of the recent City Council activities and continuing construction and infrastructure projects. 4. Next Meeting Reminder – Date: Tuesday, August 5, 2025 5. Adjournment Meeting was adjourned by consensus at 8:07 a.m. Recorder: Anne Mueller ___ Approved: June 3, 2025 Attest _____________________________________ Jim Thares, Economic Development Manager Industrial Economic Development Agenda: 8/5/2025 2A. Table Topics – 2025 Legislative Update Prepared by: Administrative Assistant Meeting Date: 8/5/2025 ☒ Regular Agenda Item Reviewed by: N/A Approved by: Community Development Director REFERENCE AND BACKGROUND Darielle Dannen, Senior Attorney/Lobbyist, Flaherty Hood, PA will provide the 2025 Minnesota legislative update to the IEDC. Darielle is currently serving as the EDAM (Economic Development Association of Minnesota) legislative lobbyist. She is very familiar with economic development issues and policy, having worked previously at Minnesota DEED (Department of Employment and Economic Development) for several years as well. She is willing to respond to various economic development related questions that the IEDC members may have at the conclusion of her presentation which will be through a remote (Teams) link. SUPPORTING DATA: • N/A Industrial Economic Development Agenda: 8/5/2025 2B. CGMC Summer Conference - 2025 Legislative Update Prepared by: Economic Development Manager Meeting Date: 8/5/2025 ☒ Regular Agenda Item Reviewed by: N/A Approved by: Community Development Director REFERENCE AND BACKGROUND City staff attended the recent Coalition of Greater Minnesota Cities Conference in Bemidji. The 2025 legislative update that was provided to the Conference attendees is attached to provide the IEDC members with an overview of the various legislative issues and initiatives that are the focus of non-metro cities. SUPPORTING DATA: • CGMC Summer Conference – 2025 Legislative Summary Materials Industrial Economic Development Agenda: 8/5/2025 2C. 2025 Manufacturers Appreciation Breakfast Event Update Prepared by: Economic Development Manager Meeting Date: 8/5/2025 ☒ Regular Agenda Item Reviewed by: N/A Approved by: Community Development Director REFERENCE AND BACKGROUND The Manufacturers Appreciation Breakfast Event is scheduled for Friday, October 10, 2025. The event recognizes and honors the role and economic development impacts and contributions that manufacturers have on the local community. The breakfast event usually features a keynote speaker and has recently involved and highlighted the Monticello School District STEM (Science, Technology, Engineering and Math) program as well as the Career and Technical Education programs along with some of the students in those programs. Staff feel it is important to continue to highlight the student programs and/or achievements at this event. IEDC feedback and guidance during the August 5, 2025, meeting will help be very helpful in shaping additional specific details and components of the event. SUPPORTING DATA: • CGMC Summer Conference – 2025 Legislative Summary Materials IEDC Agenda 08/05/25 3C. Economic Development Updates Prepared by: Economic Development Director Meeting Date: 8/5/2025 ☒ Liaison Updates Reviewed by: N/A Approved by: N/A REFERENCE AND BACKGROUND The Economic Development Update includes an overview of various information by Jim Thares, Economic Development Manager. IEDC members are encouraged to ask questions as so inclined. Attachments include the Quarter 2, 2025 Building Permits Summary, the first ever Sales Tax Collections Update for Quarter 2, 2025 (the tax collections began April 1, 2025; funds were voter approved to support capital investments at the Bertram Chain of Lake Regional Park recreational facilities), BR&E visits updates, Project Updates and Projects-Prospects List. The Planning Commission Agenda for the August 5, 2025, meeting is also included. A. Building Permits Summary – Quarter # 2-2025 B. Sales Tax Collections Report – Quarter #2-2025 C. BR&E Visits D. Project Updates E. Prospect List F. Planning Commission Meeting Agenda – August 5, 2025 BUILDING PERMIT ACTIVITY AND VALUATION PERMIT TYPE 2024 1st Qtr Valuation YTD Valuation 2025 1st Qtr Valuation YTD Valuation Single Family 17 $4,433,995 17 $4,433,995 11 $3,100,261 11 $3,100,261 Multi-Family Townhomes 12 $1,200,000 12 $1,200,000 0 $0 0 $0 Commercial-Industrial New - Remodel - Addition 6 $327,200 6 $327,200 6 $923,615 6 $923,615 PERMIT TYPE 2024 2nd Qtr Valuation YTD Valuation 2025 2nd Qtr Valuation YTD Valuation Single Family 14 $3,894,720 31 $8,328,715 8 $2,197,766 19 $5,298,027 Multi-Family Townhomes 12 $1,200,000 24 $2,400,000 0 $0 0 $0 Comercial-Industrial New - Remodel - Addition 9 $1,507,400 15 $1,834,600 11 $5,358,825 17 $6,282,440 BUILDING PERMIT ACTIVITY AND VALUATION PERMIT TYPE 2024 3rd Qtr Valuation YTD Valuation 2025 3rd Qtr Valuation YTD Valuation Single Family 14 $3,232,288 45 $11,561,003 Multi-Family Townhomes 14 $1,400,000 38 $3,800,000 Comercial-Industrial New - Remodel - Addition 9 $3,348,000 24 $5,182,600 PERMIT TYPE 2024 4th Qtr Valuation YTD Valuation 2024-4th Qtr Valuation YTD Valuation Single Family 3 $689,151 48 $12,250,154 Multi-Family Townhomes 0 $0 38 $3,800,000 Comercial-Industrial New - Remodel - Addition 3 $379,750 27 $5,562,350 SALES TAX RECEIPTS Payment Date Revenue Month Gross Revenue Amount Start-up Costs (One-time only) Miscellaneous Deduction or Addition (See notes below) Administrative Cost Net Amount Paid 9/10/2024 July - 10/10/2024 August - 11/8/2024 September - 12/10/2024 October - 1/10/2025 November - 2/10/2025 December - 3/10/2025 January - 4/10/2025 February - 5/9/2025 March - 6/10/2025 April - 7/10/2025 May 175,249.36 (16,116.45) (1,577.24) 157,555.67 8/8/2025 June - TOTAL 175,249.36 (16,116.45) - (1,577.24) 157,555.67 Please note: This report contains current fiscal year information only. City of Monticello 8/1/2025 SERVPRO DATE OF VISIT: June 5, 2025 ABOUT THE BUSINESS Servpro provides services for water and fire damage, mold, storm, construction, commercial, speciality and general cleaning services, including HVAC cleaning, graffitti, carpet, upholstry, document restoration and more. WHAT WE LEARNED Servpro of Wright County occupies a ~38,000 sf warehouse and office, with a business mix of 75% residential and 25% commercial/public sector clients. Servpro, with 80+ employees, is an active community sponsor of events, including the school district and Let’s Chalk event. Servpro of Wright County is the largest in Minnesota and has completed work in seven states. As Servpro has experienced significant growth in the past few years, they may be considering additional sites, while keeping Monticello their main office, with much of their workforce as local employees. BUSINESS RETENTION & EXPANSION VISIT LOCATION: 1348 Dundas Rd., Monticello, MN 55362 CLASSIQUE JEWELRY DATE OF VISIT: June 11, 2025 ABOUT THE BUSINESS Classique Jewelry, currently Downtown, has been a local Monticello business since 2016. Services include jewelry sales and repair WHAT WE LEARNED The Broadway Street construction impacted the business significantly, with the customer base for the store primarily consisting of Monticello, Buffalo, and Big Lake residents. BUSINESS RETENTION & EXPANSION VISIT LOCATION: 141 W Broadway, Ste 1 Monticello, MN 55362 FARM & FLORAL MARKET DATE OF VISIT: June 18, 2025 ABOUT THE BUSINESS Located downtown, the Farm and Floral Market was started to continue to improve the fresh food and floral offerings in the greater Monticello community. WHAT WE LEARNED The market chose Monticello for the close proximity to their farm and the interstate. The owners wanted to bring the high-quality, farm-fresh food that is often found at local food cooperatives. In addition to the market, they have a seasonal food truck outside open on Thursdays. The owners are hoping to grow the market and food truck presence in the coming years to model a co-op and food hall concept. BUSINESS RETENTION & EXPANSION VISIT IEDC Agenda: 8/05/25 1 3C. Project Update Headwaters Villa Twin Homes: The 60-unit Phase 1 twin home rental housing development project for ages 55 + on 7th Street West is now complete and is leasing up. The 22-twin home unit Phase 2 project is progressing with infrastructure installed (streets and utilities) and permitting getting started on footing and foundations. The additional Phase 2 units are general occupancy rentals and again prefabricated (assembled in Albertville at the AVR facility) and will be completed by the end of 2025. The total number of rental units in phases 1 and 2 totals 82 with 33 units required (40 percent) to be rented by households of low- and moderate-income levels (60 percent of the AMI; Wright County). Big River Commercial Development - Chelsea Road: A Les Schwab Tire Center (15,136 sq. ft.) is under construction in the Big River Commercial Development near the Chipotle Restaurant along Chelsea Road. Chipotle opened its restaurant in this commercial development project near Fenning Avenue in late December 2024. A Starbucks coffee shop also recently opened for business as well. Valvoline Oil (2,673 sq. ft.) is also pursuing development of a pad ready site in the 10-acre development project. Fairfield By Marriott Hotel: Construction of the 98-room hotel development project is progressing. The Boulder Tap House Restaurant, which is an attached facility, is expected to be completed in late 2025 with construction of the hotel likely to wrap up early July 2026. The hotel will also have small conference rooms to accommodate meetings and events in its facilities. The cost of the entire project is approximately $21,500,000. A total of 45 to 50 jobs will be created through this development. The City and County both provided financial assistance through Tax Abatement. This was the City’s first use of this financial assistance tool in support of a non-infrastructure development project. The combined assistance from the City and County will total $742,655 over a 10-year time frame. Nordic Tap House and Restaurant: Nordic Tap House is expected to complete its move into the former Bessie Antique Store at 106 Walnut Street (near the Block 52 building and West Bridge Park) in mid-August. The façade improvements to the building were funded through the EDA’s Façade Improvement Forgivable Loan Program. EDA total Façade Loan approved by the EDA was $111,000. IEDC Agenda: 8/05/25 2 Discount Tire: A proposed Discount Tire sales and service store is working its way through the final review and permitting steps. This facility is proposed for a 2.04-acre parcel located at 1300 7th Street East. Wendy’s Restaurant: A building permit for a new Wendy’s Restaurant is currently under review. The location of the proposed 2,300 sq. ft. restaurant development is at 261 Highland Way. EDA Loan Applications: The EDA will be considering several loan applications for new development projects and property acquisitions in the coming months (90 days). The GMEF and SCDP Loan programs are intended to be utilized as a gap financing tool to support business growth and expansion and job creation. Recently Completed Multi-Family Rental Development Updates:  Savanna Vista MF Apartment Lease Up = 167 out of 200 now leased (16.5 percent vacancy) -opened August and November 2024 (two buildings at 100 units each)  Block 52 MF Apartment Lease Up = 100 percent occupied (87 units) – open 20 months ago  CHC Twin homes – Phase 1 Lease Up = 54 out of 60 units now leased – opened February 2024 (20 months). 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 27,000 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 On Hold 8/11/2022 Project Sing Precision Machining New Construction 400,000 sq. ft.0 500 $90,000,000 Active Search 5/30/2023 Project Flower-M & M Commercial Concept Expansion ????Concept 6/9/2023 Project Pez Mfg New Construction 30,000 to 35,000 sq. ft.12 7 $3,500,000 Active Search 8/16/2023 Project Lodge RT4 Lodging-Hopsitality New Construction 98 Room Hotel N/A 30 $21,500,000 Under Constr 2/12/2024 Project Lodge- MSMWDC Lodging-Hospitality New Construction ?0 10 $22,500,000 Identified Site 3/5/2024 Project Panda 20‐ MS Child Care Facility New Construction 27,100 sq. ft. 0 43 $5,500,000 Site Selected 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 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 52,500 sq. ft. 0 21 $16,500,000 Active Search 1/14/2025 Project Megawatt Industrial New Construction 650,000 to 1,300,000 sq. ft. 0 592 $757,000,000 Active Search 2/5/2025 Project Nordic Resturant-Taphouse Relocate ‐ Remodel‐4,300 sq. ft. 9 1 $1,090,000 Identified Site 4/15/2025 Project BB Food Service-Retail Renovation 6,000 sq. ft. 0 25 $2,500,000 Identifed Site 5/19/2025 Project 7030-B-O Industrial New Construction 70,000 sq. ft.0 30 $7,300,000 Site Search 6/11/2025 Project Black Sabil Industrial New Construction 1,000,000 sq. ft.8000 $960,000,000 Active Search 7/19/2025 MC Outdoors Industrial Service New Construction 8,200 sq. ft.0 14 $1,500,000 Site Selected 7/25/2025 Project BOM Service Retail Acquisition‐Renovation 3,000 sq. ft 0 6 $550,000 Site Selected Contacts: M= 03 YTD = 17 PROSPECT LIST 07/31/2025 AGENDA REGULAR MEETING – PLANNING COMMISSION August 5, 2025 – 6:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Chair Andrew Tapper, Vice-Chair Melissa Robeck, Rick Kothenbeutel, Teri Lehner, Rob Stark Council Liaison: Councilmember Kip Christianson Staff: Angela Schumann, Steve Grittman, Bob Ferguson, Tyler Bevier 1. General Business A. Call to Order B. Roll Call C. Consideration of Additional Agenda Items D. Approval of Agenda E. Approval of Meeting Minutes • Workshop Meeting Minutes – July 1, 2025 • Regular Meeting Minutes – July 1, 2025 F. Citizen Comment 2. Public Hearings A. Consideration of Preliminary and Final Plat for Spaeth Industrial Park Fourth Addition Applicant: Spaeth Development, LLC and Spaeth Properties, LLC B. Consideration of Amending the Monticello City Code, Title XV: Land Usage, Chapter 153: Zoning Ordinance, Section § 153.012 Definitions, § 153.027 Common Review Procedures and Requirements, § 153.028 Specific Review Procedures and Requirements, § 153.040 General Provisions, § 153.042 Common District Requirements, § 153.067 Off-Street Parking, § 153.070 Building Materials, § 153.060 Landscaping and Screening, § 153.064 Signs, and § 153.092 Accessory Use Standards Applicant: City of Monticello PLANNING COMMISSION WORKSHOP MEETING (Academy Room) 5:00 p.m. Discussion on Amendments to 2040 Vision + Plan and Zoning Ordinance for single-family housing goals DR A F T C. Consideration for Variance to Setback for free-standing sign for a Place of Public Assembly use in an R-1 (Single Family) Residential District Applicant: RHL, Inc This applicant has requested that this item be tabled to the September regular meeting pending action on Item 2B of this agenda. The public hearing notice for this item was mailed to property owners, but was not published. A cancelation notice for the hearing was sent to property owners. No public hearing or action is required on this item. 3. Regular Agenda A. Consideration to Adopt a Resolution Finding the Proposed Sale of Certain Land by The City of Monticello for Commercial Purposes is consistent with The City of Monticello Comprehensive Plan 4. Other Business A. Community Development Director’s Report 5. Adjournment DR A F T AGENDA WORKSHOP MEETING - PLANNING COMMISSION August 5, 2025 – 5:00 p.m. Mississippi Room, Monticello Community Center Commissioners: Chair Andrew Tapper, Vice-Chair Melissa Robeck, Rick Kothenbeutel, Teri Lehner, Rob Stark Council Liaison: Councilmember Kip Christianson Staff: Angela Schumann, Steve Grittman, Bob Ferguson, Tyler Bevier, Anne Mueller 1.Call to Order 2.Discussion on Amendments to 2040 Vision + Plan and Zoning Ordinance for single-family housing goals 3.Adjournment DR A F T August IEDC Update • Karlsburger expansion: o Endorsed of Karlsburger’s grant application to MnDEED. The City is not party to the grant, but the state requires the City to endorse the application/project. o Approved Conditional Use Permit for the first phase of expansion. It will make changes to their parking lot and accommodate a 2,000-sf addition to the front of the building. • Approved parking ordinance amendments to better accommodate changing conditions, particularly the “park once” effort for downtown. The amendments focused on parking generally as well as parking for restaurants. • Authorized creation of plans and specs for expanding downtown parking lot behind Drawers of Davlee. City’s goal has been to think about parking strategically to accommodate changes in downtown activity, allowing existing parking to be fully utilized and then adding in areas that will help without reducing areas for retail, residential, or recreation activities. • Held a Special Meeting with Planning Commission to continue development of an ordinance to regulate data centers in Monticello. The draft ordinance will be discussed at Planning Commission in August with a recommendation to Council in September. • Started workshops to create the 2026 preliminary budget and levy. Not a lot to report yet because we are waiting for the final valuation of the nuclear plant as well as the results of a compensation study.